POWERED BY MOMENTUM MEDIA
More middle office outsourcing uptake expected
Half of Asian pension funds and investment managers outsource or have considered outsourcing some middle office functions in the past five years, according to a Northern Trust survey.
Over a third of the funds and investment managers who attended Northern Trust’s advisory seminar held in Hong Kong last month said they had implemented an outsourcing project within the same period.
Northern Trust head of global fund services for Asia, Caroline Higgins, said: “With evolving regulatory requirements, a low-yield environment and continuing pressure on pricing and cost structures, both asset owners and asset managers are facing considerable challenges and increasing complexity in the market”.
“Some institutional investors have found value in middle office outsourcing, which allows them to leverage the expertise of global providers, such as Northern Trust, with capabilities and servicing hubs in Asia. We expect to see more uptake of middle office outsourcing in the region as institutional investors increasingly see the solution’s benefits,” she said.
The survey found 58 per cent of respondents thought that perceptions of the service provider’s IT infrastructure was the most important driver in outsourcing decisions.
Cost considerations was the most important driver for 25 per cent, and a provider’s scale for 17 percent.
“This survey underlines that middle office outsourcing can offer sophisticated analytics, more accessible and up-to-date data, as well as keep pace with market, regulatory and technological developments,” Higgins said.
Recommended for you
Demand from institutional investors was the main driver of growth in Australia’s responsible investment (RI) market in 2023, as the industry continued to gain momentum.
Institutional investors have entered November with their largest pre-election equity allocation in two decades, according to new data.
The sovereign wealth fund remains cautious of the impact of high inflation as it announces a strong return in its latest update.
Australia is becoming increasingly recognised as an attractive investment opportunity against global counterparts, recent analysis has found.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Spire Oaktree Opportunities XI Second Close
61.07 3 y p.a(%)
2
Spire Oaktree Opportunities XI First Close USD
59.21 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.73 3 y p.a(%)
4
Fidante Credit Suisse Global Private Equity
30.15 3 y p.a(%)
5
DomaCom 4/27 Crombie Avenue Bundall QLD 4217 Australia
26.71 3 y p.a(%)
