Mutual funds are known to be companies with open-ended investment that do encourage investors to put their funds into a fund that is being operated by a portfolio manager. The manager has a duty of turning around and investing this large pool of money from different shareholders in a collection of a variety of assets. We have various types of mutual funds namely, open-end, closed-end and a loan funds (Haslem, 2009). Mutual funds and all the firms that are listed in the Dow 30 are categorized under a particular type of asset class.
On determination of what type of investment the company is undertaking, as a mutual fund firm we can find out if we can find our needs in relation to investments and also the kind of benefits we are in quest of in return. The mutual funds and firms listed under the Dow 30 organization all fits the shareholder in one way or another through the determining and classification of asset classes. Organizational decision making is normally affected by how these assets are classified and also current investment environment do have some effects on the above.
In our case we are going to discuss Northern funds mutual funds Company because it is known to be the leading provider in the investment industry (Northern funds, 2006). Northern Funds Mutual Funds Company Northern Trust Corporation is known to be the leading provider of venture management, fund administration, banking solutions for corporations, asset, fiduciary, institutions, and wealthy individuals across the world (Haslem, 2009). In the financial year ending as of June 30, 2006, the total banking assets of Northern Trust was $53 billion, assets under custody was $3.2 trillion while assets under management was given to be $640 billion.
Northern Funds do offer its customers all three asset classes of mutual funds which include money-market, fixed-income and equity funds. An equity fund refers to mutual funds that invest in a broad and group of stocks that are well diversified. Fixed-income funds are primarily based in government and corporate debt. The key idea of these resources that are being pulled together is to give a steady cash flow to investors (Haslem, 2009).
Fixed-income funds are normally geared towards the traditionalist and retirees. Money market funds do consist of short-term debt instruments that are presented in Treasury bills form. Choosing category of asset classes they fall under and mutual funds normally comes with an impact on organizational decision making in relation to portfolios composition. An article about northern funds website indicates that the company’s money market fund rate of return is very competitive. It also indicates that investing in their money markets is the safest. The reason is that due to shareholders worry over a gentle uptick in rise and slow growth.
From the same source I also found out that in June, the yield in taxable money market funds was4.4%, an indication that shareholders return their cash almost 1% point more than inflation. If consumer prices level off, the given amount can go higher (Haslem, 2009). Work citations Haslem, John A. 2009. Mutual Funds Portfolio Structures, Analysis, Management, and Stewardship, Epub Edition. John Wiley & Sons Inc.