Listed-fund manager Magellan Asset Management has cited experience with Ireland’s Undertakings for Collective Investment in Transferable Securities (UCITS) framework as a key reason in the appointment of Northern Trust as its new custodian.
Northern Trust was appointed after a competitive process, replacing former custodian Merrill Lynch.
Magellan, which has around US$6.7 billion in funds under management, plans to launch a UCITS fund in Ireland in the March quarter of this year, for which Northern Trust will provide a full suite of custody and fund administration services.
“Northern Trust’s local expertise and client service model, and importantly Northern Trust’s experience and service solutions for Magellan’s Irish UCITS fund was the key reason for our decision,” said Nerida Campbell, Magellan’s chief operating officer.
Northern Trust has around $140 billion in funds under custody across Australia and New Zealand.
The Magellan announcement follows a number of new mandates announced in the custody space in the early months of 2013, with local market leader National Australia Bank Asset Servicing picking up mandates from mid-ranking fund managers Atrium, Fitzpatricks and Adelaide-based Investment Science Asset Management.
JPMorgan also won a major mandate with $21-billion superannuation fund HESTA at the end of January.
Northern Trust entered the Australian market in 2006 and managing director Rohan Singh has declared Australia a key strategic market for the custodian.
Singh is one of the speakers at the Conexus Financial Investment Administration Conference in Sydney today.