The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Real Assets Allocation IndexTM (Underlying Index).
1. Combine global infrastructure, real estate and natural resource equities into a "turnkey" real asset portfolio
2. Optimize the assets in an effort to reduce volatility, with constraints to maintain diversification
Though investment involves compensation for risk in the form of return, investors must:
This is particularly important in today’s environment, in which global markets are highly interconnected and experience more volatility in the form of price movement. Unexpected market shocks (or tail risks) are more common and change the view of normal investment distributions. The following risk solutions may complement investors' portfolios by providing a investments that seek to mitigate exposure to risk, while seeking to receive compensation for that risk.
The Northern Trust Real Assets Allocation Index is designed to reflect the performance of a universe of inflation sensitive securities operating in the following sectors: global infrastructure, global real estate and global natural resources. The index is intended to reflect an exposure to "real" assets, and is constructed using a proprietary optimization in an effort to reduce volatility of returns, while maintaining diversification amongst the eligible securities.