Latest news with #NorthernTrust
Yahoo
15 hours ago
- Business
- Yahoo
Northern Trust Universe Data: Equity Markets Drive Strong Second Quarter Results for Institutional Investors
CHICAGO, July 30, 2025--(BUSINESS WIRE)--Market volatility, shifting economic policy and resurgent investor confidence defined the second quarter of 2025, delivering the best quarterly results for U.S. equities in five years and supporting institutional investment plan performance. The Northern Trust All Funds Over $100 Million plan universe had a median return of 4.9% for the quarter. The Northern Trust Universe tracks the performance of 370 large U.S. institutional investment plans, with a combined asset value of more than $1.4 trillion, which subscribe to performance measurement services as part of Northern Trust's asset servicing offerings. Investment performance was broadly positive but varied across institutional segments, with the Northern Trust Corporate (ERISA) universe returning 3.2% at the median for the quarter while the Northern Trust Public Funds universe median return was 4.9% and Northern Trust Foundation and Endowment (F&E) universe produced a 5.1% median return. U.S. equity performance was notably volatile in the second quarter, falling 12% during the first eight days of April, only to stage a remarkable 20% rebound, propelling major indices to record highs by quarter's end. Investor excitement around the rapid advancement of artificial intelligence (AI) proved a key driver of performance, contributing to the strongest quarterly equity returns since the post-pandemic surge in Q2 2020, when the S&P 500 returned over 20%. John Turney, Global Head of Total Portfolio Solutions, Northern Trust Asset Servicing, said: "This quarter's results showcase the resilience of diversified portfolios and the steadfast confidence of institutional investors, even amid shifting economic headwinds. As innovation and adaptability continue to shape global markets, our clients are well-positioned to seize emerging opportunities while managing risk." U.S. fixed income produced positive returns as well, with the Northern Trust U.S. Fixed Income program universe median return at 1.3% for the quarter. Inflation remained contained, and the U.S. Federal Reserve opted to hold rates steady for the quarter. Yields on short-term bonds declined as the market priced in a delay to anticipated rate cuts. The European Central Bank lowered interest rates by 25 basis points in June, aiding strong returns overseas. The ERISA plan one, three, and five-year median returns were 7.8%, 5.4%, and 3.7%, respectively. In the Northern Trust ERISA plan universe, the median allocation to U.S. Fixed Income was 54.1%, as plans look to invest in bonds to match their investments with future benefit payment obligations. This large fixed-income allocation usually leads to less volatile returns compared to other plan sponsor types. The Public Funds universe median returns for the one, three, and five-year periods stand at 10.1%, 8.2% and 8.8%, respectively. These funds often invest a substantial portion of their assets in both public and private equity, which tends to introduce higher volatility compared to ERISA plans. Notably, the median allocation to Domestic Equity is 26.9% and 12% for International Equity. In the Foundations & Endowments universe, median one, three, and five-year returns were 10.2%, 9.8% and 10%, respectively. Foundations and Endowments frequently utilize limited partnerships (LPs) for their investments in private equity, private credit, infrastructure, and real estate. Due to the delayed reporting of valuations by LPs, these plans tend to underperform in the short term during strong market conditions, as the investment managers' lagging valuations impact the plans' returns. Results as of June 30, 2025: 2nd Qtr 1Yr 3Yr 5Yr ERISA 3.2% 7.5% 5.4% 3.7% Public Funds 4.9% 10.1% 8.2% 8.8% Foundations & Endowments 5.1% 10.2% 9.8% 10.0% About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2025, Northern Trust had assets under custody/administration of US$18.1 trillion, and assets under management of US$1.7 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn. Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at View source version on Contacts Media Contacts Europe, Middle East, Africa & Asia-Pacific: Camilla Greene+44 (0) 20 7982 2176Camilla_Greene@ Simon Ansell+ 44 (0) 20 7982 1016sa777@ US & Canada: John O'Connell+1 312 444 2388John_O'Connell@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
15 hours ago
- Business
- Business Wire
Northern Trust Universe Data: Equity Markets Drive Strong Second Quarter Results for Institutional Investors
CHICAGO--(BUSINESS WIRE)--Market volatility, shifting economic policy and resurgent investor confidence defined the second quarter of 2025, delivering the best quarterly results for U.S. equities in five years and supporting institutional investment plan performance. The Northern Trust All Funds Over $100 Million plan universe had a median return of 4.9% for the quarter. The Northern Trust Universe tracks the performance of 370 large U.S. institutional investment plans, with a combined asset value of more than $1.4 trillion, which subscribe to performance measurement services as part of Northern Trust's asset servicing offerings. Investment performance was broadly positive but varied across institutional segments, with the Northern Trust Corporate (ERISA) universe returning 3.2% at the median for the quarter while the Northern Trust Public Funds universe median return was 4.9% and Northern Trust Foundation and Endowment (F&E) universe produced a 5.1% median return. U.S. equity performance was notably volatile in the second quarter, falling 12% during the first eight days of April, only to stage a remarkable 20% rebound, propelling major indices to record highs by quarter's end. Investor excitement around the rapid advancement of artificial intelligence (AI) proved a key driver of performance, contributing to the strongest quarterly equity returns since the post-pandemic surge in Q2 2020, when the S&P 500 returned over 20%. John Turney, Global Head of Total Portfolio Solutions, Northern Trust Asset Servicing, said: 'This quarter's results showcase the resilience of diversified portfolios and the steadfast confidence of institutional investors, even amid shifting economic headwinds. As innovation and adaptability continue to shape global markets, our clients are well-positioned to seize emerging opportunities while managing risk.' U.S. fixed income produced positive returns as well, with the Northern Trust U.S. Fixed Income program universe median return at 1.3% for the quarter. Inflation remained contained, and the U.S. Federal Reserve opted to hold rates steady for the quarter. Yields on short-term bonds declined as the market priced in a delay to anticipated rate cuts. The European Central Bank lowered interest rates by 25 basis points in June, aiding strong returns overseas. The ERISA plan one, three, and five-year median returns were 7.8%, 5.4%, and 3.7%, respectively. In the Northern Trust ERISA plan universe, the median allocation to U.S. Fixed Income was 54.1%, as plans look to invest in bonds to match their investments with future benefit payment obligations. This large fixed-income allocation usually leads to less volatile returns compared to other plan sponsor types. The Public Funds universe median returns for the one, three, and five-year periods stand at 10.1%, 8.2% and 8.8%, respectively. These funds often invest a substantial portion of their assets in both public and private equity, which tends to introduce higher volatility compared to ERISA plans. Notably, the median allocation to Domestic Equity is 26.9% and 12% for International Equity. In the Foundations & Endowments universe, median one, three, and five-year returns were 10.2%, 9.8% and 10%, respectively. Foundations and Endowments frequently utilize limited partnerships (LPs) for their investments in private equity, private credit, infrastructure, and real estate. Due to the delayed reporting of valuations by LPs, these plans tend to underperform in the short term during strong market conditions, as the investment managers' lagging valuations impact the plans' returns. About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2025, Northern Trust had assets under custody/administration of US$18.1 trillion, and assets under management of US$1.7 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn. Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at
Globe and Mail
15 hours ago
- Business
- Globe and Mail
Northern Trust Universe Data: Equity Markets Drive Strong Second Quarter Results for Institutional Investors
Market volatility, shifting economic policy and resurgent investor confidence defined the second quarter of 2025, delivering the best quarterly results for U.S. equities in five years and supporting institutional investment plan performance. The Northern Trust All Funds Over $100 Million plan universe had a median return of 4.9% for the quarter. The Northern Trust Universe tracks the performance of 370 large U.S. institutional investment plans, with a combined asset value of more than $1.4 trillion, which subscribe to performance measurement services as part of Northern Trust's asset servicing offerings. Investment performance was broadly positive but varied across institutional segments, with the Northern Trust Corporate (ERISA) universe returning 3.2% at the median for the quarter while the Northern Trust Public Funds universe median return was 4.9% and Northern Trust Foundation and Endowment (F&E) universe produced a 5.1% median return. U.S. equity performance was notably volatile in the second quarter, falling 12% during the first eight days of April, only to stage a remarkable 20% rebound, propelling major indices to record highs by quarter's end. Investor excitement around the rapid advancement of artificial intelligence (AI) proved a key driver of performance, contributing to the strongest quarterly equity returns since the post-pandemic surge in Q2 2020, when the S&P 500 returned over 20%. John Turney, Global Head of Total Portfolio Solutions, Northern Trust Asset Servicing, said: 'This quarter's results showcase the resilience of diversified portfolios and the steadfast confidence of institutional investors, even amid shifting economic headwinds. As innovation and adaptability continue to shape global markets, our clients are well-positioned to seize emerging opportunities while managing risk.' U.S. fixed income produced positive returns as well, with the Northern Trust U.S. Fixed Income program universe median return at 1.3% for the quarter. Inflation remained contained, and the U.S. Federal Reserve opted to hold rates steady for the quarter. Yields on short-term bonds declined as the market priced in a delay to anticipated rate cuts. The European Central Bank lowered interest rates by 25 basis points in June, aiding strong returns overseas. The ERISA plan one, three, and five-year median returns were 7.8%, 5.4%, and 3.7%, respectively. In the Northern Trust ERISA plan universe, the median allocation to U.S. Fixed Income was 54.1%, as plans look to invest in bonds to match their investments with future benefit payment obligations. This large fixed-income allocation usually leads to less volatile returns compared to other plan sponsor types. The Public Funds universe median returns for the one, three, and five-year periods stand at 10.1%, 8.2% and 8.8%, respectively. These funds often invest a substantial portion of their assets in both public and private equity, which tends to introduce higher volatility compared to ERISA plans. Notably, the median allocation to Domestic Equity is 26.9% and 12% for International Equity. In the Foundations & Endowments universe, median one, three, and five-year returns were 10.2%, 9.8% and 10%, respectively. Foundations and Endowments frequently utilize limited partnerships (LPs) for their investments in private equity, private credit, infrastructure, and real estate. Due to the delayed reporting of valuations by LPs, these plans tend to underperform in the short term during strong market conditions, as the investment managers' lagging valuations impact the plans' returns. About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2025, Northern Trust had assets under custody/administration of US$18.1 trillion, and assets under management of US$1.7 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn.
Business Wire
2 days ago
- Business
- Business Wire
Northern Trust Announces New Stock Repurchase Authorization
CHICAGO--(BUSINESS WIRE)--On July 22, 2025, the Board of Directors (the 'Board') of Northern Trust Corporation (the 'Corporation') approved a new common stock repurchase authorization (the 'New Stock Repurchase Authorization') authorizing, but not obligating, the repurchase of up to $2.5 billion (the 'Maximum Program Amount') of the Corporation's outstanding shares of common stock from time to time. The New Stock Repurchase Authorization replaces the previously announced authorization approved on October 19, 2021, for which there had been approximately 4.8 million shares of remaining repurchase capacity as of the date of the New Stock Repurchase Authorization after taking into account 572,709 shares repurchased between July 1, 2025 and the date of the New Stock Repurchase Authorization. All funds expected in connection with repurchases after the New Stock Repurchase Authorization shall count against the Maximum Program Amount. The New Stock Repurchase Authorization has no expiration date. Thus, the Corporation retains the ability to repurchase when circumstances warrant and applicable regulation permits. The Corporation expects to acquire shares of common stock under the New Stock Repurchase Authorization through open market transactions, block trades, privately negotiated transactions, and/or pursuant to any trading plan that may be adopted by the Corporation's management in accordance with federal securities laws from time to time, including pursuant to Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing and actual number of shares of common stock repurchased will depend on a variety of factors including price, corporate and regulatory requirements, market conditions, and other corporate liquidity requirements and priorities. The New Stock Repurchase Authorization does not obligate the Corporation to acquire a specific dollar amount or number of shares and may be modified, suspended or discontinued at any time. About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 24 U.S. states and Washington, D.C., and across 22 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2025, Northern Trust had assets under custody/administration of US$18.1 trillion, and assets under management of US$1.7 trillion. For more than 135 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit us on Follow us on Instagram @northerntrustcompany or Northern Trust on LinkedIn. Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at
Forbes
6 days ago
- Business
- Forbes
From Torque To Talent: How AI Is Redefining Risk Operations In Fintech
Vijay Pandey Associate VP in Financial Services at Wipro LTD, is a futurist setting fintech trends through AI and strategic innovation. When power drills and wrenches were introduced, mechanics didn't disappear. They adapted. Physical strength was no longer the key to performance. Instead, technique, experience and torque ratings became the differentiators. This shift extended careers, reduced fatigue and made servicing faster and more cost-effective. More vehicles hit the road, and more service centers opened to maintain them. Now, imagine that same transformation in lending, mortgage and risk operations. AI As The New Power Tool Financial services have traditionally relied on professionals with years of experience to navigate complex models, detect fraud and manage regulatory risk. AI is changing that. It's like giving a cyborg the job: Tasks that once took years of training are now completed faster, more accurately and more consistently. AI does not replace talent. It amplifies it. Junior analysts can perform like seasoned experts, while experienced professionals focus on strategic decisions instead of manual tasks. Generative AI is now embedded across the lending life cycle. From underwriting and funding to servicing and compliance, AI tools detect fraud, flag anomalies, extract data and enable predictive routing. This improves speed, accuracy and customer experience, especially in high-volume areas like mortgage origination and loan servicing. AI also excels in voice interactions. Our AI-powered agents handle common customer queries such as payment assistance, loan status updates and dispute resolution. These agents automate high-frequency calls, reduce the need for human intervention and improve operational efficiency. IT's Shift To Subscription Models Services are evolving. What was once bespoke is now on-demand. Consider tech products. Previously, IT specialists manually configured networks and data centers. Today, cloud platforms like Azure and AWS allow users to spin up servers with a few clicks. The IT role has shifted to cloud and FinOps managers. These professionals optimize configurations for cost and performance. It's similar to portfolio analysts balancing risk and return. Bandwidth versus risk tolerance. Uptime versus return on investment. Configuration versus allocation. Skills are converging. Hyper-Personalization And AI Agents AI is not just about automation. It is about intelligence. Hyper-personalization allows financial institutions to tailor services to individual profiles in real time. For example, Northern Trust uses AI to deliver personalized investment insights and improve equity performance. AI agents are autonomous systems that reason, plan and act. They are reshaping financial operations. These agents are collaborators. They manage workflows, connect to data and make decisions within defined parameters. At the 2025 Febraban Tech conference, CEOs from Brazil's top banks described how AI is transforming their institutions into intelligent platforms. These platforms are connected, predictive and sustainable. AI is accelerating credit decisions, enhancing fraud detection and improving efficiency. Measurable Benefits Our experience shows that AI delivers real results. This includes faster loan processing through document extraction, fraud detection and routing; better accuracy in spotting red flags and inconsistencies; higher customer satisfaction due to quicker responses and fewer errors; a productivity boost in contract migration and document processing; and lower operational costs by automating common call types. Starting Your AI Journey These benefits are not theoretical. For example, AI models reach up to 90% accuracy, reducing false positives and costs. Additionally, in my experience, AI-driven processes cut underwriting processing time by 70%, speeding credit access. AI also simulates thousands of scenarios in seconds, improving stress tests and compliance. These capabilities do not just improve performance. They redefine it. To begin your AI journey, focus on high-impact, low-complexity use cases. Build a scalable data infrastructure and create a pilot-to-scale framework. Embed ethics and explainability early, and invest in talent and change management. Talent Shift From Operators To Architects As AI grows more powerful, human roles evolve. Like mechanics mastering power tools, financial professionals must learn to orchestrate AI systems. This requires hybrid talent. Professionals must understand both finance and technology. The future belongs to those who bridge data science and strategy. AI is the power tool, and no-code and low-code platforms are the new workbench. Those who master both will shape tomorrow's growth. Challenges And Considerations AI adoption brings risks and responsibilities. Here are four key challenges and how to address them: AI thrives on data, but financial data is sensitive. Institutions must prevent breaches and comply with laws like GDPR, CCPA and GLBA. Use encryption and synthetic data, and audit access regularly. AI models must be transparent, auditable and legally sound. Use explainable AI frameworks and ensure architecture supports compliance. AI can reinforce bias, especially in credit scoring and fraud detection. Without explainability, models may fail regulatory review. Use diverse training data, monitor outputs, and ensure transparency. AI requires new skills and cultural shifts. Barriers include resistance, lack of training and unclear roles. Launch certification programs, build cross-functional teams and encourage experimentation. Are You Ready To Pick Up The Wrench? We are on the brink of a financial revolution. Leaders are embracing AI to streamline operations and spark innovation. They are investing in technology and training to evolve with the tools. This shift is redefining roles and creating new opportunities. AI is not a threat. It is a catalyst. It is reshaping operations, unlocking performance and driving growth. So, whether you are in fintech, IT or operations, ask yourself: Are you still relying on muscle, or have you picked up the power wrench of our time? Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
