Equip Super Completes Transition to Northern Trust for Asset Servicing Solutions

Rhea-AI Summary

Northern Trust (Nasdaq: NTRS) has announced its new partnership with Equip Super, providing asset servicing solutions including global custody, fund administration, and portfolio analytics services. The transition took effect on April 2, 2024. Equip Super, headquartered in Melbourne, manages AU$34 billion in funds for over 140,000 members in Australia. Northern Trust's experience in the Australian superannuation sector was pivotal in Equip Super's decision, aiming to scale and maintain consistent service. With an established network across the Asia Pacific, Northern Trust offers a comprehensive range of financial services.

Positive

• Equip Super manages AU$34 billion in funds, indicating a large asset base for Northern Trust to service.
• Northern Trust's global presence and extensive network in Asia Pacific enhance its credibility and service scope.
• The partnership is expected to help Equip Super scale effectively while maintaining service consistency.
• Equip Super's selection of Northern Trust highlights the latter’s competitive fees and comprehensive service offerings.

Negative

• The transition of services comes amidst a changing working population and evolving financial landscape, posing potential challenges.
• Superannuation funds are under increasing pressure to deliver value, which could strain resources and operational efficiency.

Insights

Financial Analyst

Equip Super's decision to transition its asset servicing solutions to Northern Trust is noteworthy within the fiduciary services market. This move likely impacts cost efficiencies and service quality, potential areas of interest for investors. With AU$34 billion in funds under management, Equip Super's integration with Northern Trust could signal improved scalability and enhanced service offerings. Additionally, Northern Trust's expansive presence in the Asia-Pacific region is an advantage, providing localized expertise which may further bolster Equip Super's performance. For retail investors, this deal might indicate Northern Trust's strategic push to consolidate its market position in Australia's superannuation sector, potentially translating to more robust financial results for NTRS in the future. It's essential to monitor the subsequent financial statements for any material improvements in revenue or cost efficiency attributed to this new partnership.

Market Research Analyst

From a market perspective, Northern Trust's expansion into Australia's superannuation market via Equip Super is strategic, aiming to leverage the growing demand for comprehensive asset servicing solutions. The partnership underscores a trend where asset management firms are increasingly outsourcing to specialized service providers to enhance efficiency and focus on core activities. Given the competitive fees and extensive service offerings mentioned, Northern Trust's ability to meet Equip Super's strategic objectives could set a precedent in the industry. For investors, this move might suggest Northern Trust's commitment to expanding its client base and market share, which could serve as a growth catalyst. Observing shifts in market share among service providers in the Australian superannuation industry will be important to understand the long-term impact.

MELBOURNE, Australia--(BUSINESS WIRE)-- Northern Trust (Nasdaq: NTRS) today announced that it will provide asset servicing solutions, including global custody, fund administration and portfolio analytics services, to Equip Super, a leader in the Australian Superannuation industry. The transition of services took effect on 2 April 2024.

Headquartered in Melbourne, Australia, Equip Super offers super, financial advice and pensions to more than 140,000 members across Australia. As of 31 March 2024, Equip Super has approximately AU$34 billion in funds under management.

“The decision by Equip Super to select Northern Trust underlines our commitment to Australia and is a testament to the breadth of our experience and expertise in providing asset servicing to Australian superannuation funds,” said Leon Stavrou, Country Executive Australia and New Zealand, Northern Trust. “We understand the unique needs of this industry and look forward to building our relationship with Equip Super as they continue to grow.”

Amidst a changing working population in Australia and a rapidly evolving financial landscape worldwide, superannuation funds may face increasing pressure to deliver value while meeting member expectations. In recent years, Equip Super has been involved in several successor fund transfers in the superannuation industry and continues to look for new growth opportunities. Equip Super was seeking a partner that could enable them to scale effectively while providing its members with a consistent service experience.

“We chose Northern Trust as our new custodian based on their global services and product offering and competitive fees. They proved to be the best match to enable us to meet our Fund’s strategic objectives and provide the best financial interest to our members,” said Marc Pizzichetta, CFO of Equip Super.

Northern Trust has an established network of offices across Asia Pacific in Beijing, Bengaluru, Hong Kong, Kuala Lumpur, Manila, Melbourne, Pune, Singapore, Sydney and Tokyo. It has strong relationships with some of the region’s largest central banks, sovereign wealth funds, government agencies, corporations and asset managers, offering a comprehensive range of customized asset servicing, asset management and capital markets solutions.

About Equip Super

Equip Super manages $34 billion for over 140,000 members across both Equip Super and Catholic Super. Equip Super is a leader in the superannuation industry in bringing funds together through successful successor fund transfers and continues to look for new opportunities to grow the fund.

Across Equip Super and Catholic Super, we service employers and members from the energy, resources, water, infrastructure, manufacturing, education, health, legal and services sectors. Equip Super is an industry super fund, operating accumulation, defined benefit and pension plans. Our key objective is to deliver the best retirement outcome possible for members, while operating as a trusted partner for participating employers.

Equipping members today, so they’re ready for tomorrow.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2024, Northern Trust had assets under custody/administration of US$16.5 trillion, and assets under management of US$1.5 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on X (formerly Twitter) @NorthernTrust or Northern Trust Corporation on LinkedIn.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at https://www.northerntrust.com/terms-and-conditions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240520460218/en/

Media Contacts

Europe, Middle East, Africa & Asia-Pacific:

Camilla Greene

+44 (0) 20 7982 2176

Camilla_Greene@ntrs.com

Simon Ansell

+ 44 (0) 20 7982 1016

Simon_Ansell@ntrs.com

US & Canada:

John O’Connell

+1 312 444 2388

John_O’Connell@ntrs.com

Source: Northern Trust Corporation

FAQ

When did Equip Super transition to Northern Trust for asset servicing?

Equip Super transitioned to Northern Trust on April 2, 2024.

What services will Northern Trust provide to Equip Super?

Northern Trust will provide global custody, fund administration, and portfolio analytics services to Equip Super.

How much in funds does Equip Super manage?

As of March 31, 2024, Equip Super manages approximately AU$34 billion in funds.

Why did Equip Super choose Northern Trust?

Equip Super selected Northern Trust for its global services, product offerings, competitive fees, and ability to help meet strategic objectives.

What is the stock symbol for Northern Trust?

The stock symbol for Northern Trust is NTRS.