Custody

Historically, the unglamorous asset servicing businesses of the big international banks have largely stood in the shadows. But their reliable cashflows and deep institutional relationships mean that’s all starting to change.

BNP Paribas Securities Services has released its European road-tested ESG compliance tool in Australia and NZ amid a step-up in regulatory oversight of sustainable investment practices in the region.

State Street’s big Challenger win will no doubt look good on the ACSA tables, but an influx of expertise will also boost its Alpha-focussed business strategy in the land down under.

The $127 billion Challenger has selected State Street as its new custodian and will be one of the largest invest managers in the region to deploy Alpha, its front-to-back asset servicing platform.

J.P. Morgan has leveraged its dedicated transition team and merger experience to win custody of the circa $30 billion Spirit Super ahead of the fund’s tie-up with Care Super.

Australia’s sophisticated super fund market makes it the perfect asset servicing ‘laboratory’ for the international custody banks, which are well-placed to help those funds further their offshore ambitions.

State Street has been appointed to provide custody and administration to the $32 billion superannuation fund, with its Brisbane presence one of the key factors in the win.

The chief of BNP Paribas’ local securities services division expects that the period of heated competition that followed the exit of NAB Asset Servicing will continue, with custody banks leveraging their offshore footprints and private markets capabilities in the fight for new business.

The $34 billion super fund has appointed Northern Trust for asset servicing solutions, becoming the latest NAB Asset Servicing client to find a new home.

Surging interest in the private markets from asset owners and managers requires heavy investment in tech and teams for the custodians that service them, and is set to keep back-offices busy for a while yet.

Perpetual will use Charles River Development’s Investment Management Solution for its front-office operations as it prepares for an “evolving investment management landscape”.

It’s picked up hundreds of billions in custody assets from the NAS exit, but BNP Paribas wants to lock them down before it goes hunting for more – with private markets and its offshore presence at the top of the pitch deck.