Northern Trust Focus Funds Achieve 5-Year Milestone

Northern Trust Focus Funds, the target date retirement solution created for defined contribution (DC) plans by Northern Trust Asset Management, mark their five-year anniversary today. Started with a $350 million seed investment in October 2009, the funds have grown to more than $7 billion in assets under management.

“As target date funds became a cornerstone of DC plans over the past five years, the Northern Trust Focus Funds have proven successful by offering efficient, globally diversified investments for participants at each stage of the retirement planning lifecycle,” said Jason Tyler, Global Head of Client Solutions at Northern Trust Asset Management. “Defined contribution plans are a strategic focus for Northern Trust and we believe target date funds serve a critical role in driving successful outcomes for participants in these plans.”

The Northern Trust Focus Funds are offered in five-year increments for retirement dates through 2055, with a 2060 target date portfolio to be added later this year. Each fund has globally diversified equity exposure, inflation sensitivity and an emphasis on downside protection, with a “glidepath” that systematically adapts portfolio allocations as the target date nears.

“For defined contribution plan sponsors, it’s all about helping participants achieve more successful outcomes at retirement,” said Jim Danaher, Managing Director of Defined Contribution Solutions at Northern Trust Asset Management. “Our target date funds feature an adaptive, forward-looking glidepath that helps plan sponsors better prepare participants for the world that will exist at their retirement. To support our funds, we consult with clients to deliver communications that help plan participants understand how this comprehensive, multi-asset class approach can help them meet their retirement goals.”

The funds have realized significant inflows from new investors, representing 75 percent of the growth in assets, across more than three quarters of a million DC plan participants. The funds are a flagship product of Defined Contribution Solutions, one of the fastest growing segments of Northern Trust Asset Management. As of June 30, 2014, total DC assets under management approached $115 billion, up from $36 billion when the Focus Funds launched in 2009.

Northern Trust is among the top managers of 401(k) plan assets in the U.S. In addition, The Northern Trust Company has nearly $270 billion in DC assets under custody as of September 30, 2014. Its global custody unit works closely with the asset management team to provide comprehensive integrated solutions for DC plans, including multi-manager unitization, Defined Benefit-Defined Contribution manager integration, performance measurement and cross-border pooling.

Asset Management at Northern Trust comprises Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc. and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of asset servicing, fund administration, asset management, fiduciary, and banking solutions for corporations, institutions, families, and individuals worldwide. Chicago-based Northern Trust has offices in 19 states, Washington, D.C., and 19 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2014, Northern Trust had assets under custody of US$6 trillion, and assets under investment management of US$924.4 billion. For 125 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com and follow us on Twitter @NorthernTrust.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Global legal and regulatory information can be found at http://www.northerntrust.com/disclosures.