Domestic custodians continued to grow steadily on the back of expanding client base that brought in new assets, as well as increased capabilities through enhanced digitalization of their operations.
HSBC, for example, has pitched new markets in the Middle East for domestic custody amid rising client demand and new market developments.
Almost all of the domestic custodians have grown their assets under custody (AUC) as clients have shifted to online trading platforms in the wake of increased trading activity since the pandemic.
Custodian banks are also reaping the benefits of their investments in technology and digital platforms, whose importance is reaffirmed by the specialized Covid-era requirements of their clients.
It is in this context that The Asset board of editors announces the winners of the Best Domestic Custodian Awards as part of The Asset Triple A Sustainable Investing Awards for Institutional Investor, ETF, and Asset Servicing Providers 2021.
Best Domestic Custodian
Standard Chartered advocated the streamlining of Bangladesh Bank’s market infrastructure through the Business Partner ID which facilitates the process for clients to invest in the government’s treasury bond and bills. There has been growing interest in government debt securities in the domestic segment.
Deutsche Bank remains the largest domestic custodian in India with a significant lendable inventory. The bank currently has a strong base of approximately 20 large institutional clients on its securities lending and borrowing (SLB) desk as of December 2021. No other custodian has been able to replicate the success of Deutsche bank in SLB offerings.
Standard Chartered Indonesia continued to rank number one in the domestic funds and insurance segments based on assets under custody. Its T+0 redemption feature and multi-share class mutual fund remain in high demand. The bank continued to commercialize and enhance these solutions to meet growing demand from fund managers and investors in 2021.
Deutsche Bank – Winner
During the awards period, Deutsche Bank Malaysia provided fund services to 19 fund managers, with a market share of 41% in private retirement schemes, 36% in exchange-traded funds, 20% in wholesale funds, and 12% in unit trust funds.
Maybank Securities Solutions – Highly Commended
Maybank Securities Solutions (MSS) posted a healthy growth of 2.23% in AUC in 2021 despite the challenging market conditions. The firm onboarded 12 new clients, significantly increasing its custody business. It also improved business operation efficiencies by undertaking automation initiatives and introduced a new fund accounting system for more robust reporting capabilities.
Deutsche Bank experienced continued growth in AUC in the Philippines, driven by the increased participation of local retail investors through various collective investment schemes, as well as financial institutions.
HSBC Qatar had a significant increase in trade flows and AUC despite various client complexities and pricing demands. The bank was successful in retaining one of its top clients from moving to competition due to its ability to provide innovative and client-friendly solutions that also enabled it to secure new deals.
HSBC Saudi Arabia sharpened its focus on domestic institutions in 2021 with significant client wins in the asset manager and asset owner segments. It also streamlined its operations to reduce manual intervention and enhance digitalization, while engaging with clients on the use of technology.
DBS remains the dominant custodian in Singapore in terms of AUC and transaction volume. It won new mandates in 2021 and has been settling 15,000 trades a day on average.
In 2021 HSBC posted a 14.8% growth in AUC and a market share of 21.1%. It also onboarded a new insurer client for trustee and custodian services. Supported by the bank, this client launched three funds during the year.
Deutsche Bank Colombo Branch was the preferred custodian and fund administrator for newly licensed mutual funds in 2021 as fund managers looked to take advantage of the renewed interest among domestic clients in the equities market.
CTBC Bank remains the dominant domestic custodian in Taiwan, winning 10 new major mandates in 2021. Its AUC from all segments hit a record high of NT$3.12 trillion (US$104 billion), up 3% from the previous year.
Standard Chartered remains the leading foreign bank in Thailand, holding a market share of 7%, the highest among overseas institutions, for domestic custody. It is the first custodian bank to have facilitated access for mutual funds to invest in an open-ended Vietnam fund in the domestic market.
Standard Chartered is the first securities services provider to launch an end-to-end digital solution for the domestic asset management segment in Vietnam. The bank has enhanced its automation processes and operational efficiency, enabling it to capture significant flows from domestic retail investors.
For a full list of winners please click here