Northern Trust has been selected by Swedish insurance giant Folksam as sole global custodian for all of Folksam’s US$17 billion in insurance assets and mutual funds. In addition, Northern Trust will provide trustee services to Folksam via an agreement with Swedish trustee Svenska Handelsbanken. This is the first time a non-Swedish bank will be able to provide custody and related services to a Swedish mutual fund.
“Our review process was incredibly detailed and thorough,” says Cecilia Ardstrom, Chief Operating Officer at Folksam Asset Management. “One of our main drivers was a desire to enhance operational efficiency. As our analysis continued it became apparent that Northern Trust was the most suitably equipped provider to meet our specific requirements. With this decision we have a taken a major step forward in helping to achieve some of our long-term business objectives. We are absolutely delighted to have selected Northern Trust and look forward to a long and fulfilled working relationship.”
“Folksam is one of the most eminent and distinguished insurance companies in the Nordic region and we are absolutely delighted they have chosen Northern Trust as their sole custody provider. We have worked very closely over an extensive period fine-tuning a service offering which is cutting-edge and will meet all of Folksam’s needs. Through our relationship with Svenska Handelsbanken we have established robust trustee services enabling clients to consolidate their mutual funds and discretionary assets with a global custodian for the first time in Swedish history,” adds Anne-Lise Winge, Head of European Sales for Northern Trust’s Asset Servicing business.
Commenting on the background to this deal, Winge added, “Northern Trust and Svenska Handelsbanken have worked closely with the regulator, Finansinspektionen, in order to propose and obtain approval of a solution that allows Swedish mutual fund businesses to opt for a global custodian who can also offer trustee services through a local provider.”
Eva Tarnstrom, Head of Svenska Handelsbanken – Nordic Custody Services, says “it has been an interesting journey for us to create a model in co-operation with Northern Trust, which meets Folksam’s requirements. This new set-up opens up the market for more flexible solutions when providing services for the large client group which Folksam represents.”
Folksam is a mutual insurance company offering a wide range of insurance, savings and loan products to meet all needs. Folksam was founded in 1908 and has some 70 branch offices throughout Sweden. Folksam’s total invested capital of US$17 billion are invested in accordance with an ethical investment policy that follows UN and OECD guidelines on social responsibility, labour legislation and the environment.