Northern Trust’s hedge fund middle-office solution is an extension of Investment Operations Outsourcing. According to the firm, a key piece of the solution is Web Trade Services, a trade-processing innovation that has been available to traditional asset managers as an operations outsourcing component. Northern Trust introduced the range of hedge fund services in recent weeks to support a fund launched by New York-based Julius Baer Investment Management LLC (JBIM).
The provision of hedge fund middle-office services includes automated trade matching, derivatives processing, reconciliations, and connectivity to multiple prime brokers, according to the firm.
Northern Trust’s middle-office services for hedge funds facilitate trade communications between the investment manager front office, prime brokers, trade-matching utilities for over-the-counter and exchange-traded securities, and third-party administrators. In the case of JBIM, Northern Trust is providing hedge fund administration services along with middle- and back-office support through Investment Operations Outsourcing.
The operational efficiencies gained by linking these businesses together allow Northern Trust to efficiently process and communicate at every point in the hedge fund lifecycle – an efficiency that manifests itself in speed of trade capture, portfolio valuation, reconciliations, and reporting, according to the firm.