LGIA Super, in the process of merging with Energy Super, last week (April 30) confirmed the appointment of National Asset Servicing as custodian for the new fund.
This follows last week’s announcement that LGIA will buy the Suncorp wealth management business, making only the second industry fund to buy a retail-orientated business after First State Super (now Aware) acquired StatePlus, the financial advice and asset management arm of NSW State Super in 2016.
The asset servicing deal is significant because transition has been made simpler due to the NAB arm already providing custody and other backoffice services to Suncorp.
For NAS, the wealth management move makes the appointment by LGIA a deal which, on paper, is worth nearly $30 billion in assets. LGIA is reported to have paid $45 million for the $7-8 billion Suncorp wealth management business.
NAS is currently the custodian for fellow Queensland-based industry fund Energy Super, while J.P. Morgan is custodian for the slightly larger LGIA.
Kate Farrar, the chief executive-elect of the merged fund, is the chief executive of LGIA. Robyn Petrou, who will assist with the merger for several months, is the chief executive of Energy.
The latest move indicates a strong intention for Farrar and her new board to grow the combined fund’s assets as well as boost is advice and other services to its membership base.
As previously reported, NAS has already commenced work on transitioning the Energy Super assets to its systems.