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Active Equity

Quality U.S. Value

Potential to deliver outperformance at lower volatility than the benchmark through the selection of value companies with a quality tilt toward higher cash flows, profitability and return on capital.

Our Philosophy

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

Overview

Navigating Value Investing

Investors want to avoid distressed companies since too much emphasis on cheap valuations can lead to bad investments. We designed this strategy to invest in value companies with high cash flows, profitability and return on capital to deliver long-term outperformance.

Benefits

Seeks Consistent Performance

Value Exposure, with a Tilt Toward Quality

Active Management at a Low Cost

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How It Works

Identify Value Companies

Evaluate U.S. large cap stocks, using current and normalized valuations over the economic cycle.

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How It Works

Screen for Quality

Score and rank value companies based on high cash flows, profitability and return on capital.

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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

Optimize Portfolio to Balance Risk, Return and Cost Objectives

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

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Who it's for

Investors Seeking Value Exposure

Strategy seeks exposure to high value characteristics that have historically outperformed over full 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 U.S. Value 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.

     

    At Northern Trust Asset Management (“NTAM”), we define Sustainable Investing as encompassing all of NTAM’s investment strategies and accounts that utilize values based and norms based screens, best-in-class and ESG integration, or thematic investing that may focus on a specific ESG issue such as climate risk. NTAM’s Sustainable Investing includes portfolios designed by NTAM as well as those portfolios managed to client-defined methodologies or screens. As the data, analytical models and aforementioned portfolio construction tools available in the marketplace have evolved over time, so too has NTAM. NTAM’s Sustainable Investing encompasses strategies and client assets managed in accordance with client specified responsible investing terms (historically referred to as Socially Responsible), as well as portfolios that leverage contemporary approaches and datasets, including ESG analytics and ESG thematic investing.

     

    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.