LONDON - Northern Trust Corporation (NASDAQ:NTRS) has been chosen by True Potential, a UK-based wealth management firm, to provide asset servicing for approximately £26 billion (around US$33 billion) of assets under management. This collaboration, announced on January 17, 2024, will see Northern Trust delivering fund accounting, custody, depositary, and transfer agency services to True Potential's UK-domiciled open-ended investment company fund range.
True Potential, established in 2007 and headquartered in Newcastle, is a significant player in the UK wealth management sector, offering investment products and technology to over 1.4 million private clients. Their offerings include the True Potential Wealth Strategy Funds and True Potential Portfolios, which are aimed at simplifying wealth management for clients. The firm distributes these products through a combination of expert financial advice and technology, utilizing a 'hybrid advice' model.
Louise Blagbrough, head of Strategic Partnerships and Projects at True Potential, highlighted Northern Trust's seamless integration with their technology and client service focus as key factors in their selection. The partnership aims to support True Potential's growth and drive positive change in the wealth management industry, while also empowering financial advisers and clients.
Laurence Everitt, head of Global Fund Services, UK at Northern Trust, expressed enthusiasm for the partnership, emphasizing Northern Trust's commitment to innovative investor servicing and operational efficiency. Northern Trust's technology platform is designed to meet clients' needs for speed, agility, and insight, and is well-positioned to adapt to future innovation and growth demands.
Northern Trust's Global Fund Services business offers a suite of services to global investment managers, including fund administration, global custody, investment operations outsourcing, and data solutions, catering to a wide range of investment strategies and asset classes.
This partnership is based on a press release statement and underscores Northern Trust's ongoing strategy to expand its asset servicing solutions to accommodate the evolving needs of wealth management firms like True Potential. Northern Trust, with a history dating back to 1889, has a significant global footprint and a longstanding reputation for service excellence and innovation in the financial industry. As of December 31, 2023, Northern Trust had assets under custody/administration totaling US$15.4 trillion and assets under management of US$1.4 trillion.
InvestingPro Insights
In light of Northern Trust Corporation's recent partnership with True Potential, it's beneficial to consider the financial health and performance metrics that could impact their capacity to deliver on new service agreements. According to real-time data from InvestingPro, Northern Trust Corporation has a robust market capitalization of $14.24B, showcasing its significant presence in the financial industry.
InvestingPro Tips highlight Northern Trust's impressive gross profit margins and its ability to maintain dividend payments for 26 consecutive years, which may instill confidence in their stability and reliability as a service provider. The company's strong return over the last three months, with a 25.98% total price return, could suggest a positive market sentiment that aligns with the announcement of new partnerships.
Moreover, Northern Trust is trading at a low P/E ratio relative to near-term earnings growth, indicating potential value for investors. With a P/E Ratio (Adjusted) of 23.17 as of the last twelve months ending Q3 2023 and a PEG Ratio of 0.42, the company may be positioned for future growth, which could further support its initiatives in expanding asset servicing solutions.
For those interested in deeper financial analysis and additional insights, InvestingPro offers more tips that can be accessed at https://www.investing.com/pro/NTRS. Currently, there are over five additional tips available, providing a comprehensive outlook on Northern Trust's financial performance and future prospects.
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