JP Morgan will provide custodial services for the investment assets of three New South Wales state government agencies.
The assets of the NSW Treasury Corporation (TCorp), SAS Trustee Corporation (State Super) and Insurance and Care NSW (icare) will now be managed by JP Morgan.
Previously, BNP Paribas was the custodian for TCorp; JP Morgan was the custodian for State Super; and State Street was the custodian for icare.
“The NSW government is committed to eliminating unnecessary spending and shrinking costs within government where possible,” said NSW Treasurer Gladys Berejiklian.
In addition to lowering the cost to the taxpayer, the appointment of a single custodial services provider is expected to provide “a more unified picture of the state’s investment position”, the government said.
“This selection delivers on our ongoing commitment to deliver better value to the people of NSW by eliminating unnecessary duplication,” Ms Berejiklian said.
The selection is still subject to “final contract negotiations”, the government said.
Law firm Allen & Overy, which managed the request for proposal, said the contractual arrangements were designed to be future-proof and set a high bar for JP Morgan’s performance.
“As well as delivering the state government significant savings, the agreement holds the common custodian to all the highest performance standards that would apply in a private sector environment, but also the robust governance and reporting requirements expected by sovereign funds,” said Allen & Overy Sydney managing partner Jason Denisenko.
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