Middlesbrough Council hired a new global custodian to provide global custody, monthly valuation and foreign exchange services to the Teesside pension fund.

Middlesbrough, as the administering authority responsible for Teesside, selected BNP Paribas Securities Services (BNP Paribas) for the task.  

The Teesside pension scheme has £2.5bn in assets including UK and global equities, bonds and direct property. The fund is managed in-house by Middlesbrough Council's portfolio investment team.

Following a competitive tender, the council selected BNP Paribas based on "its safety as a global custodian and its extensive range of services". The bank's mandate is to provide global custody but there is scope to expand the relationship into securities lending and advanced portfolio monitoring and reporting.

"Our most important considerations in appointing a new custodian were the safety of our assets, the strength of institution and their quality of service," said Paul Campbell, head of investments at the Teesside pension fund.

"We reviewed several custodians operating in the UK and found BNP Paribas to be the best fit based on our selection criteria. We were very impressed with their team, including their on-the-ground operations staff, and look forward to working with them."

BNP Paribas is a global custodian with almost USD 7tn in assets under custody, servicing more than 100 pension funds globally.

James McAleenan, head of BNP Paribas securities services UK said: "We're delighted to have won this mandate and see it as a strategic milestone for our UK franchise. This win is an excellent example of our commitment to servicing pension funds in this location."

First published 01.11.2012

azeevalkink@wilmington.co.uk 

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