Northern Trust retains AUS $40 billion custody mandate

Northern Trust will continue to provide custody services for the AUS $40 billion Australian government employee and defence force pension fund.
By Paul Walsh

Northern Trust has retained the custody mandate for the AUS $40 billion Australian government employee and defence force pension fund, known as the Commonwealth Superannuation Corporation (CSC).

The endorsement comes five years after Northern Trust was initially appointed as the preferred custodian for the fund and will now continue to provide custody and investment administration services.

Upon its initial appointment, CSC was Northern Trust’s first full service custody and administration services client in the Australian superannuation industry.

“CSC regards its relationship with its custodian as a strategic business relationship and following a full market review, we are proud to continue our relationship with Northern Trust,” said Peter Carrigy-Ryan, CEO at CSC.  

“Over the past five years we have worked closely to ensure we collectively raise the bar for global best practice in investment operations. This endorsement supports CSC’s strategic investment operational goals of automation, efficiency, robustness and transparency.”

The move is the second pension fund mandate for NorthernTrust in succession following its appointment by the Scottish Borders Council earlier this month to provide globalcustody services for its £550 million pension fund assets.  

Northern Trust increased its existing presence in Australia in 2016 with the opening of a second office in Sydney following its acquisition of equity brokerage Aviate Global.

“Our global custody platform ensures our client’s assets are well protected and our superannuation fund clients are positioned to meet the changing political, economic and regulatory challenges,” said Madeleine Senior, managing director of Northern Trust for Australia and New Zealand.

“Equally, as our Australian superannuation fund clients grow their relationships with us we have expanded our capital markets service offering to include securities lending, foreign exchange capabilities and brokerage.” 

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