Assets under custody ranking tables
DATA ON ASSETS UNDER CUSTODY
Since 1999, we have been sizing the custody market. We present a primary 'assets under custody' table, ranking custodians by the size of their client assets. To view a table extract, select from the menu items. Our lead table depicts each custodian's headline figure. This can be purely assets under custody or can extend to assets under custody and/or administration. In some cases, it can include client assets for other lines of business. For details, please see the next paragraph.
DATA DRILL AND TRENDS
Market share and trend data are available to those analysts who require the use of such data in the course of their work. We also provide a drill-down, subject to availability, of the headline figures reported by custodians. This includes distinction of assets by lines of business and also splits between domestic/cross-border and managed directly/managed as sub-custodian.
DOMESTIC AND CROSS-BORDER CUSTODY ASSETS
Industry practice is to distinguish worldwide custody assets between domestic assets (those held in the home country) and cross-border assets (those held in the rest of the world). We encourage service providers to make this distinction according to the home country of each customer (rather than the country of their head office) as we consider that this paints a more meaningful picture. However, some custodians do not report figures according to this preferred definition.
ASSETS MANAGED AS GLOBAL CUSTODIAN VS. SUB-CUSTODIAN
An aggregate figure for custody assets across a number of providers can involve a degree of double-counting, with some assets being reported by banks acting in the capacity of sub-custodian (for global custodians) and also by the corresponding global custodians. To deal with this, we accommodate analysis to identify those assets managed directly as custodian -- and those held as sub-custodian.
DRIVERS OF GROWTH
Global custodians are entrusted with the safekeeping and processing of huge volumes of securities. Recent years have seen a dramatic growth in the value of assets under custody. This high growth rate is expected to continue, driven by a combination of global trends:
- investors' growing appetite for cross-border assets, for emerging and exotic markets and for a wider range of financial instruments
- investment managers' and banks' increasing use of global custodians to replace their own networks of local custodians
- in many countries, the state retreating from its role of primary pension provider, causing citizens to invest in defined contribution pensions and mutual funds in record numbers - with custody providers serving the pension funds and mutual funds
- growth in the retail brokerage industry driving demand for clearing and custody services.
Since 2004, our sister platform FundServices.net has been sizing the fund administration market. We present a primary table, ranking administrators by the size of their assets under administration. To view a table extract, select from the menu items.