Consistent Portfolio Income Through High Quality Companies
Investors struggling to find income often reach for yield, exposing themselves to undesired risks. We built this strategy to deliver dependable income in a risk-efficient manner, by investing in high-quality companies while controlling for unintended risks.
Benefits
Strong Dividend Yield, Targeting Up to 2x That of the Broad Market
Quality Enhances the Consistency of Income and Return Objectives
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 Dividend Payers and High Quality Companies
Seek dividend paying 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 Risk-Controls That Limit Unintended and Unrewarded Exposures
Set strict constraints to limit large active risk within sectors, regions, and individual stocks
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How it Works
Construct a Portfolio That Targets Yield and Quality in a Controlled Manner
Generate a high level of income through high quality stocks in a sector- and region-neutral portfolio
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How it Works
Optimize Portfolio to Balance Risk, Return and Cost Objectives
A final stringent review and optimization is conducted to verify the portfolio maximizes exposure to the high quality and high income characteristics, has minimized any excess risks that don’t contribute to outperformance, and is positioned to be implemented and managed cost-effectively.
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Who it's for
Investors Seeking Income With Capital Appreciation
Quality dividend-paying stocks can deliver compelling total return over time.
Investors Seeking to Improve Portfolio Income Through Equity Allocation
Strategy targets yield of 1.5x – 2.0x benchmark.
Investors Seeking Cost-Effective Active Management
A systematic approach enables our portfolio management team to gain exposures to the key sources of portfolio outperformance, in a cost-effective manner.
Portfolio
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We measure success as achieving investor outcomes and delivering an exceptional client experience.
2024 Investment Outlook: Falling Inflation and Rates, Rising Political Risk
Rate cuts and lower inflation likely will accompany slower economic growth and a rise in global political risks in 2024 — meriting some caution on equities.
Our investment experts examine the intersection of falling interest rates, a slowing economy and moderating inflation to reveal possible risks — and opportunities — across markets in the year ahead.
How an Economic Slowdown Could Surprise the Market
We think investors have sometimes interpreted bad news for the economy as good news for stocks, hoping that a slowing economy would temper inflation and the Federal Reserve's rate hiking campaign. That interpretation may change soon.
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.
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.
