Northern Trust Expands Automated Solutions for Investment Operations Outsourcing

Strategic Insights -

Northern Trust has expanded its automated solutions for Investment Operations Outsourcing clients to cover the processing of syndicated bank loans, a growing alternative asset allocation for specialist investment managers. The implementation of Markit WSO Services on Northern Trust's platform offers efficiency in trade capture, position reporting, and cash management. This solution enhances the ability of investment managers to manage complex, non-standard assets across multiple portfolios and accounts.

Key Takeaways:

  • Northern Trust has expanded its automated solutions for Investment Operations Outsourcing clients to cover syndicated bank loans.
  • The implementation of Markit WSO Services on Northern Trust's platform offers efficiency in trade capture, position reporting, and cash management for investment managers utilizing syndicated bank loans in fixed income and hedging strategies.
  • Northern Trust Investment Operations Outsourcing provides middle- and back-office services such as trade services, performance measurement, client reporting, fund accounting, and custody to investment managers worldwide.
  • Syndicated bank loans are growing in popularity, with clients increasing their holdings by 30 percent or more per year.
  • Northern Trust's solution can enhance the ability of investment managers to manage complex, non-standard assets across multiple portfolios and accounts.
  • The Markit WSO Services tool works across multiple accounts and various instruments such as term loans, revolvers, letters of credit, delayed draws, and bridge loans.
  • Northern Trust is integrating this robust processing solution with Web Trade Services, a trade-matching solution, to advance straight-through processing initiatives across traditional and alternative asset classes.
  • Northern Trust's Investment Operations Outsourcing business offers a full range of middle- and back-office services tailored to the individual needs and requirements of each investment manager.

Statistics:

  • 30 percent or more: The increase in clients' holdings of syndicated bank loans per year.
  • Multiple portfolios and accounts: The asset class that Northern Trust's solution can enhance the ability to manage synergistically.
  • Multiple accounts: The accounts that Markit WSO Services works across.
  • Various instruments: The types of instruments that Markit WSO Services can handle, including term loans, revolvers, letters of credit, delayed draws, and bridge loans.

Sources:

  • Northern Trust, "Northern Trust expands automated solutions for Investment Operations Outsourcing"
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