N o rt H W e st e r N Mu t ua l
Your goals. Your Future.
61-1137 (1006) (REV 0310)
tHe MissioN oF
tHe NortHWesterN Mutual FiNaNcial NetWork
is to develop enduring relationships with our clients by providing expert
guidance for a lifetime of financial security. “Financial security”
means bringing to our clients a feeling of confidence that they will
realize their financial goals through the actions they are taking
today; actions that are based upon a process that examines both
risk protection and wealth accumulation needs. it is an integral
part of our investment philosophy.
OU R VISION OF FINa N CIa L S eCURITY
We view investing through a lens that focuses on your financial Confidence also comes from having the right tools, resources,
security, that feeling of confidence that you will realize your and investment programs available to help you accomplish your
financial goals through the actions you are taking today. Investing financial goals. The Northwestern Mutual Signature Portfolios
for financial security is about working with a trusted advisor program is built on strong beliefs in investment fundamentals
who gives you confidence that your financial goals, dreams, and and the flexibility to establish an investment strategy that is
needs can be fulfilled. That kind of confidence cannot be found by tailored to you. Your financial advisor will take you through
working with just anyone. It comes from working with financial the process of determining your financial profile, developing a
advisors of Northwestern Mutual Investment Services, LLC (NMIS) diversified asset allocation, and constructing a personalized investment
and Northwestern Mutual Wealth Management Company. policy statement. That’s just the beginning ... your portfolio will
Your advisor is committed to developing an enduring be continually monitored and adjusted as needed. Your financial
relationship with you by providing expert guidance for a advisor will meet with you to help keep your long-term financial
lifetime of financial security. goals in focus. It’s what you expect from a company that carries
the Northwestern Mutual name.
TH e SIGNaTUR e aDV I S O RY P RO CeS S
Our financial advisors appreciate that careful planning today is
essential to reach your goals for tomorrow. They are professionals
who often hold advanced degrees in business, law, and accounting,
as well as industry-recognized certifications including:
• Certified Financial Planner™ and Monitor
• Chartered Financial Consultant Identify
Our advisors understand the complexity of issues faced by
individuals like you and the importance of following a sound
process. Your financial advisor will act in your best interests by
following a comprehensive process not just at the time of sale,
but throughout your relationship, working with you to meet your
Identify Goals – Your advisor will guide you through a
comprehensive financial profile that will help determine your
time horizon, potential income needs, risk tolerance, and your
attitudes toward investing.
Create Personalized Investment Policy Statement – Based on
the information gained from your financial profile, your advisor
will determine an appropriate asset allocation strategy. This
strategy is formalized through an Investment Policy Statement
that helps provide the discipline to follow your investment plan
and make decisions free from emotion.
Select Investments – Choose from a variety of portfolio options
containing professionally researched and selected mutual funds.
Review and Monitor – advanced account servicing tools help
your advisor analyze whether your account remains in line
with your Investment Policy Statement. Your financial advisor
will meet with you to review any significant changes to your
personal or financial situation and help determine whether these
changes impact your portfolio.
IS THe SIGNaTURe PORTFOLIOS PROGRaM RIGHT FOR YOU?
Northwestern Mutual Signature Portfolios is an investment • Are you looking for a professionally researched and
management program offered through Northwestern Mutual constructed portfolio with investments that have been
Investment Services, LLC and the Northwestern Mutual Wealth assembled to work well in combination with one another?
Management Company. The program gives you access to
comprehensive, fully diversified investment portfolios of select • Do you believe in an institutional style of investing – following
mutual funds and exchange traded funds (eTFs). a written plan, consistent process, and emotion-free decision-
Your financial advisor will work together with you to determine if
the Signature Portfolios program is an appropriate vehicle for you. • Are you seeking an approach to investment management where
Together you will explore important questions such as: we monitor, rebalance, and trade your portfolio for you?
• Do you have a moderate to long-term investment horizon of at answering “yes” to some or all of these questions suggests that you
least five years? may benefit from the Northwestern Mutual Signature Portfolios
• Would you like objective investment guidance from a
professional advisor without paying per-trade commissions?
TH e SIGNaTURe PORTF O LIO S a DVa N TaG e
With more than 10,000 mutual funds available in today’s The Northwestern Mutual Wealth Management Company may
marketplace, choosing the right funds, in the right combination, also review and recommend mutual funds and eTFs independent
can be a daunting task. Mutual fund wrap solutions do this of Morningstar associates’ process.
for you by offering professionally constructed portfolios of
researched investment options. They also provide the added Professionally Constructed Portfolios – Morningstar associates
benefit of systematic rebalancing – all for one asset-based annual and Northwestern Mutual Wealth Management Company
fee. This convenient asset-based fee structure, rather than a per-trade incorporate the funds identified through the Signature Research
commission, puts you and your advisor on the same side of the table Process into combinations that work well together in order to
by allowing for the objective recommendation of investment options. construct models with diversified asset allocations. These models
are monitored on an ongoing basis, along with the underlying
The Northwestern Mutual Signature Portfolios program is a funds, to ensure they continue to work together as an efficient
mutual fund wrap solution that offers investors the following portfolio that maximizes return for the amount of risk you are
specific advantages: willing to take.
Professional Investment Advice – Your financial advisor is Goal Level Management – The goal level management feature
your partner in identifying and prioritizing your financial needs allows for two or more accounts that share a common investment
and investment objectives. Your advisor will help you create a goal (such as retirement or education) to be managed together to a
personalized asset allocation and provide guidance in selecting common asset allocation.
a professionally constructed model that is appropriate for you.
Periodic meetings with your advisor will help you follow your Systematic Portfolio Rebalancing – Due to various factors
investment plan and keep you informed of your portfolio’s progress. including market appreciation/depreciation, deposits, or
withdrawals, your account may move away from the asset
Independent & Proprietary Research – Our research process allocation and investment strategy as outlined in your Investment
starts with identifying appropriate mutual funds for the program. Policy Statement. Therefore, Signature Portfolios includes
Morningstar associates, a wholly owned subsidiary of Morningstar, systematic rebalancing that will re-align your portfolio with your
Inc., conducts this research and analysis, resulting in a selection of personalized asset allocation. This relieves you of the ongoing
funds that satisfy a variety of return, style, and expense characteristics. decisions involved in managing an investment portfolio.
Comprehensive Reporting – You will receive detailed reporting on
your account, including:
• Quarterly account statements (monthly, if there is activity in
- Current value of holdings
- Detailed trading activity (buys, sells, dividends, and
• Quarterly Performance Reporting
- Your portfolio’s current asset allocation
- Your portfolio’s performance versus benchmark goals
Flexible Fee Payment – Signature Portfolios is a fee-based account
in which you pay a quarterly fee, based on the value of your assets,
rather than a commission. Your fee will be deducted from the
money market position within your account. If you have multiple
Signature program accounts, you can designate one account to pay
the fees for all accounts in the Signature programs.1
NMIS Gateway™ Platinum/ProCash Plus™ – You are eligible to
open a separate NMIS Gateway Platinum or ProCash Plus account,
free of charge, through our brokerage firm: Northwestern Mutual
Investment Services, LLC. The NMIS Gateway Platinum and
ProCash Plus programs allow you to have unlimited checkwriting,
direct deposit, and other account features and benefits within
a separate brokerage account outside the Signature Portfolios
program.1 The NMIS Gateway Platinum account also offers an
awards program and debit card.
Certain rules and restrictions apply.
MODeL P ORTFOLIO CO N S T RUCT IO N
Constructing an appropriate portfolio extends beyond determining The Northwestern Mutual Wealth Management Company
your place on the efficient frontier. Individual investment options research area also assembles “market index models” which
must be selected to fill each piece of that asset allocation. Not only do consist of a blend of indexed securities. The models are designed
those investment options need to stand on their own merits, but the to closely track to their associated blended benchmarks by
combination of those investment options must be considered as well. holding funds that are managed to track the performance of
particular market indices.
The Signature Portfolios program offers you the advantage
of professionally constructed model portfolios. Morningstar
Indexed securities typically have lower expense ratios when
associates and the Northwestern Mutual Wealth Management
compared to actively managed mutual funds. These portfolios
Company research and assemble various funds in combinations
may also be desirable for clients seeking a tax-sensitive approach.
that diversify such factors as management style, sub-asset classes,
and industry sectors. The portfolios constructed by Morningstar
at each asset
associates are known as “customized” model portfolios, and
the portfolios constructed by the Northwestern Mutual Wealth
along the efficient
Management Company are known as “multi-manager” and
“market index” model portfolios. frontier, there are
Morningstar assembles “customized” model portfolios with three portfolio options
strategies – one comprised of a core group of mutual funds, one based on the
constructed with an extended number of mutual funds, and a customized, multi-
strategy that may be appropriate for tax-sensitive investors. manager, and market
The Northwestern Mutual Wealth Management Company
research area assembles “multi-manager” model portfolios
using a blend of mutual funds, including a number of funds investment strategy
from the Russell Investment Group. These multi-manager can guarantee a profit
models cover two strategies – one aimed at providing a style- or protect against a loss, your financial advisor will guide you to
neutral combination of funds and one that may be appropriate a model portfolio and strategy that is appropriate for you based
for tax-sensitive investors. on your financial objectives.
SI GNaTURe ReSeaRCH M eTH O D O LO G Y
Independent and reliable investment research and analysis is MutuAL FuNd SeLeCtIoNS
critical in helping you and your financial advisor make informed
Morningstar associates and the Northwestern Mutual Wealth
investment decisions. Morningstar associates, an industry
Management Company have developed a quantitative and qualitative
leader in mutual fund research, and Russell Investment Group
evaluation methodology that identifies funds that satisfy a number of
have been engaged to provide independent investment research
return, style, and expense characteristics.
and portfolio construction recommendations for the Signature
Portfolios program. Morningstar associates provides independent investment research
and ongoing analysis for certain mutual fund options available within
The Northwestern Mutual Wealth Management Company the Signature Portfolios program. The chart on the following page
research area screens the eTFs and other securities used in the illustrates the four-step process used to evaluate and select these funds.
market index models on an ongoing basis to ensure they have
appropriate performance, risk, and expense measures relative to Certain investment options in the Signature Portfolios program
peers and benchmarks. are monitored by the Northwestern Mutual Wealth Management
Company’s Investment Committee based on fund research and
The research and analysis used to select investment options for due diligence guidelines developed by Northwestern Mutual
the program, combined with the expert guidance of your financial Wealth Management Company. Russell Investments mutual funds
advisor, helps you rest easy knowing that you have an experienced and indexed securities are included in the program as a result of
investment team working with you. this process.
Russell funds are advised by an affiliate of Northwestern Mutual. Certain securities within the Signature Portfolios program, including Russell funds, do not undergo the same screening
and ongoing quantitative analysis applied to investments evaluated by Morningstar associates.
ReSeARCh MethodoLoGY FoR MutuAL FuNd eVALuAtIoN ANd SeLeCtIoN MutuAL FuNd FAMILY
The Signature Portfolios program
gives you access to the expertise O
of some of the most respected
Fund Scoring System: investment management
oNGoING MoNItoRING ANALYSIS • Risk & return companies. Below is a sampling
Seek to identify possible style • Manager tenure
drift, performance concerns, of some of the fund families
• Peer group comparison
or funds that require further available in the Signature Portfolios
qualitative analysis • Performance consistency
oNGoING PIMCo Funds
American Century Investments®
QuALItAtIVe ANALYSIS Fidelity® Advisor Funds
PoRtFoLIo BuILdING • Evaluate manager performance Franklin templeton Investments
“Bottom-up” Process: PoRtFoLIo • Turnover
• Assess how well funds work BuILdING MFS Investment Management®
• Portfolio concentration
together in a portfolio
• Style or market cap drift Russell Investments
• Determine overall correlation of
• Sector bets/market timing
managers and its effects on risk
Fund family availability subject to change.
Mak ING TH e RIGHT CH O I CeS AdVISoRY PRoGRAM oPtIoNS
Make S aLL THe DIF Fe ReN C e Clients with significant investable assets often
require more tailored investment services and
therefore may benefit from the level of professional
Signature Portfolios is a program offered by Northwestern Mutual advice and personal service that is available through
Investment Services, LLC and Northwestern Mutual Wealth our advisory programs:
Management Company, which are wholly owned subsidiaries
of The Northwestern Mutual Life Insurance Company Signature Annuities is an investment advisory
(Northwestern Mutual). program that combines the benefits of a tax-deferred
variable annuity with the expert guidance and personal
For 25 years, a FORTUNe® Magazine survey has named
service of a financial advisor.
Northwestern Mutual “america’s most admired” life insurance
company. What’s more, Northwestern Mutual’s well-earned Signature Choice is an advisory investment program
reputation is based on its financial strength, its long-standing
for investors who desire a high level of professional
commitment to the principles of mutuality, and its history of
advice in the areas of asset allocation, the selection
consistently delivering long-term value to its policyowners.
of securities, and portfolio rebalancing.
Northwestern Mutual maintained the highest available ratings for
financial strength from all four major rating agencies.* Signature Managed Accounts is an investment
Talk to your financial advisor today to learn more about Signature advisory program that provides investors access
Portfolios and other products and services. Before opening a to third-party asset management and specialized
Northwestern Mutual Signature Portfolios account, review the portfolio managers to create a highly customized
information contained in the Northwestern Mutual Signature investment portfolio of individual securities.
Portfolios Program Disclosure Brochure. You will also need to
agree to the terms of the Northwestern Mutual Signature Portfolios Private Client Services is a fully discretionary, highly
Client agreement. We look forward to having an opportunity to customized portfolio management solution that
help you pursue your financial goals. utilizes internal separate account equity and fixed
income management capabilities, along with other
investment vehicles such as mutual funds, ETFs,
* These third-party ratings are a measure of an insurance company’s financial options, and futures strategies, to manage a client’s
strength and do not apply to the performance of any investments in the Signature
Portfolios program. Investments in the Signature Portfolios program are not portfolio according to an established individualized
guaranteed, and their value can be less than your original investment. investment policy.
This brochure is intended to provide general information and is for educational purposes only. This is not intended to provide legal or tax advice.
Please consult your legal or tax professional for specific information.
Investment products and trust services are not insured by the FDIC, are not deposits or other obligations of or guaranteed by Northwestern Mutual
Wealth Management Company® Northwestern Mutual Investment Services, LLC or its affiliates, and are subject to investment risks, including
possible loss of the principal amount invested.
You should carefully consider the investment objectives, risks, expenses, and charges of the investment company
before you invest. Your financial advisor can provide you with a fund prospectus that will contain the information noted
within this brochure, and other important information that you should read carefully before you invest or send money.
The Northwestern Mutual Signature Portfolios program is an advisory program dually offered by Northwestern Mutual Wealth Management
Company (NMWMC), a wholly owned company of The Northwestern Mutual Life Insurance Company (NM) and limited purpose federal savings bank,
and Northwestern Mutual Investment Services, LLC (NMIS), member FINRA and SIPC, a wholly owned subsidary of NM, and a dually registered
broker-dealer and investment adviser. Securities are offered through NMIS. NM does not guarantee or insure the account’s performance or
investments made in the account and is not responsible for the investment advice given.
Depending on the products and/or services being recommended or considered, refer to the appropriate disclosure brochure for important
information on NMIS and/or NMWMC, their services, fees and conflicts of interest before investing or engaging in financial planning services. To
obtain a copy of one or more of these brochures, contact your representative.
Morningstar Associates, LLC is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. Morningstar Associates provides
fund selection and investment monitoring and analysis services to Northwestern Mutual Wealth Management Company, but is not serving in the
capacity of investment advisor to individual investors. Morningstar Associates is not affiliated with Northwestern Mutual Wealth Management
Company or its affiliates.
Russell Investment Group is a Washington USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is
a subsidiary of The Northwestern Mutual Life Insurance Company.
Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP® CERTIFIED FINANCIAL PLANNER™ and federally registered
CFP (with flame logo), which it awards to individuals who successfully complete initial and ongoing certification requirements.
Northwestern Mutual Financial Network is the marketing name for the sales and distribution arm of NM and its affiliates and subsidiaries.
61-1137 (1006) (REV 0310)