GLOBAL - Global custody services have achieved record satisfaction levels among customers and remain strong despite the financial crisis, according to the 2009 R&M Consultants Global Custody Survey.

The study, which included responses from approximately 830 international fund managers and pension funds, found overall satisfaction with the global custody sector reached the highest level ever recorded, at 5.70 compared to 5.64 recorded in 2008.

Richard Hogsflesh, managing director of R&M Consultants, said: "Those of us associated with the industry have recognised for a long time that this product, the backbone of investor services, has always represented steady revenues for the banks and a solid platform from which other services can be offered.

"Even in these extreme times, they have not suffered mechanical failure but have continued to service clients to the best of their ability. It's not often you can say that about banks these days," he added.

The survey found three Swiss banks took the top four places overall, although two of these only qualified in one geographical region. R&M claimed it would therefore be unfair to compare them to larger, international players.

When analysing the responses given by companies using five or more custodians, the Bank of New York Mellon (BNY Mellon) ranked first with 5.4, followed by Brown Brothers Harriman and Pictet with 5.34 respectively.

For the second time running, RBC Dexia ranked first in the UK, with 6.54, followed by Pictet and BNY Mellon.The top three places for the rest of Europe went to Credit Suisse with 6.32, UBS with 6.28 and RBC Dexia with 6.24.

Of the UK pension funds surveyed, BNY Mellon ranked first, with 5.87, followed by State Street with 5.59 and JP Morgan with 5.56.

Respondents taking part in the survey were asked to use a scoring system of 1 for low and 7 for high satisfaction levels

At least 75% of those surveyed were international fund managers and 25% were pension funds from the UK, continental Europe and North America.

R&M Consultants offer market research and customer satisfaction surveys covering global custody, banking and investment management.

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