Asia’s top asset service providers for the year, explained part 2

AsianInvestor’s Asset Management Awards remain a key reference point for excellence across Asia Pacific’s investment industry, highlighting firms that demonstrate resilience, innovation and strong client delivery in asset servicing.

As with previous years, the judging process was guided by clearly defined criteria and careful review. Our panel, made up of independent industry experts and senior editorial leaders, examined submissions in detail to assess performance, strategic progress and overall market positioning.

Each entry was considered on its own merits, with judges evaluating written submissions and supporting documentation before comparing firms within their respective categories.

In this second instalment, we present further insight into the thinking behind the judges’ decisions and the factors that differentiated the asset services winners.

The level of competition remained high across categories, with submissions reflecting the continued evolution of the asset servicing landscape across the region.

Our judges engaged in thorough discussion and comparison before finalising their selections, ensuring that each winner stood out for clear and demonstrable achievement.

We congratulate all recognised institutions for their accomplishments and contribution to raising industry standards across Asia Pacific.

Tomorrow we will begin our explainers for Asia’s top fund houses by asset class.

BEST GLOBAL CUSTODIAN FOR MUTUAL FUNDS: HSBC

When it comes to global custody services for mutual funds, HSBC won plaudits for its capabilities across Asia Pacific last year. With a comprehensive platform delivering services including safekeeping, settlement, fund accounting, transfer agency and regulatory reporting, the bank’s success reflected its extensive network, operational excellence and deep understanding of mutual fund operations.

During the awards period, HSBC's custody services supported over 500 mutual funds with combined assets exceeding $300 billion – across equity, fixed income and multi-asset strategies. Performance saw 100% on-time NAV delivery, straight-through processing rates exceeding 99.9% and zero material operational incidents.

Among key settlement services innovations during the year, HSBC improved contractual settlement and yield enhancement, integrated execution and custody for ETFs (including fractional holdings), increased efficiency in exception management, and reduced costs and improved access to lending opportunities.

The bank also enhanced its investment management operations, along with its controls and efficiency around custody tax management. Enhancements included an improved contractual income user experience, enhanced custody model for securities transactions, improved operations support for asset servicing, maximising efficiency in tax reclaims and delivering regulatory change.

BEST GLOBAL CUSTODIAN FOR MUTUAL FUNDS: BOCHK (Highly commended)

The strength of BOCHK’s custody offering for mutual funds earned the firm recognition during the awards period, with an approach that emphasised operational reliability, client service and continuous improvement.

BOCHK's custody platform supported numerous mutual funds across multiple asset classes, achieving strong operational metrics, with reliable NAV delivery and efficient settlement processing. With the help of an experienced operations team, it helped asset managers navigate various challenges and regulatory requirements.

Notable successes during the year included growth of funds under administration by 129% year-on-year amid powerful traction and trust with clients – with 7% growth in new mutual fund clients.

BEST INDEX PROVIDER, CHINA ONSHORE: Hang Seng Indexes Company

Hang Seng Indexes (HSI) shone during the awards period by showcasing its status as a leading provider of benchmarks and index solutions for China's domestic equity and fixed income markets.

Boosted by its deep understanding of China's capital markets, rigorous index methodology and commitment to innovation, HSI’s success reflects a comprehensive index platform that serves asset managers, asset owners and financial institutions.

Assets tracking HSI benchmarks grew substantially during the awards period across equity and fixed income markets. The firm's flagship Hang Seng China Enterprises Index and Hang Seng Composite Index provided investors with comprehensive exposure to China's equity markets, while its fixed income indices addressed growing demand for China bond market benchmarks.

HSI also developed innovative thematic and smart beta indices during the year to address specific investment needs – including ESG indices, dividend indices and sector-specific benchmarks.

For example, HSI revamped the methodology of Hang Seng Innovative Drug Index, Hang Seng SCHK Innovative Drug Index and Hang Seng SCHK Innovative Drug Select Index, which leverage Natural Language Processing algorithms. HSI also launched Hang Seng INdexLab, an innovative custom indexing platform tailored for international investors seeking to enter the Hong Kong and Chinese Mainland markets.

Ultimately, using its transparent methodology, comprehensive coverage and robust governance framework, HSI was focused on positioning itself as an industry standard for China onshore investing.

BEST INDEX PROVIDER, INTERNATIONAL: Solactive AG

Innovation was core to Solactive’s achievements in international index provision during the awards period. The firm rolled out numerous market “firsts” and other solutions serving asset managers, ETF issuers and financial institutions seeking customised benchmarks and thematic indices across asset classes and geographies.

Capitalising on its flexible approach, innovative methodology and commitment to client service, Solactive's international indices attracted significant adoption, with assets tracking the firm’s benchmarks growing substantially across equity, fixed income and alternative assets.

Further, Solactive's ability to develop bespoke indices addressing specific client needs, combined with rapid implementation and competitive pricing, differentiated it from traditional index providers – resulting in the launch of numerous ETFs and structured products across Asia Pacific and globally.

Also impressive for Solactive was securing significant partnerships in the Chinese market, including collaborations with Ping An of China Asset Management (Hong Kong) and ChinaAMC – resulting in the launch of two ETFs.

This was part of the step-change in Solactive’s growth trajectory, with substantial business expansion driven by new client acquisitions and stronger relationships with existing partners.

More broadly, Solactive’s implementation speed has become a recognised differentiator in the fast-paced regional market. The firm consistently moves from index concept to production-ready solutions on compressed timelines, enabling clients to react swiftly to market opportunities and regulatory developments.

BEST INDEX PROVIDER, INTERNATIONAL: MSCI (Highly commended)

MSCI's indices continued to attract significant assets during the awards period, with the flagship MSCI World Index, MSCI Emerging Markets Index, and regional indices providing investors with comprehensive exposure to global equity markets.

In the fixed income space, the firm’s factor and ESG indices addressed diverse investment needs, using the transparent methodology, comprehensive coverage and robust governance framework.

MSCI also saw continued growth in custom index adoption, plus further advanced its strategy of integrating AI across research, modelling and product development, with AI also helping MSCI scale new forms of risk and performance modelling, extend coverage across public and private markets, and enhance sustainability and climate analytics.

BEST LEGAL ADVISOR: Sidley Austin LLP

As the trusted counsel for the asset management industry in terms of fund formation, regulatory compliance and transactional matters, Sidley Austin had a stand-out year.

During the awards period, the firm advised on numerous significant transactions and regulatory matters for asset managers across Asia Pacific. For example, its fund formation practice supported the launch of over 50 investment funds across multiple jurisdictions – including mutual funds, hedge funds, private equity funds and real estate funds.

Sidley Austin's regulatory team, meanwhile, advised clients on licensing applications, compliance and engagement with regulators across Asian markets.

And the firm's transactional practice supported asset managers in distribution agreements, strategic partnerships and M&A transactions.

Notable achievements also included working on various restructurings, acting for a range of asset manager clients looking to restructure their portfolios in 2025 amid extensive market volatility.

Sidley Austin was also committed to keeping up with other market trends, including tokenisation and the development of products that utilise digital assets. It’s recent work in these areas included advising on the establishment of funds in virtual assets and companies, structuring and executing tokenised offerings, and building the infrastructure of the emerging digital economy.