Denmark’s Lønmodtagernes Dyrtidsfond (LD) has hired JP Morgan and Nykredit to provide investment administration services for the next few years for its fund subsidiary Kapitalforeningen LD (KLD).

Following a tender process launched last July, LD announced Nykredit Porteføljeadministration had been re-appointed for investment administration services to the subsidiary. KLD holds DKK40bn (€5.4bn) in its investment portfolio, or the bulk of LD’s DKK42bn of assets.

Meanwhile JP Morgan was appointed as the new depositary and global custodian, replacing Nykredit Bank and BNY Mellon, LD said.

It said it had made savings of up to around 30% with the new services compared to the current level of costs.

The pension fund described the bidding round that took place as “intense”, and said the quality of bids was very high, with offers including new services.

Bidders had changed both the price and the quality of their offerings in comparison with those seen in the previous tender in 2010, the fund said.

Charlotte Mark, LD’s finance director, said: “We have very high confidence in the cooperation partners we have chosen.”

“The parting from Nykredit as depositary and BNY Mellon as global custodian is a result of the intense competition and in no way an expression of dissatisfaction on our side,” she added.

LD is preparing to receive as much as DKK80bn of new assets as a result of amendments made to holiday entitlement rules in order to comply with EU law.

In November, a consortium of Danish pension funds bought a 10.9% stake in Nykredit.