Some analysts will continue to operate out of London, but the fund management functions will be handled in Chicago as part of a broader consolidation around key centres, sources at the company said.
The company declined to comment on the number of staff leaving or whether any additions would be made to the team in the United States.
One source at the firm said less than 10 fund managers were losing their jobs in the cull.
The move is further evidence that fee-generating portfolio managers are firmly in the firing line now that fund management firms have started to run out of costs to cut in their back and middle offices.
Consultants have voiced fears that companies might damage their investment performance if they choose to cut back too heavily on fund manager talent.
Following the changes, Northern Trust said it would have over 150 people in its asset management business in London.
Among the team leaving Northern Trust is head of the unit Stephen Dowds. An accomplished classical guitarist, Dowds joined Northern Trust in 2004 after previously acting as chief investment officer at Dryden Capital Management.
One departing member of the team, who spoke on condition of anonymity, said he was not thinking about finding a new job immediately in the current climate.
"I'll probably just go and lie on the beach for a while," he told Reuters.
According to data on Northern Trust's website, the firm's International Growth Equity fund is down 8.43 percent in the year to date. It is down 43.23 percent on a one year view and down 1.6 percent over five years.
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