J.P. Morgan has been re-selected by Annuitas for custody over the roughly $5 billion in assets in New Zealand's National Provident and Government Superannuation Funds.
Annuitas was established in 2001 as a joint venture between the two funds and provides administration services for both. National Provident and the Government Superannuation fund were both closed to new members in the early '90s, but they continue to pay pensions to around 82,000 members and allocate new investments.
Speaking to Financial Standard, Annuitas chief executive Simon Tyler explained that the funds' relationship with J.P. Morgan extends back to 2000, and that Annuitas undertakes a review of "suppliers of significant services" every five years.
"It's best practice, and we'll occasionally do a desktop review but last year we did a full-blown review of our custody services. We're a closed fund, so our requirements aren't changing, but the investment world is definitely changing," he said.
"We're implementing new investments, and on top of that, the custody world is changing, too - custodians are improving their systems while their competitors do the same, so it was important for us to engage Thomas Murray to go through a tender process with six major custody providers. In the end, we're happy to say we can continue our relationship with J.P. Morgan."
J.P. Morgan Investor Services head of sales and client management Australia and New Zealand Bryan Gray added that the firm has seen an "increasing need for investment analytics, risk information and exposure reporting" in custody services providers.
"Annuitas's in-house investment team is looking for more frequent in-depth information that helps them make decisions to change their investment manager line-up. We've also rolled out new exposure reporting features and have moved into private equity administration, because there have been many conversations recently about moving into private equity investments as alternative sources of alpha. Being able to provide in-depth private equity analysis is an important part of our offering."
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