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|For those investors who are socially conscious, the Global Sustainability Index Fund may be the Fund for you. Companies that adhere to widely accepted sustainability principles can help protect the environment and foster more favorable living conditions for future generations. Their practices might include; stewardship of the environment, service to local communities and society at large, commitments to higher labor standards, focus on safe, high-quality products and exemplary and ethical management.
|Seeks to Replicate Index
If you are an investor who wants to invest in a broad, diversified set of large- and mid-cap developed global companies in North America, Europe and Asia-Pacific, that are selected based on sector ranking of environmental, social and government factors, you may find this Fund attractive.
|2% on shares sold or exchanged within 30 days of purchase|
|Overall Morningstar RatingTM|
Among 848 world stock funds derived from a weighted average of the fund's 3- and 5-year risk-adjusted returns as of 12/31/16.
Global Sustainability Index received 4 stars for the 3-year rating among 848 world stock funds and 4 stars for the 5-year rating among 669 funds. The 10-year Morningstar Rating is not available.
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.
©2017 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.
*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 12/31/2016, the Global Sustainability Fund received the following: ESG Score 58.35 – Controversy Score/5 (28.15/5) 5.83 = Sustainability score 52.52 (3% category rank; 253 funds) and a Sustainability Rating of 5 Globe Icons (or "High").
|YTD Total Return||1.85% (as of 01/20/17)|
|Total Net Assets||$264,006,536 (as of 12/31/16)|
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|Global Sustainability Index||2.07%||1.07%||7.52%||7.52%||3.68%||10.31%||N/A||4.31%|
|MSCI World ESG Index||2.24%||1.22%||7.25%||7.25%||3.61%||10.19%||N/A||4.46%|
|Morningstar Cat. Avg.|
|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 0.30%. 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, 2017 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.
|Gross Expense Ratio||Net Expense Ratio‡|
|Global Sustainability Index||0.37%||0.31%|
|‡Includes contractual expense reimbursements that, if not extended, will end on July 31, 2017. The Fund also includes voluntary expense reimbursements that may change or end at any time.|
|Global Sustainability Index||-0.87%||4.56%||27.28%||15.15%||-5.68%|
|MSCI World ESG Index||-1.11%||4.87%||27.56%||14.48%||-5.42%|
|Morningstar Category Avg. World Stock||-1.69%||2.79%||25.19%||15.84%||-7.93%|
|Performance quoted represents past performance and does not guarantee future results.|
|Top 10 Holdings||Fund|
|Johnson & Johnson||1.8%|
|Alphabet Inc Class C||1.4%|
|Procter & Gamble Co||1.3%|
|Verizon Communications Inc||1.2%|
|Merck & Co Inc||1.0%|
|Roche Holding Ltd||0.9%|
|% of Portfolio||13.2%|
|Top 10 Country Weightings||Fund||Benchmark|
|Risk Characteristics*||Global Sustainability Index||MSCI World ESG Index|
|Up Market Capture||100.59||100.00|
|Down Market Capture||99.52||100.00|
|*||Above risk characteristics are based on a 3-year time period|
|Number of Holdings||832|
|Portfolio Turnover||16.97% (as of 03/31/16)|
|Dividend Income Last Quarter||N/A|
|Capital Gain Income Last Quarter||N/A|
|Weighted Average Market Cap ($Mil)||$79,865|
|Benchmark||MSCI World ESG Index|
|Morningstar Category||World Stock|
|Trailing 12-Month Price-to-Earnings Ratio|
|Historical 5-Year Earnings Growth|
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.
Not FDIC insured | May lose value | No bank guarantee
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