Chicago-based Northern Trust has introduced two new mutual funds; the Northern Tax-Advantaged Ultra-Short Fixed Income Fund (TAUSFIF) and the Northern Ultra-Short Fixed Income Fund (USFIF), in order to meet the increased investor interest in the fixed income markets,
They have a minimum initial investment of $1 million and are intended for investors with an investment horizon of at least one year who want to move a portion of their money market fund assets into slightly longer maturity, higher yield securities.
TAUSFIF is designed to maximize after-tax return for investors in higher tax brackets by pursuing best net after-tax yield and total return opportunities in both taxable and tax-exempt securities.
The company added that the both the mutual funds strive to maintain a six- to 18-month average maturity, under normal circumstances, with a maximum security maturity of three years.
Colin Robertson, Managing Director of fixed income investments at Northern Trust said: “As we continue to face uncertainty regarding an economic and financial market recovery, investors have become increasingly interested in the potential benefits of having fixed income assets in their investment portfolios. For investors looking to get back into the market, the new funds are designed to provide opportunity for both higher yields than money funds and capital appreciation with minimal volatility.”
