Top of the Line Thinking
The Northern Global Tactical Asset Allocation Fund Takes Broad Measure of the World Economy and Financial Markets

October 2011

Process. Diversification. Timeliness.

These terms define the Northern Global Tactical Asset Allocation Fund, once an institutional-only product but now available to retail investors, who can share the advantages of an approach that annually updates strategic exposures to stocks, bonds, cash and real assets, makes tactical bets to over- and underweight these strategic norms and rebalances regularly.

The Fund is designed to provide easy and competitively priced access to Northern Trust's best investment thinking by leveraging asset allocation recommendations of Northern Trust's Investment Policy Committee (IPC). But, for co-portfolio managers Peter Flood and Dan Phillips, the processes driving the Fund's strategic and tactical positioning are anything but easy. Changes made to the Fund's asset mix represent a rigorous decision-making process.

As a fund-of-funds, the Northern Global Tactical Asset Allocation Fund can invest in mutual funds, ETFs and other securities and investments.

With broad diversification at their command, Flood and Phillips fine-tune the portfolio to put risk on — or off — the table. Their moves draw upon the expertise of Northern Trust's IPC and Tactical Asset Allocation committee and global portfolio managers.

Things change
The rationale for tactical asset allocation is straightforward: Economic and market outlooks and conditions are in flux. Being in the right asset class in the right amount at the right time is important for growing and preserving wealth.

Which is where Northern Trust's allocation process comes into play.

The Fund's objective of capital appreciation and current income reflects IPC's model portfolio, with a structure based on the same strategically weighted, global blend of traditional and alternative asset classes.

"We're long-horizon investors," says Flood, "but with flexibility to respond to evolving economic and market developments."

Moving target
The IPC meets at least monthly to update investment outlooks for each geographic region and asset class for the next 12 to 18 months. Tactical changes to the Fund's risk level and positioning relative to its benchmark weights are made as appropriate. Which is good, since in a fast-moving world, pictures can be blurry. "We believe the key is to get the big picture right," says Flood, "and we have demonstrated that we have the people and processes to do that."

Past performance is no guarantee of future performance.

Asset Allocation Risk: An asset allocation strategy does not guarantee any specific result or profit nor protect against a loss.

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.

Interest Rate Risk: Increases in prevailing interest rates will cause fixed income securities, including convertible securities, held by the Fund to decline in value.

International Risk: International investing involves increased risk and volatility.

©2014 Northern Funds
Home  |   Prospectuses  |   Proxy Voting  |   Privacy  |   Site Map

©2014. This content is for your personal use only, subject to Terms and Conditions. No redistribution allowed.

Not FDIC insured | May lose value | No bank guarantee

An investment in Northern Funds is not insured by the FDIC, and is not a deposit or obligation of, or guaranteed by The Northern Trust Company or any affiliate. An investment in Northern Funds involves risks, including possible loss of principal.

Shares of the Northern Funds are offered only by a current Prospectus and are intended solely for persons to whom shares of US registered funds may be sold. This site shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of shares of the Northern Funds in any jurisdiction in which such offer, solicitation or sale would be unlawful.

©2014 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.