Northern Trust Corp (NASDAQ:NTRS) has added Berenberg to its framework of dynamic currency hedging solutions, enabling Northern Trust’s clients to incorporate third-party currency management strategies, such as Berenberg’s AI based models, into their range of risk management choices.

Northern Trust’s dynamic currency hedging solution allows clients to adjust hedge ratios based on real-time market conditions and model-driven forecasts. By incorporating capabilities from solutions such as Berenberg’s, Northern Trust’s clients can choose to add models that complement their investment strategies, helping them to reduce volatility and improve risk-adjusted returns. The solution is available across the US, UK, Europe, Australia, and Canada, and is designed to support both asset owners and asset managers.

“As we start to see increased volatility in markets and data-driven strategies become more critical, our clients are increasingly seeking novel solutions to manage currency risk,” said Marcus Fernandes, global head of currency management at Northern Trust. “With dynamic currency hedging, we’re offering clients greater optionality when it comes to currency management.”

Berenberg is one of Europe’s oldest banks and is among the leaders in applying artificial intelligence to financial markets. Its proprietary FX alpha and risk models are designed to capture market signals and support dynamic risk management within currency hedging strategies.

Nico Baum, head of solutions at Berenberg said:

“We’re excited to collaborate with Northern Trust to bring our AI-driven FX models to a broader institutional audience. Our approach is designed to help investors make more informed hedging decisions in an increasingly technology driven and complex global environment.”

Northern Trust delivers a full suite of global foreign exchange solutions including FX outsourcing, tailored currency management solutions, and algorithmic trading from trading centres in London, Chicago and Singapore.