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Equity Active

Active M Emerging Markets Equity

 

(formerly known as Multi-Manager Emerging Markets Equity)

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TickerNAV AS OF 07/22/16
NMMEX$16.30 $0.04 Arrow Up Icon
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Snapshot
The Active M Emerging Markets Equity Fund (formerly known as the Multi-Manager 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. Our approach blends specialist managers from a broad universe of external managers into a single fund. In seeking to create an optimal portfolio, the Fund utilizes three principal styles intended to complement each other: Growth, value and quantitative value. 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 active managers from a broad universe of investment managers, where manager selection and allocations are determined using a multi-factor based optimization approach and 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 (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. Primary driver of out performance is country weights. Expected to provide consistent risk-adjusted performance as a result of its diversified investment approach.
*Actual allocations may vary.
Important risk information can be found on the Portfolio tab.

 

CUSIP665162483
YTD Total Return12.34% (as of 07/22/16)
Inception Date11/19/08
Total Net Assets$818,666,897 (as of 06/30/16)

Total Returns

Total Returns for Quarter Ending 06/30/16
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Active M Emerging Markets Equity4.28%1.50%7.44%-11.09%-1.51%-3.11%N/A11.04%
MSCI Emerging
Markets Index
4.00%0.66%6.41%-12.05%-1.56%-3.78%N/A9.88%
Morningstar Cat. Avg.
Diversified Emerging Mkts
3.61%2.28%6.22%-9.89%-1.30%-3.19%N/AN/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%. This contractual limitation may not be terminated before July 31, 2016 without the approval of the Board of Trustees. In the absence of fee waivers, 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 Equity1.21% 1.10%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2016.

Calendar Year Returns

 
       2015      2014      2013      2012      2011
Active M Emerging Markets Equity-16.06%-4.22%0.44%19.75%-17.73%
MSCI Emerging Markets Index-14.92%-2.19%-2.60%18.22%-18.42%
Morningstar Category Avg. Diversified Emerging Mkts-13.79%-3.01%-0.14%18.15%-19.86%
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 Ltd6.1%
Taiwan Semiconductor Manufacturing Co Ltd4.4%
China Mobile Ltd3.8%
Tencent Holdings Ltd2.6%
Tata Consultancy Services Ltd2.4%
Itau Unibanco Holding SA2.1%
Taiwan Semiconductor Manufacturing Co Ltd2.0%
Hon Hai Precision Industry Co Ltd2.0%
Emaar Properties1.9%
Shinhan Financial Group Co Ltd1.9%
% of Portfolio29.2%
As of 06/30/16
Sector WeightingsFundBenchmark
Information Technology28.1%22.5%
Financials24.3%26.0%
Consumer Discretionary11.9%10.5%
Consumer Staples7.6%8.5%
Materials7.1%6.3%
Telecommunication Services6.4%6.6%
Energy6.3%7.5%
Industrials6.1%6.2%
Health Care1.1%2.7%
Utilities1.1%3.2%
TOTAL100.0%100.0%
   
Top 10 Country WeightingsFundBenchmark
China17.7%24.6%
South Korea14.2%14.6%
Taiwan12.1%12.1%
Brazil10.9%7.2%
India8.8%8.4%
South Africa8.3%7.3%
Mexico6.2%4.1%
Thailand2.8%2.3%
Russia2.7%3.7%
United Arab Emirates2.2%0.9%
TOTAL85.9%85.2%
As of 06/30/16
Risk Characteristics*Active M Emerging Markets EquityMSCI Emerging Markets Index
Beta0.951.00
Up Market Capture96.43100.00
Down Market Capture97.66100.00
Information Ratio0.020.00
*Above risk characteristics are based on a 3-year time period
DateHoldings File
As of 06/30/16Insert Icon
As of 03/31/16Insert Icon

Fund Characteristics

Number of Holdings303
Portfolio Turnover37.58% (as of 03/31/16)
Dividend ScheduleAnnually
Dividend Income Last QuarterN/A
Capital Gain Income Last QuarterN/A
Weighted Average Market Cap ($Mil)$52,916
BenchmarkMSCI Emerging Markets Index
Morningstar CategoryDiversified Emerging Markets
Trailing 12-Month Price-to-Earnings Ratio
Fund12.29
Benchmark13.08
Price-to-Book Ratio
Fund1.53
Benchmark1.50
Historical 5-Year Earnings Growth
Fund10.07
Benchmark11.82
Asset Allocation 
Stocks95.3%
Cash4.7%
TOTAL100.0%
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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Jessica K. Hart

Jessica K. Hart

Portfolio Manager

Northern Active M Fund (NMUSX)
Northern Active M Emerging Markets Equity Fund (NMMEX)
Northern Active M International Equity Fund (NMIEX)
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)
Northern Multi-Manager Large Cap Fund  (NMMLX)
Northern Multi-Manager Mid Cap Fund  (NMMCX)
Northern Multi-Manager Small Cap Fund (NMMSX)

With Northern Trust Since 2000
Began Career in 1999

Jessica K. Hart, Senior Vice President of Northern Trust leads the global fund construction, supports the manager research and program management groups to create multi-manager solutions for the manager of managers practice.

Ms. Hart joined Northern Trust in 2000 and has since been responsible for due diligence on prospective managers, performance and oversight of all multi-manager funds, portfolio construction and a key member of the management team that developed portfolio optimization processes for Northern Trust's clients.

Ms. Hart received a B.S. in economics from the University of Wisconsin and an MBA from New York University, Stern School of Business.

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Christopher E. Vella, CFA<sup>&reg;</sup>, CIO

Christopher E. Vella, CFA®, CIO

Portfolio Manager

Northern Active M Fund (NMUSX)
Northern Active M Emerging Markets Equity Fund (NMMEX)
Northern Active M International Equity Fund (NMIEX)
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)
Northern Multi-Manager Large Cap Fund  (NMMLX)
Northern Multi-Manager Mid Cap Fund  (NMMCX)
Northern Multi-Manager Small Cap Fund (NMMSX)

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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