State Street Corporation (NYSE: STT) has been chosen by Challenger Limited, a leading Australian investment management firm, to provide custody and investment administration services across back, middle, and front offices through the State Street Alpha® platform. This partnership will cover Challenger’s suite of listed and unlisted investment vehicles, with A$127 billion in assets under management.
As part of this relationship, State Street will serve as custodian and investment administrator for the entire Challenger group, which includes Fidante, a multi-affiliate funds management platform; Challenger Investment Management, a fixed income platform; and Challenger Life, Australia’s leading annuity provider.
“This partnership is significant for State Street,” said Stefan Gmuer, head of Asia Pacific and Strategic Business Growth at State Street. “It reinforces our front-to-back proposition, delivering value, scale, and efficiency to clients looking to drive growth and transformation.”
Challenger will become one of the largest investment managers in the region to use the State Street Alpha® platform, which integrates front, middle, and back office services from a single provider.
Nick Hamilton, managing director and CEO of Challenger, commented, “State Street’s strong technical expertise, platform investment, and global reach will help us and our affiliates seize growth opportunities while delivering innovative, high-quality services.”
Around 100 Challenger employees will transition to State Street in October, following consultation. These employees will continue providing investment administration services for Challenger’s listed and unlisted vehicles. Additionally, David Mackaway, CEO of Artega—a venture majority-owned by Challenger—and his management team will also join State Street. With over 25 years of experience, Mackaway will bring valuable expertise to State Street’s Australian business.
