Northern Trust Deploys Cross-Border Pooling Solution for U.S. ERISA Plans

CHICAGO, June 29 /PRNewswire-FirstCall/ -- Northern Trust today announced the addition of the first pension funds governed by the U.S. Employee Retirement Income Security Act (ERISA) to its cross-border pooling platform. The U.S. pension plans invest in a U.S. limited partnership, along with Canadian employee pension and welfare plans, with approximately $4 billion in North American and European equity investments.

"Northern Trust's innovative pooling platform assists in streamlining operations while minimizing the negative financial impact of international tax drag," said Peter Cherecwich, chief operating officer for Corporate & Institutional Services at Northern Trust. "Plan investors and their beneficiaries continue to receive the favorable withholding tax rates to which they are entitled under double tax treaties, as well as the benefits of more efficient and effective investment operations at the fund."

The participation of U.S. corporate ERISA plans establishes another industry milestone by Northern Trust, which developed the first custody and fund accounting platform for cross-border pooling to help multinationals achieve efficient management and appropriate risk control for their global pension plans.

"We are excited to work with U.S. pension clients to set a new standard for ERISA plan investment management efficiencies and operations," said Marty Campbell, North American Cross-Border Pooling Product Manager for Northern Trust. "ERISA plans face significant regulatory oversight, and Northern Trust's pooling platform makes it easier for our clients to meet that challenge. In addition, our product leadership in this area will assist multinationals in offering a consistent investment strategy across plans in the U.S. and outside the U.S., while achieving efficient investment operations which, in turn, will provide significant benefits to pension beneficiaries and plan sponsors."

Northern Trust has a U.S. patent pending for innovations in fund administration and custody which allow multinational corporations and asset managers to pool pension assets from multiple country plans while utilizing the tax treaty rates available for retirement plan investors. In addition to U.S. limited partnerships, "tax-transparent" fund structures on Northern Trust's pooling platform are domiciled in Ireland, Luxembourg or The Netherlands. The U.S. Department of Labor issued an advisory opinion to Northern Trust in 2008 clarifying that ERISA plans can use pooled offshore vehicles administered in the manner described by Northern Trust without violating certain indicia of ownership requirements of ERISA.

Following up on its Department of Labor advisory opinion, Northern Trust has made significant enhancements to its pooling platform including:

    --  Form 5500 (Annual Return/Report of Employee Benefit Plan) supplemental
        reports are available for funds with ERISA investors.
    --  A special tax service has been confirmed for an ERISA plan investing in
        Swiss equities via a U.S. limited partnership.

    --  Partnership tax information is available for our clients' U.S. tax
        preparers.

Northern Trust is a pioneer in cross-border pooling and was the first to fully support tax-transparent funds, which have been created to commingle the assets of multinational pension plans with multiple withholding tax rates. As of March 31, 2009 Northern Trust had more than $30 billion in tax-transparent pooling assets under custody for some of the most sophisticated multinational companies and investment managers around the globe. The U.S. limited partnership, launched on May 1, added $4 billion in assets under custody.

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 financial holding company based in Chicago, has a network of offices in 18 U.S. states and international offices in 15 locations in North America, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2009, Northern Trust had assets under custody of US$2.8 trillion, and assets under investment management of US$522.3 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.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S., incorporated with limited liability in the U.S.

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        (Guernsey) Limited, Northern Trust Fiduciary Company (Guernsey) Limited
        and Northern Trust International Fund Administration Services (Guernsey)
        Limited are licensed by the Guernsey Financial Services Commission.
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        Northern Trust Fiduciary Services (Jersey) Limited are regulated by the
        Jersey Financial Services Commission.
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        Limited and Northern Trust Fiduciary Services (Ireland) Limited are
        regulated by the Financial Regulator.
    --  Northern Trust Global Services Limited has a Netherlands Branch which is
        authorized and regulated in the Netherlands by De Nederlandsche Bank.
    --  Northern Trust Global Services Limited has a Luxembourg Branch which is
        authorized and regulated by the Commission de Surveillance du Secteur
        Financier (CSSF).
    --  Northern Trust Luxembourg Management Company S.A. is regulated by the
        Commission de Surveillance du Secteur Financier (CSSF).
    --  Northern Trust Global Services Limited operates in Abu Dhabi as a
        Representative Office, License number 13/238/2008 which is authorized
        and regulated by the Central Bank of the United Arab Emirates.
    --  The Northern Trust Company operates in Canada as The Northern Trust
        Company, Canada Branch which is an authorized foreign bank branch under
        the Bank Act (Canada).  Trustee related services in Canada are provided
        by the wholly owned subsidiary The Northern Trust Company, Canada, an
        authorized trust company under the Trust & Loans Companies Act
        (Canada).  Deposits with The Northern Trust Company and its affiliates
        and subsidiaries are not insured by the Canada Deposit Insurance
        Corporation.
    --  The Northern Trust Company operates in Australia as a foreign authorized
        deposit-taking institution (foreign ADI) and is regulated by the
        Australian Prudential Regulation Authority.
    --  The Northern Trust Company of Hong Kong Limited is a securities company
        regulated by the Securities and Futures Commission.
    --  The Northern Trust Company has a Singapore Branch which is a foreign
        wholesale bank regulated by the Monetary Authority of Singapore.
    --  The Northern Trust Company operates in China as a Representative Office
        and is regulated by the China Banking Regulatory Commission.



    --  Northern Trust Global Investments Japan, K.K. is regulated by the Japan
        Financial Services Agency.

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SOURCE Northern Trust Corporation