JP Morgan re-appointed global custodian for $46 billion Aussie super fund

JP Morgan was the largest custodian in Australia with $778 billion in assets under custody at the end of 2017.

By Joe Parsons

JP Morgan has been re-appointed custodian and fund services provider for HESTA, a $46 billion Australian superannuation fund, for the next three years.

The fund, which is dedicated to workers in the health and community services sector, re-appointed JP Morgan after a review which focused on achieving industry-leading investment execution and ongoing value for its members.

“We have an ambitious five-year investment strategy and we also looked closely at how our custodian can support us to continue to deliver outstanding investment implementation and performance for members,” said Debby Blake, CEO, HESTA.

“We’re focused on building our internal investment capability and capacity. Accessing leading global investment thinking and leveraging new collaborative opportunities with existing partners, like JP Morgan, underpins this strategy.”

The re-appointment extends the 20-year partnership HESTA has established with the US bank.

At the end of last year, JP Morgan was the largest custodian in Australia with $778 billion in assets under custody, according to figures by the Australian Custodian Services Association (ACSA).

“Our extensive market experience and proven track record ensures we are best-placed to partner with HESTA as it continues to build on its internal investment capacity and further develop its data strategy and investment analytics,” added Nadia Schiavon, head of custody and fund services, JP Morgan Australia and New Zealand.

“In addition to our custodial services, through the capabilities of our broader bank, we can provide HESTA with access to market-leading research, global investment opportunities, significant technology investments, and thought leadership,”

According to recent figures by the ACSA, total assets under custody for Australian investors grew by 4% in the first half of 2018 to $3.62 trillion. It also showed total assets under custody for overseas investors in Australia also grew 4.4% to $1.54 trillion.