Mumbai: A global custodian with staff working overseas,
including in India, will manage Australian government''s
$51 billion Future Fund.
The Chicago-based Northern Trust will use its regional
headquarters in Singapore and staff in Bangalore to manage
the fund, a report in the Herald Sun said.
The Future Fund would build investments to cover public
service superannuation liabilities, which is expected
to reach about $140 billion by 2020.
Northern Trust will earn about $30 million a year to
in fees and related income for managing the funds or acting
as "global custodian", the report said.
The fund manager will sent about 60 jobs out of every
100 in Australia to Singapore and elsewhere. Northern
Trust has two people working with the fund in Melbourne
and this may be increased to ten.
The fund is run by an independent board, which is appointed
by the Australian government.
Banking sources yesterday said the industry generally
was surprised by the company selected for Australia''s
biggest ever banking management contract.
Northern Trust was the only bidder for the global custodian
contract that did not have an Australian base.
They said the selection raised issues of how Australian
law could be applied to an offshore entity.