FinTech firm Broadridge is taking over the retirement plan custody and trust assets from TD Ameritrade Trust, expanding its pension fund and third-party support services.
The acquisition of the assets marks the continued expansion of Broadridge’s Matrix Financial Solutions, its mutual funds and exchange traded fund (ETF) trade processing platform, for the US pension industry with access to more than 25,000 funds.
The additional capacity to provide directed trustee, custody, mutual fund and ETF trading services will enable Broadridge to meet a wider set of needs and serve a greater set of retirement stakeholders.
It will also allow it to expand services to the third-party administrators, financial advisors, record-keepers, banks and brokers it supports.
“The TD Ameritrade trust and custody assets are a strong complement to Broadridge’s established mutual fund and retirement business, and uniquely positions us as one of the largest neutral, independent service providers of custodial and sub-custodial solutions,” said Michael, Liberatore, head of mutual fund and retirement solutions, Broadridge.
Upon completion of the transaction, Broadridge’s Matrix platform is expected to have an estimated $420 billion in assets under administration and over 118,000 plan accounts in custody.
Terms of the deal were not disclosed, and the transaction is expected to be completed by the end of the second quarter.
TD Ameritrade stated its decision to sell off a part of its retirement plan trust business will enable it to focus on its core registered investment advisor (RIA) custody business.
“After careful consideration, we decided to exit a part of our retirement plan trust business, one that’s better served by a scale player dedicated to expanding and investing in this business. Broadridge is a leader in this space with the proven technology and experience to provide advisors with access to innovative solutions and high-level client service,” said Tom Nally, president of TD Ameritrade Institutional.
“With this deal, TD Ameritrade Institutional can increase its focus on developing and delivering industry-leading technology, products and service that can help independent RIAs grow and compete.”