HSBC Global Investor Services (GIS) has been re-appointed as custodian by two pension fund clients: the Royal Borough of Kensington & Chelsea and the West Yorkshire Pension Fund. This secures for GIS custody of assets worth 205 million and 1.3 billion respectively.
The re-appointments will be a relief to the new leadership at GIS, which has suffered a number of client defections as the business grappled with internal processing and systems issues, especially since both followed in-depth evaluation processes by the clients following the expiry of their respective fixed term contracts.
“We conducted a comprehensive review and testing of the market for global custody services for our pension fund,” says Paul Kidd, head of financial services at Royal Borough of Kensington & Chelsea. “Overall, the proposal from HSBC offered the Council the best value for money at the present time and reassures continuity in the standard of service provided.”
Stuart Imeson, head of pensions and investments at City of Bradford Metropolitan District Council (the administering authority for West Yorkshire Pension Fund), added: “HSBC submitted a very competitive tender by comparison to all other tenders received. We enjoyed a good working relationship with HSBC under the existing contract and I am confident that this will continue.”
Dave Green, industry head, pensions at GIS, said: “Our re-appointment by these major clients demonstrates both HSBC’s ability to build and develop long term relationships with clients and the value they place on quality service. We are particularly delighted that both appointments are for a five year period with an option to extend for a further two years.”