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|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.
|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|
Sub-Advisers and Allocations subject to change at any time.
|Overall Morningstar RatingTM|
Among 610 high yield bond funds derived from a weighted average of the fund's 3- and 5-year risk-adjusted returns as of 3/31/19.
Multi-Manager High Yield Opportunity received 4 stars for the 3-year rating among 610 high yield bond funds and 4 stars for the 5-year rating among 519 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.
©2019 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.
|YTD Total Return||7.32% (as of 11/19/19)|
|Distribution Rate*||6.96% (as of 11/19/19)|
|30-Day SEC Yield w/ Waivers*||6.89%
|30-Day SEC Yield w/o Waivers*||6.75%
|Total Net Assets||$366,215,127
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|Multi-Manager High |
|ICE BofAML U.S. |
|Morningstar Cat. Avg.|
High Yield Bond
|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 0.85%. The "Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the excepted expenses, including but not limited to acquired fund fees and expenses, that are not reimbursed. This contractual limitation may not be terminated before July 31, 2019 without the approval of the 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.
*Effective October 2017, ICE data services acquired BofA indices.
|Gross Expense Ratio||Net Expense Ratio‡|
|Multi-Manager High Yield Opportunity||0.93%||0.87%|
|‡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.|
|Multi-Manager High Yield Opportunity||-2.09%||7.88%||16.89%||-5.93%||1.94%|
|ICE BofAML U.S. High Yield Constrained Index||-2.27%||7.46%||17.49%||-4.61%||2.51%|
|Morningstar Category Avg. High Yield Bond||-2.59%||6.47%||13.30%||-4.01%||1.11%|
|Performance quoted represents past performance and does not guarantee future results.|
|0 - 3 Years||16.4%|
|3 - 5 Years||25.3%|
|5 - 7 Years||37.2%|
|7 - 10 Years||17.1%|
|CCC or below||29.8%||16.4%|
|Corporate - Industrial||66.7%||87.2%|
|Emerging Markets Debt||0.3%||0.1%|
|Number of Holdings||1,147|
|Portfolio Turnover||66.18% (as of 03/31/18)|
|Effective Duration†||2.89 YRS|
|Average Maturity||4.59 YRS|
|Weighted Average Coupon||6.76%|
|Yield to Maturity||7.55%|
|Dividend Income Last Quarter||$0.1435|
|Capital Gain Income Last Quarter||N/A|
|Benchmark||ICE BofAML U.S. High Yield Constrained Index*|
|Morningstar Category||High Yield Bond|
|All data is as of date indicated and subject to change.|
|Bond Risk: Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates.|
|High-Yield Risk: Although a high-yield fund's yield may be higher than that of fixed-income funds that purchase higher-rated securities, the potentially higher yield is a function of the greater risk that a high-yield fund’s share price will decline.|
|ICE BofAML U.S. High Yield Constrained Index contains all securities in the BofA Merrill Lynch U.S. High Yield Master II Index, but caps issuer based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%. The Index tracks the performance of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market. It is not possible to invest directly in an index.|
|Multi-Manager Risk is the risk that the sub-advisers' investment styles will not always be complementary, which could affect the performance of the Fund.|
|Quality Distribution: Credit quality ratings are based on the conservative average of Moody's, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor's nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor's nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to D (in default). Committed Cash includes any traded cash (forward settling trades), the sweep vehicle and commercial paper. The ratings represent the rating agencies' opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.|
|Characteristics: Benchmark and Fund analytics have been calculated using a third party vended model. All material has been obtained from sources believed to be reliable, but the accuracy, completeness and interpretation cannot be guaranteed. Information contained herein is current as of the date appearing in this material only and is subject to change without notice. Certain benchmark calculations may not match the published benchmark characteristics.|
|*Effective October 2017, ICE data services acquired BofA indices.|
Northern Active M Emerging Markets Equity Fund (NMMEX)
Northern Active M International Equity Fund (NMIEX)
Northern Engage360TM Fund (NENGX)
Northern Multi-Manager Emerging Markets Debt Opportunity Fund (NMEDX)
Northern Multi-Manager Global Listed Infrastructure Fund (NMFIX)
Northern Multi-Manager Global Real Estate Fund (NMMGX)
Northern Multi-Manager High Yield Opportunity Fund (NMHYX)
With Northern Trust Since 2004
Began Career in 1993
Christopher E. Vella, CFA®, is Senior Vice President of Northern Trust's Multi-Manager Solutions Practice. He is Chief Investment Officer with responsibility for manager research and portfolio construction processes across Northern Trust's Multi-Manager Solutions Practice. He is responsible for the global manager research platform, consisting of approximately $95B in assets across 200 investment strategies. He manages a team of approximately 25 investment professionals across all traditional asset classes. The team covers all external manager relationships on behalf of Northern Trust's private and institutional clientele.
Prior to joining Northern Trust in 2004, Mr. Vella was a founding member of Goldman Sach's external manager business which consists of institutional and private client assets. While at Goldman, he managed the international and emerging markets equity team. Prior to Goldman Sachs, Mr. Vella spent close to 6 years at SEI Investments working primarily on international equity and emerging markets equity manager research. He has over 20 years of manager research and multi-manager portfolio construction experience.
Mr. Vella received a B.S. magna cum laude in finance with a minor in applied mathematics from Lehigh University and was elected into the Phi Beta Kappa honor society. He is a member of the New York Society of Financial Analysts. He is an active CFA® charterholder.
Not FDIC insured | May lose value | No bank guarantee
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