Strengthen your investment management process
with the expertise of a leading global asset manager
with the expertise of a leading global asset manager
STRATEGIC AND TACTICAL ASSET ALLOCATION GUIDANCE
Putting our asset class and market forecasts - and our global themes - into action
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STRATEGIC ASSET ALLOCATION (SAA)
-Setting the Foundation-
We seek to establish an optimal strategic allocation to serve as the investor's foundation. Grounded in our Capital Market Assumptions, we employ a "forward-looking, historically aware" approach informed by extensive research.
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TACTICAL ASSET ALLOCATION (TAA)
-Capitalizing on Opportunities-
We seek to add value by exploiting near-term financial market opportunities. Risk management techniques are incorporated to ensure TAA deviation from SAA conforms to investor expectations.
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Our tactical global policy model has provided higher returns
– and lower risk – than a 60/40 portfolio.
– and lower risk – than a 60/40 portfolio.
| See how our asset allocation expertise can benefit your practice |
1
Long-term return forecastshelp manage client
expectations regarding
the outlook for their
investments
2
Strategic asset allocationguidance
facilitates the investment
policy statement development
process and helps to align client
goals with appropriate risk profiles
3
Tactical asset allocationrecommendations
provide insight on the near-term
risk-taking environment and
potential opportunities
PUT THE POWER OF OUR PROCESS TO WORK FOR YOUR CLIENTS
Our time-tested asset allocation process is transparent and flexible,
and relevant to investors of all levels of sophistication,
with any investment goal and any risk tolerance Get started with these foundational resources:
and relevant to investors of all levels of sophistication,
with any investment goal and any risk tolerance Get started with these foundational resources:
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ASSUMPTIONS Ten-year asset class return expectations to support your investment management practice |
TEMPLATES Strategic and tactical recommendations for global and domestic multi-asset portfolios |
LIBRARY Retail client-friendly charts to assist in reviewing our asset allocation positioning and performance |
LEARN MORE ABOUT OUR
CAPITAL MARKET ASSUMPTIONS PROCESS
CAPITAL MARKET ASSUMPTIONS PROCESS
Each year, Northern Trust’s Capital Market Assumptions Working Group develops forward-looking, historically aware forecasts for global economic activity and financial market returns — which drive our ten-year asset class return expectations.


