x
Your preference has been saved. Remove your saved preference.
You must supply both a username and a password to login.
You must supply a username, password and token to login.
Sign on
Passport secured login icon  
 
Wealth Management
Asset Management
Asset Servicing
Insights & Research
About Northern Trust
Search go
Click to close drop down menu.
 
Click to close drop down menu.
Financial Intermediary
Learn about asset management solutions designed for Retirement Plan Advisors, TAMPs/Outsourcing Providers, Subadvisory Program Sponsors, RIAs/Financial Advisors and Trust Institutions.
Institutional
Learn about asset management solutions including: global index management, active equity and fixed income, target retirement date funds, and manager of manager programs.
Individual
Get answers to your investment challenges with asset management capabilities including alternatives, exchange traded funds, fixed income, mutual funds and tax-advantaged equity.
Click to close drop down menu.
 
Please be advised you are now leaving the Northern Financial Intermediary section and being directed to a site maintained by Northern Trust. Please click OK to continue.
Northern Trust Logo
 

 
Register | Password Help

Search Financial Intermediary Site

 
Search go
Equity Active

Global Tactical Asset Allocation

 
.
 
 
 
.
TickerNAV AS OF 09/16/14
BBALX$12.47 $0.04 Arrow Up Icon
.

Find A Fund

 
Search go
  • Snapshot
  • Performance
  • Portfolio
  • Management
  • Fund Documents
Snapshot
For those long-term investors looking to diversify your investment among various asset classes (stocks, bonds, commodities, and other) both domestic and foreign. The Fund seeks to provide long-term capital appreciation and current income. The Fund invests primarily in shares of underlying mutual funds, with its asset allocation model adjusted based on changing market conditions. The Fund will invest significantly in companies that are represented in diversified foreign indices. Dividends, if any, are declared and paid quarterly. Capital gains, if any, are distributed at least annually.

Fund Objective
Capital Appreciation and Current Income
Fund Strategy
  • Diversify among various asset classes (stocks, bonds, commodities, and other) both domestic and foreign. The allocation will be based on an asset allocation framework developed by the Investment Policy Committee of The Northern Trust Company (TNTC) and Northern Trust Investments, Inc (NTI).
  • Invest significantly in funds that invest in companies that are located outside of the U.S. as represented in either the MSCI EAFE® Index, MSCI Emerging Markets Index or other diversified foreign indices.
  • Monitor the current asset allocation framework regularly to ensure the allocation is aligned with evolving investment views amid changing market and economic conditions.
Investor Profile
For those long-term investors looking to diversify your investment among various asset classes (stocks, bonds, commodities, and other) both domestic and foreign, then this Fund may be right for you.
Risk/Reward Potential
”Risk/Reward
Asset Allocation Weightings
Asset ClassInvestment VehicleHoldings Weight
U.S. Equity:
Large, Mid, Small
FlexShares Morningstar US Market Factor TILT Index Fund 28.6
Non U.S. Equity:
Developed
FlexShares Morningstar Developing Ex-US Market Factor TILT Index Fund 20.0
Non U.S. Equity:
Emerging Markets
FlexShares Morningstar Emerging Market Factor TILT Index Fund 6.1
Global Real Estate NF Global Real Estate Index Fund 3.0
U.S. Bonds:
High Yield
NF High Yield Fixed Income Fund 12.7
U.S. Bonds:
Intermediate
NF Bond Index Fund 15.6
U.S. Bonds:
Inflation Protected
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund 3.9
U.S. Bonds: Short NF Short Bond Fund 4.9
Commodities/
Natural Resources
FlexShares Morningstar Global Upstream Natural Resources Index Fund 1.9
Global Infrastructure FlexShares STOXX Global Broad Infrastructure Index Fund 3.0
Cash NIF Diversified Assets Portfolio 0.3
Total   100.0%

Fund Literature

 
Important risk information can be found on the Portfolio tab.
CUSIP665162392
YTD Total Return4.07% (as of 09/16/14)
Inception Date07/01/93
Total Net Assets$86,848,620 (as of 08/31/14)

Total Returns

Total Returns for Month Ending 08/31/14
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Global Tactical
Asset Allocation
1.86%2.03%5.24%13.87%9.91%9.66%5.88%6.61%
Asset Allocation
Blend Index
1.77%2.09%6.31%14.74%9.73%9.12%6.96%7.10%
Internal Reference
Benchmark
2.28%2.83%7.45%14.89%9.15%9.56%N/AN/A
Morningstar Cat. Avg.
Moderate Allocation
2.40%2.45%6.40%15.49%11.87%10.96%6.70%N/A

Total Returns

Total Returns for Quarter Ending 06/30/14
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Global Tactical
Asset Allocation
1.77%3.60%4.97%15.45%8.72%11.06%5.57%6.65%
Asset Allocation
Blend Index
1.15%3.84%5.34%15.32%7.86%10.74%6.81%7.11%
Internal Reference
Benchmark
1.34%4.04%5.89%14.12%7.55%11.06%N/AN/A
Morningstar Cat. Avg.
Moderate Allocation
1.52%3.60%5.41%16.03%9.61%12.57%6.44%N/A
Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here.

The Advisor has agreed to reimburse certain expenses of the Fund (excluding acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board of Trustees of the Trust; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; extraordinary expenses; and interest, if any) to the extent the "Total Annual Fund Operating Expenses" exceed 0.25%. The contractual limitation may not be terminated before July 31, 2015 without the approval of the Board of Trustees. In the absence of fee waivers, yield, total return, growth since inception and dividends would have been reduced. Total return is based on net change in NAV assuming reinvestment of distributions.

Annual Expense Ratios

 
 Gross Expense RatioNet Expense Ratio
Global Tactical Asset Allocation0.87%0.66%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2015.

Calendar Year Returns

 
        2013      2012      2011      2010      2009
Global Tactical Asset Allocation11.58%14.02%-0.01%10.80%20.14%
Asset Allocation Blend Index12.35%13.09%1.28%13.05%23.59%
Internal Reference Benchmark9.06%12.37%-0.05%12.19%24.24%
Morningstar Category Avg. Moderate Allocation16.48%11.72%-0.11%11.83%24.13%
Performance quoted represents past performance and does not guarantee future results.
Important risk information can be found on the Portfolio tab.
.
Portfolio Composition
   
HoldingsFund
FlexShares Morningstar US Market Factor TILT Index Fund27.5%
FlexShares Morningstar Developing Ex-US Market Factor TILT Index Fund19.8%
NF High Yield Fixed Income Fund13.0%
NF Bond Index Fund10.6%
NF Short Bond Fund10.6%
FlexShares Morningstar Emerging Market Factor TILT Index Fund6.0%
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund4.0%
NF Global Real Estate Index Fund3.0%
FlexShares STOXX Global Broad Infrastructure Index Fund3.0%
FlexShares Morningstar Global Upstream Natural Resources Index Fund2.0%
NIF Diversified Assets Portfolio0.5%
% of Portfolio100.0%
As of 07/31/14
Sector WeightingsFundBenchmark
Financials24.7%
Industrials12.8%
Consumer Discretionary11.4%
Information Technology11.3%
Health Care8.7%
Energy8.6%
Materials7.7%
Consumer Staples6.9%
Utilities4.3%
Telecommunication Services3.6%
TOTAL100.0%
As of 07/31/14
Risk Characteristics*Global Tactical Asset Allocation Asset Allocation Blend Index
Beta1.051.00
Up Market Capture103.86100.00
Down Market Capture101.21100.00
Information Ratio0.240.00
*Above risk characteristics are based on a 3-year time period
  
DateHoldings File
As of 06/30/14Insert Icon
As of 03/31/14Insert Icon

Fund Characteristics

Number of Holdings11
Portfolio Turnover23.95% (as of 03/31/14)
Dividend ScheduleQuarterly
Dividend Income Last QuarterN/A
Capital Gain Income Last QuarterN/A
BenchmarkAsset Allocation Blend Index
Morningstar CategoryModerate Allocation
Asset Allocation 
Stocks53.4%
Bonds38.1%
Real Assets8.0%
Cash0.5%
TOTAL100.0%
Equity Risk: Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.

Asset Allocation Risk: An asset allocation strategy does not guarantee any specific result or profit nor protect against a loss.

Interest Rate Risk: Increases in prevailing interest rates will cause fixed-income securities, including convertible securities, held by the Fund to decline in value.

International Risk: International investing involves increased risk and volatility.

Asset Allocation Blend Index consists of 60% MSCI All Country World Index and 40% Barclays U.S. Aggregate Bond Index. It is not possible to invest directly in an index.

Internal Reference Benchmark represents the strategic asset allocation weights assigned annually by the Investment Policy Committee — the baseline from which the portfolio managers tactically allocate within the fund. As of July 1, 2014, the benchmark consists of 34% Barclays U.S. Aggregate Bond Index, 21% MSCI U.S. IMI, 17% MSCI World ex. USA IMI, 7% MSCI Emerging Markets IMI, 4% Barclays U.S. TIPS Index, 3% Barclays EM Local Currency Government Diversified Index, 3% Barclays U.S. Corporate High Yield 2% Issuer Capped, 3% FTSE EPRA/NAREIT Global Index, 3% Morningstar Global Upstream Natural Resources Index, 3% S&P Global Infrastructure Index, and 2% iMoneyNet Fund Avg. – First Tier Institutional. It is not possible to invest directly in an index.

Barclays U.S. Aggregate Bond Index is an unmanaged index of prices of U.S. dollar-denominated, fixed rate, taxable, investment-grade fixed income securities with remaining maturities of one year and longer. It is not possible to invest directly in an index.

Barclays Emerging Markets Local Currency Government Diversified Index measures the performance of fixed-rate local currency sovereign debt of emerging market countries. The Index includes government bonds issued by countries outside the United States, in local currencies, that have a remaining maturity of one year or more and are rated B3/B-/B- or higher. It is not possible to invest directly in an index.

Barclays U.S. Corporate High Yield 2% Issuer Capped Index is an unmanaged index that measures the market of U.S. dollar-denominated, non-investment grade, fixed-rate, taxable corporate bonds. It is a version of the Barclays High Yield Corporate Bond Index except it limits its exposure of each issuer to 2% of the total market value and redistributes any excess market value Index-wide on a pro-rata basis. It is not possible to invest directly in an index.

Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index is a rules-based, market value-weighted index that tracks inflation-protected securities issued by the U.S. Treasury. It is not possible to invest directly in an index.

FTSE EPRA/NAREIT Global Index is a free float, market capitalization weighted real estate index designed to represent publicly traded equity REITs and listed property companies in 38 countries worldwide, covering both the developed and emerging markets. It is not possible to invest directly in an index.

iMoneyNet Fund Avg. – First Tier Institutional Category includes only non-government institutional funds that also are not holding any second tier securities. Portfolio holdings of first tier funds include U.S. Treasury, U.S. other, repos, time deposits, domestic bank obligations, foreign bank obligations, first tier CP, floating rate notes and asset-backed commercial paper. It is not possible to invest directly in an index.

Morningstar Global Upstream Natural Resources Index measures the performance of stocks issued by companies that have significant business operations in the ownership, management and/or production of natural resources in energy, agriculture, precious or industrial metals, timber and water resources sectors as defined by Morningstar’s industry classification standards. Individual stock weights as well as category and regional exposure are capped to provide diversified exposure. It is not possible to invest directly in an index.

MSCI All Country World Index is a free float-adjusted market capitalization index that is designed to measure the equity performance of large and mid cap securities in the global developed and emerging markets. It is not possible to invest directly in an index.

MSCI Emerging Markets Investable Markets Index (IMI) is a free float-adjusted market capitalization index that is designed to measure equity market performance of large, mid, and small cap securities in the global emerging markets. It is not possible to invest directly in an index.

MSCI United States Investable Markets Index (IMI) is a free float-adjusted market capitalization index that is designed to measure equity market performance of large, mid, and small cap securities of the U.S. market. It is not possible to invest directly in an index.

MSCI World ex. USA Investable Markets Index (IMI) is a free float-adjusted market capitalization index that is designed to measure the equity performance of large, mid, and small cap securities in developed markets, excluding the USA. It is not possible to invest directly in an index.

S&P Global Infrastructure Index provides liquid and tradable exposure to 75 companies from around the world that represent the listed infrastructure universe. The index has balanced weights across three distinct infrastructure clusters: Utilities, Transportation, and Energy. It is not possible to invest directly in an index.

.
Bob Browne, CFA<sup>&reg;</sup>

Bob Browne, CFA®

Portfolio Manager

Northern Global Tactical Asset Allocation Fund (BBALX)

With Northern Trust Since 2009
Began Career in 1989

Bob Browne, Executive Vice President and Chief Investment Officer for Northern Trust. He is a member of Northern Trust's Operating Group, reporting directly to the Management Group. Mr. Browne is also a co-manager for the Northern Global Tactical Asset Allocation Fund.

Mr. Browne chairs the firm’s Investment Policy Committee, which sets investment policy for all Northern Trust groups in all asset classes. He is responsible for investment performance, process and philosophy across multiple investment strategies including fixed income, active equity and passive investments. Mr. Browne has more than 25 years of investment experience.

Prior to joining Northern Trust in 2009, Mr. Browne worked for ING Investment Management and was the firm’s Chief Investment Officer for Fixed Income and Proprietary Investments from 2004 until 2009. In this capacity, he oversaw $120 billion in assets under management across retail and institutional clients, as well as the firm’s own insurance assets. From 2002 to 2004, he was founder and Managing Partner of Picador Capital, an alternative investment firm. From 1999 to 2001, he was Co-Head of Americas Fixed Income for Merrill Lynch Investments and he also worked in the firm’s London office from 1997 to 1999 as a senior portfolio manager. Mr. Browne spent the first eight years of his career, from 1989 until 1997, at JP Morgan Investment working as a global fixed income and currency portfolio manager in the firm’s Tokyo and London offices.

Mr. Browne holds a B.A. with a major in economics from the College of the Holy Cross. He also has a Masters in international business studies from the University of South Carolina. He is an active CFA® charterholder.

.
Daniel J. Phillips, CFA<sup>&reg;</sup>

Daniel J. Phillips, CFA®

Portfolio Manager

Northern Global Tactical Asset Allocation Fund (BBALX)

With Northern Trust Since 2005
Began Career in 2005

Daniel J. Phillips, Vice President of Northern Trust and currently co-manages the Northern Global Tactical Asset Allocation Fund.

Mr. Phillips joined Northern Trust in 2005, and, alongside his Portfolio Manager responsibilities, is an Investment Strategist within the Northern Trust Asset Management business unit, overseeing the firm’s asset allocation processes and serving on the firm’s Investment Policy Committee.

Mr. Phillips received a BBA in finance and economics from the University of Iowa and an MBA in finance, economics and international business from the University of Chicago. He is an active CFA® charterholder.

.
Jim McDonald

Jim McDonald

Portfolio Manager

Northern Global Tactical Asset Allocation Fund (BBALX)

With Northern Trust Since 2001
Began Career in 1981

Jim McDonald, Executive Vice President and the Chief Investment Strategist for Northern Trust. In addition, he chairs the Northern Trust Tactical Asset Allocation Committee, is a member of the Investment Policy and Private Equity Investment Committees, and is trustee of the Northern Trust Alpha Strategies and Equity Long/Short Strategies Hedge Funds. Mr. McDonald is also a co-manager for the Northern Global Tactical Asset Allocation Fund.

Prior to joining Northern Trust in 2001, Mr. McDonald was Director of Equity Research at ABN AMRO in New York and Chicago (1994-2000) and Equity Research Analyst at ABN AMRO following the Environmental Services Industry (1990-1994). He started his professional career in 1981 with Arthur Andersen & Co. in Detroit.

Mr. McDonald received a BBA from the University of Michigan and an MBA with high distinction from Babson College. He is a member of the CFA Society Chicago and a registered CPA in the state of Michigan.

CommentaryFact SheetHoldingsSummary ProspectusProspectus    Statement of Additional InformationAnnual ReportSemi Annual Report
CommentaryDownload PDFDownload ExcelDownload PDFDownload PDFDownload PDFDownload PDFDownload PDF
View AllView All View AllView AllView AllView AllView All

Not FDIC insured | May lose value | No bank guarantee

View investment term definitions

Please carefully read the prospectus and summary prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds before investing. Call 800-595-9111 to obtain a prospectus and summary prospectus, which contains this and other information about the funds.

©2014 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.