Pension Protection Fund, London, expects to launch a search for a custodian in the next few months, a spokesman said.
The procurement process could start as early as the end of August. The PPF expects to make a decision by the end of the year.
The £15.6 billion ($26.7 billion) fund's current custodian is State Street. The spokesman said the current contract expires Dec. 31, 2015, and the PPF is starting the procurement process now to allow for sufficient time. State Street can rebid.
The PPF will look for custody and investment accounting services, including the administration of alternative investments, performance measurement, collateral management, passive currency overlay and derivative servicing. A prior information notice filed on European procurement website Tenders Electronic Daily said future requirements might be added to support asset growth, such as middle-office activities.
Further information about the search will be posted on the PPF's procurement website.