AP2 and AP3 both hired Northern Trust as global custodian following a joint procurement process, said a statement from both pension funds.
AP2, Gothenburg, Sweden, has 293.9 billion Swedish kronor ($34.8 billion) in assets, and AP3, Stockholm, has 288.3 billion Swedish kronor.
The joint procurement streamlined the process for both pension funds and “created a good position for the funds in respect of negotiations with participants in the procurement,” said the statement.
The appointment is a rehire for AP3. AP2 previously used State Street as its custodian.
“It has been a valuable exchange of experiences and led to a cost-effective process,” said Mattias Bylund, chief risk officer at AP3, in the statement. “It has also showed that the funds already have a very good cooperation on key issues.”
“Cost-effectiveness and price pressure were the two main factors, but the exchange of knowledge was also very positive,” said Ola Eriksson, head of business support at AP2, in the statement.
Spokesmen for AP2 and AP3 were not available for further comment by press time.