‘Once-in-a-decade’ events are becoming more and more common, but avoiding them altogether is just one way of protecting portfolios. ART is building new capabilities to absorb their impact – and come back from them even stronger.
With almost 50 per cent of its nearly $100 billion FUM now internally managed, Cbus has seen fees come down and gained more control over its ever-growing portfolio. But in hindsight it “could have pushed a bit harder”.
‘Value, scale and efficiency’: Challenger goes front-to-back with State Street
State Street has been selected to provide custody and investment administration services to the entire Challenger group, including its multi-affiliate platform Fidante, fixed income platform Challenger Investment Management, and Challenger Life, its annuity product provider.
Challenger will also be one of the largest investment managers in the region to deploy State Street Alpha, its asset servicing platform integrating front, middle and back office services.
“This partnership is very important for State Street,” said Stefan Gmuer, State Street head of Asia Pacific and head of strategic business growth. “The mandate reaffirms our front to back proposition which brings value, scale and efficiency to our clients who are looking to accelerate their own growth and transformation. It also further cements our position as a leading provider of choice for large, sophisticated transactions.”
As part of the mandate, about 100 Challenger staff will transfer to State Street to provide administration services support for Challenger’s suite of listed and unlisted investment vehicles. David Mackaway, the chief executive of Artega Investment Administration – a venture majority owned by Challenger – will also join State Street along with members of his management team.
“State Street has a strong track record in servicing investment managers and institutional clients.” said Nick Hamilton, managing director and chief executive officer of Challenger. “Their leading technical capability, platform investment and global footprint will support our business and affiliates to help execute on the significant opportunity ahead, at the same time as delivering a high-quality service and innovation for our affiliates and clients.”
The mandate marks the latest in a series of wins for State Street’s antipodean arm, with the custodian recently taking on the business of Australian Ethical, Brighter Super and Australian Retirement Trust.
“As we welcome Challenger as a new partner, we are excited to be adding a large number of talented and experienced investment management and fund administration professionals to our team here in Australia,” said Tim Helyar, Australia country head at State Street.
“By growing our talent pool, we are enhancing our capacity to meet and exceed the increasingly complex needs of our clients in Australia. We will continue to invest and strengthen our servicing capability as part of our commitment to the Australian market.”
