Northern Trust Asset Management Announces Updates to its Money Market Fund Line Up in Europe

Northern Trust Asset Management today announced it will migrate the Sterling and US Dollar sub-funds of its Irish UCITS money market funds, Northern Trust Global Funds plc, from constant net asset value (CNAV) to low volatility net asset value (LVNAV), as at close of business on 30 November 2018, subject to regulatory approval. The move rounds out the firm’s European money market fund offering, which includes The Sterling and The US Dollar funds and the short-term variable net asset value (VNAV) The Euro Liquidity Fund. The product line up will provide investors with access to fund structures within the construct of the new European Money Market Reform (European MMFR) regulation consistent with the funds current investment approach.

"As one of the world’s largest cash managers, we are experienced in helping investors navigate changing market environments – and in delivering investment solutions to meet their needs,” said Peter Yi, Northern Trust Asset Management’s director of cash management. Responsible for more than US$236 billion in cash management worldwide as of 30 June 2018, Northern Trust has a history at the leading edge of cash solutions: it was among the first asset managers to introduce a VNAV money market fund, the Euro Liquidity Fund, for European investors in 2014. "With our existing VNAV offering, and the transition of our US and Sterling funds to an LVNAV structure, we’re confident we can continue to meet investors’ evolving liquidity needs and preferences – today and in the future.”

"As we enter a new era for European Money Market funds, it is essential that we continue to provide our clients with flexible, transparent and competitive investment opportunities. Our strategies are well-positioned to do just that,” said Marie Dzanis, head of Northern Trust Asset Management, Europe, Middle East and Africa.

The European MMFR, which requires money market funds offered into Europe to be compliant by 21 January 2019, will see money market funds categorized into two types of money market funds: short-term money market funds and standard money market funds. As such, Northern Trust Asset Management will migrate two of its CNAV funds – The Sterling Fund and The US Dollar – to short-term LVNAV structures at the close of business on 30 November 2018. The transition will appear seamless to investors.

Money Market Fund Line Up (effective 30 November 2018)

According to European MMFR, funds are not required to be rated. However, for full transparency, Northern Trust Asset Management money market funds will continue to be rated by leading credit agencies.

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About Northern Trust Asset Management

Northern Trust Asset Management is a leading global asset management firm serving institutional and individual investors in 29 countries. Our robust investment capabilities span all markets and asset classes, from passive and risk-factor to fundamental active, multi-asset class and multi-manager strategies, delivered in multiple vehicles. As of September 30, 2018, assets under management were $971.6 billion. For more information, please visit our website or follow us on Twitter @NTInvest.

Northern Trust Asset Management 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 wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has offices in the United States in 19 states and Washington, D.C., and 23 international locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of September 30, 2018, Northern Trust had assets under custody/administration of US$10.8 trillion, and assets under management of US$1.1 trillion. For more than 125 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Visit northerntrust.com or 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 https://www.northerntrust.com/disclosures.

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