Australian pension manager First Sentier Investors has awarded a middle office outsourcing mandate to US custodian bank Northern Trust Corporation.
Northern Trust says it will help support strategic business objectives, investment capabilities and products across multiple global jurisdictions for the Sydney-based company, which had A$219 billion (US$170.82 billion) of total assets as of September 2020.
According to Angelo Calvitto, Northern Trust’s Australia executive, investment managers are increasingly turning to the bank for outsourced investment operation solutions.
“This allows them to focus on their core business of investment decision-making and asset allocation,” he says in a statement on January 6.
First Sentier Investors says Northern Trust was selected through a competitive tender process, and that the bank’s “ability to provide a single global middle service utilising a single scalable technology infrastructure were key factors in our decision”.
Northern Trust is the second largest custodian bank in Australia after JPMorgan Chase, with A$561.5 billion of assets under custody as of June 2020, according to figures from the Australian Custodial Services Association.
Globally, the company had $13.1 trillion of assets under custody or/and administration as of September 2020.
