- published on 23/01/2015
UniSuper’s overweight position on Australian equity income stocks has helped its balanced fund to become the highest performing in 2014, it achieved 10 ... [more]
In 2009 Ian Martin was put in charge of State Street custody business. The Boston-based firm wasn’t happy with the way that business was performing in Australia.
Three years later in the “Balmoral” conference room at State Street’s Sydney offices on George Street, Martin and his head of sales Greg O’Sullivan can barely contain their satisfaction with the state of State Street’s Australian custody business.
The company has won three out of the four most prominent custody contracts on offer in Australia in the last 18 months.
It brushed aside National Australia Bank Ltd. twice in competitive tenders. State Street now manages the custody business of $19 billion fund Sunsuper and the $32 billion fund QSuper.
“State Street stood out,” says Michael Cottier, QSuper’s chief financial officer. “There was no fundamental dissatisfaction with NAB. It was a competitive process that unlocked value for members.”
State Street convinced $20 billion fund REST Industry Super to ditch a 14-year relationship with JPMorgan.
“It’s disappointing to lose a client,” says Bryan Gray, a managing director in treasury and securities services at JPMorgan. “It reflects the increasingly competitive market place.”
State Street now has $230 billion in assets under custody, up 28 percent from the $180 billion it had last year.
“We’re well positioned with other opportunities,” says Martin, who is also head of State Street’s global markets business in Australia and New Zealand. “We’re not done yet. Other major funds can be expected to think about their arrangements.”
Still, State Street lost a $54 billion client when AXA in Australia merged with AMP and gave its custody mandate to BNP Paribas last year.
When Martin took over as head of global services in Australia and New Zealand for State Street he quickly appointed O’Sullivan, who was working in global markets, to head sales in global services.
“There was a lot of work revitalising our sales culture,” says Martin. “It’s about connecting to people, connection and trust between two organisations.”
O’Sullivan says after meeting with a fund his State Street colleagues strive to find the right personalities internally to manage a relationship with the fund. They want to trigger a fund to re-examine its custodial business and consider State Street as a potential custodian.
“We want to be a catalyst,” says O’Sullivan.
Martin says State Street’s ability to draw on international resources, its investment in technology – it spends as much as 25 percent of its operating expense budget on it – and its focus on large institutional investors have attracted Australian superannuation funds.
“We’re bringing all our resources and knowledge to understand who we’re selling to,” he says.
How institutional investors manage money
The work of investment committee chairs at superannuation funds
Selling investment strategies
Servicing institutional investor assets and customers
Public policy and superannuation
Institutional investment news
Sponsored articles focusing on institutional investment
QSuper has more than covered the cost of segregating $10 billion in pension fund assets by taking advantage of a share buy-back with ... [more]
AustralianSuper has made large savings on brokerage costs for futures contracts, in one of the latest ways its investment operations department is turning ... [more]
The Financial System Inquiry’s recommendation that APRA-regulated superannuation funds should have a majority of independent trustees has been branded “unenthusiastic” by Industry Super ... [more]
Super funds should be required to pre-select a single retirement income product for members, the Financial System Inquiry has recommended, while acknowledging at ... [more]
The creation of a global infrastructure hub in Sydney could go some way to filling the estimated $20 trillion infrastructure gap in leading ... [more]
Mercer is to launch a group self-annuitisation product into the Australian market next week. The full details have not yet been disclosed, but ... [more]
Conexus Financial, the publisher of Investment Magazine and Professional Planner will again recognise outstanding achievement in superannuation when it hosts the third Superannuation Fund ... [more]
Whitehelm Capital, formerly Access Capital Advisors, has reopened its advisory arm for targeted business after several years of being closed to new clients. ... [more]
The $31 billion QBE investment portfolio is to place $100m in social impact bonds in the belief that opportunities for such investments will ... [more]
The standard of governance among listed Australian companies leads the world, states the Australian Council of Superannuation Investors’ (ACSI), after it unveiled progress ... [more]
Sunsuper is to expand on its success in partnering with distressed debt and private equity managers by seeking partnerships with listed equity managers ... [more]
Many thought Alice Springs was an odd choice for last week’s AIST ASI conference. Perhaps the rationale was not explained well, but CEO ... [more]
An alternative set of proposals for reducing costs and boosting competition to those in the Grattan Institute Super Sting report, were presented by ... [more]
A combined $4 billion Tasplan and Quadrant Super is to reassess all global equity managers on their willingness to screen out tobacco stocks. ... [more]
“It is clear…. that the banking system is considerably less competitive than the superannuation system, is systemically more risky and extracts a greater ... [more]
There is a global pension underfunding crisis and yet Australians are set to lose $128 billion in savings because the Federal Government has ... [more]
Superannuation funds can offer retirement accounts that easily exceed the income from annuities, believes Rice Warner. Michael Rice, chief executive of the actuarial ... [more]
Superannuation funds are winning their efforts to make Australian companies adopt long term thinking, according to Andrew Gray, investment manager, governance at AustralianSuper. ... [more]
REST Super scooped Super Fund of the Year, in large part due to pioneering a new insurance offering for members said Damian Hill. ... [more]
A greater focus on strategy and asset allocation rather than smaller matters is a simple step for boards and investment committees to improve ... [more]
Funds that don’t look beyond the Financial System Inquiry (FSI) will fail to create successful post-retirement products believes FSI committee member Professor Kevin ... [more]
IFM Investors is making its first investment in Mexico through a 24.99 per cent stake in a toll road on the outskirts of ... [more]