Skip to main content
October 2024
CURRENT ISSUE
AAM Magazine
October 2024
Back to news

Australian assets under custody hits record, tops $5 trillion mark for first time

Custody
By Hui Ching-hoo   
August 16, 2024

Australia’s custody and asset service industry saw assets breach the A$5 trillion (US$3.3 trillion) level for the very first time, reaching an all-time high of A$5.04 trillion in the six months to June as investors sought out offshore investments, according to the Australian Custodial Services Association (ACSA).

Australian investments in foreign assets jumped 11.4% to A$1.8 trillion in the first half of the year. Assets held in Australia on behalf of offshore investors, or sub-custody assets, rose a more modest 4.4% to A$2.2 trillion.

Investors in Australia “stepped up exposure to offshore investments to take advantage of investment opportunities and momentum building in offshore markets”, David Travers, chief executive officer of ACSA, says in a statement on August 13.

Overall assets under custody were up 5.7% from A$4.77 trillion at the end of 2023.

Meanwhile, assets under administration rose 7.1% to A$5.8 trillion in the first half of the year from A$5.42 trillion at the end of 2023 while the number of trade settlements fell 2% to 11.4 million.

“Innovation, industry engagement and best practice solutions remain a critical focus for achieving efficiency in custody and investment administration,” Travers says.