Northern Trust
Encyclopedia
Northern Trust Corporation is an international financial services company headquartered in Chicago
, Illinois
, USA. It provides investment management, asset and fund administration, fiduciary and banking services through a network of 85 offices in 18 U.S. states and 12 international offices in North America
, Europe
and the Asia-Pacific
region. As of September 30, 2011, Northern Trust Corporation had $97 billion in banking assets, $4.2 trillion in assets under custody and $644.2 billion in assets under management
. In March 2010, Forbes Magazine ranked Northern Trust as the world's most admired company in the "Superregional Banks" category.The Fortune Magazine named Northern Trust one of the "World's Most Admired Companies".
in Chicago's Loop, with a focus on providing trust and banking services for the city's prosperous citizens. Smith provided 40% of the bank's original capitalization of $1 million, and counted such businessmen and civic leaders as Marshall Field
, Martin A. Ryerson, and Philip D. Armour among the original 27 shareholders. Intimately acquainted with the operations of the bank, these men would personally examine Northern's assets and records at each year's end.
In October 1929, however, the flamboyant decade of the 1920s came to a sudden halt—the stock market crash led to a spectacular drop in prices, employment and production. As these troubles swept across the country, one bank after another closed. Two days after his inauguration on March 6, 1933, Franklin D. Roosevelt closed all the banks in the United States. When they reopened a short time later, there was a great deal of uncertainty as to what might occur. Fortunately, the people in line outside the Northern bank offices were there to deposit money instead of withdraw it. Northern's conservative policies had served it well during the 1920s.
By 1941 nearly half of all the bank's commercial accounts were drawn from outside the Chicago metropolitan area. During World War II, Northern once again took part in the government's war bond
drives, and also provided loans for manufacturing war materials under special government programs. The war created more opportunities for the bank; all sectors of its business expanded, and by 1945 the Northern Trust had doubled in size.
The years after World War II brought even greater prosperity to the bank as it continued to expand its services. Still under the direction of Solomon Smith, management at the bank became more aware of electronic data processing and how this new technology could revolutionize the banking industry. During the 1950s, Northern was at the forefront of developing numerous automated banking services, including the first fully automated financial statements for trust clients.
When Solomon Smith died in 1963 and his son, Edward Byron Smith, assumed leadership of the bank, assets totaled more than $1 billion. Near the end of the decade, Northern became the first state-chartered bank from Illinois to open an office outside the United States.
Throughout the 1970s and 80s, Northern Trust acquired companies and expanded into Florida, Arizona, California and Texas.
When oil prices dropped suddenly in the early 1980s, many South American nations realized they could not pay off their enormous bank loans. Northern suffered uncharacteristically high losses. Aggressive management, loan reserves, and write-off enabled the bank to restore its asset quality.
When Edward Byron Smith retired in 1979, he was succeeded by E. Norman Staub, followed a few years later by Philip W. K. Sweet, and then by Weston Christopherson. When company veteran David W. Fox took over, he was only the seventh chief executive in the bank's existence. William A. Osborn
was named president and chief operating officer in 1993 and became chairman and chief executive officer, in addition to president, in 1995. He stepped down as president in 2006 and as CEO on January 1, 2008. Frederick H. "Rick" Waddell then became president and CEO.
Northern Trust counts over 20% of the U.S.'s wealthiest families as its clients. It is also one of the largest global custodians in the world, serving the asset servicing needs of corporate and public retirement, foundations, endowment, fund managers, insurance companies and government funds.http://stocks.us.reuters.com/stocks/fullDescription.asp?symbol=NTRS.O&WTmodLOC=C5-Profile-1
s, fund managers, insurance companies, and government funds. C&IS also offers a commercial banking services, with emphasis on developing and supporting institutional relationships in large and mid-sized corporations, and financial institution
s. Client relationships are managed principally through the Chicago, London
, Singapore
, and Toronto
branch locations, with other operations or representative offices in New Jersey
, Ireland
, the Channel Islands
, the Netherlands, China
, and Australia
. Asset servicing relationships managed by C&IS often include investment management
, securities lending
, transition management, and commission recapture services provided through Northern Trust Global Investments (NTGI). C&IS also provides related foreign exchange services in the U.S., U.K., Guernsey, and Singapore.
PFS services are delivered through a network of 85 offices in 18 U.S. states as well as offices in London and Guernsey
.
and hedge funds of funds) and multimanager products and services. NTGI’s activities also include brokerage, securities lending, transition management, and related services. NTGI’s business operates internationally through subsidiaries, alliances, and distribution arrangements.
event that since its inception has generated more than $50 million for philanthropic causes in Southern California.
Chicago
Chicago is the largest city in the US state of Illinois. With nearly 2.7 million residents, it is the most populous city in the Midwestern United States and the third most populous in the US, after New York City and Los Angeles...
, Illinois
Illinois
Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,...
, USA. It provides investment management, asset and fund administration, fiduciary and banking services through a network of 85 offices in 18 U.S. states and 12 international offices in North America
North America
North America is a continent wholly within the Northern Hemisphere and almost wholly within the Western Hemisphere. It is also considered a northern subcontinent of the Americas...
, Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
and the Asia-Pacific
Asia-Pacific
Asia-Pacific or Asia Pacific is the part of the world in or near the Western Pacific Ocean...
region. As of September 30, 2011, Northern Trust Corporation had $97 billion in banking assets, $4.2 trillion in assets under custody and $644.2 billion in assets under management
Assets under management
Assets under management is a financial term used denote the market value of funds being managed by a financial instutition on behalf of its clients, investors, depositors, etc. This metric is a sign of size and success against competition...
. In March 2010, Forbes Magazine ranked Northern Trust as the world's most admired company in the "Superregional Banks" category.The Fortune Magazine named Northern Trust one of the "World's Most Admired Companies".
History
Northern Trust was founded in 1889 by Byron Laflin Smith in a one-room office in the Rookery BuildingRookery Building
The Rookery Building is a historic landmark located in the Loop community area of Chicago in Cook County, Illinois, United States. Completed by John Wellborn Root and Daniel Burnham of Burnham and Root in 1888, it is considered one of their masterpiece buildings. It once housed the office of the...
in Chicago's Loop, with a focus on providing trust and banking services for the city's prosperous citizens. Smith provided 40% of the bank's original capitalization of $1 million, and counted such businessmen and civic leaders as Marshall Field
Marshall Field
Marshall Field was founder of Marshall Field and Company, the Chicago-based department stores.-Life and career:...
, Martin A. Ryerson, and Philip D. Armour among the original 27 shareholders. Intimately acquainted with the operations of the bank, these men would personally examine Northern's assets and records at each year's end.
In October 1929, however, the flamboyant decade of the 1920s came to a sudden halt—the stock market crash led to a spectacular drop in prices, employment and production. As these troubles swept across the country, one bank after another closed. Two days after his inauguration on March 6, 1933, Franklin D. Roosevelt closed all the banks in the United States. When they reopened a short time later, there was a great deal of uncertainty as to what might occur. Fortunately, the people in line outside the Northern bank offices were there to deposit money instead of withdraw it. Northern's conservative policies had served it well during the 1920s.
By 1941 nearly half of all the bank's commercial accounts were drawn from outside the Chicago metropolitan area. During World War II, Northern once again took part in the government's war bond
War bond
War bonds are debt securities issued by a government for the purpose of financing military operations during times of war. War bonds generate capital for the government and make civilians feel involved in their national militaries...
drives, and also provided loans for manufacturing war materials under special government programs. The war created more opportunities for the bank; all sectors of its business expanded, and by 1945 the Northern Trust had doubled in size.
The years after World War II brought even greater prosperity to the bank as it continued to expand its services. Still under the direction of Solomon Smith, management at the bank became more aware of electronic data processing and how this new technology could revolutionize the banking industry. During the 1950s, Northern was at the forefront of developing numerous automated banking services, including the first fully automated financial statements for trust clients.
When Solomon Smith died in 1963 and his son, Edward Byron Smith, assumed leadership of the bank, assets totaled more than $1 billion. Near the end of the decade, Northern became the first state-chartered bank from Illinois to open an office outside the United States.
Throughout the 1970s and 80s, Northern Trust acquired companies and expanded into Florida, Arizona, California and Texas.
When oil prices dropped suddenly in the early 1980s, many South American nations realized they could not pay off their enormous bank loans. Northern suffered uncharacteristically high losses. Aggressive management, loan reserves, and write-off enabled the bank to restore its asset quality.
When Edward Byron Smith retired in 1979, he was succeeded by E. Norman Staub, followed a few years later by Philip W. K. Sweet, and then by Weston Christopherson. When company veteran David W. Fox took over, he was only the seventh chief executive in the bank's existence. William A. Osborn
William A. Osborn
William A. Osborn is an American bank executive.William A. Osborn graduated from Northwestern University as an undergraduate in 1969, and from the NU Graduate School of Management in 1973....
was named president and chief operating officer in 1993 and became chairman and chief executive officer, in addition to president, in 1995. He stepped down as president in 2006 and as CEO on January 1, 2008. Frederick H. "Rick" Waddell then became president and CEO.
Northern Trust counts over 20% of the U.S.'s wealthiest families as its clients. It is also one of the largest global custodians in the world, serving the asset servicing needs of corporate and public retirement, foundations, endowment, fund managers, insurance companies and government funds.http://stocks.us.reuters.com/stocks/fullDescription.asp?symbol=NTRS.O&WTmodLOC=C5-Profile-1
Corporate and Institutional Services (C&IS)
C&IS is a global provider of asset servicing, asset management, and related services to corporate and public retirement funds, foundations, endowmentFinancial endowment
A financial endowment is a transfer of money or property donated to an institution. The total value of an institution's investments is often referred to as the institution's endowment and is typically organized as a public charity, private foundation, or trust....
s, fund managers, insurance companies, and government funds. C&IS also offers a commercial banking services, with emphasis on developing and supporting institutional relationships in large and mid-sized corporations, and financial institution
Financial institution
In financial economics, a financial institution is an institution that provides financial services for its clients or members. Probably the most important financial service provided by financial institutions is acting as financial intermediaries...
s. Client relationships are managed principally through the Chicago, London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
, Singapore
Singapore
Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...
, and Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...
branch locations, with other operations or representative offices in New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
, Ireland
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
, the Channel Islands
Channel Islands
The Channel Islands are an archipelago of British Crown Dependencies in the English Channel, off the French coast of Normandy. They include two separate bailiwicks: the Bailiwick of Guernsey and the Bailiwick of Jersey...
, the Netherlands, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
, and Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
. Asset servicing relationships managed by C&IS often include investment management
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
, securities lending
Securities lending
In finance, securities lending or stock lending refers to the lending of securities by one party to another. The terms of the loan will be governed by a "Securities Lending Agreement", which requires that the borrower provides the lender with collateral, in the form of cash, government securities,...
, transition management, and commission recapture services provided through Northern Trust Global Investments (NTGI). C&IS also provides related foreign exchange services in the U.S., U.K., Guernsey, and Singapore.
Personal Financial Services (PFS)
PFS provides personal trust, investment management, custody, and philanthropic services; financial consulting; guardianship and estate administration; qualified retirement plans; and private and business banking. PFS focuses on high net worth individuals and families, business owners, executives, professionals, retirees, and established privately held businesses in its target markets. PFS also includes the Wealth Management Group, which provides customized products and services to meet the financial needs of individuals and family offices in the United States and throughout the world with assets typically exceeding $75 million.PFS services are delivered through a network of 85 offices in 18 U.S. states as well as offices in London and Guernsey
Guernsey
Guernsey, officially the Bailiwick of Guernsey is a British Crown dependency in the English Channel off the coast of Normandy.The Bailiwick, as a governing entity, embraces not only all 10 parishes on the Island of Guernsey, but also the islands of Herm, Jethou, Burhou, and Lihou and their islet...
.
Northern Trust Global Investments (NTGI)
NTGI, through various subsidiaries of the Corporation, provides a broad range of investment management and related services and other products to U.S. and non-U.S. clients of C&IS and PFS. Clients include institutional and individual separately managed accounts, bank common and collective funds, registered investment companies, non-U.S. collective investment funds and unregistered private investment funds. NTGI offers both active and passive equity and fixed income portfolio management, as well as alternative asset classes (such as private equityPrivate equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
and hedge funds of funds) and multimanager products and services. NTGI’s activities also include brokerage, securities lending, transition management, and related services. NTGI’s business operates internationally through subsidiaries, alliances, and distribution arrangements.
Businesses and other subsidiaries
The Corporation's principal subsidiary is The Northern Trust Company. The Corporation also owns two investment management subsidiaries, Northern Trust Investments, N.A. and Northern Trust Global Advisors, Inc.Locations
Northern Trust’s global locations include: Abu Dhabi, Amsterdam, Bangalore, Beijing, Dublin, Guernsey, Hong Kong, Isle of Man, Jersey, Limerick, London, Melbourne, Singapore, Stockholm, India, Tokyo and Toronto. Within the United States, locations include Illinois, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Massachusetts, Michigan, Minnesota, Missouri, Nevada, New York, Ohio, Texas, Washington and Wisconsin.Sponsorships
Northern Trust is the sponsor of the Northern Trust Open, a PGA TourPGA Tour
The PGA Tour is the organizer of the main men's professional golf tours in the United States and North America...
event that since its inception has generated more than $50 million for philanthropic causes in Southern California.
Northern Trust Open - At a Glance
When: February 16–19, 2012
Where: Riviera Country Club, Pacific Palisades, California
Contact: (800) 752-OPEN (6736)
Purse: $6,600,000
Winning Share: $1,170,000 (2012)
Yards: 7,298
2008 Champion: Phil Mickelson
2009 Champion: Phil Mickelson
2010 Champion: Steve Stricker
2011 Champion: Aaron Baddeley
Broadcast: The Golf Channel, CBS and the PGA TOUR Network on Sirius XM 209