November 2009

In a recent Q&A published in Crane Data’s Money Fund Intelligence newsletter, Northern Trust’s money market team highlights why it believes money market managers should have a conservative and consistent investment philosophy and investment process that will function well in any environment.

“We’ve always managed our money funds conservatively,” says Peter Yi, director of money markets at Northern Trust. “We’ve always put principal preservation above all else, followed by liquidity, then finally yield. We believe this conservative positioning really defines us as investment managers.”

Steve Everett, director of balance sheet assets and insurance at Northern Trust adds, “Our investment philosophy is not a reaction to what has happened in the markets. That is the way we’ve always been, and we don’t waver from that approach.”

Yi and Everett go on to discuss:

• Why Northern Trust believes it will be well positioned if the SEC proposed amendments for Rule 2a-7 are adopted, given Northern Trust’s emphasis on credit research and risk management
• Where money market funds management is currently finding opportunities
• The challenges the zero yield environment presents to the money market fund industry

View the "Quiet Giant of Cash: Q&A w/ Northern Trust" reprint now.

An investment in the Money Market Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Money Market Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Money Market Funds.