Janus Capital Group Inc (NYSE:JNS) is spreading its global net with CITI’s Network 3.0
Janus Capital Group Inc (NYSE:JNS) has appointed CITI to provide it with a suite of trustee and global custody services for its Dublin-registered funds. This new mandate will extend CITI’s current relationship with the company. CITI already provides accounting, fund administration and transfer agency services to JNS. Global fund managers are constantly on the lookout for new markets for more investment opportunities and seek to develop products that will offer access to various geographical areas, especially in the emerging markets.
The new network
CITI recently-launched Network 3.0, an investor service solutions suite that helps clients like Janus Capital Group Inc (NYSE:JNS) expand their reach and spread their business with the use of its global network across more than 95 countries. Another plus is CITI’s local-market expertise. Janus has chosen to widen its relationship with the bank and it hopes that latter’s Integrated Custody program will reengineer operational processes and enhance technical platforms to deliver top-tier service levels such as 24-hour instruction-processing, real-time deadlines and improved risk management.
Who is a custodian?
A custodian is an organization that looks after assets such as shares, bonds and cash. It physically holds all those ownership certificates or assets and keeps track of them. The company that makes use of a custodian service will pay the custodian a fee for the services rendered.
Primarily, global custodians like CITI are responsible for the safe-keeping of assets as well as cash in various jurisdictions, within the country and internationally, on behalf of their respective clients. These clients are typically money managers, institutional investors and dealers/ broker/dealers. Custody-eligible securities such as bonds, gilts, equities, warrants etc will be held in the local markets of investments for their clients. These could be with the custodian’s branch, or in some cases with a local custody provider. This local custody provider works on behalf of the global-custodian and will be contracted into the custodian’s ‘global network’.
The global custodian will also maintain cash/ cash accounts, effect withdrawals and deposits as well as manage various other cash transactions. As businesses such as Janus Capital Group Inc (NYSE:JNS) go global in a big way, services such as the ones that CITI provides are a need and a boon.