Northern Trust Asset Management has unveiled a global small cap fund for institutional investors that cover quality small capitalization stocks across international developed equity markets.
Kemper Corporation, a US-based insurance holding company, funded the launch with an investment for its Master Retirement Trust.
The new fund relies on Northern Trust Asset Management’s Engineered Equity strategies, with $37.4bn in assets under management as of September 30, 2014.
The fund is designed to capture the premium associated with high quality small capitalization stocks efficiently while reducing uncompensated risk factors.
Matthew Peron, managing director of global equity at Northern Trust Asset Management, said, "Our Engineered Equity approach provides efficient exposure to global small cap equities with a bias toward high-quality companies and factors that generate persistent performance over time. We worked closely with Kemper to develop a solution that fits their performance and risk budget needs, leveraging our core capabilities, and we believe this strategy will have broad appeal."