Multi-Manager High Yield Opportunity
NAV AS OF 09/26/22
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.
- 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.
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.
2% on shares sold or exchanged within 30 days of purchase.
Overall Morningstar Rating TM
Among 630 high yield bond funds derived from a weighted average of the fund's 3-, 5- and 10-year risk-adjusted returns as of 8/31/22.
Multi-Manager High Yield Opportunity received 4 stars for the 3-year rating among 630 high yield bond funds, 3 stars for the 5-year rating among 576 funds and 4 stars for the 10-year rating among 395 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.
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Sub-Advisers and Allocations subject to change at any time.
|SUB-ADVISER||TARGET ALLOCATION*||ROLE IN PORTFOLIO|
|Neuberger Berman Investment Advisers LLC||40%||Traditional high-yield strategy focusing on credit selection as well as allocation among sector and quality segments based on relative value. The portfolio may also invest in bank loans.|
|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.|
**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.
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 carefully 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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