Commentator – Jack Lowenstein, Morphic’s Managing Director & Joint CIO

Q: What are the dangers for consumers in investing in products that don’t have arm’s length custody arrangements? 

A: We believe strongly that investors should ensure there are arms’ length custody arrangements at all levels of the investment process. We take great care that this is done for each investment we make in our funds, and believe investors in our funds should do the same for their holdings.

Q: How can investors make sure the products they use have an independent custodian? 

A:We hope our investors always read the fine print of the vehicles through which they invest in our funds. It is worth the effort.

Q: Do you think all custodians should have to be licensed and meet similar professional standards? 

A: Custody is, in our view something that requires regulation, and also a commitment by the custody provider to make sure their staff is held to high professional standards.