Northern Trust secures major superannuation custody mandate

Superannuation fund owned by the Government of South Australia selects Northern Trust for custody mandate.

By Jonathan Watkins

The investment management corporation owned by the Government of South Australia has appointed Northern Trust for a $24 billion mandate to provide a master custody solution.

Under the agreement, Northern Trust will provide asset servicing, investment administration and investment data services.

The custodian said the win followed a competitive tender process.

Northern Trust has been expanding in Australia in recent years through a new Sydney office and appointments including Tania Tuxford and David McWilliams as business development managers in Sydney and Melbourne respectively. 

Subsequently, the bank won a $9.7 billion asset servicing mandate from Sydney-based investment manager, Maple-Brown Abbott, in May this year.

“We are delighted to be working with Funds SA to support their growing business and enable them to focus on their core investing activities,” said Angelo Calvitto, Northern Trust country executive, Australia.

“As institutional investors look to enhance their operating models to meet their investment needs, they require a global asset servicing partner with local insights and expertise.  They also want to work with an organisation that delivers a high-level of client service, supported by leading-edge technology.”

Funds SA invests over $24 billion on behalf of South Australia’s public sector pension and superannuation schemes and approved authorities. The superannuation fund also manages a number of external investment mandates across a range of asset classes and geographies.

The win boosts Northern Trust’s asset owner custody business, after it missed out on retaining Denmark’s Arbejdsmarkedets Tillægspension (ATP), one of Europe’s largest pension funds with over $100 billion of assets, to BNY Mellon. 

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