CHICAGO--(BUSINESS WIRE)--Northern Trust announced today that it has opened its Northern Global Tactical Asset Allocation Fund (BBALX) to individual investors. The competitively priced fund of funds seeks to provide long-term capital appreciation and current income. It is designed for long-term investors seeking diversification among various traditional and alternative asset classes, including domestic and international stocks; investment grade and high yield bonds; real assets such as natural resources, gold and global real estate; and cash.
The Northern Global Tactical Asset Allocation Fund received an overall Morningstar rating of four stars among 847 moderate allocation funds as of September 30, 2011. It received five stars for the 3-year rating among 847 moderate allocation funds. The fund surpassed both its benchmark and the Morningstar category average for the three-year period ending September 30, 2011. The fund has a minimum initial investment of $2,500 and a net expense ratio of .68%1.
“This fund gives investors an opportunity to benefit from Northern Trust’s best investment thinking,” Northern Trust Chief Investment Officer Bob Browne said. “The fund’s global asset class weightings are based on Northern Trust’s Investment Policy Committee asset allocation process, incorporating both long-term strategic and shorter-term tactical inputs.”
The Northern Global Tactical Asset Allocation Fund is managed by Co-Portfolio Managers Peter J. Food and Daniel J. Phillips. Flood has worked at Northern Trust since 1979 while Phillips joined Northern Trust in 2005.
The Northern Global Tactical Asset Allocation Fund made the transition to its current investment strategy on April 1, 2008, converting from a traditional balanced fund format. Until previously this year, the fund was registered as the Northern Institutional Global Tactical Asset Allocation Portfolio and was primarily intended for institutional clients. The performance record from the Northern Institutional Global Tactical Asset Allocation Portfolio has been carried over to the Northern Global Tactical Asset Allocation Fund. It will also maintain the same investment objectives, strategy, policies, net expense, ticker symbol and tax I.D. as the original institutional fund.
1The net expense ratio, as reported in the most recent prospectus, includes contractual expense reimbursement that, if not extended, will end on July 31, 2012. The gross expense ratio is 1.64%.
Past performance is no guarantee of future results. Ratings reflect fee waivers in effect; in their absence, ratings may have been lower. Performance data current to the most recent month end is available at northernfunds.com.
About Morningstar Ratings
Star ratings are based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The overall rating is a weighted average of the 3-, 5-, and 10-year (if applicable) returns. 5 stars = top 10% of funds in an asset category; 4 stars = next 22.5% of funds; 3 stars = next 35%; 2 stars = next 22.5% and 1 star = next 10%. A fund must be in existence three years to be rated. Ratings are subject to change monthly.
Northern Global Tactical Asset Allocation Fund received a four star rating for the 5-year period among 711 funds and a three star rating for the 10-year period among 386 funds. These ratings are as of September 30, 2011.
©2011 Morningstar, Inc. All Rights Reserved. Morningstar and/or its content providers are the proprietors of this information; do not permit its unauthorized copying or distribution; do not warrant it to be accurate, complete or timely; and are not responsible for damages or losses arising from its use.
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.
Interest Rate Risk: Increases in prevailing interest rates will cause fixed income securities, including convertible securities, held by the Fund to decline in value.
| Returns as of 9/30/11 | ||||||||
| 1 Year | 3 Year | 5 Year | 10 Year | |||||
| Northern Global Tactical Asset Allocation Fund | -0.87 | 4.65 | 1.46 | 3.17 | ||||
| Asset Allocation Blend Index | 0.64 | 4.00 | 1.66 | 4.92 | ||||
| Morningstar Moderate Allocation Category Index | -0.42 | 3.44 | 1.00 | 3.91 | ||||
Asset Allocation Blend Index consists of 55% Russell 1000® Index, 30% Barclays Capital U.S. Aggregate Index and 15% MSCI EAFE® Index and MSCI Emerging Markets Index. It is not possible to invest directly in an index.
Prior to July 29, 2011 the Fund was registered as the Northern Institutional Global Tactical Asset Allocation Portfolio. The performance record from the Northern Institutional Global Tactical Asset Allocation Portfolio has been carried over to the Northern Funds Global Tactical Asset Allocation Fund. The Fund's investment strategy changed from a traditional balanced fund to an asset allocation fund, operating as a fund of funds, on April 1, 2008.
Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here.
The Advisor has agreed to reimburse certain expenses of the Fund. The contractual reimbursement arrangement is expected to continue until at least July 31, 2012. After this date, the contractual arrangements may be terminated if it is determined to be in the best interest of the Fund and its shareholders. In the absence of fee waivers, yield, total return, growth since inception and dividends would have been reduced. Total return is based on net change in NAV assuming reinvestment of distributions.
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 contains this and other information about the funds.
Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.
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 September 30, 2011, Northern Trust had assets under custody of US$4.2 trillion, and assets under investment management of US$644.2 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.