MNOPF axes JP Morgan from 4.7bn custody brief

IPE.com 22/May/06: UK - The Merchant Navy Officers Pension Fund has rejigged its custody arrangements - resulting in another major loss by JP Morgan to ABN Amro Mellon. "The £3.2bn (€4.7bn) Merchant Navy Officers Pension Fund today announced that it had moved its custody operations to ABN Amro Mellon Global Securities Services with effect from May 2," ABN Amro Mellon said in a release today.

It said it would provide global custody, investment accounting, securities lending and investment monitoring.

The decision follows JP Morgan's loss of a custody mandate at Railpen Investments that was announced earlier today - this also went to ABN Amro Mellon.

IPE reported in November that the MNOPF was reviewing JP Morgan.

A JP Morgan spokeswoman said the bank has won £30bn of UK pensions business in the last year - and that it has 43% of the top 100 pension funds. "There's been very strong growth in our franchise" she said.

MNOPF investment director Alick Stevenson was quoted as saying by ABN Amro Mellon: "The decision to move was taken after a long and very thorough review of MNOPF's custody needs, using an external tender process which had been managed by Thomas Murray, the leading custody specialist, bank rating and advisory company."

"We are delighted that MNOPF has chosen ABN Amro Mellon," added the joint venture chief executive Nadine Chakar.

Whilst reasonable care has been taken in the compilation of this information, neither Thomas Murray, its affiliates or information contributors shall have any liability for any errors, omissions, delays or inadequacies in the information or for any loss or damage however occasioned (whether arising directly or indirectly), to any person or company relying on this information, or any decision made, action or inaction taken by any party in reliance upon this information (except to the extent permitted by law).