Northern Trust Named Global Custodian for Sweden’s AP2

Northern Trust has won its second consecutive global custody mandate for Sweden’s Second National Pension Fund (AP2), replacing State Street.

The appointment follows a review of service providers, alongside the Third National Pension Fund (AP3), which also reappointed Northern Trust as its global custodian earlier this month.

“AP2 and AP3 have had a very good cooperation and we are delighted that our vision with the cooperation was fulfilled throughout the process. Cost-effectiveness and price pressure were the two main factors, but the exchange of knowledge was also very positive,” says Ola Eriksson, head of Business Support, AP2.

Following the mandates with AP2 and AP3, Northern Trust will administer more than $68 billion of pension fund assets, representing just over a quarter of Sweden’s income pension system assets.

“By combining our on the ground presence with our scale as a global custodian we are well positioned to support the needs of the AP funds and look forward to continuing to work with them,” adds Wilson Leech, head of Northern Trust in Europe, Middle East and Africa.