Provider Profiles
Northern Trust Corporation
| Profile | |
| Business Model§ | OCIO + other |
| Year Entered Into OCIO Business | 1979 |
| No. of Relationship Managers/Salespeople | 29 |
| No. of OCIO Portfolio Managers | 51 |
| OCIO % of Total Firm Revenue | Not available |
| No. of Clients, Full Discretion | 461 |
| Full Discretionary Assets | |
| Total Full Discretionary OCIO Assets | $105.2b |
| Discretionary Assets by Fund Type | |
| Defined Benefit | $41.7b |
| 401(k), 403(b), Other DC | $4.7b |
| Endowments/Foundation | $11.5b |
| Healthcare Pools (Board designated, funded depreciation) | $2.6b |
| Other | $44.7b |
| Portfolio Construction |
| Northern Trust Corporation's process is centered on Risk-Managed Growth philosophy. They believe in growing their client assets in a prudent way, taking targeted, compensated risks, and adjusting those risks based on market dynamics and client needs over time. They take a global approach and select asset classes thoughtfully, requiring that all asset classes serve a purpose whether it is capital appreciation, income, liability hedging or risk management. The asset classes they ultimately include in the portfolio allow for “efficient diversification”, the fewest number of asset classes needed to get the desired level of risk. Finally, they combine a long-term discipline with short-term flexibility in order to provide downside protection and upside participation. |
| §OCIO only: Open-architecture (no proprietary products used): Investment outsourcing is only business line. OCIO + other: An open-architecture/manager-of-manager investment outsourcing platform as one of multiple business lines. Implemented consulting: i.e. consulting firm that also has discretion over assigned assets. Proprietary/non-proprietary: An investment outsourcing platform that offers proprietary products alongside non-proprietary products. |