A custodian bank, or custodian, offers specialized securities services. A custodian safeguards the assets of asset managers, insurance companies, municipalities and corporations. Those assets may include stocks, bonds, or other electronic or physical assets.

A custodian bank can also provide more than provide asset protection. Other custody bank services might include trade settlement, foreign exchange, securities lending or tax reclaim services

UMB is a full-service partner for global and domestic custody. Contact the UMB Institutional Custody team.

Global custody is simply custody services on a global scale. Custodian banks are “global custodians” if they safe-keep assets for their clients in multiple jurisdictions around the world.

UMB is a full-service partner for global and domestic custody. Contact the UMB Institutional Custody team.

A fund custodian is a bank responsible for the safekeeping of a fund’s assets and securities. This includes keeping records of ownership and facilitating ownership changes.

Fund custodians work closely with asset managers, who depend on custodians for services including straight-through securities processing, domestic and global trade settlement, and automated cash management.

Registered investment funds, like mutual funds, are required by law to have a custodian bank that holds securities on the fund’s behalf. A custodian’s oversight increases a fund’s transparency and safety of investments for its investors.

While unregistered funds may not be required to have a bank custodian, they can benefit from other custody services. These benefits include providing third-party oversight, lines of credit, cash management, and assisting with investor on-boarding.

UMB offers specialized custody services for mutual funds and alternative investment funds. To learn more, contact the UMB Institutional Custody team.

A financial institution can serve as a document custodian to manage a corporate borrower’s loan documents in safekeeping. While these can be physical documents held in the custodian’s vault, more often loan documents are executed electronically. By having the custodian hold documents in their electronic repository, they can be validated by the custodian and reconciled to the client’s portfolio holdings, providing stronger audit controls.

To learn more, contact the UMB Institutional Custody team.

Reverse repurchase agreements, often known as “reverse repos,” can serve as an alternative to a traditional line of credit. Various types of marketable, liquid securities are considered eligible for a reverse repo program. Less liquid, more esoteric securities may also be considered on a case-by-case basis.

Depending on a client’s individual needs, a reverse repo can be an attractive option for an investment manager seeking additional liquidity.

To learn more about this alternative to a traditional line of credit, read the UMB blog “Strengthening liquidity with committed reverse repurchase lending facility.”