Monterey Insight Reveals Service Provider Market Share in Three Fund Domiciles

New research from Monterey Insight reveals service provider market share across Ireland, Jersey and Guernsey, and this year’s findings show that State Street, Northern Trust and BNP Paribas have come out on top across various custody and administration areas.

Editor’s Note: See the following information represented graphically here.

Ireland

In Ireland, State Street remained the top custodian, like last year, with $552.4 billion in assets under custody, up from $430.3 billion the year before. BNY Mellon remained in second place, ($364.9 billion), but J.P. Morgan lost its third place spot this year to Northern Trust ($346.9 billion).

State Street also held the highest market share as an administrator for the second year in a row. As of June 2014, State Street had $541.1 billion in assets under administration across both domiciled and non-domiciled Irish funds, compared to $421.7 billion in 2013. The rest of the top administrator rankings followed last year’s pattern, with BNY Mellon in second ($426.5 billion AuA) followed by Northern Trust ($345.9 billion), and J.P. Morgan ($321.6 billion).

PwC kept the top spot for most audits, as did Maples and Calder for providing legal advice to the most funds. However, for just Irish-domiciled funds, Dillon Eustace was the law firm that serviced the most.

In total, Irish schemes added by fund management companies more than doubled in 2014 to $32.5 billion, with over 640 new Irish domiciled funds and sub funds launched during that time.

Total fund assets serviced also rose by 19% to reach $2.56 trillion at the end of June 2014, of which over $2 trillion were Irish-domiciled funds.

Money market funds were the most common, accounting for 29.3% of assets domiciled in Ireland.

“Despite the uncertainty across global financial markets in recent years, the continued growth in Irish funds is testament to the ability of the industry to adapt and to innovate,” says Rachel Turner, head of offshore for BNY Mellon’s asset servicing business. “Those companies that have reacted fastest to changing client needs and regulatory requirements have strengthened Ireland’s position at a time when others have struggled to compete. Continued growth for 2015 will be dependent on the industry seeking opportunities to expand its capabilities even further—beyond core activities of fund administration and custody—by providing new and complimentary services to clients in both traditional, and increasingly, non-traditional distribution markets across the world.”

Guernsey

While State Street excelled in Ireland, Northern Trust held the top market share in Guernsey for administrators and custodians.

For assets under custody, the top two spots remained the same as 2013, though these leaders had a decline in total assets. Northern Trust had the most with $24.5 billion (down $1 billion), and Kleinwort Benson had the second most AuC with $9.6 billion (also down $1 billion). BNP Paribas came in third with $7.4 billion, whereas 2013 saw RBC Wealth Management in that spot with $8.7 billion.

Like 2013, the top three administrators remained the same as of June 2014, with Northern Trust in the lead at $71.1 billion in AuA, up from $68.5 billion the year prior. Ipes came in second at $48.7 billion and Apax Partners finished third with $37.3 billion.

However, Aztec Group won the most new administration business introduced over the past year, adding $3.0 billion in assets, or approximately $100 million more than Northern Trust won in new business.

For auditors, KPMG overook PwC for the top spot, while Carey Olsen remained the law firm advising the most funds.

Total fund assets serviced in Guernsey grew 7.19% from the previous year to $426.1 billion at the end of June 2014. However, the number of serviced schemes declined by 5 to 1,026 and the total number of sub-funds fell by 76 to 1,442.

Private equity/venture capital funds were the most popular vehicles, accounting for 64.3% of assets domiciled in Guernsey, as well as 34% of total sub funds domiciled in the market.

“Private equity funds remain the signature of the Guernsey fund industry, and continue to increase year on year: they are the only asset type that gained in the total number of funds (+8%),” says Karine Pacary, managing director of Monterey Insight.

Jersey

For custody in Jersey, BNP Paribas repeated its position in the top spot with $29.9 billion AuC, up from $24.1 billion. State Street landed in second place with $10.1 billion after not making the top three last year, while last year’s second place custodian, SG Hambros Trust, fell to fifth this year. Capita Trust Company remained in third with $9.7 billion, up from $8.5 billion.

For fund administrators, State Street held the top market share again, with $60.1 billion in AuA, up from $56 billion a year ago. Second and third place changed, however, with Aztec Group moving up a spot to second place with $45.9 billion, and Saltgate taking the third spot with $37.5 billion, while Bedell Fund Services fell from second to fourth.

PwC remained the largest auditor, though its lead narrowed slightly from being a combined 529 funds ahead of KPMG and EY to 505.

Mourant Ozannes offered legal advice to the most funds, 842, down slightly from 850 in 2013, while Carey Olson moved up from third to second place advising 381 funds, swapping positions with Ogier.

Fund assets serviced in Jersey rose 31.9% to $305.8 billion at the end of June 2014, and the total number of sub funds rose by 14 to reach 1,535.

Like in Guernsey, private equity/venture capital funds were the most popular vehicles in Jersey, though not quite as prevalent as in Guernsey, as they accounting for 39.7% of funds domiciled in Jersey.