Northern Trust has expanded its lineup of target date investment applications with a series of multi-manager funds for ERISA-qualified defined contribution retirement plans.
The Northern Trust Multi-Manager Target Date Funds combine non-proprietary active managers and cost-effective index management in an asset allocation process which seeks to provide participants with broad, diversified asset class exposure.
Northern Trust Multi-Manager Target Date Funds are offered in 10-year increments, with retirement dates beginning in 2010, in addition to the NT Multi-Manager Income fund, for current retirees. Each fund systematically adapts portfolio allocations over a period of time with strategies that roll down a “glidepath” from aggressive to conservative investments, aligning appropriate risk levels with the participant’s approximate target retirement date.
The multi-manager funds use a careful mix of active and passive management, aiming to minimize conflicts of interest by selecting non-proprietary investment managers to handle the active allocations.
“Our new target date funds utilize a multi-style, multi-advisor approach to investing,” says Andrew Smith, chief investment officer, Northern Trust Global Advisors (NTGA), the multi-manager subsidiary of Northern Trust.
“By carefully selecting a group of independent, specialized investment advisors with complementary styles and disciplines, closely monitoring the results and making changes when appropriate, the Northern Trust Multi-Manager Target Date Funds seek to achieve returns above those of a relevant benchmark with attractive risk characteristics.”
“The Northern Trust glidepath and our suite of target date investment solutions leverage our experience managing total investment programs for institutional clients and seek to bring defined benefit investing discipline to defined contribution investors,” says Janet Yang, investment product manager, Northern Trust.
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