With the globalization of capital markets, more specialization is coming along with the constant growth of cross-border investment and collective investment schemes. Global custodians are therefore able to capture cross-border custody business without incurring substantial set-up costs and on-going fixed costs.
There is no doubt that the global custodian model is most appealing to institutional investors and asset managers, and rightly so, HSBC is well-placed to serve this industry by capitalizing on its network of branches across the globe and by leveraging effectively on its worldwide resources with local expertise.