The chart below shows our current recommended equity asset allocation for large cap, mid cap, small cap and international asset classes, based on our Maximum Long-Term Growth for Accredited Investors Investment objectives:

Source: Northern Trust’s Maximum Long-Term Growth for Accredited Investors Investment Objectives.

Large Cap Equity Investing
We take a core approach to large cap equity investing. Using our years of experience and broad range of investing expertise, we choose quality stocks based on performance, regardless of their style distinction.

A core approach allows the portfolio manager to manage the majority of your large cap equity assets. This gives the portfolio manager the ability to adapt your portfolio to your restrictions and directions or, at your request, to address tax issues.

Rather than focusing on a growth or value approach, our core approach to investing means each portfolio may include a combination of growth and value equities. Following a core approach helps your portfolio smooth out the ups and downs of style volatility and provides more consistent returns over the long term.

Selecting the Best Stocks
We select stocks based on rigorous criteria, including strong financial condition and consistent, profitable growth. Our equity research analysts (with average industry tenure of 11 years) evaluate 290 U.S. companies in 50 industries on our in-house stock guidance list. They examine three-to-five year histories of consistency in earnings-per-share, revenue and earnings growth, return-on-shareholder equity and debt-to-total capital ratios. Our analysts forecast future earnings and profitability and which stocks are most likely to outperform the market.

Each week, our experienced portfolio managers meet to review the analysts' research and to provide their own insight on stocks of interest. Working together they select their top stock ideas. Each portfolio manager then uses this shared knowledge to develop structured portfolio solutions for our clients.

Mid Cap, Small Cap and International Equity
Northern Trust believes that asset class diversification is the soundest way to participate in the market by giving you access to various market segments. Asset class diversification helps to diminish the volatility that comes from investing in too few asset classes and helps to increase returns over the long term. More than 90% of a portfolio return is the direct consequence of the asset classes selected and their proportions within your portfolio.

To provide equity diversification in mid cap, small cap and international equities, Northern Trust offers no-load mutual funds.

Achieving Your Investment Objectives
Selecting the equities right for you is vital to creating an investment portfolio that will help you meet your goals. Northern Trust's core approach and experienced portfolio managers not only can help protect your portfolio from market fluctuations, but also can make your portfolio more efficient—seeking the highest returns possible within your risk tolerance level.