Asset Super’s long-term custody arrangement with NAB Asset Servicing is currently up for tender.
This is the first time the fund has put its custodial services contract up for review. The current arrangement has been in place since around 2004, according to fund chief executive John Paul.
Custody services for the fund were previously provided by Westpac’s custody business, then taken over by State Street, then Commonwealth Custodian Services, and finally National Asset Servicing once Commonwealth departed from the custody market, Paul said.
Drew Vaughan from Dymond, Foulds and Vaughan will be assisting Asset with the custodian review, the fund stated.
Custody is the only outsourced contract the fund hasn’t gone to tender on, so it’s not that Asset is unhappy with NAS — which is one of four providers currently involved in the tender process — but rather the fund couldn’t delay a review any longer.
While fees are always a factor, one of the main things the fund will be looking at in its new provider will be an ability to help the fund move to daily unit pricing, Paul said.
“Under the fund’s outsourcing policy there is a requirement for Trustees to review service providers at appropriate intervals to ensure that fund members are receiving both high levels of service and competitive pricing,” Paul said.
