Shundrawn Thomas, the new president of Northern Trust Asset Management, says he has made it a priority to build both the money manager's quantitative investment business and its ETF operation over the next few years.
The 43-year-old executive, who began his new role on Oct. 1, replaced Stephen N. Potter, who became vice chairman of parent company Northern Trust Corp.
Northern Trust Asset Management had total assets under management of $953.7 billion and institutional assets of $741.5 billion as of Sept. 30, according to company data. As of Sept. 30, it held more than $500 billion under management in passive equity and passive fixed-income strategies, according to Northern Trust.
But it is a much smaller player in quantitative investment strategies and exchange-traded funds, which can have higher fees than passive strategies. Northern Trust's quantitative, factor-based investment strategies account for $19.7 billion in assets under management, although the number rises by another $40.2 billion, if tax-advantaged equity strategies are included.
"I'm not going to put a specific number on it today," Mr. Thomas said in an interview at Northern Trust's offices in Chicago. "If you ask me as we look out over the next five years ... do I expect a significant growth … on those quantitative strategies? Absolutely."
Mr. Thomas also sees continued growth of Northern Trust's ETF business, which today accounts for $15 billion in assets.