ABN AMRO Mellon has been appointed global custodian of Derbyshire County Council’s GBP1.45bn pension fund. It consists of four separate portfolios, one of which ABN AMRO Mellon has serviced since 2001. To custody of Derbyshire County Council’s US portfolio it now adds European Equities, UK Equities and European Bonds. The last two are managed by the council itself.
“We have been working successfully with ABN AMRO Mellon’s team on our US portfolio since 2001,” says Councillor Geoff Carlile, Chairman of Derbyshire County Council’s Investment Committee. “We’re confident that our future work together will be equally successful and look forward to receiving the same quality of service on the rest of our portfolio.”
When UBS Asset Management, the manager and custodian of Derbyshire County Council’s European equity portfolio announced its withdrawal in September 2004 from the custody business, Derbyshire decided to consolidate all of its portfolios with a single global custodian. An open tender was issued, with the shortlist including two other global custodians.
In all four cases, the American-Dutch joint venture will provide custody and cash management services. ABN AMRO Mellon says the Derbyshire mandate is the thirteenth local government authority pension fund client it has secured in the last four years. Other clients include the Corporation of London, Oxfordshire and Aberdeen. The conversion date for the transfer of assets from other managers is 24 March.
Nadine Chakar, CEO of ABN AMRO Mellon, says she appreciates Derbyshire County Council’s “ongoing belief in and recognition in the quality of – ABN AMRO Mellon’s staff, capabilities and strengths as a provider of world-class performance in custodial services to local government authority pension schemes.”