Northern Trust Asset Management is expanding its fixed income team in Europe and also looking to grow its business in the UK.

John McCareins, head of Northern Trust Asset Management International, said at a media briefing in London on 25 September  that fixed income is the most interesting large allocation. McCareins is responsible for Europe, the Middle East, and Africa (EMEA) and Asia Pacific (APAC).

“Fixed income was unloved but we have seen meaningful investments over in the last 12 to 24 months,” he added.

As a result, in April this year Northern Trust Asset Management announced  that Christian Roth has been hired as chief investment officer of global fixed income. He was most recently at Morgan Stanley Investment Management, where he held a variety of global fixed income leadership roles since 1999. In 2023, Roth was chairman, broad markets fixed income at Morgan Stanley Investment Management.

Roth reports to Angelo Manioudakis, global chief investment officer at Northern Trust Asset Management. Manioudakis said in a statement: “Chris’s hire plays a key role in NTAM’s continued investment in our global fixed income capabilities, talent, and technology, bolstering our ability to continue delivering investment solutions that seek to meet our clients’ needs in all market environments.”

Northern Trust Asset Management had $414.1bn assets under management in fixed income and liquidity strategies, as of 31 December 2023 according to the firm. McCareins added that Northern Trust Asset Management is continuing to recruit for fixed income in EMEA and will also make hires next year.

“Fixed income is a growing area and we had 20% year-on-year growth in the first half of this year,” said McCareins.

He continued that Northern Trust Asset Management will redouble its efforts in the UK to build its business, especially in collaboration with NT’s asset servicing business focusing on government pension funds and asset aggregators.

In August this year Northern Trust Asset Management appointed Paul Clark as global head of stewardship, based in London. Clark had previously spent 30 years with UBS Asset Management, where he had been head of stewardship since 2015.

McCareins said Northern Trust Asset Management is looking to hire a number of ESG strategists in Europe and also has a remit to hire a UK head of distribution.

“Money will be in motion,” he added.

Northern Trust Asset Management does not have a private markets capability outside the US and McCareins said the firm is reviewing the situation.