Northern Trust - NTRS STOCK NEWS

Northern Trust (NTRS) has expanded its partnership with Alchemy Partners to provide asset servicing solutions for Alchemy Special Opportunities Fund V L.P. (ASOF V). The fund exceeded its target, securing €1 billion (approximately $1.03 billion) in total commitments.

Northern Trust will provide comprehensive services including fund administration, depositary, banking, custody, and credit support from its Guernsey office. This builds on their relationship since 1997, with Northern Trust supporting Alchemy's Special Opportunities business since 2006.

ASOF V, structured as a Guernsey partnership with a US feeder partnership, will focus on mid-market corporate special situations across Europe through loans, debt, and equity securities. Alchemy currently manages over €3 billion in assets. The fund includes Luxembourg entities supported by Northern Trust's Global Fund Services team.

Northern Trust has announced that CFO David Fox and Wealth Management President Jason Tyler will be participating in the RBC 2025 Capital Markets Global Financial Institutions Conference. The event will take place in New York City on Tuesday, March 4, 2025, at 9:20 a.m. (ET).

Investors and interested parties can access a live webcast of the presentation through Northern Trust's website in the investor relations section. A replay of the session will remain available for approximately four weeks following the event.

Northern Trust Wealth Management has announced key leadership changes effective March 1, 2025. Glenda Pedroso, with a 35-year banking career, will become Head of Banking and Specialized Services, leading a new function that combines the company's balance sheet, lending, deposit, and liquidity solutions with specialized services. Michael Bracci, a three-decade company veteran, will succeed Pedroso as President of the East Region, overseeing wealth advisory teams across eight states.

Additionally, Alexander Adams will expand his role as Group Managing Director for South Florida to include the Mid-Atlantic Region, while Stacey Hallberg will be promoted to Group Managing Director for East Florida. The company manages $450.7 billion in assets as of December 31, 2024.

Northern Trust reported mixed Q4 2023 performance for institutional investors, with the All Funds Over $100 Million plan universe showing a -0.8% median return in Q4 but achieving a 9.4% gain for full-year 2024. The universe tracks 385 large U.S. institutional investment plans with combined assets exceeding $1.4 trillion.

Q4 performance varied across segments: Corporate (ERISA) plans declined -3.9%, Public Funds fell -1.1%, while Foundation and Endowment universe gained 0.01%. Market volatility was influenced by U.S. election results and Federal Reserve signals about future rate cuts. Despite turbulence, U.S. equity indices reached all-time highs, driven by AI-related stocks.

For the full year 2024, portfolios with higher equity allocations outperformed those heavy in fixed income. The Foundation and Endowment universe, with under 10% fixed income allocation, achieved a 10.2% annual return, while the ERISA universe, with over 50% in fixed income, returned 3.0%.

Northern Trust has released its Capital Market Assumptions 2025 Edition, projecting moderate global equity performance and improved returns in high yield bonds and private credit over the next decade. The report forecasts 7.5% annualized returns for U.S. equities, 5.8% for developed markets ex-U.S., and 6.4% for emerging markets.

In fixed income, the forecast shows 4.7% returns for U.S. investment grade bonds and 5.6% for U.S. high yield bonds. Alternative investments are expected to perform strongly, with private credit at 8.4% and private equity at 10.1%. Global listed infrastructure is projected at 6.6%.

The report identifies three key trends shaping the next decade: AI-Enabled Productivity, Navigating the Energy Transition, and Globalization: Bent, Not Broken. These factors are expected to create divergent paths in global economic growth.

Northern Trust (NTRS) has been selected as the global private capital administration partner for Igneo Infrastructure Partners, a specialist infrastructure manager with US$20 billion in assets under management. Igneo, operating since 1994, manages investments across renewables, digital infrastructure, waste management, water utilities, transportation and logistics sectors globally.

Northern Trust will provide comprehensive services for Igneo's funds domiciled in Australia, the Cayman Islands, Luxembourg and US, including fund administration, investor servicing, transfer agency, corporate secretarial and depository services. The selection followed a thorough review of third-party providers and aims to align with Igneo's global operating model and strategic plans.

Northern Trust Asset Management (NTAM), managing US$1.3 trillion in assets, announced a significant expansion of its global quantitative investment strategies team. The firm has hired 13 new investment personnel in Amsterdam, including quantitative researchers, portfolio analysts, and developers, who will join starting February 2025.

Key appointments include Maarten Smit as Senior Portfolio Analyst, Tim Zwinkels as Senior Quantitative Researcher, Edmund Wadge as Senior Quantitative Researcher, and Gijsbert de Lange as Investment Solutions Expert. The new team brings expertise in machine learning, AI, alternative data sets, and sustainable investing signals.

This expansion follows recent appointments including Guido Baltussen as Head of Quantitative Strategies, International. NTAM currently manages US$43 billion in quantitative strategies across equities and fixed income as of December 31, 2024.

Canadian pension plans demonstrated resilience in Q4 2024, achieving a 1.5% median advance and a robust 10.6% return for the full year, according to the Northern Trust Canada Universe. The quarter was characterized by mixed market performance amid economic shifts and geopolitical tensions.

Canadian equities (S&P/TSX Composite Index) gained 3.8% in Q4 and 21.7% for the year, with Information Technology leading both periods. U.S. equities (S&P 500) rose 9.0% in CAD for Q4 and 36.4% for the year. International markets faced challenges, with the MSCI EAFE Index declining 2.1% in Q4 but gaining 13.8% for the year.

The Bank of Canada cut interest rates by 50 basis points to 3.25% in December, while the Federal Reserve implemented a 25-basis-point cut to 4.25-4.50%. The Canadian Fixed Income market remained flat for the quarter, with corporate bonds showing positive returns while Federal and Provincial bonds declined.

Northern Trust (NTRS) has announced a significant enhancement to its Carbon Ecosystem™, enabling the generation of digital voluntary carbon credits in near real-time. This development streamlines the verification process for Voluntary Carbon Markets (VCM) by automating previously manual processes.

The system can now receive data and record verified carbon credits almost instantly, capturing important attributes like CO2 capture flow rates and power consumption. Northern Trust is collaborating with several partners, including InceptionX, which has successfully transmitted carbon data from a San Francisco wastewater recycling installation, Mangrove Systems, providing digital measurement and verification solutions, and The Carbon Removers, a UK-based project developer working with a Scottish distillery.

This enhancement follows the formal launch of The Northern Trust Carbon Ecosystem in September 2024, which connects institutional buyers with project developers. The platform uses blockchain technology to enable direct purchase and retirement of digital carbon credits, with Northern Trust acting as the designated custodian.