web-ip2g-pws.wpc.ntrs.com:1876
web-ip2g-pws.npc.ntrs.com:1876
10.89.5.158:1876
localhost:1876
localhost:1876
[x-akamai-config-log-detail] = [true]
[host] = [localhost:1776]
[accept-language] = [en-us,en-gb,en;q=0.7,*;q=0.3]
[via] = [1.0 v1-akamaitech.net(ghost) (AkamaiGHost), 1.1 akamai.net(ghost) (AkamaiGHost)]
[x-forwarded-for] = [54.198.109.74, 65.121.209.149, 204.188.136.10]
[accept] = [text/html,application/xhtml+xml,application/xml;q=0.9,*/*;q=0.8]
[x-forwarded-host] = [www.northerntrust.com]
[user-agent] = [CCBot/2.0 (http://commoncrawl.org/faq/)]
[true-client-ip] = [54.198.109.74]
[max-forwards] = [10]
[pragma] = [no-cache]
[cache-control] = [no-cache, max-age=0]
[akamai-origin-hop] = [2]
[accept-encoding] = [gzip]
[x-forwarded-server] = [web-xp2b-pws.ntrs.com]

lsds,lscs,ecms,ultraseek,idc,exactTarget,passportloginform,forms,redFish
lsds,lscs,ecms,ultraseek,idc,exactTarget,passportloginform,forms,redFish
lsds,lscs,ecms,ultraseek,idc,exactTarget,passportloginform,forms,redFish
lsds,lscs,ecms,ultraseek,idc,exactTarget,passportloginform,forms,redFish
lsds,lscs,ecms,ultraseek,idc,exactTarget,passportloginform,forms,redFish
www.northerntrust.com
www.northerntrust.com
nt.uat.ntrs.com:12082
web-ip2i-pws.ntrs.com
web-ip2i-pws.ntrs.com
production
production
uat
production
production
templatedata/SiteWide/headInsertion/data/nt-bootstrap
RUNTIME-system,RUNTIME-uat,RUNTIME-production
up8139[345]
up5149[234]
ut.*
up8146[345]
up5171[789]
asset-management/united-states/services/multi-manager-programs/multi-manager-selection-process
8085749181
10
nt


 
Northern Trust Logo
 

Multi-Manager Selection Process

 
.
 
 
 
 
 
 
 
 
.

A Rigorous Process to Result in Consistent Returns for Our Clients

Northern Trust has researched and selected third party investment managers for over twenty years. Our decades of combined experience as pension directors, consultants and fund managers give us a rich perspective on investing, spanning numerous markets and asset classes globally. These common experiences underpin a rigorous, uniform investment process, resulting in consistent returns for our clients.

Confidence is the currency of our trade. Nothing gives us more confidence in our managers than understanding their investment processes and portfolios. We use an interactive, investigative process to develop this understanding, combining the following qualitative and quantitative techniques.

Portfolio Manager Qualitative Investigation
Our qualitative investigation focuses on the portfolio manager and his or her supporting team. We try to understand the role, training, personality and decision-making habits of each professional within the context of the firm's ownership and incentive structure. Compiled through on-site and off-site interviews and reference checks, this background helps us to avoid surprises by understanding or even anticipating how the investment manager will react in a variety of market circumstances.

Successful Portfolio Manager Personality Traits
We find that successful portfolio managers exhibit independent thinking, strong personal discipline and intellectual flexibility. They have exceptional histories and demonstrate deep understanding of and commitment to their business. Successful groups have strong leadership, a crisp, non-bureaucratic decision making process and a high energy level, all of which encourage creativity and risk taking.

Quantitative Portfolio Performance Review
Unlike consultants who screen managers based on historical performance, our quantitative review comes second and aims to verify the conclusions of our qualitative due diligence using both performance and portfolio data. The following are some of the fundamental questions we try to answer:

  • Is the manager's portfolio and performance consistent with their process description?
  • Is the level and composition of risk consistent across time?
  • Does the manager's performance indicate skill or a favorable environment?
  • Is performance commensurate with the risks taken?
  • Does the process result in hidden or unintended risks?
  • Is the process responsive to changing markets?
  • Will the portfolio overlap or complement those of our other managers?
  • Are there any inconsistent results warranting further investigation?

Investigation of Inconsistent Results
The last of these questions is especially important, for our own investment process is intended to be both iterative and interactive. When we find an inconsistency in the data, we do not view it as marking the end of our decision process, resulting in the rejection of the manager. Instead, we view it as an opportunity to circle back and improve our understanding before rendering a final decision

Margret Duvall

Margret Duvall

Senior Solutions Strategist
person icon
View Profile
.
+1-312-444-7336
.
Hide Profile
Margret Duvall

Margret Duvall

Senior Solutions Strategist
 

Margret Duvall, Senior Vice President at Northern Trust, leads the product management team responsible for Northern Trust’s Multi-Manager Solutions business in both personal and institutional markets. Margret oversees the development, evaluation and maintenance of total outsourcing programs, alternative investments, including hedge fund of funds and private equity fund of funds, as well as emerging manager programs.

Margret served as the President of the NT Alpha Strategies Fund and the NT Hedged Equity Fund, both a diversified closed-end management investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). Margret joined Northern Trust in 2004 as a product manager. Before joining Northern Trust, she was employed by Harris Associates as a portfolio associate.

Margret received her MBA at Northwestern University and her B.A. in English from Oberlin College. She is FINRA Series 7 and 63 licensed.

Investment Products and Services are:

Not FDIC INSURED; May lose value; No bank guarantee



Northern Trust Corporation. Head Office: 50 South LaSalle 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.