NORTHERN TRUST To address the increasing demands for transparency and operational controls faced by alternative investment managers, Northern Trust Hedge Fund Services today announced the release of the Portfolio Analytics and Compliance (PAC) service, a comprehensive guideline testing and portfolio metrics service allowing hedge fund managers, managed account platform sponsors, and other clients on Northern Trust's Omnium® technology platform to monitor characteristics and guidelines at every level of their portfolios.
Using a proprietary reporting engine fully integrated into Northern Trust Hedge Fund Services' platform, PAC can produce reports with custom metrics and calculations based on virtually any data element maintained by the system. Examples include, but are not limited to:
• Daily investment guideline testing against investment restrictions such as market value exposures, factor sensitivity exposures, liquidity requirements, or asset class and issuer restrictions, among others.
• Daily portfolio metrics reporting, including tracking of industry/sector exposures, weighted average durations, naked option exposures, hedge ratios, and the ability to identify movements or deviations in the portfolio's profile or strategy
• Risk profile monitoring, such as changes to interest rate, credit spread and volatility exposure
• Tracking exposure concentrations by issuer, asset class and counterparty
• Monitoring shifts in portfolio liquidity
The Hedge Fund Services team at Northern Trust customizes reporting outputs in consultation with clients and performs daily quality controls so each client receives reporting and updates that allow them to effectively manage their portfolios. PAC is available to any client supported on the Omnium technology platform.
"PAC goes beyond traditional compliance reporting," said Peter Sanchez, head of Northern Trust Hedge Fund Services. "By leveraging the full range of data available in our systems, reports can support our clients' needs from both a compliance and governance perspective. And because of the flexibility of our data model, reporting can be generated at every level of a firm's structure, from total firm to individual fund to strategy to an individual trader or portfolio manager. With hedge fund managers focusing on enhanced risk management and managed account platforms growing in popularity, our clients require this level of post-trade analysis to ensure both sound oversight and compliance with investment guidelines."
A recent Northern Trust Hedge Fund Services survey of hedge fund managers and investors found that more than half of all investors desired more transparency from their managers, even as many managers believe their investors to be satisfied with their current levels of transparency.
"Enhanced transparency and robust governance can be an important differentiator for alternative asset managers with prospective investors," Sanchez said.
About Northern Trust Hedge Fund Services
Northern Trust Hedge Fund Services (NTHFS) is a leading provider of administration and middle office services for hedge funds and institutional investors with complex portfolios. NTHFS' capabilities change the relationship between managers and their administrator though a full-service, front-to-back operating model that can support any asset or strategy with unparalleled flexibility in data management and reporting. Our Omnium® technology platform offers clients unsurpassed access through real-time transparency, interactive utilities, and virtually unlimited strategy and attribution tagging capabilities. Our services are supplemented by an expert professional staff that understands their clients and are backed by the scale, stability, and financial strength of one of the world's most respected financial institutions. Our mission is to deliver Operational Alpha®: positioning clients for success by giving them the ability to focus on executing their strategies.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 20 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2015, Northern Trust had assets under custody of US$6.1 trillion, and assets under management of US$960.1 billion. For 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S.http://www.northerntrust.com/disclosures.
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