Forge Trust provides custody services with preferred pricing and a streamlined integrated experience to clients of Phoenix American. The partnership will enable Phoenix American client sponsors/issuers to offer their investors access to custody services for their qualified investment funds at rates that greatly reduce the typical effect custody costs have on net investment returns. Investors will also benefit from Forge Trust’s advanced integrated investor platform and streamlined data exchange between Phoenix American and Forge Trust providing continually updated investor information.
Reducing the Costs and Frustrations of IRA Investing
The partnership between Phoenix American and Forge Trust addresses a key challenge in the alternative investment industry. IRA investors in alternative funds account for a large portion of a typical capital raise for sponsors. These investors are typically required to establish a dedicated custodian account with a provider that has an existing relationship with the sponsor. The paper-intensive process of establishing the new account, then initiating a transfer of qualified funds from another custodian, and then making the investment is often time-consuming and frustrating. In addition, annual fees charged by alternative investment custodians can dig deeply into investment returns. These can be significant obstacles for IRA investors. The combination of reduced custody rates and a facilitated integration between the two companies improves the overall investor experience and can effectively enhance investment returns.
“This partnership not only saves real money for IRA investors, it streamlines the process of making the investment,” said Patrick Hughes, President of Forge Trust. “Our easy-to-navigate, transparent and secure platform guides investors through the process. White glove customer service provides any additional support they may need to complete the investment.”
A More Mainstream Investor Experience
The partnership between Phoenix American and Forge Trust will also feature a technical integration to modernize the investor’s day-to-day experience. Automated position files from Phoenix American will ensure that investor accounts at Forge Trust are always up to date with the latest changes. Phoenix American and Forge Trust will work together to support the customer service needs of client investors.
“Part of our mission at Phoenix American is to help our clients make their products as accessible to investors as mutual funds,” said Andrew Constantin, Senior Vice President, Operations at Phoenix American. “Our partnership with Forge Trust helps move the industry in that direction and helps continue bringing alternative investments into the mainstream.”
About Phoenix American
Phoenix American provides full-service fund administration, fund accounting, transfer agent and investor services as well as sales and marketing reporting to fund sponsors in the alternative investment industry. The Phoenix American aviation ABS group provides managing agent and accounting services for asset-backed securitizations in the commercial aviation leasing industry. The company was founded in 1972, has six offices worldwide and is headquartered in San Rafael, CA.
About Forge Trust
Forge Trust Co. is a non-depository trust company with $13.2 billion in assets under custody (as of 12/31/2020), with offices in San Carlos, California and Sioux Falls, South Dakota. Chartered in 2008, the firm is regulated by the State of South Dakota’s Division of Banking and acts as a custodian of retirement accounts across a wide range of private investments.
Forge Trust provides administrative and custodial services to investors through our self-directed retirement accounts. Through advanced technology, we dedicate ourselves to providing the proper diligence and care, across a wide range of private investments.
Forge Trust is a wholly owned subsidiary of Forge Global, Inc., a premier trading, settlement and custody partner providing liquidity solutions to private companies and investments into the private markets.
SOURCE Phoenix American Financial Services