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Active Equity

Quality Large Cap Core

Designed to deliver outperformance by investing in a diverse portfolio of undervalued, high quality companies with positive momentum.

Our Philosophy
We believe investors should be compensated for the risks they take — in all market environments and any investment strategy.

Overview

Seeking Consistency in Large Caps

Large-cap equities are often a significant portion of investor portfolios, making them a key potential contributor (or detractor) when it comes to achieving your clients goals. We designed this strategy with an objective to deliver attractive risk-adjusted returns by implementing a systematic investment process that also seeks to control for undesirable risks.

Benefits

Seeks Attractive Risk-Adjusted Returns

Potential for Greater Consistency Through High Quality Focus

Transparent, Cost-Effective Active Management

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Principles of Investing

Focus on Persistent Sources of Excess Return

Our strategies target systematic sources of excess return that have been proven over long periods.

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Principles of Investing

Seeking to Improve Risk-Adjusted Returns by Integrating a High-Quality Foundation

The inclusion of a proprietary quality factor roots our security selection process in strong company fundamentals and has shown to potentially improve risk-adjusted returns over time.

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Potential Improvements in Sharpe Ratio for Factor-Mimicking Portfolios Driven by Addition of the Quality Factor

Source: Morningstar, Northern Trust Asset Management.December 31, 1996 to June 30, 2023. Past performance is no guarantee of future results. Index performance returns do not reflect any management fees, transaction costs, or expenses. It is not possible to invest directly in any index. Indexes are the property of their respective owners, all rights reserved.

Principles of Investing

Utilize a Systematic Approach to Maximize Efficiency

Generating excess returns is important but risk and cost effectiveness are critical. We believe utilizing a systematic investment approach enables our strategies to seek to deliver on all three objectives consistently.

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A Systematic Approach Maximizes Efficiency

Past performance is no guarantee of future results. Index performance returns do not reflect any management fees, transaction costs, or expenses. It is not possible to invest directly in any index. Indexes are the property of their respective owners, all rights reserved.

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How it works

Target Risk Factors to Seek Outperformance Over a Market Cycle

Identify securities that exhibit high quality, high value and positive momentum characteristics.

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How it works

Quality is Key

Our approach identifies high quality companies that exhibit prudent management of capital, strong profitability and consistent cash flow generation relative to their sector peers.

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How it works

Establish Controls That Can Help Limit Undesired Risks

Set strict constraints to limit overconcentration within sectors, regions and individuals stocks.

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How it works

Optimization of Portfolio That Can Help Balance Risk, Return and Cost Objectives

A final optimization is conducted to verify the portfolio maximizes exposure to the high quality, high value and positive momentum characteristics and seeks to minimize any excess risks that don’t contribute to outperformance.

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Who it's for

Investors Seeking Exposure to Compensated Factors

High quality, high value and positive momentum stocks have generally outperformed over market cycles.

Investors Seeking Consistent Returns Over Time

Repeatable processes center on risk management to deliver attractive risk‑adjusted returns.

Investors Seeking Cost-Effective Active Management

A systematic approach enables access to proven drivers of excess return, cost‑effectively.

Quality Large Cap Core Documents

Literature

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    Contact Us

    Interested in learning more about our investment strategies? 

    All securities investing and trading activities risk the loss of capital. Each portfolio is subject to substantial risks including market risks, strategy risks, advisor risk, and risks with respect to its investment in other structures. There can be no assurance that any portfolio investment objectives will be achieved, or that any investment will achieve profits or avoid incurring substantial losses. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Risk controls and models do not promise any level of performance or guarantee against loss of principal. Any discussion of risk management is intended to describe NTAM’s efforts to monitor and manage risk but does not imply low risk. This information is general in nature and should not be construed as tax advice. Please consult a tax advisor or professional as to how this information may affect your particular circumstance.

     

    Environmental, Social and Governance (ESG) investing involves certain risks because the methodology of an underlying index selects and assigns weights to securities of issuers for nonfinancial reasons, a strategy may underperform the broader equity market or other strategies that do not utilize ESG criteria when selecting investments. The companies selected by an index provider as demonstrating ESG characteristics may not be the same companies selected by other index providers that use similar ESG screens. In addition, companies selected by an index provider may not exhibit positive or favorable ESG characteristics. Regulatory changes or interpretations regarding the definitions and/or use of ESG criteria could have a material adverse effect on a strategy’s ability to invest in accordance with its investment policies and/or achieve its investment objective.

     

    Not FDIC Insured | May Lose Value | No Bank Guarantee

    Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company.