- What is Northern Trust Corporation and what does it do?
- What are Northern Trust Corporation's major business segments and what services does each provide?
- What are Northern Trust's competitive strengths?
- How does Northern Trust rank among asset servicing and custody providers?
- How does Northern Trust Asset Management rank among asset managers?
- How does Northern Trust rank among private banks and wealth managers?
- What is the Operations and Technology business unit?
- How long has Frederick H. Waddell (Northern Trust's Chairman and CEO) been at Northern Trust? What is his background?
1.) What is Northern Trust Corporation and what does it do?
Northern Trust Corporation, founded in 1889, is a financial holding company headquartered in Chicago that is a leading provider of asset servicing, fund administration, investment management, banking and fiduciary solutions for corporations, institutions and affluent individuals.
Northern Trust conducts business through various global subsidiaries, including The Northern Trust Company, an Illinois banking corporation. Northern Trust has an extensive network of offices in 18 U.S. states: Illinois, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New York, Ohio, Texas, Washington and Wisconsin. Other offices around the world are located in Abu Dhabi, Amsterdam, Bangalore, Beijing, Dublin, Guernsey, Hong Kong, Jersey, Limerick, London, Luxembourg, Melbourne, Singapore, Stockholm, Tokyo and Toronto.
As of March 31, 2013, Northern Trust Corporation has approximately US$93 billion in banking assets, US$810.2 billion in assets under management and US$5.0 trillion in assets under custody.
2.) What are Northern Trust Corporation's major business segments and what services does each provide?
Northern Trust Corporation has three main business areas:
- Asset servicing
- Asset management
- Wealth management
These serve two principal client types: institutional and personal.
Asset servicing
With US$5.0 trillion in assets under custody (as of March 31, 2013), Northern Trust is a leading global provider of asset servicing, fund administration, and related services. Our institutional clients are located in more than 40 countries and we support their asset servicing needs in approximately 100 markets worldwide. Clients include asset managers, sovereign wealth funds, central banks, insurance companies, corporations, public retirement funds, foundations, endowments and financial institutions, whose complex needs drive our growth. Northern Trust has earned a reputation for high-quality client service and industry-leading technology, resulting in long-term client partnerships and frequent industry recognition as one of the world’s foremost institutional asset servicers.
Asset management
Northern Trust Asset Management is one of the world’s largest investment managers with US$810.2 billion in assets under management (as of March 31, 2013). Northern Trust Asset Management is a multi-capability asset manager serving affluent individuals and families and institutional clients in more than 40 countries around the world. Northern Trust Asset Management’s market-leading range of global index, active fixed income and equity, and manager of managers capabilities enables customized solutions across the risk spectrum. These solutions are delivered through separately managed accounts, Northern Funds for personal investors, Northern Institutional Funds for institutional investors, bank common and collective funds, non-U.S. collective funds and unregistered investment funds. In addition to these proprietary solutions, the manager of managers subsidiary, The Northern Trust Company of Connecticut, has investments with more than 200 external managers worldwide. Investment program solutions range from retail mutual funds and alternative asset classes to emerging manager programs and total investment program management for institutions and affluent individuals and families.
Wealth management
Personal Financial Services (PFS) at Northern Trust offers financial planning, investment management, trust and estate services, philanthropic advisory and private and business banking. PFS is focused on high-net-worth individuals and families, business owners, executives, professionals, retirees and established privately held businesses. PFS operates through an extensive network of offices in 18 states - Illinois, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New York, Ohio, Texas, Washington and Wisconsin. In distinctive, full-service facilities, experienced Northern Trust professionals work in a client service culture that is unparalleled in the industry. The Wealth Management Group provides sophisticated financial solutions to families and family offices with complex global asset structures, generally more than $200 million in investable assets. Clients of this group include more than 20% of the Forbes list of the 400 richest Americans.
3.) What are Northern Trust's competitive strengths?
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A fiduciary heritage spanning more than 120 years
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A client-centric, highly focused business strategy
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An outstanding client base
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Leading-edge technologies
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Asset servicing capabilities in approximately 100 financial markets worldwide
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One of the world’s largest investment managers
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A unique Personal Financial Services network in the most desirable U.S. markets
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A strong risk management culture
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Financial strength and stability
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A commitment to service, expertise and integrity
4.) How does Northern Trust rank among asset servicing and custody providers?
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Best Global Custodian – Asian Investor 2010 Service Provider Awards
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Best Global Investor Services House – Euromoney 2010 Awards for Excellence (July 2010)
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Client Relationship Manager of the Year – ICFA Americas Awards (May 2010)
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Outsourcing Provider of the Year – ICFA Americas Awards (May 2010)
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Custodian of the Year – U.K. Pensions Awards 2010, Professional Pensions Magazine (April 2010)
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Best Custody Specialist in Asia – Second Consecutive Win, The Asset Magazine Awards (March 2010)
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Best Client Servicing (APAC) – Best of the Best Awards, Asia Asset Management (February 2010)
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Securities Outsourcing Provider of the Year – Financial-i Leaders in Innovation Awards (December 2009)
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Special Commendation: European Custodian of the Year – Funds Europe Awards 2009 (December 2009)
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European Client Relationship Manager of the Year – ICFA European Awards (November 2009)
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Custodian of the Year: The Netherlands – ICFA European Awards (November 2009 and November 2008)
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Best Overall Hedge Fund Administrator, U.S. Service Provider Awards – HFM Week (October 2009)
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Custodian of the Year – European Pensions Awards (July 2009)
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Pension Pooling Award of the Year – European Pensions Awards (July 2009 and July 2008)
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Outsourcing Deal of the Year – Capital Markets – FSOkx Excellence Awards (June 2009)
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Best Fund of Hedge Funds Administrator, European Service Provider Awards – HFM Week
(May 2010 and May 2009 – general FOHF category)
5.) How does Northern Trust Asset Management rank among asset managers?
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3rd largest manager of defined benefit assets – pionline.com, Pensions & Investments, 2010 Special Report on Money Managers, as of 12/31/09, out of 425 ranked
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3rd largest manager of sovereign wealth fund assets – pionline.com, Pensions & Investments, Top Managers of Sovereign Wealth Fund Assets, as of 12/31/09, out of 78 ranked
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4th largest index manager, worldwide indexed assets – pionline.com, Pensions & Investments, Top Ranked Index Managers, as of 6/30/10, out of 67 ranked
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7th largest institutional asset manager in Asia – Asia Asset Management (September 2010), Fund Manager Survey, out of 59 ranked
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10th largest manager of 401(k) plan assets – pionline.com, Pensions & Investments, DC Money Managers Survey, as of 12/31/09, out of 237 ranked
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12th largest total worldwide institutional assets under management – pionline.com, Pensions & Investments, 2010 Special Report on Money Managers, as of 12/31/09, out of 79 ranked
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13th largest U.S. money manager – Institutional Investor (July/August 2010), II 300 – America’s Biggest Money Managers, out of 300 ranked
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15th largest total worldwide assets under management – pionline.com, Pensions & Investments, 2010 Special Report on Money Managers, as of 12/31/09, out of 774 ranked
Rankings are not indicative of future performance. No fees were paid to participate in the above rankings.
6.) How does Northern Trust rank among private banks and wealth managers?
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Number 1 in Category: The World’s Most Admired Companies List – Fortune Magazine (2010)
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Best Private Bank in North America – Financial Times Group (2009-2010)
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Ranked among Top 10 Wealth Managers – Barron’s (2009)
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Best Private Bank in North America for Trust Services, Inheritance and Succession Planning, and Family Office Services – Euromoney (2010)
7.) What is the Operations and Technology business unit?
Operations and Technology supports all of Northern Trust’s global business activities, including the processing and product management activities of asset servicing, asset management and wealth management. These activities are conducted principally in the operations and technology centers in Chicago, London and Bangalore and fund administration centers in Ireland.
8.) How long has Frederick H. Waddell (Northern Trust's Chairman and CEO) been at Northern Trust? What is his background?
Frederick (Rick) Waddell joined Northern Trust in 1975. He was appointed Chief Executive Officer on January 1, 2008 and became Chairman on November 11, 2009. Prior to that, he served from February 2006 as President and Chief Operating Officer, and was President of the Corporate and Institutional Services business unit from 2003 until 2006. From 1994 until 2003, he led Northern Trust’s Wealth Management Group. From 1991 until 1994, he was Executive Vice President for Northern Trust Bank of California, with responsibility for the Los Angeles and Westwood offices. During the 1980s, he was responsible for Corporate Strategic Planning and Corporate Marketing, and held various positions of responsibility and management in the Corporation’s Commercial Banking division.