2010 INVESTOR DAY: Welcome Rick Waddell Chairman and Chief Executive Officer Addressing Today's Challenges. Positioned for Tomorrow's Growth. © 2010 Northern Trust Corporation May 26, 2010 EXHIBIT 99.1 |
2010 INVESTOR DAY 2 Forward Looking Statement This presentation may include forward-looking statements such as statements that relate to Northern Trust’s financial goals, capital adequacy, dividend policy, expansion and business development plans, risk management policies, anticipated expense levels and projected profit improvements, business prospects and positioning with respect to market, demographic and pricing trends, strategic initiatives, re-engineering and outsourcing activities, new business results and outlook, changes in securities market prices, credit quality including reserve levels, planned capital expenditures and technology spending, anticipated tax benefits and expenses, and the effects of any extraordinary events and various other matters (including developments with respect to litigation, other contingent liabilities and obligations, and regulation involving Northern Trust and changes in accounting policies, standards and interpretations) on Northern Trust’s business and results. These statements speak of Northern Trust’s plans, goals, targets, strategies, beliefs, and expectations, and refer to estimates or use similar terms. Actual results could differ materially from those indicated by these statements because the realization of those results is subject to many risks and uncertainties. Our 2009 annual report and periodic reports to the SEC contain information about specific factors that could cause actual results to differ, and you are urged to read them. Northern Trust disclaims any continuing accuracy of the information provided in this presentation after today. |
2010 INVESTOR DAY 3 Financial Overview Personal Financial Services Corporate & Institutional Services Northern Trust Global Investments Summary and Q&A Bill Morrison, EVP and Chief Financial Officer Sherry Barrat, President, PFS Steve Fradkin, President, C&IS Steve Potter, President, NTGI Bob Browne, EVP and Chief Investment Officer Rick Waddell, Chairman and CEO Agenda: Addressing Today’s Challenges. Positioned for Tomorrow’s Growth. |
2010 INVESTOR DAY 4 Client Centric, Highly Focused Business Model Founded in 1889, Northern Trust Corporation is a global leader in asset management and asset servicing for institutional and personal clients. O&T: Integrated global operating platform Serving personal and institutional clients $1.3 billion in technology spending, 2007-2009 PFS: Leading advisor to affluent market $149 billion AUM $341 billion AUC C&IS: Leading global custodian $3.4 trillion AUC $498 billion AUM NTGI: Leading asset manager for personal & institutional clients $647 billion AUM As of March 31, 2010 PERSONAL FINANCIAL SERVICES CORPORATE & INSTITUTIONAL SERVICES CLIENTS |
2010 INVESTOR DAY 5 Client Centric, Highly Focused Business Model As of March 31, 2010 The strategic businesses that Northern Trust has focused on – consistently for many years – continue to offer compelling and attractive growth opportunities Outstanding client base Strong and supportive demographic trends Continued globalization fueling international growth High barriers to entry Attractive profitability dynamics PERSONAL FINANCIAL SERVICES CORPORATE & INSTITUTIONAL SERVICES CLIENTS PERSONAL FINANCIAL SERVICES CORPORATE & INSTITUTIONAL SERVICES CLIENTS |
2010 INVESTOR DAY 6 Addressing Today’s Challenges Fed Funds Effective Rate (%) 6 5 4 3 2 1 0 09 08 07 06 05 GDP (%) 4 2 0 -2 -4 09 08 07 06 05 S&P 500 1600 1400 1200 1000 800 600 09 08 07 06 05 S&P/Case-Shiller Home Price Index 200 180 160 140 120 09 08 07 06 05 Challenges created by the macroeconomic environment in recent years have served as headwinds to strong growth and financial performance. |
2010 INVESTOR DAY 7 Positioned for Tomorrow’s Growth Our Key Growth Initiatives are Driven by: Geography Innovation People Clients Acquisitions While the environment continues to be challenging, Northern Trust will drive growth by successfully executing on our fundamental strategies in highly attractive businesses. |
Financial Overview Bill Morrison Executive Vice President and Chief Financial Officer © 2010 Northern Trust Corporation May 26, 2010 Addressing Today's Challenges. Positioned for Tomorrow's Growth. |
FINANCIAL OVERVIEW 9 Financial Performance Overview Outstanding Financial Strength Across Cycles Loan Portfolio Securities Portfolio Capital Implications of the Current Environment Trust, Investment & Other Servicing Fees Securities Lending Fees Foreign Exchange Trading Income Net Interest Income Loan Loss Provision Agenda: Addressing Today’s Challenges. Positioned for Tomorrow’s Growth. |
FINANCIAL OVERVIEW 10 FY09* FY09* vs FY08* 1Q10 1Q10 vs 1Q09 Solid Performance in a Challenging Macroeconomic Environment Trust, Inv. & Other Servicing Fees Foreign Exchange Trading Income Other Non-Interest Income Net Interest Income Total Revenues Non-Interest Expenses Provision for Credit Losses Pre-Tax Income Taxes Net Income EPS $2,084 $446 $257 $1,040 $3,827 $2,334 $215 $1,278 $425 $853 $3.11 Operating Basis e.g. excluding VISA related items ($MM, except EPS) -2% -28% -8% -8% -8% -21% 87% 18% -4% 33% 11% *Northern Trust is providing operating results, which exclude Visa related adjustments, in order to provide a clearer indication of the results and trends in Northern Trust's core businesses. $515 $80 $73 $240 $908 $620 $40 $248 $91 $157 $0.64 25% -39% -3% -17% N/M 4% -27% -3% -3% -3% 5% |
FINANCIAL OVERVIEW 11 Strong Asset Accumulation Across the “Lost” Decade C&IS PFS CAGR: 9% S&P 500 CAGR -1% CAGR 9% S&P 500 CAGR -1% EAFE CAGR -3% CAGR 5% S&P 500 CAGR -1% CAGR 8% S&P 500 CAGR -1% Assets Under Custody $BN Assets Under Management $BN |
FINANCIAL OVERVIEW 12 Performance vs. Long-Term Strategic Targets Return on Equity Revenue Growth EPS Growth Operating Leverage 5-Year Performance 16.0% 10.5% 6.5% +1.67 3-Year Performance 15.1% 7.7% 1.3% +1.67 10-Year Performance 16.7% 8.0% 6.0% +0.32 15-Year Performance 17.4% 9.3% 4.6% +0.99 16% - 18% 8% - 10% 10% - 12% Positive Long-term Target 2009 Performance 12.7% -8.0% 11.4% +13.2 *Calculated on an Operating basis, i.e. excluding all VISA items in FY07, FY08 and FY09. Return on Equity is an average of the relevant years. Revenue and EPS Growth represent compound annual growth rates. Operating Leverage calculated using the difference between the compound annual growth rates of revenues and expenses. |
Outstanding and Consistent Financial Strength Across Cycles FINANCIAL OVERVIEW |
FINANCIAL OVERVIEW 14 Diversified and High Quality Loan Portfolio All data is as of 3/31/10. NPAs = Nonperforming Assets. NCOs = Net Charge-offs $28 Billion Loan Portfolio $BN Loan Quality Notably Better than Industry Averages Northern Trust Top 20 Peer Avg. |
FINANCIAL OVERVIEW 15 High Quality Securities Portfolio ($19) ($317) ($36) Net unrealized gain / (loss) $MM 0.2% 2.0% 0.2% Net unrealized loss as a % of Securities Portfolio Securities Portfolio $BN ($19) 0.1% $44 $14 $19 - - - High quality, short duration securities portfolio 90% invested in U.S. Treasury, government sponsored agency and triple-A rated securities Minimal level of unrealized losses due to long-term focus on conservative, high quality investments |
FINANCIAL OVERVIEW 16 Consistently Strong Capital Ratios Tier 1 Capital 13.0% 13.4% Total Risk-Based 15.2% 15.5% Leverage 8.9% 8.9% Tier 1 Common Equity 9.6% 12.8% Tangible Common Equity 5.9% 7.9% Capital Ratios 3/31/09 3/31/10 Shareholders’ Equity $BN Capital ratios well above “well capitalized” guidelines High percentage of common equity |
FINANCIAL OVERVIEW Financial Implications of the Current Environment |
FINANCIAL OVERVIEW 18 Trust, Investment and Other Servicing Fees Note: Excludes impact of mark-to-market adjustments in one investment fund used in securities lending activities. Trust, Investment and Other Servicing Fees $MM (Excludes impact of mark to market fund) S&P 500 EAFE 52% of FY2009 revenue Based generally on market value of client assets, volume of transactions and fees for other services rendered Extremely low short term interest rates have resulted in waived fees in money market mutual funds, which equaled $20 million in 1Q 2010 ($80 million annualized) |
FINANCIAL OVERVIEW 19 Securities Lending Fees 4% of FY2009 revenue Affected by market values; supply of securities to be lent; demand for securities (all of which drive volumes); and the interest rate spread earned on reinvested collateral Credit crisis caused spread widening from 2H2007 through 1H2009 when compared with historical averages Extremely low short-term interest rates and more conservative investment guidelines have compressed fee realization in 2010 Securities Lending Fees (Excludes impact of mark-to-market fund) $289 $225 $112 SL Avg Collateral $BN 0.10% 0.19% 0.12% SL Fees / Avg Collateral $122 0.06% $239 0.08% $204 0.07% $159 0.08% $111 0.09% $96 0.10% $97 0.14% $85 0.14% $MM Note: Excludes impact of mark-to-market adjustments in one investment fund used in securities lending activities. |
FINANCIAL OVERVIEW 20 Foreign Exchange Trading Income 12% of FY2009 revenue Foreign exchange services provided to clients as an integral part of global custody service Credit crisis heightened market and currency volatility in 2007-2009 when compared with historical averages Foreign Exchange Trading Income $MM Global Custody Assets $TN Annual FX as a % of Global Custody Assets $2.1 $1.4 $1.9 $2.0 $1.7 $1.2 $1.0 .016% .014% .015% .017% .043% .023% .016% $0.7 .015% $0.5 .023% $0.5 .031% $0.4 .040% Global Custody Assets $140 $106 $110 $158 $180 $247 $351 $616 $446 $80 $153 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 1Q10 |
FINANCIAL OVERVIEW 21 Net Interest Income Net Interest Income $MM 27% of FY2009 revenue Liability driven balance sheet fuels significant generation of deposits from institutional and personal clients Credit crisis has pressured net interest margin due to extremely low short-term interest rates Net interest margin in 1Q 2010 of 1.44% well below 2003- 2008 average of 1.74% 1.70% 1.76% 1.56% Net Interest Margin 1.44% 1.76% 1.82% 1.66% 1.73% 1.93% 2.02% 2.02% Avg Fed Funds Rate |
FINANCIAL OVERVIEW 22 Loan Loss Provision Loan Loss Provision $MM LLP to Avg. Loans Avg. Loans $BN Lending strategy focuses on personal and institutional clients who are looking to establish a full range of financial services with Northern Trust Long-standing adherence to conservative lending standards Centralized credit policy function assures uniform application of credit risk management policies and practices Elevated loan loss provision in current cycle reflects ongoing weakness in the broader economic environment 0.08% 0.42% 0.75% 0.58% 0.07% 0.01% -0.09% 0.01% 0.21% 0.37% 0.15% $22.8 $27.4 $28.7 $27.5 $20.5 $18.8 $17.5 $17.5 $17.6 $17.9 $16.5 LLP to Avg. Loans |
FINANCIAL OVERVIEW 23 Key Takeaways Leadership positions in excellent client-focused businesses Attractive client, geographic and demographic growth opportunities Long track record of serving clients and successfully aggregating assets Distinctive balance sheet and capital strength Proven record of managing the business for long-term growth and profitability |
Personal Financial Services Sherry Barrat President, PFS Addressing Today's Challenges. Positioned for Tomorrow's Growth. © 2010 Northern Trust Corporation May 26, 2010 |
25 PERSONAL FINANCIAL SERVICES Strategic and Competitive Positioning Client Focus and Growth Initiatives Wealth Management Wealth Advisory Private Client Foundations & Institutions Agenda: Addressing Today’s Challenges. Positioned for Tomorrow’s Growth. |
26 PERSONAL FINANCIAL SERVICES Industry Leading Provider of Integrated Financial Solutions PRIVATE CLIENT WEALTH ADVISORY WEALTH MANAGEMENT FOUNDATIONS AND INSTITUTIONS Our value proposition has never been stronger – the strength of our comprehensive array of solutions, and our focus on clients, technology and financial discipline will drive future growth. |
27 PERSONAL FINANCIAL SERVICES Opportunities Abound Best-in-Class Performance – BusinessWeek (April 2009) Best Private Bank in North America… For Family Office Services For Trust Services For Inheritance and Succession Planning – Euromoney Magazine (February 2010) Serving More than 20% of Forbes 400 – Forbes (September 2009) Best Private Bank in North America – FT Group (November 2009) Ranked among the Top 10 Wealth Managers – Barron’s (September 2009) Trusted brand Outstanding financial strength Not distracted Clients need holistic advice Robust product offering Leveraging client segmentation Investing in talent and technology Well positioned and enviable U.S. office network Going global |
Client Focus & Key Growth Initiatives PERSONAL FINANCIAL SERVICES |
29 PERSONAL FINANCIAL SERVICES Wealth Management AUC $201 Billion AUM $32 Billion Positioned Strategically Share of Total FY09 PFS Revenues Wealth Management Serving family offices and families with complex global asset structures, generally with $200+ million in investable assets Serving 20% of Forbes 400 wealthiest families Clients located in U.S. and 18 other countries Industry leader with very few competitors Leverages global institutional technology 14% Private Client Wealth Advisory Foundations & Institutions AUC and AUM as of March 31, 2010 Growth Initiatives Clients Relationship expansion Asset management solutions Family office networking Market leading client portal technology: General ledger Advanced partnership accounting Private equity monitoring Leverage global presence Geography Innovation |
30 PERSONAL FINANCIAL SERVICES Wealth Advisory Serving individuals and families with $10 - $200 million in investable assets Comprehensive financial advice and solutions Service from a dedicated team of multi-disciplinary professionals Depth and breadth of capabilities AUM $60 Billion Share of Total FY09 PFS Revenues Wealth Management 34% Private Client Wealth Advisory Foundations & Institutions Positioned Strategically Innovation Clients 78 offices in 18 states Geography Growing ranks of wealth advisors Family advisory services Enhanced investment solutions Referrals from highly satisfied clients Executing team-based client strategies Acquisitions Growth Initiatives Washington, DC Capabilities AUM as of March 31, 2010 People Geography |
31 Positioned Strategically Private Client AUM $51 Billion Serving individuals and families with up to $10 million in investable assets Delivering the Northern Trust client experience to the millionaire next door Effectiveness + Efficiency = Growth Well positioned office network Share of Total FY09 PFS Revenues Wealth Management Private Client 50% Wealth Advisory Foundations & Institutions Innovation Clients Client segmentation focus fuels: Improved client service Greater share of wallet as clients’ wealth grows Accelerating client referrals Enhanced efficiency Seventh generation Private Passport ® technology Investment solutions Growth Initiatives AUM as of March 31, 2010 PERSONAL FINANCIAL SERVICES |
PERSONAL FINANCIAL SERVICES Foundations & Institutions AUM $6 Billion Serving private and public foundations and endowments with $5 - $250 million in investable assets Leverages sophisticated C&IS and NTGI capabilities Uniquely positioned to capitalize on the convergence of personal and institutional markets Share of Total FY09 PFS Revenues Wealth Management Private Client 2% Wealth Advisory Foundations & Institutions Positioned Strategically Innovation Clients Geography People Specialized teams Scale institutional products and services Leverage sophisticated C&IS client portal capabilities Leverage office footprint Cross-marketing opportunities through board affiliations Growth Initiatives AUM as of March 31, 2010 |
A Coordinated Approach Northern Trust offices serve as portals for broader opportunities. University Foundation $1.2 BN AUC C&IS President, University Foundation Trustee, Family Foundation Family Foundation $30 MM AUM PFS Senior Executive, National Distribution Firm Trustee, Family Foundation Trustee, Small College Foundation Small College Foundation $50 MM PFS Prospect National Distribution Firm $61.4 MM AUM $10.0 MM Credit $1.8 BN C&IS DB/DC Prospect PERSONAL FINANCIAL SERVICES |
Key Takeaways Trusted provider of investment-driven fiduciary and private banking services Excellent positioning to acquire, expand and retain client relationships Extraordinary and growing client base Talented Northern Trust partners focused on client service excellence, relationship retention and new client acquisition Long-standing heritage of client service and conservative business practices Clients Resources Culture Brand Office Network Technology Financial Strength People Capabilities PERSONAL FINANCIAL SERVICES |
Corporate & Institutional Services Steve Fradkin President, C&IS © 2010 Northern Trust Corporation May 26, 2010 Addressing Today's Challenges. Positioned for Tomorrow's Growth. |
36 CORPORATE & INSTITUTIONAL SERVICES Strategic and Competitive Positioning Client Focus Creates Growth Opportunities Globalization Managing Risk Information Delivery Cost Reduction Client Case Study and Key Takeaways Agenda: Addressing Today’s Challenges. Positioned for Tomorrow’s Growth. |
Europe, Middle East, and Africa The Americas Asia Pacific Global Presence Strategic and Competitive Positioning: Growth Opportunities Continue to Be Significant C&IS provides a comprehensive array of asset servicing, administration, investment management and banking services to institutional investors of many types, all around the globe. Multi-strategy Asset Managers Hedge Funds Private Equity Funds Property Funds Sovereign Wealth Funds Central Banks Multinational, State, and Local Government Entities Insurance Companies Corporate Pensions Corporations Foundations Endowments Financial Institutions Clients Asset Servicing Administration Investment Management Banking Services Services 2000 – 1Q 10 CAGR A Distinctive Record of Global Growth Northern Trust Global Custody Assets EAFE S&P 500 CORPORATE & INSTITUTIONAL SERVICES -1% -3% 19% |
Client Focus Creates Growth Opportunities CORPORATE & INSTITUTIONAL SERVICES |
39 CORPORATE & INSTITUTIONAL SERVICES Globalization: Helping Clients Invest Globally and Manage Global Organizations Investing globally Managing increasingly global organizations Client Challenge Our clients face significant challenges managing global portfolios and organizations. Global custody Headquarters reporting Cross-border pooling Multi-country fund administration 24/7 global operating model Northern Trust Solutions Global custody asset growth: 2000 – 1Q10 CAGR of 19% More than 50 product innovation press releases since 2008 Cross-border pooling market leader Strong pipeline of international opportunities Results |
40 CORPORATE & INSTITUTIONAL SERVICES Managing Risk: Helping Clients Manage Risk The challenging environment is placing pressure on institutions to consider relationship exposure and other risk attributes associated with their investment programs. Identifying strong, secure, and reliable financial providers Risk analysis and transparency Client Challenge Fiduciary heritage and conservative financial policies provide reliability and security Risk management tools provide portfolio return attribution, valuation, and transparency into hedge funds, private equity, and derivatives Northern Trust Solutions Flight to quality 96% of top clients use investment risk and analytic services New revenues from hedge fund, private equity, and derivatives capabilities Results |
41 CORPORATE & INSTITUTIONAL SERVICES Information Delivery: More Information, More Granularity, More Constituents Investors demand more information and they face more information demands themselves. Multiple constituents demand increasingly customized data (Boards, committees, management, regulators, etc.) 24/7 access to customized information Client Challenge Integrated global technology architecture Industry expertise to transform data into information (SORP, UCITS, AIFM, FAS157, IFRS 7, GASB, etc.) Transitioning to iPhone ® , BlackBerry ® , and other mobile devices Northern Trust Solutions Expanding usage of Passport ® suite of information products Integrated solutions displacing client 3 party vendors Deepening relationship connectivity and relevance as the information provider of choice Results rd |
42 CORPORATE & INSTITUTIONAL SERVICES Cost Reduction: Economy Increases Pressure on Clients to Reduce Costs Market environment forces clients to continually seek new ways to reduce costs. Excellent growth of Investment Operations Outsourcing business NTGI’s Investment Program Solutions enables 60 of our clients to outsource investment management Relationship pricing deepens client interactions and diversifies revenue streams Results Environment encouraging cost reduction and outsourcing Asset managers migrating to variable cost expense model to de-risk cost volatility and support longer-term growth Client Challenge Global operating model provides comprehensive and cost-efficient platform for operations outsourcing NTGI Investment Program Solutions Cross-border pooling improves performance for multinational and investment manager clients Relationship vs. product pricing enhances client economics Northern Trust Solutions SM SM |
43 CORPORATE & INSTITUTIONAL SERVICES Client Testimonial Traditional pension plan evolving into a global asset manager Values Northern Trust solutions: Integrated global operating platform Risk management Robust Passport ® technology Reduce costs, grow revenue Strategic partnership to innovate and grow together |
44 CORPORATE & INSTITUTIONAL SERVICES Key Takeaways C&IS is an attractive business and Northern Trust has a uniquely client-centric competitive advantage Helping clients solve their problems – globalization, risk management, information management, cost reduction, or otherwise – has been our primary focus and driver of our success Net new business results in 1Q2010 were excellent and our prospect pipeline is strong We will continue to focus on clients and the things we can control: operational excellence and our principles of Service, Expertise and Integrity Key Growth Initiatives: People Acquisitions Geography Innovation Clients |
Northern Trust Global Investments Steve Potter President, NTGI Bob Browne EVP, Chief Investment Officer Addressing Today's Challenges. Positioned for Tomorrow's Growth. © 2010 Northern Trust Corporation May 26, 2010 |
46 NORTHERN TRUST GLOBAL INVESTMENTS Agenda: Addressing Today’s Challenges. Positioned for Tomorrow’s Growth. Strategic and Competitive Positioning Client Focus and Growth Initiatives Institutional Clients Personal Clients |
47 NORTHERN TRUST GLOBAL INVESTMENTS Providing Customized Investment Solutions 13th Largest Asset Manager Worldwide – Pensions & Investments (May 2009; based on Dec. 31, 2008 AUM) Investment Management Firm of the Year – ACQ Finance Magazine (August 2009) Best Money Market Fund – North America – Treasury Management International (December 2009) 10th Largest Manager of Worldwide Institutional Assets Products Equities Fixed Income Alternatives Services Manager of Managers Global Index Management Active Focused on global index management, short and long duration fixed income, and access to active management via manager of manager and proprietary strategies. Securities Lending Transition Management Commission Recapture Securities Brokerage Cash Overlay |
48 NORTHERN TRUST GLOBAL INVESTMENTS Strong Growth Achieved Across Cycles Assets Under Management $BN Strategic initiatives will continue to fuel growth by effectively providing customized investment solutions to target clients. Key Growth Initiatives: People Acquisitions Geography Innovation Clients |
Client Focus & Key Growth Initiatives NORTHERN TRUST GLOBAL INVESTMENTS Bob Browne EVP, Chief Investment Officer |
50 NORTHERN TRUST GLOBAL INVESTMENTS Northern Trust is in a unique position to provide holistic advice to clients given our multi-faceted role as custodian, transition manager, liquidity manager, beta provider, alpha identifier and program manager. Serving Both Institutional and Personal Clients As of March 31, 2010 Total Assets Under Management: $647 BN Institutional Clients Personal Clients $149 $498 |
51 NORTHERN TRUST GLOBAL INVESTMENTS $36 $462 Beta / Fixed Income Proprietary capabilities Risk-efficient, cost-effective market exposure Significant scale in global index management, cash and fixed income High barriers to entry Alpha Open-architecture and proprietary capabilities Consistent, reliable source of alpha Significant presence as a leading manager of managers firm Asset Management for Institutional Clients Total Institutional Assets Under Management: $498 BN As of March 31, 2010 The separation of alpha and beta underpins our investment approach for institutional clients. |
52 NORTHERN TRUST GLOBAL INVESTMENTS $64 $121 $75 $198 People Geography Beta / Fixed Income Institutional Assets Under Management: $462 BN Beta / Fixed Income Strategies for Institutional Clients Equity Index Short & Long Duration Fixed Income Fixed Income Index Intelligent indexing and conservative fixed income strategies drive our beta strategies. $4 Other Securities Lending Collateral As of March 31, 2010 Clients Transition management Target date solutions in DC channel Frontier market capabilities Investment Program Solutions SM Flexible fund structures Targeting largest global asset pools Expand investment teams with product experts & sales specialists International hiring Growth Initiatives Innovation |
53 NORTHERN TRUST GLOBAL INVESTMENTS Alpha Strategies for Institutional Clients Alpha Institutional Assets Under Management: $36 BN Quant Active Manager of Managers Fundamental Active Equity $10 $24 $1 $1 Hedge and Private Equity Fund of Funds Managing the total risk solution, we provide access to alpha producers and offer proprietary alpha strategies. As of March 31, 2010 Clients Alternatives through fund of funds Sourcing alpha from proprietary & external sources Innovation Targeted investment solutions combine alpha & beta returns Transparency & risk management built into products Acquisitions Geography Capabilities Growth Initiatives |
54 NORTHERN TRUST GLOBAL INVESTMENTS Asset Management for Personal Clients As of March 31, 2010 The preeminent investment manager for high net worth individuals and families. Equity Active Index Manager of Managers Other Hedge Fund of Funds Private Equity Fund of Funds Real Estate Commodities Short Duration Fixed Income Active Index Manager of Managers $36 Total Personal Assets Under Management: $149 BN $11 $53 $49 |
55 NORTHERN TRUST GLOBAL INVESTMENTS Tactical Asset Allocation for Personal Clients: Downside Protection, Upside Participation Source: NTGI Investment Policy Committee, Bloomberg. Left axis represents % allocation to “risk assets” as defined in right legend. |
56 NORTHERN TRUST GLOBAL INVESTMENTS Asset Management for Personal Clients Total Personal Assets Under Management: $149 BN The preeminent investment manager for high net worth individuals and families. As of March 31, 2010 Equity Active Index Manager of Managers Other Hedge Fund of Funds Private Equity Fund of Funds Real Estate Commodities Short Duration Fixed Income Active Index Manager of Managers $36 $11 $53 $49 Growth Initiatives Continue to increase share of wallet: Communication in challenging markets Reinforcing trusted advisor role Expand consulting on alternatives Increasing our outcome oriented solutions set Clients Innovation People Dedicated investment specialists Strong visible investment leadership |
57 NORTHERN TRUST GLOBAL INVESTMENTS Key Takeaways Naturally involved in multiple asset management activities Focus on global index management, short and long duration fixed income, manager of managers, and investment management for high net worth individuals and families Scale exists in many areas – global index management and cash management, in particular – where barriers to entry are meaningful Brand identity as a conservative, trusted provider aligns nicely with core strengths: Low cost, transparent and reliable index management Principal preservation in short and long duration fixed income Access to alpha via structured manager of managers program Asset allocation and program management strategies combine beta and alpha building blocks into customized investment solutions |
2010 INVESTOR DAY: Q&A Rick Waddell Chairman and Chief Executive Officer Addressing Today's Challenges. Positioned for Tomorrow's Growth. © 2010 Northern Trust Corporation May 26, 2010 |
2010 INVESTOR DAY: Thank You Rick Waddell Chairman and Chief Executive Officer Addressing Today's Challenges. Positioned for Tomorrow's Growth. © 2010 Northern Trust Corporation May 26, 2010 |