DENMARK - Lønmodtagernes Dyrtidsfond
(LD) Pension is seeking a custodian-and-fund administrator combination for the €6bn closed Danish supplementary scheme.

The contract tender, issued on behalf of the LD Professional Association, a subsidiary that manages the scheme's portfolio, said the scheme would accept bids from global custodians and managers only - that is, fund administrators - "with joint experience" for the mandate.

The tender document said: "It is of utmost importance that the global custodian and the fund manager be able to work together and cooperate in an efficient manner, and to provide joint services."

It said global custodians were free to pair up with any number of managers - and vice versa - to submit multiple applications.

However, the scheme reserved the right to reduce the number of applications from any one custodian or fund manager to three in the interests of competition.

Details of the contract will be available only to prequalified applicants. The document referred only to "all regulatory services and furthermore some additional services".

LD Pension managed the scheme until last year, when most of the fund's assets, worth €5.7bn, were outsourced to external managers.

The scheme, which is structured to allow members to choose from 10 different pools or a default, acknowledges that its assets will decline by around 25% over the next five years and by 50% over the next decade.

It is expected to close shortly after that.