The International Equity Fund is designed to identify and efficiently exploit short term market inefficiencies using quality, value, and momentum factors to deliver alpha through a disciplined, systematic process. The Fund is designed to create a portfolio with similar risk, style, capitalization and industry characteristics as the MSCI EAFE Index. The investment management team attempts to achieve the Fund's objective by overweighting those stocks that it believes will outperform the Index and underweighting those stocks that it believes will underperform the Index.
- Use a proprietary, multi-factor quantitative stock selection model with the goal of providing excess return relative to the MSCI EAFE Index.
- Create a portfolio with risk, style, capitalization and characteristics similar to the MSCI EAFE Index while seeking to provide excess returns by overweighting or underweighting stocks in line with the Fund's philosophy.
- Actively manage portfolio based on relative attractiveness across valuation, sentiment and earnings quality criteria.
The Fund may be suitable for investors seeking potential for capital appreciation and portfolio diversification offered by investing in international securities. In addition, investing in non-U.S. markets may involve greater risks and above-average volatility.
2% on shares sold or exchanged within 30 days of purchase
Among 4,829 Foreign Large Value Funds as of 3/31/2019. Based on 99.30% of AUM.
*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 International Equity Fund received the following: ESG Score 57.97 – Controversy Score 5.68 which equals a Sustainability score 52.29 (13% category rank; 4,829 funds) and a Sustainability Rating of 4 Globe Icons (or "Above Average").
Important risk information can be found on the Portfolio tab.
Not FDIC insured | May lose value | No bank guarantee
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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