Generation Life selects Northern Trust on $1.5b custody mandate

Northern Trust has expanded its reach in the Australian asset servicing market, with Generation Life enlisting the global giant to provide custody and valuation reporting services.

Under the new remit, Northern Trust will provide support to $1.5 billion (as of 31 January 2025) of the Australian life insurer’s portfolio assets, including domestic and international equities, bonds, FX, and SICAVs.

Generation Life chief executive Felipe Araujo hailed the deal as “an important partnership” for the firm, aligning with its key strategic initiatives.

“Northern Trust’s focus on investment in digital technology strongly aligns with our objective to deliver a scalable operating model to support our growth ambitions and enhance the experience for our clients,” he said.

Founded in 2007 and based in Melbourne, Generation Life oversees more than $3.8 billion in investor funds (as at the end of 2024).

The life insurer touts its tax-effective investment solutions, including being among the first to introduce a flexible investment bond to Australia.

Northern Trust country head of Australia Leon Stavrou said its selection by Generation Life would help the life insurer achieve “operational excellence”.

He added: “Northern Trust’s position as one of Australia’s leading asset servicing providers allows us to dedicate resources and tailor capabilities to meet our clients’ unique needs.”

Northern Trust oversees US$16.8 trillion of assets under custody/administration globally.