Solution Supports Demand for Predictive Risk Tools; Clients include International Fund for Agricultural Development
LONDON–(BUSINESS WIRE)–In line with an increasing trend toward risk analytics on demand, Northern Trust (Nasdaq: NTRS) successfully implemented its hosted risk solution for several major clients in 2012, including the International Fund for Agricultural Development (IFAD).
Hosted Risk Solutions enables direct access to market leading risk engines and sophisticated analytical tools for institutional investors, regardless of the time or location. Northern Trust’s solution integrates BarraOne – MSCI’s integrated platform for multi-asset class investment risk management and performance attribution – with Northern Trust’s custody, accounting, fund administration and collateral management platform to deliver a cost efficient risk solution.
“Our hosted risk solution has been implemented against a backdrop of heightened market volatility and increasing investment complexity, resulting in a marked rise in demand for even closer access to meaningful risk information,” said Ian Castledine, global head of product management for Investment Risk and Performance Measurement at Northern Trust. “It enables clients to monitor and analyse risk metrics, perform ad hoc stress and scenario testing, run optimisation cases and back test potential strategy changes, all while leveraging our integrated data and technology platform and expert consultant support.”
The Northern Trust solution enables clients to:
- access holdings based, forward looking risk analysis underpinned by the Barra Integrated Model, a market leading, multi factor risk model
- gain valuable portfolio insight using total risk metrics and multiple Value at Risk methodologies
- incorporate liability cash flows and utilise a consistent risk methodology to model both assets and liabilities
- access extensive stress testing and custom scenario analysis capabilities to understand the impact of different market conditions on assets and liabilities
“Northern Trust’s hosted risk solution provided us with the tools and metrics necessary to implement time critical risk budgets for investment allocation decisions,” said Natalia Toschi, head of asset liability management at International Fund for Agricultural Development. “Furthermore, the expertise provided by Northern Trust’s risk consultants in interpreting data and providing valuable recommendations as well as training was also critical to the success of our new investment process.”
Northern Trust’s integrated risk management platform provides end to end operational support to include data loading, daily position maintenance and asset modelling alongside secure data storage, a flexible reporting portal and a global team of experienced investment risk consultants. It can also help satisfy clients’ increasingly sophisticated risk management needs as well as help them to fulfil their complex regulatory commitments, such as the Solvency II requirements for insurance companies in Europe.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2012, Northern Trust had assets under custody of US$4.8 trillion, and assets under investment management of US$749.7 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust.