Swedens AP4 has retained Northern Trust as its global custodian. AP4 is the fourth of the funds created to act as buffers should the state need to top up pension provision for the domestic population.
The mandate is an extension of an agreement that the fund, which has capital of SEK 210 billion ($30.8 billion) at year-end 2011, and the custodian first entered into in September 2005. AP4 retendered the mandate in December 2010.
Thomas Murray conducted a competitive procurement process on the funds behalf. Responding to the pre-qualification questionnaire (PQQ), eight custodian banks submitted proposals by the January 2011 deadline. All eight were invited to participate in the procurement, or Dialogue Phase I, and submitted RFPs. Four banks where invited to the second phase of dialogue. Two tenderers made it through to the final phase of dialogue.
Announcing the award of the tender, AP4s general counsel Ulrika Malmberg Livign and COO Agneta Wilhelmson Karemar said the most economically advantageous proposal judging from the evaluation criteria was the final proposal from Northern Trust.
(JDC)