UK – Industrial group Hanson has tapped J P Morgan Investor Services for custody services at its main UK pension scheme – resulting in a loss for incumbent State Street, which inherited the business with the GSS acquisition.
J P Morgan said in a statement that it had been awarded the custody mandate of the approximately 800 million-pound (1.16 billion-euro) Hanson Industrial Pension Scheme (HIPS).
“This follows on from the award of the custody mandate for Hanson's US pension scheme with assets of some 450 million pounds in November 2003,” it added.
Paul Tunnacliffe, chairman of the HIPS trustees and company secretary of aggregates and concrete products maker Hanson, said the review of custody arrangements was triggered by State Street’s 1.5 billion-dollar takeover of Deutsche’s Global Securities Services arm. He said the scheme was advised by Hewitt Bacon & Woodrow.
"JPMIS offered the best combination of products, service and price," Tunnacliffe was quoted as saying by JPMIS.
"Hanson already has a longstanding and successful relationship with J P Morgan and the trustees were pleased to be able to call on this internal reference as to both quality and delivery."
"We are delighted to be working for Hanson's pension schemes and adding them to our stable of some of the largest and most sophisticated pension funds," said Sue Curtis, UK client management executive for J P Morgan Investor Services in Europe.
"We are very pleased with this appointment and it is gratifying recognition of the importance we attach to working with pension schemes."
State Street spokeswoman Hannah Grove said the bank was “extremely pleased” with the GSS acquisition, pointing out that it expects to convert 88% of former GSS clients to State Street.