Investment Product and Service Launches

Northern Trust Enhances Servicing for Private Equity

In response to increased demand for outsourced alternative asset administration, Northern Trust announced enhancements to its private equity support with the launch of its capital call execution service.

The service will allow private-equity holding defined benefit plan sponsors and their advisers to “gain operational efficiencies by outsourcing the processing of capital calls.” Capital calls are periodically issued by general partners to their clients and require investors, upon demand, to transfer a previously agreed upon amount to fund strategic investments.

“Intended for portfolios with more than 20 private equity investments, clients notify Northern Trust of the initial capital call via the automated Trade Order Entry system,” the firm explains. “Northern Trust then handles all subsequent capital call payments directly with the private equity general partners, either based on standing direction or individually based on client approval.”

Pete Cherecwich, Americas head of corporate and institutional services at Northern Trust, says the firm’s clients have invested more heavily in alternative assets in recent years, “and we have sought ways to make their processes more efficient. By taking the tasks associated with capital calls out of their hands and automating the process, we have freed them to focus on the investment decisions rather than the administrative tasks.”

Key aspects of the enhanced capabilities include “streamlined global operational process for handling subsequent capital call processing; direct communication between Northern Trust and general partners regarding subsequent capital calls; and more time focused on investment decisions and less time spent in administering capital calls.”

More detail is at www.northerntrust.com.

NEXT: New Multi-Asset Solutions from Franklin Templeton

Franklin Templeton Expands Multi-Asset Solutions Capability

Franklin Templeton Investments has added to recent expansion in its global multi-asset solutions capabilities with a new solution that “enables financial institutions to address the needs of a specific global investor base by providing a tailored suite of multi-asset, open architecture funds.”

Under the expanded multi-asset solutions program, Franklin Templeton says investors will benefit from the firm’s global footprint and investment management team, “with the added flexibility to incorporate third-party managers for a one-stop multi-asset solution.”

“As the trend toward open architecture grows, we continue to seek new ways to make our investment expertise—both traditional long-only and alternative solutions—available to investors globally,” says Rick Frisbie, executive vice president, head of Franklin Templeton Solutions. 

Through its open architecture multi-asset capability, Franklin Templeton Solutions says it has built “the flexibility to create comprehensive portfolio solutions for investors by allocating to a mix of in-house and third-party mutual funds and exchange traded funds (ETFs).”

By employing tactical asset allocation, Franklin Templeton Solutions “seeks to position portfolios to capitalize on opportunities presented by changing market conditions and reduce risks within a given portfolio’s established investment objectives and risk profile. The team seeks to build different portfolios customized to meet the needs of investors in different regions and countries around the world.”

More information is available at www.franklintempleton.com.