Northern Trust Expands Automated Solutions for Investment Operations Outsourcing

Northern Trust has expanded its automated solutions for Investment Operations Outsourcing clients to cover processing of syndicated bank loans. The implementation of Markit WSO Services on Northern Trust's Investment Operations Outsourcing platform offers efficiency in trade capture and position reporting as well as cash management for investment managers that utilize syndicated bank loans in fixed income and hedging strategies.

The growth of syndicated bank loans as an alternative asset allocation by specialist investment managers has led to a 30 percent or more per year increase in client holdings. Northern Trust's solution can enhance their ability to manage these complex, non-standard assets across multiple portfolios and accounts. "As clients increase their holdings of syndicated bank loans, our solution can enhance their ability to manage these complex, non-standard assets across multiple portfolios and accounts," said Paul Fahey, Director of Global Product Management and Development for Global Fund Services (GFS) at Northern Trust.

Markit WSO Services enhances controls and efficiencies around the bank loan lifecycle, including accurate trade capture, timely payments, and comprehensive reporting. The tool works across multiple accounts and a variety of instruments such as term loans, revolvers, letters of credit, delayed draws, and bridge loans. Northern Trust integrates the Markit tool with its global operations and technology platform, which houses the supporting data and documentation required for all bank loans, and has a dedicated team for syndicated bank loan processing.

Key Takeaways:

• Northern Trust has expanded its automated solutions for Investment Operations Outsourcing clients to cover processing of syndicated bank loans.
• The implementation of Markit WSO Services on Northern Trust's Investment Operations Outsourcing platform offers efficiency in trade capture and position reporting as well as cash management.
• The growth of syndicated bank loans as an alternative asset allocation by specialist investment managers has led to a 30 percent or more per year increase in client holdings.
• Northern Trust's solution can enhance managers' ability to manage these complex, non-standard assets across multiple portfolios and accounts.
• Markit WSO Services enhances controls and efficiencies around the bank loan lifecycle, including accurate trade capture, timely payments, and comprehensive reporting.
• The tool works across multiple accounts and a variety of instruments such as term loans, revolvers, letters of credit, delayed draws, and bridge loans.
• Northern Trust has a dedicated team for syndicated bank loan processing and integrates the Markit tool with its global operations and technology platform.
• This expansion is further evidence of Northern Trust's commitment to delivering expanded asset processing support and reporting to its investment manager clients.

Statistics:

• 30 percent or more per year increase in client holdings of syndicated bank loans (Source: Northern Trust)
• 4,000 funds serviced globally by Northern Trust's Global Fund Services (Source: Northern Trust)
• $3.6 trillion in assets under custody as of June 30, 2010 (Source: Northern Trust)
• $603 billion in assets under investment management as of June 30, 2010 (Source: Northern Trust)
• 430 investment managers encompassed by Northern Trust's Global Fund Services (Source: Northern Trust)

Sources:

• Northern Trust Corporation (Nasdaq: NTRS)
• Markit WSO Services
• Global Fund Services (GFS) at Northern Trust
• Paul Fahey, Director of Global Product Management and Development for GFS at Northern Trust
• Jeff Potter, GFS Product Manager at Northern Trust
• Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A