Clients using this service give the authorisation to their custodian to allow MJ Hudson to access the custodian's workstation. We have automated the process of extracting all data required for our analysis.
We produce monthly reports that analyse all the functions that custodians perform for institutional investors including:
- Core custody functions: trade settlement, income collection and tax reclamation.
- Analysis of less transparent functions such as credit and debit interest rates and spreads on FX trades.
- Analysis of ancillary services including securities lending, proxy voting and investment accounting for pension funds, where applicable.
The monthly report allows an anonymous comparison of the clients own experience versus other clients. The most important comparison group is usually the client's own peer group. We can determine this by selecting similar types of clients, or clients can create their own unique peer group.
It is also possible for the client to compare themselves to other clients of the same custodian or the universe of all our clients.
Annually we benchmark the fees paid by the client against its chosen peer group. We can also provide detailed analysis of specific fees that stand out as anomalies.