Northern Trust Selected to Provide Integrated Trading Solutions for Avanza Fonder’s Index Funds
Northern Trust (Nasdaq: NTRS) has announced that it will be providing its Integrated Trading Solutions (ITS) to support Avanza Fonder, the Stockholm-based fund management firm known for serving private clients. Through this partnership, Northern Trust will offer its outsourced trading desk services to Avanza Fonder, focusing on their index funds across various global equity markets.
Founded in 2006, Avanza Fonder is a fully owned subsidiary of Avanza Bank Holding AB (publ). The fund company manages a range of equity and fixed income funds, both in-house and in collaboration with external managers. Northern Trust’s ITS platform will primarily support Avanza Fonder’s trading activities for index funds in the Global, Emerging Markets, European, and US equity market sectors.
Gerard Walsh, Global Head of Client Solutions Banking & Markets at Northern Trust, expressed his enthusiasm about the partnership. “We are thrilled to be collaborating with Avanza Fonder, a leading fund manager in the Nordic region. Our integrated middle-and back-office solution will provide them with the comprehensive support they need across the trading spectrum. By offering customized services, we aim to help Avanza Fonder navigate the complexities of global markets, allowing them to focus on managing the assets entrusted to them while we handle the trade and post-trade lifecycle effectively.”
Northern Trust’s Integrated Trading Solutions is designed to provide asset owners and asset managers with the tools they need to manage trading operations with increased efficiency and reduced operational risk. The solution leverages Northern Trust’s deep expertise in global markets, offering support for equities, fixed income, exchange-traded derivatives, futures, and exchange-traded funds (ETFs) across multiple asset classes. As part of the ITS offering, Northern Trust takes an agency-only approach, which means that the firm acts solely in the client’s best interest, ensuring a transparent and cost-effective service.
Petra Sjogeras, Head of Nordics at Northern Trust, noted the importance of the partnership for both parties. “We are proud to expand our footprint in the Nordic region by partnering with Avanza Fonder. Asset managers in the Nordics are facing significant global challenges, including rising costs, market volatility, and increased regulatory pressure. Northern Trust’s ITS platform will help Avanza Fonder address these challenges by improving operational efficiency, reducing risks, and supporting the scalability and growth of their business.”
For Avanza Fonder, the decision to collaborate with Northern Trust was a strategic one aimed at enhancing their operational capabilities. Jesper Bonnivier, CEO of Avanza Fonder, explained the rationale behind the decision. “After deciding to bring the management of our index funds in-house, we sought a solution that would streamline our trading processes, allowing us to focus on what truly matters—delivering exceptional results for our clients. By partnering with Northern Trust and leveraging their ITS platform, we now have access to greater liquidity, improved scale, and enhanced operational efficiency, all of which will enable us to drive growth and consistently exceed client expectations.”
Avanza Fonder’s decision to in-source the management of its index funds reflects a broader trend in the asset management industry, where firms are increasingly looking to have more control over their portfolios while finding ways to manage the associated operational complexities. In this environment, solutions like Northern Trust’s ITS platform offer firms the ability to outsource certain functions, such as trading and post-trade processing, while still maintaining high levels of control over their investment processes.
Northern Trust’s ITS platform is a key part of its broader service offering, which includes a range of solutions designed to meet the needs of asset managers, asset owners, and institutional investors. These solutions include foreign exchange, securities lending, and transition management services, all of which are available through the firm’s Institutional Brokerage division. The ITS platform’s ability to combine global trading expertise with a focus on cost reduction, regulatory compliance, and enhanced transparency makes it an attractive option for firms like Avanza Fonder looking to optimize their operations.
As part of the agreement, Northern Trust will provide Avanza Fonder with access to its global trading network, helping the firm tap into deeper liquidity pools and better manage trading costs. By outsourcing the middle- and back-office functions to Northern Trust, Avanza Fonder is able to focus more on its core mission of delivering strong returns for clients while leaving the complexities of the trade lifecycle to a trusted partner.
This partnership also aligns with Northern Trust’s ongoing commitment to expanding its services in the Nordic region. The firm has been actively enhancing its presence in the area, recognizing the growing demand for high-quality asset management and trading services among Nordic asset managers.
For Avanza Fonder, the collaboration with Northern Trust is an important step toward improving operational efficiency, managing risks, and enhancing the scalability of its business as it continues to expand its presence in global equity markets. The partnership also allows Avanza Fonder to focus on its strategic goals, including the pursuit of superior long-term returns for clients.
As global markets continue to evolve, the ability to partner with a trusted service provider like Northern Trust is critical for asset managers seeking to stay competitive and deliver value to clients. By leveraging Northern Trust’s expertise in trading, post-trade services, and regulatory compliance, Avanza Fonder is better positioned to navigate the complexities of today’s financial landscape and achieve sustainable growth.
