NAB Asset Servicing is still the largest custodian in Australia with $702 billion in assets under custody (AUC), but it has only experienced a 1.4 per cent growth, while its nearest competitor grew by 16.5 per cent.
JP Morgan had $558 billion in AUC at June 2015 and has benefitted from new clients such as Cbus and Telstra Super, which have chosen it as custodian because of its international and technological offerings.
JP Morgan remains the largest custodian of non-Australian assets for Australian investors ($290 billion, up 19.3 per cent), followed by Citigroup ($127 billion, up 21 per cent), State Street ($105 billion, down 2.8 per cent) and NAB Asset Servicing ($104 billion, down 1 per cent).
In the six months to 30 June 2015, total assets under custody for Australian investors grew by 7.7 per cent to $2.78 trillion. Of this amount, $1.93 trillion were in Australian assets, with the remainder of $853 billion in foreign assets.
David Knights, chair of the Australian Custodial Services Association which released the statistics, said: “The growth in unlisted and alternative assets creates new challenges in terms of how we classify and hold assets such as syndicated loans, and we continue to work closely with our stakeholders to ensure we safeguard these assets effectively.”
Total assets under custody (AUC) for Australian investors, 30 June 2015