Mutual Fund Custodian

A trust company, bank or similar financial institution responsible for holding and safeguarding the securities owned within a mutual fund. A mutual fund's custodian may also act as the mutual fund's transfer agent, maintaining records of shareholder transactions and balances.

Also referred to as a "mutual fund corporation".

Since a mutual fund is essentially a large pool of funds from many different investors, it requires a third-party custodian to hold and safeguard the securities that are mutually owned by all the fund's investors. This structure mitigates the risk of dishonest activity by separating the fund managers from the physical securities and investor records.


Investment dictionary. . 2012.

Look at other dictionaries:

  • mutual fund custodian — A commercial bank or trust company that holds securities owned by a mutual fund and sometimes acts as transfer agent for the mutual fund. Bloomberg Financial Dictionary …   Financial and business terms

  • Mutual fund fees and expenses — are charges that may be incurred by investors who hold mutual funds. Running a mutual fund involves costs, including shareholder transaction costs, investment advisory fees, and marketing and distribution expenses. Funds pass along these costs to …   Wikipedia

  • Custodian bank — Banking A series on Financial services …   Wikipedia

  • custodian — Either (1) a bank, agent, trust company, or other organization responsible for safeguarding financial assets, or (2) the individual who oversees the mutual fund assets of a minor s custodial account. Bloomberg Financial Dictionary The party that… …   Financial and business terms

  • custodian bank — Applies mainly to international equities. Bank or other financial institution that keeps custody of stock certificates and other assets of a mutual fund, individual, or corporate client. Bloomberg Financial Dictionary See: Depository Trust… …   Financial and business terms

  • Mutual savings bank — For mutual banks, see mutualism (economic theory). Banking A series on …   Wikipedia

  • Hedge fund — A hedge fund is a private investment fund open to a limited range of investors which is permitted by regulators to undertake a wider range of activities than other investment funds and which pays a performance fee to its investment manager.… …   Wikipedia

  • Global Custodian Magazine — Infobox Magazine title = Global Custodian image caption = Global Custodian Fall 2007 Issue Cover editor = Dominic Hobson editor title = Editor in Chief frequency = Quarterly circulation = 20000 30000 (2005) category = Trade journal company =… …   Wikipedia

  • Grameen Fund — infobox company company name = Grameen Fund (GF) company company type = Private foundation = 17 January 1983 location = flagicon|BAN Dhaka, Bangladesh origins = Bangladesh key people = Muhammad Yunus, Chairman of the Board of Grameen Fund and… …   Wikipedia

  • Common contractual fund — A Common Contractual Fund (CCF) is a new collective investment scheme structure in Ireland introduced by the European Communities UCITS Regulations, 2003. The CCF is an unincorporated body established by a management company under which the… …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.