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
Investors have slashed their US equity allocations to the lowest level on record, according to new data from Bank of America.
The message from experts in international trade and economists is that the Australian government should refrain from retaliating with reciprocal tariffs.
The market correction forecast by AMP’s chief economist is in full swing, with three weeks of turbulence culminating in significant losses on Tuesday.
Following a strong risk appetite in January, institutional investors have pulled back in February, with risk-seeking activity dropping to zero amid a decline in equity allocations.
TOP PERFORMING FUNDS
ACS FIXED INT - AUSTRALIA/GLOBAL BOND
Fund name
3y(%)pa
1
Global X GlobalX FANG+ ETF
33.51 3 y p.a(%)
2
Spire Oaktree Opportunities XI Second Close
32.68 3 y p.a(%)
3
DomaCom Lot 21 Chellaston Road Munno Para West SA 5115 Australia
31.62 3 y p.a(%)
4
Spire Oaktree Opportunities XI First Close USD
31.36 3 y p.a(%)
5
Fidante Credit Suisse Global Private Equity
29.60 3 y p.a(%)
