A New Era of Stewardship: Northern Trust’s Dual CIO Strategy

The appointment of Michael Hunstad and Christian Roth as Global Co-Chief Investment Officers (Co-CIOs) at Northern Trust Asset Management (NTAM) marks a pivotal shift in the firm’s leadership structure. Effective June 1, 2025, this dual leadership model aims to fortify NTAM’s investment philosophy of risk-aware returns, while addressing the evolving demands of a $1.3 trillion asset management landscape.

The Leadership Dynamic: Hunstad and Roth’s Complementary Expertise

Hunstad, NTAM’s Deputy CIO and current CIO of Global Equities, brings a quantitative edge to the role. With a Ph.D. in mathematics and an MBA in finance, his tenure has seen NTAM’s equity AUM grow to $758 billion. His leadership in quantitative strategies and factor-based research positions him to refine NTAM’s equity offerings, which now account for over 58% of total AUM.

Roth, a 30-year veteran of fixed income markets, joins from Morgan Stanley Investment Management, where he managed multi-sector portfolios. As NTAM’s CIO of Global Fixed Income, he oversees $490.1 billion in fixed income and liquidity strategies—a segment representing 37% of the firm’s total AUM. His deep expertise in interest rate dynamics and credit analysis is critical as central banks recalibrate monetary policies post-pandemic.

Together, their combined oversight of 95% of NTAM’s AUM underscores a strategic emphasis on balancing growth and stability across asset classes.

A Firm in Transition: NTAM’s Strategic Priorities

The dual-CIO structure reflects NTAM’s commitment to maintaining its reputation as a “steward of capital.” Under outgoing CIO Angelo Manioudakis, NTAM focused on integrating environmental, social, and governance (ESG) factors into investment processes. Hunstad and Roth will now expand this focus while prioritizing three key areas:

1. Risk-Adjusted Returns: NTAM’s core philosophy—compensation for risk taken—will be reinforced through rigorous stress-testing and scenario analysis.
2. Cross-Asset Collaboration: By co-chairing the Investment Policy Committee, the pair will align equity, fixed income, and alternatives teams to capitalize on market inefficiencies.
3. Client-Centric Innovation: NTAM aims to leverage Northern Trust’s $16.9 trillion custody platform to offer tailored solutions, such as customized ESG portfolios or multi-asset income strategies.

Data-Driven Confidence: The Numbers Behind the Strategy

NTAM’s $1.3 trillion AUM places it among the top 20 global asset managers, but growth is uneven. Equities, Hunstad’s domain, have seen steady inflows, while fixed income faces headwinds as rates normalize. The firm’s equity outperformance—driven by active stock selection and factor tilts—contrasts with fixed income’s reliance on yield-hunting in a volatile bond market.

Crucially, NTAM’s parent company, Northern Trust Corporation (NTC), has maintained a 1.8% dividend yield over five years, signaling financial resilience. This stability provides Hunstad and Roth with the capital flexibility to invest in technology and talent.

Conclusion: A Balanced Playbook for Uncertain Markets

Hunstad and Roth’s leadership arrives at a critical juncture. With global equities volatile and fixed income yields at multi-decade lows, their ability to blend quantitative rigor (Hunstad) with macro-driven fixed income acumen (Roth) could define NTAM’s trajectory.

The firm’s emphasis on risk-aware returns is backed by data: over the past decade, NTAM’s equity strategies outperformed 68% of peers in down markets, while its fixed income portfolios delivered 2.3% annualized excess returns in low-yield environments. Combined with Northern Trust’s $1.6 trillion AUM and its $16.9 trillion custody scale, the duo’s mandate to “strengthen client service across asset classes” is not just aspirational—it’s data-driven.

Investors in NTAM’s products or NTC’s equity can anticipate a disciplined approach: Hunstad’s math-driven equity lens and Roth’s pragmatic fixed income strategy form a balanced playbook for navigating 2025’s uncertain markets. The question now is whether their synergy can elevate NTAM from a top-tier player to a true industry leader. The numbers suggest they’re poised to try.