Nedgroup Selects Northern Trust for Outsourced Trading Solutions to Support New Fixed Income Platform

Rhea-AI Summary

Northern Trust (Nasdaq: NTRS) has been chosen by Nedgroup Investments to provide outsourced trading through its Integrated Trading Solutions (ITS) for their new in-house multi-boutique platform specializing in fixed income. Nedgroup Investments, managing over $20 billion in assets, will utilize Northern Trust's services for its Global Strategic Bond Fund. This selection highlights a growing trend in outsourcing fixed income trading, with Northern Trust reporting a 144% growth in trade flow activity for their fixed income desk in 2023.

The partnership leverages Northern Trust's flexible ITS solution, extensive liquidity networks, and expert traders to support Nedgroup's fund growth and trading needs. This collaboration underscores the critical importance of market liquidity access in bond fund management, enabling Nedgroup to implement its investment strategies effectively.

Positive

• Secured a new client, Nedgroup Investments, for outsourced trading services
• Reported 144% growth in fixed income trade flow activity in 2023
• Expanding presence in the fixed income outsourcing market

Negative

• None.

Insights

Financial Analyst

Nedgroup Investments' selection of Northern Trust for outsourced trading is a strategic move in the evolving asset management landscape. The 144% growth in fixed income trade flow activity at Northern Trust in 2023 indicates a significant shift in the industry. This partnership could potentially enhance Nedgroup's operational efficiency and reduce costs, which are important factors for fund performance. The focus on fixed income is particularly noteworthy, as it suggests Nedgroup is positioning itself to capitalize on opportunities in the bond market. However, the impact on Northern Trust's financials may be , given the $20 billion AUM of Nedgroup relative to Northern Trust's broader client base.

Market Research Analyst

This partnership highlights two important trends in asset management: outsourcing of trading functions and increased focus on fixed income strategies. The latter is particularly significant given the current macroeconomic environment of rising interest rates. Nedgroup's move to launch a Global Strategic Bond Fund suggests they anticipate opportunities in this sector. For Northern Trust, securing this deal reinforces their position in the outsourced trading solutions market, potentially attracting more clients. The 144% growth in fixed income trade flow activity is a strong indicator of market demand, which could lead to increased revenue streams for Northern Trust in this segment.

LONDON--(BUSINESS WIRE)-- Northern Trust (Nasdaq: NTRS) today announced that it has been selected to provide outsourced trading via its Integrated Trading Solutions (ITS) for Nedgroup Investments, a global asset management firm with more than US$20 billion AUM.

Nedgroup Investments, a division of Nedbank Group Ltd, is an investment-led business dedicated to finding exceptional fund managers and providing the right conditions for them to perform. Northern Trust will be supporting Nedgroup Investments’ new in-house multi-boutique platform which specializes in fixed income. The premier fund on the platform, Nedgroup Investments’ Global Strategic Bond Fund, will feature a range of active fixed income strategies.

“While equity outsourcing has long been popular with managers, outsourcing the fixed income trading desk has been less common,” said Amy Thorne, Head of Integrated Trading Solutions, Europe, Middle East, and Africa (EMEA). “Recently, we’ve seen this perception shift, with a 144% growth in trade flow activity coming across our fixed income desk in 2023. Nedgroup selected Northern Trust due to the flexibility of our ITS solution which is able to scale seamlessly with the fund’s growth, as well as our broad access to liquidity networks and our bench of expert traders.”

“It's difficult to over-estimate the importance of access to market liquidity in bond fund management,” said David Roberts, Head of Fixed Income, Nedgroup Investments. “Utilising the services of Northern Trust and their wide and varied liquidity pools affords Nedgroup the ability to put our theory into practice, essential when being nimble is a key component of our process.”

Northern Trust’s outsourced trading capability combines worldwide agency-only trading expertise in equities, fixed income and exchange traded derivatives across global markets, coverage from multiple trading locations, access to high-quality liquidity and a fully integrated middle and back-office service. ITS helps asset owners and asset managers to meaningfully lower costs, reduce risk, manage regulatory compliance, and enhance transparency and operational efficiency.

ITS is offered through Institutional Brokerage, a part of Northern Trust Banking & Markets which also provides foreign exchange, securities lending and transition management services.

About Northern Trust Banking & Markets

Northern Trust Banking & Markets is comprised of a number of Northern Trust entities that provide trading and execution services on behalf of institutional clients, including foreign exchange, institutional brokerage, securities finance and transition management services. Foreign exchange, securities finance and transition management services are provided by The Northern Trust Company (TNTC) globally, and Northern Trust Global Services SE (NTGS SE) in the European Economic Area (EEA). Institutional Brokerage services including ITS are provided by NTGS SE in the EEA, Northern Trust Securities LLP (NTS LLP) in the rest of EMEA, Northern Trust Securities Australia Pty Ltd (NTSA) in APAC and Northern Trust Securities, Inc. (NTSI) in the United States, member FINRA, SIPC and a subsidiary of Northern Trust Corporation.

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 a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2024, Northern Trust had assets under custody/administration of US$16.6 trillion, and assets under management of US$1.5 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on northerntrust.com. Follow us on X (formerly Twitter) @NorthernTrust or Northern Trust Corporation on LinkedIn.

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/terms-and-conditions.

About Nedgroup

Nedgroup Investments is a global asset manager with over $20 billion AUM and a 20-year heritage. At Nedgroup Investments we believe everyone should benefit from the difference that the best boutiques bring. As an investment-led business, we are dedicated to finding exceptional fund managers and providing the right conditions for them to perform. We foster multi-decade relationships to enable managers and teams to flourish over the long-term offering our clients more choice, better access and deeper alignment with their investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240820743025/en/

Europe, Middle East, Africa & Asia-Pacific:

Camilla Greene

+44 (0) 20 7982 2176

Camilla_Greene@ntrs.com



Simon Ansell

+ 44 (0) 20 7982 1016

Simon_Ansell@ntrs.com

US & Canada:

John O’Connell

+1 312 444 2388

John_O’Connell@ntrs.com

http://www.northerntrust.com

Source: Northern Trust Corporation

FAQ

What service is Northern Trust providing to Nedgroup Investments?

Northern Trust is providing outsourced trading services through its Integrated Trading Solutions (ITS) to support Nedgroup Investments' new fixed income platform, particularly for their Global Strategic Bond Fund.

How much growth did Northern Trust's fixed income desk experience in 2023?

Northern Trust reported a 144% growth in trade flow activity for their fixed income desk in 2023.

What is the asset under management (AUM) of Nedgroup Investments?

Nedgroup Investments manages more than US$20 billion in assets under management (AUM).

Why did Nedgroup Investments choose Northern Trust (NTRS) for outsourced trading?

Nedgroup selected Northern Trust due to the flexibility of their ITS solution, which can scale with fund growth, as well as Northern Trust's broad access to liquidity networks and expert traders.