Northern Trust Logo



Tax Exempt Portfolios Actively Managed Against Broad or State Specific Municipal Benchmarks

Philosophy & Objective

Municipal Fixed Income assignments at Northern Trust are constructed with the goal of generating consistent performance with predictable volatility. We emphasize the objectives of:

  • Managing to the client's unique tax situation
  • Preserving principal
  • Generating current income
  • Dampen the volatility of other asset classes
  • Providing liquidity in case of need

Investment Process

We have investment views, but our trading scale and skill allows us to be modest in taking traditional manager bets (duration and credit). We add thoughtful approaches to yield curve, sector, structure & state decisions, yet aiming to end up with portfolios that are often higher quality AND higher return than their benchmarks.

Managing credit risk is the cornerstone of our research process:

  • Strong sell discipline focused on identifying early signs of credit deterioration
  • Separate credit approval process from manager's purchase decision
  • Issuer financials are tracked electronically on a timely basis
  • Individual state analysis identifying macro trends

Investment Style

We incorporate key elements of our relative value style, emphasizing a rigorous security selection process while closely monitoring and controlling portfolio risk relative to a client-selected benchmark.

Active Management

We strive to capitalize on market inefficiencies to maximize total return - both income return and price appreciation:

  • The process goes beyond credit and interest rate decisions
  • Key value-added factors include yield curve positioning, security selection/structure decisions, and sector/state analysis

Disciplined Risk Control

We believe a comprehensive portfolio review process combined with a key understanding of risk is essential to meet our client's investment objectives:

  • Risk exposure guidelines established in line with client expectations
  • Daily monitoring of duration, sector concentration, and credit quality

Fundamental Research

We combine original credit and macroeconomic research with experience and judgment in the development of portfolio structure and characteristics:
  • Both issuer credit and enhancement (insurance) providers are evaluated
  • The structural risk of each security is evaluated and actively monitored

Flexible Structures

Northern Trust's capabilities can be delivered as separate accounts or mutual fund vehicles.
Timothy T.A. McGregor, CFA

Timothy T.A. McGregor, CFA

Director, Municipal Fixed Income Management
person icon
View Profile
Hide Profile
Timothy T.A. McGregor, CFA

Timothy T.A. McGregor, CFA

Director, Municipal Fixed Income Management
Timothy T.A. McGregor is a Senior Vice President at The Northern Trust Company, Chicago. He joined Northern Trust in 1989. He is Director of the Municipal Fixed Income Management Group, which has responsibility for over $30 billion in assets. Tim is portfolio manager for the Northern Tax Exempt Fund, Northern Intermediate Tax Exempt Fund, and individual accounts. Tim specializes in tax-exempt portfolios as well as crossover mandates that require taxable market exposure.

Mr. McGregor received a B.A. degree in economics from Indiana University. He is a member of the CFA Institute and the CFA Society of Chicago.
Investment Products and Services are:

Not FDIC INSURED; May lose value; No bank guarantee

Investment products and services are offered through Northern Trust Securities, Inc., member FINRA and SIPC and a wholly owned subsidiary of Northern Trust Corporation. Any attached research reports containing the Northern Trust Logo or trademark were prepared solely by employees of Northern Trust Investments, Inc., an affiliate of Northern Trust Securities, Inc.

Read our Business Continuity Notice
  View All Insights

© 2019 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A. Incorporated with limited liability in the U.S. Products and services provided by subsidiaries of Northern Trust Corporation may vary in different markets and are offered in accordance with local regulation. For more information, read our legal and regulatory information about individual market offices.

Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, and personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company. This material is directed to professional clients only and is not intended for retail clients. For Asia-Pacific markets, it is directed to expert, institutional, professional and wholesale investors only and should not be relied upon by retail clients or investors. Issued in the United Kingdom by Northern Trust Global Investments Limited.