Northern Trust launches cash optimization service with Hazeltree

Northern Trust Hedge Fund Services and Hazeltree launch new automated cash management service for investment managers.

By Joe Parsons
Northern Trust Hedge Fund Services and Hazeltree have partnered to launch Cash Optimization, a new automated service for managing cash across all currencies and counterparties.

According to the fund administrator, the service will allow investment managers to meet funding needs, maintain target reserves and generate alpha by investing excess cash.

The Cash Optimization service leverages Hazeltree Optimizer, a rules-based cash optimisation platform, and will be fully integrated to provide clients with connectivity to Northern Trust’s FX and Liquidity Solutions Portal services.

“Cash Optimization is a significant step for investment managers looking to automate what has been a labor-intensive process of managing cash balances, liquidity investments and payments among a complex network of counterparties,” said Peter Sanchez, CEO of Northern Trust Hedge Fund Services.

“Our clients are looking for enhanced treasury and collateral functionality and Cash Optimization provides this by incorporating Hazeltree’s innovative technology in a solution hosted on our middle office platform.”

The launch follows the news towards the end of 2017 where Northern Trust has completed its acquisition of UBS Asset Management’s fund services businesses in Switzerland and Luxembourg.

The deal meant that Northern Trust became an administrator for funds with approximately $413 billion in assets under custody.