Former Suncorp satellite Tyndall Investment Management has selected its new custodian with a formal announcement of the deal expected this week.
I&T News understands BNP Paribas Securities Services (BNP PSS) has picked up the Tyndall custody contract for the majority of its approximately $25 billion Australasian assets.
Craig Hobart, Tyndall Australia managing director, was not able to confirm the appointment of BNP PSS, however, he said the group was “finalising an agreement” with a new custody provider.
Tyndall has been searching for a new custodian following its purchase by Japanese firm Nikko Asset Management last November for about $130 million.
Before the takeover, Tyndall’s former parent, Suncorp, managed the investment back-office duties in-house.
However, Hobart said the new arrangements would apply to “Tyndall’s unit trusts and any of our wholesale clients who we offer a custody service” rather than its entire Australian $22 billion funds under management.
He said a number of Tyndall Australia’s wholesale clients, including Suncorp General Insurance, would continue with their existing custodians.
Peter Lynn, head of Tyndall New Zealand, said several of its local clients would also retain their own custodians but most of the firm’s NZ$3.6 billion under management would make the transition to a new provider.
While Lynn would not confirm the appointment of BNP PSS, he said it was critical that any potential custodian would be able to handle New Zealand’s relatively new PIE (portfolio investment entity) regime, where returns are taxed at the investor’s marginal tax rate rather than at the fund level.
The New Zealand arm of BNP PSS also secured another new client last week, signing up boutique funds management firm Devon Asset Management. Paul Glass, co-founder of the now Macquarie Bank-owned Brook Asset Management, launched Devon last year.
Mel Firmin, Devon head of operations, said the group’s current NZ$530 million would remain with a range of existing custodians but any new wholesale money would be administered by BNP PSS.
“We’ll be getting some significant [wholesale] flows soon,” Firmin said.
He said Trustee Executors would continue to administer Devon’s retail funds, however, the business was under review.