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Money Management

Northern Trust’s AUM holds steady in quarter, up 16% for the year

Northern Trust Corp. reported $1.166 trillion in assets under management as of March 31, relatively flat from $1.161 trillion at the end of the fourth quarter but up 16% from a year earlier, said S. Biff Bowman, executive vice president and chief financial officer, Tuesday in the company's quarterly earnings call.

Northern Trust reported $878.3 billion in corporate and institutional assets under management as of March 31, up 1% from Dec. 31 and up 19% from a year earlier. Wealth management AUM totaled $287.4 billion, down 1% from the previous quarter but up 10% from March 31, 2017.

Northern Trust does not report net flows.

First-quarter investment management fees totaled $109.7 million, up 3% from the previous quarter and 17% above the year-over-year quarter.

The company's assets under custody as of March 31 totaled $8.112 trillion, slightly above the $8.085 trillion three month earlier and up 14% from the end of the first quarter 2017. Total assets under custody and administration were $10.786 trillion, up 1% from Dec. 31 and 21% higher than March 31, 2017.

Custody and fund administration fees of $373.9 million as of March 31 were up 1% from the fourth quarter and up 22% from the first quarter 2017.

Mr. Bowman said investment and custody asset increases year-over-year were driven by favorable markets and foreign-exchange rate movements, as well as new business. Administration assets were also boosted by the February 2017 acquisition of UBS Asset Management's Luxembourg- and Swiss-based fund administration business, adding $437 billion in assets under administration.

The relatively flat quarterly assets under management, custody and administration were the result of market declines that were offset by inflows, Mr. Bowman said.

First-quarter overall revenue at Northern Trust was $1.485 billion, up 3% from the previous quarter and 15% higher than the year-earlier quarter. Net income of $381.6 million was up 7% from the fourth quarter and up 38% from the first quarter of 2017.