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Active M Emerging Markets Equity

 
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TickerNAV AS OF 06/05/23
NMMEX$13.27 $0.00 Same Icon
 
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Snapshot
The Active M Emerging Markets Equity Fund may be a good choice for those long-term investors looking to diversify their portfolio by pursuing the growth potential of emerging and frontier market equity securities. The Fund utilizes a "multi-manager" approach whereby the Fund's assets are allocated to one or more sub-advisers, in percentages determined at the discretion of the Fund's investment adviser. Each Sub-Adviser acts independently from the others and utilizes its own distinct investment style in selecting securities while seeking long-term capital appreciation. Any income received is incidental to the Fund's objective.
Fund Objective
Capital Appreciation
Fund Strategy
  • Invest at least 80% of net assets in equity securities of emerging and frontier markets — emerging and frontier markets are defined as markets in MSCI Emerging Markets Index and MSCI Frontier Markets Index.
  • Select complementary investment strategies from a broad universe of investment managers, where manager selection and allocations are determined using a multi-factor based screening and optimization approach, augmented with deep qualitative and fundamental due diligence.
  • Blend managers into a single fund in an effort to provide an attractive combination of risk/return.
  • Design to deliver robust alpha and broad diversification, while maintaining factor neutral biases (such as size, value and momentum) across emerging markets equities.
Investor Profile

If you're a long-term investor looking to diversify your investments by pursuing the growth potential of emerging and frontier market equities, then this Fund may be right for you. It is intended for investors who are aware that foreign markets may involve additional risks, such as social and political instability, reduced market liquidity and currency volatility.

Investing in emerging markets entails extra risk. The securities markets of emerging countries are less liquid, more volatility, and less regulated than the markets of more developed countries. This risk is magnified in frontier countries since they generally have smaller economies or less developed capital markets than traditional emerging markets.
Redemption Fee
2% on shares sold or exchanged within 30 days of purchase
Risk/Reward Potential
”Risk/Reward
Sub-Adviser Allocations

Sub-Advisers and Allocations subject to change at any time.

SUB-ADVISERTARGET ALLOCATION*ROLE IN PORTFOLIO
Axiom International Investors, LLC 40% Opportunistic bottom-up growth strategy seeks to identify high-quality companies exhibiting signs of improvement and/or acceleration in key business drivers.
Westwood Global Investments, LLC 40% Value-oriented, opportunistic investment approach. The portfolio tends to exhibit a less benchmark-oriented approach to value investing.
PanAgora Asset Management, Inc. 20% Highly diversified quantitative value approach that derives alpha through stock selection, utilizing a broad range of factors. Expected to provide consistent risk-adjusted performance as a result of its diversified investment approach.
*Actual allocations may vary.

Fund Literature

 

Morningstar Sustainability Rating*


Among 1,219 Diversified Emerging Markets Funds as of 12/31/2018. Based on 96.89% of AUM.

 

 
        Important risk information can be found on the Portfolio tab.

         

         

        *The Morningstar Sustainability Rating is a measure of how well the companies held by a fund are managing their Environmental, Social and Governance ("ESG") risks and opportunities when compared with similar funds. A fund's Sustainability Rating is assigned in two steps: First, a Morningstar Portfolio Sustainability Score is derived from an asset-weighted average of the underlying company ESG scores with deductions made for holdings involved in controversial incidents. Next, funds are sorted into five normally distributed groups by comparing a fund’s Portfolio Sustainability Score with that of its Morningstar Category peers. The peer groups are assigned as follows: 5 Globe Icons (“High”) = top 10% of funds in an asset category; 4 Globe Icons ("Above Average") = next 22.5% of funds; 3 Globe Icons ("Average") = next 35%; 2 Globe Icons ("Below Average") = next 22.5% and 1 Globe Icon ("Low") = next 10%.

        For a portfolio to receive a Morningstar Sustainability Score, at least 50% of its assets must be in one of the more than 4,500 companies covered by Sustainalytics (a research firm which collects ESG data) globally. To receive a Morningstar Sustainability Rating, at least 10 funds in a Morningstar Category must also receive a Portfolio Sustainability Score. The Sustainability Rating is portfolio-based, not performance-based. It should be used alongside traditional risk, return, and style metrics as well as qualitative assessments of a fund's investment process and how well it has been executed over time. Sustainability scores are calculated on a monthly basis and range from 0 to 100, 100 being the best. For more information, visit global.morningstar.com/SustainableInvesting.

        As of 3/31/2019, the Active M Emerging Market Equity Fund received the following: ESG Score 52.32 – Controversy Score 5.30 which equals a Sustainability score 47.02 (9% category rank; 1,267 funds) and a Sustainability Rating of 5 Globe Icons (or "High").

         
        CUSIP665162483
        YTD Total Return4.32% (as of 06/05/23)
        Inception Date11/19/08
        Total Net Assets$818,180,385 (as of 03/31/19)

        Total Returns

        Total Returns for Quarter Ending 03/31/19
         Annualized
            Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
        Incept.
        Active M Emerging Markets Equity-0.26%6.50%6.50%-12.90%9.30%2.21%9.03%10.65%
        MSCI Emerging
        Markets Index        		0.84%9.92%9.92%-7.41%10.68%3.68%8.94%7.56%
        Morningstar Cat. Avg.
        Diversified Emerging Mkts        		1.14%10.27%10.27%-9.31%9.11%2.61%8.92%N/A
        Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here.

        Northern Trust Investments, Inc. has contractually agreed to reimburse a portion of the operating expenses of the Fund (other than certain excepted expenses, i.e., acquired fund fees and expenses; the compensation paid to each Independent Trustee of the Trust; expenses of third party consultants engaged by the Board of Trustees; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; expenses in connection with the negotiation and renewal of the revolving credit facility; and extraordinary expense and interest) to the extent the "Total Annual Fund Operating Expenses" exceed 1.10%. The "Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the excepted expenses, including but not limited to acquired fund fees and expenses, that are not reimbursed. This contractual limitation may not be terminated before July 31, 2019 without the approval of the Board of Trustees. In the absence of contractual expense reimbursements, yield, total return, growth since inception and dividends would have been reduced. Total return is based on net change in NAV assuming reinvestment of distributions.

        Annual Expense Ratios

         
         Gross Expense RatioNet Expense Ratio‡
        Active M Emerging Markets Equity1.26%1.10%
        ‡Includes contractual expense reimbursements that, if not extended, will end on July 31, 2019. The Fund also includes voluntary expense reimbursements that may change or end at any time.

        Calendar Year Returns

         
               2018      2017      2016      2015      2014
        Active M Emerging Markets Equity-14.90%35.41%12.65%-16.06%-4.22%
        MSCI Emerging Markets Index-14.57%37.28%11.19%-14.92%-2.19%
        Morningstar Category Avg. Diversified Emerging Mkts-16.07%34.17%8.47%-13.79%-3.01%
        Performance quoted represents past performance and does not guarantee future results.
        Important risk information can be found on the Portfolio tab.

         
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        Portfolio Composition
           
        Top 10 HoldingsFund
        Samsung Electronics Co Ltd4.9%
        Taiwan Semiconductor Manufacturing Co Ltd4.5%
        Alibaba Group Holding Ltd Sponsored ADR3.5%
        Tencent Holdings Ltd3.3%
        Tata Consultancy Services Ltd2.8%
        China Mobile Ltd2.4%
        Itau Unibanco Holding SA Sponsored ADR Pfd2.3%
        Wal-Mart de Mexico SAB de CV2.3%
        Taiwan Semiconductor Manufacturing Co Ltd2.1%
        Suzano Papel e Celulose SA2.0%
        As of 03/31/19
        Sector WeightingsFundBenchmark
        Financials20.4%24.2%
        Information Technology19.6%14.6%
        Consumer Discretionary14.7%13.4%
        Consumer Staples12.3%6.4%
        Communication Services9.6%12.3%
        Industrials7.9%5.4%
        Materials5.7%7.4%
        Energy5.1%8.1%
        Real Estate2.8%3.2%
        Health Care1.4%2.6%
        Utilities0.5%2.5%
           
        Top 10 Country WeightingsFundBenchmark
        China24.7%33.0%
        South Korea13.9%13.0%
        Brazil12.2%7.2%
        Taiwan12.1%11.4%
        India8.6%9.2%
        South Africa6.0%5.9%
        Mexico5.7%2.7%
        Thailand2.3%2.3%
        Russia2.2%3.7%
        Indonesia1.8%2.2%
        As of 03/31/19
        Risk Characteristics*Active M Emerging Markets EquityMSCI Emerging Markets Index
        Beta0.991.00
        Up Market Capture92.91100.00
        Down Market Capture100.30100.00
        Information Ratio–0.520.00
        *Above risk characteristics are based on a 3-year time period
        DateHoldings File
        As of 03/31/19Insert Icon
        As of 12/31/18Insert Icon

        Fund Characteristics

        Number of Holdings372
        Portfolio Turnover36.14% (as of 03/31/18)
        Dividend ScheduleAnnually
        Dividend Income Last QuarterN/A
        Capital Gain Income Last QuarterN/A
        Weighted Average Market Cap ($Mil)$91,326
        BenchmarkMSCI Emerging Markets Index
        Morningstar CategoryDiversified Emerging Markets
        Trailing 12-Month Price-to-Earnings Ratio
        Fund13.69
        Benchmark13.18
        Price-to-Book Ratio
        Fund1.82
        Benchmark1.71
        Historical 5-Year Earnings Growth
        Fund11.07
        Benchmark16.42
        Asset Allocation 
        Stocks96.9%
        Cash3.1%
        Equity Risk: Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed-income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
        Emerging and Frontier Markets Risk: Emerging and frontier market investing may be subject to additional economic, political, liquidity and currency risks not associated with more developed countries. Additionally, frontier countries generally have smaller economies or less developed capital markets than traditional emerging markets and, as a result, the risks of investing in emerging market countries are magnified in frontier countries.
        MSCI Emerging Markets IndexSM is a free float-adjusted market capitalization index that is designed to measure equity market performance in the global emerging markets. It is not possible to invest directly in an index.
        Multi-Manager Risk is the risk that the sub-advisers' investment styles will not always be complementary, which could affect the performance of the Fund.
        .
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          Christopher E. Vella, CFA<sup>&reg;</sup>, CIO

          Christopher E. Vella, CFA®, CIO

          Portfolio Manager

          Northern Active M Emerging Markets Equity Fund (NMMEX)
          Northern Active M International Equity Fund (NMIEX)
          Northern Engage360TM Fund (NENGX)
          Northern Multi-Manager Emerging Markets Debt Opportunity Fund (NMEDX)
          Northern Multi-Manager Global Listed Infrastructure Fund (NMFIX)
          Northern Multi-Manager Global Real Estate Fund  (NMMGX)
          Northern Multi-Manager High Yield Opportunity Fund (NMHYX)

          With Northern Trust Since 2004
          Began Career in 1993

          Christopher E. Vella, CFA®, is Senior Vice President of Northern Trust's Multi-Manager Solutions Practice. He is Chief Investment Officer with responsibility for manager research and portfolio construction processes across Northern Trust's Multi-Manager Solutions Practice. He is responsible for the global manager research platform, consisting of approximately $95B in assets across 200 investment strategies. He manages a team of approximately 25 investment professionals across all traditional asset classes. The team covers all external manager relationships on behalf of Northern Trust's private and institutional clientele.

          Prior to joining Northern Trust in 2004, Mr. Vella was a founding member of Goldman Sach's external manager business which consists of institutional and private client assets. While at Goldman, he managed the international and emerging markets equity team. Prior to Goldman Sachs, Mr. Vella spent close to 6 years at SEI Investments working primarily on international equity and emerging markets equity manager research. He has over 20 years of manager research and multi-manager portfolio construction experience.

          Mr. Vella received a B.S. magna cum laude in finance with a minor in applied mathematics from Lehigh University and was elected into the Phi Beta Kappa honor society. He is a member of the New York Society of Financial Analysts. He is an active CFA® charterholder.

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            Not FDIC insured | May lose value | No bank guarantee

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            Please carefully read the prospectus and summary prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds before investing. Call 800-595-9111 to obtain a prospectus and summary prospectus, which contains this and other information about the funds.

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