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U.S. Quality ESG

TickerNAV AS OF 03/15/19
NUESX$11.14 $0.05 Arrow Up Icon

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For those investors who are socially conscious, the U.S. Quality ESG Fund may be the Fund for you. This Fund seeks to invest in high-quality companies that are industry leaders with regards to their environmental, social and government practices. These standards 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.
Fund Objective
Capital Appreciation
Fund Strategy
The strategy uses a proprietary multi-factor model based on rigorous academic and empirical research to target high-quality and highly-rated ESG U.S. large- and mid-cap companies. Using a quantitative, factor based approach, the strategy seeks to invest in companies that: meet certain criteria for ESG sustainability and exhibit strong business fundamentals, solid management, and reliable cash flows.
Investor Profile
If you are an investor who wants to invest in a high-quality, diversified portfolio of large- and mid-cap companies in North America that are selected based on sector ranking of environmental, social, government and financial factors, you may find this Fund attractive.
Risk/Reward Potential

Fund Literature


Morningstar Sustainability Rating*

Among 1,828 Large Blend Funds as of 12/31/2018. Based on 98.88% of AUM.


Important risk information can be found on the Portfolio tab.



*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

As of 12/31/2018, the U.S. Quality ESG Fund received the following: ESG Score 56.08 – Controversy Score 7.46, which equals a Sustainability score 48.62 (7% category rank; 1,828 funds) and a Sustainability Rating of 5 Globe Icons (or "High").


YTD Total Return
13.56% (as of 03/15/19)
Inception Date10/02/17
Total Net Assets$35,814,406 (as of 02/28/19)

Total Returns

Total Returns for Month Ending 02/28/19
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
U.S. Quality ESG3.57%2.18%12.54%4.82%N/AN/AN/A9.31%
Russell 1000 Index3.39%1.84%12.05%4.99%N/AN/AN/A9.24%
Morningstar Cat. Avg.
Large Blend

Total Returns

Total Returns for Quarter Ending 12/31/18
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
U.S. Quality ESG-9.21%-14.66%-4.82%-4.82%N/AN/AN/A0.58%
Russell 1000 Index-9.11%-13.82%-4.78%-4.78%N/AN/AN/A0.86%
Morningstar Cat. Avg.
Large Blend
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. ("NTI" or the "Investment Adviser") has contractually agreed to reimburse a portion of the operating expenses of the Fund (other than extraordinary expenses) to the extent the "Total Annual Fund Operating Expenses" exceed 0.43%. The "Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the extraordinary expenses that are not reimbursed. This contractual limitation may not be terminated before July 31, 2019 without the approval of the Fund's 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.

Annual Expense Ratios

 Gross Expense RatioNet Expense Ratio
U.S. Quality ESG2.08%0.43%
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

U.S. Quality ESG*  -4.82%N/A
Russell 1000 Index  -4.78%N/A
Morningstar Category Avg. Large Blend  -6.27%N/A
*The inception date of the Fund is October 2, 2017.

Performance quoted represents past performance and does not guarantee future results.
Important risk information can be found on the Portfolio tab.


Portfolio Composition
Top 10 HoldingsFund
Apple Inc3.8%
Microsoft Corp3.3%
Mastercard Inc 3.0%
Alphabet Inc 2.9%
Boeing Co2.5%
Merck & Co Inc2.4%
Home Depot Inc2.3%
Citigroup Inc1.9%
JP Morgan Chase & Co1.8%
PepsiCo Inc1.5%
As of 01/31/19
Sector WeightingsFundBenchmark
Information Technology22.2%20.2%
Health Care15.5%14.6%
Consumer Discretionary10.8%10.3%
Communication Services8.2%9.7%
Consumer Staples6.1%6.7%
Real Estate3.9%3.7%
As of 01/31/19
Risk Characteristics*U.S. Quality ESG*Russell 1000 Index
Up Market CaptureN/AN/A
Down Market CaptureN/AN/A
Information RatioN/AN/A
*Above risk characteristics are based on a 3-year time period. Inception date of the Fund is October 2, 2017.
DateHoldings File
As of 12/31/18Insert Icon
As of 09/30/18Insert Icon

Fund Characteristics

Number of Holdings190
Portfolio Turnover*
10.19% (as of 03/31/18)
Dividend ScheduleQuarterly
Dividend Income Last Quarter*$0.0445
Capital Gain Income Last Quarter*$0.0850
Weighted Average Market Cap ($Mil)$178,740
BenchmarkRussell 1000 Index
Morningstar CategoryLarge Blend
*The inception date of the Fund is October 2, 2017.
Trailing 12-Month Price-to-Earnings Ratio
Price-to-Book Ratio
Historical 5-Year Earnings Growth
Asset Allocation 
Environmental, Social and Governance (ESG) Investing Risk: is the risk stemming from the environmental, social and governance factors that the Fund applies in selecting securities. The Fund's ESG screening process may affect exposures to certain companies or industries and cause the Fund to forego certain investment opportunities.
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.
Large Cap Stock Risk: The risk that large-capitalization stocks as a group could fall out of favor with the market, causing the fund to underperform investments that focus solely on small- or medium-capitalization stocks.
Mid-Cap Risk: Mid-capitalization stocks typically carry additional risk, since smaller companies generally have higher risk of failure and, historically, their stocks have experienced a greater degree of volatility.
New Fund Risk: The Fund, because it is new with no operating history, may not grow or maintain an economically viable size, in which case the Board of Trustees of the Trust may determine to liquidate the Fund.
Quantitative Investing Risk: The value of securities or other investments selected using quantitative analysis can perform differently from the market as a whole or from their expected performance.
Russell 1000® Index is an unmanaged index which measures the performance of the 1,000 largest companies in the Russell 3000® Index, based on market capitalization. It is not possible to invest directly in an index.
Jeff Sampson, CFA<sup>&reg;</sup>

Jeff Sampson, CFA®

Portfolio Manager
Northern Income Equity Fund (NOIEX)
Northern U.S. Quality ESG Fund (NUESX)

With Northern Trust Since 1999
Began Career in 1999

Jeff Sampson, Senior Vice President and Senior Portfolio Manager on the Global Equity Team responsible for the implementation of several engineered equity strategies specializing in ESG investments, Tax Advantaged Equity, and Quality Dividend Focus. He currently co-manages the Northern Income Equity Fund and the Northern U.S. Quality ESG Fund.

Prior to joining Global Equity in 2007, Mr. Sampson managed a division of account managers within the Wealth Management group. Mr. Sampson joined Northern Trust in 1999.

Mr. Sampson received a BBA in Finance from the University of Wisconsin and an MBA in Accounting, Finance, and Managerial & Organizational Behavior with honors from the University of Chicago Booth School of Business. He is an active CFA® charterholder, and a member of the CFA Institute and the CFA Society Chicago.

Peter M. Zymali, CFP<sup>&reg;</sup>

Peter M. Zymali, CFP®

Portfolio Manager

Northern U.S. Quality ESG Fund (NUESX)

With Northern Trust Since 2002
Began Career in 2002

Peter Zymali, Vice President and Senior Portfolio Manager on the Global Equity Team responsible for the implementation of several engineered equity strategies specializing in ESG investments, Tax Advantaged Equity, and Quality Dividend Focus. He currently co-manages the Northern U.S. Quality ESG Fund.

Prior to joining Global Equity in 2007, Mr. Zymali was an investment consultant within the Global Family Office Group responsible for designing asset allocation strategies using an open architecture platform. Mr. Zymali joined Northern Trust in 2002.

Mr. Zymali received a B.S. in Finance from the University of Arizona and an MBA in Finance, Economics, and Managerial & Organizational Behavior from the University of Chicago Booth School of Business. Mr. Zymali is a Certified Financial PlannerTM professional.

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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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