J.P. Morgan Wins Custody Mandate for Australian Superannuation Fund

Cbus, an Australian superannuation fund for the construction, building and allied industries, has selected J.P. Morgan as its new custodian, replacing National Australia Bank (NAB) Asset Servicing.

J.P. Morgan will begin servicing the fund in 2014. Cbus had used NAB Asset Servicing as its custodian for over 20 years, but after a nine-month custodian tender process, the fund decided to make the switch.

“The relationship with NAB Asset Servicing has been strong and positive, with NAB Asset Servicing providing solid support for the Fund which has grown from $500m to nearly $25bn in funds under management over that period of time,” says Trish Donohue, Cbus executive manager, investment management.

“The decision to appoint J.P. Morgan was made after a thorough review of the custodian market and was based on a relative assessment of which custodian was best placed to meet the Fund’s increasing strategic needs,” Cbus said in a statement.

“J.P. Morgan brings a global strength to the relationship allowing Cbus to benefit from insights gained from international asset owners. This factor, along with its commitment to technology enhancements and its strong strategic focus were the main drivers of our decision,” Donohue explains. 

Cbus also said it is look to increase the depth of its investment options and wants to add complexity to its product offering.