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 Industry 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
AcadiaSoft expands user base for IM compliance
21 September 2017 | Massachusetts | Reporter: Drew Nicol
The second phase of the IM rules went live on 1 September under the regulatory framework of BCBS and IOSCO
UCITS funds enjoy assets boom in Q2
18 September 2017 | Brussels | Reporter: Jenna Lomax
The latest growth figures represent the highest level of net sales recorded since Q1 2015
Gestar acquires ESG solution provider ISS
08 September 2017 | New York | Reporter: Stephanie Palmer
Genstar Capital is to acquire Institutional Shareholder Services (ISS), a provider of corporate governance and responsible investment solutions, from Vestar Capital Partners
AxiomSL expands European presence
07 September 2017 | London | Reporter: Stephanie Palmer
AxiomSL has opened new offices in Paris, Madrid and Frankfurt, in a bid to strengthen support for clients in those respective countries
World’s pension funds return to form in 2016
05 September 2017 | London | Reporter: Drew Nicol
The world’s largest pension funds increased their assets under management by 6.1 percent in 2016, and are now worth $15.7 trillion, according Willis Towers Watson
Northern Trust appoints new head of Southeast Asia
30 August 2017 | Singapore | Reporter: Jenna Lomax
Northern Trust has chosen Yen Leng Ong as its new country head of Singapore and head of Southeast Asia
SIX reports strong results for 2017 so far
30 August 2017 | Zurich | Reporter: Stephanie Palmer
The securities services business drove strong results for SIX during the first six months of 2017, recording an operating income of CHF 189.1 million (€165.65 million)
More Industry news