GÖTEBORG, Sweden--(BUSINESS WIRE)--The Third (AP3) and Second Swedish National Pension Fund (AP2) has jointly performed a procurement of Global Custody Services during 2014 and 2015 and have now decided to award the contract as Global Custodian to Northern Trust for each of the funds.
By conducting a joint procurement AP3 and AP2 could streamline the process by, among other things, sharing experience on operational processes. Further the cooperation created a good position for the funds in respect of negotiations with participants in the procurement.
The procurement was started jointly with an option for the funds to select different global custodians, as various custodian banks can suit the respective Funds' investment processes better. After completion of the procurement the evaluation of candidates identified one candidate as the most suitable provider of global custodial services for both Funds and as such both Funds has appointed Northern Trust as custodian bank.
The decision means that AP3 will be re-appointing Northern Trust while AP2 will be replacing its current provider.
-We are very pleased with this joint procurement. It has been a valuable exchange of experiences and led to a cost-effective process. It has also showed that the funds already have a very good cooperation on key issues, says Mattias Bylund, CRO at AP3.
Ola Eriksson, Head of Business Support at AP2 agrees in this
- AP2 and AP3 has had a very good cooperation and we are delighted that our vision with the cooperation was fulfilled throughout the process. Cost-effectiveness and price pressure were the two main factors, but the exchange of knowledge was also very positive
- We are delighted to be appointed by Andra AP-fonden and extend our 15-year relationship with Tredje AP-fonden, said Wilson Leech, head of Northern Trust in Europe, Middle East and Africa. - By combining our on the ground presence with our scale as a global custodian we are well positioned to support the needs of the AP funds and look forward to continuing to work with them.
Third Swedish National Pension Fund
The Third Swedish National Pension Fund (AP3) is one of five buffer funds – known as AP funds – within the Swedish pension system. Together, the five funds hold around 13% of Sweden's income pension system assets. AP3's fund capital totaled SEK 288,332 million at 31 December 2014. The Fund paid SEK 5,120 to the Swedish Pensions Agency during the year to cover the deficit between pension contributions and liabilities. See www.ap3.se for further information.
Second Swedish National Pension Fund
The Second Swedish National Pension Fund (AP2) is one of five buffer funds – known as AP funds – within the Swedish pension system. Together, the five funds hold around 13% of Sweden's income pension system assets. AP2's fund capital totaled SEK 293,907 million at 31 December 2014. The Fund paid SEK 5,120 to the Swedish Pensions Agency during the year to cover the deficit between pension contributions and liabilities. See www.ap2.se for further information.
Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 20 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2015, Northern Trust had assets under custody of US$6.1 trillion, and assets under management of US$960.1 billion. For 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.
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