Northern Trust UK pension AUC flourishes
02 March 2020 London
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Northern Trust grew its assets under custody from UK pension fund clients by more than $72 billion in 2019.
Northern Trust’s institutional investor group provides services to more than 270 UK pension funds with collectively more than $851 billion in assets under custody.
According to the US bank, its growth last year was driven by new client wins and asset inflows across 20 marquee clients – including both corporate and local government defined benefit (DB) pension schemes and defined contribution (DC) master trusts.
Clients serviced include DC master trusts, DB corporate schemes and funds of the UK Local Government Pension Scheme, with assets varying in size from $20 million to $60 billion.
Northern Trust was unable to disclose details on how much of this figure included assets available to lend.
As of 31 December 2019, Northern Trust had assets under custody/administration of $12.1 trillion, and assets under management of $1.2 trillion.
“As today’s investment environment drives change and complexity, our solutions – from outsourced financial accounting and alternatives administration to middle-office services and outsourced trading – support UK pension teams with their day-to-day investment activities, governance and risk management obligations,” says Mark Austin, head of UK, institutional investor group at Northern Trust.
Along with new clients, Northern Trust also chalked up increased lending revenue for the final months of last year.
The bank saw a 4 percent increase in its global securities lending revenue in Q4 2019, compared to the same period in the year prior.
Fee revenue from the bank’s agency lending business, which comes under the umbrella of its corporate and institutional services trust (C&IS trust) arm, hit $22.6 million in the last quarter of 2019, up from $21.7 million in Q4 2018 and $20.1 million in Q3 2019.
In its quarterly report, the bank says the revenue increase primarily reflects higher spreads over the quarter.
Northern Trust’s institutional investor group provides services to more than 270 UK pension funds with collectively more than $851 billion in assets under custody.
According to the US bank, its growth last year was driven by new client wins and asset inflows across 20 marquee clients – including both corporate and local government defined benefit (DB) pension schemes and defined contribution (DC) master trusts.
Clients serviced include DC master trusts, DB corporate schemes and funds of the UK Local Government Pension Scheme, with assets varying in size from $20 million to $60 billion.
Northern Trust was unable to disclose details on how much of this figure included assets available to lend.
As of 31 December 2019, Northern Trust had assets under custody/administration of $12.1 trillion, and assets under management of $1.2 trillion.
“As today’s investment environment drives change and complexity, our solutions – from outsourced financial accounting and alternatives administration to middle-office services and outsourced trading – support UK pension teams with their day-to-day investment activities, governance and risk management obligations,” says Mark Austin, head of UK, institutional investor group at Northern Trust.
Along with new clients, Northern Trust also chalked up increased lending revenue for the final months of last year.
The bank saw a 4 percent increase in its global securities lending revenue in Q4 2019, compared to the same period in the year prior.
Fee revenue from the bank’s agency lending business, which comes under the umbrella of its corporate and institutional services trust (C&IS trust) arm, hit $22.6 million in the last quarter of 2019, up from $21.7 million in Q4 2018 and $20.1 million in Q3 2019.
In its quarterly report, the bank says the revenue increase primarily reflects higher spreads over the quarter.
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