Northern Trust Continues U.K. Pension Push with New £20 Billion Mandate

Northern Trust has been selected as the global custodian by The Pension Protection Fund (PPF), the U.K.’s pension lifeboat fund, as it continues to bring Britain’s pension funds under one custody roof.
By Joe Parsons(2147488729)
Northern Trust has been selected as the global custodian by The Pension Protection Fund (PPF), the U.K.’s pension lifeboat fund, as it continues to bring Britain’s pension funds under one custody roof.

The bank will also provide securities lending, collateral management and performance measurement services for its £20 billion in pension assets.

The mandate comes over a month after it announced it will set up a collective investment vehicle for London’s local authorities’ pension funds, pooling their funds under one roof.

The PPF has over 200,000 members, servicing to around 11 million people in the U.K. who belong to over 6,000 defined benefit schemes.

“As our assets continue to grow we look forward to working with Northern Trust as they deliver innovative solutions to support our evolving requirements,” says Andy McKinnon, chief financial officer, PPF.

Following this mandate, Northern Trust now services five of the top 10 pension funds in the U.K., representing more than £240 billion in assets, and one fifth of the U.K. pension market.

“The retirement market in the UK faces dramatic change, particularly around defined benefit schemes, and our expertise and proven track record positions us to support the PPF with flexible and creative solutions tailored to their specific needs,” says Penelope Biggs, head of the institutional investor group for Europe, Middle East and Africa at Northern Trust.

«