Nov. 21, 2011, 11:48 a.m. EST
Article from Market Watch
CHICAGO, Nov 21, 2011 (BUSINESS WIRE) -- Northern Trust announced today that it has expanded its after-tax performance measurement capabilities to include the ability to model U.S. state tax liabilities. This enhancement allows U.S. clients to evaluate their portfolio or investment program returns after state, federal, and alternative minimum taxes (AMT), giving them a more thorough view of their portfolio performance on an after-tax basis and allowing them to further customize their returns to the state level.
U.S. tax obligations, particularly those that apply to municipal bonds, are complex and vary based on the state domicile of the investor. Northern Trust's performance tools are able to capture this complexity and model the impact of U.S. federal and state tax laws on portfolio returns, allowing clients to model tax liabilities at a granular level. In addition, Northern Trust's performance calculations can now take into account the nature of the securities and investment activity of the portfolio, as well as the U.S. state location and tax obligations of the investor.
"Given the increasing complexity of the U.S. tax code, the ability to evaluate state tax obligations on investment portfolios remains important to individuals, asset owners and asset managers," said Louisa Taylor, Director of Family Office Services, Wealth Management Group, at Northern Trust. "These enhancements build on our delivery of performance after US Federal Taxes and showcase our commitment to helping our clients understand their real returns."
"World-wide, we are seeing growth in tax-aware investment strategies," said Paul d'Ouville, Global Head of Product Management at Northern Trust. "Northern Trust will continue enhancing our services to address these needs in other countries -- in particular, we are seeing substantial interest in assessing the impact of taxes upon investment returns in Australia."
Northern Trust has provided risk and performance services to institutional asset servicing clients for more than 30 years. Capabilities delivered through the Investment Risk & Analytical Services group include risk monitoring, performance evaluation and compliance services.
About Northern Trust
Northern Trust Corporation NTRS -0.77% 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. As of September 30, 2011, Northern Trust had assets under custody of US$4.2 trillion, and assets under investment management of US$644.2 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com .
Northern Trust Corporation
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John O'Connell, +1 312-444-2388
John_O'Connell@ntrs.com
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http://www.northerntrust.com
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