COMMISSION RECAPTURE. Report Guide

Transcription

1 COMMISSION RECAPTURE Report Guide

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3 COMPREHENSIVE REPORTING AND MONITORING With Northern Trust Securities, Inc. s Commission Recapture Program, you can monitor your managers participation rate in the program, view related rebates, and quantify the program s effect on manager commission rates. By using your exclusive commission recapture consolidation code (first four letters of sponsor area + CR ) you will receive analytics for each of your investment managers enrolled in the program. This guide presents a sample page from each report, highlights its functionality and references each data element for clarity. If you have any questions regarding this guide or would like more information about commission recapture in general, please contact your Northern Trust representative.

4 CONTENTS COMMISSION RECAPTURE PERFORMANCE SCORECARD EFFECTIVE COMMISSION RATES NORTHERN TRUST

5 COMMISSION RECAPTURE PERFORMANCE SCORECARD A B C D E F G Northern =ust *Generated by Northern Trust Securities, Inc. (SIPC, NASD) and a subsidiary of the Northern Trust Corporation from periodic data on XX Apr XX C2109 The Commission Recapture Performance Scorecard provides information on the percentage of total commissions that are directed to the program as well as the rebates received on this trading. To run the report, use a From Date that is equal to the first day of a month and a To Date that is equal to the last calendar day of a month. The report can be run dating back to the start date in the program. Rebates are posted in USD and reflected in the client s base currency on the report. A B C D Total Trades is the number of trades executed by each investment manager. Total Custody Account Commissions is the total commissions paid by each investment manager. Total Trades NTSI/Network is the number of trades executed with Northern Trust s Commission Recapture broker network. Manager Directed Commissions is the total gross commissions paid to Northern Trust s Commission Recapture broker network. E F G Total Rebate Basis is the amount of commissions paid to Northern Trust s Commission Recapture broker network eligible for payment. % of Trading NTSI/Network is the Total Manager Directed Commissions divided by Total Commissions, or E/B. Client Rebate Amount is the sum of all rebates received during the time period selected. NORTHERN TRUST 3

6 EFFECTIVE COMMISSION RATES A B C D E F G H I Northern =ust *Generated by Northern Trust Securities, Inc. (SIPC, NASD) and a subsidiary of the Northern Trust Corporation from periodic data on XX APR XX C2045 *Commission rate calculations are based on agency trades, or trades where a commission was paid. The Effective Commission Rates report provides information on the percentage of total commissions that are directed to the program as well as the rebates received on this trading which is similar to the Performance Scorecard. In addition, the report provides information on the manager s actual commission rate before the rebate, and the effective commission rate after the rebate. Note that only agency trades, or trades where a commission was paid, are included in the above calculation. To run the report, use a From Date that is equal to the first day of a month and a To Date that is equal to the last calendar day of a month. The report can be run dating back to the start date in the program. Rebates are posted in USD and reflected in the client s base currency on the report. A B C D E Total Custody Account Commissions is the total commissions paid by each investment manager. Manager Directed Commissions is the total gross commissions paid to Northern Trust s Commission Recapture broker network. Total Rebate Basis is the amount of commissions paid to Northern Trust s Commission Recapture broker network. % of Trading NTSI/Network is the total Manager Directed Commissions divided by Total Commissions, or B/A. Client Rebate Amount is the sum of all rebates received during the time period selected. F G H I Per Share commission rate before rebate is calculated as A / (Number of shares traded in the period for trades in which a commission was paid) (i.e., agency trades). Basis Point Cost before rebate is calculated as (A / (Principal Amount Traded)) * 10,000. Per Share commission rate after rebate is calculated as (A-Rebate Amount) / (Number of shares traded in the period for trades in which a commission was paid). Basis Point Cost after rebate is calculated as ((A-Rebate Amount)/ (Principal Amount Traded)) * 10, NORTHERN TRUST

7 Securities products and services are offered by Northern Trust Securities, Inc., member NASD, SIPC, and a wholly owned subsidiary of Northern Trust Corporation, Chicago.

8 northerntrust.com Q3858 (4/06)