Managing Risk Purposefully for Better Investment Outcomes
Effective multi-asset investment strategies built with a time-tested, global asset allocation discipline and portfolio construction expertise.
Success is improving investor outcomes. We believe an optimal strategic asset allocation combined with an active tactical view provides a strong investor foundation while seeking to capitalize on near-term market opportunities.
Multi-asset strategies are constructed with multiple asset classes and designed to meet target returns or achieve investor outcomes. We can deliver these solutions as total or completion portfolios in scalable vehicles, model portfolios or bespoke solutions.
Why Northern Trust Asset Management for Multi-Asset Strategies?
Northern Trust Asset Management's deep expertise and experience as a discretionary asset manager responsible for total portfolio construction and investor outcomes for institutional and private clients provides a distinct and informed perspective and advantage.
Our strategies are built with a time-tested, global asset allocation discipline and enhanced by extensive risk management, portfolio construction and product fulfillment expertise.
Finding the Optimal Mix of Risk and Return
Portfolios seek only to take the necessary amount of risk to maximize return and meet investor goals
At the core of our process is the grounding belief that investors should be compensated for the risks they take – in all market environments and any investment strategy. As risk aware investors, we take risk intentionally to achieve investors’ desired outcomes.
Every investment we develop features efficient management needs and applies risk purposefully with conviction, quality and transparency. We build our multi-asset solutions as scalable portfolios for use on their own or to complement to an existing portfolio. To make sure our investors receive the greatest possible compensation for the risks they take, we:
- Employ a “forward-looking, historically aware” approach informed by extensive research.
- Use targeted exposure ETFs to keep risks and costs down while maintaining efficiency.
- Incorporate six key factors-quality, value, volatility, yield, size and momentum-to drive better potential outcomes.
- Take advantage of tactical opportunities when markets misprice assets.
The return required for pension plans to maintain their current funding levels — or the hurdle rate — has risen. They may need to find less conventional ways to boost performance.
A sputtering global economy likely will create more complications for investors in 2023. High yield bonds and natural resource stocks may help.
Increasing a pension plan’s private markets infrastructure allocation with a liquid, proxy investment with a similar risk/return profile.
Large advisor adopts turn-key multi-asset-class solutions that can be customized to meet varying client needs.
Not-for-Profit investor adopts turn-key multi-asset class solution to improve portfolio efficiency, capture alpha, and mitigate risks.