NAB Asset Servicing is the “largest overall player” in the custody and administration sector despite rumblings that it is set to exit the market.
NAB AS holds $673 billion in the $2.5 trillion sector, according to a industry survey by Australian Custodial Services Association (ACSA).
In its latest statistics of the sector, ACSA found NAB Asset Servicing grew 6.6 per cent in the six months to June 2014, despite announcements it is holding discussions with global custody providers regarding the future of its business.
ACSA also found JP Morgan, BNP Paribas and Citigroup to be significant holders of assets in the sector, accounting for approximately 70 per cent of assets under custody.
“The remaining share of assets under custody are held by State Street, Northern Trust, HSBC Bank, BNY Mellon, Bond Street, RBC Investor Services and Netwealth,” a statement from ACSA said.
“J.P. Morgan remains the largest custodian of non-Australian assets for Australian investors ($232 billion, up 53.5 per cent), followed by Citigroup ($107 billion, up 17.4 per cent) and State Street ($106 billion, up 5.2 per cent),” the statement said.
ACSA found overall the total assets under custody for Australian investors has grown 6.3 per cent to $2.459 trillion in the six months to June 2014.
“Australian custodians are the safekeepers for $1.7 trillion of Australian assets and $740 billion non-Australian assets for Australian investors,” ASCA said.
“There was also a steady increase in Australian assets held under custody for foreign clients (sub-custody), which increased 8.2 per cent to a new high of $1.037 trillion,” it said.