According to the announcement, the additions to the Hedge Fund Monitor product are designed to improve automation and straight-through processing. New features will enable Northern Trust’s Funds of Hedge Funds (FoHF) clients to view their quickest and most cost-effective liquidity options at any time, and lot level liquidity details will now be reported on screen.
Automation updates to Northern Trust’s Hedge Fund Monitor product allow Northern Trust clients to enter multiple trades on a single screen, including multiple trades on a single portfolio and to instruct a single trade and allocate it across multiple portfolios. Subject to terms and conditions, this will enable a client to switch hedge fund investments between multiple portfolios without necessarily having to declare each switch to the market.
Northern Trust’s registration process will allow clients to switch hedge fund investments without incurring difficulties with capacity such as lockups (the window of time in which investors of a hedge fund are not allowed to redeem or sell shares) and gates (a restriction placed on a hedge fund limiting the amount of withdrawals from the fund during a redemption period).
“Eliminating manual processing and enabling access to robust information are key aspirations for fund of hedge fund managers,” said Ian Headon, Northern Trust’s asset servicing product manager for alternative investments, in the announcement. “These latest enhancements from Northern Trust enable our clients across the globe to streamline manual entries, reduce operating overheads, and improve internal reporting.”