Northern Trust takes flight with $54bn Boeing pension mandate

As one of the largest pension plans in the US, Boeing will use Northern Trust for custody, valuation, derivatives processing and unitisation services.
By Joe Parsons

Northern Trust has been selected as the global custodian for the retirement plan of The Boeing Company, securing its biggest mandate win of the year to-date.

Boeing has one of the largest retirement plans in the US with approximately $54 billion in assets.

As well as providing global custody, valuation and unitisation services, the pension plan will also use Northern Trust’s regulatory and performance solutions, compliance monitoring, derivatives processing and third-party custom cash fund servicing.

“Large, sophisticated retirement plans continue to choose Northern Trust for our unique combination of global scale and highly flexible accounting and reporting solutions that can adapt quickly to changing plan needs,” said Frederick Waddell, CEO, Northern Trust.

It is the largest deal for the Chicago-based custodian this year, after it retained the AUD$40 billion (USD$31 billion) Australian government employee and defence force pension fund mandate in March.

It is the third largest custody mandate this year, behind JP Morgan’s $1 trillion deal with BlackRock and State Streets €450 billion mandate with Allianz Global Investors.

Northern Trust has also been selected as the global custodian and fund administrator for JCP Investment Partners, a Melbourne-based equities fund manager with over $10 billion in assets under management.

“Our growing fund manager client base in Australia requires a high level of client service and an efficient operating platform to enable managers to focus on their core investing activities and business development,” said Peter Jordan, head of global fund services for Asia-Pacific at Northern Trust.

In the second quarter, Northern Trust reported a 15% increase in its custody business, taking its assets under custody/administration to $9.3 trillion.