Source: Financial Models Company Inc
Northern Trust, a leading global provider of custody, asset administration, and asset management services, announced that it will integrate the global fixed income attribution model of Financial Models Company Inc. (FMC) into Northern Trust's existing product suite of leading risk and analytical service tools for institutional plan sponsors. The attribution results will be delivered through Northern Trust Passport® along with existing daily and monthly performance measurement and risk analysis information.
The FMC fixed income attribution model is a proven methodology already in place at investment management firms worldwide. It provides a returns-based rather than holdings-based solution, decomposing excess return into market related decisions, namely duration exposure, yield curve positioning, sector allocation and bond specific selection; and currency decisions, namely weighting and timing.
"Integrating FMC’s fixed income attribution model into Northern Trust’s Investment Risk and Analytical Services (IRAS) product suite will enhance the robust fixed income analysis we already provide to our clients, given the trend of increased allocation to the fixed income asset class" said Lori Kazich, Senior Vice President, manager of worldwide IRAS client servicing. "This new offering for our clients is supported by Northern Trust’s unique consultative client servicing approach coupled with leading edge technology and industry expertise."
"We are delighted that Northern Trust has chosen FMC’s approach to fixed income attribution," commented Phil Banas, Managing Director of Financial Models Corporation Limited, FMC’s European subsidiary. "Northern Trust’s selection provides further endorsement that FMC’s intuitive and pragmatic approach is rapidly becoming the de facto standard for fixed income attribution."
The Investment Risk and Analytical Services group at Northern Trust consists of over 100 dedicated professionals worldwide, and provides leading investment risk and analytic services to over 600 clients with a combined total of $1 trillion in assets.