(August 31, 2010) — Northern Trust Corp. said today that it acquired a branch license in Beijing after receiving approval by the China Banking Regulatory Commission (CORK).
The new branch reflects heightened interest in the Asia-Pacific region, where the firm’s assets under custody were $263.6 billion as of December 31, 2009, an increase of approximately 80% from the previous year, Northern Trust spokesperson John O’Connell told ai5000. The site will allow the firm, with $3.6 trillion in assets under custody, to directly provide client services from that office, instead of from its offices in Singapore and Hong Kong.
According to the bank and asset manager, whose staff has grown to more than 2,000 employees at offices in Beijing, Hong Kong, Singapore, Tokyo, Melbourne and Bangalore, the Beijing branch will provide global custody, accounting, performance measurement and investment mandate compliance monitoring services. “With its dynamic economy and emerging opportunities for overseas investment, China is a strategic focus for Northern Trust,” said the firm’s Chairman and CEO Frederick H. Waddell in a release. “
Other large funds have expanded their reach in the region – last month, Norway’s sovereign wealth fund, the world’s second largest, reported plans to boost investments in Asia to take advantage of the region’s strong economic growth.
“An office in Singapore will strengthen our operations in Asia,” commented Norges Bank Governor Svein Gjedrem in a statement. “Having a presence in a region with strong economic growth is important for achieving good management results.”
The fund followed the lead of other sovereign wealth investors including Temasek Holdings Pte and the Qatar Investment Authority that have also upped their investments in the area.
To contact the <em>aiCIO</em> editor of this story: Paula Vasan at <a href='mailto:pvasan@assetinternational.com'>pvasan@assetinternational.com</a>; 646-308-2742