Assets under custody (AUC) has reached a new record of $4.4 trillion, after a 10.9% increase in the six months to 30 June, 2021.
Robert Brown, outgoing Australian Custodial Services Association (ACSA) chief executive, said the record result occurred on the back of valuation impacts and ongoing confidence in the key services provided by the securities services industry.
“Our members reported a bounce of 19% for assets held offshore for Australian investors, compared to an increase of only 7% for assets held onshore,” Brown said.
“While part of this differential is the result of currency valuation changes, it also reflects the long-term trend of institutional investors seeking returns beyond Australia.”
J.P. Morgan had the most AUC and was the only firm to cross the trillion mark with $1.07 trillion, followed by Northern Trust ($722 billion), Citigroup ($673 billion), NAB Asset Servicing ($577 billion) and State Street ($545 billion).
Total AUC for Australian investors ($b)
Source: ACSA – Industry Statistics, June 2021
Asset servicing providers settled over 14 million trades during the six months to 30 June, 2021, which equated to 110,000 settled trades per day on behalf of clients.
“The new record of assets under custody, as well as significant trade and processing volumes, continue to be seamlessly supported by ACSA members on behalf of clients, and demonstrates continual efforts to improve efficiency across the service chain,” Brown said.
“Efficiency in custody and investment administration has been achieved through the innovation of ACSA member firms, tapping the right technology partnerships, and ongoing collaborative systemic focus on standards and common practice.
“Over time, innovation will continue in support of client's growth, as well as changes to investment mix, including increased appetite for investment into direct assets such as private equity, debt and infrastructure.”