Global Finance presents its annual sponsored guide to the leading providers in the global custody market.
Custody Assets: 2008: €1.272 trillion
2007: €1.609 trillion
Ratings: Moody’s Aa1, S&P; A+, Fitch AA-
Client Profile: By location: Deutsche Bank’s Domestic Custody Services (DCS) provides securities custody, clearing and related services to global custodians and other institutions in more than 30 markets. As a matter of corporate policy Deutsche Bank does not disclose individual client names. By investor type: Deutsche Bank services a very diverse cross-border and domestic client base among which are global custodians, investment banks, broker/dealers, banks, multinational and local corporates, non-bank financial institutions, asset gatherers, insurance companies, hedge funds, ICSDs and private equity firms.
Capabilities/Services: Deutsche Bank provides a full array of securities custody, clearing, securities financing, fund administration, and registrar and transfer agent services as well as transferable custody receipt programs in selected markets.
Top Emerging Markets: The domestic custody and clearing business is constantly expanding its global footprint, and this can be evidenced by its recent expansion into Portugal, Austria and the Middle East.
Business Developments: Deutsche Bank is continually expanding the number of markets it covers. It also plans to expand its coverage for fund services, clearing and securities finance and other products.
Outlook: Deutsche Bank is a high-quality provider of worldwide agent bank services specializing in custody, clearing and fund services to demanding domestic and cross-border financial institutions. Its staff are its most important asset, and teamwork is critical to its success. The bank focuses on service design and execution. Its aim is to ensure consistent delivery on commitments made and attention to customer interests and needs.
Contact: Michael Gedigk
Tel: +1 212 250 9137
Fax: +1 212 797 0700
Custody Assets: 2008: ZAR 1.90 trillion
2007: ZAR 1.98 trillion
Ratings: Moody’s Baa1, S&P; BBB, Fitch A-
Client Profile: By location: South Africa, sub-Saharan Africa, Europe and the Americas. By investor type: Asset managers 11.14%, domestic and international brokers 7.83%, corporates 21.08%, global custodians and foreign banks 25%, pension funds 10.24%, collective investment schemes 8.43%, other 16.27%.
Top Emerging Markets: Standard Bank’s regional custody network covers 12 sub-Saharan markets, namely Botswana, Ghana, Kenya, Namibia, Nigeria, Malawi, Mauritius, South Africa, Swaziland, Zimbabwe, Zambia and Uganda.
Business Developments: Standard Bank intends to become a leading emerging market custodian, developing custody capabilities in new markets, developing new products and extending existing product capability to new markets. It also plans on engaging in alliances and partnerships to help extend market coverage.
Outlook: Given the ever-increasing focus on providing a comprehensive range of products and value-added services for custody, investment administration and securities lending to our clients and the Standard Bank group, we continue to invest heavily in these core business functions. We believe in the importance of being represented by employees based in the markets we serve, as a local presence facilitates closer and more trusted relationships with clients, superior knowledge of local commercial and regulatory environments and the ability to originate deals at source. In addition to our significant in-country talent base, Standard Bank deploys key skills across its operations to ensure that our customers receive excellent service.
Contact: Rajesh Ramsundhar
Tel: +27 11 631 2187
Fax: +27 11 631 0660
BNY MELLON ASSET SERVICING
Custody Assets: 2008: $20.2 trillion
2007: $23.0 trillion
Ratings: Moody’s Aa2, S&P; AA, Fitch AA-
Client Profile: By investor type: Asset managers $4.5 trillion, pension funds $3.0 trillion, insurance companies $1.9 trillion, banks $1.8 trillion, endowments/foundations $296 billion, other $8.7 trillion. Cross-border assets $7.5 trillion, domestic $12.7 trillion.
Capabilities/Services: BNY Mellon Asset Servicing offers clients world-class products, technology and service to help enhance the management, administration and oversight of their investment process. As one of the world’s leading securities servicers, with more than $20 trillion in assets serviced, we combine unrivaled client service with technology that delivers rich client data in user-friendly systems across a broad spectrum of specialized asset servicing capabilities, including custody and fund services, securities lending, performance and risk analytics, and execution services.
Top Emerging Markets: Our network extends to more than 100 markets worldwide, and we are continually exploring options to further expand.
Business Developments: BNY Mellon Asset Servicing is in a unique position when it comes to demonstrating long-term commitment to this business, developing innovative new products, delivering analytics and market intelligence in a seamless fashion, reinvesting in cutting-edge technology and attracting and retaining the best people. We will reinvest more than $600 million in technology for 2009, and we expect that level of investment to be maintained going forward as we enhance our single reporting platform, Workbench. Additionally, we continue to support growth plans in Asia, the Middle East, Europe and Latin America.
Outlook: The Bank of New York Mellon is focused, and our employees are fully engaged. We are a strong, long-term partner. In an environment where capital is a competitive advantage, we have resilience. We have a resilient capital base, and we are well positioned to weather the challenging year ahead. We have better performance relative to our peers in market capitalization, rising from number 10 at the end of 2007 to number 5 today. Our tier 1 capital ratio, which is important to regulators, strengthened to 13.1%. All our credit ratings were reaffirmed the week of January 19, 2009, after the release of our 4Q earnings.
Contact: Americas: Ken Roehner
Tel: +1 412 236 3216
Fax: +1 412 236 3119
EMEA: David Claus
Tel: +32 2 545 4464
Fax: +32 2 545 4306
Asia : Kevin Wong
Tel: +852 2840 9718
CIBC Mellon: Barbara Barrow
Tel: +1 416 643 6361
Fax: +1 416 643 6409
Custody Assets: 2008: $3.0 trillion
2007: $4.1 trillion
Ratings: Moody’s A1, S&P; AA-, Fitch AA-
Client Profile: By location: Global – more than 40 countries. By investor type: International fund services, US corporate ERISA, foundations/endowments, US public funds/Taft-Hartley (union), insurance.
Capabilities/Services: Northern Trust is a global leader in managing the sophisticated financial needs of corporations, governments and public entities, financial institutions, foundations, endowments, insurance companies and investment managers. We offer a full array of asset servicing solutions, including safekeeping, trade processing and settlement, contractual settlement, income collection, tax reclamation, proxy voting, online reporting, cash management, foreign exchange, securities lending, investment risk and analytical services, cross-border pooling, commission recapture, transition management, fund administration, trade services, investment operations outsourcing and trade execution analysis.
Business Developments: In 2008 Northern Trust, a pioneer in cross-border pooling, successfully obtained an advisory opinion from the US Department of Labor that clears the way for US pension plan participation in cross-border pension pooling. Northern Trust also launched a daily risk monitoring service across a single platform that includes the support of over-the-counter derivatives. Northern Trust also introduced significant new performance and analysis capabilities for clients investing in private equity, hedge funds and other alternative assets.
Outlook: Northern Trust is driven by a culture of collaboration; we continue to partner with our clients, helping them with their day-to-day challenges as well as long-term goals through the development of innovative solutions.
Contact: Americas: Jon Dunham
Tel: +1 312 444 5824
EMEA: Penelope Biggs
Tel: +44 207 982 2200
Asia-Pacific: Rohan Singh
Tel: +65 6437 6521
PNC GLOBAL INVESTMENT SERVICING
Custody Assets: 2008: $380.85 billion
2007: $500.66 billion
Ratings : Moody’s A1, S&P; A, Fitch A+
Client Profile: By location: Americas 95%, Europe/Asia 5%.
Capabilities/Services: PNC Global Investment Servicing is a recognized leader in providing global custodial services to the investment management industry.
Our services include global custody, securities lending, 24-hour foreign exchange trading, automated cash sweep into high-yielding cash management vehicles, and treasury management services. Our mission is to provide personalized custody solutions delivered with the highest level of service and competitive technology.
Clients receive detailed monthly reports that benchmark our service performance in every area. Investment in our business has produced a substantial increase in our STP rates, thereby increasing operational efficiency. This provides us the flexibility to absorb additional client growth while increasing service levels.
Additionally, a major enhancement to our business has been our global custody accounting platform. This platform provides multi-currency, multi-base accounting; real-time accrual-basis and cash-basis reporting; web-accessed corporate action notification and response; and real-time automated reconciliation to monitor and report transaction lifecycle, cash and security position balances.
Our global securities lending program focuses on maintaining a low risk profile and capturing competitive returns. Our risk-managed approach enabled us to effectively navigate through the difficult markets in 2007 and 2008, outperforming our peers in demand spread with zero losses to clients on their investment portfolios during this time.
Outlook: In a climate of continuing market volatility and heightened focus on investment risk and regulatory oversight, PNC clients continue to appreciate our ongoing emphasis on conservative risk management practices and the highest ethical standards.
Contact: William J. Salus
Tel: +1 302 791 2000
Fax: +1 302 791 1570
Ratings: Moody’s A2, S&P; A+, Fitch A+
Client Profile: By location: North America, Europe, Middle East, Asia-Pacific.
Capabilities/Services: Standard Chartered is one of the world’s leading international banks, employing over 75,000 people, representing 115 nationalities, in 70 countries worldwide.
Our Custody Services solution operates across a proprietary network in 19 markets, with extended regional custody coverage. We provide customized in-country solutions to support local requirements together with a single point of contact. We offer our clients the advantages of in-depth market insight and highly efficient transaction processing.
Our Clearing Services provide a range of broker clearing solutions minimizing broker infrastructure in the Asian markets, with partial or full outsourcing solutions available.
Fund Services offers consultative solutions and customized services. With a new state-of-the-art strategic fund accounting platform, we offer an extensive range of investment administration services to onshore and offshore funds, insurance schemes and investment portfolios.
Contact Americas: Michael Palagonia
Tel: +1 212 667 0354
UK/Europe: Mark Davies
Tel: +44 20 7885 7904
Northeast Asia : Alex Tam
Tel: +852 2821 1998
Southeast Asia : Hari Chaitanya
Tel: +65 6530 3185
MENA: Keith Bryan
Tel: +9714 508 2725
Custody Assets: 2008: $223.5 billion
2007: $257.0 billion
Client Profile: By location: Americas 76%, Asia/Pacific 19%, Europe/ Middle East/Africa 3%. By investor type: Banks 53%, investment managers 25%, mutual funds 21%, other 1%. Foreign 3%, domestic 97%.
Capabilities/Services: Include fully integrated securities processing and controls for foreign markets, with a single point of contact for processing and inquiry needs; flexible information delivery, including direct access and electronic delivery from real-time integrated processing and accounting system, supporting US and global processing on a single platform.
Business Developments: We continue to reinvest resources in our comprehensive, web-based account information delivery utility, Online Trust & Custody.
Outlook: Union Bank remains committed to the provision of custom, client-focused institutional securities services. Continued consolidation in the industry serves to highlight our unique position as a pioneer in fully integrated global master custody and securities lending, with a stable history and a strategic commitment to the specific needs of our customers.
Contact: Kevin Galvin
Tel: +1 415 705 5021
Fax: +1 415 705 5052