Overview

Tangible assets: Despite recessionary declines, asset valuation recovery will drive revenue growth

IBISWorld’s Custody, Asset & Securities Services market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

REPORT SNAPSHOT

Industry Threats & Opportunities

  • The industry’s expanding client base and improved asset prices will help increase revenue
  • Price competition, low spreads and high regulatory compliance costs have weighed on industry profitability
  • Demand is correlated with the performance of asset management companies

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    Industry Analysis & Industry Trends

    Over the five years to 2016, industry revenue is forecast to grow slightly. The Standard & Poor's 500 index (S&P 500) experienced double-digit annual growth for three out of the past five years, increasing the value of many investments in the equity markets. Rising employment and disposable income also bolstered financial planning fees related to insurance policies. IBISWorld estimates the industry's expanding client base and improved asset prices will help drive revenue up in 2016. Still, the continued drop in trade volumes, particularly in equities, poses a growing threat to the industry. Over the five years to 2021, industry revenue is projected to grow at a faster rate than in the previous period. Several recent market developments will likely support future industry growth...

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    Industry Report - Industry Investment Chapter

    The Custody, Asset and Securities Services industry has a low level of capital intensity. For every dollar spent on labor, an estimated $0.11 is spent on capital. Prerecession, the industry had a medium level of capital intensity, but this trend decreased to an average as firms reorganized capital and evaluated their spending. Over the past five years, innovations in fintech have forced industry operators to increase the level of capital expenditure. IBISWorld estimates that industry operators have increasing their capital spending from $0.09 on capital per dollar on labor in 2011.

    The majority of industry expenses are associated with wages, as staff is needed to process transaction and interact with clients. Mos..

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    Additional Insights for the Custody, Asset & Securities Services Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Custody, Asset & Securities Services Industry are

  • Having links with suppliers
  • Access to the latest available and most efficient technology and techniques
  • Economies of scale
  • IBISWorld analysts also discuss how external factors such as MSCI World Index and S&P 500 in the Custody, Asset & Securities Services industry impact industry performance..

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    Industry Products

    What is the Custody, Asset & Securities Services Industry?

    This industry comprises custodial bank and brokerage firms that primarily provide trust, fiduciary and custody services to corporations, investment funds and individuals. Industry operations consist of back-office processes for transacting securities, including settlement, accounting and record keeping. Other services include middle-office support such as securities lending, compliance pricing and performance analytics.

    Industry Products
    Support services for financial and commodity markets
    Trust and fiduciary services
    Brokerage and dealing services
    Financing related to securities
    Financial planning and investment management
    Other miscellaneous services
    Industry Activities
    Provides custody services
    Provides assets or securities services
    Provides personal investments trust administration
    Provides transaction record keeping and accounting
    Provides middle-office functions (e.g. data analytics and fund performance tracking)

    Table of Contents

    About this Industry
    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry at a Glance
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Industry Performance
    Executive Summary
    Key External Drivers
  • MSCI World Index
  • S&P 500
  • Corporate profit
  • Personal savings rate
  • Regulation for the Investment Management industries
  • Yield on 10-year Treasury note

  • Current Performance
  • Competitive balance
  • Evolving structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Global competition
  • Regulatory landscape
  • Table: Custody, Asset & Securities Services Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Custody, Asset & Securities Services Industry Lifecycle vs The Economy

  • Products & Markets
    Supply Chains
    Key Buying Industries
  • Portfolio Management
  • Retirement & Pension Plans
  • Open-End Investment Funds
  • Private Equity, Hedge Funds & Investment Vehicles

  • Key Selling Industries
  • Investment Banking & Securities Dealing
  • Securities Brokering

  • Products & Services
  • Trust and fiduciary services
  • Support services for financial and commodity markets
  • Brokerage and dealing services
  • Other miscellaneous services
  • Financial planning and investment management
  • Financing related to securities
  • Chart: Custody, Asset & Securities Services Industry Products and Services Segmentation

  • Demand Determinants
  • New financial products
  • Value of financial assets
  • Outsourcing

  • Major Markets
  • Businesses and governments
  • Households
  • Other
  • Chart: Major Market Segmentation for the Custody, Asset & Securities Services Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Competitive Landscape
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesOther
  • Chart: Cost Structure Benchmarking – Sector vs Custody, Asset & Securities Services

  • Basis of Competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Custody, Asset & Securities Services Industry

  • Industry Globalization
    Major Companies
    State Street Corporation JPMorgan Chase & Co.The Bank of New York Mellon CorporationCitigroup Inc.
  • Table: State Street Corporation - financial performance
  • Table: JPMorgan Chase & Co. - financial performance
  • Table: The Bank of New York Mellon Corporation - financial performance
  • Table: Citigroup Inc. - financial performance

  • Operating Conditions
    Capital Intensity
  • Chart: Level of Capital Intensity for the Custody, Asset & Securities Services Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Key Statistics
    Table: Industry Data for the Custody, Asset & Securities Services Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Wages (2007-2021)
  • S&P 500 (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Jargon & Glossary
    Assets Under Custody (Auc)
  • Assets that are physically or legally held by an institution. This differs from assets under management because no investment or management decisions are made by the firm holding the assets.
  • Assets Under Management (Aum)
  • Assets that an institution professionally manages by making decisions on when to buy, sell or leverage assets owned by another individual or institution (e.g. wealth managers and hedge funds).
  • Back-Office
  • The administrative functions at a brokerage that support the trading of securities, including trade confirmation and settlement, record keeping and regulatory compliance.
  • Custody
  • Safekeeping service that a financial institution provides for a customer's securities. The institution collects dividends, interest and proceeds then disburses funds based on client instructions.
  • Fund Accounting
  • Financial reporting directed at the public rather than investors. Generally used by nonprofits and government entities that are responsible for showing how money is spent instead of earned.
  • Fund Administration
  • Set of activities that support investment operations, including the settlement of daily trades, pricing of securities, payment of fund expenses and fund reporting.
  • Middle-Office
  • In the trade settlement process, the group of employees responsible for calculating profits and losses and for managing risk.
  • Securities Lending
  • The lending of securities by one party to the other. Under this scenario, the borrower is required to put up collateral for the transaction and pay a fee based on the value of the loaned securities.
  • Spread
  • The difference between the bid and the ask price of a security or asset. When bid and ask prices are farther apart (ie. higher margin) industry firms make more money by buying low and selling high.
  • Transfer Agencies
  • Trust company, bank or similar financial institution assigned by a corporation to maintain records of investors, account balances and transactions.
  • Why buy this report?

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Custody, Asset & Securities Services:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Custody, Asset & Securities Services market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Custody, Asset & Securities Services, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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