UK – Defence group BAE Systems has appointed Northern Trust as global custodian for its pension funds.

Following a beauty parade, the Chicago-based bank was selected to provide the majority of the six billion pounds (8.6 billion euros) of BAE System’s pension funds with global custody services and securities lending services.

The global custody review process was coordinated by Mike Cattell, administration manager for BAE Systems Pension Funds Investment Management. "Working with our consultants Thomas Murray, we reviewed our current and future requirements for core custody and additional services. We were seeking the highest level of protection for our assets, the most relevant and competitive services, and the most efficient, robust and flexible systems," said Cattell.

"It was a close decision but Northern Trust, stood out among the competition in all critical areas," added David Brief, chief investment officer of BAE Systems Pension Funds Investment Management. "We believe they will meet our needs both now and in the future.”

Earlier this week Northern Trust was also appointed by the 22.9 billion-euro AMF Pension in Sweden as custodian for its international portfolio.

As of March 31 2003, Northern Trust had 1.6 trillion dollars (1.4 trillion euros) in assets under custody.