Northern Trust Hedge Fund Services (NTHFS) has launched Cash Optimization, an automated service for viewing and efficiently managing cash across all currencies and counterparties to meet funding needs, maintain target reserves and generate alpha by investing excess cash.
Developed in partnership with Hazeltree, a provider of treasury solutions, the new service offers a comprehensive approach to managing cash based upon current balances, forecasted transactions and market data such as financing, interest and foreign exchange (FX) rates.
The Cash Optimization service leverages Hazeltree Optimizer™, a rules-based cash optimization platform, and is fully integrated with NTHFS to provide clients a single dashboard with additional connectivity to Northern Trust’s FX and Liquidity Solutions Portal services, allowing investment managers to efficiently monitor liquidity, manage broker debit/credit cash positions, perform FX trades, and deploy excess cash. Cash Optimization is enriched with NTHFS data, including intraday cash activity and Cash Projection, to offer a comprehensive view of liquidity and cash positions. NTHFS manages client onboarding and is currently supporting clients on the new service.
“Cash Optimization is a significant step for investment managers looking to automate what has been a labor-intensive process of managing cash balances, liquidity investments and payments among a complex network of counterparties,” said Peter Sanchez, CEO of Northern Trust Hedge Fund Services. “Our clients are looking for enhanced treasury and collateral functionality and Cash Optimization provides this by incorporating Hazeltree’s innovative technology in a solution hosted on our middle office platform.”
“We are pleased to collaborate with NTHFS on a solution that offers enhanced treasury functionality to help its clients meet requirements, minimize cash financing costs and invest excess cash in a rising interest rate environment,” said Sameer Shalaby, President and Chief Executive Officer of Hazeltree. “With Cash Optimization, investment managers have access to Hazeltree’s cash management and optimization capabilities through a solution that is hosted and supported by NTHFS.”
“In a market of compressing margins and increasing competition, we’re looking across all aspects of our organization, including our treasury function, to enhance value for our investors,” said Chris Hedberg, Chief Financial Officer at CarVal Investors, a leading global alternative investment manager focused on distressed and credit-intensive assets and market inefficiencies. “As a result, we are excited to expand our strategic partnership with NTHFS by adding Cash Optimization as the latest tool within our treasury arsenal.”