Following a gainful 2021, asset service providers in Asia-Pacific now find themselves in a world fraught with risks and uncertainties as geopolitical concerns such as Western sanctions on Russia weigh on many of their institutional clients.
“What’s scary is whether the sanctions’ risk spills over into China somehow,” says the chief executive of one of the biggest asset service providers in the region. “Now that’s obviously something that we’re all worried about. For anyone that services this part of Asia, it could happen that the US or the Western alliance may slap sanctions on China somehow because it’s too close to the Russian position. I guess it’s possible so we’re just watching and being careful that we’re on top of things.”
“In terms of how it impacts what we do in securities services in APAC, if something like that happens, then we obviously need to help clients navigate what they can and can’t do. So we have those issues to deal with, but in Asia Pacific it’s still been pretty minimal. It’s more just thinking ahead,” the chief executive adds.
Another major concern is cyber risk protection, which has become critical especially after the massive shift to online servicing as Covid-19 restrictions forced both clients and asset servicing staff to work from home.
On the bright side, most of the asset service providers in the region are well-prepared to face headwinds that may come should the overall market situation deteriorates further.
In recent months, major asset service providers have also found themselves in a position to influence public policy. Big institutional clients including central banks and national governments have turned to them for advice on how deal with the current market environment.
A review of participating asset service providers by The Asset board of editors revealed that they have strong balance sheets, extensive and well-tested subcustodian and domestic custodian networks, experienced staff, and sophisticated digital and technology capabilities.
In 2021, asset service providers experienced strong growth in terms of assets under management. Our in-house surveys, backed by client feedback, also showed that they have developed strong servicing capabilities and risk management frameworks.
It is in this context that we announce the nominees for Best in Asset Servicing as part of The Asset Triple A Sustainable Investing Awards for Institutional Investor, ETF, and Asset Servicing Providers 2022.
Please click here for the full list of nominees.
During the awards evaluation period, Asset Benchmark Research also conducted “Asset Servicing Insights 2022”, a survey that invites asset management professionals to share their views on the best practices, latest developments and challenges in the asset servicing industry. Each participant has nominated three custodian bankers. Based on the results and Asset Benchmark Research’s methodology, we are glad to announce the ranking of “Best Individuals in Asset Servicing”.
Please click here to check the ranking.
To participate in the awards ceremony, please contact [email protected]