Northern Trust has won out in the rationalisation by QIC of its asset servicing providers, replacing NAB Asset Servicing for the main back-office functions of the increasingly global manager.
As reported last week, QIC had reviewed the use of both Northern Trust, which has provided mainly middle-office functions at QIC for the past few years, and NAB as its backoffice provider for many years.
NAB’s involvement with QIC goes back to the 1990s, pre-dating the split from QIC by the-now $50 billion QSuper in 2008 to establish its own investments operation. QSuper switched to State Street for asset servicing after establishing its own investments team.
QIC wrote to clients last week advising them of the move, saying that the consolidation of both custodian and administrator at the same provider would further streamline operational processes.
“As QIC continues to grow and diversify globally, transferring custody to NT, as one of the world’s largest global custodians, will assist in the provision of consistent and high-quality outcomes delivered to our clients worldwide,” the QIC client note said.
QIC had more than A$70 billion under management as at June 30 last year, at least a quarter of it invested offshore, which will also impact NAB’s global partner, Bank of New York Mellon.
Northern Trust is also in the frame to take out the single custodian gig at the $33 billion Accident Compensation Commission (ACC) fund. Currently, Northern Trust shares the custody role with JP Morgan. A decision is expected by the end of July.
* Greg Bright is publisher of Investor Strategy News (Australia)