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Multi-asset

Diversified Strategist Portfolios – Tax Sensitive

Globally diversified multi-asset portfolios providing tax-sensitive institutions solutions to achieve a range of investment objectives.
Our Philosophy
We believe investors should be compensated for the risks they take — in all market environments and any investment strategy.

Overview

Multi-Asset Portfolios for Taxable Institutions 

Managing large asset pools is difficult; and it is especially complex for institutions managing taxable assets. We built these globally diversified portfolio for institutions who are seeking to achieve a range of investment objectives in a tax-efficient manner.
Benefits
Portfolios Tailored to Institutional Investment Objectives
Cost- and Tax-Efficient
Seeks Attractive Risk-Adjusted Returns

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Principles of Investing

Establish a Resilient Foundation to Navigate Changing Markets

An optimal strategic allocation rooted in proprietary research and focused on the purposeful application of risk across asset classes provides a robust portfolio framework. Targeting only compensated risk, our team manages risk across the entire portfolio to attempt to consistently achieve expected outcomes.

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Principles of Investing

Thoughtfully Capitalize on Near-Term Market Opportunities

As long-term investors, we don’t chase performance or the latest fads. We seek to add value by exploiting near-term market opportunities via a disciplined tactical approach. Risk management techniques are incorporated to seek to conform tactical moves to investor expectations.

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Principles of Investing

Target Risk Factors That Have Consistently Outperformed Over Time

Our portfolios are constructed with factor-based ETFs designed to improve risk-, cost- and tax-efficiency. Specifically, within our equity allocations, we invest in factors that target persistent sources of excess returns with proven outperformance over the past 20 years.

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Equity Factor Outperformance — Last 20 Years

Return and Risk-Adjusted Return of Common Factors (MSCI World Universe)

Source: Morningstar, Northern Trust Asset Management. June 1, 1994 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.

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How it works

Strategic Asset Allocation

Our time-tested strategic asset allocation process begins with Capital Market Assumptions, a 40+ hour annual process where our Investment Policy Committee forecasts long-term asset class returns (5-year+ time horizon).

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How it works

Portfolio Development

We work to develop two portfolios: a Risk Asset (market) Portfolio, comprised of high yield bonds, global equities and real assets, and a Risk Control (term) Portfolio, made up of cash, investment-grade and inflation-linked bonds.

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How it works

Optimization

We then combine these two portfolios through an optimization process. The relative weighting depends on the investor’s level of risk aversion.

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How it works

Tactical Asset Allocation

The committee meets monthly to review the economic environment and identify opportunities and risks over a 12 month horizon resulting in base and risk case scenarios and potential changes to tactical asset allocation.

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How it works

Fund Selection

For over 25 years, we have taken a factor-based approach to security selection. The primary tenets of our investing technique are our approach to quality, multi-factor construction, and purity in factor exposure.

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Who it's for
Long-Term Investors
Portfolios designed for a smoother investor experience throughout changing market conditions.
Taxable Institutions
Globally diversified portfolios designed for taxable institutional asset pools.
Investors Seeking Cost-Effective Active Management
Portfolios implemented with cost‑effective strategies and investment vehicles.

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    Contact Us

    Interested in learning more about our investment strategies? 

    Neither Asset Allocation nor Diversification guarantee a profit or protect against a loss in a declining market. They are methods used to help manage investment risk.

    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 simply lower 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.