First State Super has appointed State Street as its new custodian, after using JP Morgan for the past 20 years.
First State Super has appointed State Street to provide master custody, investment administration and custody ancillary services and middle-office services for its $52 billion investment portfolio.
First State Super's chief executive, Michael Dwyer, said he is confident that the fund can achieve new efficiencies and greater value for members as a result of the new partnership.
"The decision to undertake a custody review was driven by the desire to ensure we are well placed to support the continued growth of our business and to have the best long-term partners in place to help us meet current needs and future business requirements," he said.
“It is important that we also exercise good governance by benchmarking the services available in the market to ensure we secure the best outcome for the benefit of our members.”
State Street's head of global services and global markets for Australia, Chris Taylor, said the fund has a “clear objective to be closer to markets” and have “greater control over investment decisions”.
“To achieve this they continue to evolve their business model, internalising more of the investment management function,” Mr Taylor said.
Commenting on the transition, Mr Dwyer said JP Morgan has been a “valued business partner for many years”.
The transition is expected to be completed before the end of the year.