National Bank of Abu Dhabi Names Northern Trust as Administrator for Landmark ETF’s move to Physical Replication Business Wire LONDON -- December 03, 2012 In line with its focus on offering innovative exchange traded fund (ETF) administration solutions, Northern Trust (Nasdaq: NTRS) has acted as administrator and custodian for National Bank of Abu Dhabi as it made a series of enhancements to the region’s first ETF, including moving from swap based replication to physical replication. The ETF, which also shifted from index provider Dow Jones UAE 25 Total Return Index (Local) to the MSCI UAE IMI 10/40, is now named NBAD OneShare MSCI UAE ETF and is the first physically replicated fund in the Emirate. “We have enhanced our ETF following consultations with a number of international authorized participants and in response to a strong demand for physical replication,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group. “We believe physical replication will increase scalability and remove restrictive collateral requirements and are pleased to work with Northern Trust who, through their depth of expertise and experience in ETF administration could support our sophisticated administrative requirements, enabling us to continue to provide the best in class investment product to our investors.” ETFs mimic the returns of a benchmark index. Physical replication occurs when the ETF manager purchases the underlying assets of the index. It differs from synthetic or swap based replication where the ETF manager enters a swap contract with a third party that agrees to pay the index return in exchange for a small fee and any returns on collateral held in the ETF portfolio. “The dynamics of ETFs are different from other fund types,” said Liam Butler, head of ETF fund administration, Europe Middle East and Africa at Northern Trust. “We can offer a variety of ETF administration solutions to support our client’s unique requirements for transparency and reporting, and are delighted to continue to work with National Bank of Abu Dhabi supporting the enhancements to this landmark ETF.” Northern Trust's Global Fund Services group has been providing award winning fund administration solutions for European ETFs for more than 10 years. It supports physical, synthetic and hybrid ETF models, including both cash and in-specie dealing methodologies for a broad range of global assets, including equities, fixed income, real estate, infrastructure, listed private equity, regional and sector specific ETFs. Earlier this year, Northern Trust was named joint winner of the Best Service Provider to ETFs in Europe at the Global ETF AWARDS for the fifth consecutive year and also Best European ETF Administrator at the ETFexpress awards. Northern Trust has been working with National Bank of Abu Dhabi since the launch of its ETF, the NBAD One Share Dow Jones UAE 25 ETF (1UAE) in 2010. About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) 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, 2012, Northern Trust had assets under custody of US$4.8 trillion, and assets under investment management of US$749.7 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 or follow us on Twitter @NorthernTrust. Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A, incorporated with limited liability in the U.S. The Northern Trust Company, London Branch (reg. no. BR001960), Northern Trust Global Investments Limited (reg. no. 03929218) and Northern Trust Global Services Limited (reg. no. 04795756) are authorised and regulated by the Financial Services Authority. Northern Trust (Guernsey) Limited, Northern Trust Fiduciary Services (Guernsey) Limited, and Northern Trust International Fund Administration Services (Guernsey) Limited are licensed by the Guernsey Financial Services Commission. Northern Trust International Fund Administrators (Jersey) Limited and Northern Trust Fiduciary Services (Jersey) Limited are regulated by the Jersey Financial Services Commission. Northern Trust International Fund Administration Services (Ireland) Limited, Northern Trust Securities Services (Ireland) Limited and Northern Trust Fiduciary Services (Ireland) Limited are regulated by the Central Bank of Ireland. Northern Trust Global Services Limited has a Netherlands Branch which is authorised and regulated in the Netherlands by De Nederlandsche Bank. Northern Trust Global Services Limited has a Luxembourg Branch which is authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF). Northern Trust Luxembourg Management Company S.A. is regulated by the Commission de Surveillance du Secteur Financier (CSSF). Northern Trust Global Services Limited operates in Abu Dhabi as a Representative Office, Licence number 13/238/2008 which is authorised and regulated by the Central Bank of the United Arab Emirates. The Northern Trust Company operates in Canada as The Northern Trust Company, Canada Branch which is an authorized foreign bank branch under the Bank Act (Canada). Trustee related services in Canada are provided by the wholly owned subsidiary The Northern Trust Company, Canada, an authorized trust company under the Trust & Loans Companies Act (Canada). Deposits with The Northern Trust Company and its affiliates and subsidiaries are not insured by the Canada Deposit Insurance Corporation. Northern Trust operates in Australia as a foreign authorised deposit-taking institution (foreign ADI) and is regulated by the Australian Prudential Regulation Authority and the Australian Securities & Investments Commission (AFS Licence No: 314970). The Northern Trust Company of Hong Kong Limited is regulated by the Hong Kong Securities and Futures Commission. The Northern Trust Company has a Singapore Branch which is a foreign wholesale bank regulated by the Monetary Authority of Singapore. The Northern Trust Company has a branch in China regulated by the China Banking Regulatory Commission. Northern Trust Global Investments Japan, K.K. is regulated by the Japan Financial Services Agency. Northern Trust Global Services Ltd (UK) Sweden Filial is authorised by the Financial Services Authority and subject to regulation by the Finansinspektionen. Northern Trust Global Investments Limited has a Netherlands branch which is authorised by the Financial Services Authority and subject to regulation in The Netherlands by the Autoriteit Financiële Markten. Northern Trust Global Investments Limited has a Sweden branch which is authorised by the Financial Services Authority and subject to regulation in Sweden by the Finansinspektionen. Contact: EMEA Contact: Camilla Greene +44 (0) 207 982 2176 Camilla_Greene@ntrs.com or US, Canada & APAC Contact: John O’Connell +1 312 444 2388 John_O'Connell@ntrs.com
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National Bank of Abu Dhabi Names Northern Trust as Administrator for Landmark ETF’s move to Physical Replication
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