Global Custody Survey 2010

RESULTS
Pictet & Cie has ended RBC Dexia's six-year reign by winning the Global Investor/isf Global Custody survey 2010.

When stability and consistency is valued above all, bigger is not always best.  Pictet & Cie has shown that it can punch above its weight by knocking a larger rival from the top spot.  RBC Dexia Investor Services had enjoyed a six year run in the lead but was beaten into second place by a hair’s breadth.  One respondent highlighted the need for stability: "We always receive a good level of service from Pictet.  We never have any issues.  They provide a consistently good service."

Below are tables depicting the Overall Survey Rankings and the Billionaire's Club (reflecting the views of respondents with USD 1 billion or more of Assets under Management).  For each, there are three tables: the Unweighted results; the Weighted table (which adds greater weight to respondents with more assets under management); and the Footprint (beng the overall unweighted score multiplied by the number of qualified responses).

Year-on-year, the rankings of a few custodians have moved quite significantly.  Brown Brothers Harriman stands out in the Overall Unweighted table.  In the Unweighted tables (both Overall and the Billionaire's Club) BNY Mellon is the biggest climber.

METHODOLOGY
Global Investor's Global Custody Survey measures customer satisfaction by means of questionnaires completed by fund managers with respect to the services of global custodians.

For a response to qualify, the primary business of the respondent must be either asset management, insurance or the management of a pension fund. The respondent must also deal with two or more global custodians. Global Investor magazine has a defined group of readers, fund managers. Fund managers are in the unique position of having regular contact with a wide range of custodians and are best placed to compare their services. Each response is carefully screened to ensure that it meets the set criteria.

In order to qualify for the overall ranking, banks must receive a minimum of 25 qualified responses, of which a minimum of five must be from outside the bank’s domestic market. For the purposes of the survey, Europe is treated as a single market. This proviso ensures that all qualifiers have a truly global reach and a significant global presence outside their domestic power base.

Ranking methodology entails respondents rating their counterparties out of ten (ten being excellent and one very poor) across 22 separate service categories encompassing securities services and treasury services.

Respondents were also asked to give each service category an importance rating out of 10 (one being totally unimportant and ten being very important). This allows the fund manager to evaluate the custodian according to the services that they find important.

UNWEIGHTED SCORES
The rating and importance scores are multiplied together to produce a category score for each of the services. Each of the service category scores is then averaged, and the average scores are added together and divided by 25 (the number of categories). In order to avoid bias from those respondents who are more diligent, if a respondent neglected the importance component a default average (based on the first 100 qualified responses) is used.

WEIGHTED SCORES
The weighted result allows fund managers with more assets under management to have a greater influence on the rankings. The respondents are split into three categories (as to their assets under management) and the following weightings applied:
0.5 = the smallest 25 percent (representing the fewest assets under management)
1.0 = the middle 50 percent
1.5 = the largest 25 percent

FOOTPRINT SCORES
The footprint score is calculated for each custodian as its total unweighted score multiplied by its number of qualified responses.

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View results text

Overall Survey Rankings: Unweighted OVERALL RANKING OF CLIENT SATISFACTION
2010							Bank	Score
1							Pictet & Cie	34.31
2							RBC Dexia Investor Services	34.14
3							Brown Brothers Harriman	32.31
4							BNY Mellon	31.92
5							Citi	31.82
6							State Street	30.61
7							Northern Trust	30.23
8							J.P. Morgan	29.71
Overall Survey Rankings: Weighted OVERALL RANKING OF CLIENT SATISFACTION
2010							Bank	Score
1							Brown Brothers Harriman	34.11
2							State Street	33.93
3							BNY Mellon	33.35
4							Pictet & Cie	32.94
5							Northern Trust	32.85
6							J.P. Morgan	32.64
7							Citi	32.00
8							RBC Dexia Investor Services	30.41
Overall Survey Rankings: Footprint OVERALL RANKING OF CLIENT SATISFACTION
2010							Bank	Score
1							BNY Mellon	2840.88
2							Citi	2800.06
3							State Street	2540.37
4							J.P. Morgan	2257.89
5							Northern Trust	1572.16
6							Brown Brothers Harriman	1163.29
7							RBC Dexia Investor Services	1092.50
8							Pictet & Cie	857.79
Billionaire's Club: Unweighted RANKING BY RESPONDENTS WITH USD 1 BILLION AUM
2010							Bank	Score
1							Pictet & Cie	34.07
2							RBC Dexia Investor Services	33.23
3							BNY Mellon	31.78
4							Citi	31.77
5							Brown Brothers Harriman	31.62
6							State Street	31.04
7							Northern Trust	30.17
8							J.P. Morgan	29.67
9							BNP Paribas	29.49
10							HSBC Securities Services	28.63
Billionaire's Club: Weighted RANKING BY RESPONDENTS WITH USD 1 BILLION AUM
2010							Bank	Score
1							Pictet & Cie	38.80
2							Brown Brothers Harriman	38.39
3							State Street	37.00
4							BNY Mellon	36.72
5							Citi	35.52
6							J.P. Morgan	35.28
7							RBC Dexia Investor Services	34.67
8							Northern Trust	33.86
9							HSBC Securities Services	32.61
10							BNP Paribas	32.44
Billionaire's Club: Footprint RANKING BY RESPONDENTS WITH USD 1 BILLION AUM
2010							Bank	Score
1							BNY Mellon	2351.90
2							Citi	2287.37
3							State Street	2266.28
4							J.P. Morgan	1957.94
5							Northern Trust	1478.20
6							Brown Brothers Harriman	885.30
7							RBC Dexia Investor Services	764.29
8							BNP Paribas	737.22
9							Pictet & Cie	613.21
10							HSBC Securities Services	515.41