Chicago-based Northern Trust is working with Lyxor Americas to launch a new managed account platform to offer hedge fund strategies to its wealth management clients.

The ArcLine Alternatives managed account platform was developed in coordination with Lyxor Asset Management’s New York-based subsidiary. Its aim is to offer Northern Trust’s wealth management clients hedge fund opportunities within dedicated managed accounts.

Managed accounts provide greater transparency and customised liquidity, which also provides stronger alignment between managers and investors, according to officials.

“We are constantly evaluating ways to provide our clients with unique and diversified investment opportunities to meet their long-term goals,” said Steven Fradkin, president of Northern Trust Wealth Management.

“This platform offers exposure to recognised hedge fund managers across a range of strategies in a highly efficient and secure manner.”

The number of managers and specific strategies that will be included on the platform were not disclosed by Northern Trust officials.

While Northern Trust has a fund of hedge funds subsidiary called 50 South Capital Advisors that manages $2.8bn, officials decided to go with Lyxor to curate a list of managers in managed account structures for Northern’s $296bn wealth management unit.

According to a Northern Trust spokesperson, in developing the offering officials wanted the platform to be a representation of best-in-class managed accounts. Lyxor is a global expert in this space, particularly in developing the required operational infrastructure. Northern Trust retains manager selection as part of the new platform, the spokesperson added.

Lyxor has $16bn in AuM of which a total of $10.7bn is in dedicated managed accounts, according to our most recent managed account platform survey.

Northern Trust selects Lyxor for new alts platform on HFM InvestHedge.