Summary of Key Points Core Viewpoint - John W. Rogers Jr. of Ariel Appreciation Fund has made significant reductions in his equity holdings, indicating a strategic shift in response to valuation concerns and macroeconomic factors affecting various sectors. Group 1: Notable Reductions - **Northern Trust Corp (NTRS)**: A reduction of 47.22% with 158,349 shares sold, reflecting potential concerns over fee compression and macro headwinds in wealth management [1]. - **JM Smucker Co (SJM)**: A decrease of 35.16% with 68,878 shares cut, possibly due to input cost inflation and changing consumer preferences [2]. - **Charles Schwab Corp (SCHW)**: A reduction of 33.48% with 112,370 shares sold, linked to rate-related margin pressures and lower trading activity post-peak retail trading enthusiasm [3]. - **Kennametal Inc (KMT)**: A decrease of 30.91% with 267,930 shares trimmed, suggesting caution towards slowing manufacturing demand despite operational improvements [4]. - **CBRE Group Inc – A (CBRE)**: A reduction of 18.12% with 25,409 shares cut, reflecting concerns in the commercial real estate sector due to remote work trends and higher financing costs [5]. Group 2: Strategic Implications - The reductions across these holdings suggest a tightening of the portfolio around higher-conviction names, as the company responds to a shifting macro environment and potential valuation concerns [5].

Group 1 - Northern Trust participated in the Global Financial Services Conference, showcasing its leadership changes and strategic direction [1] - The company has undergone significant leadership transitions, with Dave Fox now serving as Chief Financial Officer and Pete Cherecwich as Chief Operating Officer [1] - The previous year, Jason Tyler represented Northern Trust at the conference, indicating a year of notable changes within the company's executive team [1]

Group 1 - Northern Trust participated in the Global Financial Services Conference, showcasing its leadership changes and strategic direction [1] - The company has appointed new executives, including Dave Fox as Chief Financial Officer and Pete Cherecwich as Chief Operating Officer, indicating a shift in leadership roles [1] - The previous year, Jason Tyler represented Northern Trust at the conference, highlighting the company's evolving management team [1]

Summary of Northern Trust FY Conference Call (September 09, 2025) Company Overview - **Company**: Northern Trust (NasdaqGS: NTRS) - **Event**: FY Conference Call - **Date**: September 09, 2025 Key Points Leadership Changes and Organizational Structure - The Chief Operating Officer (COO) role is newly created, focusing on operational excellence, risk management, and scalable growth [2] - Leadership changes were made a year ago, with new executives now in key positions [1] Financial Performance and Productivity - Northern Trust aims to achieve $200 million in productivity savings in 2025, with 75% of this being sustainable [3] - The company reported a significant improvement in asset servicing margins, with an average fully loaded margin of 470 basis points better in the first half of 2025 compared to 2024 [3] - The expense to trust fee ratio for new business in asset servicing was below 100% in the first half of 2025 [4] Growth Initiatives - The company is focused on scalable growth in asset servicing, with plans to exit underperforming client relationships [4] - A client-centric capability model has been implemented to enhance service delivery and operational efficiency [15] - The "One Northern Trust" initiative aims to integrate services across business lines, enhancing client experience and cross-selling opportunities [19][20] Technology and Automation - Northern Trust is investing in technology and AI to improve productivity and operational efficiency [10][11] - The company has reduced the number of third-party vendors by 10%, streamlining operations [8] - AI is being integrated into processes to enhance automation and reduce manual tasks [11] Wealth Management and Asset Servicing - The Global Family Office (GFO) business has seen an 8% revenue growth in the first half of the year, with significant international wins [38] - The wealth management segment is expanding its suite of alternative products, with $2 billion of alternatives onboarded onto the platform [33] - The asset servicing business is experiencing strong momentum, with 160% of its target achieved in the Americas [49] Financial Metrics and Projections - Average deposits were reported at $122 billion, up 6% [42] - Record net interest income (NII) in Q2 was up 16% year-on-year, with expectations for modest growth in 2025 [44] - The company aims for less than 5% expense growth this year, with a target of 3% organic growth and 3% market growth for a total of 6% revenue growth [53] Strategic Positioning and Market Outlook - Northern Trust is well-positioned in the private capital market, with a 49% growth in assets under administration (AUA) over the last two years [37] - The company has a strong pipeline in wealth management, with GFO on pace to match last year's record performance [48] - Northern Trust maintains a conservative approach to capital management, with a CET1 ratio target of $11 to $12 [55] M&A and Future Strategy - The management team has no current plans to entertain merger discussions, emphasizing the importance of independence and existing growth strategies [58][60] - Acquisitions may play a role in future growth, particularly in asset management, but partnerships and joint ventures are also being considered [64] Additional Insights - The company is focused on maintaining a strong client base and enhancing service delivery through technology and operational improvements [59] - The leadership emphasizes a dynamic financial planning model, allowing for flexibility in response to market conditions [25]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum characteristics, with A being the highest score indicating better chances of outperforming [3] - The Style Scores are categorized into four types: Value Score, Growth Score, Momentum Score, and VGM Score [3][4][5][6] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [3] Growth Score - Evaluates stocks based on projected and historical earnings, sales, and cash flow to identify sustainable growth opportunities [4] Momentum Score - Assesses stocks based on price trends and earnings outlook, helping investors capitalize on upward or downward price movements [5] VGM Score - Combines all three Style Scores to provide a comprehensive rating, highlighting stocks with attractive value, strong growth forecasts, and promising momentum [6] Zacks Rank Integration - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investors in building successful portfolios [7] - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] Stock Selection Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B [9] - Stocks with a 3 (Hold) rank should also have A or B Scores to ensure potential upside [9] Earnings Estimate Revisions - The direction of earnings estimate revisions is crucial in stock selection, as stocks with declining forecasts are likely to see price drops [10] Company Spotlight: Northern Trust Corporation - Northern Trust Corporation, headquartered in Chicago, is a leading provider of wealth management and banking solutions [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong potential [11] - Northern Trust is projected to achieve year-over-year earnings growth of 10.9% for the current fiscal year, with upward revisions in earnings estimates [12]

Core Insights - Absolute Climate and Northern Trust are collaborating to enhance the carbon removal industry by providing independent quality assurance and regulated credit issuance capabilities [1][2][5] - The partnership aims to bridge gaps in carbon markets by aligning independent certification with a regulated credit issuance system, enhancing transparency and trust for project developers and buyers [2][5] Company Overview - Absolute Climate is the first independent quality assurance provider for the carbon removal industry, focusing on third-party certification and governance [1][3] - Northern Trust launched The Northern Trust Carbon Ecosystem in September 2024, offering a digital platform for managing voluntary carbon credit transactions [4][6] Market Impact - The collaboration between Absolute Climate and Northern Trust is designed to separate standard-setting from credit recordation, promoting a more mature Voluntary Carbon Market [5] - Absolute Climate's certification framework is registry-neutral and compatible with various platforms, supporting a wide range of carbon removal methods [3][7] Technological Infrastructure - The Northern Trust Carbon Ecosystem provides automated lifecycle management for digital voluntary carbon credits, ensuring secure and transparent transactions [4][6] - Powered by the Northern Trust Matrix Zenith digital assets platform, the ecosystem enhances confidence and transparency for carbon credit transactions [6]

Core Viewpoint - The U.S. stock market experienced declines on September 3, 2025, due to rising tariff concerns, increased long-term Treasury yields, and inflation fears, leading to investor uncertainty and sell-offs [1] Group 1: Investment Recommendations - In the current market environment, it is suggested that investors consider low-leverage stocks as safer investment options to mitigate risks during market turmoil [2][6] - Recommended stocks include NVIDIA Corp. (NVDA), Sterling Infrastructure (STRL), Northern Trust Corp. (NTRS), Dorman Products (DORM), and Natwest Group (NWG), all of which exhibit low leverage [2][10] Group 2: Understanding Leverage - Leverage refers to the practice of companies borrowing capital to operate and expand, typically through debt financing, which can pose risks if not managed properly [4][5] - A low debt-to-equity ratio is emphasized as a key indicator of financial stability, with a lower ratio indicating improved solvency and reduced financial risk [7][9] Group 3: Company Performance Highlights - NVIDIA Corp. reported a 56% year-over-year revenue increase to $46.7 billion in Q2 2025, with a 61% surge in earnings per share (EPS) [14][15] - Sterling Infrastructure completed an acquisition that positions it for sustained growth, with a projected earnings improvement of 45.9% for 2025 [16][17] - Northern Trust secured a contract with the State of New Mexico Educational Retirement Board, which is expected to enhance its recurring revenues and market presence [18][19] - Dorman Products achieved a 7.6% increase in net sales to $541 million in Q2 2025, with a 23% rise in adjusted EPS [20] - Natwest Group joined a debt financing syndicate for a significant infrastructure project, projecting a 20.1% sales improvement for 2025 [21][22]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying the right ones can be challenging due to associated risks and volatility [1] Group 1: Company Overview - Northern Trust Corporation (NTRS) is highlighted as a recommended growth stock based on its favorable Growth Score and top Zacks Rank [2] - The company has a historical EPS growth rate of 4%, but projected EPS growth for the current year is expected to be 10.9%, surpassing the industry average of 10.2% [4] Group 2: Financial Metrics - Cash flow growth for Northern Trust is currently at 14.4% year-over-year, significantly higher than the industry average of -3.4% [5] - The historical annualized cash flow growth rate over the past 3-5 years is 2.4%, compared to the industry average of 1% [6] Group 3: Earnings Estimates - There has been a positive trend in earnings estimate revisions for Northern Trust, with the Zacks Consensus Estimate for the current year increasing by 2% over the past month [7] - The combination of a Zacks Rank 2 and a Growth Score of B positions Northern Trust favorably for potential outperformance in the market [9]

Core Insights - Zacks Premium offers various tools to enhance investor confidence and market engagement, including daily updates, research reports, and stock screens [1] - The Zacks Style Scores are designed to complement the Zacks Rank, providing additional metrics to help investors identify stocks likely to outperform the market in the short term [2] Zacks Style Scores Overview - Stocks are rated from A to F based on value, growth, and momentum, with A being the highest score indicating a better chance of outperforming the market [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score assesses a company's financial health and future growth potential through earnings and sales projections [5] - The Momentum Score identifies trends in stock prices and earnings estimates to optimize entry points for investments [6] - The VGM Score combines the three Style Scores to highlight stocks with the best overall value, growth, and momentum characteristics [6] Zacks Rank and Style Scores Interaction - The Zacks Rank utilizes earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.75% since 1988, significantly outperforming the S&P 500 [7] - With over 800 top-rated stocks available, the Style Scores assist investors in narrowing down their choices [8] - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the trend of earnings estimate revisions [9][10] Company Spotlight: Northern Trust Corporation - Northern Trust Corporation, based in Chicago, is a prominent provider of wealth management and banking solutions, serving a diverse clientele [11] - The company holds a Zacks Rank of 2 (Buy) and a VGM Score of B, indicating strong potential for growth [11] - Northern Trust is projected to achieve a year-over-year earnings growth of 10.9% for the current fiscal year, with upward revisions in earnings estimates from analysts [12] - The company has an average earnings surprise of +7.6%, making it a compelling option for growth investors [12]

Group 1 - Northern Trust Corporation (NTRS) has outperformed its peers in the Finance sector with a year-to-date performance increase of approximately 22.6%, compared to the sector average gain of 9.1% [4] - The Zacks Consensus Estimate for NTRS' full-year earnings has risen by 7.1% over the past three months, indicating improved analyst sentiment and a more positive earnings outlook [4] - Northern Trust Corporation holds a Zacks Rank of 1 (Strong Buy), reflecting its strong earnings estimates and revisions [3] Group 2 - Northern Trust Corporation is part of the Banks - Major Regional industry, which consists of 10 individual stocks and currently ranks 31 in the Zacks Industry Rank [6] - The Banks - Major Regional industry has seen an average gain of 5.2% so far this year, indicating that NTRS is performing better than its industry peers [6] - Pagaya Technologies Ltd. (PGY) is another Finance stock that has significantly outperformed the sector, with a year-to-date return of 208.6% and a Zacks Rank of 2 (Buy) [5][7]