Australian custody market continues to grow
ACSA unveils latest custody and administration statistics
Aassets under custody for Australian investors grew in 2013.
The Australian Custodial Services Association (ACSA) released its half yearly industry statistics showing continued growth in Australia’s custodian and administration sector.
The latest research from ACSA – the peak industry body for Australia’s custody and asset administration sector – revealed total assets under custody for Australian investors grew by 6.7% to $2.16 trillion for the first half of the year to 30 June 2013.
Every major player in the custody market saw an increase in Assets under Custody during the six months, largely driven by a rising global and local market.
Helped by the falling Australian dollar and rising global equity markets, the period also saw continued strong growth for non-Australian assets under custody for Australian investors (up 10.2% to just over $600 billion); with Australian Assets under custody for Australian investors also rising strongly (up 5.5% to $1.56 trillion).
Australian Assets under Custody for foreign clients (sub custody) rose only 0.1%; reflecting slowing foreign appetite for Australian assets as the commodity boom slowed and interest rates were cut to historic lows.
Published biannually, the industry statistics show the size of assets under custody and administration in Australia – largely reflecting Australia’s growing superannuation and institutional investment base. As well as providing insights into settlement transaction volumes, the statistics are a league table of major custody, sub-custody and asset administers in Australia, recording major mandate wins and losses.
A closer look at the numbers
Local player NAB Asset Servicing retained its position as the largest overall player with $556 billion in total assets under custody for Australian investors (up 2.2% for the six months), followed by J.P. Morgan ($394 billion, up 5%) and BNP Paribas ($313 billion, up 5.7%).
Citigroup recorded a 21% increase in total assets under custody to $213 billion, reaching 10% market share
The other big mover over the past six months was Bond Street, with asset growth up 31% to $63.7 billion.
Total local assets held under custody increased by 5.5% over the past six months with NAB Asset Servicing, BNP Paribas and J.P. Morgan the leading holders of Australian assets under custody.
J.P. Morgan remains the largest custodian of non-Australian assets for Australian investors ($137 billion, up 25.8%), followed by State Street ($87 billion, up 2.8%) and Nab Asset Servicing ($86 billion, up 15.8%).
HSBC Bank remains the dominant sub-custodian in Australia with $576 billion in sub-custody assets.
Assets held under administration (not held in custody but administered by custodians) were up 14.5% to $245 billion. BNP Paribas took top spot as the largest administrator in Australia with $407 billion in assets under administration, followed by NAB Asset Servicing ($369 billion) and State Street ($208 billion).
Click here for a copy of the latest ACSA custody industry statistics.
