Northern Trust will provide fund administration and global custody services to UK investment manager Fundsmith.
The mandate will see Northern Trust support the launch of the Smithson Investment Trust, the largest UK-listed investment trust to launch, which raised a record £822 million at flotation in October last year.
“Appointing Northern Trust means we have an asset servicing partner with the global capabilities, scale and track record required to support Smithson Investment Trust’s operations and future growth,” said Simon Godwin, chief financial officer, Fundsmith.
The Smithson Investment Trust invests in corporates of between £500 million and £15 billion in market capitalisation. The fund’s launch, which was also supported by Northern Trust, surpassed its founders’ initial expectations, with shares available on launch being raised to accommodate investor demand.
Fundsmith will also utilise Northern Trust’s Integration Trading Solution, using the custodian for its outsourced trading services and integrated middle and back-office services.
“By delivering global trade execution, matching, and compliance reporting through Integrated Trading Solutions, Northern Trust is actively supporting our client’s commitment to delivering value and cost-efficiencies for investors,” added Guy Gibson, global head of Institutional Brokerage, Northern Trust Capital Markets.
“Our trade execution middle-office solution is helping the Fundsmith team free-up capital and resources, while allowing them to exercise the high levels of oversight and governance that they and their investors demand.”