Market share gaps narrow in tight custody market


The six major custodians providing master custody services for super funds have settled into a kind-of dogged trench warfare over market share, with the gap between first and sixth continuing to narrow and the number of big tenders, which have been a feature of the last few years, all-but drying up.

The latest market share figures produced by the Australian Custodial Services Association, for the six months to June, 2017, show an overall growth rate for the sector of 6.4 per cent, compared with the six months to December 2016.

The latest total for all custodians in the survey, including those that either don’t service super funds or don’t provide full-service master custody, was $3.329 trillion, compared with $3.113 trillion six months earlier.

JP Morgan maintained its lead overall but the gap narrowed slightly with the other five, each of whom had a higher growth rate during the latest period. None of the positions in the rankings changed. The results were:

  1. JP Morgan, $640.74 billion ($624.04 billion as at December, 2016)
  2. NAB Asset Servicing, $534.00 billion ($513.00 billion)
  3. BNP Paribas, $510.00 billion ($472.00 billion)
  4. State Street, $434.39 billion ($397.04 billion)
  5. Citigroup, $418.97 billion ($393.00 billion)
  6. Northern Trust, $360.00 billion ($334.00 billion)
  7. HSBC, $178.89 billion ($166.57 billion)
  8. RBC Investor & Treasury, $96.72 billion ($87.32 billion).

For the full list and details on sub-custody shares, click here: