This special report on global custody was prepared by Pensions & Investments in conjunction with Buttonwood International Group, New York.
First, P&I and Buttonwood surveyed 13 of the major global custodian banks on their experiences in dealing with these markets.
Second, P&I and Buttonwood brought together a roundtable of five global custodial executives to elaborate on several key points in the report, including counterparty risk, finding, educating and dealing with subcustodians in emerging markets, and issues managers and pension executives should be aware of in emerging markets.
The following report - the most comprehensive ever published - summarizes the findings of the survey and includes comments from the global custodians on the risks, difficulties or peculiarities encountered in many countries. It also identifies which countries the custodians regard as the most troublesome, which services the banks use to price securities and what the securities lending spreads are in various countries.
The participating banks in the survey were: The Bank of Boston, Bankers Trust Co., Barclays Bank, Chase Manhattan Bank, Chemical Bank Geoserve U.K., Citibank N.A., Continental Bank, Investors Bank and Trust Co., J.P. Morgan, Mellon Trust, Morgan Stanley Trust Co., The Bank of New York and The Northern Trust Co.
John J. Giudice, president of Buttonwood, wrote the report. Buttonwood International is a management consulting firm serving the international needs of the financial services industry.