northern trust update - fresno · to offset or eliminate costs of custody and administration ......
TRANSCRIPT
N O R T H E R N T R U S T
Jeff Porta, Senior Vice President
(312) 557-0474
City of Fresno Fire and Police Retirement System &
City of Fresno Employees Retirement System
Northern Trust Update
Robert Ernst, Senior Vice President
(312) 444-5498
Don Anderson, Vice President
(312) 444-5386
Patrick Fitzgibbons
(312) 557-1819
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A Unique Business Focus
Founded in 1889, Northern Trust is a market leader of asset servicing and asset management solutions for institutions and private clients around the globe.
A highly focused business model supporting two client bases across a single operating platform
Wealth Management
Corporate & Institutional Services (C&IS)
Asset
Servicing Asset
Management
WORLDWIDE INSTITUTIONAL INVESTORS
U.S. and European PRIVATE CLIENTS
Assets
under custody
US $6.00 trillion
Assets
under administration
US $3.5 trillion
Assets
under management
US $924 billion
As of 6/30/2014
Source: Northern Trust
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Northern Trust Profile
Founded in 1889, Northern Trust is a market leader of asset servicing and asset management solutions for institutions and private clients around the globe.
Outstanding Long Term Financial
Performance
5 Yr
CAGR
10 Yr
CAGR
15 Yr
CAGR
Trust Fees 4% 8% 8%
Revenues -1% 7% 7%
Expenses 0% 8% 8%
Net Income -2% 6% 5%
Assets Under Custody 13% 10% 10%
Assets Under Management 10% 6% 9%
S&P 500 15% 5% 3% As at 12/31/13
Asset Servicing Banks Historic P/E Ratio
Superior Capital Strength Strong & Steady Credit Ratings
85% of Northern Trust’s total securities portfolio composed of triple-A rated securities
Average re-pricing duration of <1year
High Quality Balance Sheet
As at 06/30/14
The long-term ratings of both the Corporation and our main bank subsidiary,
The Northern Trust Company, are the highest assigned by Standard &
Poor’s and Fitch Ratings to any comparable U.S.-based banking institution
Northern Trust’s long-term ratings from Moody’s Investors Service are the:
second highest assigned to a comparable U.S.-based banking institution
at the holding company level, and
third highest at the main bank level
Total equity (US$ Billions)
CAGR: 10%
Leases & Loans 29% Money
Market Assets 29%
Securities 33%
Other 9%
As at 12/14/2013
$3.1 $3.3 $3.6 $3.9 $4.5 $4.9
$6.3 $6.8 $7.1 $7.5 $7.9 $8.0
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Q22014
Northern Trust Corporation
Capital Ratios 2Q14 “Well Capitalized “
Guideline 3
Advanced Approach 1
Common Equity Tier 1 12.7% 6.5%
Tier 1 12.9% 8.0%
Total 14.9% 10.0%
Standardized Approach 2
Common Equity Tier 1 12.7% 6.5%
Tier 1 12.9% 8.0%
Total 15.4% 10.0%
Leverage 7.6% 5.0%
1 Effective with the second quarter of 2014,
Northern Trust exited its parallel run.
Accordingly, the June 30, 2014 ratios are
calculated in compliance with the Basel III
Advanced Approach final rules released by
the Board of Governors of the Federal
Reserve on July 2, 2013. 2 Standardized Approach capital components
in 2014 are determined by Basel III phased in
requirements and risk weighted assets are
determined by Basel I requirements. The
ratios calculated under the Standardized
Approach comply with the final rules
released by the Board of Governors of the
Federal Reserve on July 2, 2013. 3 Well Capitalized guidelines shown above
have been proposed by the FDIC and if
approved would become effective on
January 1, 2015.
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California Locations
10 Offices
Illinois Ohio
Michigan
Florida
Colorado
Washington
Missouri
Nevada
Wisconsin
Georgia
Arizona
New York
Connecticut
Delaware
Minnesota
Texas
Massachusetts
California
Santa Barbara
Montecito 1485 East Valley Road
Santa Barbara 206 East Anapamu
Menlo Park 2500 Sand Hill Road, Suite 150
San Francisco 580 California Street, Suite 1800
Mill Valley 575 Redwood Highway
Pasadena 201 South Lake Ave, Suite 600
Los Angeles 2049 Century Park East, Suite 3600
Newport Beach 16 Corporate Plaza Drive
San Diego 4370 La Jolla Village Drive, Suite 1000
La Jolla 1125 Wall Street
Marin County
Montecito
Pasadena
San Diego
Santa Barbara
La Jolla
San Francisco
Silicon Valley
Orange County
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Public Funds Clients in California
City of Fresno – Fresno, CA Kern County Employees’ Retirement Association – Bakersfield,
CA
City of Oakland – Oakland, CA Los Angeles City Employees' Retirement System – Los Angeles,
CA
East Bay Municipal – Oakland, CA Los Angeles Fire & Police – Los Angeles, CA
Fresno County – Fresno, CA Orange County Treasurer – Santa Ana, CA
Golden Gate Transit Amalgamated Ret Board – San Rafael, CA San Francisco City and County Employees' Retirement System –
San Francisco
San Joaquin County – Stockton, CA Los Angeles Water & Power Employees Retirement Plan – Los
Angeles, CA
San Mateo County Employees Retirement Association –
Redwood City, CA
Alameda-Contra Costa Transit District – Oakland, CA
Stanislaus County Employees’ Retirement Association - Modesto, CA
Representative California Public Funds Clients:
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Delivering A Broad Range of Solutions
Full array of capabilities to meet needs of sophisticated institutional investors.
Fund accounting
Transfer agency
Corporate secretarial
Trustee
Investment operations outsourcing
Safekeeping
Settlement
Derivatives processing
Banking/Integrated Disbursements
Income collection
Corporate actions
Tax reclamation
Global index management
Quantitative active
Fundamental active
Target date
Multi manager
Exchange traded funds
Hedge funds
Private equity
Investment outsourcing
Liability driven investing
Investment accounting
Reporting and valuation
Performance analytics
Risk monitoring and reporting
Trade execution analysis
Data warehouse
Cross-border pooling (patent pending)
Trade execution
Cash management
Transition management
Securities lending
Foreign exchange
Commission management
Passive currency overlay
Asset Administration
Asset Processing
Asset Reporting
Asset Enhancement
Asset Management
N O R T H E R N T R U S T
Don Anderson, Vice President
(312) 444-5386
City of Fresno Fire and Police Retirement System &
City of Fresno Employees Retirement System
Northern Trust Global Securities Lending
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Background of the Lending Process
It promotes market efficiency and liquidity
Integral component of developed securities market for both domestic and international investors
Allows price discovery and the arbitrage of pricing inefficiencies
Supports the development of the capital markets by facilitating various investment strategies
Important part of risk management
Used for fail coverage to ensure smooth settlement cycles
Who lends securities and why?
Long-Term, Institutional Investors
An investment tool to enhance portfolio returns
To offset or eliminate costs of custody and administration
Does not interfere with portfolio strategy – investment manager should continue regardless of
securities lending
Who borrows securities and why?
Investment banks (Prime Brokers), investment funds, prop traders, market makers and other intermediaries
Hedging
Short sell
Arbitrage strategies
Settlement obligations
Why do borrowers borrow
and lenders lend?
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The Life Cycle of a Loan
Client (The beneficial
owner of
the securities)
Borrower (The entity to whom
the securities are
lent, typically a
broker/dealer)
Security Availability
Loan Allocations
1. Initiate Loan
2. Negotiate Terms
3. Receive Collateral
4. Move Security
5. Daily Mark to Market
6. Return Security
7. Return Collateral
Master Borrowing Agreement Securities Lending Authorization Agreement
Cash
Collateral Non-Cash
Collateral
Northern
Trust
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Understanding the Components of Securities Lending Income
Yield on
Cash Collateral
Investment
Federal Funds
(or benchmark) Rate
Rebate Rate (Positive, above 0%, is paid
to borrower. Negative, below
0%, is paid by borrower)
Reinvestment Spread + Intrinsic Value Spread = Total Securities Lending Spread
Total Securities Lending Spread x Loan Volume = Total Gross Securities Lending Income
Reinvestment Spread:
Basis points earned from
reinvestment of cash collateral
(Yield on Cash Collateral
Investment – Fed Funds Rate)
Total
Securities
Lending
Spread
Intrinsic Value Spread:
Basis points earned
from lending security
to borrower, based on
intensity of borrower
demand
(Fed Funds Rate –
Rebate Rate)
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How Revenue is Generated: Cash Collateral Loan
Gross Spread = Lending Spread + Investment Spread
Lending Spread = Fed Funds – Rebate Rate
Investment Spread = Reinvestment Yield – Fed Funds
Example: Northern Trust lends $25 million of US Treasuries at par
The $25 million market value loan is for 30 days collateralized with cash (fed
funds at 0.15%)
1 Receive cash collateral valued at $25,500,000 (102%)
2 Cash collateral invested in a collateral pool at yield of 0.20% $ 4,250.00
3 Rebate paid to borrower at rate of 0.05% $ (1,062.50)
4 Gross Revenue (gross spread 15 bps) $ 3,187.50
6 Net client earnings $ 1,912.50
5 Monthly lender’s fee (@ 40%) $ 1,275.00
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Emphasis on customization, automation and transparency
Borrower Network 53 approved parent borrowers
24-hour trading in 52 worldwide markets
Top 10 borrowers represent 74% of loan volume
Goldman Sachs, Morgan Stanley, Citigroup, Bank of America, JP Morgan Chase, Barclays PLC,
Credit Suisse Group, Deutsche Bank, HSBC Holdings PLC, The Royal Bank of Scotland
Collateral Structure $116 billion in collateral ($79 billion cash, $37 billion non-cash). Approximately 41% of cash is held
in commingled pools, 59% is in separately managed accounts
Cash managed by Northern Trust Asset Management ($255.1 billion in total AUM for Short Duration Fixed Income)
Global Team 190 Securities Lending partners in Chicago, London, Toronto, Hong Kong and Bangalore
Managers average approximately 20 years industry experience
Experts are actively engaged in global industry groups (i.e. RMA, ISLA, PASLA and CASLA)
Lendable Base $901 billion lendable securities for 370 clients
$112 billion loans outstanding
Diverse, global client base spanning 27 countries
Program Philosophy & Overview June 30, 2014
Philosophy Capital markets activity designed to enhance the return of an overall investment program
Extract intrinsic value from each loan
Customized collateral selection and participation to match individual risk tolerance
Does not interfere with investment strategy
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Managing Risk
Risk Definition Mitigating Factors
Borrower Risk Borrower default combined with
insufficient collateral
Rigorous credit committee review
of borrowers and exposure limits
Daily marking of loans/collateral
Borrower default indemnification
Risk analysis tools (MSCI Barra)
to measure and calibrate exposure
Trade Settlement
Risk
Investment manager sells loaned
security and borrower fails to return in
time to settle the trade
Timely trade notification
Robust automated reallocations
Trade settlement protection
Additional Risks with Taking Cash as Collateral
Cash Collateral
Reinvestment Risk
Cash collateral investment becomes
impaired or decreases in value
Client approved investment guidelines
Robust independent oversight of cash pools
and investments
Dedicated team of fixed income research analysts
Daily automated monitoring of portfolio guidelines
and compliance
Interest Rate Risk Loan rebate rate exceeds earnings on
cash collateral investments
Close daily communication between lending and
cash management teams
Shared risk between Northern Trust
and client
Weekly “gap analysis” and periodic
stress testing of portfolio
Risk Management
is the cornerstone
of our program
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Borrower Risk Management
We employ a dynamic, ongoing risk and exposure management process for our borrowers
Credit analysts review
market commentary and
data to analyse financial
stability
Provides oversight while
maintaining a responsive
capability to take actions as
needed
Monitors borrower
exposures derived from a
Value at Risk (VaR)
approach using each
borrower's loan and
collateral positions
Supplements traditional
credit analysis by providing
insight into risk from
borrowers' Securities
Lending activity
Securities Lending group presents on
each borrower to Counterparty Risk
Management Committee
Review financial performance of our 10
largest parent-level borrowers based on
their latest quarterly results, and all
borrowers capitalization, public rating of
the parent and compliance with our three
concentration tests
Present a comprehensive
analysis on borrowers and credit
limits to the Credit Policy
Wide-scale analysis includes
review of financial statements,
VaR, capital calculations, rating
agency analysis, and regulatory
compliance
Quarterly
review
Annual
review
Collateralized Product Risk Committee
Daily
review
Our borrower selection follows stringent approval procedures and financial viability standards
Overall Credit Risk - Established framework to size borrower credit limits to reduce concentration risk via three tests: Credit exposure relative to the borrower’s capital, size of our exposure to the borrower relative to other market participants, and size of our exposure to the borrower relative to Northern Trust’s total lending program
Ratings The majority of our borrowers will have a long-term individual or parent-level credit rating of A- or better and a short-term rating of A-1 or better from at least one NRSRO.
Financial responsibility and compliance - Each borrower and parent borrower must provide audited financial statements, be financially sound and in compliance with regulatory capital requirements
Parent Organization - We also focus on the condition and creditworthiness of the borrower’s parent organization
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Demand from the Borrower Community
Equity Markets
Loan balances continued to climb throughout the second quarter
supported by rising equity prices and higher volumes associated
with European yield enhancement trading activity.
As equity prices rose, hedge funds closed out losing short positions,
resulting in lower on loan balances and narrower intrinsic spreads
on certain hard to borrow securities, though strong pockets of
borrower demand remain.
European dividend season was in full swing during the second
quarter with pricing levels generally lower on a year-over-year
basis. Contributing factors included lower dividend yields in some
markets as well as borrower balance sheet constraints impacting
demand.
Fixed Income Markets
U.S. Treasury yields remained subdued despite signs of potential
interest rate hikes in the coming year.
The global regulatory environment continues to pressure borrowers
to reduce their balance sheets, impacting demand for lower intrinsic
value securities (i.e. US Treasuries).
Demand for high grade sovereign debt (especially vs. alternative
collateral) remains high as industry regulation requires borrowers to
pledge high grade collateral versus other financial transactions.
Market Drivers
As equity prices continued to climb, market volatility dropped to levels not
seen since before the financial crisis, nearly 50% below historic averages.
With equity markets pushing toward record territory, some investors added
to their long holdings of equities, contributing to an increase in short
hedges and borrower demand.
General Recent Observations and Trends
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Collateral Reinvestment: Current Observations & Trends
Central Bank activity taking center stage – although different paths are emerging:
The European Central Bank (ECB) lowered its deposit rate to -10 basis points. This marks a first for a major economy to
have negative rates. Europe is facing deflationary pressures which should lead to an accommodative central bank for
some time to come.
The US Federal Reserve (Fed) is nearing completion of its bond buying (quantitative easing) program, and market
expectations are for a rate increase in mid to late 2015.
The Bank of England (BOE) is closest to raising its short-term policy rates in response to a strengthening economy and
quicker-than-expected reduction in unemployment. A rate hike is expected as early as the end of 2014.
Supply dynamics in the short-term markets remain under pressure:
The regulatory environment has caused financial firms to issue less short-term debt, while money market investors hold
a large supply of cash – both pressuring rates lower.
The Fed’s fixed rate full allotment repurchase agreement facility has proved vital to the short-term markets in providing
investments for money funds. Proof of it’s importance is demonstrated daily, averaging over $100 billion in usage, with a
peak at quarter-end of $339 billion.
The prospect of higher rates has not made it’s way to the short-term markets. The technical factors of supply and
demand are outweighing the fundamentals pointing to higher rates.
Current portfolio positioning:
Neutral portfolio duration to minimize the impact of future rising rates.
Strong overnight liquidity positions focused on repurchase agreements and time deposits of well-capitalized financial
institutions.
Longer-dated trades of floating-rate instruments as opposed to fixed-rate.
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Brief Overview of Key US Regulatory Developments
Northern Trust is tracking global regulatory developments that may impact securities lending and is actively engaged with various federal agencies on these regulations either directly or through industry groups.
Regulatory Development Anticipated Impacts Next Steps
Dodd-Frank
Volcker Rule - 619 · The final regulation does not exclude securities lending cash collateral pools from the scope of
the Volcker Rule and therefore may curtail agent lenders’ sponsorship of unregistered cash
collateral pools.
Final Rules issued December 2013;
Conformance deadline July 2015
· Lending agents may consider alternative strategies/structures for cash collateral reinvestment.
Counterparty Concentration Limits – 165(e) · Limits a bank’s combined credit exposure to a single counterparty to no more than 25% of the
bank’s capital.
Awaiting final rules.
· Credit exposure calculations include indemnified securities lending transactions; agent lenders
may face constraints on providing indemnification and accepting sovereign debt as collateral.
Securities Lending Transparency – 984 · Requires SEC to increase transparency in securities lending. Awaiting proposed rules (overdue
since mid-2012); no clear timeframe
for rules to be issued · SEC expected to develop regulations that align with proposals from the Financial Stability
Board’s Workstream on Securities Lending and Repo.
Money Market Reform · SEC adopted rules for “prime” money market funds that involve requirements such as floating
NAV. Additional restrictions, such as redemption gates and liquidity fees will be at the discretion
of the fund board.
Final rules approved July 23, 2014,
with 2 year compliance period.
· Funds having over 99.5% invested in government securities are exempt from these new
requirements.
Basel III
Capital · Increased capital requirements will make it more costly for agent lenders to provide
indemnification.
Final US rules released in July 2013;
effective January 2015
Large Exposures · Similar in concept to Counterparty Concentration Limits; restricts a bank’s combined credit
exposure to a single counterparty to a portion of the bank’s capital.
Final Basel III standard released April
15, 2014, but treatment of securities
lending exposures remains open;
awaiting final rules.
Leverage Ratio · Indemnified securities lending activity to be captured in Basel III leverage ratio.
· Exposure for securities lending to be measured generally by current exposure, which should
be negligible given securities lending positions are over-collateralized.
· Additional leverage ratio impact for any guarantees or exposures beyond replacement
securities in US Agency proposal.
Basel III standards finalized Jan 2014.
US Agencies issued Notice of
Proposed Rulemaking on April 8,
2014.
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Investment Profile: Core USA Cash Collateral Fund June 30, 2014
* Based upon traded basis from holdings reports
NOTE: This information was created using the best unaudited data available to us and may not be completely reliable, accurate, or timely. Data is prepared on a
settled basis, which may differ from traded basis data on the Cash Collateral Holdings report. “Traded Basis” reflects pending trades.
Core USA 6/30/13 Fresno
Average Yield Market to Book Avg Loan Duration
0.24% 0.99999 65 Days
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$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
2007 2008 2009 2010 2011 2012 2013 2014
Int'l Equity
Int'l Fixed
US Equities
US Corp Bds
US Agencies
US Treasuries
Historical Net Earnings Fiscal Years Ended June 30
CITY OF FRESNO
$2,154,273
$1,153,376
$1,015,208
$1,723,512
$823,419
$1,025,408 $1,105,631
$1,237,025
20
Earnings Scorecard Year Ended 06/30/14
21
Earnings Performance Comparison Year Ended 06/30/14 versus Year Ended 06/30/13
22
Performance Scorecard: Top Ten Earning Securities
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Transparency and Information Delivery
Monthly reporting
Performance scorecard:
Account earnings and performance
Security level detail
Client by asset type and account earnings
Date range comparison
Historical statistics graph
Earnings statement - summary and detail
Daily reporting
Securities loaned – detail
Borrower utilization – summary by borrower
Account utilization – loan detail, summary by
account
Collateral – by security type, country and detail
holdings
Executive Summary
Flexible, electronic reporting: Northern Trust provides you with customized reports to help monitor
your Securities Lending activity
Helping to keep you
informed about your
Securities Lending
performance.
Securities Lending
Data Block on
Passport®
Facilitates the online
distribution of vital,
tailored information on
each client’s portfolio
holdings, characteristics,
investment performance
and commentary
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Fully committed to
Securities Lending
Capitalize on Northern Trust’s
Asset Servicing
and Asset Management
strengths
Stable and experienced team
dedicated to
Securities Lending
Northern Trust
Global
Securities
Lending
Northern Trust provides managed risk and proven performance supported by committed professionals.
Why Northern Trust
Exceptional
Capital
Strength
A Core
Business
Unique
Global
Integration
Proven
Performance
Results
Unrivaled
Client
Focus
Sustained financial strength
and stability
Important to work with a
stable and disciplined agent
Indemnification only as
strong as provider
Market expertise provided
by a single global team of
professionals
Technology efficiency
achieved through a single,
global proprietary trading
platform
Competitive advantage
gained via distinctive global
infrastructure
33-year track record of innovative solutions
supported by robust risk management
Focused on optimizing the intrinsic value of client
assets
Consistently exceeds industry benchmarks
In top 2 in trade value for Fixed Income and
Equities for Autoborrow
Dedicated relationship staff
demonstrating corporate
culture of exceptional client
service
Anticipate client needs and
proactively customize
solutions
Relationship focused, not
transaction oriented
northerntrust.com © 2013 Northern Trust Corporation
N O R T H E R N T R U S T
Antwon McGruder, Vice President
(312) 557-3545
City of Fresno Fire and Police Retirement System &
City of Fresno Employees Retirement System
Northern Trust Commission Management
26
Commission Management Review – 2013
January 1, 2013 through December 31, 2013
Program Commission $ 994,130.62
Rebate basis $ 49,762.81
Rebate $ 38,036.34
Rebate % 80 – Domestic
70 – International
% CM trades of total 9.75 %
Effective commission rate
Before rebate 1.31 cps (cents per share)
After rebate 1.26 cps
27
Effective Commission Rates – 2013
28
Commission Management Review – YTD 2014
January 1, 2014 through July 31, 2014
Program Commission $ 650,545.63
Rebate basis $ 25,031.33
Rebate $ 18,681.85
Rebate % 80 – Domestic
70 – International % CM trades of total 7.35 %
Effective commission rate
Before rebate 0.89 cps (cents per share)
After rebate 0.86 cps
29
Effective Commission Rates – YTD 2014
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Current Environment
Commissions have been falling for the last few years
Providers excluding trades having commissions under a specified level, usually 3cps
Many CM providers and participating brokers left the space
Program economics tough in the lower commission environment
Northern’s Commission Management, a smarter approach
Northern Trust Securities restructured its Commission Management program
Economics work for all parties
All trades are eligible
Rebate basis is 80% commission in excess of the executing brokers cost of trade processing
Economics work for City of Fresno Retirement Systems
Recaptured amount lowers effective commission
Benefit to plan until there is no rebate available
No rebate available means plan is trading at broker’s cost.
Commission Management Summary
31
Disclosures
Please note that the reports have been created using the best available preliminary data. Please also note that the information
contained in the reports is preliminary (and therefore may not be completely reliable) and it is provided to you for your own internal
informative purposes only. Reports may also contain information provided by third parties, derived by third parties or derived from third
party data and/or data that may have been categorized or otherwise reported based upon client direction - Northern Trust assumes no
responsibility for the accuracy, timeliness or completeness of any such information. If you have questions regarding third party data or
direction as it relates to any reports, please contact your Northern Trust relationship team.
Evaluations are based on the asset allocation, actual historical spread and on-loan figures provided to Northern Trust. Consequently,
as changes in these factors occur and as trading patterns of the portfolio managers’ shift, actual earnings generated in Securities
Lending may be impacted.
CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If
you are not the intended recipient, please notify the sender ASAP and delete this message from your system.
IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used
and cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. For more information about this
notice, see http://www.northerntrust.com/circular230.
32
Disclosures
FOR INSTITUTIONAL INVESTORS ONLY: This material is directed to eligible counterparties and professional clients only and should not be
relied upon by retail investors.
CONFIDENTIALITY NOTICE: This communication is confidential, may be privileged and is meant only for the intended recipient. If you are
not the intended recipient, please notify the sender ASAP and delete this message from your system.
IRS CIRCULAR 230 NOTICE: To the extent that this message or any attachment concerns tax matters, it is not intended to be used and
cannot be used by a taxpayer for the purpose of avoiding penalties that may be imposed by law. For more information about this notice, see
http://www.northerntrust.com/circular230.
The content of this material is provided for informational purposes only. This material is not intended to be relied upon as a forecast,
research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment
strategy. The information and opinions contained in this material are derived from proprietary and non-proprietary sources deemed to be
reliable, but are not necessarily all inclusive and are not guaranteed as to accuracy. Any opinions expressed herein are subject to changed
at any time without notice; any person relying upon this information shall be solely responsible for the consequences of such reliance. Past
performance is no guarantee of future results.
The foregoing discussion is general in nature, is intended for informational purposes only and is not intended to provide specific advice or
recommendations for any individual or organization.
Products offered through Northern Trust Securities, Inc. are not FDIC insured, not guaranteed by any bank, and are subject to investment
risk including loss of principal amount invested. Northern Trust Securities, Inc. is a member of FINRA and the SIPC and a wholly owned
subsidiary of Northern Trust Corporation.
Additional information available upon request.