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J.P. Morgan takes custody of Spirit Super
J.P. Morgan will provide “full-scale” global custody and fund administration services to Spirit Super in what the bank says is a “testament to (its) capabilities and commitment to supporting the superannuation industry”.
The transition from Spirit Super’s previous custodian, NAB Asset Servicing (NAS), comes ahead of the fund’s projected late 2024 merger with CareSuper, which will see the combined fund managing nearly $50 billion in assets for a member base of 500,000.
“Partnering with J.P. Morgan marks a significant milestone for Spirit Super,” said Spirit Super CIO Ross Barry. “Their proven track record and global expertise will be invaluable as we strive to achieve our strategic ambitions and continue to deliver optimal results for our members.”
J.P. Morgan has been CareSuper’s custodian since 2020, delivering a “full suite of fund administration and global custody services”. It won that business from NAS, with Care’s then CEO Julie Lander saying that the switch to J.P. “aligned with CareSuper’s investment program and strategic plans for future growth”.
“J.P. Morgan is delighted to partner with Spirit Super to support their long-term strategic objectives,” said Nadia Schiavon, J.P. Morgan’s head of securities services for Australia and New Zealand. “Following Spirit Super’s transition onto our global strategic technology platform, J.P. Morgan is prepared and ready to support both Spirit Super and CareSuper for their upcoming merger. Underpinning our collaboration is our dedicated transitions team and extensive experience gained from supporting the local superannuation industry with several key strategic mergers.”
Though the largest custodian in the Australian market, with more than $1 trillion in assets under custody, J.P. Morgan has not been as visible a participant in the NAB Asset Servicing feeding frenzy. While it stood to take the crown jewel in MLC, it was BNP Paribas that carried the day, winning with it the entire business of Insignia Financial. J.P. was apparently tripped up by its ongoing issues with its transition from HiPortfolio to a system it calls WINS (a rebranded Sungard InvestOne) and wasn’t able to commit to MLC in a timely fashion, focusing instead on bedding down existing clients.
