Northern Trust has announced it has been appointed by Hermes Investment Management to provide currency management services for its Irish fund range.
The bank’s service comprises portfolio overlay, share class hedging and ‘look through’ hedging solutions to help asset managers and asset owners manage and mitigate currency volatility, while actively supporting distribution strategies. It adds that its scalable integrated operating and technology model delivers active monitoring against target hedge ratios, unrealised P&L views, real time performance attribution analytics and detailed transparency and oversight dashboards.
“Northern Trust have been able to automate our sophisticated currency management investment process and deliver comprehensive reporting and analytics for us,” says Ian Kennedy, chief operating officer, Hermes Investment Management. “This has increased operational efficiency and enhanced oversight across our substantive Irish fund range. All of our currency management requirements have been seamlessly integrated with Northern Trust’s investment operations outsourcing services to provide a comprehensive solution, allowing us to continue to focus on generating value for our investors.”
Clive Bellows, head of Global Fund Services, Europe, Middle East and Africa, Northern Trust, adds, “We are delighted to have partnered with Hermes, a long-term client of Northern Trust, to develop this tailored solution. The currency management service we have implemented to meet Hermes’ precise investment objectives is underpinned by robust process, superior technology, transparency and an interactive reporting and monitoring suite.”
In addition to investment operations outsourcing services, Northern Trust provides a range of asset servicing solutions to Hermes, including fund administration, global custody, collateral management, performance measurement and regulatory reporting.