Dundee city council’s £930m (e1.5bn) Tayside Superannuation Fund has selected Northern Trust from a shortlist of three candidates to provide custody and other securities services including securities lending, cash management, web-based reporting and other related securities services.
Tayside is Northern Trust’s 20th local government fund in the UK, a statistic that head of UK business development Jeremy Hester says is evidence of their commitment to this sector of the UK pensions market. Hester says the appointment will bring greater administrative efficiency to the fund.
This is the first time Tayside has used a consultant, making the appointment with the help of Hymans Robertson. Like many local government funds it previously used its fund manager’s custodians.
“What we were looking at were savings and administration from our end. Previously we were bringing together information from three custodians and it’s much easier for if its all reconciled by one global custodian,” says Sandy Flight, principal treasury and investment officer at Tayside.
“We were impressed with what the industry has to offer generally but feel that Northern Trust has the ability to provide exactly what we want.”