Custody tenders sent to market by two large superannuation funds will put their incumbent provider, JPMorgan Worldwide Security Services (JPMorgan WSS), to the test.

It is understood that the $14.7 billion REST Superannuation has put its custody contract out to tender, enlisting its asset consultant, JANA Investment Advisers, to run the tender in which incumbent custodian JPMorgan WSS will compete against other providers for the contract.

Damian Hill, chief executive officer of REST, was unavailable for comment at presstime.

JPMorgan WSS also faces competition to keep the backoffice business of the $4.9 billion AUSCOAL Super, which was preparing to tender its custody contract in July.

Paul Coenraads, a former custodian with JP Morgan WSS and now investment administration manager with AUSCOAL, was confirmed to be running the tender.

In July, he flagged the consolidation of tax liabilities, the ability to conduct more transactions online than by fax and the global reach of custodians, including the depth of their relationships with sub-custodians as services and attributes sought by AUSCOAL.

JPMorgan WSS has been the fund’s custodian since 2003.