Huge global custodian mandate up for grabs as ATP casts net
Denmark’s largest pension fund is searching for a global custodian for its DKK779bn (€104.3bn) asset portfolio.
ATP – one of the biggest pension investors in Europe – will appoint a custodian on a 4-6 year contract from October 2019, when the agreement with current custodian Northern Trust expires.
The statutory pension fund has put out a tender via Oslo-based Mercell Sourcing Services, which is handling the process.
ATP’s tender notice included a DKK1bn credit facility, which it says is contained as an option in the contract.
The contract is for four years, with renewal possible of up to two years.
“We expect the custodian bank to improve its services on an ongoing basis throughout the term of the agreement with ATP to match changes in market standards, products and best practices for the global custody and collateral management industry and we expect the global custodian to be willing to set new standards and support ATP’s goals,” the pension fund said.
ATP envisaged inviting six candidates to join its final shortlist.
The pension fund said the Danish version of the draft global custody agreement would be the legally binding version, and though the tender may be prepared in English, the agreement itself must be in Danish.
When it awarded the role to Northern Trust in April 2013, ATP cited as decisive the bank’s ability to deliver a tailored custody and collateral management solution which backed the pension fund’s aim of achieving maximum operational efficiency consistently.
The deadline for receipt of tenders or requests to participate is 15 January 2019, at 1pm local time.