To help its Dutch pension fund clients meet the Financieel ToetsingsKader (FTK) regulations set out by the Dutch National Bank, Northern Trust (Nasdaq: NTRS) has enhanced its investment statement reporting solutions.
The enhanced solution, designed in consultation with clients and in line with the Dutch National Bank guidelines, offers valuation data, cash-flow modelling and shock testing analysis to help pension funds demonstrate appropriate investment scrutiny, data integrity, and risk modelling as their investment process evolves.
Under the FTK regulation, Dutch pension funds are required to demonstrate a transparent approach to managing their assets and liabilities, in line with their investment decisions, in order to gauge sensitivity to market shocks and the impact this will have on pension scheme members.
"For many Dutch pension schemes focusing increasingly on liability driven investments and alternatives, these new requirements present a number of challenges," said Frans Hofkens, Institutional Investor Group, Northern Trust in The Netherlands. "By using a consistent suite of cash flow modelling assumptions and performance calculations, Northern Trust can deliver timely data and reporting to our clients, helping them meet their regulatory requirements."
Northern Trust's tailored solution for Dutch clients includes quarterly and annual statements, as required under the FTK regulation, as well as cash flows and prescribed shock tests at the asset level to provide exposure reporting. This can be broken down by:
- asset class and risk currency versus strategic benchmarks
- looking through pooled investments to underlying assets
- effective exposure on all derivative types
- performance and contribution reporting for each asset class
"Northern Trust's solution models every market risk by asset type - from commodity investments to interest rate sensitivities," said Simon Willcox, global head of performance product management at Northern Trust. "We understand Dutch pension funds have unique regulatory challenges and by leveraging expertise from across our Investment Risk and Analytics team, we can offer a fully integrated performance, risk and regulatory reporting suite of capabilities tailored to their specific requirements."
Northern Trust offers a range of regulatory reporting solutions to help its clients meet their regulatory requirements. Most recently it announced it had enhanced its collateral management and liquidity solutions in order to help clients meet the requirements of implementing various regulations, such as the Dodd-Frank Act and European Market Infrastructure Regulation (EMIR).
Northern Trust's dedicated programme of workshops, newsletters and thought leadership provides regular updates from experts on the latest regulatory developments impacting its clients and on how Northern Trust is evolving to support their requirements. In The Netherlands, Northern Trust is also represented on the Dutch National Bank Rapportages Pensioenfondsen Committee, a working group made of senior pension scheme managers and financial analysts from the Dutch National Bank focused on evolving standards reflecting ever increasing investment complexity.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 states, Washington, D.C., and 18 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2013, Northern Trust had assets under custody of US$5.6 trillion, and assets under investment management of US$884.5 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at http://www.northerntrust.com/disclosures