Glossary

A custodian is a financial institution, typically a bank or trust company, responsible for safeguarding and managing clients' financial assets, such as stocks, bonds, and cash.

Custodians ensure the safekeeping of assets, handle administrative tasks related to investments, and assist with activities like the collection of dividends, interest payments, and the processing of corporate actions. 🔒🏦

For example, if you invest in a mutual fund, the fund's assets will be held by a custodian who ensures their proper management, protection, and compliance with regulations.

Fun fact: One of the world's largest custodian banks is the Bank of New York Mellon (BNY Mellon), which has more than $41 trillion in assets under custody and/or administration (as of September 2021). That's more than double the GDP of the United States! 🌎