ntrs_investor_day_ntgi

Northern Trust
Service Expertise Integrity
Global Investments

Stephen N. Potter
President, NTGI

Principles That Endure
INVESTOR DAY 2008
© 2008 Northern Trust Corporation

Key Strategic Priorities

Northern Trust Global Investments

Aligned and focused on serving
personal and institutional clients
Leveraging strengths in quantitative,
manager of managers and fixed
income investments
Building the business through
global growth
Delivering investment excellence

2

Strong Growth in Assets Under Management

Demonstrated ability to grow assets under management
across target client segments.

CAGR
$ BN
Institutional 20% Total
$778.6
$757.2
$800
Personal $697.2
$700
$617.9
$571.9
$600
$478.6
$500
$632.6
$608.9 23% Institutional
$562.5
$400
$500.7
$302.5 $461.5
$374.3
$300

$214.8
$200

$100 $148.3 $146.0
$134.7
$117.2
$110.4
$104.3 10% Personal
$87.7
$0
2002 2003 2004 2005 2006 2007 3/31/2008

Note: Acquired $75 BN in index assets from Deutsche Bank in 2003; Excluding this $75 BN in assets, the
proforma total AUM CAGR is 17% and the proforma Institutional AUM CAGR is 20%

3

A World Class Investment Manager

Assets Under Management: $778.6 Billion
(As of March 31, 2008)

Diversified Across…

…Asset Classes …Client Segments …Investment Styles

Active
Short $274 Billion Personal
Personal $457 Billion
Equities
(36%)
Duration $146 Billion
$283 Billion
$387Short
Billion
Quantitative
Duration Institutional
$281 Billion
$633 Billion

Manager
Fixed Income
Other of Managers
$98 Billion
$11 Billion $41 Billion

4

Well Positioned to Serve Target Client Segments

Northern Trust’s strong position in the personal and institutional markets
provides the opportunity to build and deliver investment solutions for
clients in both target markets.

Client Intimacy

Institutional Clients
Single Strategies
Personal Clients
$633 BN
$146 BN Bundled Solutions

5

Offering a Broad Array of Solutions to Target Clients

With a strong presence in asset classes across the investment spectrum,
Northern Trust offers clients investment capabilities that meet their
objectives.

Fixed
Income
Active Equity Quantitative
Cash & Short Manager of
Duration Managers
Client Intimacy

Single Strategies
Personal Clients
$633 BN

6

Proprietary and Open Architecture Offerings

Northern Trust delivers products, both in-house and through open
architecture, providing access to best in class capabilities.

Fixed
Income
Active Equity Quantitative
Cash & Short Manager of
Duration Managers
Client Intimacy

Single Strategies
Personal Clients
$633 BN

Open Architecture

7

A Full Array of Proprietary and External Investment Solutions

Northern Trust is the only asset
Proprietary Proprietary Manager of
management firm that operates –
Active Quantitative Manager
Strategies Strategies Strategies
with scale – across active, passive
Equities
and manager of manager disciplines.
Large-Cap
Mid-Cap
Small-Cap
International
Tax Advantaged

Fixed Income
Core
International
Municipals
Cash
Enhanced Cash
High Yield

Alternatives
Private Equity
Hedge Funds
Emerging Markets
Emerging / Minority

Investment Services
Securities Lending Securities Brokerage
Transition Management Investment Plan Outsourcing
Commission Recapture

8

Building Future Growth
Personal Market Distribution
Growth will be led by client specific solutions harnessing
both proprietary and open architecture capabilities.

1Q 2008 Growth Initiatives
Personal Market
Support the PFS platform
Distribution
Best in class investments through open
architecture
2002 – 1Q08
Personal Increase access to alternative capabilities
Market
Continue to build a wide array of
$146.0 Distribution
proprietary beta and alpha generating
Billion CAGR: capabilities
10.2%
Leverage the quantitative platform
Tax advantaged investments
Exchange traded funds
Structured capabilities
Total Assets Provide strong consulting and
Under Management: advisory services
$778.6 Billion (3/31/08)

9

Building Future Growth
Institutional Market Distribution
Alignment with C&IS in the institutional market provides clients with
access to leading asset servicing and asset management capabilities.

Growth Initiatives
1Q 2008
Strong market segment and geographic
Institutional Market alignment with C&IS
Distribution
Building on our strong base of cash and
short duration capabilities
2002 – 1Q08
Expanding our quantitative investment
Institutional
distribution
Market
Providing expertise in transition
$632.6 Distribution
management
CAGR:
Billion
22.8% Investment Program Solutions
Expanding distribution in the upper middle
market segment
Incorporating liability driven investment
capabilities
Total Assets Building on multi-national pooling
Under Management:
Leverage our global footprint to
$778.6 Billion (3/31/08)
accelerate growth outside the U.S.

10

Positioned for Global Growth
Extensive presence through our worldwide Northern Trust Offices
client base and distribution relationships. Institutional Distribution Agreements

United States New York Canada Ireland United Nordics Netherlands China Japan Taiwan Hong Singapore
(85 PFS Offices) Scotia Pensco Kingdom Nordea RBS/ Kong
McLeod Mitsubishi/
United States Resona
Investment Only Trust
(10 Distributors)

France
Groupama

Thailand
Abu Melbourne
Bangkok
Dhabi
Bank

11

Delivering Performance In Line with Client Objectives

Index – Equity Index – Fixed Income
Three Year
Three Year
Product AUM Relative Return
U.S. $39 BN +12 basis points
U.S Equity $138 BN +4 basis points
Non-U.S. $13 BN -2 basis points
Non-U.S. Equity $45 BN +2 basis points
Tax Advantaged $11 BN +14 basis points

Active – Fixed Income
Three Year
Active – Equity Product AUM Relative Return
Three Year
Municipal $10 BN +12 basis points
High Yield $2 BN +7 basis points
Value $4 BN -177 basis points
Core $1 BN -49 basis points
Intl. Equity $3 BN +131 basis points
Manager of
Manager $3 BN +217 basis points*
Active – Cash
Three Year
*Less than 3 year track record in some cases
Cash Mgt. $124 BN +3 basis points
Enhanced Cash $22 BN +31 basis points

Performance data as of 12/31/07
12

Northern Trust Global Investments
Summary and Q&A Attractive
Client Markets

Client- Focused
Brand Capabilities
Centric

Key Strategies and Opportunities
for Long-term Growth Excellence
in Execution

Aligned and focused on serving personal
and institutional clients

Leveraging strengths in quantitative, manager
of managers and fixed income investments

Building the business through
global growth

Delivering investment excellence

13

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