Large Cap Allocation Can Significantly Impact Portfolio Returns
Large-cap holdings are a significant component of a portfolio, making it critical to find the right strategy. We designed this strategy for superior risk-adjusted returns, using an efficient investment process to take risks that are most likely to pay off.
Benefits
Efficient Exposure to Multiple Compensated Factors
Seeks Attractive Risk-Adjusted Returns Through a Full Market Cycle
Transparent, Cost-Effective Active Management
This is a carousel with slides. Use Next and Previous buttons to navigate.
Slide 1 of 3
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.
1 / 3
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.
2 / 3
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.
3 / 3
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.
This is a carousel with slides. Use Next and Previous buttons to navigate.
Slide 1 of 4
How it Works
Targets Factors to Seek Outperformance Over a Market Cycle
Invests in persistent factor premiums of quality, value, and momentum to enhance risk-return profile.
1 / 4
How it Works
Quality is Complementary
Our approach identifies high quality companies that exhibit prudent management of capital, strong profitability, and consistent cash flow generation relative to their sector peers.
2 / 4
How it Works
Establish Risk-Controls That Limit Unintended and Uncompensated Exposures
Set strict constraints to limit large active risk within sectors, regions, and individual stocks.
3 / 4
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, high value and positive momentum characteristics has minimized any excess risks that don’t contribute to outperformance, and is positioned to be implemented and managed cost-effectively.
4 / 4
Who it's for
Investors Seeking Exposure to Compensated Factors
High quality, high value and positive momentum stocks have 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.
Portfolio
Select a Strategy
Strategy Name
eVestment Universe
Benchmark
Inception Date
Investment Vehicles Available
Team Expertise
We measure success as achieving investor outcomes and delivering an exceptional client experience.
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.
