Assets under custody in Australia fall by 8.1% in June half as volatile markets weigh

Data released today by the Australian Custodial Services Association (ACSA), the peak industry body for custodians and asset service providers in Australia, showed there was an 8.1% fall in assets under custody to $4.3 trillion in the six months to 30 June 2022. 

Source: Australian Custodial Services Association – Industry Statistics June 2022, Table 1

The decline in assets held reflected difficult financial markets in Australia and globally in the June half, as well as adjustments to methodologies by some ACSA members. The data includes assets held in custody by Apex Group for the first time.

According to the ACSA data, asset servicing providers in Australia settled 12.8 million trades in the six months to 30 June 2022, 3.4% fewer than in on the previous six months. ACSA members on average settled approximately 98,000 trades per day on behalf of clients.

ACSA reported that assets held on behalf of Australian investors in Australia and offshore declined by 7.1% and 10.3% respectively. Assets held in Australia on behalf of offshore investors declined by 10.1%.

ACSA CEO, David Travers, said that local and global market volatility and shifting economic and geo-political landscapes were clearly evident in the reduced volumes of assets held under custody locally and offshore for Australian investors.

“Relative movements of ACSA member data in the June report also reflect consolidation of custody mandates in many cases,” Mr Travers said.

“Looking ahead, ACSA members will continue to focus on their response to changing regulatory data reporting requirements, their evolving role in supporting institutional involvement in digital assets including cryptocurrencies, and the implementation of the ASX’s DLT-based replacement for CHESS.”

“Innovation, digital asset evolution and standards will be critical to achieving efficiency in custody and investment administration “

“ACSA remains well placed to address the opportunities and challenges in the coming year through a combination of our working groups and task forces,” Mr Travers said.

A full copy of the ACSA data for the June half 2022 can be found here.

Download the media release here.