Asset servicing refers to a set of tasks and activities provided by a custodian to its clients, such as pension funds, asset managers, and insurance companies, around the assets under its custody. These tasks include:

• Notification and processing of securities transactions (coupon drop, dividend payment, bonus share allocation, stock split, etc.)
• New issue services
• Payment of income (dividends and coupons) and redemption of fund units or shares
• Management of tax issues: withholding tax and claims
• Proxy voting service on securities held

Asset servicing is a client-centered service that provides front, middle, and back-office solutions to help clients meet the demands of a changing and complex investment landscape. It involves managing assets efficiently, providing the best value level of service for the costs involved, and optimizing assets in the context of the organizations goals and objectives. Asset servicing is offered by financial institutions catering to high-net-worth individuals, government entities, corporations, and institutional investors like colleges and pension funds.