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Tax Exempt Portfolios Actively Managed Against Broad or State Specific Municipal Benchmarks

Philosophy & Objective
Municipal Fixed Income assignments at Northern Trust are constructed with the goal of generating consistent performance with predictable volatility. We emphasize the objectives of:

  • Managing to the client's unique tax situation
  • Preserving principal
  • Generating current income
  • Dampen the volatility of other asset classes
  • Providing liquidity in case of need

Investment Process
We have investment views, but our trading scale and skill allows us to be modest in taking traditional manager bets (duration and credit). We add thoughtful approaches to yield curve, sector, structure & state decisions, yet aiming to end up with portfolios that are often higher quality AND higher return than their benchmarks.

Managing credit risk is the cornerstone of our research process:

  • Strong sell discipline focused on identifying early signs of credit deterioration
  • Separate credit approval process from manager's purchase decision
  • Issuer financials are tracked electronically on a timely basis
  • Individual state analysis identifying macro trends

Investment Style
We incorporate key elements of our relative value style, emphasizing a rigorous security selection process while closely monitoring and controlling portfolio risk relative to a client-selected benchmark.

Active Management
We strive to capitalize on market inefficiencies to maximize total return - both income return and price appreciation:

  • The process goes beyond credit and interest rate decisions
  • Key value-added factors include yield curve positioning, security selection/structure decisions, and sector/state analysis

Disciplined Risk Controls
We believe a comprehensive portfolio review process combined with a key understanding of risk is essential to meet our client's investment objectives:

  • Risk exposure guidelines established in line with client expectations
  • Daily monitoring of duration, sector concentration, and credit quality

Fundamental Research
We combine original credit and macroeconomic research with experience and judgment in the development of portfolio structure and characteristics:

  • Both issuer credit and enhancement (insurance) providers are evaluated
  • The structural risk of each security is evaluated and actively monitored

Flexible Structures
Northern Trust's capabilities can be delivered as separate accounts or mutual fund vehicles.

Scott Warner

Scott Warner

Director, Fixed Income Product Management
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Scott Warner

Scott Warner

Director, Fixed Income Product Management

Scott B. Warner is a Vice President and Director of Fixed Income Product Management at Northern Trust in Chicago. 

In this role, Scott is responsible for the investment product capabilities of Northern Trust Asset Management’s fixed income business across the Americas, EMEA and APAC. His responsibilities include product positioning, development, innovation, and delivery. Prior to his current role, Scott was a senior portfolio manager in the Ultra Short Fixed Income group responsible for separately managed accounts for taxable and tax-exempt mandates. Scott was also the Co-Manager of the Northern Trust Ultra Short Fixed Income Fund (NUSFX) from June 2009 until March 2012. Previously, Scott was a portfolio manager in short duration fixed income and was responsible for the collective funds and various custom cash funds.

Prior to joining Northern Trust in 2000, Scott was responsible for client servicing, mutual fund accounting, and fund administration at The Wadsworth Group in Phoenix, Arizona., now part of US Bancorp Fund Services, LLC.

Scott received an MBA from the University of Chicago Booth School of Business with concentrations in accounting, economics, finance, and international business.  He received a B.S. in finance with honors from the W.P. Carey School of Business at Arizona State University.

Scott is a member of the CFA® Society of Chicago and the National CFA Institute.

Investment Products and Services are:

Not FDIC INSURED; May lose value; No bank guarantee

Investment products and services are offered through Northern Trust Securities, Inc., member FINRA and SIPC and a wholly owned subsidiary of Northern Trust Corporation. Any attached research reports containing the Northern Trust Logo or trademark were prepared solely by employees of Northern Trust Investments, Inc., an affiliate of Northern Trust Securities, Inc.

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© 2015 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A. Incorporated with limited liability in the U.S. Products and services provided by subsidiaries of Northern Trust Corporation may vary in different markets and are offered in accordance with local regulation. For more information, read our legal and regulatory information about individual market offices.

Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, and personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company. This material is directed to professional clients only and is not intended for retail clients. For Asia-Pacific markets, it is directed to expert, institutional, professional and wholesale investors only and should not be relied upon by retail clients or investors. Issued in the United Kingdom by Northern Trust Global Investments Limited.

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