At Northern Trust we don’t just do beta. We really think about delivering the best beta we can for our investors. This could mean delivering traditional beta solutions using our Intelligent Indexing® approach to minimise costs, creating a customised index to suit an investor’s exacting needs, or implementing alternative index or engineered solutions offering tailored factor exposure and providing superior risk/return profiles.
We can also take any one of these approaches and incorporate environmental, social and governance (ESG) criteria to ensure that our investors meet their responsible investing goals.
We believe that the traditional view of investments as either active or passive is evolving into a continuum of options, with traditional market cap-weighted indices on one end, actively managed strategies on the other and a blend of the two in between. Northern Trust is perfectly positioned to deliver a variety of solutions across this continuum.
Our Intelligent Indexing® process manages risk, liquidity and transaction costs using proprietary technology and portfolio management applications to provide you with consistent, efficient exposure across a range of global markets, from developed to frontier. We focus on generating strong consistent performance whilst minimising tracking error and managing risk, liquidity and transaction costs.
As they develop their investment strategies, institutional investors often omit or hastily consider a vital step in the investment decision process - choosing the right benchmark. In doing so, they may not understand the exposure they are receiving through fully or partially replicated portfolios and the cost implications of the benchmark they select.
At Northern Trust, we offer each investor the opportunity to actively design the benchmark before we manage passively to it. This allows us to deliver tailored beta exposure based on criteria such as:
In 2012 Northern Trust published a research paper on the customisation of indices which looked at global trends in index investing.
With the growth of assets managed in index strategies has come an awareness of the potential benefits of using alternative indices (known as “smart beta”) to capture certain risk premia and investment strategies without taking on the additional burden of increased risk analysis and the higher fees of active management. Please view our latest research on alternative indexing.
Our Engineered Solutions benefit from the expertise of our quantitative active research team. We work with our clients around the world to develop unique equity strategies designed to capture desired exposures, leveraging our research capabilities and thoughtful, customized portfolio construction to enhance returns while minimizing exposure to uncompensated risks.
We have built a key in-house capability in quality investing which is implemented across our strategies. Our research suggests that investments in high-quality companies outperform a benchmark with lower or similar volatility over time. If you are seeking quality portfolios that perform more consistently across various market environments you may benefit from incorporating Northern Trust’s Quality Score into your equity investment portfolios. You can learn more about Quality here.
Bert Rebelo CA, is responsible for managing product development across the asset management division of Northern Trust, including quantitative, enhanced and manager-of-managers, specifically to meet the needs of investors in Asia and supporting business development initiatives in the region.
He was previously in charge of Product Management for the Northern Trust Manager of Manager business in Europe, and prior to that a Vice President in Northern Trust's Compliance department.
Prior to joining Northern, he was a Compliance Manager at Royal & Sun Alliance Investment Management. He completed articles in Johannesburg, South Africa and qualified as a Chartered Accountant in 1996.
Bert holds a Bachelor of Commerce and a Bachelor of Accountancy degree from the University of the Witwatersrand (South Africa), and holds a Bachelor of Law (LLB) from Open University (UK). He is IMC qualified and holds the Regulation and Compliance paper from the Securities Institute.
This material is directed to eligible counterparties and professional clients only and should not be relied upon by retail investors. It is issued by Northern Trust Global Investments Limited, authorised and regulated by the Financial Services Authority in the United Kingdom. Registered office: 50 Bank Street, Canary Wharf, London E14 5NT, registered in England 03929218.