Northern Trust posts major assets under custody increase

Northern Trust secured a number of key custody mandates over the year, as well as completing the acquisition of UBS Asset Management’s fund services businesses.
By Jonathan Watkins

Northern Trust boosted its assets under custody and administration by over a quarter during 2017, capping off an eventful year for the Chicago-based custodian.

Mandate wins from the Boeing Company, the Northern Ireland Local Government Officers’ Superannuation Committee and Scottish Borders Council helped boost Northern Trust’s results.

The global custodian also completed its acquisition of UBS Asset Management’s fund services businesses in Switzerland and Luxembourg during the year.

The deal meant that Northern Trust became the administrator for funds with approximately $413 billion in assets.

The rise builds on the 10% increase in assets under custody seen from 2015 to 2016.

“Our fourth quarter performance capped off a strong year,” said Michael O’Grady, president and chief executive officer of Northern Trust. “Both revenue and fee growth for the quarter were 15% and substantial across all of our businesses.”

Northern Trust also secured both Global Custodian Industry Person of the Year awards in 2017, going to Justin Chapman, global head market advocacy & innovation research, in Europe, and Peter Cherecwich, president of corporate & institutional services, in North America.

More recently, the custodian announced it would acquire Citadel’s hedge fund technology resources.

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