Northern Trust Enhances Performance and Analysis Tools for Clients Investing in Alternative Assets

3 December 2008

Northern Trust announced today it has introduced significant new performance and analysis capabilities for clients investing in private equity, hedge funds and other alternative assets. New features include an expanded range of resources and functions available online to meet the unique needs of alternative assets investors, and specialized tools to assist limited partners in administering private equity portfolios.

Northern Trust’s online performance analysis tool, Fundamentals, now provides access to internal rate of return (IRR) measures and on-the-fly analysis of the funding status and growth of private markets assets, including private equity and real assets. In addition, Fundamentals includes on-demand access to sophisticated metrics that more accurately portray hedge fund performance, such as skew-ness, kurtosis, maximum drawdown, upside variance, Sterling ratio and Calmar ratio.

“These accounting and performance measurements go beyond traditional mean-variance analysis, recognizing the need to understand the often non-normally distributed return behavior of private equity, hedge funds and real estate,” said Christopher Mullooly, product manager for Investment Risk and Analytical Services at Northern Trust. These enhanced core metric capabilities are available to all clients subscribing to Northern Trust’s performance analysis service and are delivered via Passport®, Northern Trust’s online data platform.

Northern Trust has also strengthened the Private Monitor™ brand of premium private equity investor services with the deployment of Private i® 5.0, by the Burgiss Group. Clients can track and analyze performance, and obtain ad hoc reports on various internal rate of return analyses, modified internal rate of return (under varied assumptions), funding and distribution ratios, and benchmark internal rate of return analysis. In the Private Monitor suite, Northern also offers the Burgiss Group’s browser-based application, Private Informant®, a “look-through” reporting of partnership company holdings.

“Northern Trust is committed to providing innovative and relevant performance and risk reporting across all asset classifications,” said Paul Finlayson, product manager for Alternative Asset Services at Northern Trust. “We will continue to evolve both our core and premium capabilities while partnering with the best in the industry, like the Burgiss Group. These innovations, coupled with our unique data capture and consultative experience, will help our clients efficiently manage the time and resources they must dedicate to meet their risk management responsibilities required to properly oversee these investments.”

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development