Northern Trust Survey: Half of Asian Institutional Investors and Investment Managers Consider Middle Office Outsourcing
June 15 2017 - 5:27AM
Business Wire
Provider’s IT Infrastructure seen as Primary
Consideration
Fifty percent of Asian pension funds and investment managers
attending Northern Trust’s (Nasdaq: NTRS) advisory seminar for
clients, hosted in late May in Hong Kong, said their organisations
had outsourced or considered outsourcing some middle office
functions in the past five years. However, just over a third (38
percent) had actually implemented an outsourcing project in that
period.
“With evolving regulatory requirements, a low-yield environment
and continuing pressure on pricing and cost structures, both asset
owners and asset managers are facing considerable challenges and
increasing complexity in the market,” said Caroline Higgins, head
of Global Fund Services for Asia, at Northern Trust. “Some
institutional investors have found value in middle office
outsourcing, which allows them to leverage the expertise of global
providers, such as Northern Trust, with capabilities and servicing
hubs in Asia. We expect to see more uptake of middle office
outsourcing in the region as institutional investors increasingly
see the solution’s benefits.”
The survey revealed that institutional investors’ decisions
about outsourcing are most influenced by perceptions of the service
provider’s IT infrastructure, with 58 percent of respondents citing
it as the ‘most important driver’ in outsourcing decisions. Cost
considerations were top of the list for only a quarter (25 percent)
of those surveyed, and just 17 percent considered a provider’s
scale to be the most important driver.
Commenting on the survey findings, Higgins added: “Northern
Trust invests in cutting-edge technologies and we are well-placed
to support institutional investors through our robust IT
infrastructure. This survey underlines that middle office
outsourcing can offer sophisticated analytics, more accessible and
up-to-date data, as well as keep pace with market, regulatory and
technological developments.”
Northern Trust globally provides depositary, custody, fund
administration, investment operations outsourcing, and regulatory
solutions to investment managers worldwide and across the spectrum
of asset classes.
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 offices in the
United States in 19 states and Washington, D.C., and 22
international locations in Canada, Europe, the Middle East and the
Asia-Pacific region. As of March 31, 2017, Northern Trust had
assets under custody of US$7.1 trillion, and assets under
management of US$1 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 https://www.northerntrust.com/disclosures.
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Northern TrustEurope, Middle East, Africa &
Asia-Pacific Contact:Camilla Greene+44 (0) 207 982
2176Camilla_Greene@ntrs.comorUS & Canada Contact:Doug Holt+1
312 557 1571Doug_Holt@ntrs.com
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