The Australian custodial and administration sector continued its steady growth trajectory in the second half of 2014, with total assets under custody exceeding $2.5 trillion, according to the latest industry statistics released by the Australian Custodial Services Association (ACSA).
In the six months to 31st December 2014, total assets under custody for Australian investors grew 5.0 per cent to $2.58 trillion. Of this amount, $1.79 trillion is Australian assets, with the remainder of $791 billion in foreign assets.
ACSA publishes industry statistics twice a year to provide insights into financial market conditions, asset shifts and major mandate wins and losses.
NAB Asset Servicing remains the largest overall player in the custody market, followed by J.P. Morgan, BNP Paribas and Citigroup.
Total assets under custody (AUC) for Australian investors, 31 December 2014
|
Provider |
AUC ($AUD, billion) |
Change since June 2014 |
|
NAB Asset Servicing |
692.00 |
+2.8% |
|
J.P. Morgan |
478.53 |
+3.2% |
|
BNP Paribas |
325.92 |
+4.5% |
|
Citigroup |
270.98 |
+5.2% |
|
State Street |
211.75 |
– 0.5% |
|
Northern Trust |
198.00 |
+18.5% |
|
HSBC Bank |
154.10 |
+7.9% |
|
BNY Mellon |
95.20 |
-0.4% |
|
RBC Investor Services |
69.49 |
+9.9% |
|
Bond Street |
66.65 |
+1.5% |
|
Ausmaq |
12.65 |
n/a |
|
Netwealth |
6.37 |
+16.9% |
Source: Australian Custodial Services Association
The top five custodians manage 77 per cent of assets under custody, with the remaining share of assets under custody held by Northern Trust, HSBC Bank, Bond Street, RBC Investor Services, BNY Mellon and Netwealth.
Australian assets held under custody for foreign clients (sub-custody) increased 7.0 per cent to $1.11 trillion. HSBC Bank retains its position as the dominant sub-custodian in Australia with $727 billion in Australian assets managed for foreign clients, taking the lion’s share (65%) of Australian sub-custody assets.
J.P. Morgan remains the largest custodian of non-Australian assets for Australian investors ($243.26 billion, up 4.7%), followed by Citigroup ($107.58 billion, up 1.4%), State Street ($105.09 billion, down 1.4%) and NAB Asset Servicing ($105.00 billion, up 19.3%).
