Northern Trust Asset Management Increases Use of Minority Brokers

Rhea-AI Summary

Northern Trust Asset Management (NTAM) is enhancing its Minority Brokerage Program by increasing its trade execution commitment from 10% to 15% of equity security trading commissions starting March 2021. This program, initiated in 2007, aims to promote diversity, equity, and inclusion within the investment industry by supporting broker-dealers owned by minorities, women, veterans, or individuals with disabilities. The initiative aligns with growing investor interest in diversity-focused asset managers and builds on NTAM's decade-long partnerships with diverse organizations.

Positive

• Increase in commitment to minority-owned broker-dealers to 15% of trading commissions.
• Proven track record of meeting or exceeding the previous 10% target since 2018.
• Recognition as a Diversity Champion by InvestmentNews magazine.

Negative

• None.

As part of its ongoing commitment to ensuring and advancing diversity, equity and inclusion within the investment industry, Northern Trust Asset Management (NTAM) is increasing its trade execution services commitment to broker-dealers owned by minorities, women, veterans or people with disabilities. The execution target for its Minority Brokerage Program is increasing in March from 10 percent to 15 percent of equity security trading commissions in certain commingled funds, while continuing to meet our best execution standards.

NTAM started its Minority Brokerage Program in 2007 and in 2018 instituted a 10 percent trading target that the participating funds have consistently met or exceeded.

“As one of the world's largest investment managers[1], we founded the program over a decade ago because we recognized both the impact we can have to advance diversity within the industry and that partnering with diverse organizations can lead to better outcomes,” Northern Trust Asset Management President Shundrawn Thomas said. “Empirical data has long shown that top-performing companies, regardless of industry, are those that excel on cultural, ethnic and gender diversity. This shouldn’t surprise anyone, as it’s only logical that diversity strengthens culture and increases creativity and innovation—all key ingredients to success.”

Investors have been increasingly looking to partner with asset managers that share a commitment to diversity, equity, and inclusion. The pandemic has led investors to focus even more on doing so, as inequities and other social ills have come into sharp view.

“We are delighted that our Minority Brokerage Program provides clients with a proven means to have a significant percentage of their assets aligned with firms owned by minorities, women, veterans or people with disabilities,” said Chief Investment Officer Bob Browne. “And from an even larger perspective, we take pride in the fact that clients understand that the program is just one part of our long-standing commitment to diversity, equity and inclusion.” A recent acknowledgement of this commitment is Northern Trust Asset Management being named a Diversity Champion by InvestmentNews magazine last year for the second time in the last three.

Northern Trust Asset Management has been cultivating relationships with minority-owned investment management firms and brokerages for more than a decade. The firm’s commitment to diversity also includes its multi-manager solutions business, which invested approximately $4.6 billion with 17 minority-owned investment-management firms through manager-of-manager programs as of December 31, 2020. Minority owned firms that provide equity research are also part of the program.

About Northern Trust Asset Management

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments, so they can confidently realize their long-term objectives. Entrusted with US$1.1 trillion of investor assets as of December 31, 2020, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management to craft innovative and efficient solutions that deliver targeted investment outcomes. As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect, and transparency.

Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Belvedere Advisors LLC and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.

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 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of December 31, 2020, Northern Trust had assets under custody/administration of US$14.5 trillion, and assets under management of US$1.4 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Please read our global and regulatory information.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210308005042/en/

FAQ

What is the purpose of Northern Trust's Minority Brokerage Program?

The program aims to enhance diversity, equity, and inclusion within the investment industry by increasing trade execution commitments to broker-dealers owned by minorities, women, veterans, or individuals with disabilities.

When will the new trading target for Northern Trust's Minority Brokerage Program take effect?

The new target of 15% will take effect in March 2021.

What was the previous target for Northern Trust's Minority Brokerage Program?

The previous target was 10%, which had been established in 2018.

How much did Northern Trust invest with minority-owned firms by the end of 2020?

As of December 31, 2020, Northern Trust invested approximately $4.6 billion with 17 minority-owned investment management firms.

What recognition has Northern Trust Asset Management received for its diversity efforts?

Northern Trust Asset Management was named a Diversity Champion by InvestmentNews magazine for the second time in the last three years.