Northern Trust has been appointed global custodian to the New Zealand Debt Management Office.
The firm will be responsible for the provision of core custody and related services to NZDMO’s book of Fixed Income assets valued at around NZ$4.0 billion.
“NZDMO is a prestigious and significant client in New Zealand, and in the Asia Pacific region overall. A key aspect of Northern Trust’s successful tender was the service model and client focus we offer, as well as a commitment to develop and grow our business in the region with large, sophisticated investors,” says Jeremy Hester, Head of Business Development for Northern Trust in Australasia. “We are particularly delighted to have the opportunity to work with the NZDMO in building a relationship that delivers significant value to the client.”
The appointment follows a comprehensive tender exercise which was completed in July 2008. NZDMO, established in 1988, is part of the New Zealand Treasury and is responsible for the efficient management of the Crown’s debt and associated assets within an appropriate risk management framework. NZDMO’s strategic objective is to maximise the long-term economic return on the Crown’s financial assets and debt in the context of the Government’s fiscal strategy, particularly its aversion to risk.
NZDMO’s major responsibilities involve:
financing the Crown’s borrowing requirement and managing a portfolio of assets and liabilities disbursing cash to departments advancing funds to government entities in accordance with government policy providing capital markets services and derivative transactions for departments and Crown entities.
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