Sun, Mar 29, 2015
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Northern Trust Appointed by Bridgewater Associates for hedge fund servicing

Tuesday, January 08, 2013
Opalesque Industry Update: Northern Trust announced today it has been appointed by Bridgewater Associates, one of the worlds largest global hedge fund managers, to independently replicate certain middle and back-office services for its approximately $140 billion in assets under management, as part of Bridgewater's ongoing back office transformation plan.

In a role that will create approximately 100 jobs in Chicago and Stamford, Conn., Northern Trust will provide broad middle-office and back-office services including replicating various administrative processing, trade processing, valuation, real-time reporting, cash management, accounting and collateral management services.

These services will be furnished by Northern Trust independently, as well as mirroring and quality checking middle and back-office services provided by another firm. Northern Trust's independent review and validation of results will provide Bridgewater Associates and its investors an enhanced level of oversight and controls with respect to fund administration and middle and back-office functions. The arrangement is planned to go live in 2014.

"We welcome this important strategic relationship with Bridgewater Associates," said Steven L. Fradkin, President of Corporate & Institutional Services at Northern Trust. "As one of the largest and most successful hedge fund managers in the world, with a long-standing commitment to transparency and excellence, Bridgewater Associates understands the value of a trusted global partner that can provide an additional check and validation for their clients. This innovative relationship sets a new standard of independence, which will benefit Bridgewater's clients while reinforcing its leadership in the industry."

"We are delighted to be working with Northern Trust and to draw on their leading-edge technology and expertise for the benefit of our clients," said Eileen Murray, Co-President of Bridgewater Associates. "At a time of unprecedented change and uncertainty for investors, Northern Trust's independent review mandate as part of our ongoing transformation program at Bridgewater is designed to provide an added level of protection and security for our clients."

Since Northern Trust acquired hedge fund administrator Omnium from Citadel in July of 2011, the marketplace has delivered a strong response to the combination of Northern Trust's trusted name and global scale along with industry-leading, technology-driven hedge fund administration services designed to support high volume and highly complex investment strategies.

"This is a transformational relationship creating independent controls and a new level of review and checks by two independent administrators," said Peter Sanchez, Chief Executive Officer of Northern Trust Hedge Fund Services. "As the hedge fund business model evolves, we expect our relationship with Bridgewater will lead the way toward the structure and independent controls that hedge fund investors will demand in the future."

Northern Trust

Press Release

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Does the hedge fund industry benefit society?[more]

    This article was authored by Don Steinbrugge, Chairman of Agecroft Partners, a US-based global consulting and third party marketing firm for hedge funds. It is no secret that the hedge fund industry is viewed negatively by a la

  2. Private credit comes into focus for investors[more]

    Bailey McCann, Opalesque New York: As investors look for a way out of the low yield/no yield environment, private credit is becoming an increasingly attractive asset class, according to a white paper from Bayshore Capital Advisors. Private credit has grown steadily since the financial crisis as

  3. Other Voices: The role of diversification in CTA portfolios[more]

    2014 brought a resurgence of managed futures strategies, or CTAs, which performed very well as a whole, outperforming all other hedge fund strategies. However, a closer look reveals that there was a wide range of performance, or return dispersion, across managers. The bottom line? Not all CTAs

  4. Neuberger Berman unit buys 20% stake in activist hedge fund Jana Partners for $2bn[more]

    Komfie Manalo, Opalesque Asia: Neuberger Berman’s unit Dyal Capital Partners bought a 20% stake in activist hedge fund firm Jana Partners worth $2bn, WSJ.com reports. The deal comes as activi

  5. Hedge fund launches fall again, $1bn funds found to outperform even smaller hedge funds[more]

    Komfie Manalo, Opalesque Asia: The number of new hedge fund launches fell again in 2014, the third consecutive year of decline, while fund liquidations saw their first drop since 2010, according to the latest HFR Market Microstructure Industry Report released by industry data provider HFR. Acc

 

banner