Broadridge Expands CIT Offerings with Northern Trust Partnership
Broadridge Financial Solutions, through its subsidiary Matrix Trust Company, has announced the launch of new index collective investment trusts (CITs) in partnership with Northern Trust Investments, Inc. These CITs aim to provide investment advisors, plan sponsors, and record-keepers with affordable options for beta exposure.
About the New CITs
The new CITs include a series of index funds designed to expand investment options for clients. These funds are intended to deliver low-cost beta exposure. Northern Trust Investments, Inc. has powered the launch. It brings its expertise in managing high-quality investment products.
The CITs will invest in:
- Northern Trust’s Aggregate Bond Index.
- The S&P 500 Index.
- The ACWI Ex-US Index.
These investments aim to offer low-cost beta exposure to meet the needs of retirement plans and other investment strategies.
Features of CITs
The index CITs are targeted at ERISA plans of all sizes, ensuring broad accessibility.
Expense ratios are set competitively:
- Large cap index fund: 2 basis points (bps).
- Bond index fund: 4 bps.
- Non-US index fund: 6 bps.
The CITs are available on Matrix Trust’s National Securities Clearing Corporation platforms. This availability supports seamless integration into existing portfolios and flexible use as building blocks in various investment plans.
Effects on Traders
This launch will have these benefits for users:
Cost Efficiency
Traders and investors benefit from low expense ratios. It allows them to access diversified market exposure at reduced costs.
Diverse Market Access
The new CITs provide exposure to major market indices, including bonds, U.S. large caps, and non-U.S. equities. It supports varied portfolio strategies.
Flexibility for Retirement Planning
Investors focused on retirement can utilize these CITs as cost-effective options for building robust retirement portfolios.
Institutional-Grade Management
With Northern Trust Investments managing these funds, traders and investors gain confidence in the quality and stability of their investments.
Scalability for Portfolios
The option to integrate these CITs as building blocks within existing models helps investors scale and diversify their investment approaches.
About Broadridge
Broadridge Financial Solutions provides technology and communication solutions for the financial services industry. It contributes to investor communication, proxy voting, and post-trade processing. The company also supports banks, brokers, and asset managers with tools that power capital markets and wealth management processes.
About Northern Trust
Northern Trust is a financial services company. Byron Laflin Smith founded it in 1889. It offers wealth management, asset servicing, asset management, and banking solutions to corporations, institutions, and affluent individuals. The company operates in 19 U.S. states and 20 international locations. As of September 30, 2024, Northern Trust managed $1.6 trillion in assets.
Summing Up
The launch of these new CITs strengthens Matrix Trust’s position in the collective investment trust market. Matrix Trust aims to continue expanding its CIT offerings.
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