Key Takeaways
- • Northern Trust was appointed by Modular Asset Management, a Singapore-based specialist Asian macro hedge fund manager, for a new asset servicing mandate covering its newly launched Cayman Islands-domiciled Modular Asian Macro Fund.
- • The mandate spans custody, fund administration, middle-office outsourcing, collateral management and risk compliance monitoring.
- • Modular was spun out of Millennium Capital Management in January 2020 and is described as one of Asia's largest hedge fund launches in recent years; it was founded by Jimmy Lim.
- • Northern Trust's Asia-Pacific hedge fund services head Iain Carey cited a growing trend toward middle-office outsourcing among Asian hedge funds, even as COVID-19 raised concerns about slowing mandate flow.
Summary
Northern Trust has been appointed by Modular Asset Management, a specialist Asian macro alternative investment manager, to provide a new asset servicing mandate, according to Global Custodian. Under the agreement, Northern Trust will deliver custody, fund administration, middle-office outsourcing, collateral management and risk compliance monitoring services to Modular's newly launched Cayman Islands-domiciled Modular Asian Macro Fund and related entities.
Modular was spun out of Millennium Capital Management in January 2020 and has been described as one of Asia's largest hedge fund launches in recent years. The firm was founded by Jimmy Lim, who previously ran similar specialist Asian mandates at Millennium, BlueCrest and JPMorgan.
Matthew Cannon, co-founder of Modular, said the firm evaluated a range of service providers and was impressed by Northern Trust's technology platform and integrated suite of services, which he said support its complex investment strategies, investor liaison and operational needs.
The mandate comes as asset servicing providers continue to take on new business despite concerns that COVID-19 could slow mandate flow. Iain Carey, head of hedge fund services, Asia-Pacific at Northern Trust, said there is an increasing trend toward middle-office outsourcing in the hedge fund sector across Asia. He cited Northern Trust's experience with sophisticated funds, its technology platform and its Singapore-based fund services capabilities as reasons it is well positioned to support Modular's objectives.
Modular was spun out of Millennium Capital Management in January 2020 and has been described as one of Asia's largest hedge fund launches in recent years. The firm was founded by Jimmy Lim, who previously ran similar specialist Asian mandates at Millennium, BlueCrest and JPMorgan.
Matthew Cannon, co-founder of Modular, said the firm evaluated a range of service providers and was impressed by Northern Trust's technology platform and integrated suite of services, which he said support its complex investment strategies, investor liaison and operational needs.
The mandate comes as asset servicing providers continue to take on new business despite concerns that COVID-19 could slow mandate flow. Iain Carey, head of hedge fund services, Asia-Pacific at Northern Trust, said there is an increasing trend toward middle-office outsourcing in the hedge fund sector across Asia. He cited Northern Trust's experience with sophisticated funds, its technology platform and its Singapore-based fund services capabilities as reasons it is well positioned to support Modular's objectives.
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