Fixed Income

Multi-Manager High Yield Opportunity

Ticker:

NAV AS OF 11/29/23

NMHYX

$8.20
$0.04

FUND LITERATURE

Fact Sheet

Holdings

Commentary

Multi-Manager Sub-Adviser Allocation

1Q23 Fund Performance Review

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Summary

The Multi-Manager High Yield Opportunity Fund is designed to provide competitive performance in a broad range of market environments. Our approach blends high yield strategies that are differentiated by investment approach, performance profile, and portfolio characteristics in an effort to achieve an attractive risk-return profile. This highly diversified, opportunistic Fund can invest in high yield corporate securities as well as other asset classes such as investment grade corporate debt, bank loans, and convertible bonds. With this opportunity set the Fund seeks investments that offer comparable return potential to high yield bonds with the added benefit of diversification. The Fund's current allocations include a traditional high yield with a relative value approach, a concentrated strategy with a focus on middle market debt and bank loans, and a diversified strategy incorporating top down views that offers attractive up capture.

Fund Objective

The Fund seeks total return consisting of a combination of income and capital appreciation.

Fund Strategy

Total return approach to high yield investing that is implemented by combining a complementary set of investment managers designed to achieve an attractive risk-return profile.
Opportunistic strategy that seeks to emphasize the most attractive areas of the market from a quality and sector perspective, while maintaining a diversified investment approach.
The Fund will also invest in asset classes outside of traditional high yield, particularly bank loans, which can offer comparable return potential with the added benefit of diversification.

Investor Profile

If you're looking for a total-return-oriented high yield fund that's designed to provide competitive performance in a broad range of market environments, you may want to consider the Multi-Manager High Yield Opportunity Fund. This well diversified, opportunistic Fund will invest, under normal circumstances, at least 80% of its net assets in bonds and other fixed income securities that are rated below investment grade. It can invest in high yield corporate securities as well as other asset classes such as investment grade corporate debt, bank loans, and convertible bonds. With this opportunity set the Fund seeks investments that offer comparable return potential to high yield bonds with the added benefit of diversification. The multi-manager approach allows for diversification across investment styles while the broad opportunity set enhances the ability to offer competitive returns in a variety of market environments.

Redemption Fee

2% on shares sold or exchanged within 30 days of purchase.

Risk/Reward Potential

Sub-Adviser Allocations

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

SUB-ADVISER	TARGET ALLOCATION*	ROLE IN PORTFOLIO
BlackRock Investment Management, LLC,***	40%	Diversified portfolio that utilizes a combination of top-down views and bottom-up fundamental analysis. The strategy is expected to have a dynamic risk profile, determined by the team’s views and current market environments.
Polen Capital Credit, LLC (formerly known as DDJ Capital Management, LLC)**	25%	Concentrated, bottom-up oriented strategy that specifically focuses on the middle market segment of the high yield universe in addition to leveraged loans.
Nomura Corporate Research and Asset Management Inc.	35%	Diversified, relative value approach incorporating a top-down perspective. The strategy is expected to have a higher risk profile versus the benchmark, with higher up capture ratios.

*Actual allocations may vary.
**Effective January 31, 2022, DDJ Capital Management, LLC, was acquired by Polen Capital Management, LLC. and DDJ Capital Management, LLC name was changed to Polen Capital Credit, LLC.
***BlackRock Investment Management, LLC, began managing a portion of the Multi-Manager High Yield Opportunity Fund effective on or about February 24, 2023.

Important risk information can be found on the Portfolio tab.

Not FDIC insured | May lose value | No bank guarantee

View investment terms definitions

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