21st anniversary 1992 – 2013
Press Release 8th April 2013
R & M Global Custody Survey 2013
Only three banks saw their overall scores increase over the last 12 months in the R&M Global Custody Survey 2013 – Northern Trust, Pictet and State Street – while the remainder saw a decline despite the fact that very few respondents actually noted a deterioration in service levels.
“This survey is all about perception,” said Richard Hogsflesh. “Very often clients’ views can be coloured by what is happening in the environment around them. Triple dip recession, over regulation and winter blues could all be reasons for people to give lower scores. Europe saw the biggest decline whilst the US actually saw scores go up, that in itself may tell you something about over regulation.”
FX splits the banks
The results of the survey also show that the way that foreign exchange rates are handled, especially as far as their competitiveness and transparency are concerned, divides the banks down the middle.
“Some high profile (but unsuccessful) court cases in the US have raised concerns about how banks go about handling foreign exchange,” said Richard Hogsflesh, Research Director of R & M GlobalCustody.net. “For some banks, such as Brown Brothers Harriman with their InfoFX product and Citibank, it is seen as being a strength; for others such as BNY Mellon and JP Morgan, it is seen as an area of weakness or concern. Although these law suits were not successful they have clearly had a damaging impact on how the buy side view some banks”
Noteworthy performances in the survey were the improvements gained by Northern Trust and Pictet and the decline in score for JP Morgan – a surprising development given its climb up the charts in recent years. Its fall from grace is a result of a drop in performance in the UK – previously an area of strength – but in fairness everybody’s score in the UK declined apart from BNP Paribas.
Notes to Editors
The total number of responses at 916, were 13% more than 2011. Thirty one per cent were from asset owners, 62% from asset managers and 7% from banks. Geographically from all four corners of the globe. A scoring system of 1 (low) to 7 (high) was used for all questions. The questionnaire covered 49 different aspects of global custody ranging from core skills such as settlements and income collection through to customised services such as securities lending and processing of alternatives.
Further tables are available together (e.g. UK & US asset managers, UK & US asset owners, Family Offices, Canada, Switzerland, BeNeLux) with a copy of the questionnaire and other information such as client quotes