Following a successful joint project between NSW Treasury, NSW Treasury Corporation (TCorp), Insurance and Care NSW (icare) and SAS Trustee Corporation (State Super), JP Morgan has been selected as the preferred custodian of the combined investment funds of the three NSW Government agencies. JP Morgan was selected on the basis of compelling commercial, contractual and capability considerations.
Termed the Common Custodian Project, this is a continuation of the NSW Government sponsored Amalgamation of Funds Management Project which aimed to create efficiencies and reduce costs by bringing together the investment assets of NSW under one master investment manager (TCorp).
A key enabler of such benefits is the appointment of a common custodian for the three agencies.
Throughout 2016, executives and staff members from all three agencies along with NSW Treasury worked on the project. With expected cost savings of $80 million over 10 years across the three agencies, the results clearly speak to the success of the joint project. In addition to the cost efficiencies achieved, having a common custodian is expected to facilitate greater agility at TCorp and as a result allow them to take greater advantage of market opportunities.
JP Morgan is State Super’s current custodian. JP Morgan will also continue to provide State Super with custodial services related to member funded assets.
Further details are available in the media release issued by the NSW Government.