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Northern Trust Press Release

 
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Northern Trust Survey: Rising Costs and Internalising Asset Management by Super Funds Drives Adoption of Outsourced Trading

Melbourne and Sydney, May 02, 2019 —

According to a recent Northern Trust survey, nearly 80 percent of Australian-based superannuation funds and asset managers would consider an outsourced trading solution to help meet their end-to-end trade execution and middle office needs. 

Over 80 percent of superannuation funds and asset managers also reported a rise in overall operating costs, with 75 percent of respondents attributing these higher costs to ensuring regulatory compliance or meeting technology and staff expenses.

The findings are from a survey of superannuation funds and asset managers attending Northern Trust’s (Nasdaq: NTRS) Capital Markets roadshow in Sydney and Melbourne in April 2019. Approximately 100 delegates from Australia’s leading superannuation funds and asset managers with assets over AU$2 trillion (approximately US$1.5 trillion), and consultants met Northern Trust’s capital markets experts over two days.

Gary Paulin, global head of Integrated Trading Solutions, Northern Trust Capital Markets, said:

“Getting to grips with costs is a critical consideration for both asset managers and superannuation funds who are considering insourcing. The costs and risks associated with building and running a trading desk are significant. Regulators, clients and market participants are all demanding more information, greater detail, and stringent oversight and monitoring. To that end, Northern Trust’s Integrated Trading Solutions will help superannuation funds and asset managers drive efficiencies through a scalable and flexible operating model and ensure focus on core investment decisions.”

Angelo Calvitto, country executive - Australia, Northern Trust, said: “Superannuation funds and asset managers must work around a growing raft of global, regional and local regulation. The increasing risk of non-compliance with new regulatory obligations and complexity in achieving best-execution calls for a robust compliance and regulatory framework, which is core to Northern Trust’s outsourced trading services solution. An outsourced partner for trading and execution can provide significant value by allowing funds to insource value and outsource complexity.”

The Integrated Trading Solutions model presents a bespoke solution for Northern Trust’s clients by bringing together more than 150 years of trading experience, combined with a robust compliance, regulatory and middle office support structure, underpinned by leading technology.  Further details can be found in the supporting Northern Trust white paper “Catching Wave the: Global Outsourcing Trends Heading Down Under”.

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 a global presence with offices in 20 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2019, Northern Trust had assets under custody/administration of US$10.9 trillion, and assets under management of US$1.2 trillion. For more than 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. Global legal and regulatory information can be found at http://www.northerntrust.com/disclosures.

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