Northern Trust Corporation (NASDAQ:NTRS) Q2 2020 Earnings Conference Call - Final Transcript
Jul 22, 2020 • 10:00 am ET
In this operating environment, we have adapted how we serve and communicate with our clients, as well as how we prospect for new clients.
In each of our businesses, this has resulted in engaging with clients and prospects more than ever, and provided an opportunity for us to deepen our relationships. In the second quarter, our asset management business won several new mandates across different products and strategies including receiving significant new inflows into our global money market fund complex, which we've strategically positioned over time. In Wealth Management, we launched a new Navigate the Now digital marketing campaign, which is showing early promise and introduced the Northern Trust Institute, a research center with 175 faculty, covering 34 specialty areas designed to harness our expertise and experience, and elevate our advice by bringing predictive insights to our clients.
In Asset Servicing, we experienced a modest deferral in implementations and new fund launches in the quarter. However, new business continues to be healthy as prospects become more comfortable conducting searches and due diligence, virtually in the current environment. As Jason will discuss the low interest rate environment will continue to create meaningful headwinds and pressure our financial performance. Through this environment, we will stay focused on our mission of being our clients' most trusted financial partner and on generating organic growth and gains in productivity. I feel it's also important to note that at Northern Trust, we have always been mindful that we have a duty to serve our communities as well.
Recent attention to the civil, social and economic inequities Black Americans faced every day has provided us with an opportunity to reflect further on this service and the role we play to address inequity in our communities. Towards this end, we have committed $20 million over the next 5 years to reduce the economic opportunity gap. This opportunity gap encompasses all the obstacles created by race, ethnicity, gender, environmental and socioeconomic status that too often keep people from achieving their full potential.
Our goal is to help shrink this gap, by providing increased access to essential human needs, food, housing healthcare and education so that each person may grow and thrive personally, professionally and financially. Finally, I want to express my sincere appreciation for our staff whose commitment, excellence and professionalism throughout these extraordinary times has been exceptional.
Now, let me turn the call to Jason to review our financial results for the quarter.
Thank you Mike. Before I start, I'd also like to take a brief moment to recognize all those affected by this ongoing crisis, especially those working on the front lines; our thoughts are with you and we hope you and your loved ones remain safe and healthy. The health crisis and cultural issues we're facing evoke both deep sadness but also hope and optimism of what we can be. I'd also like to express sincere gratitude to all the Northern Trust Partners for their continuing hard work, resiliency and flexibility in these uncertain times.