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2005 Dublin Trustee Survey Results

The second R & M Survey of Dublin Trustee Banks reveals some changes to the line up of service providers with a number of scores declining from last year and one new entrant, State Street, coming in second place. Last year the bank did not receive enough responses to qualify for entry. This year the minimum number of responses was set at 5 and seven banks qualified for inclusion.

The top honours go to Mellon who were the only bank to exceed an overall score of 6.00. The number of responses received increased by nearly 50% to 59. The total value of assets covered in the survey was in excess of €156 bn although a large minority of respondents didn’t reveal the size of assets they had with their trustee.

 Trustee (last year's position)20052004Change
1 Mellon (2) 6.05 5.91 0.14
2 State Street (-) 5.62
3 Citigroup (1) 5.60 6.49 -0.89
4 AIB / BNY (6) 5.43 4.93 0.50
5 Northern Trust (3) 5.37 5.71 -0.34
6 HSBC (5) 5.12 5.46 -0.34
7 J P Morgan (4) 5.05 5.60 -0.55

The other bank to have significantly increased its score was AIB / BNY with a gain of 0.50 over its performance in 2004 and a move from last place to 4th. “Having recently moved from our previous Custodian and Administrator, we are delighted with the approach that AIB / BNY Trust Company undertake. The quality of their staff is high, and I enjoy working with them,” was the verdict of one client. Another manager commented that “AIB / BNY have provided an excellent service and their ease of accessibility was a key role in building this relationship.”

This year the overall average score declined to 5.41 from 5.55 last year. Four of the seven participating banks followed this trend and registered declines. There may be several explanations for this, not the least of which is the strains of expansion in the Dublin market putting pressure on continuity and availability of staff. Also the bigger a trustee / custodian becomes, with a growing number of clients, the more of a challenge it is to maintain the quality of customer relations.

There was also a change in the way respondents ranked the importance of different aspects of the service.

 Category of Service20052004Change
1 Ongoing Trustee Monitoring 5.55 5.13 0.42
2 Regulatory / Technical Advice 5.34 4.79 0.55
3 Personnel 5.12 5.21 -0.09
4 Breadth of Services / Overall Support 4.45 4.28 0.17
5 Review of scheme documentation 3.90 3.51 0.39
6 Fees 3.82 3.85 -0.03
7 Trustee Site Visits 3.50 2.90 0.60

This year ongoing trustee monitoring of such things as investment and borrowing powers, breaches and pricing checks was considered the most important followed by the provision of regulatory and technical advice. The quality of personnel, last year’s most important aspect of service, was third in the 2005 list.

Methodology. The survey was conducted during October and November 2005.

Number of Replies

Trustee20052004Change
AIB / BNY 17 6 11
Citigroup 5 5 0
HSBC 6 6 0
J P Morgan 9 9 0
Mellon 5 5 0
Northern Trust 6 5 1
State Street 9 2 7
Total573819

93% of responses were received via the internet. The questionnaire consisted of 22 questions, each of which was scored out of a maximum of 7. The results are the average of all responses received with no weighting applied.

 

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