Switzerland-based investment firm 2Xideas AG has announced the expansion of its partnership with Northern Trust, a leading global financial services provider. This move will see Northern Trust’s Integrated Trading Solutions (ITS) become part of the existing collaboration, streamlining the trading processes for 2Xideas and boosting their ability to deliver high-quality results to clients.
2Xideas, founded in 2013, manages approximately US$2 billion in assets and specialises in liquid mid-cap stocks. The company first partnered with Northern Trust in 2022 to utilise a range of services including fund accounting, financial reporting, custody, depositary, and transfer agency functions. This latest development extends the relationship to include outsourced trading, allowing 2Xideas to take advantage of Northern Trust’s substantial liquidity and global reach.
Roger Meister, CEO of 2Xideas, highlighted the importance of improving operational efficiency. “After first establishing a relationship with Northern Trust in 2022, we began searching for a solution that would streamline our trading processes, allowing us to focus on what matters most – delivering exceptional results for our clients,” said Meister.
By integrating Northern Trust’s ITS offering, 2Xideas aims to optimise its trading activities, enhance cost-effectiveness, and maintain robust business resiliency. The investment firm’s four funds and various managed accounts will now be serviced through Northern Trust’s outsourced trading platform.
“We are excited to have 2Xideas join our ITS platform,” said Amy Thorne, Head of Integrated Trading Solutions for Europe, the Middle East and Africa at Northern Trust. “Our conflict-free, agency operating model is designed to help clients achieve cost-contained growth, while improving their control over business processes.”
Northern Trust’s ITS platform combines extensive global trading expertise across equities, fixed income, and exchange-traded derivatives. This service is supported by a network of multiple trading locations, offering access to high-quality liquidity across a wide range of markets. The integration of ITS aims to reduce costs, lower risks, and manage regulatory compliance more effectively, while providing greater operational efficiency and transparency for asset managers.
The partnership is also expected to support 2Xideas’ proprietary Analysis and Collaboration Engine (ACE) platform, which facilitates its team-based investment process. The company’s expansion of its trading capabilities is seen as a natural progression in its growth strategy, helping it drive long-term performance for its clients.
Amy Thorne emphasised the strength of Northern Trust’s award-winning outsourced trading desk, noting its strong record in trade execution and operational efficiency. “We look forward to supporting 2Xideas at both firm and fund levels as they continue to generate alpha for their clients,” she added.
Northern Trust’s ITS service is part of its broader Institutional Brokerage offering, which also includes foreign exchange, securities lending, and transition management services. These services are designed to help asset owners and managers reduce risk, lower operational costs, and enhance transparency.
With this expanded partnership, both 2Xideas and Northern Trust are poised to enhance their capabilities in the highly competitive investment management sector. The collaboration demonstrates a continued focus on delivering innovative solutions for clients, with ITS providing critical support to meet the evolving demands of the global financial markets.