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Top of the Line Thinking
The Northern Global Tactical Asset Allocation Fund takes broad measure of the world
economy and financial markets
Process. Diversification. Timeliness.
These terms define the Northern
Global Tactical Asset Allocation Fund,
once an institutional-only product but
now available to retail investors, who can
share the advantages of an approach that
annually updates strategic exposures to
stocks, bonds, cash and real assets, makes
tactical bets to over- and underweight these
strategic norms and rebalances regularly.
The Fund is designed to provide
easy and competitively priced access
to Northern Trust’s best investment
thinking by leveraging asset allocation
recommendations of Northern Trust’s
Investment Policy Committee (IPC). But,
for co-portfolio managers Peter Flood and
Dan Phillips, the processes driving the
Fund’s strategic and tactical positioning
are anything but easy. Changes made to
the Fund’s asset mix represent a rigorous
decision-making process.
As a fund-of-funds, the Northern
Global Tactical Asset Allocation Fund can
invest in mutual funds, ETFs and other
securities and investments.
With broad diversification at their
command, Flood and Phillips fine-tune
the portfolio to put risk on — or off — the table. Their moves draw upon the
expertise of Northern Trust’s IPC and
Tactical Asset Allocation committee and
global portfolio managers.
Things change
The rationale for tactical asset allocation
is straightforward: Economic and market
outlooks and conditions are in flux. Being
in the right asset class in the right amount
at the right time is important for growing
and preserving wealth. Which is where Northern Trust’s
allocation process comes into play.
The Fund’s objective of capital
appreciation and current income reflects
IPC’s model portfolio, with a structure
based on the same strategically weighted,
global blend of traditional and alternative
asset classes.
“We’re long-horizon investors,” says
Flood, “but with flexibility to respond
to evolving economic and market
developments.”
Fund’s risk level and positioning relative
to its benchmark weights are made as
appropriate.
Which is good, since in a fast-moving
world, pictures can be blurry.
“We believe the key is to get the big
picture right,” says Flood, “and we have
demonstrated that we have the people
and processes to do that.” Moving target
The IPC meets at least monthly to update
investment outlooks for each geographic
region and asset class for the next 12
to 18 months. Tactical changes to the
Interest Rate Risk: Increases in prevailing
interest rates will cause fixed income
securities, including convertible securities,
held by the Fund to decline in value.
Past performance is no guarantee of
future performance.
Asset Allocation Risk: An asset allocation
strategy does not guarantee any specific
result or profit nor protect against a loss.
Equity Risk: Equity securities (stocks) are
more volatile and carry more risk than other
forms of investments, including investments
in high-grade fixed income securities. The
net asset value per share of this Fund will
fluctuate as the value of the securities in the
portfolio changes.
International Risk: International investing
involves increased risk and volatility.
Please carefully read the prospectus and summary prospectus and consider the
investment objectives, risks, charges and expenses of Northern Funds before investing.
Call 800-595-9111 to obtain a prospectus and summary prospectus, which contain this
and other information about the funds.
Northern Funds Distributors, LLC
Three Canal Plaza, Suite 100
Portland, Maine 04101
Not affiliated with Northern Trust.
© 2011 NORTHERN FUNDS