This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Northern Trust’s Ultra-Short Fixed Income Funds Surpass $3 Billion In Assets

Stocks in this article: NTRS

As investors search for yield beyond traditional money market funds, Northern Funds’ Ultra-Short Fixed Income Fund (NUSFX) and Tax-Advantaged Ultra-Short Fixed Income Fund (NTAUX) have recently drawn assets from investors seeking opportunities for their investments that cover longer term spending needs. Northern Trust, which sponsors and manages the two funds, announced today that together they have exceeded $3 billion in assets.

“The Northern Funds Ultra-Short Funds have exhibited strong asset growth since inception, which validates our view that clients value a consistent, proven investment process in a total return product that is different from a traditional money market fund,” said Colin Robertson, Managing Director of Fixed Income for Northern Trust. “As clients rethink their investment strategies in this low interest rate environment, we expect our Ultra-Short funds and liquidity management ETF strategies will continue to acquire assets and gain significant traction in the marketplace.”

Launched in June 2009, the funds have a highly focused strategy that draws on a legacy of more than 25 years of experience with risk-controlled ultra-short duration strategies. The funds are designed to take modest interest rate risk, credit risk and liquidity risk compared to money market funds.

The two funds have slightly higher volatility and lower liquidity than money market funds and seek to offer less volatility than intermediate and longer-duration fixed income securities.

While both seek to yield more than a money market fund with potential for capital appreciation, the Tax Advantaged Ultra-Short Fund seeks to provide investors in higher tax brackets more after tax yield by investing in municipal securities.

“The investment process for both funds combines a top-down macroeconomic view with intense bottom-up credit research in an effort to generate yield with moderate risk,” said fund manager Carol Sullivan of Northern Trust. “We maintain well-diversified portfolios of investment grade securities with a neutral target duration of one year, plus the flexibility to shorten or extend the portfolio up to another six months depending upon our macro forecasts. This flexibility helps us to position the two Ultra-Short Funds in a way that captures opportunity but also provides some protection in a rising rate environment.”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,429.11 -249.59 -1.41%
S&P 500 2,035.98 -21.11 -1.03%
NASDAQ 4,708.6240 -63.1390 -1.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs