Signature Financial Group has formed a subsidiary to provide users of its hub-and-spoke investment structure with custody, fund accounting, transfer agency, and fund-administration services.
The subsidiary, Signature Financial Services Inc., will give customers "one stop, one source" processing and lower costs, the company said.
Signature chose Investors Bank and Trust to provide support services to the unit.
Hub-and Spoke Accounting
Signature introduced the hub-and-spoke concept in 1990 and this year received a U.S. patent from for the accounting system that operates the system.
The innovative structure enables mutual fund companies to manage fund assets as a single pool, or hub, and to offer them to different investors at different prices through funds, or spokes, that invest in the pool.
There are now 61 hubs and 84 spokes, with more than $12 billion in total assets, according to Signature. The company expects that number to double in the next six months.