First State Super has announced it is appointing State Street to provide custodial services at the $52 billion industry superannuation fund.
State Street will now provide master custody, investment administration and custody ancillary services, and middle office services.
First State Super chief executive Michael Dwyer said the decision to undertake a custody review was driven by the desire "to ensure we are well-positioned to support the continued growth of our business and to have the best long-term partners in place to help us meet current needs and future business requirements."
"It is important that we also exercise good governance by benchmarking the services available in the market to ensure we secure the best outcome for the benefit of our members. We are confident we can achieve new business efficiencies and great value for members as a result of our partnership with State Street."
State Street head of global services and global markets for Australia, Chris Taylor, said: "First State Super has a clear objective to be closer to markets and to have greater control over investment decisions, in order to deliver even better outcomes for members. To achieve this they continue to evolve their business model, internalising more of the investment management function."
"We have invested extensively in our suite of solutions to support this type of development, which includes investment analytics, middle office, data warehousing and data governance services," Taylor said.
"We are well placed to help First State Super mitigate the operational risks and develop the necessary investment infrastructure that this change requires."
First State Super's former custodian, J.P. Morgan, provided guidance during the fund's merger with Victorian based Health Super in 2012. The firm will still provide important services to the fund, Dwyer said.
The transition of custody is expected to be complete before the end of the year.