Northern Trust Launches Emerging Manager Funds

The Emerging Manager U.S. Equity Funds are designed to provide access to smaller, undiscovered investment boutiques with a primary objective of generating excess returns for corporate and public pension plan investors, according to the company.  

Northern Trust’s emerging manager funds are daily valued collective funds open to ERISA-qualified corporate and public employee pension plan investors. The Northern Trust Company of Connecticut (NTCC) serves as the trustee, selects sub-managers and monitors the investments of each sub-manager in the two funds.   

The NTCC Emerging Manager U.S. Equity Non-lending Fund is benchmarked to the Russell 3000 Index of U.S stocks, and the NTCC Emerging Manager Large Cap Non-lending Fund is benchmarked to the Russell 1000 Index of large-cap U.S. stocks.   

The funds currently utilize 11 sub-managers in a multi-manager structure.  

The announcement said the emerging manager funds may be used as a core holding within a diversified actively managed asset allocation framework or as a satellite allocation complementing a predominantly passive investment approach.