Northern Trust is the latest asset services provider to announce that RPMI Railpen, the asset manager of one of the largest UK pension funds, has awarded it with an investment operations mandate.
RPMI Railpen, the internal asset manager of the Railways Pension Scheme, has selected Northern Trust to provide a range of services spanning trade matching, derivatives processing, trade lifecycle management and collateral management.
RPMI Railpen also selected BNP Paribas Securities Services to provide dealing services, the French bank recently announced.
Nicola Dymond, chief operations officer, investments, at RPMI Railpen, says that the organisation has undertaken a strategically important investment transformation programme over the last 18 months, part of which required the development of in-house management as an implementation model.
“The in-house model allows us to reduce implementation costs and ultimately return value to the scheme and members,” she says.
Dymond adds that the outsourcing to Northern Trust gives access to operational scale and breadth of capability without the associated capital expenditure.
The win is highly significant to Northern Trust because it means the custody bank now provides back and middle office services to six of the top ten pension funds in the UK that collectively represent more than £240 billion (€329 billion) in assets under management and approximately one fifth of the UK pensions market.
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