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, said the company.
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 US Equity Non-lending Fund, benchmarked to the Russell 3000 Index of US stocks;
- NTCC Emerging Manager Large Cap Non-lending Fund, benchmarked to the Russell 1000 Index of large-cap US stocks.
The funds currently utilize 11 sub-managers in a multi-manager structure.
Steve Potter, president of Northern Trust Global Investments (NTGI), the asset management arm of Northern Trust, said 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 has offered emerging manager programs since 1993 and invests approximately $5.7bn with more than 40 emerging investment management firms through its Manager-of-Managers Programs as of 31 March 2011.
