Asset Classes

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Asset Classes

Mutual funds and the companies listed in the Dow 30 all fall under a specific type of asset classes we all need to know about. Once we have determined the type of investor we are, we can then determine what fits our needs in terms of investments and what kind of benefits we are seeking in return. The mutual funds and companies listed under the Dow 30 all fits the investor one way or the other and in the following, I will determine the asset classes for my selected mutual fund and Dow 30 organization. I will also explain how their classifications and the current investment environment impacts organizational decisions concerning the composition of its portfolio. Northern Funds – Mutual Funds Company

Northern Trust Corporation is a leading provider of investment management, asset, and fund administration, fiduciary and banking solutions for corporations, institutions, and affluent individuals worldwide (Northern Trust, 2006). Northern Trust, a multibank holding company is based in Chicago and has a network of 84 offices in 18 U.S states and has international offices in 12 locations in North America, Europe, and the Asia-Pacific region. As of June 30, 2006, Northern Trust has $53 billion in banking assets, $3.2 trillion in assets under custody, and $640 billion in assets under management. Northern Funds offers its customers all three asset classes of mutual funds and they are equity funds, fixed-income funds, and money-market market funds. Equity funds are defined as a mutual fund that invests in a broad, well-diversified group of stocks. Fixed-income funds are funds that invest primarily in government and corporate debt. While fund holdings may appreciated in value, the primary objective of these funds is to provide a steady cashflow to investors (Investopedia, 2006). These fixed-income funds are geared towards the conservative and retirees. Money market funds consist of short-term debt instruments, mostly in the form of Treasury bills.

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