London’s local pension funds body seeks global custodian

The London CIV is looking for a global custodian and depositary that can assist them investing in alternatives.

By Joe Parsons

The London CIV, the pool of London’s 32 borough local authority pension schemes, is on the hunt for a global custodian and administrator for its £6.5 billion of assets.

According to a notice on the European procurement website Tenders Electronic Daily, the London CIV will also hope to appoint a new depositary “to support further investments in alternative assets.”

Pension funds have stepped up their involvement in illiquid assets such as private equity, real estate and ESG funds.

The notice explains the administrator should provide transfer agency, investor reporting and accounting services, while the global custodian should provide safekeeping, asset administration and cash management.

Proposals from global custodians are due 6 April, and the London CIV will make its selections by 12 April.

One global custodian in prime contention for the mandate is Northern Trust, which already serves as the asset servicer and depositary for London CIV.

Northern Trust has been selected as the administrator for 13 Local Government Pension Schemes (LGPS). Last year it was chosen by the Northern Ireland Local Government Officers’ Superannuation Committee (NILGOSC) to provide global custody, accounting, securities lending, performance measurement and foreign exchange services for its £6.7 billion assets.

“We understand that the pensions landscape is continually evolving and are committed to creating tailored solutions for our clients to meet their changing needs,” said James Wright, head of the Institutional Group UK and Ireland, Northern Trust at the time

“We are a focused and trusted provider to pension funds and through our experience and expertise are well placed to help them meet their demands for regulatory compliance, governance and transparency.”