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CIMB Group Citi
CIMB accounts for just shy of 30% of the responses in this year’s
survey, more than any other providers. Despite the fact that
scores have fallen in all service categories, they remain comfort-
ably in the ’Good’ zone, ranging from 5.83 for Reputation and
Asset Safety at the top end to 5.29 for Operational Reporting at
the lower end. All category scores surpass the market average
apart from Special Operational Requirements, which falls short
by 0.17 points. With a score of 5.60 for this category, however,
there is no obvious cause for concern. Technology, an area that
comes in for general criticism across the survey this year, has
done relatively well in CIMB’s case, outperforming the market
average by 0.47 points.
Client comments are numerous and generally positive. “Very
proactive relationship manager and client services,” notes one
manager of Islamic funds. Another asset manager points to the
provider’s “flexibility to cater to client needs.” A few clients cite
areas where they would like to see some improvement. One
mutual fund client says, “We hope to see improvement in Asset
Servicing, especially on dividend entitlement. Net amount of the
entitlement should be provided on ex-date, not on lodgement date
for local dividends.” In general, however, clients seem quite happy. Citi, has this year added to the list of providers receiving
sufficient responses for a write up. While the client sample is
still small, the scores are somewhat disappointing. The bank
falls short of the market average in all service categories,
though it scores relatively well in areas pertaining to mutual
fund services. Its overall weighted average of 4.91 suggests
room for improvement in client perception. That said, its
client list includes some heavy hitters in the local asset man-
agement industry.
Many of the client comments are positive. “Technological-
ly savvy; breadth of access and coverage is wide; particularly
knowledgeable on RQFII and provides value added services,”
says one asset manager. “Very strong in corporate actions and
voting processes,” says another. However, there are calls for cli-
ent interfaces to be more user-friendly and for greater flexibility
on timelines to be available. Nevertheless, according to one large
insurer, the bank’s global presence, expertise and exposure play
in its favour. With a larger response base, in the future Citi may
well see its scores appreciate. In the meantime, a focus on tech-
nology and fees could go some way to altering client perception
in a favourable direction.
TABLE 1: SERVICE AREA SCORES
TABLE 1: SERVICE AREA SCORES
Category 2017 2016 Difference Category 2017 2016 Difference
Relationship Management and Client Service 5.74 5.99 -0.25 Relationship Management and Client Service 4.92 6.00 -1.08
Cost and Value Delivered 5.38 5.69 -0.31 Cost and Value Delivered 4.66 6.00 -1.34
Settlement and Cash Management 5.46 5.79 -0.33 Settlement and Cash Management 4.92 5.00 -0.08
Asset Servicing 5.44 5.55 -0.11 Asset Servicing 5.23 5.40 -0.17
Special Operational Requirements 5.60 6.00 -0.40 Special Operational Requirements 4.69 5.00 -0.31
Operational Reporting 5.29 5.88 -0.59 Operational Reporting 4.69 5.00 -0.31
Technology 5.41 5.65 -0.24 Technology 4.66 6.00 -1.34
Fund and Unit Accounting and Valuation 5.30 5.89 -0.59 Fund and Unit Accounting and Valuation 5.00 n/a n/a
Trustee and Administration Services 5.72 5.91 -0.19 Trustee and Administration Services 5.43 n/a n/a
Reputation and Asset Safety 5.83 6.20 -0.37 Reputation and Asset Safety 5.13 6.00 -0.87
OVERALL WEIGHTED AVERAGES 5.54 5.85 -0.31 OVERALL WEIGHTED AVERAGES 4.91 5.61 -0.70
TABLE 2: DIFFERENCE WITH MARKET AVERAGE
TABLE 2: DIFFERENCE WITH MARKET AVERAGE
Relationship Management and Client Service 0.45 Relationship Management and Client Service -0.37
Cost and Value Delivered 0.38 Cost and Value Delivered -0.34
Settlement and Cash Management 0.24 Settlement and Cash Management -0.30
Asset Servicing 0.08 Asset Servicing -0.13
Special Operational Requirements -0.17 Special Operational Requirements -0.26
Operational Reporting 0.42 Operational Reporting -0.18
Technology 0.47 Technology -0.28
Fund and Unit Accounting and Valuation 0.19 Fund and Unit Accounting and Valuation -0.11
Trustee and Administration Services 0.39 Trustee and Administration Services 0.10
Reputation and Asset Safety 0.37 Reputation and Asset Safety -0.33
OVERALL WEIGHTED AVERAGES 0.31 OVERALL WEIGHTED AVERAGES -0.27
68
Global Custodian
Summer 2017