POWERED BY MOMENTUM MEDIA
Assets under custody reach $4.7t
Clearstream, Netwealth and Citigroup are the winners in the custody space, all increasing their assets under custody by 20% or more in the last six months.
According to the Australian Custodial Services Association (ACSA), total assets under custody rose by 5.8% to $4.7 trillion in the six months to 31 December, 2021.
Asset servicing providers settled over 13 million trades during the six months, this equated to approximately 101,000 settled trades per day on behalf of clients.
J.P. Morgan held the largest proportion of assets under custody at $1.1 trillion, the only company to hold more than $1 trillion.
This was followed by Citigroup with $823 billion, a 22% rise from the end of the previous quarter, while Northern Trust had $730 billion.
Clearstream and Netwealth, while smaller in assets under custody, also saw growth of 25% and 20% respectively during the period to reach $106 billion and $56 billion.
ACSA chief executive, David Travers, who took over from Robert Brown last year, said the result occurred on the back of strong financial markets in the second half of the year and confidence in the key services provided by the securities services industry”.
Australian assets increased by 6.1% while offshore assets increased by 5.4%, which compared to 0.4% for assets held onshore for foreign investors.
Travers commented: “While part of this differential is the result of currency valuation changes and buoyancy in traded securities markets, it can also be traced to the long-term trend of institutional investors repositioning portfolios so as to seek balanced returns.
“There was also onboarding of new custody mandates on the part of some members evident in the relative movements during the half,” he said.
“Looking ahead to 2022, we expect our members’ focus will centre on the response to changing regulatory data reporting requirements, the evolving role of custodians in supporting institutional involvement in digital assets including cryptocurrencies, and the implementation of the ASX’s DLT-based replacement for CHESS.”
Total Assets Under Custody for Australian Investors (AUD Billion)
|
Rank |
Provider |
30-Jun-21 |
31-Dec-21 |
% change |
|
1 |
J.P. Morgan |
$1,068.3 |
$1,109.9 |
3.9% |
|
2 |
Citigroup |
$673.3 |
$823.1 |
22.2% |
|
3 |
Northern Trust |
$722.0 |
$730.0 |
1.1% |
|
4 |
State Street |
$544.6 |
$580.5 |
6.6% |
|
5 |
NAB Asset Servicing |
$576.8 |
$579.3 |
0.4% |
|
6 |
BNP Paribas |
$509.1 |
$494.5 |
-2.9% |
|
7 |
HSBC Bank |
$216.4 |
$219.7 |
1.5% |
|
8 |
Clearstream |
$84.8 |
$106.5 |
25.6% |
|
9 |
Netwealth |
$47.1 |
$56.6 |
20.2% |
|
10 |
BNY Mellon |
$27.2 |
$30.5 |
12.3% |
|
|
Total |
$4,469.5 |
$4,730.5 |
5.8% |
Source: Australian Custodial Services Association – Industry Statistics December 2021, Table 1
AUTHOR
Laura Dew
Laura Dew is editor at Super Review. Prior to joining SR, she spent five years working at Investment Week in the UK covering asset and wealth management.
Recommended for you
Super funds had a “tremendous month” in November, according to new data.
Australia faces a decade of deficits, with the sum of deficits over the next four years expected to overshoot forecasts by $21.8 billion.
APRA has raised an alarm about gaps in how superannuation trustees are managing the risks associated with unlisted assets, after releasing the findings of its latest review.
Compared to how funds were allocated to March this year, industry super funds have slightly decreased their allocation to infrastructure in the six months to September – dropping from 11 per cent to 10.6 per cent, according to the latest APRA data.
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
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
