Northern Trust to Provide Asset Servicing Solutions to Fundsmith


Northern Trust (NTRS) has been picked by London-based Fundsmith SICAV to provide the latter with accounting, transfer agency, and global custody services. Northern would also be providing custodial services to Fundsmith’s U.K. and U.S.-based funds.

As of December 31, 2020, Fundsmith held more than $45 billion in assets under management. Notably, in March, the company launched a new strategy, named Fundsmith Sustainable Equity Fund, to its Luxembourg Fund range.

Furthermore, Fundsmith will have access to Northern’s integrated trading solutions, combining worldwide trading expertise in equities and fixed income with global market reach, superior liquidity, and an integrated middle and back-office service. (See Northern stock chart on TipRanks)

Toby Glaysher, head of Global Fund Services, International at Northern, said, “Northern Trust’s technology, investor servicing and trading capabilities make us well-placed to comprehensively support Fundsmith’s business planning and range of investment strategies – and this extension of our relationship reflects the strong synergies between our organisations.”

On June 17, KBW analyst Michael Brown downgraded the stock to Hold with a price target of $128. This implies 14% upside potential to current levels.

Brown says that as the Federal Reserve recently reflected hawkish sentiments towards interest rates in its dot plot, markets might be approaching a rate hikes scenario earlier than expected. The downgrade reflects his rising rate sensitivity analysis.

Consensus among analysts is a Hold based on 4 Buys, 5 Holds, and 2 Sells. The average Northern analyst price target stands at $117.09, which implies upside potential of 4.1% from current levels. Shares have gained 18.1% so far this year.

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