Asset Classes

Topics: Investment, Mutual fund, Hedge fund Pages: 3 (1033 words) Published: November 19, 2006
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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References: General Motors – Corporate Information (2006) Retrieved on October 15, 2006 from http://www.gm.com/company/corp_info/
General Motors – Letters to Stockholders (2006) Retrieved on October 15, 2006 from http://www.gm.com/company/investor_information/docs/fin_data/gm05ar/content /letter/letter_01.html
Investopedia: Equity Fund (n.d) Retrieved on October 15, 2006 from http://www.investopedia.com/terms/e/equityfund.asp
Investopedia: Stock (n.d) Retrieved on October 15, 2006 from http://www.investopedia.com/terms/s/stock.asp
Investopedia: Mutual funds – Different types of funds. (n.d) Retrieved on October 15, 2006 from http://www.investopedia.com/university/mutualfunds/mutualfunds1.asp
Northern Trust: About Us (2006) Retrieved on October 15, 2006 from http://www.northerntrust.com/pws/jsp/display2.jsp?TYPE=interior&XML=pages/ nt/0601/1136383727252_494.xml
Northern Trust: Northern Updated (2006) Retrieved on October 15, 2006 from http://www.northernfunds.com/resources/update/Update_Q206/NU_2Q06_feature_ 05.html
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