| Index Overview |
| Northern Trust Real Assets Allocation Index is designed to reflect the performance of a universe of inflation sensitive securities operating in the following sectors: global infrastructure, global real estate and global natural resources. The index is intended to reflect an exposure to "real" assets, and is constructed using a proprietary optimization in an effort to reduce volatility of returns, while maintaining diversification amongst the eligible securities. |
| Index Construction |
| Optimized |
| Index Methodology |
The construction of the index begins with a universe of eligible securities. Eligible securities are then optimized, with a main objective of lowering the absolute total risk of the index, as measured by volatility of returns, while maintaining diversification amongst the eligible securities. In order to obtain robust estimates of expected portfolio volatility, standard risk models are incorporated into our process to isolate both common factor and idiosyncratic risk at the underlying asset level. In addition to solving for the main objective, constituent level weight constraints are utilized to maintain diversification within the index during each optimization.
For more details on this methodology, please see the Index Documents tab. |
| Index Return Streams & Symbols |
- Price Return: NTASET
- Total Return: NTASETTR
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