POWERED BY MOMENTUM MEDIA
Custody sector grows 6.4%
The total assets under custody in Australia grew by 6.4 per cent $3.2 trillion during the first half of 2017, according to the Australian Custodial Services Association (ACSA).
The latest ACSA statistics found the amount of overseas client investment into Australia, assets held in sub-custody arrangements, grew by 5.7 per cent over the first half of 2017. ACSA said this reflected the growing attractiveness of Australia as an investment destination for foreign asset owners.
J.P Morgan remained the largest overall provider in the Australian custody market for the third time running at $640.7 billion, followed by NAB Asset Servicing at $534 billion, and BNP Paribas at $510 billion.
The largest increase in custody assets was Netwealth with a 31.2 per cent increase to $14.3 billion which ranked it at 10th.
ACSA chair, David Knights, said the increase in custody overall had been fuelled by a 7.1 per cent growth in domestic assets held for Australian investors, outpacing foreign investment growth which stood at five per cent.
“Growth in Australian settlement transaction volumes was up 8.1 per cent for the period, whilst unlisted unit trust registry transaction volumes declined by 14.5 per cent, possibly reflecting a shift into domestic listed asset classes,” Knights said.
“Looking forward for the sector, both the implementation of Attributed Managed Investment Trust Regime and the commencement of the Asian Funds Passport will drive foreign investment growth in the Australian market.”
ACSA found that HSBC remained the largest sub-custody services provider in the Australian market at $1.05 trillion, followed by J.P. Morgan at $187.82 billion, and Citigroup at $136.2 billion.
The largest decrease in this sector was NAB Asset Servicing with a 64.5 per cent decrease to $11 billon.
Recommended for you
Equity markets have surged ahead of fundamentals as institutional investors fall behind, according to Ten Cap Alpha Plus.
Local investors are leading the region in plans to boost private market exposure, as demand grows for innovative fund structures, resilient investments, and a more selective approach to alternatives.
Research shows institutional investors are increasingly turning to private credit, but the APAC region’s relatively small market size remains a key constraint.
The global financial platform has completed a Series F funding round, with superannuation funds participating in the round.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
DomaCom DFS Mortgage
92.15 3 y p.a(%)
2
Global X 21Shares Bitcoin ETF
53.24 3 y p.a(%)
3
Global X GlobalX FANG+ ETF
43.15 3 y p.a(%)
4
DomaCom Shoreline North Coogee
36.26 3 y p.a(%)
5
GAM LSA Private Shares AU I
35.87 3 y p.a(%)
