Northern Trust has been selected by Reliance Trust, a FIS company, to provide global custody, fund administration and fund accounting services for collective investment trust (CIT) funds, expanding a key relationship in its growing CIT collective investment trust (CIT) fund service business.
Under the agreement, Northern Trust provides services for 21 Reliance funds with approximately $7.7 billion in assets under advisement.
Northern Trust’s CIT business grew by approximately 41 percent in assets under administration during the 12 months ending 30 June 2018.
CITs continue to grow in popularity as a fund structure for tax-exempt US retirement plans and other qualified investors, according to Northern Trust.
Because CITs are not sold directly to retail investors, they are subject to different regulatory oversight and typically have a lower cost structure than mutual funds.
Dan Houlihan, head of asset servicing, Americas at Northern Trust, said: “We are excited to build on our relationship with Reliance Trust.”
He added: “Our platform is structured to offer fund managers an end-to-end solution that combines Reliance Trust’s expertise and scale as a trustee with Northern Trust’s global operations technology, financial strength and decades of experience supporting CITs and other fund structures.”
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