Core Insights - Canadian pension plans demonstrated resilience with a median return of 0.2% for Q4 2025 and a total return of 4.4% for the year, as reported by the Northern Trust Canada Universe [1][2] Economic Environment - The fourth quarter of 2025 experienced market volatility due to geopolitical tensions, trade policy issues, and a U.S. government shutdown lasting 43 days, yet major economies showed reasonable stability [1][6] - The U.S. Federal Reserve cut its overnight interest rate twice during the quarter, while the Bank of Canada cut its benchmark rate in October and maintained it in December, indicating improvements in the labor market [1][7] Market Performance - Canadian equities, as measured by the S&P/TSX Composite Index, rose 6.2% for the quarter and 31.7% for the year, with the Materials sector leading at a remarkable 100.6% return [5] - U.S. equities, represented by the S&P 500 Index, gained 1.1% in CAD for the quarter and 12.4% for the year, with the Health Care and Communication Services sectors showing strong performance [5] - International developed markets, measured by the MSCI EAFE Index, returned 3.4% in CAD for the quarter and 25.7% for the year, with Financials and Utilities being the strongest performers [5] Fixed Income Market - The Canadian fixed income market, as per the FTSE Canada Universe Bond Index, reported a modest decline for the quarter, with short-term bonds showing slight gains while mid and long-term bonds declined [9] Global Economic Indicators - Emerging markets performed well despite global uncertainties, with the People's Bank of China maintaining its loan prime rates amid weak economic data [8]

Group 1 - Northern Trust Corporation (NASDAQ:NTRS) is one of the largest publicly traded asset managers, with TD Cowen raising its price target to $175 from $165 while maintaining a Buy rating [1] - The company's fourth-quarter 2025 core EPS was reported at $2.62, surpassing market expectations due to increased pre-tax pre-provision income and lower provision expenditure, with total revenue reaching $2.14 billion against an expected $2.06 billion [1] - Northern Trust's fee businesses are gaining traction, and the company has demonstrated effective expenditure management, contributing to a favorable forecast for 2026 [2] Group 2 - Northern Trust has upgraded its medium-term pre-tax margin and return on equity (ROE) projections, indicating confidence in its long-term profitability [2] - The company operates through subsidiaries, including The Northern Trust Company, providing wealth management, asset servicing, asset management, and banking solutions to various clients [3]

Core Insights - Direct indexing is identified as a platform that enhances business growth and client relationships for financial advisors, moving beyond its traditional role in tax-loss harvesting [1] - Advisors who fully integrate direct indexing report improved client retention and increased wallet share, with 88% noting stronger client retention and 87% experiencing increased wallet share [1] Group 1: Client Engagement and Integration - Financial advisors who have achieved "Superuser" status in direct indexing have followed a structured journey involving education, assessment, and testing [1] - Common traits of clients who benefit most from direct indexing include investable assets typically ranging from $250K to $500K+, taxable accounts, and a desire for personalized services [1] - Superusers rated the difficulty of integrating direct indexing at 2.4 out of 5, with 45% indicating it requires only 0-5 hours per month [1] Group 2: Value Proposition of Direct Indexing - Personalization is becoming the new standard, with advisors and clients valuing direct indexing for portfolio customization, risk management, transparency, and goal planning [1] - Direct indexing facilitates deeper client engagement and provides a competitive advantage, with 93% of Superusers stating it enables more meaningful planning conversations [1] - The research indicates that direct indexing is evolving into a transformational platform for both advisors and clients, enhancing the overall client experience [1] Group 3: Business Growth and Future Expectations - The integration of direct indexing is linked to significant business growth, as evidenced by the high retention and wallet share reported by Superusers [1] - Advisors who adopt direct indexing are positioning themselves for long-term success, as it is becoming a default expectation among wealthier clients [1] - Northern Trust Asset Management conducted comprehensive surveys in 2024 and 2025 to analyze direct indexing adoption among financial advisors, focusing on higher-AUM firms and experienced advisors [1]

Core Insights - Northern Trust Asset Management has appointed Gijsbert de Lange as chief innovation strategist to enhance innovation within its investment team [1][3] - The firm aims to integrate advanced AI technologies and cutting-edge research into its investment strategies, including equity, fixed income, and multi-asset approaches [2][3] - This appointment reflects Northern Trust's commitment to innovation as a key driver of its investment philosophy and client solutions [3] Company Overview - Northern Trust Asset Management manages US$1.4 trillion in assets as of September 30, 2025, and focuses on helping investors navigate changing market environments [5] - The firm has recently launched innovative investment solutions, including new distributing ladder ETFs and tax-aware long/short equity strategies [3] - Northern Trust Corporation, founded in 1889, has a global presence with assets under custody/administration of US$18.2 trillion and assets under management of US$1.8 trillion as of September 30, 2025 [7]

to Participate in BofA Securities 2026 Financial Services Conference on February 10CHICAGO--([BUSINESS WIRE])--Northern Trust will participate in the BofA Securities 2026 Financial Services Conference in Miami Beach on Tuesday, February 10....## Northern Trust Corporation Reports Fourth Quarter 2025 Financial ResultsCHICAGO--([BUSINESS WIRE])--Northern Trust Corporation has released its fourth quarter 2025 financial results. Results can be found at https://www.northerntrust.com/about-us/investor-relations a ...

Core Viewpoint - Northern Trust has appointed Katie Pries as the Country Executive for Northern Trust Asset Servicing in Canada, highlighting the strategic importance of the Canadian market for the company [1][5]. Group 1: Leadership and Management - Katie Pries will oversee the growth and management of Northern Trust's business in Canada, including client and regulatory relationships, and will serve on the Canadian Management Committee [2]. - Pries has a strong background, having previously served as president and CEO of Northern Trust Canada and in various senior roles since joining the company in 1989 [3][4]. Group 2: Market Importance - Canada is a key market for Northern Trust, with over 150 clients across 10 provinces and three territories, and the company has over 30 years of experience in providing asset servicing solutions tailored to institutional investors [5]. - Northern Trust Canada leverages its deep understanding of the local market to offer valuable insights and strategic perspectives to its clients [5]. Group 3: Company Overview - Northern Trust Corporation is a leading provider of wealth management, asset servicing, asset management, and banking services, with a global presence and significant assets under custody/administration of US$18.7 trillion and assets under management of US$1.8 trillion as of December 31, 2025 [6].

Core Insights - The fixed income ETF market experienced significant growth in 2025, with major players like BlackRock and Vanguard leading the charge, while Northern Trust emerged as a top contender [1] - A total of 953 active ETF launches occurred, resulting in $476 billion in flows, with 418 of these focused on discretionary and systematic fixed income [1] - The U.S. Federal Reserve's three consecutive rate cuts at the end of 2025 prompted fixed income investors to seek additional yield through diversification [1] Company Highlights - BlackRock, through its iShares brand, topped the fixed income launch leaderboard in 2025, introducing new actively managed funds such as the iShares Mortgage-Backed Securities Active ETF (MBBA) and iShares Securitized Income Active ETF (SECU) [1] - Northern Trust launched 11 fixed income ETFs in August 2025, including the Northern Trust Short-Term Tax-Exempt Bond ETF (TAXS), Northern Trust Intermediate Tax-Exempt Bond ETF (TAXI), and Northern Trust Tax-Exempt Bond ETF (TAXT), catering to various segments of the yield curve [1] - Vanguard introduced the Vanguard Multi-Sector Income Bond ETF (VGMS), which provides diversified exposure to corporate and international bonds, enhancing yield opportunities for investors [1] Market Trends - Multi-sector income strategies saw substantial growth, doubling in size to surpass $50 billion in assets under management (AUM) [1] - The iShares Flexible Income Active ETF (BINC) became a significant player in the multi-income market, offering flexibility in a changing macro environment with a net expense ratio of 40 basis points [1] - The active/passive barbell approach adopted by advisors has contributed to the success of multi-sector income funds [1]

Core Viewpoint - Northern Trust Corporation (NTRS) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on an upward trend in earnings estimates [1][3]. Earnings Estimates and Ratings - The Zacks rating system focuses on changes in earnings estimates, which are tracked through the Zacks Consensus Estimate from sell-side analysts [2]. - The upgrade reflects a favorable earnings outlook for Northern Trust, which could positively influence its stock price [3][5]. Impact of Earnings Estimates on Stock Prices - There is a strong correlation between changes in earnings estimates and near-term stock price movements, influenced by institutional investors who adjust their valuations based on these estimates [4]. - Rising earnings estimates suggest an improvement in Northern Trust's underlying business, which should lead to increased investor interest and a higher stock price [5]. Historical Performance of Zacks Rank - The Zacks Rank system has a proven track record, with Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Specific Earnings Estimates for Northern Trust - For the fiscal year ending December 2026, Northern Trust is expected to earn $9.79 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 4.4% over the past three months [8].

Core Viewpoint - Northern Trust Corporation (NTRS) is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating potential for significant near-term price appreciation [2][3][11]. Company Performance - NTRS shares have increased by 2.1% over the past week, outperforming the Zacks Banks - Major Regional industry, which rose by 0.96% during the same period [5]. - Over the last quarter, NTRS shares have risen by 15.51%, and over the past year, they have increased by 34%, while the S&P 500 has only moved 2.92% and 14.29%, respectively [6]. - The average 20-day trading volume for NTRS is 852,398 shares, which is a bullish indicator when combined with rising stock prices [7]. Earnings Outlook - In the past two months, 7 earnings estimates for NTRS have been revised upwards, with no downward revisions, leading to an increase in the consensus estimate from $9.36 to $9.79 [9]. - For the next fiscal year, 4 estimates have also moved upwards, with no downward revisions noted [9].

Core Viewpoint - Northern Trust Corporation will participate in the BofA Securities 2026 Financial Services Conference, highlighting its ongoing engagement with the financial services community [1]. Company Overview - Northern Trust Corporation is a prominent provider of wealth management, asset servicing, asset management, and banking services, catering to corporations, institutions, affluent families, and individuals [3]. - The company was founded in Chicago in 1889 and has a global presence with offices in 24 U.S. states, Washington, D.C., and 22 locations across Canada, Europe, the Middle East, and the Asia-Pacific region [3]. - As of December 31, 2025, Northern Trust had assets under custody/administration amounting to US$18.7 trillion and assets under management totaling US$1.8 trillion [3]. - Northern Trust has established a reputation for exceptional service, financial expertise, integrity, and innovation over its 135 years of operation [3].