Custody buyer's guide: Northern Trust

Global Finance, Jul 2001

SPECIAL REPORT

Northern Trust

Custody Assets: 2000:$1.7 trillion;1999:$1.5 trillion.

Ratings: Moody's:Aa3; S&P:AA-; Fitch IBCA:AA.

Client Profile: By location: Clients are domiciled in 37 countries. By investor

type: Pensions: 47%; Central Banks/Governments/Monetary Authority: 29%;

Funds: 11%; Other: 13%. Foreign: 299; Domestic: 904.

Capabilities/Services: Northern Trust offers clients a full range of core and value-added. Summary of services provided: Settling trades and safekeeping assets in 90 markets; foreign exchange; cash management capabilities; income collection; tax Reclamation; contractual settlement; corporate actions; securities lending; reporting in both base and local currencies; performance measurement.Top Emerging Markets: Based on the total assets under custody in Northern Trust's subcustodian network, top holdings in the emerging markets include: South Korea, South Africa, Portugal,Taiwan, Brazil, Malaysia, Greece.

Business Developments: Northern Trust continues to focus on four areas of ongoing development: stability of our systems; availability of information; compliance with regulatory requirements; productivity of our operations. Each year multiple initiatives are undertaken to maintain the highest level of system stability, availability, and productivity. Regulatory requirements. In 2000 two of the largest enhancements to our system for regulatory purposes were the improvement in our Canadian regulatory reporting package and the implementation of the US NoResident Alien tax withholding regulation. In 2001 Northern Trust continues to develop enhancemenu to support these changes in regulations.

Other 2001 development plans involving technology are focused on: Introducing our newest version of Northern Trust Passport(R), a portal-based product called Global Investor Passport; continuing the migration of clients to Northern Trust's Web-based reporting platform; participating in the Global Straight-Through Processing Association's (GSTPA) pilot program to accommodate their new environment as we continue to devote our initiatives toward straight-through processing (STP); Implementing the Continuous Linked Settlement (CLS) capability being introduced into the foreign exchange marketplace; expanding our online notification of corporate action announcements.

Outlook: Expectation of continued worldwide consolidation and emphasis on industry level operating improvements through GSTPA and comparable initiatives. Northern Trust will continue its focus on delivering the highest levels of service, availing clients to a deep product range built around specific needs leveraged through our industryleading technology platform.

Contacts: Steven Fradkin, senior vice president.Tel. 312-444-2292. Fax: 312444-5258. E-mail: slf2@ntrs.com.

Web site: www.northerntrust.com

This feature is an addendum to Global Finances 11th Annual Custody Buyer's Guide, published as a Special Report in the April 2001 issue.