Since the emergence of “Modern Portfolio Theory” and the “Capital Asset Pricing Model” in the late 1960s, institutional investors have taken a quantitatively driven approach to portfolio construction, looking to create portfolio diversification and obtain better risk-adjusted returns by balancing their asset-class exposures. This journey has seen several important advancements in thinking about how to optimally achieve desired results.
Funds that want to take the total portfolio approach first need to get the total portfolio view. To do that they not only need data – and lots of it – but a rock-solid understanding of exactly how they’re going to use it.
Citi wins Mason Stevens custody mandate
Wealth platform and managed account provider Mason Stevens has appointed Citi to provide it with custody and integrated execution services. The appointment comes as Mason Stevens looks to expand its platform offering to deliver “premium wealth management solutions”
“Citi has worked with Mason Stevens for several years across global markets execution and research services,” said Mark England (pictured), head of Citi Securities Services in Australia and New Zealand.
“By expanding our partnership to include securities services, we can help drive efficiencies and support growth by delivering an integrated set of solutions.”
Mason Stevens, founded in 2010, was previously a client of NAB Asset Servicing (NAS), Australia’s last domestic-owned custodian, which announced in late 2022 that it would wind down its operations following a strategic review of the business and multiple failed attempts to offload it onto a range of suitors, including HSBC and State Street.
Mason Stevens, which is itself licenced by ASIC to provide custodial services, renewed the NAS contract for another five years in 2018. It’s the first client of NAS to publicly find a new home, with others expected to follow as NAS winds down over the remainder of this year. For Citi itself, Mason Stevens – with circa $6.5 billion in funds under management and administration – is a nice little win, and follows the big boost it got after taking over 26 former RBC Treasury & Investor Services clients in late 2021 under then Securities Services head Martin Carpenter – a transaction that added $100 billion in assets to its local business and pushed it to number two on the ACSA sub-custody tables, ahead of J.P. Morgan.
“We recognise Citi’s experience and reputation as a global custodian, supporting our capability in accessing all major global markets,” said Mason Stevens CEO and executive director Tim Yule.
“We already have an existing relationship and system connectivity with Citi for international listed securities and trust this partnership will better serve our valued client base. We are on a strong growth trajectory and are always looking to invest in new solutions to provide better investment outcomes for our clients.”
