Transcript Northern Trust - American Chamber of Commerce Ireland

NORTHERN TRUST
“Operational Excellence”
15th October 2009
Melíosa O’Caoimh – Chief Operating Officer, Northern Trust Ireland
Catherine Duffy – General Manager, Northern Trust Limerick
© 2008 Northern Trust Corporation
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.
Corporate & Institutional Services (C&IS)
worldwide institutional investors
Asset
Servicing
Asset
Management
Assets
under custody
US$3.2
trillion
Assets
under administration
Personal Financial Services (PFS)
U.S. and European private clients
US$838.8 billion*
Assets
under management
US$558.9 billion
As of 30 June 2009 (updated quarterly)
* Includes US$ 114.9 billion defined
contribution funds, as at 31 December 2008
(updated bi-annually)
Source: Northern Trust
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A highly focused business model supporting two client bases across a
single operating platform
Local Expertise Supported by Global Processes
=
Dublin
London
Limerick
Toronto
Chicago
New York
Guernsey
Amsterdam
Beijing
Luxembourg
Jersey
Tokyo
Hong Kong
Abu Dhabi
Bangalore
Singapore
17 global locations
12,527 staff worldwide
Services in 94 markets
Clients in 40 countries
As at 31 March 2009 (updated quarterly)
Source: Northern Trust
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Melbourne
A Single Global Operating Model
Our platform never sleeps…
Dublin
Limerick
London
Guernsey
Bangalore
Chicago
Bangalore
Singapore
Singapore
 A single global operating model providing round-the-clock service, data and processing
provision
 Web-based portal, Northern Trust Passport®, delivers customized data and reporting 24/7
 Global best practice and transparency
 Access to a global pool of product and service experts, at any time, anywhere
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The Ireland Office Story – May 2000 to present day
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
2000
Acquired Ulster Bank Fund Administration business with 60 staff

2001
Attained first multinational pooling client & full outsourcing client in Europe

2002
Moved to new office Georges Quay House, 88 staff, 20 clients

2003
91staff, 26 clients, acquired Excellence Through People award

2004
113 staff, successful reassessment to Gold Standard of Excellence Through People award
making Northern Trust the first financial services sector company to achieve the new
standard

2005
Acquired Barings Fund Services business 330 staff, 93 clients

2006
485 staff, 124 clients & 467 Funds

2007
550 staff, 126 clients & 581 Funds. Limerick Office opened in March with 17 staff.

2008
Northern Trust no. 4 ranking by Lipper Fitzrovia

2009 to date -
584 staff, 568 Funds.
Why open a second Ireland office?
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
Original driver for the Limerick office was the industry-wide resourcing challenge

Decided at that stage to build Limerick as a true model of excellence

Market changes have given a broader rationale for the Limerick office
The Limerick Success Story – Local View
In March 2007 following an extensive search
Northern Trust setup an office in Limerick…..
Colbert Train Station
in Limerick provides
train services from all
over the country.
Limerick was chosen for its central
mid-west regional location and its
excellent road, rail and air
transport infrastructure that
ensures the city is well-connected
to other major locations within and
outside of Ireland.
Dublin
Limerick
Northern Trust is a 30
minute drive from
Shannon Airport which
provides flights from all
over the world.
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Our staff in Limerick travel
from 7 counties to work at
Northern Trust, namely
Tipperary, Clare, Cork,
Galway, Offaly, Kerry &
Limerick.
Northern Trust Operational Excellence Pillars
Managing Costs
All liquidity sources are
considered when
developing a strategy
that minimises trading
and opportunity costs
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Multi-Disciplinary
Expertise
Managing
Priorities
Managing
Risk
We strive to develop
precise and
measurable
implementation plans
to reduce execution
costs, minimise market
impact and avoid
unnecessary risk and
operational error
Our role and
experience ensures
our interests are
aligned with those of
our clients
Dedicated team
oversees each
transition from
beginning to end. We
use the same stringent
risk controls that are a
cornerstone of
Northern Trust to
minimise performance
slippage
Operational Excellence – Key Initiatives and Gains
Great service
 Centered
around our
clients
 Solution orientation
 Operational efficiency
 Evolving,
scalable
operating model
 Accuracy Levels
Great
results
Great products
Great people
 Tailored
 Relationship
service
solutions
 Alternative capabilities
 Risk management
focus
managers
offer strategic support
 Technical expertise
 Training
 Hiring
Giving you the freedom to focus on what really matters.
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Our Success Story continues
•Currently NT is the only Financial Services employer of its kind in the Mid-West region.
•Existing Limerick based high calibre managers originate from the local colleges, and came
to Northern from the Dublin International Financial Services Centre and local Limerick related
industries.
•Northern Trust has access to a pool of highly qualified business graduates from the
University of Limerick and from the Limerick Institute of Technology.
•Of the 141 staff in the Limerick office – 44 are graduates from the University of Limerick &
23 are graduates from the Limerick Institute of Technology.
•The Kemmy Business School in the University of Limerick is the largest business school
in Ireland with more than 2,800 students currently enrolled; annually approximately 500
business graduates enter the market place.
•In August 2009, 5 UL Co-Op students completed their 8 month placement with NT – yet
again this co-op programme proved to be a great success for Northern Trust.
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New Environment

Limerick is recognised within Northern Trust as a success story

New industry dynamics:
Market
Greater
cost consciousness
Greater
competition for servicing centres
Flight

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instability
to quality
Limerick is well positioned to offer a solution that meets these challenges
Conclusion
Learning while on our journey ?

Research, research, research

Thinking outside the box

Internal lobbying
Fund Administration
Excellence Award
Irish 2008 KPMG
Financial Services
Excellence Awards
(May 2008)
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Fund Administrator
of the Year
Global Investor Awards for
Investment Excellence
(June 2008)
What worked well ?

Limerick is now seen as a Centre of Excellence
within EMEA

Get it Right First Time Initiative

Feedback from Clients
Awards for Asset Servicing Quality and Leadership
Recognition from our clients and the industry:

Custodian of the Year
European Pensions Awards (July 2009)

Pension Pooling Award of the Year
European Pensions Awards (July 2008)

Pension Pooling Award of the Year
European Pensions Awards (July 2009 and July 2008)

Funds Administration Excellence Award
Irish 2008 KPMG Financial Services Excellence Awards (May 2008)

Outsourcing Deal of the Year – Capital Markets
FSOkx Excellence Awards (June 2009)

Global Pension Fund Custodian of the Year
International Custody and Fund Administration (May 2008)

Fund of Hedge Funds Administrator of the Year

Global Custodian of the Year America
International Custody and Fund Administration (May 2008)

Fund Administrator of the Year Americas
International Custody and Fund Administration (May 2009)

Best Global Custodian – North American Institutional Fund Managers
Global Investor Global Custody Survey (May 2008)

Global Custodian of the Year
Financial Times Pension and Investment Provider Awards (May 2009, 2008)

Best Sole Custodian
Global Investor Global Custody Survey (May 2008)

Ranked #1 Top 100 Largest Asset Managers – Best FX Service Overall
Global Investor Magazine Foreign Exchange Survey (March 2009)

Best in Asia
Global Investor Global Custody Survey (May 2008)

Best Custody Specialist (APAC)

Best in North America
Global Investor Global Custody Survey (May 2008)

Ranked #2 Best Overall FX Service
Global Investor Foreign Exchange Poll (April 2008)

Ranked #1 Best FX overall service Asia-Pacific
Global Investor Foreign Exchange Poll 4th consecutive year (April 2008)

Best Custodian in Asia-Pacific
Asia Asset Management Magazine (January 2008)

Best Investor Services House
Euromoney Magazine “Awards of Excellence” (July 2007)
HFM Week (May 2009)
The Asset 2009 Triple A Transaction Banking Awards (March 2009)

European Private Equity Fund Administrator of the Year
European Venture Capital Journal (January 2009)

European Hedge Fund Administrator of the Year (AUM under US$100bn)
International Custody and Fund Administration (December 2008)

Custodian of the Year: Netherlands
International Custody and Fund Administration (December 2008)

Fund Administrator of the Year
Global Investor Magazine (July 2008)
As at 31 May 2009 (updated when appropriate) Source: Northern Trust
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