JOHCM taps Northern Trust for outsourced trading

Perpetual's J O Hambro Capital Management (JOHCM) has appointed Northern Trust as its sole outsourced trading provider, extending the investment manager's access to global markets, liquidity and broker networks.

The appointment will support trading across JOHCM's global and regional equity portfolios and provide independently measured execution, as the firm seeks to strengthen trading outcomes and operational resilience.

JOHCM manages £16.8 billion ($31.8bn) in assets as of June 30 and operates as an independently managed active investment boutique, investing in global equities that include emerging markets, as well as thematic strategies.

Northern Trust's integrated Trading Solutions (ITS) will provide round-the-clock coverage of global markets, with access to its liquidity and broker networks.

The appointment builds on an existing relationship between the two firms dating back to 2008, with Northern Trust already providing JOHCM with middle-office, transfer agency, fund accounting, custody, depositary and currency management services.

As part of the transition, members of JOHCM's trading team have been invited to join Northern Trust, providing continuity of coverage for the investment teams.

JOHCM chief operating officer Clare Forster said the arrangement would provide greater scale while allowing the investment teams to remain focused on portfolio management.

"Northern Trust gives us a scalable global trading infrastructure, greater operational resilience and access to extensive liquidity and broker networks," Forster said.

"It's Integrated Trading Solutions (ITS) model, with round-the-clock coverage of global markets, lets us scale with confidence while our investment teams stay focused on generating long-term returns through active, high-conviction portfolios."

Northern Trust head of integrated trading solutions for EMEA Amy Thorne said the appointment reflected growing interest in outsourced trading as investment managers reassess their operating models.

"This appointment reflects growing momentum among investment managers to view outsourced trading as a strategic component of evolving operating models, enabling them to focus on core investment decisions and business growth amid changing market conditions."