Challenger has appointed Citi to provide custody and collateral management services for its $35 billion in assets under management.
The tender was managed internally by Challenger and included all major custodians including incumbent providers State Street and JP Morgan.
Challenger general manager of operations David Mackaway said the appointment would free the fund manager to focus on establishing a presence in new products and markets.
Access to Citi's OpenInvestor custody platform was a deciding factor in the decision, according to Mackaway.
"The requirements around receipt and provision of custody data are getting ever more stringent," he said.
"Citi's proprietary on-the-ground network allows for more efficient processing and offered the shortest
time-frames for these, as well as direct access to market experts worldwide."
David Edwards, head of sales and client engagement, securities and fund services for Citi Transaction Services in Australia, said Citi was able to integrate its custody service offering with a range of other products and services to meet Challenger's needs.
"We are delighted to have structured the right solution for Challenger, both for now and as their business evolves. They are recognised as a leader in the Australian retirement space, and we look forward to a long-term consultative partnership with them," he said.
Challenger manages over $35 billion across a number of asset classes through its Life division and fiduciary funds management business.
Assets will transition in December.
