CHICAGO, March 22 /PRNewswire-FirstCall/ -- Northern Trust announced today it has launched a new investment fund platform that will consist of a series of collective funds sub-advised by investment managers retained and overseen by Northern Trust. The Northern Trust Company Sub-Advised Collective Funds Trust will provide cost-efficient access to the U.S. private and public retirement market. Each collective fund will be marketed and distributed by its respective sub-adviser.
"Collective trust funds are increasingly seen as an attractive vehicle for investment options offered in defined-contribution and 401(k) retirement plans, due to their potential for greater pricing flexibility and other advantages," said Peter Cherecwich, head of Global Fund Services-North America and chief operating officer for Corporate & Institutional Services at Northern Trust. "Asset management firms that aim to grow in this market can now be considered for our collective trust fund structure, under which Northern acts as trustee as well as providing custody, fund accounting and fund administration."
As is the case with registered mutual funds, collective trust funds can offer daily valuation and daily participant investment direction, as well as National Security Clearing Corp. trading capabilities, combined with the advantages of commingling scale. Unlike registered funds that are available to the general public, however, collective trust funds are available only to tax-exempt 401(k), pension, profit-sharing and governmental retirement plans. Collective trust funds also typically have a lower cost structure than mutual funds, making them an attractive alternative for plan sponsors with fiduciary responsibility.
Northern Trust's Sub-Advised Collective Funds Trust will be supported through the Global Fund Services unit ("GFS"), which has been servicing investment manager and fund company clients for more than 30 years and has experience supporting a wide range of complex investment strategies. Northern Trust's GFS services more than 430 investment managers around the globe encompassing approximately 4,000 funds. As trustee of the funds, Northern Trust will provide due diligence review of all sub-advisers as well as transparent reporting to plan sponsors and record keepers.
"In today's increasingly risk- and cost-conscious market, we can offer a fund product that combines efficiency with a thorough oversight process," said Paul d'Ouville, global head of asset servicing product management for Northern Trust. "For asset management firms launching new strategies or seeking new distribution channels, our collective trust presents a cost-effective solution to help achieve their business goals."
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2009, Northern Trust had assets under custody of US$3.7 trillion, and assets under investment management of US$627.2 billion. For 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S.
The Northern Trust Company, London Branch (reg. no. BR001960), Northern Trust Global Investments Limited (reg. no. 03929218) and Northern Trust Global Services Limited (reg. no. 04795756) are authorised and regulated by the Financial Services Authority.
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- Northern Trust (Guernsey) Limited, Northern Trust Fiduciary Services (Guernsey) Limited, Northern Trust Fiduciary Company (Guernsey) Limited and Northern Trust International Fund Administration Services (Guernsey) Limited are licensed by the Guernsey Financial Services Commission.
- Northern Trust International Fund Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the Jersey Financial Services Commission.
- Northern Trust International Fund Administration Services (Ireland) Limited and Northern Trust Fiduciary Services (Ireland) Limited are regulated by the Financial Regulator.
- Northern Trust Global Services Limited has a Netherlands Branch which is authorised and regulated in the Netherlands by De Nederlandsche Bank.
- Northern Trust Global Services Limited has a Luxembourg Branch which is authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF).
- Northern Trust Luxembourg Management Company S.A. is regulated by the Commission de Surveillance du Secteur Financier (CSSF).
- Northern Trust Global Services Limited operates in Abu Dhabi as a Representative Office, Licence number 13/238/2008 which is authorised and regulated by the Central Bank of the United Arab Emirates.
- The Northern Trust Company operates in Canada as The Northern Trust Company, Canada Branch which is an authorized foreign bank branch under the Bank Act (Canada). Trustee related services in Canada are provided by the wholly owned subsidiary The Northern Trust Company, Canada, an authorized trust company under the Trust & Loans Companies Act (Canada). Deposits with The Northern Trust Company and its affiliates and subsidiaries are not insured by the Canada Deposit Insurance Corporation.
- The Northern Trust Company operates in Australia as a foreign authorised deposit-taking institution (foreign ADI) and is regulated by the Australian Prudential Regulation Authority.
- The Northern Trust Company of Hong Kong Limited is a securities company regulated by the Securities and Futures Commission.
- The Northern Trust Company has a Singapore Branch which is a foreign wholesale bank regulated by the Monetary Authority of Singapore.
- The Northern Trust Company operates in China as a Representative Office and is regulated by the China Banking Regulatory Commission.
- Northern Trust Global Investments Japan, K.K. is regulated by the Japan Financial Services Agency.
- Northern Trust Global Services Ltd (UK) Sweden Filial is Authorised by the Financial Services Authority and subject to regulation by the Finansinspektionen.
SOURCE Northern Trust