Global Custodian is pleased to announce the launch of its third annual exchange traded fund (ETF) administration survey, targeting custody banks and fund administrators which have bolstered their services for this increasingly competitive space.
The ETF space continues to grow at a resounding pace, with ETFGI putting the worldwide assets at around $10 trillion at the end of 2021.
At the same time, the market continues to evolve – and subsequently lean on administrators – through new fund structures such as active or semi-transparent ETFs, mutual fund to ETF conversions, or new asset classes such as ESG or Bitcoin.
As a result, service providers continue to target the area as lucrative space for growth with the last 12 months representing another banner year for ETF servicing.
Many believe Brown Brothers Harriman’s ETF administration capabilities were part of the allure which led State Street to acquiring its investor servicing business at the end of last year, while research firm Coalition Greenwich pinpointed ETF servicing as leading to fund services businesses returning their highest revenues in eight years.
Last month Ultimus Fund Solutions said it had recorded an almost 150% increase in the number of ETFs serviced since 2020.
There have also been numerous developments and moves in the market. Earlier this year Citi integrated its flagship ETF platform with Bloomberg’s BSKT service in an effort to support its clients who use the solution to negotiate fixed income baskets. In addition, Northern Trust revamped its Irish-based exchange traded fund (ETF) servicing platform to cater for future demand from European asset managers for new structures.
The past 12 months have seen countless mandate wins for the likes of BNY Mellon, BBH, Citi, HSBC, JP Morgan, RBC I&TS, State Street and Ultimus, all of which will be looking to build on an impressive set of scores registered in 2021.
Overall, the average score across all providers rose to 6.09 in 2021, up from 5.59 the previous year.
The 2022 ETF Administration survey is now live and accepting responses until 16 May. Please rate the quality of your fund administrator/s over the past year by clicking here .
For more information please contact the research department: surveys@globalcustodian.com or Beenish Hussain.