With the recent Global Financial Crisis are you seeing a trend for pensions and investment managers to have dual custody arrangements as a risk mitigant?
lbrown
10-26-2009, 12:38 PM
I would have thought it would be a ‘trade off’ between lowering risk exposure by spreading the risk across more than one custodian and the added complexity and cost through custody fees. Surely spreading assets across dual custodians would only be viable for very large funds?
Perhaps, however, one would gain hidden economies with dual custodians… i.e. competition between the two, keeping their service and fees competitive?