Norway’s sovereign wealth fund, one of the largest single investors in the world, has selected Citigroup to provide custodial and securities lending services for its $850 billion investment portfolio.
Norges Bank Investment Management, which manages the government fund, said in a statement on Monday that “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.â€
The mandate had been previously held by JPMorgan Chase.
The fund invests the government’s share of North Sea oil revenue with the intention of preserving and increasing the wealth for future generations in Norway. The fund, the Government Pension Fund Global, invests in 82 countries and in 44 currencies.
The Financial Times earlier reported that the contract with Citigroup is for seven years. The bank won the contract even though it had been sued in 2010 by Norway’s central bank, an overseer of the fund, over losses on Citigroup shares and bonds during the financial crisis. That suit was later dismissed.
