ATP (Arbejdsmarkedets Tillaegspension), the largest pension in Denmark, has appointed Northern Trust to provide custody and related services for its approximately $106 billion in assets.
The fund's previous custodian was BNY Mellon, and Northern Trust won the mandate upon invitation to tender, according to a spokesperson for the pension.
Northern Trust will provide custody and collateral management services for the pension fund, known as the Danish Labour Market Supplementary Pension Scheme and its subsidiaries.
Henrik Gade Jepsen, CIO at ATP, says the fund appointed Northern Trust based on the custodian's ability to deliver a tailored custody and collateral management solution that would allow the find to achieve optimal operational efficiency.
"Their established presence and experience supporting pension funds, as well as their global servicing capabilities were key factors in their appointment," Jepsen says.
ATP administers a number of schemes with a mandate to pay a lifelong supplementary pension to workers in Denmark. It is funded by payments from wage earners and employers.
"ATP is one of the largest and most highly-regarded institutional investors in the world, and we are delighted to extend our custody and asset servicing solutions to this Danish fund," says Steven L. Fradkin, president of the Corporate and Institutional Services Group at Northern Trust. "By combining our expertise and on the ground presence with our scale as a global custodian and fund administrator, we believe we are well positioned to support the needs of sophisticated institutions such as ATP and look forward to working with them and other Danish clients in the future."
Northern Trust provides custody and related services to around 1,000 pension fund clients across the globe. The custodian says it has more than a 20% market share in the pension and insurance sector in the four Nordic markets.