Thomas Murray supported KLP - a major Norwegian pension fund - in selecting a Depositary and Global Custodian for its 55 funds.
In 2020, KLP engaged Thomas Murray to support its evaluation and appointment of a Depositary and Global Custodian for its mutual and alternative investment funds. Thomas Murray conducted a rigorous selection exercise involving an RFP, providing a thorough evaluation on operational capability, cost and risk to determine the most appropriate service provider for KLP. The Custodian relationship is typically amongst the most material of any client’s third-party relationships and many regulators therefore provide guidance on the robust monitoring, oversight and periodic review of these relationships. When it comes to the evaluation and selection of these relationships, it is important to follow a highly structured, thorough, and transparent process. Thomas Murray has provided such a service to its clients for the past 26 years.
KLP is a major provider of occupational pensions to municipalities, healthcare sector and public-sector businesses in Norway. KLP’s global custody evaluation comprises the full range of financial securities, including discretionary portfolios and the 55 KLP-Funds.
Steve Merry, Thomas Murray’s Head of Advisory Services, said:
We were delighted that KLP chose to use our services to help it evaluate such an important relationship. KLP is Norway’s largest pension company but its reputation and influence reaches far beyond Norway. We were delighted that KLP chose to use Thomas Murray’s services again to help them evaluate and select their future service provider. KLP utilised Thomas Murray’s services for its last Custodian review in 2009, but its operating model has evolved significantly since then. The service providers ability to demonstrate its ability to integrate with KLP’s highly automated operating model, based upon its advanced adoption of SimCorp, was critical.”
Harald Harlem, Head of Investment Management Services, KLP said:
Ensuring optimal levels of asset safety was crucial for KLP as part of this exercise. We chose Thomas Murray as our partner in the selection process because of the highly structured and detailed process which they follow. They have a market leading position globally when it comes to RFPs and their knowledge of the post-trade space is truly unique. We were highly impressed by the level of professionalism displayed by the team, in particular their ability to adapt the process successfully amidst the pandemic to ensure the move to a virtual environment did not hinder the process or outcome”.