UK - Camden County Council is seeking a global custodian for its £730m (€927m) local authority pension fund as part of its restructuring process.

The London Borough of Camden pension fund currently has two custodians - JP Morgan and Bank of New York - as JP Morgan was appointed to look after assets managed by UBS and Schroders, when they stopped in-house custodial services, alongside Bank of New York who had already been appointed for the funds managed by Bailie Gifford.

However as the pension fund's investment committee is undertaking a restructuring of investment portfolio, Ken Bumpus, pensions officer at Camden council, said it had made the decision to "consolidate the custody services at the same time".

Under the terms of the contract, the successful applicant would be required to provide "safekeeping and other services relating to the assets" of the pension fund that were estimated at £766m at the end of June, although Bumpus suggested the recent stock market falls could have reduced the fund to around £730m.

The contract is for an initial period of five years, and it follows recent tenders by the pension fund for managers of passively-managed securities, fixed income and active global equities, as the fund has employed its three existing managers - UBS, Schroders and Baillie Gifford - since 1992. (See earlier IPE article: Camden starts first phase of portfolio restructure)

Shortlisted fund managers will be interviewed by the investment committee in October and November, although Camden pointed out the "total package" of restructuring measures would not be completed until 2009 as it also intends to look at the potential for investment in property and alternatives.

The deadline for applications for the global custodian position is 12 December 2008.

If you have any comments you would like to add to this or any other story, contact Nyree Stewart on + 44 (0)20 7261 4618 or email nyree.stewart@ipe.com

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