Asset servicing is like a heartbeat of capital markets. You normally don't notice it, but its rhythms keep the whole body of world finance alive and functioning.

The year 2015 provided significant excitement: Shanghai-Hong Kong Stock Connect with its growing pains, expansion of R/QFII schemes, new foreign investor regime in India, growth of Shariah-compliant investment services, and clients' struggles with FATCA regulation, to name just a few. Providers of asset servicing in Asia have weathered these challenges with gusto, and many of them thrived. The Asset's annual Asset Servicing Awards recognize the best in the business.

Leading service providers including BNP Paribas, Citi, Deutsche Bank, HSBC Northern Trust and States Street were nominated for top awards. The winners for these award categories will be announced during the awards dinner to be held on June 7 at the Four Seasons Hotel, Hong Kong.

 

In the Leadership awards category, The Asset recognized two industry leaders, one from Deutsche Bank and one from Citi, for their work and dedication to their profession.

 

A total of eight mandates were recognized as the asset servicing banks continued to display innovation and creativity in servicing the specific requirements of their clients.

 

In the custody specialist award categories, the specialist service providers displayed new ways of packaging existing services in order to make them more responsive to the changing requirements of their clients.

 

At the country level, there have been movements of clients from one service provider to another as consolidation and a move towards cost-efficiency figured prominently in the decision making of the service providers.

 

Nominees for top awards 

Best in Asset Servicing

The nominees in the category of Best in Asset Servicing are: BNP Paribas, Citi, Deutsche Bank, HSBC, Northern Trust and State Street. 

 

Best Custodian - Overall

The nominees for Best Custodian-Overall category are: Citi, HSBC, Northern Trust and Standard Chartered. 

 

Best Global Custodian

The nominees in the Best Global Custodian category are: BNY Mellon, Citi, HSBC, Northern Trust and State Street. 

 

Best Subcustodian

Citi, Deutsche Bank and HSBC have been nominated for Best Subcustodian category.

 

Best Fund Administrator – Alternatives, Best Fund Administrator – Retail Funds

Deutsche Bank and Standard Chartered are nominees for the Best Fund Administrator - Alternatives category, while Citi, Deutsche Bank and HSBC have been nominated for the same distinction in the Retail Funds category. 

 

Best in Securities Lending

The nominees for Best in Securities Lending are: Citi and State Street,

 

Best in Collateral Management

The nominees for Best in Collateral Management are: BNY Mellon and Citi. 

 

Best in Corporate Trust

Citi, Deutsche Bank and HSBC have been nominated for Best in Corporate Trust. 

 

Best DR Bank

Citi and Deutsche Bank have also been nominated for Best DR Bank.

 

For Subcustodian, for Broker Dealers, Best Custody Specialist – Middle East

HSBC is recognized as Best Subcustodian specializing in services for Global Custodians and Broker Dealers, as well as Best Custody Specialist - Middle East. 

 

Present in almost all countries in Asia and Middle East, HSBC has continued to expand its broker dealer sector, with numerous new mandates throughout the region, leveraging, among others its status as a powerhouse in the R/QFII space. A powerhouse in the Middle East, HSBC commands more market share in cross-border assets under custody in eight markets.  The bank is also at the forefront of technological innovation, adopting state-of-the-art standards and exploring cutting-edge technologies.

 

Best Custody Specialist – Fund Managers

Deutsche Bank wins the Custody Specialist Award in the Fund Manager category. The bank significantly expanded the range of services it offers throughout the region, introducing support for Shariah fund administration in Sri Lanka, bringing third party securities lending and borrowing to Taiwan and India, extending local custody to act as local safekeeping bank for QDLP funds in China where it was also appointed by Hwabao Trust for QDII investments.

 

Best Custody Specialist - Institutional

The award for Best Custody Specialist - Institutional Investors goes to Northern Trust. With US$5.5 trillion of assets under custody, of which Asia accounts for a tenth, Northern Trust continued to grow in the region in 2015 with new mandates in Australia, new clients throughout the region, asset growth and technology improvements.

 

Best Custody Specialist - China

Bank of China (Hong Kong) wins the award for Best Custody Specialist - China. It has benefited from its ability to meet the demands of investors’ ever-increasing interest in Chinese capital markets and its key role in Hong Kong, the conduit of much of that activity. The bank is a market leader in R/QFII and QDII schemes, as well as in offshore renminbi activities.

 

Standard Chartered wins the Highly Commended distinction as Custody Specialist - China. It has leveraged its presence in China as well as the wide footprint throughout Asia to the benefit of its RQFII clients, while helping Brunei Investment Agency set up its first QFII. Highly active in all channels of access to China, Standard Chartered also serves as a significant conduit for Chinese investors investing abroad through the QDII scheme.

 

Best Custody Specialist - Africa

Standard Chartered is recognized as Best Custody Specialist – Africa. An undisputed leader in this sector throughout the continent, it supports 18 markets, having added four since its entry in 2010.  Despite adverse currency environment, the bank has grown this business and acquired new mandates in the region. 

 

Best Custody Specialist – Transfer Agency – MRF Specialist

Standard Chartered also earns a special recognition as Best Transfer Agency - MRF Specialist. In 2015, the bank developed Asia’s first sub-transfer agency program tailored to funds participating in the China-Hong Kong Mutual Recognition of Funds. The highly successful scheme has attracted six mandates and accounts for a significant market share of MRF activity.

 

The Asset has awarded two leadership awards this year to individuals who have made significant contributions to development of the industry and guided their companies through a challenging market environment.  

 

Asset Servicing Leadership Award

The Asset Servicing Leadership Award goes to Shrinath Bolloju, head of institutional cash and securities services Asia Pacific at Deutsche Bank. Bolloju has been responsible for accelerating the continued growth of the investor services business for Deutsche Bank including custody, clearing and settlement, securities lending, fund administration, and registrar & transfer agency.

 

Custodian Banker of the Year

Recognized as Custodian Banker of the Year is Jeff Williams, managing director and Asia Pacific head of direct custody and clearing at Citi. Williams has been responsible for building the direct custody business for Citi and expanding its coverage.

 

Best Collateral Management Mandate

The Best Collateral Management Mandate award goes to BNP Paribas, for its provision of collateral management, margin and reporting of OTC derivatives to AIA Insurance, one of Asia's largest insurance providers. It’s the first mandate of this kind that BNP Paribas won from an insurance company in the region, in a competition against larger custodians. The bank seized it as an opportunity to implement in Asia the solutions it had already established in Europe while proving its abilities to meet the challenges presented by regulatory complexity across many Asian jurisdictions.

 

Best Corporate Trust Mandate

Deutsche Bank wins the recognition for the Best Corporate Trust Mandate, for its role of bond trustee and principal paying agent in Huawei Investment & Holding's US$1 billion issue of 10-year guaranteed regulation bonds.  The issue was the Chinese technology company's first foray into the US dollar bond market, raising its international profile. Deutsche Bank had prior expertise in issuing offshore US dollar bonds for Chinese companies, but this deal is the most prestigious thanks to the company's high profile and the deal's size.

 

Best DR Mandate

Deutsche Bank also wins the award for the DR Mandate of the Year. It has facilitated the DR IPO of Videocon d2h Limited, the first ever Nasdaq listing for an Indian media company, and the first by a company from India in 15 years. Deutsche Bank performed all key roles in this complex and unique deal.

 

Citi wins the Highly Commended distinction for the DR mandate executed for South 32, a spin-off of the mining giant BHP Billiton. It was the largest such a deal in a decade and the largest listing in Australia since 1998.

 

Best Fund Administration Mandate - Alternatives

Deutsche Bank wins the award for the Fund Administration Mandate of the Year - Alternative Investments, for its mandate from Symphony Financial Partners, a Singapore-based hedge fund manager, to provide services for the SFP Japan Special Opportunities Fund. This unique mandate in terms of investment approach, prestige and size cemented the bank's position within the alternative fund sector.

 

Best Fund Administration Mandate – Retail Funds

Deutsche Bank also wins the award for the Fund Administration Mandate of the Year - Retail Funds, for its appointment as custodian and fund accountant for IIFL Wealth Management, a top rated private bank in India. Deutsche Bank will provide services for IIFL Wealth's domestic alternative investment fund, which accounts for 30% market share of the Indian AIFs, and also for its domestic mutual fund. This mandate lifts the bank to the top of the ranking in provision of custody for AIFs.

 

Best Global Custody Mandate

The award for the Global Custody Mandate of the Year goes to BNP Paribas for the mandate granted to it by UniSuper, Australia's leading and one of the largest superannuation funds with A$50 billion under management. The year's largest custody mandate, which BNP Paribas won from a local incumbent, has lifted the French bank to the third rank among custodians in Australia measured by assets under custody (AUC).

 

BNY Mellon wins the Highly Commended distinction for is global custody mandate from National Bank of Cambodia. It will help the country’s central bank to manage its growing foreign currency reserves.

 

Best Subcustodian Mandate

Deutsche Bank wins the award for the Subcustodian Mandate of the Year. It was appointed by Fairfax Group, an insurance and reinsurance company, for its investments in India under the new Foreign Portfolio Investor regime. Deutsche Bank was uniquely positioned through its experience in India and global presence to navigate the complexities and tight timelines.

Best QFII Custodian, Best RQFII Custodian

HSBC is awarded the recognition as the best QFII and RQFII custodian in the region. It manages nearly half of the globally awarded quota. In 2015, it added Australia as well as Germany, Switzerland and Canada to the long list of countries whose RQFII quota it services.

 

Best Transfer Agent

Citi wins the Regional Specialist award for Best Transfer Agent. In 2015 it launched transfer agency services in Singapore, implemented service offering for the Mutual Recognition of Funds between China and Hong Kong as well as became the first custodian to support the new Global Sharia Funds in Indonesia.

 

Hong Kong

HSBC wins the recognition for Best Fund Administrator - Retail Funds in Hong Kong.  The oldest and one of the largest fund administration companies in Hong Kong, it commands a fifth of the mutual funds market and a third of Hong Kong-domiciled ETFs.

 

India

Deutsche Bank retains its distinction as Best Fund Administrator - Retail Funds in India. It is the top provider of fund administration services to domestic mutual funds, where it commands neatly two thirds of the market, and services one third of physical gold ETFs. Its number of clients has grown by double digits in 2015.

 

Indonesia

Deutsche Bank retains its distinction as Best Fund Administrator - Retail Funds in Indonesia. Commanding the largest market share of the fund administration space, Deutsche Bank still managed to grow its assets, the number of clients, accounts and transactions. The bank added two significant new mandates and currently administers eight out of Indonesia's nine ETFs.

 

Korea

HSBC wins the award for Best Fund Administrator - Retail Funds in Korea. In the very competitive asset servicing landscape in Korea, which is dominated by domestic firms, the bank focuses on large international asset managers and boasts of the highest number of such clients in Korea.

 

Malaysia

HSBC is named Best Fund Administrator - Retail Funds in Malaysia. The bank's fund administration business had a very successful year, winning mandates for dozens of mutual funds, most of which it won away from competitors.

 

Philippines

Deutsche Bank is recognized as Best Fund Administrator - Retail Funds in the Philippines. Commanding more than a third of the market, which grew by double digits in 2015, the bank has edged out to top of the ranks in fund administration space.  It now serves clients half of clients who outsource fund valuation activity. The bank focused its development and innovation efforts on improving straight-through processing levels, compliance and regulatory agility.

 

Singapore

HSBC is named Best Fund Administrator - Retail Funds in Singapore. HSBC is the largest fund administrator in Singapore.

 

Taiwan

Deutsche Bank wins the award for Best Fund Administrator - Retail Funds in Taiwan. One of the largest providers of fund administration services in Taiwan, accounts for a more than a third market share. It boasts of ensuring a 99.9%+ straight-through processing rate, among the highest on the market. It's the only bank to offer integrated custody and fund administration for futures-based investment funds and is the only local provider to use international fund accounting system.

 

Thailand

HSBC is crowned the Best Fund Administrator - Retail Funds in Thailand.

 

Vietnam

Standard Chartered wins the award for Best Fund Administrator - Retail in Vietnam.  One of the first banks to obtain custody license in Vietnam in 2000, it has captured the majority of new fund launches in 2015. The bank also heads pioneering efforts in the frontier market, helping Vietnam Securities Depository to establish a transfer agency core system.

Australia

HSBC is recognized as Best Fund Administrator - Alternatives in Australia. It provides end to end securities services, leveraging its middle office and custody services and the presence throughout the region.

 

Singapore, Sri Lanka

Deutsche Bank wins the award for Best Fund Administrator - Alternatives in Singapore and Sri Lanka. In Singapore, it recorded a 50% growth in revenue compared to the previous year, with substantial growth coming from private equity and hedge funds.  It won ten new deals including one of the largest hedge fund launched in Asia in 2015. Its fund management business grew by 15% when measured by AUC. After 20 years of providing asset servicing in Sri Lanka, Deutsche bank dominates the industry, and commands an 85% market share in funds administration space.

 

HSBC wins awards for the Best Subcustodian in the following markets: Australia, China, Hong Kong, Japan, Middle East, Malaysia, Philippines, Sri Lanka, Taiwan and Thailand. In all these markets the bank is a leader in providing subcustody services. Responsible for many “firsts”, it has engaged with regulators and advisory bodies on developing market infrastructure, in addition to winning new mandates and growing its business in frequently challenging market circumstances.

 

Standard Chartered is recognized as the Best Subcustodian in Korea and Pakistan. Offering subcustody services in both markets since 1991, the bank services a quarter of foreign assets in Korea, further expanding its business by winning new mandates and expanding existing relationships. It is the largest custodian bank in Pakistan, servicing nearly half of the foreign assets in that market.

 

Standard Chartered wins the award for Best Subcustodian in Jordan, having taken over the business from a major competitor who had decided to exit the country. Standard Chartered seamlessly onboarded most of the international financial institutions invested in the country in less than three months, becoming a sole foreign custodian in Jordan.

 

Citi wins the recognition as Best Subcustodian in India, Singapore and Vietnam. Ranked first by assets under custody in India, the bank manages nearly a third of the flows into the Foreign Portfolio Investors scheme. Similarly, the largest bank clearing member and account operator in Singapore, it has seen an increase in settlement volumes despite a general decline in the market volume. Commanding a third of the market among foreign institutional investors, Citi has seen its business grow by double digits, in AUC, settlement volumes and fees.

 

Deutsche Bank is the Best Subcustodian in Indonesia. Commanding nearly half of the market share, it stands out through its thought leadership and spearheading of initiatives to enhance Indonesia’s fund market infrastructure and regulatory regime.

 

China

The award for Best Domestic Custodian in China goes to China Merchants Bank. The bank experienced robust growth in 2015, despite market volatility, growing its custody income by more than 80% from the previous year, ranking third in the country. It has more than doubled its AUC during the year, climbing to the third rank in a very close contest with its peers.

 

India

Deutsche Bank is named Best Domestic Custodian in India. The bank has managed to retain its market dominance, despite changing strategies by institutional investors and emergence of new players. Deutsche Bank accounts for half of the market share in asset servicing for life insurance companies, a two-thirds share of fund accounting for domestic mutual funds and institutional stock lending and borrowing. The bank credits its success to product innovation, in particular the new SLB Plus platform and Funds STP, both launched in 2015.

 

Hong Kong

HSBC wins the recognition as Best Domestic Custodian in Hong Kong. The bank has been an undisputed leader in the Hong Kong asset servicing space for decades, commanding a high market share of domestic custody and leveraging its local expertise.

 

Korea

HSBC wins the award for Best Domestic Custodian in Korea. Leveraging its regional capabilities, HSBC is a go-to destination for overseas funds investing in Korea, capturing more than a third of this market and ranking number one in this area. It helped obtain an RQFII licence for the country's first RQFII investor, to whom it now provides asset servicing.

 

Malaysia

Maybank is recognized as Best Domestic Custodian in Malaysia. The first to launch an online custody portal in 2012, the bank has added online Islamic custody solutions in 2014; in 2015 it focused on building its advanced portfolio analytics capabilities. It also secured a high-profile deal from Credit Guarantee Corporation, a subsidiary of the Central Bank of Malaysia.

 

Philippines

Deutsche Bank wins the award for Best Domestic Custodian in the Philippines. Holding the largest share – a third of the custody market, it experienced double-digit revenue growth despite challenging market conditions.

 

Singapore

DBS Bank is named Best Domestic Custodian in Singapore. While Singapore's stock market suffered a 16% drop in 2015, DBS Bank's custody business managed to grow in relation to it. The bank focused on improving client experience, enhancing its reporting capabilities, reaching a 98% straight-through-processing rate for its Swift clients and doubling the number of transactions channelled via its internet platform for non-Swift clients since the previous year.

 

Taiwan

CTBC wins the award for Best Domestic Custodian in Taiwan. With a year-over-year growth well into double digits and record assets under custody, the bank is second among local custodians. It won several significant mandates in 2015. It improved automation of order flow and processing.

 

Thailand

Siam Commercial Bank (SCB) wins the recognition as Best Domestic Custodian in Thailand. The country's number one custodian by AUC has seen a record revenue growth in 2015. It captures nearly a quarter of the market in mutual funds and provident funds business, while it commands the majority market share in private funds business. SCB's biggest achievement was winning a mandate from the Government Pension Plan amid intense competition.

 

SCB Securities, a subsidiary of Siam Commercial Bank, is named Best Prime Broker in Thailand. In a highly competitive environment and facing declining trade volumes, SCB Securities has managed to increase its market share and climb the rank tables. It has a solid record in IPO lead underwriting, exhibiting growth in market share in block trading. The company's success can be credited to innovation in digital services and programmes focusing on high-net-worth clients and sophisticated investors.

 

For a complete list of winners and nominees, please click here.