Press release
Northern Trust: Asset Owners Aim to Drive Investment Performance with In-House Management
White paper analyzes evolving investment management preferences among sophisticated asset owners CHICAGO & LONDON--(BUSINESS WIRE)-- Large global asset
About this update from Northern Trust Corporation
[{"type":"text","content":"\nWhite paper analyzes evolving investment management preferences among sophisticated asset owners\n\n CHICAGO & LONDON--(BUSINESS WIRE)--\nLarge global asset owners increasingly manage greater portions of their investment portfolios in-house as they look for ways to reduce fees, enhance control and drive overall investment performance, according to a new white paper authored by Northern Trust. The paper, The Changing Tide: The Evolution of the Asset Owner Investment Model which includes insights from senior investment executives at institutions that represent more than $300 billion in global assets, also highlights the importance of driving ‘Operational Alpha,’ particularly in a challenging environment.\n\n\nMotivated by rising costs, new technology, global regulatory change and a drive toward fund consolidation, almost one out of five (19%) institutional investors have increased the proportion of assets that are managed in-house in recent years.i\n\n\n“As asset owners evolve their investment models to include more in-house management they are reevaluating the process from start to finish,” said Dan Houlihan, head of Asset Servicing, Americas at Northern Trust. “They see opportunities to increase efficiencies, control costs and achieve regulatory compliance by outsourcing non-core functions across their back, middle and front office. These include a variety of activities: from collateral management to foreign exchange; from investment operations to compliance monitoring; from client reporting to trade execution.”\n\n\n“Whether you are an asset owner considering in-house asset management for the first time, or looking to increase the proportion of assets you already manage directly, you need to understand where you will be adding value in the process,” said Mark Austin, head of UK Institutional Investor Group at Northern Trust. “For many, it is about focusing on their core investment propositions and strategies. Ancillary components of the operational value chain can be outsourced to specialists.”\n\n\nAccording to the white paper, before insourcing portfolio management asset owners should consider the full spectrum of costs and risks as well as the opportunities – including implementation costs, investment expertise, technology requirements, and regulatory compliance, as well as the need to deliver operational efficiency.\n\n\n...