JP Morgan Treasury & Securities Services has secured a $1.5 billion mandate to act as custodian and administration provider for merged superannuation funds Local Government Super (LG Super) and City Super.
The two superannuation entities said following their amalgamation on 30 June this year they required an investment administration provider with a strong transition management offering.
JP Morgan’s previous experience with fund mergers and executing large-scale transition management projects worked in its favour to secure the $1.5 billion mandate, according to JP Morgan head of treasury and securities services sales and client management Bryan Gray.
“We could show real world examples of our discipline in this area. With industry consolidation expected to continue, JP Morgan’s fund merger experience will continue to position us as a leading service provider,” Gray said.
“Although custody and administration is increasingly becoming a scale-driven business, clients are continually seeking tailored solutions. As a provider, we are constantly looking for ways to meet these needs and believe this was a determining factor in winning the mandate.”
Once the two funds were merged, JP Morgan would also look at ways of optimising the custody and administration process, he said.
“We are currently in discussions with LG Super and City Super to find ways to optimise the custody and administration offering,” he said.
“We are committed to ensuring our services are the best possible fit for the new fund, including providing tax propagation, currency overlay and securities lending services.”
