Frontier awards custody mandate for ICIO offering

Frontier Advisors is set to launch its independent chief investment officer (ICIO) service to the Australian market and has awarded a custody and administration mandate ahead of its release.

Northern Trust has been appointed to provide asset servicing for clients of the new offering.

Frontier announced in October 2025 it would be absorbing the State Super investment team as part of developing the capability to offer an end-to-end advice and portfolio management service for institutional investors.

That team successfully transitioned into the firm in December and has continued to manage the State Super portfolio as 'client number one' of the ICIO service.

Frontier has been collaborating with Ironbark Investment Solutions' Corporate Trustee business for more than a year to design the structure required to bring the ICIO solution for clients beyond State Super.

Frontier said the final piece in the puzzle was securing the services of a custodian.

Under the appointment, Northern Trust will provide global custody and fund administration functions to support the ICIO operating model.

The ICIO service will deliver investment advice and portfolio management capability through a scalable wholesale managed discretionary account (MDA) structure designed to support multiple underlying clients.

Ironbark will be the MDA provider responsible for independent oversight of the wholesale managed discretionary account, its appointed service providers and to ensure client portfolios are managed in line with their agreed investment program.

Frontier said it developed the ICIO service to meet growing demand from asset owners seeking institutional-grade portfolio management and operational support without having to give up the integrity of an advice model that is free from product conflicts.

Frontier chief executive Andrew Polson said he is excited to be ready to start taking on new clients.

"We've had great feedback since we announced our ICIO plans in late 2025 and that has come both from our existing clients and a range of groups we haven't had the chance to work with previously because we could not fully meet their requirements, despite their interest in Frontier," Polson said.

"A major part of what these investors are looking for is getting access to custodian services. Having an organisation like Northern Trust providing a consistent, scalable servicing and data framework is powerful and their reputation and record adds to the capability and confidence the Frontier brand provides as part of ICIO."

Frontier said Northern Trust was chosen following an extensive and competitive selection process run over several months managed jointly by Frontier and Ironbark.

"Australia is a key growth market for Northern Trust, and we continue to build upon our support for institutional investors as they modernise their operating models," Northern Trust head of Australia and New Zealand Leon Stavrou said.

"Our commitment to client service, technology, governance and advanced data delivery are central to Frontier Advisors' ICIO proposition and a key reason we were selected for this mandate. Importantly, our scalable data support model can evolve to meet the requirements of the ICIO platform's continuing development. We look forward to working closely with Frontier Advisors as they grow their ICIO offering in the Australian market."