Hedge fund manager Bridgewater Associates has appointed Northern Trust to independently replicate certain middle and back-office services for its approximately USD140bn in assets under management, as part of Bridgewater's ongoing back office transformation plan.
In a role that will create approximately 100 jobs in Chicago and Stamford, Connecticut, Northern Trust will provide broad middle-office and back-office services including replicating various administrative processing, trade processing, valuation, real-time reporting, cash management, accounting and collateral management services.
These services will be furnished by Northern Trust independently, as well as mirroring and quality checking middle and back-office services provided by another firm. Northern Trust’s independent review and validation of results will provide Bridgewater Associates and its investors an enhanced level of oversight and controls with respect to fund administration and middle and back-office functions. The arrangement is planned to go live in 2014.
“We welcome this important strategic relationship with Bridgewater Associates,” says Steven L Fradkin, president of corporate and institutional services at Northern Trust. “As one of the largest and most successful hedge fund managers in the world, with a long-standing commitment to transparency and excellence, Bridgewater Associates understands the value of a trusted global partner that can provide an additional check and validation for their clients. This innovative relationship sets a new standard of independence, which will benefit Bridgewater’s clients while reinforcing its leadership in the industry.”
“We are delighted to be working with Northern Trust and to draw on their leading-edge technology and expertise for the benefit of our clients,” says Eileen Murray (pictured), co-president of Bridgewater Associates. “At a time of unprecedented change and uncertainty for investors, Northern Trust’s independent review mandate as part of our ongoing transformation programme at Bridgewater is designed to provide an added level of protection and security for our clients.”
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