HESTA has renewed its appointment of J.P. Morgan as its custody and fund services provider for a further five years following an independent review process.
The $102 billion superannuation fund said the review focused on the continued delivery of investment execution and value for members, with J.P. Morgan retaining responsibility for a range of custody and administration services.
The mandate covers asset safekeeping, fund accounting, valuation, tax and regulatory reporting, performance measurement and middle office services.
HESTA chief executive Debby Blakey said the renewed agreement reflected the importance of the relationship to the fund’s operations and investment capabilities.
“J.P. Morgan has been a trusted partner of HESTA for nearly three decades and its support has been integral to a significant period of investment growth and transformation for the Fund,” Blakey said.
“With more than $100 billion in member retirement savings and close to 20 per cent of our investment portfolio managed internally, it’s fantastic HESTA will continue to access world-class investment expertise and services. This longstanding partnership can support us as we strive to continue delivering strong, long-term returns for our members.”
The partnership has supported the growth of HESTA’s internal investment function, with the fund now managing nearly 20 per cent of its portfolio in-house.
J.P. Morgan’s securities services division said it would continue supporting the fund as the superannuation sector faces increasing operational and regulatory complexity.
“As the superannuation industry evolves, we remain committed to helping HESTA navigate increasing change and complexity. We look forward to continuing our enduring partnership and contributing to HESTA’s ongoing success by delivering our global scale, tailored solutions, innovation, and local market expertise,” said Nadia Schiavon, head of securities services, J.P. Morgan Australia and New Zealand.
Nick Paparo, head of securities services sales, J.P. Morgan Australia and New Zealand, said the reappointment reflected the strength of the long-running relationship between the organisations.
“We value our long-standing relationship with HESTA and have worked closely to support the fund’s evolving needs. This reappointment reflects the confidence HESTA has placed in us and underscores our leading capabilities and commitment to supporting our superannuation client community. We are excited and honoured to partner with HESTA in their next phase of growth,” Paparo said.
J.P. Morgan said it was the largest provider of custodial services in Australia by assets under custody, with $1.49 trillion held on behalf of clients.
