State Street wins combined custody mandate
Queensland superannuation funds have joined together in a bid to extract the best possible deal for the provision of custodial services, with State Street ultimately winning the mandate.
The funds, QIEC Super, Club Super and Mercy Super believe their combined approach is unique and will serve to deliver them a “package deal”.
Describing their approach, a spokesperson for the three funds said they believed that by combining their funds under management rather than going to the market individually, they were likely to receive more competitive terms from potential custodians.
"Our total funds under management is over $1.9 billion, which gave us more bargaining power. It was good for the custodian as well, as they only needed to deal with one party rather than three,” she said.
The spokesperson said the key was for all three funds to agree early on what they were looking for in a custodian.
After a thorough tender and interview process, the funds unanimously agreed to appoint State Street as their custodian.
State Street will provide fund accounting, crediting rates and unit pricing and taxation services as well as assist in providing data required by APRA under the Stronger Super reforms.
AUTHOR
Staff Writer
Recommended for you
Licensees are being reminded to take prompt action once their licence is granted as ASIC cancels the AFSL of a Sydney firm.
Appearing before the Senate economics committee, WT Financial managing director Keith Cullen has described the first tranche of QAR legislation as a “ticking time bomb” in its current form.
Licensees are figuring out how to navigate the annual superannuation performance test to avoid any clients being stuck in affected funds and whether they need to start running their own internal tests.
The corporate regulator has made a suspension and a cancellation of the AFSL of two Queensland-based firms.
