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 FMCâs fixed income attribution model into Northern Trustâs 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 Trustâs unique consultative client servicing approach coupled with leading edge technology and industry expertise."
"We are delighted that Northern Trust has chosen FMCâs approach to fixed income attribution," commented Phil Banas, Managing Director of Financial Models Corporation Limited, FMCâs European subsidiary. "Northern Trustâs selection provides further endorsement that FMCâs 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.