Hong Kong
19 June 2017
Reporter: Stephanie Palmer

Asian investors looking to middle-office outsourcing solutions, says Northern Trust


Middle-office outsourcing may be set to increase among institutional investors in Asia, according to a survey conducted by Northern Trust.

At a Northern Trust advisory seminar held in Hong Kong last month, 50 percent of Asian pension funds and investment managers said they have either outsourced, or considered outsourcing, middle-office functions within the last five years.

However, only 38 percent said they have actually implemented any outsourcing project in that time.

Caroline Higgins, head of global fund services for Asia at Northern Trust, suggested that middle-office outsourcing could be a way for asset owners and managers to address the challenges and complexity that comes with new regulatory requirements, cost pressures, and a low-yield environment.

She said: “We expect to see more uptake of middle-office outsourcing in the region as institutional investors increasingly see the solution’s benefits.”

The survey also found that institutional investors are most influenced by the IT infrastructure of potential service providers, with 58 percent saying this is the ‘most important driver’ for their middle-office outsourcing decisions.

Cost considerations were the most important issue for 25 percent of attendees, while the other 17 percent named the providers’ scale as the most important driver.

More news
The latest news from Asset Servicing Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Merrill Lynch first to fall foul of UK’s EMIR reporting rules
23 October 2017 | London | Reporter: Drew Nicol
The bank accepted a £34.52 million penalty relating to 68.5 million unreported transactions between February 2014 and February 2016
Wolters Kluwer chosen for risk and reg by Polish bank
23 October 2017 | Warsaw | Reporter: Theo Andrew
Bank BPS will use the OneSumX solutions for static and dynamic projection analysis, liquidity reporting, interest-rate and foreign-exchange risk, as well as value-at-risk analysis
Iberclear bank on Citi to provide global custody
20 October 2017 | Madrid | Reporter: Jenna Lomax
The agreement, signed at this years Sibos conference in Toronto, will enable Spanish clearing houses to settle international securities via local CSDs
Clearstream promises post-Brexit services continuity
20 October 2017 | London | Reporter: Jenna Lomax
Despite the uncertainty that came after the referendum results last year, Clearstream said its main objective through Brexit was to minimise risk of cross-border settlement
AI will be transformative, but is still in early stages
19 October 2017 | Toronto | Reporter: Stephanie Palmer
Artificial intelligence is a “transformational technology” that will improve productivity and security, and provide a competitive advantage, according to a live poll at Sibos 2017
Security and standards key in blockchain solutions
19 October 2017 | Toronto | Reporter: Stephanie Palmer
Distributed ledger technology (DLT) solutions should embed security measures at their very core, especially in the financial services space, according to Sibos panellists
LCH promotes Daniel Maguire to CEO
19 October 2017 | London | Reporter: Jenna Lomax
Maguire, who has been COO of the same department since April this year, was previously senior vice president for commodity exotics and hybrids at J.P. Morgan
More news