Northern Trust Announces New Collective Trust Funds for DC Plans
CHICAGO, IL, March 22, 2010 -- 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 401k 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 401k, 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.
###
Click here for more material dealing with current trends, opinion, news, legislative action, investments, marketing, sales, consulting, and legal issues on 401k plans.
This is a press release provided by the company or its representatives. 401khelpcenter.com, LLC is not the author of this release and is not associated or affiliated with any firm or organization mentioned unless otherwise noted. Use of any information obtained from this release is voluntary, and reliance on it should only be undertaken after an independent review of its accuracy, completeness, efficacy, and timeliness. Reference to any specific commercial product, process, or service by trade name, trademark, service mark, manufacturer, or otherwise does not constitute or imply endorsement, recommendation, or favoring by 401khelpcenter.com, LLC.
