Denmark’s LD Pensions announced it has re-appointed Nykredit Portfolio Administration as its investment administration provider for the next few years, and awarded a new contract to its existing custodian and depository services provider JP Morgan following a tender process this summer.
The Frederiksberg-based pension fund manager said today that in addition to the quality of the services, in awarding the contract it had also put a very strong emphasis on price.
Charlotte Mark, deputy chief executive officer of the Frederiksberg-based pension fund manager, said: “The partnership of Nykredit Portfolio Administration and JP Morgan came up with the most economically advantageous offer, i.e. the best ratio between quality and price, which ultimately benefits our members.”
The tender was launched in May 2022, and was carried out as an open tender procedure, with no short-list stage.
The length of the new contracts is four years with three one-year extensions possible.
Mark said the tasks the firms were taking on were demanding, and LD Pensions said the two firms would be handling total investment assets of approximately DKK40bn (€5.4bn).
Erling Skorstad, CEO of Nykredit Portfolio Administration, said it was gratifying that LD Pensions saw his firm as its natural partner to shoulder the responsibility of a complex task.
LD Pensions, which runs the holiday allowances fund, Lønmodtagernes Feriemidler, and the non-contributory maturing pension fund, Lønmodtagernes Dyrtidsmidler, has the majority of investments in the two funds placed in subsidiary Kapitalforeningen LD.
The firm said this allowed it to outsource investment management tasks and ensure efficient and cost-conscious operation of technically and legally demanding functions with partners specialised in those areas.