Copying and distributing are prohibited without permission of the publisher
Citi wins $850bn Norway SWF mandate
06 May 2014
Takes over $850bn custody and securities lending contract from JPMorgan
Citi has taken over a mandate from JPMorgan to provide
global custody and securities lending to Norges Bank Investment
Management (NBIM), which manages Norway's $850bn sovereign
The NBIM mandate is believed to be the biggest of its kind in
the industry, Citi said in a statement.
"We have carried out a detailed evaluation. Citi has
demonstrated a commitment to the custody business through their
proprietary sub custodian network and investment in technology,
enabling them to deliver custody services in an integrated,
efficient and transparent manner," said Age Bakker, chief
operating officer, NBIM.
It is understood that JPMorgan had held the contract since
the start of 2012 after previously sharing the mandate with
Citi. A source told Global Investor/ISF that JPMorgan
would likely become the investment manager's back-up custodian,
a position that was previously held by Citi.
"It's a great privilege to have been selected by Norges Bank
Investment Management to provide these services," said Okan
Pekin, global head of Investor Services, Citi.
''By having a global presence combined with in-depth, local
expertise, our offering is well positioned to support Norges
Bank Investment Management's mission and growth objectives.
This appointment highlights our ability to serve the needs of a
leading investment manager on a multi-jurisdictional basis and
I would like to thank all of the Citi team members who worked
diligently to bring this relationship to fruition."
JPMorgan continues to service Norges Bank as a client in other
business areas, including investment banking and markets
The announcement follows
major reorganisation within Citi to create a new Investor
Services division, combining prime finance, futures and OTC
clearing, global custody, global fund services and agency