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Global Tactical Asset Allocation

 
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  • Snapshot
  • Performance
  • Portfolio
  • Management
  • Fund Documents
Snapshot
For those long-term investors looking to diversify your investment among various asset classes (stocks, bonds, commodities, and other) both domestic and foreign. The Fund seeks to provide long-term capital appreciation and current income. The Fund invests primarily in shares of a combination of underlying mutual funds and exchange-traded funds ("ETFs"), with its asset allocation model adjusted based on changing market conditions. The Fund will invest significantly in companies that are represented in diversified foreign indices. Dividends, if any, are declared and paid quarterly. Capital gains, if any, are distributed at least annually.

Fund Objective
Capital Appreciation and Current Income
Fund Strategy
  • Diversify among various asset classes (stocks, bonds, commodities, and other) both domestic and foreign. The allocation will be based on an asset allocation framework developed by the Investment Policy Committee of The Northern Trust Company (TNTC) and Northern Trust Investments, Inc. (NTI).
  • Invest significantly in funds that invest in companies that are located outside of the U.S. as represented in either the MSCI EAFE® Index, MSCI Emerging Markets Index or other diversified foreign indices.
  • Monitor the current asset allocation framework regularly to ensure the allocation is aligned with evolving investment views amid changing market and economic conditions.
Investor Profile
For those long-term investors looking to diversify your investment among various asset classes (stocks, bonds, commodities, and other) both domestic and foreign, then this Fund may be right for you.
Risk/Reward Potential
”Risk/Reward
Asset Allocation Weightings (As of 03/31/19)
Asset ClassInvestment VehicleHoldings Weight
U.S. Equity FlexShares Morningstar US Market Factor TILT Index Fund 17.3
U.S. Equity FlexShares US Quality Dividend Index Fund 7.5
Non U.S. Equity - Developed FlexShares Morningstar Developed Markets ex-US Factor TILT Index Fund 9.7
Non U.S. Equity - Developed Flexshares International Quality Dividend Index Fund 5.8
Non U.S. Equity - Emerging Markets FlexShares Morningstar Emerging Market Factor TILT Index Fund 7.8
Global Real Estate FlexShares Global Quality Real Estate Index Fund 4.0
U.S. Bonds - High Yield iShares iBoxx High Yield Corporate Bond 10.9
U.S. Bonds -
Investment Grade
FlexShares Credit-Scored US Corporate Bond Index Fund 6.8
U.S. Bonds -
Investment Grade
FlexShares Disciplined Duration Fund 3.7
U.S. Bonds -
Investment Grade
FlexShares Credit-Scored US Long Corporate Bond Index Fund 0.6
U.S. Bonds -
Investment Grade
iShares 1-3 Year Credit Bond ETF 0.8
U.S. Bonds -
Investment Grade
iShares 3-7 Year Treasury Bond Fund 5.0
U.S. Bonds -
Investment Grade
iShares 7-10 Year Treasury Bond Fund 0.8
U.S. Bonds -
Investment Grade
iShares 20+ Year Treasury Bond Fund 2.1
U.S. Bonds -
Investment Grade
iShares MBS ETF 6.2
U.S. Bonds -
Investment Grade
iShares Trust Long Term Corporate Bond ETF 3.1
Commodities/
Natural Resources
FlexShares Morningstar Global Upstream Natural Resources Index Fund 5.0
Global Infrastructure FlexShares STOXX Global Broad Infrastructure Index Fund 2.0
Cash NIF US Governments Portfolio 0.9
Total   100.0%
Overall Morningstar RatingTM
Morningstar Rating

Among 397 world allocation funds derived from a weighted average of the fund's 3-,5-, and 10-year risk-adjusted returns as of 3/31/19.

Global Tactical Asset Allocation received 4 stars for the 3-year rating among 397 world allocation funds, 4 stars for the 5-year rating among 321 funds and 3 stars for the 10-year rating among 161 funds.

The Morningstar RatingTM for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.

©2019 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.

Fund Literature

 
Important risk information can be found on the Portfolio tab.

 

CUSIP665162392
YTD Total Return10.42% (as of 04/19/19)
Inception Date07/01/93
Total Net Assets$91,492,108 (as of 03/31/19)

Total Returns

Total Returns for Quarter Ending 03/31/19
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Global Tactical
Asset Allocation
1.12%8.88%8.88%1.46%6.84%4.25%8.27%6.10%
Asset Allocation
Blend Index
1.52%8.45%8.45%3.40%7.20%5.08%8.87%6.63%
Internal Reference
Benchmark
1.41%8.23%8.23%2.97%6.89%4.66%8.80%N/A
Morningstar Cat. Avg.
World Allocation
0.99%7.81%7.81%0.09%6.14%3.01%8.38%N/A
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.

Northern Trust Investments, Inc. has contractually agreed to reimburse a portion of the operating expenses of the Fund (other than certain excepted expenses, i.e., acquired fund fees and expenses; the compensation paid to each Independent Trustee of the Trust; expenses of third party consultants engaged by the Board of Trustees; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; expenses in connection with the negotiation and renewal of the revolving credit facility; and extraordinary expense and interest) to the extent the "Total Annual Fund Operating Expenses" exceed 0.25%. The "Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the excepted expenses, including but not limited to acquired fund fees and expenses, that are not reimbursed. This contractual limitation may not be terminated before July 31, 2019 without the approval of the Board of Trustees. In the absence of contractual expense reimbursements, 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.

Annual Expense Ratios

 
 Gross Expense RatioNet Expense Ratio
Global Tactical Asset Allocation0.80%0.63%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2019. The Fund also includes voluntary expense reimbursements that may change or end at any time.

Calendar Year Returns

 
        2018      2017      2016      2015      2014
Global Tactical Asset Allocation-7.91%14.18%9.12%-2.24%2.14%
Asset Allocation Blend Index-5.70%15.39%5.92%-0.96%4.97%
Internal Reference Benchmark-5.70%14.26%7.75%-2.71%4.54%
Morningstar Category Avg. World Allocation-8.26%14.79%6.04%-4.15%1.54%
Performance quoted represents past performance and does not guarantee future results.
Important risk information can be found on the Portfolio tab.

 

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Portfolio Composition
   
HoldingsFund
FlexShares Morningstar US Market Factor TILT Index Fund17.4%
iShares iBoxx High Yield Corp Bond 11.0%
FlexShares Disciplined Duratiom Fund10.6%
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund10.1%
FlexShares Morningstar Emerging Market Factor TILT Index Fund7.9%
FlexShares US Quality Dividend Index Fund7.7%
FlexShares Credit Scored US Corporate Bond Index Fund7.3%
FlexShares International Quality Dividend Index Fund6.0%
FlexShares Morningstar Global Upstream Nat Resources Index Fund5.1%
iShares 3-7 Year Treasury Bond Fund4.5%
FlexShares Global Quality Real Estate Index Fund4.0%
FlexShares Credit-Scored US Long Corporate Bond Index Fund3.6%
FlexShares STOXX Global Broad Infrastructure2.0%
iShares 20+ Year Treasury Bond Fund1.3%
iShares 1-3 Year Credit Bond ETF1.1%
iShares 7-10 Year Treasury Bond Fund0.2%
NIF US Government Portfolio0.2%
As of 02/28/19
Sector WeightingsFund
Financials15.4%
Information Technology11.4%
Industrials11.3%
Real Estate11.2%
Materials9.3%
Consumer Discretionary8.9%
Energy8.3%
Health Care7.1%
Communication Services6.5%
Consumer Staples6.4%
Utilities4.2%
As of 02/28/19
Risk Characteristics*Global Tactical Asset Allocation Asset Allocation Blend Index
Beta1.031.00
Up Market Capture97.29100.00
Down Market Capture96.01100.00
Information Ratio–0.060.00
*Above risk characteristics are based on a 3-year time period
  
DateHoldings File
As of 03/31/19Insert Icon
As of 02/28/19Insert Icon
As of 01/31/19Insert Icon
As of 12/31/18Insert Icon
As of 11/30/18Insert Icon
As of 10/31/18Insert Icon

Fund Characteristics

Number of Holdings16
Portfolio Turnover25.39% (as of 03/31/18)
Dividend ScheduleQuarterly
Dividend Income Last Quarter$0.2107
Capital Gain Income Last Quarter$0.1041
BenchmarkAsset Allocation Blend Index
Morningstar CategoryWorld Allocation
Asset Allocation 
Stocks49.1%
Bonds39.6%
Real Assets11.1%
Cash0.2%
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.

Asset Allocation Risk: An asset allocation strategy does not guarantee any specific result or profit nor protect against a loss.

Interest Rate Risk: Increases in prevailing interest rates will cause fixed-income securities, including convertible securities, held by the Fund to decline in value.

International Risk: International investing involves increased risk and volatility.

Asset Allocation Blend Index consists of 60% MSCI All Country World Index and 40% Bloomberg Barclays U.S. Aggregate Bond Index. It is not possible to invest directly in an index.

Internal Reference Benchmark represents the strategic asset allocation weights assigned annually by the Investment Policy Committee — the baseline from which the portfolio managers tactically allocate within the fund. As of July 12, 2018, the benchmark consists of 34% Bloomberg Barclays U.S. Aggregate Bond Index, 23% MSCI U.S. IMI, 16% MSCI World ex. USA IMI, 9% MSCI Emerging Markets IMI, 4% Bloomberg Barclays U.S. TIPS 1-5 Year Index, 3% Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped, 2% MSCI ACWI IMI Core Real Estate Index, 5% S&P Global Natural Resources Index, 2% S&P Global Infrastructure Index and 2% Bloomberg Barclays 1-3 Month U.S. Treasury Bills Index. It is not possible to invest directly in an index.

The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgage-backed securities (agency fixed-rate and hybrid adjustable-rate mortgage pass-throughs), asset-backed securities and commercial mortgage-backed securities (agency and non-agency). It is not possible to invest directly in an index

The Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index is an unmanaged index that measures the market of U.S. dollar-denominated, non-investment-grade, fixed-rate, taxable corporate bonds. It is a version of the Bloomberg Barclays High Yield Corporate Bond Index except it limits its exposure of each issuer to 2% of the total market value and redistributes any excess market value Index-wide on a pro-rata basis. It is not possible to invest directly in an index.

The Bloomberg Barclays U.S. TIPS 1-5 Year Index measures the performance of the US Treasury Inflation Protected Securities (TIPS) market. Federal Reserve holdings of US TIPS are not index eligible and are excluded from the face amount outstanding of each bond in the index.

The Bloomberg Barclays 1-3 Month U.S. Treasury Bills Index is a sub segment of the Bloomberg Barclays US Treasury Bill Index that tracks the market for treasury bills issued by the US government. US Treasury bills are issued in fixed maturity terms of 4-, 13-, 26- and 52-weeks. The US Treasury Bill Index is a component of the US Short Treasury Index along with US Treasury notes and bonds that have fallen below one year to maturity.

The iMoney Fund Net Avg- Government & Agencies Institutional - Category includes the most broadly based of the government institutional funds. These funds may invest in U.S. Treasury securities, securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities. It is not possible to invest directly in an index.

THE MSCI® ACWI® IMI Core Real Estate Index is a free float-adjusted market capitalization-weighted index that consists of large, mid and small-cap stocks engaged in the ownership, development and management of specific core property type real estate. As of May 31, 2018, the MSCI® ACWI® IMI Core Real Estate Index consisted of 47 countries worldwide, comprising 23 developed and 24 emerging market countries. As of May 31, 2018, the developed market countries included were: Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, the Netherlands, New Zealand, Norway, Portugal, Singapore, Spain, Sweden, Switzerland, the United Kingdom and the United States. As of May 31, 2018, the emerging market countries included were: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Russia, Qatar, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates.

The MSCI Emerging Markets Investable Markets Index (IMI) is a free float-adjusted market capitalization index that is designed to measure large, mid, and small cap equity market performance in the in the global emerging markets. It is not possible to invest directly in an index.

The MSCI United States Investable Markets Index (IMI) is a free float-adjusted market capitalization index that is designed to measure the performance of large, mid, and small cap segments of the U.S. market. It is not possible to invest directly in an index.

The MSCI World ex. USA Investable Markets Index (IMI) is a free float-adjusted market capitalization index that is designed to measure the performance of large, mid, and small cap segments in developed markets, excluding the USA. It is not possible to invest directly in an index.

The S&P Global Infrastructure Index provides liquid and tradable exposure to 75 companies from around the world that represent the listed infrastructure universe. The index has balanced weights across three distinct infrastructure clusters: Utilities, Transportation, and Energy. It is not possible to invest directly in an index.

The S&P Global Natural Resources Index includes 90 of the largest publicly-traded companies in natural resources and commodities businesses that meet specific investability requirements, offering investors diversified and investable equity exposure across 3 primary commodity-related sectors: agribusiness, energy, and metals & mining.
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Bob Browne, CFA<sup>&reg;</sup>

Bob Browne, CFA®

Portfolio Manager

Northern Global Tactical Asset Allocation Fund (BBALX)

With Northern Trust Since 2009
Began Career in 1989

Bob Browne, Executive Vice President and Chief Investment Officer for Northern Trust. He is a member of Northern Trust's Operating Group, reporting directly to the Management Group. Mr. Browne is also a co-manager for the Northern Global Tactical Asset Allocation Fund.

Mr. Browne chairs the firm’s Investment Policy Committee, which sets investment policy for all Northern Trust groups in all asset classes. He is responsible for investment performance, process and philosophy across multiple investment strategies including fixed income, active equity and passive investments. Mr. Browne has more than 25 years of investment experience.

Prior to joining Northern Trust in 2009, Mr. Browne worked for ING Investment Management and was the firm’s Chief Investment Officer for Fixed Income and Proprietary Investments from 2004 until 2009. In this capacity, he oversaw $120 billion in assets under management across retail and institutional clients, as well as the firm’s own insurance assets. From 2002 to 2004, he was founder and Managing Partner of Picador Capital, an alternative investment firm. From 1999 to 2001, he was Co-Head of Americas Fixed Income for Merrill Lynch Investments and he also worked in the firm’s London office from 1997 to 1999 as a senior portfolio manager. Mr. Browne spent the first eight years of his career, from 1989 until 1997, at JP Morgan Investment working as a global fixed income and currency portfolio manager in the firm’s Tokyo and London offices.

Mr. Browne holds a B.A. with a major in economics from the College of the Holy Cross. He also has a Masters in international business studies from the University of South Carolina. He is an active CFA® charterholder.

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Daniel J. Phillips, CFA<sup>&reg;</sup>

Daniel J. Phillips, CFA®

Portfolio Manager

Northern Global Tactical Asset Allocation Fund (BBALX)

With Northern Trust Since 2005
Began Career in 2005

Daniel J. Phillips, Senior Vice President of Northern Trust and currently co-manages the Northern Global Tactical Asset Allocation Fund.

Mr. Phillips joined Northern Trust in 2005, and, alongside his Portfolio Manager responsibilities, is an Investment Strategist within the Northern Trust Asset Management business unit, overseeing the firm’s asset allocation processes and serving on the firm's Investment Policy Committee.

Mr. Phillips received a BBA in finance and economics from the University of Iowa and an MBA in finance, economics and international business from the University of Chicago. He is an active CFA® charterholder.

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Jim McDonald

Jim McDonald

Portfolio Manager

Northern Global Tactical Asset Allocation Fund (BBALX)

With Northern Trust Since 2001
Began Career in 1981

Jim McDonald, Executive Vice President and the Chief Investment Strategist for Northern Trust. In addition, he chairs the Northern Trust Tactical Asset Allocation Committee, is a member of the Investment Policy and Private Equity Investment Committees, and is trustee of the Northern Trust Alpha Strategies and Equity Long/Short Strategies Hedge Funds. Mr. McDonald is also a co-manager for the Northern Global Tactical Asset Allocation Fund.

Prior to joining Northern Trust in 2001, Mr. McDonald was Director of Equity Research at ABN AMRO in New York and Chicago (1994-2000) and Equity Research Analyst at ABN AMRO following the Environmental Services Industry (1990-1994). He started his professional career in 1981 with Arthur Andersen & Co. in Detroit.

Mr. McDonald received a BBA from the University of Michigan and an MBA with high distinction from Babson College. He is a member of the CFA Society Chicago and a registered CPA in the state of Michigan.

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