Australian custody assets decline
Netwealth is continuing to climb the custody league tables, according to the latest data released by the Australian Custodial Services Association (ACSA).
The latest data for the six months to 30 June, reveal that platform provider Netwealth ranks ninth out of eleven custodians, ahead of both Apex Group and BNY Mellon.
Importantly, the ACSA data show that assets under custody declined for all the major custodians, and were down by 8.1% overall, reflecting difficult market conditions and some methodology changes.
JP Morgan was once again ranked as the number one custodian in terms of assets under custody, followed by Northern Trust, Citigroup, State Street, NAB Asset Servicing, BNP Paribas, HSBC Bank and Clearstream.
According to the ACSA data, asset servicing providers in Australia settled 12.8 million trades in the six months to 30 June 2022, 3.4% fewer than in on the previous six months. ACSA members on average settled approximately 98,000 trades per day on behalf of clients.
ACSA reported that assets held on behalf of Australian investors in Australia and offshore declined by 7.1% and 10.3% respectively. Assets held in Australia on behalf of offshore investors declined by 10.1%.
ACSA chief executive, David Travers, said that local and global market volatility and shifting economic and geo-political landscapes were clearly evident in the reduced volumes of assets held under custody locally and offshore for Australian investors.
“Relative movements of ACSA member data in the June report also reflect consolidation of custody mandates in many cases,” he said.
Total Assets Under Custody for Australian Investors (AUD Billion)
| Rank | Provider | 31-Dec-21 | 30-Jun-22 | % change |
| 1 | J.P. Morgan | $1,109.9 | $983.7 | -11.4% |
| 2 | Northern Trust | $730.0 | $679.3 | -6.9% |
| 3 | Citigroup | $823.1 | $678.8 | -17.5% |
| 4 | State Street | $580.5 | $625.4 | 7.7% |
| 5 | NAB Asset Servicing | $579.3 | $509.4 | -12.1% |
| 6 | BNP Paribas | $494.5 | $441.9 | -10.6% |
| 7 | HSBC Bank | $219.7 | $197.1 | -10.3% |
| 8 | Clearstream | $106.5 | $104.2 | -2.2% |
| 9 | Netwealth | $56.6 | $55.7 | -1.6% |
| 10 | Apex Group | $25.8 | ||
| 11 | BNY Mellon | $16.6 | $12.1 | -27.3% |
| Total | $4,695.3 | $4,313.4 | -8.1% |
Source: Australian Custodial Services Association – Industry Statistics June 2022, Table 1
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