GLOBAL & SUB-CUSTODIANS
Global Finance presents its annual sponsored guide to the leading providers in the global and sub-custody market.
BNP Paribas Securities Service
2009: $5.8 trillion
2008: $4.7 trillion
Ratings: Moody’s Aa2, S&P AA, Fitch AA
Client Profile: By location: Our network is one of the most extensive in the industry, covering over 100 markets, with our own offices in 28 countries. We bring together local insight and a global network to enable clients to maximize their market and investment opportunities worldwide. We successfully combine a 24/7 global operating model accessible from any time zone, a multi-domestic presence and one of the industry’s most comprehensive product offerings. Banking licenses around the world and our membership of industry bodies in all locations facilitate our clients’ activities. Our 1,000+ institutional clients come from 53 different countries ranging from Abu Dhabi to Venezuela. By investor type: We support a diverse spectrum of institutional clients including asset managers, pension funds, insurance companies, alternative investment managers, banks, government agencies.
Capabilities/Services: We provide a comprehensive range of services covering the entire investment cycle—from global custody and fund administration to middle- and back-office outsourcing. Our solutions also include a full set of complimentary liquidity services with securities lending, FX and cash services.
Top Emerging Markets: Our award-winning emerging market custody service is continuing to expand, with the opening of local banking operations in India, Singapore, Hong Kong, Morocco and Turkey over the past 24 months.
Business Developments: Our plan to expand our on-the-ground presence in the Asia-Pacific region and other significant global markets is key to helping enhance our clients’ performance. As well, we have launched αSuite, our integrated solution to optimize asset managers’ strategies globally, and MasterSuite, our flexible solution for pension fund plans.
Outlook: We continue to invest in our people and technology as well as to globalize our European success.
Contact: Margaret Harwood-Jones
Tel: +44 207 410 3989
2009: $22.3 trillion
2008: $20.2 trillion
Ratings: Moody’s Aa2, S&P AA-, Fitch AA-
Client Profile: Assets under custody and administration as of December 31, 2009, consisted of assets related to custody, mutual fund and corporate trust businesses of $18.3 trillion, broker/dealer service assets of $2.6 trillion and all other assets of $1.4 trillion. Foreign: BNY Mellon services $8.8 trillion cross-border assets.
Capabilities/Services: BNY Mellon offers clients world-class products, technology and service to help enhance the management, administration and oversight of their investment process. As one of the world’s leading securities servicers, with more than $22 trillion in assets serviced, we combine unrivaled client service with technology that delivers rich client data in user-friendly systems. We are dedicated to providing innovative solutions with the highest-quality client service. Our products and services include accounting services, cash management, custody services, data warehouse solutions, foreign exchange, fund services, hedge fund administration, outsourcing services, pension plan services, performance and risk analytics, securities clearance and collateral management, securities lending, and technology solutions.
Top Emerging Markets: Our network extends to over 100 markets worldwide, and we are continually exploring options to further expand into emerging markets for our clients.
Business Developments: On February 2, 2010, BNY Mellon announced that it had reached a definitive agreement to acquire PNC’s Global Investment Servicing (GIS) business, a leading provider of custody, fund accounting, transfer agency and outsourcing solutions for fund managers and financial advisers. GIS is based in Wilmington, Delaware, with approximately 4,500 employees in the US and Europe. The acquisition is expected to close in the third quarter of 2010, subject to necessary regulatory approvals.
Outlook: BNY Mellon is committed to investing in core services and developing innovative products to support the unique requirements of our clients. We continue to globally grow our assets under custody and administration by leveraging our strengths and capabilities as the premier global asset servicing provider.
Contact: Ken Roehner
Tel: +1 412 236 3216
Fax: +1 412 236 3119
2009: $12.1 trillion
2008: $10.5 trillion
Ratings: Moody’s A3, S&P A, Fitch A+
Client Profile: By location: The marketplace’s only truly global client base: 50% in EMEA, 30% in North America, 15% in Asia, 5% in Latin America. By investor type: Banks, broker/dealers, investment managers, financial intermediaries, investment banks, insurance companies, managed funds, public and corporate pension funds, governments and agencies. Foreign: 75%. Domestic: 25%.
Capabilities/Services: Citi provides investors and asset managers the simplicity, efficiency and expertise of a single point of contact wherever they trade securities. With the largest proprietary network of sub-custodians, coupled with our award-winning GC services and unrivaled market expertise, Citi is viewed as the world’s custodian. Our common platform gives us the industry’s highest efficiency rates. A modular architecture allows us to assemble tailored solutions to meet our clients’ needs, and a commitment to outstanding service provides a unique client experience.
Top Emerging Markets: Citi is known for its depth of expertise in emerging markets, and our network already covers over 96% of global market capitalization. In 2010 we are looking to expand our network in Africa and the Middle East, where we have seen increasing client interesting in investing.
Business Developments: Our focus is on delivering a superior client experience and improving product efficiency. We also continue to expand our capabilities to support a growing set of asset classes across more geographies. We offer end-to-end solutions for mutual funds and institutional and retail separately managed accounts. Last year we introduced the industry’s first UMH platform for wealth managers and built out complete offerings for hedge funds and private equity firms from middle- through back-office fund accounting, administration, performance measurement, compliance and risk management, custody and securities financing.
Outlook: In 2010 we will continue to invest significant resources to keep at the forefront of the industry and stay current with evolving regulatory/compliance standards around the world. We will raise our already-high efficiency rates, expand our support in emerging markets and further develop our capabilities for alternative investments.
Contact: Richard Ernesti
Tel: +44 7500 5043
2009: $3.7 trillion
2008: $3.0 trillion
Ratings: Moody’s A1, S&P AA-, Fitch AA-
Client Profile: By location: Global; we have clients in more than 40 locations. By investor type: Investment managers, corporations, not-for-profits, insurance, public funds, Taft-Hartley, sovereign wealth funds, central banks and monetary authorities.
Capabilities/Services: Northern Trust offers a full array of asset-servicing products and services including safekeeping, trade processing and settlement, contractual settlement, income collections, tax reclamation, proxy voting, online/Internet reporting, cash management, foreign exchange, securities lending, investment risk and analytical services, cross-border pooling, commission management, transition management, fund accounting/administration, transfer agency, investment operations outsourcing, trade services and trade execution analysis.
Top Emerging Markets: Northern Trust’s network of sub-custodians covers 94 markets in 89 countries.
Business Developments: In 2009 Northern Trust enhanced post-trade processing including reconciliation and confirmation services for over-the-counter (OTC) derivatives through an agreement with Markit, a financial information services company. Northern Trust also added new tools to deliver risk attribution and value-at-risk (VaR) information to clients worldwide. The new tools provide an integrated view of historical risk and performance information for additional interpretation, comparison and perspective, including ex-post calculations, which supplement Northern Trust’s existing ex-ante capabilities. We also enhanced the Easy Event Reporting tool to provide clients with expanded options for monitoring exposure to multiple types of risk, including credit, liquidity, concentration and regulatory risk. In addition, we released a dynamic block, available via Passport® and customized to each client, that increases program transparency to our securities lending program by providing key metrics without the need to run reports.
Outlook: Northern Trust is driven by a culture of collaboration; we continue to partner with our clients, helping them with their day-to-day challenges as well as long-term goals through development of innovative solutions.
Americas: Jon Dunham
Tel: +1 312 444 5428
EMEA: Penelope Biggs
Tel: +44 207 982 2200
Asia-Pacific: Rohan Singh
Tel: +65 6437 6521
SUB - CUSTODIANS
2009: €1.298 trillion
2008: €1.272 trillion
Ratings: Moody’s Aa3, S&P A+, Fitch AA-
Client Profile: By location: Deutsche Bank’s Domestic Custody Services (DCS) provides securities custody, clearing, agency lending and fund services to domestic and foreign institutional investors in more than 30 securities markets globally. As a matter of corporate policy Deutsche Bank does not disclose individual client names. Deutsche Bank services a very diverse cross-border and domestic client base among which are global custodians, investment banks, broker dealers, banks, multinational and local corporates, non-bank financial institutions, asset gatherers, insurance companies, mutual funds, pension funds, hedge funds, ICSDs and private equity firms.
Capabilities/Services: Deutsche Bank provides a full array of securities custody, clearing, agency lending, fund administration, and registrar and transfer agent services as well as transferable custody receipt programs in selected markets.
Business Developments: Deutsche Bank is continually expanding the number of markets it covers. It also plans to expand its coverage for fund services, clearing, transferable custody receipts and other products. In 2009, Deutsche Bank acquired Dresdner Bank’s global agency securities lending business further expanding the range of services provided.
Outlook: Deutsche Bank is a high quality provider of worldwide agent bank services specializing in custody, clearing, agency lending and fund services to demanding domestic and cross-border financial institutions. Its staff are its most important asset and teamwork is critical to its success. The bank focuses on service design and execution. Its aim is to ensure consistent delivery on commitments made and attention to customer interests and needs.
Contact: Michael Gedigk
Tel: +1 212 250 9137
Fax: +1 212 797 0700
2009: 1.8 trillion RMB
2008: 1.1 trillion RMB
Ratings: Moody’s A-, S&P A1
Client Profile: By location: Asia more than 60,000, Europe 9, America 10, Africa 3. By investor type: Main clients include 39 fund management companies, 43 insurance companies, 51 entrusted companies, 60,000 corporate annuities, 13 brokers, 34 QFIIs, 17 QDIIs. Foreign: 34 QFIIs and 11 global custodians. Domestic: Over 60,000 institutions.
Capabilities/Services: Basic services include agent services, account opening, asset safekeeping, transaction settlement, accounting, asset valuation, corporate information, transaction supervision, foreign exchange conversion, earning reception and record retention.
Value-added Services: Performance evaluation, risk management, cash management and customized report forms.
Business Developments: As of the end of 2009, the total scale of assets under the custody of ICBC had reached RMB1.8 trillion, an increase of 58% compared with the same time period of 2008. ICBC unquestionably ranked number one in the Chinese mainland market and has maintained the absolute leading position in securities investment fund custody, corporate pension fund custody, QFII asset custody, QDII asset custody, credit plan custody and management of assets of specific clients of fund management companies.
Outlook: ICBC will vigorously develop the custody services of mutual funds, insurance assets, entrusted assets, segregated accounts as well as the global asset custody services. ICBC will further enhance its combined marketing, promote product innovation and expedite the growth of management expertise in order to consolidate its leading position among domestic custodian banks, to build a primary brand and to establish a major custodian bank in Asia as well as globally.
Contact: Cui Yan
Tel: +86 106 610 5759
Fax: +86 106 610 5753
2009: $250 billion
Ratings: Moody’s Aa3, Fitch BBB+
Client Profile: By location: Split between South Africa, sub-Saharan Africa, Europe and the Americas. By investor type: Asset managers 11.14%, domestic and international brokers 7.83%, corporates 21.08%, global custodians and foreign banks 25%, pension funds 10.24%, collective investment schemes 8.43%, other 16.27%.
Capabilities/Services: Settlement and safekeeping services for local equities, bonds and money market instruments, monitoring of corporate actions, securities lending, futures clearing, trustee services, investment administration including investment accounting, compliance monitoring and performance measurement, regional custody network service capabilities in 12 sub-Saharan African markets, American Depository Receipts (ADRs), Argentinean custody.
Top Emerging Markets: Through the banking subsidiaries of the group (Stanbic/Standard Bank entities) Standard Bank has custody capabilities in the following 12 sub-Saharan markets: South Africa, Nigeria, Kenya, Zambia, Ghana, Swaziland, Zimbabwe, Botswana, Namibia, Malawi, Mauritius and Uganda.
Business Developments: Standard Bank will continue to focus on the development of custody capabilities in new markets and the development of new products, as well as extending existing product capability to new markets.
Outlook: Given the ever-increasing focus on providing a comprehensive range of products and value-added services with respect to custody, investment administration and securities lending services to both our clients and the Standard Bank Group, we continue to invest heavily in these core business functions to maintain our leadership position in the respective sub-Saharan African markets. We believe in the importance of being represented by employees based in the markets we serve, as a local presence facilitates closer and more trusted relationships with clients, superior knowledge of local commercial and regulatory environments and the ability to originate deals at source. In addition to the significant in-country talent base, Standard Bank deploys key skills across its operations to ensure that our clients receive excellent service.
Contact: Adam Bateman
Tel: +27 21 401 2321
Fax: +27 11 631 0634
2009: €97 billion
2008: €80 billion
Ratings: Moody’s Aa3, S&P A, Fitch A
Client Profile: By location: Global. By investor type: Global custodians.
Top Emerging Markets: Bosnia, Bulgaria, Croatia, Czech Republic, Hungary, Kazakhstan, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine.
Business Developments: IT investment (network business processing solutions), network management (consolidation of outbound providers).
Outlook: Increased focus on asset servicing ensures that UniCredit GSS (Global Securities Services) remains the number-one provider of securities services in the CEE region. Further concentration on domestic business and increased investment in IT will secure continued growth.
Contact: Sven Trahan
Tel: +43 5 05 05 57311
Fax: +43 5 05 05 58597