mutual fund custodian(redirected from Mutual Fund Custodians)
Mutual fund custodian
A commercial bank or trust company that holds securities owned by a mutual fund and sometimes acts as transfer agent for the mutual fund.
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Mutual Fund Custodian
A third party, usually a bank or trust, that holds the securities underlying a mutual fund. The mutual fund custodian may or may not also maintain the records for the mutual fund. The existence of mutual fund custodians is thought to reduce the risk from dishonest brokers by not allowing them to maintain the actual securities. See also: Transfer agent.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
mutual fund custodian
An organization that holds in custody the securities owned by a mutual fund. See also custodian.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.