The range of services on offer continues to grow, reflecting the growing reliance on custodians by international corporations and financial institutions. As a spokesperson for JPMorgan’s custody team explains: “The custody industry has grown from its original purpose as a provider of core securities movement and
control functions to a pivotal partnership role as a global investment administrator.”
Banco Itaú’s Luiz Eduardo Zago
2003: $9.7 billion
2002: $5.3 billion
Ratings: Moody’s Aaa.br; S&P brAA; Fitch AA.
Client Profile: By location: Brazil (mainly), US, Luxembourg, Portugal and Uruguay. By investor type: banks/assets 38%; pension funds 36%; others 26%. Foreign 24%; domestic 76%.
Capabilities/Services: Back-office services for brokerage houses, pension funds retirement services. Custody, securities settlement, safekeeping, corporate action control, NAV calculation and legal accounting.
Top Emerging Market: Brazil.
Outlook: Enhance and develop new product and services offering for asset management companies, banks, corporation and pension fund companies.
Contact: Luiz Eduardo Zago
Tel: +55 11 5029-1518
Fax: +55 11 5029-1260
2003: E5.2 billion
2002: E3.8 billion
Ratings: Moody’s A3; S&P BB; Fitch 3.
Client Profile: A wide range of custody, fund administration and transfer agent services. Custody services include safekeeping of assets, settlement and clearing of transactions, corporate actions, proxy voting. Value-added services include cash management, FX, overdraft facility, fast and reliable market information, escrow account arrangements and assistance with tax issues.
Top Emerging Markets:
Poland, Hungary, Czech Republic, Russia, Ukraine.
Tel: +48 22 598 1686
Fax: +48 22 598 1683
BBH’s Susan Livingston
2003: $900 billion
2002: $800 billion
Ratings: Fitch A+.
Client Profile: By location: Americas 40%; Europe 47%; Asia-Pacific 13%. By investor type: investment managers 52%; banks 39%; insurance 2%; other 7%.
Capabilities/Services: Global custody, US and UK direct custody, fund administration, fund accounting, securities lending, foreign exchange, ‘Infomediary’ communications solutions, brokerage, investment management, commercial banking and corporate finance.
Business Developments: BBH launched direct UK custody services in 2003. Our Infomediary communications platform, fund accounting and administration, FX and brokerage services are receiving substantial interest from firms seeking a competitive advantage in middle- and back-office operations.
Outlook: BBH’s innovative solutions will augment the breadth and depth of our ability to partner with clients.
Contact: Tel: 617 742 1818
Timothy J. Connelly
Asia-Pacific & Offshore::
Susan C. Livingston
Europe: Andrew J.F. Tucker
Schleimer: The Clean Air Act could be used to regulate greenhouse gases
2003: E39.9 billion
2002: E32.6 billion
Ratings: Moody’s A1; S&P A-; Fitch A+.
Client Profile: By location: Europe and US. By investor type: global and regional custodians.
Capabilities/Services: BCP offers a comprehensive range of products and services such as local custody, safekeeping, settlement, corporate actions, client reporting, trading and Euronext clearing services, related services (paying agent, cash management), securities lending; custody newsletter via Web, cash forecast and warrant agency.
Business Developments: Our focus throughout the year was to continue to improve the level of service and build solutions to increase the efficiency of our clients. During 1st quarter 2004 we will be offering an Internet tool. We’ll be enhancing our securities lending program by the end of the year, enclosing cash statistics in MIS reports and providing tailor-made performance reports.
Outlook: We aim to continuously improve the level and range of services we provide as well as the level of automation. Portugal will also integrate the settlement connect facility of Euronext, which is predicted to occur by mid-2004.
Contact: Nuno Coelho
Tel: +351 21 422 4328
Fax: +351 21 4224298
Schleimer: The Clean Air Act could be used to regulate greenhouse gases
2003: $6.8 trillion
2002: $5.1 trillion
Ratings: Moody’s Aa1; S&P AA-; Fitch AA+.
Client Profile: By location: North America, Europe, Middle East & Africa (EMEA), Asia, Japan and Latin America. By investor type: fund managers, pension funds, insurance companies, corporates, banks and broker dealers. Foreign 60%; domestic 40%.
Capabilities/Services: Integrated securities services, cash management, trade and fund services solutions. Services include custody and settlement, fund administration and accounting, servicing of alternative investments, outsourcing and advisory services, securities finance, compliance monitoring, performance measurement and transfer agency.
Top Emerging Markets: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Morocco, Pakistan, Philippines, Poland, Russia, Sri Lanka, Taiwan, Thailand, Turkey and Venezuela.
Business Developments: The acquisition of Forum Financial Group in December 2003 has expanded our capabilities and solutions set.
Outlook: In 2004 we will focus on broadening our service in the US market.
Contact: Thomas F. D’Andrea
Tel: 212 816 6821
Fax: 212 816 6979
Fortis’s Fred N.
2003: E450 billion
2002: E450 billion
Ratings: Moody’s Aa3; S&P AA-; Fitch AA-.
Client Profile: By location: Europe 80%; North America 8%; other 12%. By investor type: pension funds 60%; banks 30%; other 10%. Foreign 35%; domestic 65%.
Capabilities/Services: Fortis Bank ‘Information Banking’ includes support for the entire pre-trade, trade and post-trade activities. We offer international securities transactions and portfolios processing and management. In addition, Information Banking clears and finances hedged transactions in international derivatives, both for proprietary trading houses and institutional clients globally.
Top Emerging Markets: Austria, Slovakia, Hungary, Czech Republic, Estonia, Russia, Argentina, Brazil, Mexico, Greece, India, Israel, Morocco, Indonesia, South Korea, Taiwan, Philippines, Egypt, China.
Business Developments: We have introduced electronic filing of tax reclaims, which will improve the reclaim period for standard tax reclaims. We have just launched a Corporate Actions tool, called GCA Web. This tool is linked to Fortis Bank’s Global Corporate Actions system. It enables clients to instruct and validate corporate actions, to monitor the processing and to check historical data.
Outlook: The key issue facing custody operations is to improve current value-added services and to develop new ones and to focus on the flexibility and level of automation of our services.
Contact: Fred N. Dellemijn
Tel: +31 20 527 1543
Fax: + 31 20 527 4994
2003: E300 billion
2002: E285 billion
Ratings: Moody’s Aa3; S&P A+; Fitch AA-.
Capabilities/Services: Depository, custody, clearing, settlement and securities lending services, for investors and custodians as well as issuing corporations.
Contact: Jose R. Urrestarazu
Tel: 212 350 3902
Fax: 212 407 4580
2003: £840 billion
2002: £723 billion
Ratings: Long-term senior debt: Moody’s Aa2; S&P AA; Fitch AA.
Client Profile: By location: Africa 1%; Europe 17%; Middle East 3%; North America 5%; South America 1%;Far East & Australasia 9%; UK 64%. By investor type: banks 36%; fund managers 24%; insurance companies 8%; pension funds 7%; other 25%.
Capabilities/Services: Custody: safekeeping, settlement, tax, income processing, corporate actions
trustee and depository.
Top Emerging Markets: By client activity: Greece, India, Malaysia, Korea, South Africa, Taiwan, Thailand, Mexico and Russia.
Business Developments: Continued trend to process automation in securities and to offshore processing. Increased servicing of alternative investment funds and performance measurement.
Outlook: Increased securities consolidation of European business as the Giovannini 2 barriers are dismantled. Increased regulation of financial services activity. Businesses positioning themselves against any downturn in market trends or activity, in an environment of rising short-term interest rates.
Contact: Paul Stillabower
Tel: + 44 207 260 8083
Fax: + 44 207 260 5336
2003: More than $1 trillion
2002: $785 billion
Ratings: 2004 counterparty ratings: Moody’s A2; S&P A; Fitch A.
Client Profile: By location: US 78%, Europe 22%. By investor type: mutual fund complexes, insurance companies, banks, limited partnerships, endowments, foundations, employee benefit plans, public funds, unit investment trust sponsors and independent investment advisors. Foreign 18%; domestic 82%.
Capabilities/Services: Include global custody, multi-currency fund accounting, fund administration, transfer agency, trade operations management, middle- and back-office outsourcing, investment adviser custody services, trustee services, master trust accounting and securities lending.
Top Emerging Markets: Significant increases in Korea, South Africa, Taiwan, Brazil and Greece. Increases in Chile, Egypt, Estonia, India, Russia, Thailand and Turkey.
Business Developments: 2003 corporate growth exceeded 30%, enhancing internet offerings, expanding back- and middle-office outsourcing capabilities, implemented second major middle-office outsourcing client. Middle-office services now support over $550 billion in assets.
Outlook: Focus will be on risk management, client service, enhancing middle- and back-office outsourcing and continued outsourcing implementations in North America and Europe.
Contact: Rob Mancuso
Tel: 617 937 6226
Fax: 617 937 6033
2003: E10.1 billion
2002: E10.3 billion
Ratings: Moody’s B3; S&P B+; Fitch B+.
Client Profile: By location: domestic 95%; Europe 5%. By investor type: mutual funds, global custodians, banks and retail clients.
Capabilities/Services: Local custody, securities settlement, real-time reporting, safekeeping, corporate action processing, proxy voting, fund administration and accounting, treasury and foreign exchange services and legal bookkeeping.
Business Developments: Full interconnection with the CSD is being established. Preparation and infrastructure of tax reclamation at source through the CSD is fortified. Dropping of six zeros from the Turkish lira is to be effective on January 1, 2005. Central Registration Office is making necessary arrangements for becoming operational in the second half of 2004. Isbank is preparing vigorously for the market developments.
Outlook: Isbank’s role as a pioneer and a key player in Turkish capital markets will continue with the bank’s product diversity, competitive pricing policy and its extensive distribution network. It is expected that, with improving stability, foreign portfolio investments will rise, increasing the role of custodians.
Contact: Kaan Tokat
Tel: +90 212 316 3411
Fax: +90 212 316 09 45
2003: $7.6 trillion
2002: $6.3 trillion
Ratings: JPMorgan Chase long-term ratings: Moody’s Aa3; S&P AA-; Fitch AA-.
Client Profile: By location: Asia Pacific 2.9%; Australia 1.5%; Central and South America 1.2%; Europe (ex. UK) 6.2%; North America 72.7%; other 1.5%; UK 14.1%. By investor type: bank 13.8%; broker-dealer 14.6%; corporate custody 3.1%; corporate pension 9.4%; endow./found./ union 0.2%; insurance 19.2%; investment managers 14.2%; mutual fund 15.2%; other 4.9%; public/government agency 4.9%; unit investment trust 0.2%; unit trust 0.4%. Foreign: $1.8 trillion in client assets invested outside the clients’ country of domicile; domestic: $5.8 trillion in client assets invested in the clients’ country of domicile.
Capabilities/Services: Customized business solutions that optimize efficiency, enhance revenues and mitigate the risks associated with global investing.
Top Emerging Markets: Increased interest in India and Taiwan, China, Russia and Eastern Europe, former Soviet-bloc countries and the Middle East.
Business Developments: Development of Transition Management service that provides comprehensive restructuring services to help institutional investors minimize the costs and risks of changing portfolios.
Outlook: Fund managers now look to their custodians for solutions to complex investment structures and strategies. Investors are not looking for products. They are looking for answers.
Contact: Christopher Lynch
Tel: 718 242 7555
Fax: 718 242 6700
Kas Bank’s Laurens Vis
2003: $246 billion
2002: $223 billion
Ratings: S&P short term A-1, long term A.
Client Profile: By location: Europe 95%; North-America 5%. By investor type: (corporate) pension fund 32%; life insurance 8%; bank & broker/dealer 44%; investment fund 16%. Foreign 28%; domestic 72%.
Capabilities/Services: Custody includes tax reclamation, proxy voting, regulatory reporting; risk mitigating services include risk management (ex ante/ex post), compliance monitoring and currency hedging. We supply performance management and trade analysis, fund accounting and administration as well as administration of defined-contribution schemes.
Top Emerging Markets: Added Romania, Slovenia, Lithuania and Iceland. We shall add India, Malta and Cyprus.
Business Developments: In 2003 Kas Bank connected directly to the financial and securities infrastructures in Switzerland and Germany. Our single operational platform now covers the major European markets.
Outlook: Full dedication to providing client-specific solutions will be key.
Contact: Laurens Vis
Tel: + 31 20 557 5534
Fax: +31 20 622 6402
Mellon’s James J.
2003: $3.5 trillion
2002: $2.9 trillion
Ratings: Mellon Financial Corporation: Moody’s Aa3; S&P AA-; Fitch AA
Client Profile: Mellon Global Securities Services: insurance 7%; investment managers 4%; mutual funds 7%; endowments/foundations 4%; other 14%; assets under management 19%; joint ventures 22%. CIBC Mellon: pensions 27%; banks/brokers 9%; insurance 6%; mutual/pooled funds 41%; governments 2%; corporate/ other 14%. ABN AMRO Mellon: pension funds 51%; banks 17%; insurance 14%; investment managers 11%; foundations 3%; investment funds 4%.
Capabilities/Services: Premium worldwide trust, custody and value-added services for the institutional marketplace. Value-added services include custody, trust, global securities settlement, entitlement, corporate action processing, multi-currency accounting and reporting, benefit disbursement services, ERISA reporting, regulatory reporting, managed accounts outsourcing, back-office outsourcing and mutual fund administration.
Top Emerging Markets: The Mellon Group recently added Bulgaria to our network.
Business Developments: Focus on product development and value-added services such as commission recapture and transition management.
Outlook: Invest in core services; new and enhanced products; expanding distribution; Internet capabilities; expansion in outsourcing client base; and leverage our Eagle technology.
Contact: Mellon Global
James J. Flannery
Tel: 800 597 1459
Fax: 215 553 1808
Tel: 416 643 5300
Fax: 416 643 6360
ABN AMRO Mellon:
Tel: +31 20 628 13 58
Fax: +31 20 628 23 63
2003: $2.2 trillion
2002: $1.5 trillion
Ratings: Moody’s Aa3; S&P AA-; Fitch AA.
Client Profile: By location: clients are domiciled in 38 countries. By investor type: pensions 42%; government/central banks: 32%; foundations/endowments 9%; funds 9%; insurance 8%. Foreign (non-US) approximately 35%; domestic 65%.
Capabilities/Services: Include safekeeping and settlement in 94 countries, income collection, contractual settlement and income policies, tax reclamation, cash management, corporate actions, proxy voting, foreign exchange, securities lending, commission recapture, trade execution analysis and consolidated online/Internet reporting.
Top Emerging Markets: South Korea, Taiwan, South Africa, Mexico, Thailand, Malaysia, Indonesia and Brazil.
Business Developments: Enhancements to our Internet capabilities, expansion of local servicing, continuing initiatives for information delivery, straight-through processing, risk management, performance measurement analytics and component outsourcing solutions.
Outlook: Continued interest in back-office servicing, front-office technology tools for pre-trade compliance and portfolio modeling. Continuing development of multinational pension fund pooling, data management, automation and STP.
Contact: Penelope Biggs
Tel: +44 207 982 2200
Fax: +44 207 982 2235
2003: $400.5 billion
2002: $336.0 billion
Ratings: Moody’s A2; S&P A; Fitch A.
Client Profile: By location: Americas 95%; Europe and Asia 5%. By investor type: 1940 act mutual funds 84%; alternative investments 3%; international 6%; institutional 7%.
Capabilities/Services: Services include global custody, fund accounting and administration, global securities lending, transition management, 24-hour foreign exchange trading, and cash and treasury management.
Top Emerging Markets: Brazil, India, South Korea, Mexico and Taiwan.
Business Developments: Strategic development of our Global Enterprise Platform, our open, flexible technology architecture, to provide further integration across various products while expanding Web-based information delivery solutions through our data repository and analytics suite.
Outlook: Expansion into other institutional custody products and segments. Continued emphasis given to operational enhancements including straight-through processing, expanded SWIFT utilization, and corporate actions.
Contact: Matt Caulfield
Tel: 302 791 2000
RZB’s Harald Riedler
2003: E128.4 billion
2002: E90.7 billion
Ratings: Moody’s A1; S&P (short term) A1.
Capabilities/Services: Regional custody for Austria and the CEE markets as well as local custody in Austria. RZB clients can cover up to 16 markets, most of them covered by our own subsidiaries.
Top Emerging Markets: Czech Republic, Romania, Slovakia, Bulgaria, Hungary, Russia, Ukraine, Croatia, Poland and Serbia. Our regional custody product covers the Baltic states, Kazakhstan and Slovenia.
Business Developments: Corporate action notification tool (CAN), which allows us to be very flexible and fast in the notification of our clients regarding corporate actions. Our internal benchmark is to deliver all respective information within 15 minutes.
Outlook: We are continuously analyzing new markets. Several product/service enhancements are planned for 2004.
Contact: Harald Riedler
Tel: +43 1 717 07 1820
Fax: +43 1 717 07 1864
2003: $1.2 trillion
(January 31, 2004)
2002: $939 billion
(January 31, 2003)
Ratings: Moody’s Aa2; S&P AA-; Fitch AA.
Client Profile: By location: North America 79%; Europe 10%; other 11%. By investor type: global money managers 45%; pensions 24%; financial institutions 16%; insurance 14%; other 1%. Foreign 59%; domestic 41%.
Capabilities/Services: Services include global custody; fund administration; securities lending and finance; tri-party repurchase; treasury and foreign exchange services; cash management; portfolio analytics; risk management; transition management; commission recapture; benefit payments; Canadian subcustody and correspondent banking.
Top Emerging Markets: Thailand, Taiwan, Indonesia, Brazil and Mexico
Business Developments: Launched electronic securities trading platform; introduced Benchmark Risk Measurement service and expanded Benchmark investment analytics services to include the UK, Europe and the Middle East.
Outlook: RBC Global Services will continue to provide solutions that enhance our clients’ competitiveness.
Contact: Tony Johnson
Tel: +44 207 653 4096 Fax: +44 207 248 3946
State Street’s Drew Pace
2003: $9.4 trillion
2002: $6.2 trillion
Ratings: Moody’s Aa3; S&P AA-; Fitch AA.
Client Profile: By location: North America 83%; Europe 14%; Asia/Pacific 3%. By investor type: mutual funds or investment/asset managers 53%; pensions/endowments and foundations/other nonprofits 28%; insurance 9%; other 10%. Foreign 17%; domestic 83%.
Capabilities/Services: Services include global custody, multi-currency fund accounting and administration, daily pricing, brokerage and transition management, investment management, multi-asset-class trading and research, cash management, securities lending, performance measurement and analytics and investment operations services.
Top Emerging Markets: Korea, Taiwan, India, Brazil and Turkey.
Business Developments: Completed acquisition of Deutsche Bank’s global securities services business; launched the State Street Investor Confidence Index, and expanded data warehouse capabilities.
Outlook: Enhance services for hedge funds/alternative assets; broaden solutions for
risk management and compliance; support trend toward middle- and back-office outsourcing, both in the US and abroad; continue expansion of wealth manager services.
Contact: Drew Pace
Tel: 617 985 7506
Fax: 617 985 2733
2003: $70 billion
2002: $70 billion
Client Profile: By location: Europe 90%; Asia 5%; other 5%. By investor type: foreign banks 80%; broker/ dealers 10%; other 10%. Foreign 95%; domestic 2.5%; other 2.5%.
Capabilities/Services: SASI is a niche player catering to small and mid-size global financial institutions such as private banks, universal banks, broker dealers and other financial institutions. With a focus on straight- through processing (STP) and personalized service, we offer an end-to-end cross-border broker-custody solution. Products and services include international brokerage (US and major international stock markets), execution in equities, fixed income, options and futures, cross-border settlement and custody services and proprietary straight-through order entry solutions, including Web services and order entry. Our ongoing e-business initiatives focus on connecting global clients to SASI’s execution and custody network as well as to international exchanges.
Top Emerging Markets: Markets include the Caribbean and off-shore regions, Eastern Europe, Scandinavia, Turkey, Middle East and less common parts of Asia.
Business Developments: Major systems developments/enhancements include expanding our online capabilities, further streamlining messaging and messaging translation to support maximum rates of STP, exploring the possibility of a peer-to-peer network, refining our settlement offerings for futures, fixed income, hedge funds and international mutual funds, and improving our custodial network to expand to additional markets.
Outlook: SASI’s ongoing focus will be on growing our product line in international mutual fund, futures and options. We will continue to focus on STP-driven solutions.
Contact: Zarah Cabigting
Tel: 212 612 8913
Fax: 212 612 8885
The Bank of New York
2003: $8.3 trillion
2002: $6.8 trillion
Ratings: Moody’s Aa2; S&P AA-; Fitch AA.
Client Profile: By location: Americas 68%; Europe 26%; Asia/Australia 4%; Middle East/Africa 2%. By investor type: mutual funds/fund managers/uit 29.5%; banks, trust companies, central banks 18.0%; insurance companies 16.5%; government agencies 15.0%; corporate and pension funds, endowment, foundation and Taft-Hartley 16.0%; broker/dealers 5.0%.
Capabilities/Services: Include US and global worldwide custody, foreign exchange, investment/fund accounting, fund administration, securities lending, benefit disbursements, alternative investment services, transfer agency, performance measurement and analytics, investment compliance monitoring, performance consulting, institutional asset management, global portfolio transition, brokerage commission recapture, cash management, and funds transfer, managed account and investment manager outsourcing.
Business Developments: We continue our expansion of global hedge fund services and alternative asset reporting to provide a comprehensive suite of services to investment managers, irrespective of their structure, investment strategy or domicile. The BNY/ING commercial alliance in Germany, Benelux and Central and Eastern Europe is effective in the delivery of more comprehensive service and reporting capabilities to our institutional clients in these regions.
Outlook: We will continue to strengthen client relationships with efficiencies in service delivery. Our regional service hubs in the Americas, Asia, Europe and the UK will provide clients the local support backed by a global perspective and presence.
Contact: Fred Ricciardi
Tel: 212 635 1972
Fax: 212 635 6814
Union Bank of California
2003: $153.6 billion
2002: $140.0 billion
Ratings: Moody’s A1; S&P A-; Fitch A.
Client Profile: By location: Americas 76%; Asia-Pacific 19%; Europe/Middle East/ Africa 3%. By investor type: banks 53%; investment managers 25%; mutual funds 21%; other 1%. Foreign 3%; domestic 97%.
Capabilities/Services: Include fully integrated securities processing and controls for US and foreign markets, with a single point of contact for processing and inquiry needs; flexible information delivery including direct access and electronic delivery from real-time integrated processing and accounting system, supporting US and global processing on a single platform.
Top Emerging Markets: Brazil, Korea, Malaysia, Taiwan, Thailand.
Business Developments: Focus remained on developing partnerships in the regional bank marketplace and in the investment in and expansion of services to the mutual funds industry.
Outlook: Continued commitment to securities processing, securities custody and securities lending. An enhanced Web-based account-access system will be available Q3 2004.
Contact: Kevin Galvin
Tel: 415 291 7675
Fax: 415 291 7405
2003: $887.3 billion
2002: $802 billion
Ratings: Moody’s Aa3; S&P A; Fitch A+
Client Profile: By investor type: corporate 30%; mutual funds 19%; government 15%; insurance 11%; healthcare 7%; endowments/foundations 5%; other 13%. Foreign 4%; domestic 96%.
Capabilities/Services: Domestic and global custody services, safekeeping of securities, trade settlement, income processing, maturities processing, automated cash management, corporate action notification, foreign exchange, proxies, offshore operations, securities lending, performance measurement, investment management, cash and treasury management, commission recapture, full SWIFT capabilities and a Web-based portal for client reporting.
Top Emerging Markets: Latin America, Asia and Europe.
Business Developments: Continuing efforts to provide straight-through processing to all customers, multi-currency and bilingual statements, ongoing focus on securities lending products and services that leverage the acquisition of Metropolitan West Securities, enhanced Internet capabilities with real-time access to vital account information, enhanced reporting features.
Outlook: Market-segment-focused products and services covering financial institutions, public funds, corporations, international and non-profit sectors in conjunction with a full range of securities services including third-party securities lending through MetWest (a wholly owned subsidiary of Wachovia).
Contact: Ed Buenaga