Northern Trust Wins Over US$1 Billion Asset Servicing Mandate for Auda Funds-of-Hedge-Funds

8 July 2008

Northern Trust has been selected by New York based fund manager, Auda Hedge LLC to provide fund administration, custody, banking and foreign exchange services to its fund of hedge fund programme, with assets in excess of US$1 billion.

"Northern Trust is able to offer us everything we need under one roof and, in addition, we are particularly excited about the prospect of having daily portfolio management data for our funds-of-hedge-funds for the first time. Both were important reasons that lead to Northern Trust's selection," said Robert Kirby, COO of Auda. "Northern Trust demonstrated that through their consistent client service approach around the world, coupled with their superior single, global technology platform, they are able to meet our needs now and continue to support us through our plans for future growth," Mr. Kirby added.

Sue Baines, Head of Global Fund Services Sales, EMEA, at Northern Trust, said, "We are very pleased to be working with Auda. Their business model and service requirements fit well with Northern Trust's expertise in servicing funds-of-hedge-funds as we continue to be at the forefront of the industry in improving data timeliness and automation for this fast-growing asset class."

In January 2008, Northern Trust announced a worldwide exclusive partnership with youDevise to provide enhanced fund of hedge fund data to the fund of hedge fund community via the Hedge Information Provider ("HIP") system.

The HIP is an online portfolio management system developed specifically for funds-of-hedge-funds. It considerably improves the timeliness of information that funds-of-hedge-fund managers receive from underlying hedge funds regarding hedge fund holdings, current value, performance, liquidity and hedging, as well as a detailed breakdown of assets and transactions. HIP makes it possible for funds-of-hedge-fund managers to see portfolio management data daily that, historically, was only available monthly.

Northern Trust became the first global asset servicer to adopt HIP through its partnership with youDevise. Northern Trust and youDevise are currently working on a programme that will see HIP fully integrated onto Northern Trust's single, global technology platform by the summer of 2008.

Wilson Leech, head of Northern Trust's Global Fund services group, added: "Funds-of-hedge-funds have become the route chosen by many institutional investors when accessing hedge funds. By fully integrating HIP onto Northern Trust's global platform we will be able to deliver an enhanced reporting capability and reduce operational risk, enabling our clients to make decisions faster and more effectively. This supports Northern Trust's drive to offer comprehensive asset servicing capabilities to the global fund-of-hedge-funds industry and is a key part of our strategy for bringing innovative and effective solutions to asset managers around the world to meet their dynamic and increasingly complex requirements."

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