Northern Trust has launched an artificial intelligence-powered solution to extract unstructured investment data from alternative asset documents.
Developed in partnership with Microsoft Azure Applied AI Services and business and consulting firm Neudesic, the new solution builds on Northern Trust’s efforts to digitise alternative asset servicing.
It is designed to transforms details including capital call notices, cash and stock distribution notices, and capital account statements from a range of unstructured formats into digital, actionable insights for investment teams.
Northern Trust president of corporate and institutional services Pete Cherecwich said: “Automating investment data is a focus for Northern Trust, particularly for alternative assets due to their complexity and growing investor demand.
“Our investments in cloud technology, artificial intelligence, blockchain and machine learning will help asset owners achieve a true understanding of their assets and portfolios as a whole.”
Asset managers are expected to benefit from more current information related to their alternative assets through data extraction and integration.
Northern Trust previously rolled out custom-built robotic process automation solution to capture, categorise and collect alternative asset documents on a cloud-based drive.
The latest solution will analyse stored documents and fund manager reports on holdings and performance of hedge funds, private equity and other alternative assets and extract data points including asset names, currencies and market value, the company stated.
It is also expected to offer increased data transparency and enable asset managers to be more proactive about making necessary strategy changes.
Microsoft Azure AI and Machine Learning senior director Bharat Sandhu said: “AI and natural language processing offers a profound impact on business processes across industries, and this use case is a stellar example of their potential for alternative asset administration.
“We’re proud to collaborate with Northern Trust to make these emerging technologies more accessible and put their benefits into the hands of institutional investors seeking greater efficiency and clearer insight into their investments.”
In May this year, Northern Trust concluded its acquisition of Parilux Investment Technology to strengthen its Front Office Solutions business.
The acquisition followed the asset manager’s investment in the Parilux and its technology since 2018.