Neuberger Berman taps J.P. Morgan Clearing as new custodian

Neuberger Berman Group LLC has chosen J.P. Morgan Clearing Corp. as its clearing and custody provider, ending an 18-month relationship with Broadridge Financial Solutions Inc., Neuberger announced today. Neuberger chose Broadridge subsidiary Ridge Clearing as its custodian after freeing itself from bankrupt Lehman Brother Holdings Inc. and became an employee-owned money manager. Broadridge announced in November that it plans to sell Ridge Clearing to Penson Worldwide Inc. and its Penson Financial Services Inc. subsidiary. Neuberger's move to J.P. Morgan is expected to occur during the second quarter, and it will affect approximately 50,000 client accounts, Neuberger said in a press release. Neuberger, which manages $173 billion in assets, selected J.P. Morgan “following a thorough due diligence process,” the firm noted. Separately, the Financial Times reported today that Neuberger will soon list its first distressed debt fund on the London exchange. A spokesman for the firm declined to confirm the report. Neuberger already has a private-equity fund on the same exchange.