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HSBC wins custody, securities lending mandate
19 May 2014
First mandate awarded under new LGPS custody framework
HSBC Securities Services has won a global custody mandate
from the local government pension scheme (LGPS) funds for
Norfolk, Suffolk and the London Borough of Hackney.
The custodian will also provide securities lending and
investment accounting for the funds’ collective
£6.5bn ($10.9bn) assets under management.
The mandate is the first to be awarded under the National LGPS
Framework for Global Custody Services, which was introduced in
November 2013. It is designed to help funds choose a global
custody provider more efficiently.
"HSBC Securities Services offers us competitive and
transparent pricing together with a comprehensive custody and
reporting solution and strong relationship support which will
help each of us move forward in terms of efficiency and
performance", said Glenn Cossey, chief investment officer,
Norfolk Pension Fund.
Arjun Bambawale, head of HSBC Securities Services Europe,
said: "This win emphasises HSBC's understanding of the LGPS
requirements and our ongoing commitment to providing the
highest quality service"
The mandate will run for five years.
The Norfolk Pension Fund currently uses Northern Trust as its
custody provider and will transition to HSBC later this summer.
State Street has acted as custodian for the pension funds of
Suffolk and London Borough of Hackney.
Both the Norfolk and Suffolk pension funds currently engage in
HSBC already provides fund services to a number of local
government authorities including the pension funds of the West
Midlands, West Yorkshire, South Yorkshire and Swansea, Dorset
County Council and the Northern Ireland Local Government
Officers Superannuation Scheme.