Northern Trust - Transition Management Team
Northern Trust's transition management is separated from other activities within Northern Trust, run by a team of experienced stategists and transition managers.
The team has a specific focus on transparency, and provides open and clear communication and reporting from start to finish.
This transparency, together with expert client solutions, strategy development and project management is designed to deliver a positive client experience.
Size of transactions
Northern Trust has executed transitions with a wide range of values, averaging in the hundreds of millions and assignments usually range from less than £10 million to over £1 billion.
Typically, foreign exchange hedges are established at the outset of the assignment and futures may be utilised to manage exposures depending on the assignment specifics. Northern Trust hedges are agreed with the client and transparency is maintained through the assignment.
Use of crossing
Internal crossing networks are not largely utilised by Northern Trust,as they are often periodic and can use a different benchmark to the transition performance benchmark, but external crossing networks can be used if they add value and fit with the overall strategy.
A pre-trade report and customised timeline is provided by Northern Trust before an assignment and during execution, daily reports covering market commentary, progress of the assignment and costs analysis are provided.
Post transition, clients receive a detailed reporting package providing in depth and transparent performance measurement, and the reports combine a written outline of activities undertaken, together with a set of quantitative data.
Northern Trust measures performance versus T-1 implementation shortfall and depending on the assignment, additional benchmarks may be added.
An agency approach for transparency is taken to ensure client interests are aligned with those of Northern Trust, and all sources of revenue are clearly outlined within the transition agreement.