mutual fund custodian

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
References in periodicals archive ?
When the double-category method is used, the taxpayer also needs to specify to the mutual fund custodian whether the shares are short-term or long-term.
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