JP Morgan wins big NSW custody mandate

JP Morgan has picked up a key mandate with NSW Treasurer, Gladys Berejiklian naming the company as the custodian for the investment assets of NSW Treasury Corporation (TCorp), SAS Trustee Corporation (State Super) and Insurance and Care NSW (icare).

Berejiklian said the selection of the single custodian covering three organisations was expected to generate significant savings for the state.

Her announcement noted that TCorp has $70 billion in assets under management and the appointment of a single custodial services provider is estimated to drive $80 million in cost savings over 10 years.

She said this did not include the benefits TCorp had been able to deliver since the funds amalgamation. State Super and icare are two of NSW's largest guardians of financial assets.

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"As well as providing better value for the NSW taxpayer, the initiative is expected to deliver a more unified picture of the State's investment positions and best-practice financial management," her announcement said.

"The NSW Government is committed to eliminating unnecessary spending and shrinking costs within Government where possible."

JP Morgan was selected following a competitive process. The selection is subject to final contract negotiations.