Leading global financial franchise Northern Trust Corp (NTRS, Financial), also declined in the quarter. Consistent with broadertrends in the banking sector, NTRS clients exhibited meaningful cash sorting behavior as they withdrew funds in search of higher deposit yields. This resulted in lower than anticipated wealth management fees, partially offset by increased costs for short-term funding as well as deposits. While net interest margin and net interest income will likely remain under pressure near-term, we believe NTRS remains well positioned. The company is a trusted name in a favorable industry with a diversified product offering and high barriers to entry. We believe Northern’s 130-year track record highlights its strength and stability of navigating macroeconomic volatility with a conservative, operating approach.
From John Rogers (Trades, Portfolio)' Ariel Fund second-quarter 2023 commentary.
