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.
 
Northern Trust Logo
 

Multi-Manager Monitoring Process

 
.
 
 
 
 
 
 
 
 
.

Continuous assessment by our investment professionals to monitor manager excellence

Northern Trust's investment professionals play a pivotal role in coordinating the activities of our front office, back office and research functions, bringing the full resources of our organization to bear on the task of investment supervision. Monitoring is performed by all departments as follows.

Trading Activity Monitoring
The transactions in most manager accounts, for example, are reviewed by our investment staff on a daily, ex-post basis. Trading activity provides valuable insight on manager decision making and strategic direction. Any unusual positions can be investigated immediately. In addition, the research team can use daily price data feeds to review estimated portfolio returns at any time.

Monthly Portfolio Valuation Reconciliation
Our accounting and administrative staff reconcile portfolio valuations monthly. The investment team then reviews valuations, returns and cash flows, creating another valuable checkpoint for assessing manager portfolios and performance.

Comparative Performance Analysis
The research staff updates our performance and portfolio databases each month, and compares analysis of this new data against our original quantitative assessment of each manager. In addition to these techniques, we also use a combination of proprietary and commercial tools to perform attribution, style benchmarking and tracking risk analysis on the most current live performance data. Again, the purpose of this analysis is to measure consistency in risk-taking, and to raise questions for discussion.

Regular Communications With Our Managers
The investment team maintains regular communications with our managers. Portfolios are reviewed at least quarterly, but more frequent conversations are common and can even occur daily during fast-moving markets. In many cases, we can provide valuable feedback to our managers based on our market intelligence and experience. Among other things, reviews typically include discussion of market views, strategy, research direction and likely future trades, all of which can be discussed in hindsight in future conversations.

Investment Committee Peer Review
Our investment committee reviews performance, risk analysis, investment policy, strategy and client activity. Committee approval is required for any fundamental product or process changes. This body is in turn answerable to a master investment committee responsible for all Northern Trust Asset Management multi-manager business. The master committee provides peer review, assuring that all decisions are consistent with program objectives, client interests and the standards of the firm.

.
 
 
 
 
 
 
 
.
Investment Products and Services are:

Not FDIC INSURED; May lose value; No bank guarantee



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.