Northern Trust Launches Global Real Estate Fund

Ian Allison

27 July 2006

Chicago-based Northern Trust has provided its customers with a way to diversify their portfolios beyond US-domestic real estate with the launch of the Northern Global Real Estate Index Fund. Northern Funds will now include 36 no-load domestic and international mutual funds. The new fund will hold approximately 300 stocks from 21 developed countries such as Australia, Germany, Greece, Japan, and the UK. The fund will be offered to high net worth investors through Northern Trust financial advisors and other intermediaries and there is a minimum investment of $2,500. Steven Wetter, the manager of the new fund, said: "Both domestic and international REIT fundamentals remain strong. From a strategic standpoint, REITs remain an attractive asset class for yield, total return and diversification, and going forward, it is expected that the index will be increasing its exposure to the rapidly evolving Asian and European REIT markets.” Northern Trust currently manages more than $200 billion in quantitative strategies, including $32 billion in international assets. John Skjervem, chief investment officer for Northern Trust’s Personal Financial Services unit, said “Many of our high net worth clients have become increasingly interested in allocating more money to global real estate for both its return potential and diversification benefits. "Our new fund’s broad geographic and property profile, which includes office, retail, industrial, multi-family residential and hospitality properties across 21 countries will provide efficient, well-diversified global real estate exposure for investors.”