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Equity Index

Global Real Estate Index

TickerNAV AS OF 02/22/19
NGREX$10.80 $0.06 Arrow Up Icon

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For those long-term investors who enjoy following the stock performance of real estate companies, this may be the fund for you. The Northern Global Real Estate Index Fund offers an opportunity to invest both inside and outside of the U.S. market and in an asset class you may not currently have in your portfolio. This Fund does have special risks, including sensitivity to changes in the overall economy and interest rate levels.
Fund Objective
Seeks to Replicate Index
Fund Strategy
  • Seek to duplicate the investment composition and overall performance of the stocks included in the MSCI ACWI IMI Core Real Estate Index.
  • Invest at least 80% of its net assets in equity securities in the Index, in weightings that approximate the relative composition of the Index.
  • Use proprietary quantitative techniques designed to minimize trading costs.
Investor Profile
If you're a long-term investor looking to diversify your investments by pursuing the growth potential of global real estate, 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 real estate equities involves special risks linked to the real estate market, including declines in the value of real estate, changes in the value of the underlying property, and defaults by borrowers. Foreign investing entails the risk that returns may be reduced by currency fluctuations.
Redemption Fee
2% on shares sold or exchanged within 30 days of purchase
Risk/Reward Potential
Overall Morningstar RatingTM
Morningstar Rating

Among 192 global real estate funds derived from a weighted average of the fund's 3-,5-, and 10-year risk-adjusted returns as of 1/31/19.

Global Real Estate Index received 4 stars for the 3-year rating among 192 global real estate funds, 4 stars for the 5-year rating among 152 funds and 3 stars for the 10-year rating among 106 funds.

The Morningstar RatingTM for funds, or "star rating," is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.

©2019 Morningstar, Inc. All Rights Reserved. Morningstar and/or its content providers are the proprietors of this information; do not permit its unauthorized copying or distribution; do not warrant it to be accurate, complete or timely; and are not responsible for damages or losses arising from its use.

Fund Literature

YTD Total Return11.57% (as of 02/22/19)
Inception Date07/26/06
Total Net Assets$1,967,257,614 (as of 01/31/19)

Total Returns

Total Returns for Month Ending 01/31/19
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Global Real Estate Index10.85%9.85%10.85%2.02%8.95%6.95%12.22%3.71%
MSCI ACWI IMI Core Real Estate Index*10.69%9.71%10.69%1.61%8.81%7.12%12.42%4.11%
Global Index
Morningstar Cat. Avg.
Global Real Estate

Total Returns

Total Returns for Quarter Ending 12/31/18
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Global Real Estate Index-5.06%-5.43%-6.68%-6.68%3.65%4.54%9.37%2.88%
MSCI ACWI IMI Core Real Estate Index*-4.98%-5.28%-7.18%-7.18%3.39%4.82%9.80%3.29%
Global Index
Morningstar Cat. Avg.
Global Real Estate
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 0.50%. The “Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the excepted 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.

*Effective July 31, 2018 the benchmark for the Global Real Estate Index Fund has changed from FTSE EPRA/NAREIT Global Index to MSCI ACWI IMI Core Real Estate Index which better aligns with the investment adviser’s view of the investable universe in the real estate sector and to provide additional representation of real estate investment trusts and broader market capitalization.

Annual Expense Ratios

 Gross Expense RatioNet Expense Ratio
Global Real Estate Index0.53%0.50%
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
Global Real Estate Index-6.68%14.36%4.35%-1.17%13.44%
MSCI ACWI IMI Core Real Estate Index*-7.18%14.54%3.95%0.24%14.20%
FTSE EPRA/NAREIT Global Index-6.37%13.99%3.75%-1.19%13.92%
Morningstar Category Avg. Global Real Estate-7.11%15.12%1.97%-0.92%11.67%
*Effective July 31, 2018 the benchmark for the Global Real Estate Index Fund has changed from FTSE EPRA/NAREIT Global Index to MSCI ACWI IMI Core Real Estate Index which better aligns with the investment adviser’s view of the investable universe in the real estate sector and to provide additional representation of real estate investment trusts and broader market capitalization.

Performance quoted represents past performance and does not guarantee future results.
Portfolio Composition
Top 10 HoldingsFund
Simon Property Group Inc3.2%
Prologis Inc2.5%
Public Storage1.9%
Equinix Inc1.8%
Welltower Inc1.6%
Equity Residential1.5%
AvalonBay Communities Inc1.5%
Sun Hung Kai Properties Ltd1.5%
Unibail-Rodamco-Westfield Stapled Secs Cons of 1 S1.4%
Vonovia SE1.4%
As of 01/31/19
Industry WeightingsFundBenchmark
Retail REITs16.7%16.6%
Office REITs10.5%10.5%
Real Estate Operating Companies10.2%10.3%
Residential REITs9.8%9.7%
Diversified REITs9.7%9.7%
Diversified Real Estate Activities9.4%9.5%
Real Estate Development8.7%8.8%
Specialized REITs7.8%7.8%
Industrial REITs6.6%6.6%
Health Care REITs6.5%6.5%
Hotel & Resort REITs3.5%3.5%
Top 10 Country WeightingsFundBenchmark
United States48.5%47.5%
Hong Kong8.6%7.7%
United Kingdom3.6%3.7%
As of 01/31/19
Risk Characteristics*Global Real Estate IndexMSCI ACWI IMI Core Real Estate
Up Market Capture101.12100.00
Down Market Capture100.25100.00
Information Ratio0.200.00
*Above risk characteristics are based on a 3-year time period
DateHoldings File
As of 01/31/19Insert Icon
As of 12/31/18Insert Icon
As of 11/30/18Insert Icon
As of 10/31/18Insert Icon
As of 09/30/18Insert Icon
As of 08/31/18Insert Icon

Fund Characteristics

Number of Holdings600
Portfolio Turnover9.53% (as of 03/31/18)
Dividend ScheduleQuarterly
Dividend Income Last Quarter$0.0521
Capital Gain Income Last QuarterN/A
Weighted Average Market Cap ($Mil)$15,274
Benchmark**MSCI ACWI IMI Core Real Estate Index
Morningstar CategoryGlobal Real Estate
**Effective July 31, 2018 the benchmark for the Global Real Estate Index Fund has changed from FTSE EPRA/NAREIT Global Index to MSCI ACWI IMI Core Real Estate Index.
Trailing 12-Month Price-to-Earnings Ratio
Price-to-Book Ratio
Historical 5-Year Earnings Growth
Asset Allocation 
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.
International Risk: International investing involves increased risk and volatility.
REIT/Real Estate Risk: Investments in the Fund are subject to the risks related to direct investment in real estate, such as real estate risk, regulatory risks, concentration risk, and diversification risk. Investments in REITs involve certain additional unique risks. By itself the Fund does not constitute a complete investment plan and should be considered a long-term investment for investors who can afford to weather changes in the value of their investments.
Index Fund Risk: The performance of the Fund is expected to be lower than that of the Index because of Fund fees and expenses. It is important to remember that there are risks associated with index investing, including the potential risk of market decline, as well as the risks associated with investing in specific companies.
MSCI ACWI IMI Core Real Estate Index is a free float-adjusted market capitalization index that consists of large, mid and small-cap stocks across 23 developed markets and 24 emerging markets countries engaged in the ownership, development and management of specific core property type real estate.
Thomas E. O'Brien, CFA<sup>&reg;</sup>

Thomas E. O'Brien, CFA®

Portfolio Manager

Northern Global Real Estate Index Fund (NGREX)
Northern Global Sustainability Index Fund (NSRIX)

With Northern Trust Since 2004
Began Career in 1997

Thomas E. O'Brien, Vice President of Northern Trust, is a portfolio manager with the international quantitative equity division. He manages the Northern Global Real Estate Index Fund and Northern Global Sustainability Index Fund.

Prior to joining Northern Trust in 2004, Mr. O'Brien was a principal at State Street Global Advisors in Boston.

Mr. O'Brien received a B.S. in finance from the University of Rhode Island and an MBA from Suffolk University. He is an active CFA® charterholder and a member of the CFA Society Chicago.

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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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