BUYER'S GUIDE: CUSTODY & INVESTORS' SERVICES
Global Finance presents its annual sponsored guide to the leading providers in the custody and investors' services market.
BNP Paribas Securities Services
2010: $6,205 billion
2009: $5,793 billion
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 32 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 licences around the world and our membership of industry bodies in all locations facilitate our clients’ activities. Our 1,000-plus institutional clients come from 53 different countries ranging from Abu Dhabi to Venezuela. By investor type: Our clients include asset managers, alternative investment managers, pension funds, insurance companies, sovereign wealth and government agencies, and banks. We provide our clients with a comprehensive set of post-trade solutions.
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 include securities lending, FX, cash and banking, trade execution and collateral management.
Top Emerging Markets: Our award winning emerging market custody service continues to expand with the ongoing development of local banking operations in a number of emerging markets, including India, Morocco, Turkey and Brazil.
Business Developments: We continue to expand geographically: through the extension of our on-the-ground presence across Asia-Pacific; and through our ongoing commitment to other significant international markets—being those that are important to enhance our clients’ performance. We increase the focus on our clients: by deploying globally led strategies and resources; and by the launch of integrated packaged solutions, such as a-Suite for Asset Managers and MasterSuite for Asset Owners, in order to support client requirements across the entire service spectrum.
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
2010: $25 trillion
2009: $22.3 trillion
Ratings: Moody’s Aa2, S&P AA-, Fitch AA-
Client Profile: By investor type: Assets under custody and administration at December 31, 2010 consisted of assets related to custody, mutual funds, and corporate trust businesses of $20.1 trillion, broker-dealer services assets of $3.2 trillion and all other assets of $1.7 trillion.
Foreign: BNY Mellon services $9.2 trillion in 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 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 advertising review solutions, benefit disbursements, complex fund solutions, custody & accounting, derivatives services, document solutions, ETF services, fund services, information delivery, outsourcing services, performance & risk analytics, securities lending, subaccounting, technology solutions and transfer agency.
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: In 2010, BNY Mellon Asset Servicing completed two major acquisitions. In February, it acquired PNC’s Global Investment Servicing Business. The acquisition creates the number-two provider of fund accounting, administration & transfer agency services to fund managers globally, expands industry-leading securities servicing & alternative investment services businesses worldwide, enhances our managed account platform, performance reporting capabilities and business intelligence tools for Pershing’s broker-dealer and advisory business, and delivers shareholder value—immediately accretive to GAAP EPS with attractive IRR. In August, BNY Mellon completed the acquisition of BHF Asset Servicing GmbH. The combined German business has €569 billion ($744 billion) in assets under custody and administration and depotbanking volumes of €122 billion ($159 billion). It expands BNY Mellon’s existing capabilities to include German domestic custody and KAG fund administration.
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: William Salus
Telephone: +1 302 791 2525
Fax: +1 302 791 1570
2010: $12.6 trillion
2009: $12.1 trillion
Ratings: Moody’s A3, S&P A, Fitch A+
Client Profile: By location: A truly global client base with 50% of our clients based in EMEA, 30% North America, 20% Asia and Latin America. By investor type: We help banks, traditional and alternative investment managers, insurance companies, public and corporate pensions and governmental agencies.
Foreign: A true cross-border custodian with 75% foreign assets.
Capabilities/Services: With the largest proprietary network of sub-custodians, our award-winning global custodian services, coupled with 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 the right solution for our clients, 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. In 2011 we are looking to expand our network in Africa.
Business Developments: Our focus is on delivering a superior client experience, improving efficiency and expanding our capabilities to support a growing set of asset classes across more geographies than anyone else.
Outlook: In 2011 we will continue to invest significant resources to raise our already-high efficiency rates and stay ahead of regulatory requirements while supporting ever more asset classes.
Contact: Richard Ernesti
Tel: +44 207 500 5043
Marfin Popular Bank
Ratings: Moody’s: Baa2, Fitch BBB
Client Profile: By location: Marfin Popular Bank offers a comprehensive range of custody services for both the local and the international markets. We cooperate with reputable foreign organizations, covering over 100 markets, including the core markets in Europe, Asia and the Middle East. By combining the provision of custody services for the Cyprus market and the foreign markets we enable clients to expand their investment opportunities worldwide. We provide custody services not only to Cyprus clients but also to clients located in other European Union countries, Russia, Israel, Romania, Ukraine and elsewhere. By investor type: Our services are offered to private and institutional clients, including provident funds, insurance companies, international collective investment schemes, asset managers, etc. In addition, our services are offered to foreign banks that wish to appoint Marfin Popular Bank as their sub-custodian in the Cyprus market.
Capabilities/Services: Marfin Popular Bank is one of the few custodians in Cyprus providing a wide range of traditional and specialized custody services, covering all major instruments, including safekeeping of securities (dematerialized and physical titles), settlement of transactions, information and execution of corporate actions, registry services, execution of payments within and outside the bank and specialized services to international collective investment schemes. Custody services fall under the umbrella of our range of wealth management services. Apart from our direct institutional clients and our external individual clients, our private banking clients are offered the highest levels of custody services to complement the range of the exclusive investment services and high-level traditional banking services offered.
Business Developments: Client service and relationship management are the most important factors affecting the success of our business. Accordingly, we place great emphasis on continuously improving in these areas. Our goal is not only to satisfy clients’ needs, but also to exceed clients’ requirements and expectations.
Our infrastructure is upgraded on a frequent basis in order to meet all market changes and to provide core and value-added services to our clients. We will also continue our effort to expand our services in order to deal with clients’ more complex demands, expand the number of markets offered and enhance our fund custody and administration services.
Outlook: With regards to custody services, clients should expect ongoing commitment to the business and exceptional service quality. Moving forward, in terms of product innovation, we will continue to develop our business to satisfy more complex investment vehicles and structures. We will continue to invest in our personnel on a systematic basis internally and externally, so that they continually improve their skills and expertise.
Contact: Elena Melanthiou
Tel: +357 22 812 280, +357 22 812 127
Fax: +357 22 812 130
2010: €176 billion
2009: €97 billion
Ratings: Moody’s Aa3, S&P A, Fitch A
Global Custody Clients: 200-plus foreign institutional clients.
Profile of Other Clients: Broker dealers, pension funds and insurance companies.
Capabilities/Services: Sub-custody and clearing services, fund administration.
Countries Served: Austria, Bosnia, Bulgaria, Croatia, Czech Republic, Hungary, Kazakhstan, Poland, Romania, Russia, Serbia, Slovakia, Slovenia and Ukraine.
Business and Product Developments: IT investments, network management (consolidation of outbound providers), and market expansions.
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 58579
2010: Over $1 trillion
2009: Over $1 trillion
Ratings: Moody’s Aa2, S&P AA, Fitch AA-
Client Profile: By location: The majority of our clients are based in the US and Canada. We also have clients domiciled in Ireland and the UK. Our global custody clients are currently invested in 41 countries with plans for entering additional markets as client need dictates. We have access to 100+ markets.
By investor type: Fund managers, full range of employee benefits arrangements and custodial safekeeping for corporations, insurance companies, health care institutions, and not-for-profit organizations, foundations, endowments, public/government agencies, Taft-Hartley plans, partnerships, and foreign entities.
Capabilities/Services: Wells Fargo provides global and domestic custody, comprehensive securities processing, SWIFT capabilities (ISO 15022), benefit payments, cash movement, foreign exchange, commission recapture, asset allocation overlays, portfolio liquidation, comprehensive financial reporting, investment performance and portfolio analytics, investment guideline monitoring, and treasury services. Through our award-winning Commercial Electronic Office (CEO) portal, we help our clients simplify the way they do business by offering a full suite of financial services online. Over 60 products and services are available through the CEO portal, including trust and custody, treasury, credit, international, investing and purchasing. CEO users can easily move from one task to another in a seamlessly integrated and secure environment. We further offer clients investment management, retirement and welfare benefit plans, actuarial services, executive benefits and complete benefits consulting solutions.
Top Markets: Argentina, Australia, Austria, Belgium, Brazil, Canada, Croatia, Cyprus, Denmark, Egypt, Finland, France, Germany, Greece, Hong Kong, Hungary, Indonesia, Ireland, Israel, Italy, Japan, Korea, Malaysia, Mexico, Netherland, New Zealand, Norway, Philippines, Poland, Portugal, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Kingdom.
Business Developments: We continue to invest in our ISO 15022 STP platform. Areas of focus have been foreign exchange and MT5XX series messages to maximize STP efficiencies and minimize risk. Future enhancement would adhere to these goals as well.
Outlook: Wells Fargo is a diversified financial services company and one of the most respected and highly recognized companies in the US. Our diversity of business lines makes us much more than a bank. Investment-related businesses are a key element of this diversity strategy. In fact, growing investments, trust, brokerage, private banking and insurance is among Wells Fargo’s top strategic initiatives. Wells Fargo is an experienced partner that works with clients to simplify their business life and provide financial and fiduciary peace of mind. The Wells Fargo Strategic Relationship Management program is a disciplined, proactive and consultative approach to serving our clients. Our goal is to give our clients increased access to Wells Fargo’s resources and access to a range of expertise—from investment and product technical specialists to benefits consultants. Our team becomes the client’s trusted partner.
Contact: Cecilia Glenn
Tel: +1 612 667 9371
Fax: +1 612 316 1122