Northern Trust Launches Emerging Manager Funds for Institutional Investors

CHICAGO--(BUSINESS WIRE)-- Northern Trust announced today it has launched two emerging manager collective funds for institutional investors. The Emerging Manager U.S. Equity Funds are designed to provide access to smaller, undiscovered investment boutiques with the primary objective of generating excess returns for corporate and public pension plan investors.

“We are pleased to offer these new funds, making the investment expertise of emerging managers available to a broader array of institutional investors in a cost-effective vehicle,” said Steve Potter, President of Northern Trust Global Investments (NTGI), the asset management arm of Northern Trust. “As a pioneer in the emerging manager space and a recognized source for research on emerging managers, Northern Trust is well-positioned to bring the potential benefits of these specialist firms to the market with the appropriate level of risk management and transparency.”

Northern Trust’s emerging manager funds are daily valued collective funds open to ERISA-qualified corporate and public employee pension plan investors. The Northern Trust Company of Connecticut (NTCC) serves as the trustee, selects sub-managers and monitors the investments of each sub-manager in the two funds:

• NTCC Emerging Manager U.S. Equity Non-lending Fund, benchmarked to the Russell 3000 Index of U.S stocks;
• NTCC Emerging Manager Large Cap Non-lending Fund, benchmarked to the Russell 1000 Index of large-cap U.S. stocks.

The funds currently utilize 11 sub-managers in a multi-manager structure.

“Our research* over many years has demonstrated that emerging managers offer the potential for superior performance. The Emerging Manager U.S. Equity Funds provide access to these emerging managers while reducing single-manager risk through manager diversification,” said Christopher Vella, Global Director of Research for Manager-of-Managers Programs at Northern Trust. “The funds also may provide exposure to a diverse group of investment managers.”

The Emerging Manager U.S. Equity Funds are structured utilizing the same philosophy and process employed across all Northern Trust multi-manager portfolios. The emerging manager funds may be used as a core holding within a diversified actively managed asset allocation framework or as a satellite allocation complementing a predominantly passive investment approach.

Northern Trust has offered emerging manager programs since 1993 and invests approximately $5.7 billion with more than 40 emerging investment management firms through its Manager-of-Managers Programs as of March 31, 2011. The manager-of-managers approach is designed to help large institutional investors access these smaller firms by addressing capacity constraints and concerns about due diligence, business risks, and administrative overhead. The appropriate implementation of a multi-manager fund is possible through extensive manager research and expertise in portfolio construction.

Northern Trust is a leading provider of multi-manager investment solutions, with $43.5 billion under management in multi-manager programs and funds for institutional and personal clients as of March 31, 2011. Having investments with more than 200 external managers worldwide, program solutions range from retail mutual funds and alternative asset classes to Emerging Manager programs and total investment program management for institutions and affluent individuals and families.

Northern Trust Global Investments (NTGI) is the multi-asset class investment management business of Northern Trust Corporation. NTGI comprises Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., the investment advisor division of The Northern Trust Company and Northern Trust Global Advisors, Inc. and its subsidiaries.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2011, Northern Trust had assets under custody of US$4.4 trillion, and assets under investment management of US$662.2 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com.

(* No Contest: Emerging Managers Lap ElephantsNorthern Trust white paper, 2010)

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Source: Northern Trust