Northern Trust has enhanced its services for defined contribution (DC) sponsors to help them more efficiently manage their custom, multi-manager funds.
Using the SunGard Global Network (SGN) Funds platform, Northern Trust offers more flexibility to support trading for multi-manager white label funds for DC plans.
In order to manage risk, plan sponsors have increasingly chosen multi-manager portfolios or “white label” funds that provide diversification from the risk of using one investment manager for plan investment options. Operationally, this requires additional, connected portfolio management and trade routing capabilities for the record keeper and custodian banks. SunGard receives trades from record keepers, performs pre-defined trade splitting, and as a member of the National Securities Clearing Corporation (NSCC), sends the corresponding trades to the NSCC and fund managers.
“As our clients have increasingly chosen custom, white label funds as an option for their participants, we want to give them more flexibility,” says Tom Lauer, Defined Contribution Consultant at Northern Trust. “SunGard’s solution gives clients a broader selection of record keepers, as not all record keepers currently facilitate this process.”
“Retirement plan providers continue to operate in an environment of increasing regulatory requirements amid cost containment efforts,” says Bob Santella, president of SunGard’s global trading business. “SunGard Global Network Funds’ expanded portfolio management and trading capabilities provide an automated solution to manage custom investment options, helping to increase the capacity and efficiency of the trading process.”