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Custody assets reach $4 trillion
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
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TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.56 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
31.06 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.81 3 y p.a(%)
