National Bank of Abu Dhabi Names Northern Trust as Administrator for Landmark ETF’s move to Physical Replication

  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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