- Political Volatility, Policy Stability – A strong shift to the left or right is not expected, since voter sentiment remains surprisingly constant.
- Asset Classes Without Borders – Asset allocation will become less focused on particular countries, with global capital markets and globally diverse companies furthering the case for a global approach to asset allocation. Northern Trust is looking at how individual assets can be combined to provide specific exposures to compensated forms of risk.
- Watchful View on Inflation – Inflation remains at subdued levels amid tentative confidence and excess capacity, declining during the past year. However, financial markets may be slightly underestimating inflation risk going forward. The combination of low inflation expectations and ultra-aggressive central banks continues to argue for inflation protection within a diversified portfolio.
The group is composed of senior investment professionals from across Northern Trust globally, including the firm’s chief investment officer, chief investment strategist and managing directors of specific asset classes.About Northern Trust Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment management, asset and fund administration, banking solutions and fiduciary services for corporations, institutions and affluent individuals worldwide. Northern Trust, a financial holding company based in Chicago, has offices in 18 U.S. states and 16 international locations in North America, Europe, the Middle East and the Asia-Pacific region. As of June 30, 2013, Northern Trust had assets under custody of US$5.0 trillion, and assets under investment management of US$803.0 billion. For more than 120 years, Northern Trust has earned distinction as an industry leader in combining exceptional service and expertise with innovative products and technology. For more information, visit www.northerntrust.com or follow us on Twitter @NorthernTrust.