Northern Trust has launched a set of compliance monitoring capabilities that will enable clients to monitor their investments in real time according to their own investment guideline criteria.
Criteria can be created to monitor key aspects of holdings within hedge funds, such as the level of portfolio diversification, liquidity risk in the fund, investment strategy and performance attribution.
Benefits include increased automation, transparency and timeliness of information, enabling clients to assess portfolio investments more quickly and in more detail, and to identify areas where the portfolio is breaching guidelines so that action may be taken if necessary.
This is the latest enhancement for clients using Northern Trust’s Hedge Fund Monitor solution, which became available through financial applications company, youDevise, in January 2008.
“As the global economic landscape continues to present challenges, investors in hedge funds need to demonstrate effective control and transparency over their portfolios in addition to a world-class governance and control-focused operating environment,” says Ian Headon, Northern Trust’s product manager for alternative asset administration.
Peter Cherecwich, chief operating officer for corporate and institutional services at Northern Trust, adds: “This latest enhancement to the Northern Trust Hedge Fund Monitor tool is in line with our strategy of managing information for funds of hedge funds and other institutional investors with exposure to hedge funds, including liquidity and counterparty concentration, and enhanced levels of automation and transparency. It follows our other recent Hedge Fund Monitor development that enables investment managers to assess the impact of gates on their liquidity in real time, and demonstrates our continued commitment to supporting our fund administration clients, particularly in challenging economic times.”