Northern Trust Expands Mutual Fund Services for Correspondent Bank Clients
Northern Trust announced today it will expand the third-party fund services it provides to Correspondent Trust Services clients through a collaboration with Matrix Financial Solutions, a Broadridge Company. The enhanced capability will allow correspondent banks to trade mutual funds, exchange traded funds and collective investment trusts from more than 650 asset management fund families.
By consolidating mutual fund processing, clients will have a single outlet for all asset reporting and settlement. This will allow clients to reduce the number of vendors they need to manage and have the ability to house all of their underlying client assets with Northern Trust.
Broadridge’s Matrix platform will capture the trades from the correspondent trust banks, communicate the trades to the fund managers, and send Northern Trust the settlement positions and trade confirmations. Northern Trust will leverage its online system, Northern Trust Passport, to provide consolidated reporting. This process provides clients the operational efficiency of settling and reconciling with one institution.
“As the percent of trust bank assets held in mutual funds continues to grow, Northern Trust has responded by making it easier for clients to trade this asset class,” said Pete Cherecwich, Americas head of Corporate & Institutional Services at Northern Trust. “This new capability aligns with Northern Trust initiative to expand the set of valuable services we offer our correspondent trust bank clients.”