The Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust High Yield Value-Scored US Corporate Bond IndexSM (the Underlying Index).
1. Innovative high yield fund focusing on maximizing the value factor
2. Target credit beta1 to determine relative value of securities for the portfolio
3. Utilizes proprietary credit scoring and liquidity screening techniques
1Credit beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.
Predictable income generation is an essential pursuit as investors strive to meet financial obligations and achieve long-term goals. But each investor’s outcome is affected by individual factors like the stage of his or her lifecycle (i.e., accumulation versus retirement), plus macro factors like the rate of inflation or disinflation. Traditionally, income has been generated from variable sources like interest payments, dividends and capital gains, as well as guaranteed sources like annuities. Yet, traditional income sources have become less predictable as financial markets have become more global and dynamic. The following income generation solutions may complement investors’ portfolios by seeking to provide targeted and innovative sources of income to respond to dynamic market factors.
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The Northern Trust High Yield Value-Scored US Corporate Bond Index is designed to measure the performance of a diversified universe of high yield, US-dollar denominated bonds of companies exhibiting favorable fundamental qualities, market valuations and liquidity, as defined by Northern Trust Investments, Inc.'s ("NTI") proprietary scoring models.