Northern Trust has emerged as the frontrunner to win the coveted custody contract for the Future Fund.

The rumour that Northern Trust was about to be signed circulated throughout the industry yesterday. However, a Future Fund spokesperson said that no decision had been made. It has been thought for several days that the short-list of contenders for the custody contract had been whittled down to two: Northern Trust and State Street. The latest rumour suggested State Street executives were given the bad news late last week. A State Street spokesperson declined to comment. State Street was also thought to be on a short short-list for last year’s custody contract for New Zealand Superannuation Fund, which was awarded to Northern Trust. As reported last week, NAB Custodian Services has already been told that it is no longer in contention for the Future Fund. Both the Future Fund and NZ Super have shared the same custody consultant, Thomas Murray.