Citi wins $850bn Norway SWF mandate

Citi wins $850bn Norway SWF mandate

Citi has taken over a mandate from JPMorgan to provide global custody and securities lending to Norges Bank Investment Management (NBIM), which manages Norway’s $850bn sovereign wealth fund.

The NBIM mandate is believed to be the biggest of its kind in the industry, Citi said in a statement.

”We have carried out a detailed evaluation. Citi has demonstrated a commitment to the custody business through their proprietary sub custodian network and investment in technology, enabling them to deliver custody services in an integrated, efficient and transparent manner,” said Age Bakker, chief operating officer, NBIM.

It is understood that JPMorgan had held the contract since the start of 2012 after previously sharing the mandate with Citi. A source told Global Investor/ISF that JPMorgan would likely become the investment manager’s back-up custodian, a position that was previously held by Citi. 

“It’s a great privilege to have been selected by Norges Bank Investment Management to provide these services,” said Okan Pekin, global head of Investor Services, Citi.

‘’By having a global presence combined with in-depth, local expertise, our offering is well positioned to support Norges Bank Investment Management’s mission and growth objectives. This appointment highlights our ability to serve the needs of a leading investment manager on a multi-jurisdictional basis and I would like to thank all of the Citi team members who worked diligently to bring this relationship to fruition.”

JPMorgan continues to service Norges Bank as a client in other business areas, including investment banking and markets business.

The announcement follows major reorganisation within Citi to create a new Investor Services division, combining prime finance, futures and OTC clearing, global custody, global fund services and agency securities lending.