Point of View

Investment Strategies

• Articles

  • Derivatives-based Investment Solutions (Fall/Winter 2009)

    Customized strategies offer potential to add return, manage risk.

  • Changes Pending for MMFs (Fall/Winter 2009)

    Proposals for new regulations aim to increase transparency and better manage systemic risk.

  • Perspectives on Securities Lending (Summer 2009)

    Institutional investors revisit securities lending with a stronger awareness of the risks, returns.

  • The Road Ahead for Fixed Income (Summer 2009)

    Signs of normalcy return to the market after recent upheaval.

  • Transitioning a Fixed-Income Portfolio (Summer 2009)

    Moving bond portfolios presents different challenges for investors.

  • Investment Program Outsourcing (Spring 2009)

    Plan sponsors are more comfortable using external resources to meet new challenges.

  • Perspectives on Global Equity Investing (Spring 2009)

    Investing focus shifts toward best-in-class companies and away from geography.

  • Frontier Markets (Spring 2009)

    Institutional investors have new opportunities to broaden international exposures.

  • Small-Cap Stocks and Recessions (Spring 2009)

    Evidence indicates smaller stocks have outperformed large-caps during economic recoveries.

  • The Right Time for Global Real Estate? (October 2008)

    Overseas opportunities could provide enhanced returns, reduced risk.

  • The Outlook for Private Equity (October 2008)

    Liquidity crunch, economic concerns don’t dampen investor interest.

  • Emerging Markets and the Credit Crunch (October 2008)

    Local debt markets provide buffer for developing economies.

  • The Shifting Corporate Pension Landscape (October 2008)

    Investment product innovation helps U.S. plan sponsors tackle an evolving set of challenges.

  • The Demand for Commodities (October 2008)

    Demand for commodities from emerging and developed economies continues.

  • Perspectives on Investing in China (July 2008)

    Assessing the risks and growth potential for China’s evolving stock market.

  • No Time Like the Present for LDI (July 2008)

    Pension fund sponsors examine the merits of liability driven investing.

  • A Holistic Approach to Risk Budgeting (July 2008)

    Approach helps U.S. plan sponsors balance short- and long-term funding considerations.

  • Risk Management or Risk Shifting? (April 2008)

    Popular academic theory meets real-world pension plan investment strategy.

  • Cash as a Strategic Asset (April 2008)

    As investors take a more active approach to their short-term portfolios, they must balance the potential for enhanced returns against risk and liquidity considerations.

  • London: Hub of Foreign Exchange Activity (April 2008)

    Multiple factors converge to keep the city at the crossroads of the burgeoning global currency marketplace.

  • Overcoming Home-Country Bias (April 2008)

    Institutional investors continue to shift their focus toward foreign markets.

  • Outcome-Oriented Investing (April 2008)

    Investors adopt outcome-oriented strategies for their investment programs.

  • The Dividend Puzzle (January 2008)

    Stock repurchases are replacing dividends for a new generation of companies.

  • The Winds of Change (January 2008)

    Investors evaluate the opportunities and risks resulting from global climate change.

  • The Growth of Global Investing (January 2008)

    Institutional investors adopt a global perspective in pursuit of investment opportunities.

  • Derivatives Surge in Popularity (October 2007)

    Use increases as plans sponsors look to manage risk and boost returns.

  • Employing Leverage (October 2007)

    The common denominator in some of the most innovative investment strategies is leverage.

  • Walking the Beta Line (October 2007)

    Managers seek to add value by separating true alpha from hedge fund beta.

  • Exploring New Horizons (October 2007)

    Large foundations and endowments reap the benefits of alternative investing.

  • Greater Acceptance of “Alternative” Investments (October 2007)

    Pension sponsors embrace alternatives to address underfunded liabilities.

  • Opportunities in the Eurozone (July 2007)

    A combination of events has put short-term fixed-income strategies in the spotlight.

  • Inside Target Date Funds (July 2007)

    Defined contribution plan sponsors look to select target date strategies that benefit their plans.

  • The Growth of Derivatives Markets (July 2007)

    Investors looking to hedge risk are fueling growth in the derivatives markets.

  • Handing Over the Investment Reins (July 2007)

    Total investment program management can allow investors to focus on core competencies.

  • Outsourcing as a Solution to Plan Administration and Investment Challenges (April 2007)

    Plan sponsors are increasingly turning to outsourcing to gain simplicity in plan management.

  • Portable Alpha: A Risk-Efficient Approach to LDI (April 2007)

    Portable alpha provides the building blocks to engineer more risk-efficient LDI strategies than traditional investment approaches.

  • Currency as an Asset Class (April 2007)

    As investors look beyond traditional hedging opportunities, currency trading grows into a stand-alone asset class.

  • Exploring the Hedge Fund Universe (April 2007)

    With an increasingly crowded marketplace, the challenge in hedge fund investing will be identifying new market inefficiencies.

  • The Evolution of Responsible Investing (January 2007)

    Next-generation socially responsible investment strategies allow investors to evaluate the impact of social and environmental factors on financial performance.

  • New Tactics for Investors of Balance Sheet Asset Pools (January 2007)

    Often found on an organization’s balance sheet, taxable asset pools are being invested in innovative ways.

  • Relaxing the Long-Only Constraint (January 2007)

    Active extension strategies are a natural next step for institutional investors seeking a risk-efficient method of capturing alpha while maintaining beta exposure.

  • Implementing LDI in Pension Plans (January 2007)

    Tougher funding and disclosure requirements are spurring pension plan sponsors around the globe to reconsider the context of how they view their assets and liabilities.

  • Sticking with Emerging Markets (January 2007)

    Emerging market equities have demonstrated why they should be a core element in a long-term international portfolio.

  • The Global Pension Shift (October 2006)

    Pension plans around the globe are adopting new investing mindsets and changing behaviors as they grapple with aging populations, funding issues and new regulations.

  • Beyond the Great Wall (October 2006)

    From private pension systems to cross-border investing, China’s emergence in the global economy presents risks and rewards.

  • Perspectives on Private Equity (October 2006)

    Successfully navigating the private equity waters takes persistence, perseverance and patience.

  • Asset-Mix Shifting in Institutional Portfolios (October 2006)

    Maximize excess returns and manage liabilities.

  • Private Equity in the Public Eye (July 2006)

    Private equity funds are coming off of a banner year. Institutional investors are taking a look at how they can safeguard their private equity portfolios.

  • The New Appeal of Emerging Markets (July 2006)

    Emerging markets are finding a home in institutional investors’ portfolios, where achieving an effective policy allocation can still be a challenge.

  • The Search for Efficient Asset Class Exposure (July 2006)

    Broadening the opportunity set of investment strategies is a critical first step to meeting an institutional investor’s performance objectives.

  • Sudan-Free Investing Exemplifies A Broader Trend (July 2006)

    Sudan-free investing exemplifies efforts to achieve more than investment goals.

• White Papers

  • Understanding the Fixed Income Landscape (December 2009)
  • The Future of Money Markets (October 2009)
  • How to Select a Transition Manager (September 2009)
  • Understanding the Fixed Income Landscape (December 2009)
  • Buyer’s Market in Municipal Bonds (July 2009)
  • The Future of Alternative Investments (July 2009)
  • Dividends’ Impact on Taxable Investors (June 2009)
  • Emerging Markets (April 2009)
  • Currency Hedging – The Impact of Exchange Rate Volatility on Currency Hedged Classes (April 2009)
  • Liability Driven Investing Implementation (October 2008)
  • Global Real Estate Investing (June 2008)
  • Private Equity Indexes – Insight or Self-Deception (August 2008)
  • International Equities: Seeking a More Complete Definition (May 2008)
  • Transition Management: A Review of Market Volatility and Implications When Restructuring Assets (May 2008)
  • Investing in Chinese Equities (February 2008)
  • Transition Management: Understanding & Evaluating Interim Investment Management Solutions (February 2008)

• Audio Podcasts

  • Whistlejacket Restructuring Update (7 min./4.81 MB)

    The restructuring of the insolvent Whistlejacket SIV made significant progress in April and early May. Listen to this podcast to learn about what we believe will be final resolution of this restructuring.

    Listen now to Whistlejacket Restructuring Update (To download, right click on the link and select "Save As.")

  • Megatrends in Institutional Investing (10 min. 37 sec/7.5 MB)

    What global trends are transforming the asset servicing industry? Four key mega-trends are affecting institutional investors and investment managers. In this podcast, we examine all four trends and the environments in the United States and Europe that helped incubate each.

    Listen now to Megatrends in Institutional Investing (To download, right click on the link and select "Save As".

  • U.K. REITS (13 min. 18 sec/9.35 MB)

    Real estate investment trusts, or REITs for short, are one of the most talked about and long-awaited investment vehicles on the United Kingdom investment scene. Find out what their arrival in 2007 really means for property companies and investors in the United Kingdom.

    Listen now to U.K. REITS (To download, right click on the link and select "Save As.")

  • Sudan-Free Investing (5 min. 13 sec/3.59 MB)

    Why have some investments been divested from companies that do business in Sudan or distribute products made in Sudan? This timely and comprehensive podcast provides some answers.

    Listen now to Sudan-Free Investing (To download, right click on the link and select "Save As.")

  • Target Date Funds (7 min. 13 sec/5.1 MB)

    While target date funds have been in existence for several years, the recent surge in interest is a result of the Pension Protection Act which was signed into law in 2006. Many plan sponsors are adopting target date strategies as their new default investment option. Listen to this podcast to find out more about Target Date Strategies.

    Listen now to Target Date Funds (To download, right click on the link and select "Save As.")

  • Portable Alpha (7 min. 52 sec/5.4 MB)

    Considering alternatives to traditional portfolio management? There has been considerable interest by Institutional Investors around portable alpha. Several factors have contributed to this interest; listen to find out more.

    Listen now to Portable Alpha (To download, right click on the link and select "Save As.")

  • Investing in China (8 min. 43 sec/6.0 MB)

    There is no question that China is booming. The country boasts the world’s fastest growing economy, one of the fastest growing middle classes and a manufacturing and industrial base set to rapidly expand for the foreseeable future. So what should an investor know before contemplating an investment in China?

    Listen now to Investing in China (To download, right click on the link and select "Save As.")

  • A Structured Approach for Small-Cap Investing (11 min./7.5 MB)

    For the past 5 years, the small cap equity asset class has been one of the leading contributors to investors’ overall performance. Fueled by today’s low equity return environment, the demand for small cap products continues at a rapid pace – despite many top-quartile managers closing their doors to new investors.

    Listen now to A Structured Approach for Small-Cap Investing (To download, right click on the link and select "Save As.")

  • Global Pension Shift (18 min./12 MB)

    Pension plans around the globe are adopting new investing mindsets and changing behaviors as they grapple with aging populations, funding issues and new regulations. This podcast is intended for institutional investors who want to learn more about how pension plans around the globe are responding to new pension funding laws and regulations, and the strategies - such as liability driven investing - that are being developed to deal with these issues.

    Listen now to Global Pension Shift (To download, right click on the link and select "Save As".

  • The Top Five Myths of Transition Management (8 min. 50 sec./6.07 MB)

    Each year, institutional investors shuffle between $2 trillion and $2.5 trillion dollars among portfolios. Given the continued search for alpha and new funding and reporting requirements, most industry analysts expect the number of portfolio restructurings to increase. As the pace of fund restructurings continues to accelerate (due to these changes), it’s important to separate truth from the transition management myths.

    Listen now to The Top Five Myths of Transition Management (To download, right click on the link and select "Save As.")

  • The “Forced” Institutionalisation of the Hedge Fund Industry (21 min./14 MB)

    With hedge fund stories constantly in the press, this podcast will be of interest to anyone who wants to find out more about the impact of inflows of institutional money on the hedge fund industry. Northern Trust seeks to explore the consequences that institutionalisation is having on investors and managers alike.

    Listen now to The “Forced” Institutionalisation of the Hedge Fund Industry (To download, right click on the link and select "Save As.")

• Videos

  • Waking Up in Recovery, Part 1 (7 min. 50 sec.)

    Paul Kasriel, Northern Trust's Chief Economist, takes a fresh look at the economy, the headwinds we face, and future engines for global growth.

  • Biweekly Fixed Income Market Updates

    Gain insights into how liquidity, volatility and government actions are impacting the credit markets and the economy.

  • Monthly Perspectives Highlights

    A discussion of emerging markets, economic growth and performance of broad indexes.

  • Waking Up in Recovery, Part 2: A slow return to health (8 min. 50 sec.)

    What happens after the stimulus spending wears off? Paul Kasriel, Northern Trust's Chief Economist, shares his prognosis on inflation, the U.S. dollar and the year ahead.