Northern Trust Introduces a New Suite of Minority Brokerage Reports
Northern Trust has introduced five new reporting templates that can be used by U.S. public pension funds and other institutions to determine the use of minority- and women-owned firms to execute trades on behalf of the fund. Increasingly, regulatory and legislative mandates require U.S. public entities to source a portion of their activities to designated minority-owned firms. These new reporting templates will allow plan sponsors to view data aggregated across multiple investment managers, thus improving their ability to identify the total portion of the funds trading activity that is executed using minority and women owned firms.
As a custodian, we seek to provide innovative tools to assist our institutional clients in meeting the growing number of complex regulatory and compliance requirements, says Peter Cherecwich, global head of asset servicing product management, Northern Trust. These new reports creatively combine traditional custodial trade data with minority sourcing information in a way that demonstrates Northern Trusts commitment to enriching the value of reporting through Passport, our online data delivery platform.
An important component of this new service offering is the quality and breadth of the data used to independently classify minority brokerage firms. Northern Trust has engaged CVM, a minority-owned firm and demonstrated leader in minority business sourcing, to collect and provide minority-owned classification information from approximately 300 certification sources across the United States. Northern Trusts reports utilise information provided by CVM to accurately reflect the extent to which investment managers have sourced trade execution to minority firms, the ethnic makeup of each firms ownership, and the agencies that have certified the firms status.
Utilising a minority-owned firm like CVM to provide our clients with innovative reporting solutions demonstrates Northern Trust’s commitment not only to our clients but also to the inclusion of diverse businesses in an increasingly diverse marketplace, says Deidra Jenkins, director of Supplier Diversity, Northern Trust. Importantly, our diversity efforts continue to contribute to the success of our clients.