Risk Management

• Articles

  • A Cultural Shift Needed on Risk (2012 Issue 3)

    Investors' changing views on risk management open the door to more dynamic portfolio strategies.

  • The Ascendancy of Quality Investing (2012 Issue 3)

    Strategies attract investor interest by offering the potential for downside protection and better performance over market cycles.

  • Exploring Secular Themes (2012 Issue 3)

    Investors are examining secular themes in an attempt to find new sources of return, while further diversifying their portfolios.

  • The Evolution of DC Plan Diversification (October 2012)

    As defined contribution (DC) plans evolve as the primary retirement vehicle for many people, plan sponsors pursuing diversification are taking a page from the playbook of defined benefit (DB) plans.

  • Four Themes to Shape Institutional Portfolios (April 2012)

    Investor awareness of bigger picture can enhance the likelihood of reaching investment goals and objectives.

  • All Glidepaths Are Not Created Equal (April 2012)

    With the growing popularity of target retirement date funds, plan sponsors must consider the underlying methodology evaluating alternatives.

  • Changing Perspectives on Passive Investing (April 2012)

    Customized beta gains attention as institutional investors shift focus to fund objectives rather than relative performance.

  • Beyond Modern Portfolio Theory (April 2012)

    Northern Trust’s Michael DeJuan explains how innovations have advanced portfolio construction techniques in response to a changing market environment.

  • Managing Volatility in Your Portfolio (2012 Issue 1)

    Despite negative perceptions, volatility can create opportunities for institutional investors.

  • Managing Equity Risk in Volatile Markets (2012 Issue 1)

    Long/short equity strategies seek to offer investors access to the upside of equity markets — with less volatility and lower drawdown risk.

  • Survey Finds Changing Views on Risk, Market Volatility (Fall 2011)

    The Northern Trust Investment Manager Survey reveals increasing risk aversion among managers and concern about higher volatility through the remainder of 2011.

  • Striking the Proper Balance in Multi-Manager Portfolios (Spring 2011)

    Diversification, not dilution, should be the objective when assembling an investment roster.

  • How and Where to Take on Risk in a Diversified Portfolio (Spring 2010)

    There is no such thing as bad risk; there is only bad premium.

  • Legislating Transparency (Spring 2010)

    Global efforts to legislate the transparency of investment strategies and vehicles.

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

    Customized strategies offer potential to add return, manage risk.

  • Redefining Risk Management (Summer 2009)

    Putting a premium on risk assessment and solutions.

  • A Holistic Approach to Risk Budgeting (July 2008)

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

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

    Pension fund sponsors examine the merits of liability driven investing.

  • Risk Management or Risk Shifting? (April 2008)

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

  • Developing a Liability Benchmark (January 2008)

    New scorecard gives sponsors a clearer view of a plan's ongoing health and viability.

  • Derivatives Surge in Popularity (October 2007)

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

  • The Growth of Derivatives Markets (July 2007)

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

  • 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.

  • 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.

• White Papers

  • Proprietary Quality Philosophy (July 2012)

    Focusing on quality companies to seek outperformance, controlled volatility.

  • Transition Management: How to Effectively Manage Risk When Transitioning Assets (June 2012)

    How to better plan your next transition event and mitigate much of the risk.

  • Transition Management: Fixed Income—Adding Transparency to an Opaque Market (June 2012)

    Addressing the nuances of transitioning a bond portfolio and how hiring a transition manager can help.

  • Making Target Retirement Date Funds Work—Glidepath Analysis (March 2012)

    Examining the Northern Trust glidepath construction methodology.

  • Minimum Variance Portfolios—Challenging the Traditional Concept of Risk & Reward (March 2012)

    Low-volatility QDF portfolios provide investors the potential for higher risk-adjusted performance.

  • Integrating Assets and Liabilities (Winter 2011)
  • Frontier Markets and Portfolio Alignment (August 2010)
  • International Transitions Costs and Risks (March 2010)
  • The Added Risks of International Transitions (December 2009)
  • Currency Hedging – The Impact of Exchange Rate Volatility on Currency Hedged Classes (April 2009)
  • Liability Driven Investing Implementation (October 2008)
  • Risk Budgeting in an LDI Framework (August 2008)

• Audio Podcasts

  • The Pension Liability Equation/LDI (8 min. 02 sec/5.6 MB)

    Pension Plan sponsors in Europe and North America are looking for alternatives to traditional pension management strategies. A host of issues are prompting plan sponsors to seek out new solutions with the potential to relieve the pressure building on their funds. Listen to this podcast to find out more about trends in the use of liability driven investment strategies.

    Listen now to The Pension Liability Equation/LDI (To download, right click on the link and select "Save As.")

• Videos

  • Asset & Liability Management in a New Era (Fall 2011)

    A two-part series offering fresh approaches and integrated strategies for managing assets and liabilities in an uncertain environment. Part 1 Part 2

  • A Holistic Approach to Risk Management (9 min. 57 sec.)

    In this video interview, Steven A. Miller of Northern Trust’s Investment Program Solutions group discusses the various risks investors face.

  • Expert View on Performance and Risk Measurement Trends (6 min. 44 sec.)

    Bob Campion of Pensions Insight Magazine interviews Jim Trotter about Trends in Performance and Risk Measurement, December 2010

  • Moving Mountains: How to Manage Risk Effectively When Reallocating Assets (1 hr. 7 min. 2 sec.)

    Northern Trust recently hosted a session exploring risks when changing asset allocations. Speakers include: Grant Johnsey and Debbie Mastanuono from Northern Trust.