Custody assets reach $4 trillion

18 February 2021
| By Jassmyn |
image
image
expand image

Assets under custody in Australia increased 7.4% to $4 trillion thanks to improving market returns and market valuations, over the six months to 31 December, 2020, according to the Australian Custodial Services Association (ACSA).

ACSA data found the custodian with the largest jump was Netwealth at 23.2% to $38.8 billion. However, the largest provider was JP Morgan at $973.2 billion with an increase of 18.7% during the same time period.

ACSA chief executive, Robert J Brown, said: “The rebound in assets under custody is a result of the bounce in market valuations that occurred over the second half of 2020 on the back of improving market returns and ongoing client confidence in ACSA member’s custody and investment administration solutions.

“Looking behind the numbers, there has been continued operational adaption to pandemic impacts that have allowed the industry to remain resilient,” Brown said.

Brown noted that exception processing remained the weak link in the industry with some transaction types dependent on wet ink signatures and physical documents.

“…These transactions require new approaches to improve efficiency, contain risk and minimise the potential for disruption,” he said.

“Overall the industry is highly automated, but a small proportion of asset types present challenges in normal times which are amplified through pandemic interruption. ACSA remains engaged with all parties in the service chain to improve efficiency.”

Total Assets Under Custody for Australian Investors (AUD Billion)

Rank

Provider

30-Jun-20

31-Dec-20

% change

1

JP Morgan

820.2

973.2

18.7%

2

Northern Trust

561.5

660.9

17.7%

3

Citigroup

544.8

589.7

8.2%

4

NAB Asset Servicing

530.4

538.5

1.5%

5

BNP Paribas

463.3

475.0

2.5%

6

State Street

405.2

460.7

13.7%

7

HSBC Bank

179.8

196.1

9.1%

8

Clearstream

61.7

70.9

14.9%

9

Netwealth

31.5

38.8

23.2%

10

BNY Mellon

27.1

25.9

-4.3%

 

Total

3,753.8

4,029.8

7.4%

Source: Australian Custodial Services Association – Industry Statistics December 2020

Read more about:

AUTHOR

Add new comment

The content of this field is kept private and will not be shown publicly.

Recommended for you

sidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

3 months 4 weeks ago
Kevin Gorman

Super director remuneration ...

4 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

4 months ago

While institutional investors, including super funds, unanimously acknowledge the energy transition as a significant challenge, their perspectives on the extent of their ...

18 hours 50 minutes ago

Despite a period of increased volatility, several considerations suggest that the bull market will remain intact and the trend in shares will remain up, an economist has ...

19 hours ago

HESTA has slammed Woodside’s climate transition action plan, pointing to “significant” gaps....

19 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND