Northern Trust will liquidate its Northern Trust Collective Stable Asset Fund effective June 30, confirmed John O'Connell, a company spokesman.
Mr. O'Connell said in an interview that Northern Trust decided to liquidate the $900 million fund, which has about 15 clients, because it was becoming difficult to obtain wrap insurance, which guarantees the book value of participants' investments.
Mr. O'Connell said Northern Trust is working with clients to offer alternative options to the stable value fund.
