Program Solutions Conference

Transcription

1 NORTHERN TRUST 2010 PROGRAM SOLUTIONS CONFERENCE Investment Solutions in an Uncertain World: WHAT S NEXT? Program Solutions Conference Welcome Alan Robertson Executive Vice President Northern Trust Global Investments, Client Solutions Group 2010 Northern Trust Corporation northerntrust.com

2 Unique in Our Business Focus Northern Trust - Client-Centric; Highly Focused Business Model CLIENTS Asset Servicing PERSONAL FINANCIAL SERVICES $3.6T Assets Under Custody Asset Management $603B Assets Under Management CORPORATE & INSTITUTIONAL SERVICES INTEGRATED OPERATIONS AND TECHNOLOGY PLATFORM As of June 30, Program Solutions Conference

3 Unique in Our Business Focus Long-term Growth in Client Assets Exceeds Markets % Change Vs. Assets at 5 Year June 30, 2010 Last Qtr Last Yr CAGR Assets Under Custody $3.6 Trillion -4% +11% +6% Global Custody Assets $1.9 Trillion -4% +14% +12% Assets Under Management $603 Billion -7% +8% +0.4% Equity Market Indices: S&P % +12% -3% US$ EAFE (international index) -12% +7% -2% When considered on a longer-term basis, our asset accumulation rates consistently outperform the market Program Solutions Conference

4 Unique in Our Business Focus Strong Asset Management Industry Positioning 11 th Largest Manager of Worldwide Institutional Assets Pensions & Investments (2010) 2 nd Largest Passive International Indexed Securities Manager Pensions & Investments (2010) Investment Management Firm of the Year ACQ Finance Magazine (2009) As of 30 June 2010 (updated when appropriate) Source: Northern Trust Program Solutions Conference

5 Unique in Our Business Focus A Continuum of Global Investment Products Focused on global index management, short and long duration fixed income, and access to active management via manager of manager and proprietary strategies. Equities Fixed Income Alternatives Products Active Global Index Management Manager of Managers Services Securities Lending Transition Management Commission Recapture Securities Brokerage Cash Overlay Program Solutions Conference

6 Manager of Managers Assets Under Management / Assets Under Advisement ($ in Billions) Assets Under Management $ 31.6 Billion Assets Under Advisement $ 18.8 Billion Europe/Asia, $0.6 Canada, $0.3 Hedge Funds, $1.3 Private Equity Funds, $0.8 Canada, $2.4 Multi-Manager Mutual Funds, $7.2 U.S. Institutional Investment Program Solutions, $6.0 U.S. Private Client Multi-Advisor Funds, $0.5 U.S. Institutional Investment Program Solutions, $20.9 U.S. Private Client Investment Program Solutions, $10.4 USD, as of June 30, Program Solutions Conference

7 Manager of Managers Professionals 111 Professionals Executives/Management (4) Program Management (20) Manager Research (26) Portfolio Construction (14) Legal/Compliance (6) Risk Management (5) Marketing & Product Management (5) Performance Analysis & Reporting (16) Finance, Operations and Administration (15) As of June 30, Program Solutions Conference

8 Emerging Managers Business Overview Northern Trust is a pioneer in the emerging manager business Consistent performance track record since inception (1993)* $4.8 billion invested with emerging managers $2.9 billion in assets under management in dedicated Emerging Managers programs High profile client base willing to serve as references 12 institutional clients and 17 investment mandates 42 funded managers spread across 46 investment strategies Multi-asset class long-only product capabilities As of June 30, 2010 *Gross of fees Source: Northern Trust Program Solutions Conference

9 Emerging Manager Definition: General Parameters Smaller investment firms and/or firms with shorter operating history and performance records Less than $2 billion assets under management at time of investment for US equity managers Less than $3 billion assets under management at time of investment for fixed income or international equity managers Independently owned (at least 51% employee ownership) Majority women and minority owned firms (51% or greater ownership) irrespective of assets under management Assets under management beyond $10 billion tends to be a threshold whereby managers cross over to mainstream Program Solutions Conference

10 Emerging Managers and Northern Trust: Positioned for the Future Focus on client solutions Commitment to increasing the use of emerging managers across all businesses not just emerging manager mandates Broad Northern Trust client access to Northern Trust emerging manager experience and manager out-performance potential Program Solutions Conference

11 Important Information NOT A SOLICITATION. No information provided herein shall constitute, or be construed as, an offer to sell or a solicitation of an offer to acquire any security, investment product or service, nor shall any such security, product or service be offered or sold in any jurisdiction where such offer or solicitation is prohibited by law or regulation. This material is provided for informational purposes only and does not constitute a recommendation of any investment strategy or product described herein. Opinions expressed are those of the presenter(s) and subject to change without notice Program Solutions Conference