[ D O M E S T I C S U R V E Y | I N D I A ]
FIGURE 3 : TYPE OF RESPONDENT
Broker / dealer Insurance company Asset manager Mutual fund manager Pension fund Other
FIGURE 4 : SIZE OF RESPONDENT
Up to US $ 100 million $ 100-500 million $ 500-1000 million $ 1-5 billion $ 5-10 billion >$ 10 billion that Reputation and Asset Safety has assumed the top position for clients with over 38 % of respondents rating it as their first or second priority and roughly 24 % ranking it below halfway . Type and size of respondents to the survey are shown in Figures 3 and 4 . Asset managers comprise the largest group of respondents this year at just over 30 % compared to 19 % in 2016 . There has also been a relative shift in size to smaller respondents with those having AUM of up to $ 500 million now accounting for over half the response base . This does not , however , mean that larger respondents have dropped out this year . Rather it is reflective of the fact that the number of respondents has more than doubled as has the number of providers rated .
Methodology regulator , SEBI , Stock Exchanges , Depositories etc .,” says one service provider .
Survey results This year marks the third Survey of domestic custody services in India . The very high standards set in the inaugural survey of 2015 have again been maintained . Indeed , 2017 aggregate scores are higher in all service categories apart from Fund Accounting and Valuation . Figure 1 shows the average scores across the survey in each of the ten service categories . Relationship Management and Client Service has registered the highest increase , up 0.23 points to 6.57 , among the highest average category scores in any of Global Custodian ’ s surveys . Pleasingly for local service providers in the current climate , the market as a whole scores highly for Reputation and Asset Safety , the best scoring category at 6.58 , maintaining last year ’ s impressive results . At an individual question level , the highest score – 6.60 – is
“ There is no question that India has the potential to get into double-digit growth in very short order .”
MARK MOBIUS , EXECUTIVE CHAIRMAN , TEMPLETON EMERGING MARKETS GROUP , SINGAPORE .
recorded for commitment to the custody and securities servicing business , followed by timeliness of resolution of failed trades ( 6.58 ). Even the lowest scoring question , quality of shareholder record keeping services , receives a still impressive 6.30 , comfortably in the ‘ Very Good ’ range . Figure 2 shows the relative ranking of each of the ten service areas , for both this year and last . This is based on information provided by respondents detailing those factors they consider most important in evaluating service provision . The table shows
Global Custodian domestic surveys are intended to assess the extent to which local service providers are meeting the expressed needs of their domestic clients . Such needs are often different from those of cross-border investors covered in the Agent Bank surveys published by the magazine . Many service providers also focus mainly or exclusively on domestic clients . To obtain the relevant information , clients are invited to complete a short online questionnaire . This typically involves around 20 questions . The questions are grouped into between eight and 12 service categories for presentation purposes . Respondents evaluate each question for each service provider that they use . Scores range from 1 ( Unacceptable ) to 7 ( Excellent ). Where clients have insufficient experience of a service or do not use it all , they can enter N / A . Clients are also asked to indicate which categories are most important to them in assessing the overall service being received and are given the opportunity to provide explanatory comments and identify specific strengths and weaknesses of their service provider ( s ). Each question is given an individual weighting depending on the importance attached to it by clients . Each respondent is given a weighting based on the scale and breadth of their business and the detail included in the response ( s ) they provide . Respondents are also described by their type of business and the level of their assets under management ( AuM ). Global Custodian Research department calculates weighted average scores for each provider , for each question , each category and an overall total . The Research department also calculates scores for different types and size of respondent allowing us to reflect as accurately as possible the relative position of each service provider , both overall and with specific client subgroups . Summary information is presented in each Provider Profile together where relevant , with explanatory contextual commentary . More detailed analysis of scores and comments received is available from the Global Custodian Research department . This group also administers the digital accreditation process by which suitably qualified providers can receive a formal accreditation of their achievements , in the form of one or more digital badges .
58 Global Custodian Summer 2017