Another strong contributor to performance was Northern Trust Corp. (NASDAQ:NTRS), up +12.77% in the second quarter. The stock price was buoyed by improving net interest margins and a favorable rate environment. In the first quarter of this year, the firm’s total assets under management hit the $1 trillion mark for the first time, largely due to a +13% increase over the last 12 months in its wealth management segment as well as an +11% increase in its larger corporate and institutional services arm. The bank should continue to feel a tailwind from a more constructive rate environment going forward. It operates in a favorable industry with a diversified product offering and high barriers to entry. Moreover, throughout the tumultuous last economic downturn and current recovery, Northern has proven the quality of its franchise and the value of its conservative operating approach. We continue to find the stock attractive at these levels.
- From John Rogers (Trades, Portfolio)' Ariel Appreciation Fund second quarter 2017 shareholder commentary.
