The Asset Servicing Awards: Custody specialists, mandates move up to next level
New technology has enabled more sophisticated and innovative solutions and mandates to address the evolving requirements of the fund management and custody industry
2 Jul 2020 | The Asset

Even before the Covid-19 pandemic, the increasingly complex financial markets were making investors and asset managers more demanding in terms of the quality and standards of service they required from their asset service providers.

In response, the providers have been tapping new technology to create more sophisticated and innovative solutions that can address the evolving requirements of the fund management and custody industry. Such new requirements include a move to T+0 clearing and settlement in Indonesia, new connect schemes in China, more automated processing of securities and documents, as well as,  administration of more complex fund structures, among others.

In 2019, the ETF Connect scheme kicked off with four ETFs investing in Japanese stocks launched in China, and four ETFs investing in China A-shares launched in Japan. The London-Shanghai Stock Connect also gained traction with increasing trading volume and two successful global depositary receipts (GDRs) listed in London. In Singapore, the new  variable capital company (VCC) structure was created to lure new capital flow into the country.

Also, the lockdowns that forced the work-from-home scenario arising from the pandemic has made it clear that manual processing and submission of documents is no longer a tenable option.

It is in this context that The Asset Triple A Asset Servicing Award 2020 announces the winners of the Custody Specialist Awards and Best Mandates of the Year Awards.

A breakthrough of sorts has been achieved in the sense that the winners of the custody specialist awards were also winners in the mandate awards, reflecting the enhanced level of specialization as well as the superior quality of mandates when compared to previous years.

This was made possible by greater openness to the use of automation by both the clients and the asset service providers, which can only continue in the midst of the pandemic and even after it.

Best Custody Specialist

BNP Paribas Securities Services is recognized as Highly Commended Best Custody Specialist – Fund Manager for its ability to create a customized, multi-market solution for a regional asset manager that is a cut above similar solutions.

Citi wins Best Custody Specialist – Insurance for winning mandates and growing its business in this sector despite strong competition from other players. Citi’s focused platform continues to provide it with a leading edge in the insurance sector. This is the second time that Citi has won this award.

HSBC wins Best Custody Specialist – Middle East for its ongoing dominance in this region despite the increasingly intense competition from new global and local players. This is the fifth time that HSBC has won this award.

HSBC wins Best Transfer Agent for its consistent delivery of quality services in a business that has been consolidating and seeing fewer providers recently. This is the10th year that HSBC has won this award.

Northern Trust wins Best Custody Specialist – Institutional for its consistent ability to provide customized solutions for institutional investors. In 2019, Northern Trust won significant Asian mandates that are not in the public domain and made available a bond trading platform that uses blockchain technology. This is the seventh time that Northern Trust has won this award.

Standard Chartered wins Best Custody Specialist – Africa for its continuing pioneering work that is paving the way for Asian investors and fund managers to seek opportunities in this region. This is the fourth time that Standard Chartered has won this award.
 

Standard Chartered wins Best Custody Specialist – Fund Managers for providing innovative solutions for fund managers who are transitioning to automated processes. Leveraging on its extensive regional network, Standard Chartered won mandates in various markets  across the region.

Mandates of the Year

In Hong Kong, Huatai Financial Holdings, serviced by BNP Paribas Securities Services, was selected as Best Custody Mandate – Broker-Dealer. BNP Paribas Securities Services provides clearing, settlement, and custody services to Huatai Financial Holdings as a direct London Stock Exchange member.

ADM Capital, serviced by BNY Mellon, is recognized as the Best Fund Administration Mandate – Alternative. BNY Mellon executed four new fund launches for ADM Capital in 2019.

The other winning deal in Hong Kong was that done by China Merchants Commercial Real Estate Investment Trust (CMC REIT) and serviced by Deutsche Bank. CMC REIT wins Best Corporate Trust Mandate with the first REIT listed in Hong Kong for six years and the first-ever with a central government state-owned enterprise background.

In China, Huatai Securities, the parent company of Huatai Financial Holdings, won the Best DR mandate. As the service provider in Huatai Securities GDR programme, Citi was the first DR bank to implement a GDR offering on the London Stock Exchange via the Shanghai-London-Stock Connect.

In Singapore, the Best Fund Administration Mandate goes to CSOP Asset Management and BNP Paribas Securities Services. BNP Paribas Securities Services provides custody solutions, fund administration, and transfer agency services for CSOP using Singapore’s new VCC structure.

Eastspring wins Best Middle Office Mandate for one of the region’s largest outsourcing projects. BNP Paribas Securities Services provided middle office services, including collateral access and investment analytics, for unitized funds across Eastspring’s main Asian business units in Singapore, Hong Kong, Indonesia, Korea, Malaysia, Taiwan, and Vietnam.

Franklin Templeton wins Best Domestic Custody and Fund Administration Mandate in India. Franklin Templeton appointed HSBC Securities Services to consolidate its custody account in India.

PT Mandiri Manajemen Investasi scores Best Fund Administration Mandate in Indonesia. Standard Chartered supported the launch of Mandiri Investasi’s first money market mutual fund with the same day (T+0) redemption feature.

The regional nominees for The Asset Triple A Sustainable Investing Awards 2020 for asset servicing will be featured in the coming weeks. Stay tuned.

To see The Asset Servicing Awards 2020, please click here.

For more details about The Asset Triple A Awards, please click here.

For more information about receiving the awards, please contact events@theasset.com.

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