ABN AMRO Mellon Global Securities Services has won the mandate from the UK Universities Superannuation Scheme Limited (USS) to provide global custody, cash management and securities lending services to the scheme’s externally managed assets, valued at 5 billion.
The corporate trustee of the principal pension scheme for employees of universities and other higher education and research institutions, USS is one of the largest private sector pension schemes in the UK, with over 390 participating institutions.
“In addition to its reputation within the UK pensions sector for client service, we were impressed with the Mellon technology platforms and particularly attracted to their securities lending capabilities,” says Colin Hunter, Chief Financial Officer at USS. “ABN AMRO Mellon’s capabilities in the specialised area of lending auctions were a key determining factor in their appointment. We were also happy with the assurances that were given to us regarding the impact of the Bank of New York-Mellon merger.”
USS originally initiated a review of all its custody arrangements in 2005. The project was subsequently placed on hold in early 2006 during a comprehensive re-evaluation of investment strategy. Following that review, the custody RFP process was resurrected, with Thomas Murray acting as consultants. The review process included a detailed due diligence session at Mellon Financial Centre by the USS team.
Nadine Chakar, CEO at ABN AMRO Mellon, says it is particularly gratifying that USS decided to stay with ABN Amro Mellon despite the recent decision of Mellon to merge with Bank of New York. “As we have said, it is ‘business as usual’ for the Mellon Group, and we look forward to providing USS with the high quality service and innovative products that all our clients have come to expect from us,” she says.