South Yorkshire Pensions Authority appoints Northern Trust as custodian

South Yorkshire Pensions Authority (SYPA) has appointed Northern Trust as a new custodian for the South Yorkshire Pension Fund.

The appointment, according to the authority, marks a “significant step” in enhancing the security of the fund’s £11bn investment assets, while improving the efficiency and effectiveness of the way the authority manages assets.

The authority said the key factor in this decision was Northern Trust’s existing relationship with the Border to Coast Pensions Partnership. This connection, it said, will enable closer collaboration between SYPA and the pool, strengthening an already “productive partnership”.

SYPA expects the collaboration between the authority, Northern Trust, and Border to Coast to foster greater operational efficiencies and deliver enhanced outcomes for members of the South Yorkshire local government pension scheme (LGPS).

It added that the partnership reflects SYPA’s commitment to innovation and excellence in managing pension assets to “meet the needs of its members, now and in the future”.

Will Goddard, head of finance and performance at SYPA, branded the appointment a “great opportunity” for the fund to benefit from Northern Trust’s extensive experience within the LGPS and innovative approach to custodial services.

“We’re looking forward to building a strong and productive relationship that supports our long-term objectives for the benefit of the South Yorkshire LGPS scheme members,” he added.

Ian Hamilton, head of asset owners Europe at Northern Trust, noted that the appointment continues Northern Trust’s long-standing commitment to the LGPS sector.

He said: “Northern Trust understands the changes and challenges that the sector will navigate over the next 18 months as pools and schemes adapt and collaborate to meet the government’s timeline.”

“With our experience and technology platforms, we’re well positioned to support our LGPS clients and excited to be working with South Yorkshire Pensions Authority,” he added.

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