Finnish State Pension Fund Appoints Danske Bank

Fund awards global custody mandate to Danish bank after failing to reach agreement with BNY Mellon on certain legal points.
By Janet Du Chenne(59204)
The State Pension Fund of Finland, Valtion Eläkerahasto, has appointed Danske Bank of Denmark to provide global custody for its direct equity, exchange traded fund and fixed income instruments.

“In 2014 we initiated a transparent, EU-wide review of global custody service providers, which ranked candidates on a weighted basis across a range of key criteria”, says Tiina Tarma, general counsel at the State Pension Fund.

Following the procurement process, the fund had initially appointed BNY Mellon, but the parties could not reach agreement on certain legal points required for the contract, Global Custodian understands. As second choice in the tender process, Danske Bank was awarded the mandate.

“We are delighted for the opportunity to offer our custody services to a customer as versatile and large as the State Pension Fund. They are one of the most significant investors in Finland and the magnitude of their business will help us to further develop our services”, states Minna Saonegin, head of Global Custody Finland, Danske Bank.

The transition date for the State Pension Fund instruments, which are currently with J.P. Morgan, is scheduled for the May 31, 2015.

The market value of VER’s investment portfolio was €17.6 billion at the end of 2014.