Northern Trust heads global custody mandate wins

Annual survey of top 50 deals sees $412 billion awarded

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Custody Risk’s 12th top 50 global custody mandates review saw a total of $412 billion awarded, with Northern Trust topping the list with a $106 billion win for a tailored custody and collateral management solution from the largest pension plan in Denmark.

The deal powered Northern Trust to the head of the pack as it publicly disclosed $142 billion in mandate wins overall. The Chicago-headquartered custodian also achieved another mandate in the top 10 from Strathclyde Pension Fund to handle its global custody, securities lending, cash management and foreign exchange investments.

BNY Mellon picked up second place in this year’s annual tables, recording $65 billion, while BNP Paribas registered $54 billion.

Northern Trust’s behemoth win was from Arbejdsmarkedets Tillægspension (ATP), the Danish labour market supplementary pension scheme and its subsidiaries. Its purpose is to pay a lifelong supplementary pension to wage earners in Denmark on the basis of payments from workers and employers.

Steven Fradkin, president, corporate and institutional services group at Northern Trust, says: “By combining our expertise and on the ground presence with our scale as a global custodian and fund administrator, we believe we are well positioned to support the needs of sophisticated institutions such as ATP.”

Northern Trust’s institutional investor group provides custody and related services to around 1,000 pension fund clients across the globe, with a greater than 20% market share in the pension and insurance sector in each of Denmark, Finland, Norway and Sweden.

Across the top 50 mandates surveyed the biggest client segment in this year’s tables – at $246 billion – was the pension fund sector, followed by asset management at $93 billion. In terms of geographical distribution of mandates the UK and Australia were the leading markets in terms of business being won, both returning around $50 billion. France followed third with $35 billion. The largest mandate awarded in France was to Caceis by MACSF group, an insurer of health professionals, for a brief including data provision relative to financial reporting and enhanced regulatory reporting as required by the Solvency II directive.

To compile the information needed for the survey, Custody Risk approached major custodians to ask for data on their largest mandate awards. Some of this data has not previously been made publicly available. The mandates that appear in the tables are drawn from a variety of verifiable sources, including Custody Risk’s own detailed research of the market.

Click here to view the survey results

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