Friday, November 01, 2013
New Equities Guru Must Balance the Ying of Passive, with the Yang of Active
Reported by Tommy Fernandez
They are sort of the Ying and the Yang of investing: passive and active.
Balancing both of these seemingly opposing investing forces is one of the primary responsibilities of Matthew Peron
, the newly anointed managing director for global equity Northern Trust Asset Management
According to a company statement the new role "brings together active and index equity teams in order to harness the strengths of both disciplines in the development of investment solutions for Northern Trust clients."
Peron, a 23-year industry veteran, has been with Northern since 2005, serving previously as Managing Director, Active Equity, and has also been a Senior Portfolio Manager and Director of Equity Research.
His new position includes oversight of investment professionals managing US$407 billion in active and index strategies for Northern Trust clients worldwide.
Here is the press release:
Company Press Release
Matthew Peron to Lead Global Equity at Northern Trust
Strategic Role to Combine Active and Index Equity Investment Teams
CHICAGO--October 31, 2013--
Matthew Peron has been named Managing Director, Global Equity at Northern Trust Asset Management, a new role that brings together active and index equity teams in order to harness the strengths of both disciplines in the development of investment solutions for Northern Trust clients.
Peron brings 23 years of industry experience to the position, which includes oversight of investment professionals managing US$407 billion in active and index strategies for Northern Trust clients worldwide.
"We are pleased to announce Matt Peron's appointment to this newly created global role where he can continue to foster the collaboration across active and index equity teams that has helped us innovate on behalf of our clients," said Stephen N. Potter, President of Northern Trust Asset Management. "Under Matt's strong leadership, we are positioned to focus on a strategy that employs the full spectrum of quantitative equity investing -- from index replication and alternative index management to factor-driven engineered solutions. Greater alignment of these teams will also allow us to further share best practices in research, risk management and portfolio construction."
Collaboration between active and index equity has been a feature of Northern Trust's thought leadership and product development in recent years. White papers issued to educate and inform clients around the blurring line between passive and active management include "The New Active Decision in Beta Management" and "Understanding Factor Tilts," which can be accessed at northerntrust.com/alternativeindex. Strategies developed by this collaboration have been delivered in a range of vehicles, including exchange-traded funds.
Peron was formerly Managing Director, Active Equity, and has also been a Senior Portfolio Manager and Director of Equity Research since joining Northern Trust in 2005. Prior to Northern Trust, he held senior risk management and quantitative analyst roles at Alliance Capital, Bank One and Lincoln Capital Management. Peron holds an M.B.A. in finance from the University of Chicago and a B.S. in electrical engineering from Swarthmore College.
Northern Trust Asset Management also announced that Nick Dymond, who currently manages their international equity index portfolio management team in London, will expand his role to lead the firm's portfolio management teams in Chicago, London, Hong Kong, and Tokyo to ensure consistent practices globally. Brent Reeder, a 20-year veteran of Northern Trust, will continue to direct U.S. equity index strategies. All Northern Trust's index equity mandates are managed using a systematic approach to portfolio and account management by a team with an average of 13 years of experience in index portfolio management.
"Equity indexing is a flagship capability of Northern Trust and remains a strategic priority for us, representing more than 40 percent of our assets under management," said Bob Browne, Chief Investment Officer of Northern Trust. "Indexing is a business that we pioneered and will continue to lead, while our combined team delivers a greater breadth of solutions in the constantly evolving world of alternative indexing and factor-based investing."
Browne added: "Our decision to create a combined global equity platform was the result of thoughtful strategic planning in recent years. We accelerated the execution on our vision when our Managing Director of Global Equity Index and Director of International Equity Index resigned recently to pursue other opportunities."
Asset Management at Northern Trust begins with listening and leads to answers beyond the expected for our clients. The multi-asset class investment management business is comprised of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., the investment advisor division of The Northern Trust Company and The Northern Trust Company of Connecticut and its subsidiaries which offer investment products and services to personal and institutional markets.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 18 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2013, Northern Trust had assets under custody of US$5.2 trillion, and assets under investment management of US$846.2 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust.
Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at http://www.northerntrust.com/disclosures.
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