CHICAGO, Sept. 22 /PRNewswire-FirstCall/ -- Northern Trust Corporation
today outlined the exposure of the corporation and its clients to Lehman
Brothers Holdings, Inc. ("Lehman").
"Given current market volatility, we are taking this opportunity to inform
clients and shareholders of the holdings of funds managed by Northern Trust in
securities issued by Lehman Brothers," said Frederick H. Waddell, President
and Chief Executive Officer. "A very limited subset of commingled funds
managed by Northern Trust on behalf of clients, almost exclusively
institutional in nature, has exposure to Lehman. These investments in Lehman
securities represent one tenth of 1 percent of total assets under management."
Northern Trust reaffirmed that the corporation has no outstanding loans to
Lehman, and that Northern Trust does not hold any Lehman securities in its
balance sheet investment portfolio.
Northern Trust's money market mutual funds, known as "2a-7" funds, used
primarily by individual and institutional investors, also have no exposure to
Lehman. The funds continue to invest in high quality, short duration
securities, and fund shareholders continue to have full access to their
investments.
Regarding exposure to Lehman equity securities, client funds managed by
Northern Trust held approximately 7 million shares of common stock at the time
of its bankruptcy filing. These funds were managed primarily under investment
mandates designed to replicate indices that included Lehman as a component.
Subsequent to Lehman's bankruptcy and removal from these indices, this
position has been reduced to less than 300,000 shares. In total, Northern
Trust manages $236 billion in index funds.
Commingled fixed income funds, managed almost exclusively on behalf of
institutional clients, hold approximately $821 million in Lehman short- and
long-term fixed income securities. These represent less than two-tenths of 1
percent of total short- and long-term fixed income investments managed by
Northern Trust on behalf of clients.
"We continue to work closely with our clients to explore options to help
them navigate today's challenging markets," Waddell said.
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 multibank 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 June 30, 2008, Northern Trust had assets under custody of US$4.0
trillion, and assets under investment management of US$751.4 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 Corporation
Media, John O'Connell, Vice President, +1-312-444-2388, or Investor Relations,
Beverly Fleming, Senior Vice President, +1-312-444-7811, both of Northern
Trust Corporation
