Northern Trust has been appointed by Hermes Investment Management to provide foreign exchange currency management services for its Irish fund range, as the custodian continues to build its presence in the country.
Ireland has become a key focus for Northern Trust after it opened its second office in the country in 2017, and has since grown the employee base to 1,500.
Northern Trust has won a number of key mandates in Ireland so far in 2019, including a fund services mandate for a newly launched sustainable fund by Osmosis Investment Management, and an asset servicing and trading solutions deal with AD Global Investors for the launch of four new UCITS funds.
“Northern Trust have been able to automate our sophisticated currency management investment process and deliver comprehensive reporting and analytics for us,” said 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.”
Northern Trust’s currency management suite 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.
Northern Trust already provides a range of asset servicing solutions to Hermes, including fund administration, global custody, collateral management, performance measurement and regulatory reporting, along with investment operations outsourcing services.
“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,” said Clive Bellows, head of Global Fund Services, EMEA, Northern Trust.