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LGIAsuper picks custodian for merged fund

LGIAsuper, which is merging with Energy Super and recently bought Suncorp's superannuation assets, has appointed a new custodian for the total $28 billion in assets.

The merged industry fund will use NAB Asset Servicing as its custodian, siding with Energy Super and Suncorp Portfolio Services' current custodians and moving away from LGIAsuper's current custodian J.P. Morgan.

LGIAsuper reviewed custodians for the merged fund, including the two incumbents.

NAB Asset Servicing will take over from June 1, and provide custody, administration, middle office services and centralised portfolio management.

The Energy Super merger comes into effect on July 1 while Suncorp acquisition is slated for a 31 March 2022 completion.

"NAB's client-centric model and ability to improve operational efficiency for members were key factors in our decision, along with the organisation's strong track-record of excellent client service," LGIAsuper chief executive Kate Farrar said.

"As the custodian of both funds, NAB's extensive knowledge of SPSL will be invaluable as we transition the business."

NAB Asset Servicing is the only remaining custodian aligned with a big four bank. It was the largest custodian for Australian investors' assets until June 2016.

It has since slid to the fourth spot ($538.5 billion) at the most recent count from December 2020 end, and has been overtaken by J.P. Morgan ($973.2 billion), Northern Trust ($660.9 billion) and Citigroup ($589.7 billion).

Read more: Energy SuperNAB Asset ServicingJ.P. MorganSuncorp Portfolio Services