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Term

Custodian

Also: custody

The institution that safekeeps a portfolio's assets.

A custodian holds and settles assets and reports on them, separately from the adviser who manages them. The separation of custody from advice is a basic safeguard for client wealth.

Related terms

Asset allocation How a portfolio is divided among asset classes such as equities, bonds and alternatives. Benchmark A reference index used to judge a portfolio's performance and risk. Beta A measure of how much an asset moves with the broader market. Capital market assumptions Forward-looking estimates of return, risk and correlation for each asset class. Capital preservation An objective that prioritises protecting wealth over growing it. Concentration risk The danger that arises when too much wealth sits in a single asset or exposure.

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