Multi-Factor Strategies Built with Precision
Michael Hunstad, Ph.D.
Head of Quantitative Strategies
Head of Quantitative Research & Client Solutions - AUS & NZ
Proprietary factor signals and smarter construction creates multi-factor strategies focused on taking compensated risks.
Quantitative strategies seek to outperform a benchmark by exploiting market anomalies and behavioral biases using proprietary, quantitative models and processes to select securities, construct portfolios, and manage risk to deliver targeted outcomes.
Our diverse quantitative strategies combine investment professionals’ expertise with sophisticated quantitative models to meet the needs of investors at any level, from institutional investors and advisors to individuals and their families.
Northern Trust quantitative strategies are cost-efficient, perform as designed, take intentional compensated risks and improve asset allocation through purer factor exposures. We focus on multi-factor portfolio construction using our proprietary definitions for quality, value, volatility, and momentum to enhance risk-adjusted returns.
$20.5BFactor Investing Assets Under Management
25+Years of Experience
*As of September 30, 2020. Source: Northern Trust Asset Management (NTAM) Finance.
Our proprietary factor signals and multi-factor construction are designed to produce more reliable results for investors.
We seek to add investment value across several essential dimensions:
Northern Trust Asset Management offers a comprehensive range of strategies – equity, fixed and multi-asset – and integrated global investment platform to help institutional investors pursue their objectives.
A multi-factor strategy seeking to efficiently deliver excess returns by investing in a diverse portfolio of undervalued, high-quality large cap companies with positive momentum.
The multi-factor strategy uses our proprietary quality score to build on the proven power of value investing, aiming to increase returns and reduce volatility.
The multi-factor strategy seeks to build a diverse, higher-quality portfolio that delivers consistent returns and a high dividend yield while mitigating unintended risks.
A multi-factor strategy designed to be a diverse, higher-quality and lower-volatility portfolio that delivers strong up-market participation and down-market protection.
A sustainably designed quantitative approach to investing at the intersection of high-quality and highly rated ESG companies.
The strategy seeks to use a quantitatively-driven approach to gain efficient exposure to high-quality, and positive momentum stocks within a risk-controlled framework to generate consistent risk-adjusted returns relative to the S&P/ASX 300 Index.
Regulatory restrictions notwithstanding, many companies will be able to maintain their dividend payouts despite ongoing market events.
Even though factor investing is widely supported in academia and investment practice, forecasting and harvesting factor returns remains challenging for various reasons. One signal that has received more than a little attention of late is share buybacks.
We are in a new era of extreme volatility that is leaving investors searching for new ways to achieve the same portfolio objectives.
After a decade of underperformance by value stocks, even the biggest supporters are starting to lose faith. Should they?
An investment in Northern Funds involves risks, including possible loss of principal. Equity Risk: Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed-income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes. Environmental, Social and Governance (ESG) Investing Risk: is the risk stemming from the environmental, social and governance factors that the Fund applies in selecting securities. The Fund's ESG screening process may affect exposures to certain companies or industries and cause the Fund to forego certain investment opportunities. Large Cap Stock Risk: The risk that large-capitalization stocks as a group could fall out of favor with the market, causing the fund to underperform investments that focus solely on small- or medium-capitalization stocks. Small-Cap Risk: Small-capitalization funds typically carry additional risks since smaller companies generally have a higher risk of failure. Their stocks are subject to a greater degree of volatility, trade in lower volume and may be less liquid. International Risk: International investing involves increased risk and volatility. Value Risk: Value-based investments are subject to the risk that the broad market may not recognize their intrinsic value. For more important risk information, please visit individual fund pages information.
Please carefully read the prospectus and summary prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds before investing. Call 800-595-9111 to obtain a prospectus and summary prospectus, which contains this and other information about the funds.
Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.
Northern Trust Corporation. Head Office: 50 South La Salle 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.
Northern Trust Asset Management comprises Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.
The Northern Trust Company holds Australian Financial Services Licence (“AFSL”) No. 314970 ARBN 126 279 918 issued by the Australian Securities and Investments Commission (ASIC). Pursuant to current ASIC Class Order/transitional relief, Northern Trust Global Investments Limited (“NTGIL”) ARBN 601 851 594 is exempt from the requirement to hold an AFSL under the Corporations Act. NTGIL is authorised and regulated by the FCA under UK laws, which differ from Australian laws. Similarly, pursuant to current ASIC Class Order/transitional relief, The Northern Trust Company of Hong Kong Limited (“TNTCHK”) ARBN 601 850 891 is also exempt from the requirement to hold an AFSL under the Corporations Act. TNTCHK is authorized and regulated by the SFC under Hong Kong laws, which differ from Australian laws. For investors in Australia, material on this website is directed to and should only be accessed by wholesale and professional investors within the meaning of the Corporations Act 2001 (Cth) and is not intended for retail clients. For investors in New Zealand, this material is directed to and should only be accessed by registered financial service providers and is not intended for retail clients.