Northern Trust Reports U.S. Institutional Investment Plan Sponsors Experience Significant...

Northern Trust Reports U.S. Institutional Investment Plan Sponsors Experience
Significant Losses in Third Quarter

CHICAGO, Oct. 23 /PRNewswire-FirstCall/ -- Northern Trust announced today
that most U.S. institutional investment plan sponsors reported a fourth
consecutive quarter of negative results for the period ending September 30,
2008, according to data in the Northern Trust Universe. The Northern Trust
Universe represents more than 300 institutional investment plans, with a
combined asset value of approximately $660 billion, which subscribe to
Northern Trust performance measurement services.
"All plan types suffered significantly from volatile and declining markets
in the third quarter, with Corporate plans performing especially poorly
relative to their assigned benchmarks," said William Frieske, performance
consultant, Northern Trust Investment Risk & Analytical Services.
Corporate plans posted a median return of -8.8% for the third quarter
while Public Fund and Foundation & Endowment plans reported median returns of
-9.0% and -8.5%, respectively, for the quarter. Corporate pension plans had
the lowest one-year performance of all three segments, with a median return of
-15.5%, compared to -14.8% for Public Funds and -13.2% for Foundation &
Endowment plans.
"In addition to extreme market volatility, plans in all segments were
hampered by the underperformance of fixed income programs," Frieske said. "The
median return for Total Fixed Income Programs in the Northern Trust Universe
was -2.8% in the third quarter, compared to a -0.5% return for the Lehman
Aggregate Bond Index. Two primary factors -- duration and credit exposure --
were responsible for fixed income program underperformance relative to the
bond market index. As a result, Corporate pension plans lagged their assigned
performance benchmarks by the widest margin in at least a decade."
Four consecutive quarters of negative performance has weighed heavily on
longer-term numbers. Three- and five-year returns remain positive, however:
3-Year 5-Year
Corporate pension plans 2.5% 6.9%
Public Funds 2.6% 6.8%
Foundations & Endowments 2.8% 7.1%

As a part of its client focus philosophy, Northern Trust has provided risk
and performance services for over three decades. Northern Trust's Investment
Risk & Analytical Services capabilities include risk monitoring and
measurement, performance evaluation and other specialty services, with
continuing investment in research and client-focused product development.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of
investment management, asset and fund administration, fiduciary and banking
solutions for corporations, institutions and affluent individuals worldwide.
Northern Trust, a financial holding company based in Chicago, has a growing
network of 85 offices in 18 U.S. states and has international offices in 15
locations in North America, Europe, the Middle East and the Asia-Pacific
region. As of September 30, 2008, Northern Trust had assets under custody of
US$3.5 trillion, and assets under investment management of US$652.4 billion.
Northern Trust, founded in 1889, has earned distinction as an industry leader
in combining exceptional service and expertise with innovative products and
technology. For more information, visit http://www.northerntrust.com.
SOURCE Northern Trust

John O'Connell, Vice President, +1-312-444-2388, or Kathleen Fitzgerald,
+1-312-444-3094, both of Northern Trust