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|The Multi-Manager Emerging Markets Debt Opportunity Fund may be a good choice for those long-term investors seeking exposure to emerging or frontier markets debt issuers. The Fund may invest in sovereign issuers and companies of any size located in a number of countries throughout the world and in securities denominated in foreign currencies and in U.S. dollars. Our approach blends specialist managers selected from a broad universe of external global managers into a single fund. Each Sub-Adviser acts independently from the others and utilizes its own distinct investment style in selecting securities while seeking total return through both current income and capital appreciation.
|Total return through both income and capital appreciation
|Initial Investment Minimum|
|If you're a long-term investor looking to diversify your investments by pursuing the income potential of emerging or frontier markets debt issuers, then this Fund may be right for you. It is intended for investors who are aware that foreign markets may involve additional risks, such as social and political instability, reduced market liquidity and currency volatility.|
|2% on shares sold or exchanged within 30 days of purchase|
Sub-Advisers and Allocations subject to change at any time.
|YTD Total Return||-18.38% (as of 03/31/20)|
|Distribution Rate*||N/A (as of 03/31/20)|
|30-Day SEC Yield w/ Waivers*||5.57%
|30-Day SEC Yield w/o Waivers*||5.47%
|Total Net Assets||$174,176,258
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|Multi-Manager Emerging |
Markets Debt Opportunity
|50% JP Morgan EMBI |
and 50% JP Morgan GBI-EM
|Morningstar Cat. Avg.|
Emerging Markets 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 0.93%. 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.
|Gross Expense Ratio||Net Expense Ratio‡|
|Multi-Manager Emerging Markets Debt Opportunity||1.13%||0.96%|
|‡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 Emerging Markets Debt Opportunity||-6.29%||12.29%||7.93%||-8.72%||-2.34%|
|50% JP Morgan EMBI Global Diversified and |
50% JP Morgan GBI-EM Global Diversified
|Morningstar Category Avg. Emerging Markets Bond||-4.93%||10.25%||10.51%||-5.98%||-0.80%|
|Performance quoted represents past performance and does not guarantee future results.|
|0 - 3 Years||20.6%|
|3 - 5 Years||15.5%|
|5 - 7 Years||13.2%|
|7 - 10 Years||24.6%|
|CCC or below||5.3%||2.9%|
|Cash & Cash Equivalents||5.9%||0.0%|
|Emerging Markets Debt||92.7%||97.2%|
|Cash & Cash Equivalents||5.7%||0.0%|
|Corporate - High Yield||1.4%||0.5%|
|Corporate - Investment Grade||0.2%||2.3%|
|Number of Holdings||543|
|Portfolio Turnover||99.56% (as of 03/31/18)|
|Effective Duration†||5.68 YRS|
|Average Maturity||9.06 YRS|
|Weighted Average Coupon||6.90%|
|Yield to Maturity||6.17%|
|Dividend Income Last Quarter||N/A|
|Capital Gain Income Last Quarter||N/A|
|Benchmark||50% JP Morgan Emerging Markets Bond Index Global Diversified
(EMBI Global Diversified) and 50% JP Morgan Government
Bond-Emerging Market Index Global Diversified
(GBI-EM Global Diversified)
|Morningstar Category||Emerging Markets 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.|
|Credit/Default Risk: is the risk that the inability or unwillingness of an issuer or guarantor of a fixed-income security to meet its payment or other financial obligations will adversely affect the value of the Fund's investments and its returns. Changes in the credit rating of a debt security held by the Fund could have a similar effect.|
|Currency Risk: Foreign currencies will fluctuate in value relative to the U.S. dollar; therefore you may lose money if the local currency of a foreign market depreciates against the U.S. dollar.
|Emerging and Frontier Markets Risk: Emerging and frontier market investing may be subject to additional economic, political, liquidity and currency risks not associated with more developed countries. Additionally, frontier countries generally have smaller economies or less developed capital markets than traditional emerging markets and, as a result, the risks of investing in emerging market countries are magnified in frontier countries.|
|Foreign (Non-U.S.) Securities Risk: Investing in foreign (non-U.S.) securities may result in the Fund experiencing more rapid and extreme changes in value than a fund that invests exclusively in securities of U.S. companies, due to less liquid markets, foreign government intervention and adverse economic, political, diplomatic, financial and regulatory factors.|
|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.|
|Interest-Rate Risk: Increases in prevailing interest rates will cause fixed-income securities, including convertible securities, held by the Fund to decline in value.|
|Liquidity Risk: Some securities held by the Fund may be difficult to sell, or illiquid, particularly during times of market turmoil. Illiquid securities also may be difficult to value. If the Fund is forced to sell an illiquid asset to meet redemption requests or other cash needs, the Fund may be forced to sell at a loss.|
|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.|
|Non-Diversified Risk: The Fund invests in a smaller number of securities than the average mutual fund. The change in value of a single holding may have a more pronounced effect on the Fund’s net asset value and performance than for other funds.|
|JP Morgan Emerging Markets Bond Index Global Diversified (EMBI Global Diversified) is a uniquely weighted USD-denominated emerging markets sovereign bond index. The EMBI Global Diversified has the same instrument composition as the market-capitalization weighted EMBI Global, which includes USD-denominated fixed and floating rate instruments issued by sovereign and quasi-sovereign entities. The EMBI Global Diversified limits the weights of the index countries by only including a specified portion of those countries' eligible current face amounts of debt outstanding. It is not possible to invest directly in an index.|
|JP Morgan Government Bond-Emerging Market Index Global Diversified (GBI-EM Global Diversified) tracks the performance of local currency debt issued by emerging market governments. The index incorporates a constrained market-capitalization methodology in which individual issuer exposures are capped at 10% (with the excess distributed to smaller issuers), for greater diversification among issuing governments. It is not possible to invest directly in an index.
|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.|
Northern Active M U.S. Equity Fund (NMUSX)
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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