J.P. Morgan renews lending mandate with Australian superannuation fund
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J.P. Morgan renews lending mandate with Australian superannuation fund 17 December 2019Australia Reporter: Natalie Turner
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J.P. Morgan is set to provide securities lending and other asset servicing services to the Australian superannuation fund, Local Government Super (LGS), for a further five years.
Under the new contract, signed last week, J.P. Morgan will be the sole custodian of LGS’ more than AUD 12 billion (USD 8.22 billion) assets under management and will also offer physical safekeeping of assets, and account and administration services, including unit pricing and compliance.
The bank was unable to confirm how much of the LGS’ asset pool will be available for lending or offer further details on the terms of the programme.
Nadia Schiavon, head of securities services for Australia and New Zealand at J.P. Morgan, explained that, in addition to custodial services, the bank will also provide performance reporting to support LGS’ responsible investment strategy.
J.P. Morgan has been providing custody services for LGS since 2003 and was able to re-capture the pension funds’ custom after LGS’ management opened itself up to new offers from other agents and service providers.
LGS CEO, Phil Stockwell, commented: “LGS and J.P. Morgan have worked closely together for a number of years to support our strategic objectives across our custody, fund administration and securities lending services.
“Ongoing access to the expertise and capabilities of J.P. Morgan ensures we continue to provide strong outcomes for our members.”
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