As fund managers become more sophisticated with their investment strategies, the role of global custodians has changed significantly. The range of products and services they offer to clients has snowballed in recent years.

“Clients are increasingly looking for solutions that cut across traditional geographic boundaries in order to facilitate those new business models, enhanced transparency and greater automation,” says Frank Froud, head of Europe, Middle East and Africa at BNY Mellon Asset Servicing.

Core functions include fund administration and fund accounting (calculating how much income funds are making and spending), settlements (delivering securities to the buyer and the money to the seller), and corporate actions (keeping track of dividend payments for equities and coupon payments for bonds).

Roles and career paths

Client-facing

You will schmooze with fund manager clients, ensure they’re happy with existing services and, hopefully, sell them others. Firms rarely offer client-facing roles at graduate level.

Delivery

Includes fund accounting, settlements and corporate actions. Graduates usually get a grounding in all these areas before specialising.

Technology

Custodians spend hundreds of millions of dollars on technology, which is integral for profitability, so they look for the right IT staff from a graduate level. Firms hire system programmers, data architects, business analysts and systems integrators

Pay and bonuses

The client-facing roles are the most lucrative within global custody. A senior relationship manager in the UK can earn £70k-95k ($114k-155k), according to the Robert Walters salary survey. Settlements roles pay £25k-35k ($40k-57k) at the junior end, rising to £50k-75k ($81k-122k) in the senior ranks.

In Dublin, fund accountant salaries start at €27k-35k ($36k-50k), rising to €49k-75k ($71k-108k) at the top end. In Luxembourg, a fund administration head gets $136k+ after 10 years’ experience.

In Singapore, fund administration jobs pay $51k-80k at manager/AVP level, while corporate actions roles pay $51k-73k at the same level. Recruitment sources suggest average global custody salaries in the US are about $73k.

Skills sought

There are no favoured degrees for global custodians but certain roles, such as fund accounting or IT, require a pre-existing skills base. Graduates with mathematical degrees gravitate towards the core custody functions. Calculating corporate actions can be complex, and a firm grasp of maths will help.

Graduates will also need to demonstrate softer attributes. “While technical attributes, like having skills in accounting and financial analysis or having had an economics background, will be valuable, they’ll only go so far in achieving the level of client satisfaction necessary,” says Laurie Neu, group head for public entities and institutions at Northern Trust. “We want someone able to write and give presentations and to be a good listener for clients.”

“Today we are recruiting far more in areas like accountancy and law,” says Froud. “That said, for all the focus on technology and innovation, this very much remains a relationship business, so strong people skills remain at a premium.”