Northern Trust Deploys FMC's Global FIA Model
Northern Trust, a custody, asset administration and asset management services provider, has announced that it will integrate the global fixed income attribution model of Financial Models Company (FMC) into Northern Trust's existing product suite of risk and analytical service tools for institutional plan sponsors. The FMC fixed income attribution model 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. The attribution results will be delivered through Northern Trust Passport along with existing daily and monthly performance measurement and risk analysis information.
"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, in the press release.