Oct. 27, 2009 (PR Newswire) --

CHICAGO, Oct. 27 /PRNewswire-FirstCall/ -- Northern Trust announced today it has introduced a new pre-trade analysis report for Transition Management that is designed to help institutional investors evaluate the potential costs and risks associated with a decision to switch investment managers or change asset allocation policy.

"In recent years, we have had an excellent track record minimizing our clients' risk when they have transitioned assets in a very volatile environment," said Grant Johnsey, Head of Transition Management-North America for Northern Trust Global Investments, the asset management arm of Northern Trust. "Our innovative pre-trade report captures the elements of our risk management process, setting a new standard for transparency and also providing clients with a roadmap for a completed transition to a new investment manager, strategy or allocation."

Northern Trust's pre-trade report includes a number of market-leading risk metrics, including 20-day performance comparisons of target and legacy portfolios, detailed industry sector analysis, a corporate earnings announcement calendar for relevant securities, and a summary of trades by time zone for global portfolios. The reports also detail the full cost of a transition, including explicit costs such as fees, taxes and trading commissions, as well as implicit costs like bid-offer spreads, market impact, and opportunity cost as a security price moves over time.

"While clients sometimes select a transition manager based on the lowest estimated costs, we believe the goal of a pre-trade report should be to provide a reliable assessment of the risks and costs associated with a transition event," said Ben Jenkins, a senior strategist in Northern Trust Transition Management. "Our new report provides a more comprehensive view of the potential risks when trading assets, enabling us to deliver a customized solution that seeks to achieve the target portfolio exposure on a timely basis."

Northern Trust has provided transition management services since 1987. Over the past three years, Northern Trust Transition Management has managed more than 1,200 transition events, with a total value in excess of U.S.$160 billion.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region.