I N N O V A T I V E, C O M P R E H E N S I V E A P P R O A C H T O I N V E S T M E N T P R O G R A M M A N A G E M E N T

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1 I N N O V A T I V E, C O M P R E H E N S I V E A P P R O A C H T O I N V E S T M E N T P R O G R A M M A N A G E M E N T I n v e s t m e n t P r o g r a m S o l u t i o n s

2 A C H I E V I N G Y O U R S T R A T E G I C O B J E C T I V E S Cost control, funding concerns, risk management, organizational change how do you maintain your strategic focus? Northern Trust s Investment Program Solutions practice offers your organization an integrated, consultative approach to investment program management so you can focus on strategic objectives.

3 Investment Program Solutions offers world-class investment management combined with program oversight, manager research, customized program design, global custody and client servicing. I N V E S T M E N T E X P E R T I S E Funding challenges demand targeted solutions whether you are a plan sponsor facing rising pension obligations or a charitable foundation supporting an ambitious mission. Northern Trust can help: Assess obligations; Analyze broad organizational objectives; and Add discipline, consistency and value to your investment program. R I S K M A N A G E M E N T Judicious risk management can help you pursue your investment objectives in uncertain markets. Our Investment Program Solutions experts will work with you to develop a plan to pursue optimal expected performance based on your: Return objectives; Risk tolerance; and Total Investment Program Management Investment policy statement development Asset/liability and spending policy analysis Asset allocation Portfolio construction Multi-asset class investment programs Risk management Consolidated board-ready reporting Portfolio rebalancing Integrated global custody and accounting Diversification needs. C O S T C O N T R O L Northern Trust s Investment Program Solutions practice can help bridge the gap between increasing complexity and decreasing resources. Our clients often experience considerable savings compared to the expense of managing programs in-house. Research and administration of complex asset classes Management and monitoring of multiple vendors Proactive adjustment of investments N O R T H E R N T R U S T 1

4 G U I D I N G P R I N C I P L E S ASSET ALLOCATION The primary determinant of investment results MANAGER RESEARCH Northern Trust is one of the world s leading providers of asset servicing, asset management and wealth management services. Founded in 1889, we have a history of strength and stability. Today, we are a global leader in combining exceptional client service with innovative technology expertise. Critical to identify the right managers and strategic combinations DIVERSIFICATION Achieved at the total portfolio level and by limiting the number of asset classes that any one firm manages CONSISTENT MONITORING AND REBAL ANCING Fundamental for pursuing optimal long-term results RESULTS A shared commitment to a single mission seeking to achieve maximum investment returns with complete consideration of your organization s goals 2 N O R T H E R N T R U S T

5 I N V E S T M E N T P R O C E S S R I S K C O N T R O L O V E R L A Y CONTINUOUS EVALUATION OBJECTIVE DEVELOPMENT MONITORING Y O U R P R O G R AM CUSTOMIZED PROGRAM DESIGN IMPLEMENTATION R I S K C O N T R O L O V E R L A Y A COMPREHENSIVE APPROACH Northern Trust helps bring your total program into focus. We collaborate with you to design a comprehensive approach to advance your goals while measuring, monitoring, and mitigating risk and controlling cost at every turn. Objective development Your program, from the outset, is designed to be uniquely your own. We work with you to learn the fine points of your organization, program and needs. Customized program design We design a multi-faceted allocation strategy diversifying across asset classes, within investment styles, and among investment managers to create a blended stream of return sources. Implementation You can rely on Northern Trust s experience to help identify and combine the best-in-class talent required to build an optimally diversified portfolio. We know the people; we understand their approaches. Monitoring Rigorous, continuous monitoring of outside investment managers enables us to make proactive adjustments in an effort to avoid unpleasant surprises. Continuous evaluation We constantly canvass the market for new ideas, review risk on all levels of your program, and make portfolio adjustments as needs and circumstances dictate. Risk control overlay Risk management serves as an overlay to the entire process to deliver a truly optimized program. N O R T H E R N T R U S T 3

6 I N V E S T M E N T T E A M Serving Investors Worldwide Corporate pension & retirement plans Foundations Endowments Healthcare organizations Government entities Not-for-profit institutions Public funds Your Investment Program Manager provides a unique blend of investment management and corporate finance expertise and works closely with a team of investment specialists to support your program. Manager research Portfolio construction Alternative investments Actuarial and liability-driven investing Risk management R E L Y O N N O R T H E R N T R U S T Northern Trust can help you achieve your objectives through an established process of professional consultation, customized investing and ongoing due diligence. You can be assured of our experience and dedication. Northern Trust manages: FOR MORE INFORMATION northerntrust.com/ips Individual and institutional assets. For 120 years, we have been a trusted provider of investment services, trust, custody and banking. External investment managers. With more than 30 years of experience, Northern Trust continues to be an innovator in the multi-manager industry. 4 N O R T H E R N T R U S T Northern Trust Corporation, 2012

7 N O R T H E R N T R U S T L O C A T I O N S Abu Dhabi Amsterdam Bangalore Beijing Chicago Dublin Guernsey Hong Kong Jersey Limerick London Luxembourg Melbourne New York Singapore Stamford Stockholm Tokyo Toronto LEGAL, INVESTMENT, AND TAX NOTICE: This information is not intended to be and should not be treated as legal advice, investment advice, or tax advice. Clients should under no circumstances rely upon this information as a substitute for obtaining specific legal or tax advice from their own professional legal or tax advisors. Past performance is no guarantee of future results. Asset Management at Northern Trust is a multi-asset class investment management business. It comprises Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., the investment advisor division of The Northern Trust Company and The Northern Trust Company of Connecticut and its subsidiaries, which offer investment products and services to personal and institutional markets. The Northern Trust Company provides custody and performance reporting services to Investment Program Solutions clients. Diversification and investment models or programs do not assure a profit or guarantee against loss in declining markets. Please remember that all investments carry some level of risk, including the potential loss of principal invested. They do not typically grow at an even rate of return and may experience negative growth. As with any type of portfolio structuring, attempting to reduce risk and increase return could, at certain times, unintentionally reduce returns.

8 northerntrust.com/ips Q11398 (4/12)