NAB Asset Servicing maintains top spot in custody market

NAB Asset Servicing has retained its position as the largest player in Australia's custody market, growing 2.2 per cent over the six months to June 2013 to $556 billion in total assets under custody for local investors.

Significant growth for Citigroup (21 per cent) and Bond Street (31 per cent) to $213 billion and $63.7 billion respectively could not overshadow the industry's second and third largest players — JP Morgan up 5 per cent to $394 billion and BNP Paribas up 5.7 per cent to $313 billion.

A rising global and local market led to growth in assets under custody for every major player in the last six months, the Australian Custodial Services Association (ACSA) said in relation to the results of its half-yearly industry statistics. Total assets under custody for Australian investors increased by 6.7 per cent to $2.16 trillion for the first half of 2013.

Australian assets under custody for Australian investors increased 5.5 per cent to $1.56 trillion.

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A falling Australian dollar and rising global equity markets also saw upward movement for non-Australian assets under custody for Australian investors, which climbed 10.2 per cent to just over $600 billion.

JP Morgan retained its position as the largest holder of non-Australian assets for Australian investors and increased 25.8 per cent to $137 billion, followed by State Street up 2.7 per cent to $87 billion and NAB Asset Servicing up 15.8 per cent to $86 billion.

The sub-custody market experienced minimal growth of 0.1 per cent as foreign ownership of local assets slowed due to a decline in the mining boom and interest rate cuts.

HSBC Bank is still the dominant sub-custodian, according to ACSA, with $576 billion in sub-custody assets.

BNP Paribas, with $245 billion in assets administered, was deemed the largest administrator in Australia, up 14.5 per cent to $407 in assets under administration, followed by NAB Asset Servicing with $369 billion and State Street at $208 billion.