Northern Trust Asset Management | US Quality ESG Fund

Who We Serve

What We Do

About

Insights & Research

Office Locations

Legal/Privacy

Seeking to Capture ESG and Financial Sustainability

Northern U.S. Quality ESG Fund

NUEIX

The Northern U.S. Quality ESG Fund targets high-quality companies that are industry leaders with regards to their environmental, social and governance (ESG) practices. It implements an innovative ESG integration strategy, alongside a proprietary quality screen, to quantitatively target companies that exhibit both financial and non-financial sustainability. By targeting companies that manage material ESG risks better than peers and eliminating exposure to companies involved in objectionable business lines, the Fund is able to invest at the intersection of high-quality, high ESG-rated companies that we believe are best positioned to outperform.

Source: FactSet, Northern Trust. Data as of 3/31/22. Potential Carbon Emissions measure potential emissions assuming all carbon in reserves and future carbon emissions are combusted.

517.4

83.8%

(Tons of CO2/$M Invested)

Russell 1000 Index

Northern U.S. Quality ESG Fund

THE FUND HAS A LOWER CARBON FOOTPRINT

Source: Northern Trust, Morningstar Direct. Data as of 3/31/2022.

Standard Deviation (%)

Return (%)

US Fund Large Blend

Russell 1000 TR USD

Northern U.S. Quality ESG Fund

3-year risk/return performance

Outperformance, with less risk

© 2022 Northern Trust Corporation. Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A. Incorporated with limited liability in the U.S. Products and services provided by subsidiaries of Northern Trust Corporation may vary in different markets and are offered in accordance with local regulation. For more information, read our legal and regulatory information about individual market offices.

About Northern Funds

An Investment in Northern Funds is not insured by the FDIC, and is not a deposit or obligation of, or guaranteed by The Northern Trust Company or any affiliate. An investment in Northern Funds involves risks, including possible loss of principal.

Not FDIC insured | May lose value | No bank guarantee View investment terms definitions.

Environmental, Social and Governance (ESG) Risk: 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. The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. The Russell 1000 represents approximately 92% of the U.S. market. Index performance returns do not reflect any advisory fees, transaction costs or expenses. It is not possible to invest directly in any index.

Effective July 31, 2020, Class K and Class I replaced the Fund’s predecessor Shares Class (“Shares Class”).The Fund’s performance returns are shown for Class K and Class I for periods starting July 31, 2020 and August 21, 2020, respectively. For Class I, the performance return from July 31, 2020 through August 20, 2020 reflects the performance and expenses of the Fund’s Class K shares. Class K and Class I would have similar returns because each class is invested in the same portfolio of securities. The Fund’s performance returns prior to July 31, 2020 are shown for the Shares Class, which had an inception date of October 2, 2017. The performance of the Fund’s Shares Class has not been adjusted to reflect the expenses applicable to Class K or Class I shares since the classes have different expense ratios than the expense ratio of the Shares Class. The expenses applicable to the Fund’s Class K and Class I shares are lower than the expenses applicable to the Shares Class. Excluding the effect of any fees, expenses, fee waivers or reimbursements, the performance of the Fund’s Class K shares and Class I shares would have annual returns substantially similar to those of Shares Class because the classes invest in the same portfolio of securities. Please refer to the current prospectus for further information.

The Morningstar® Sustainability Rating is a measure of how well the portfolio holdings are managing their ESG Risk relative to the portfolio’s Global Category peer group. The Morningstar Historical Sustainability Score is a weighted average of the trailing 12 months of Morningstar Portfolio Sustainability Scores. More-recent portfolios are weighted more heavily than older portfolios. Based on their Morningstar Historical Sustainability Score, funds are assigned absolute category and percent ranks within their Morningstar Global Categories. Higher ratings are better and indicate that a fund has, on average, more of its assets invested in companies that have lower ESG risk as characterized by Sustainalytics. The Morningstar Sustainability Rating is depicted by globe icons where High equals 5 globes and Low equals 1 globe. Morningstar updates its Sustainability Ratings monthly and uses Sustainalytics' ESG scores from the same month as the portfolio as-of date. Visit http://corporate1.morningstar.com/SustainableInvesting/ for more detailed information about the methodology and calculation frequency. © 2022 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.

Morningstar Sustainability Rating

Overall Morningstar Rating

Among 1,232 large blend funds derived from a weighted average of the fund's 3-year risk-adjusted returns as of 3/31/22. Northern US Quality ESG (Class I) received 5 stars for the 3-year rating among 1,232 large blend funds. The Morningstar Rating 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.

Barron’s examined all of the U.S. large-company stock funds — actively managed mutual funds and ETFs — in Morningstar’s universe with more than $300 million AUM. They then screened for funds that received a “high” or “above average” Morningstar Sustainability Rating as of 12/31/2021. The funds were then ranked based on 1-year total return as of 12/31/2021. NUEIX was ranked 13 out of the 157 funds on this year’s list.

Northern Trust Asset Management is a global investment manager that helps investors navigate changing market environments, so they can confidently realize their long- term objectives. Entrusted with more than $1.2 trillion in assets,* we understand that investing ultimately serves a greater purpose. We believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management to craft innovative and efficient solutions that deliver targeted investment outcomes. As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.

About Northern Trust Asset Management

Current Sustainability Score based on 99.76% of Corporate AUM and 100.00% of Sovereign AUM | Global Category: 3,363 US Equity Large Cap Blend Funds | Sustainability Score and Sustainability Rating as of 2/28/22. Barron’s annually compiles their list of top-performing sustainable funds by selecting from all actively managed U.S. large-company stock funds, both mutual and exchange traded, with more than $300 million in Morningstar’s universe. Overall rating among 1,232 large blend funds derived from a weighted average of the fund’s 3-year risk-adjusted returns as of 3/31/22.

Barron’s

Environmental, Social and Governance (ESG) Risk:

Equity Risk:

83.8

Potential Carbon Emissions

Reduction

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. Performance data current to the most recent month end is available by calling 800-595-9111.

Please carefully read the summary prospectus or prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds carefully before investing. Call 800-595-9111 to obtain a summary prospectus or prospectus. The summary prospectus and prospectus contain this and other information about the Funds. Shares of the Northern Funds are offered only by a current Prospectus and are intended solely for persons to whom shares of US registered funds may be sold. This site shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of shares of the Northern Funds in any jurisdiction in which such offer, solicitation or sale would be unlawful.

NUEIX Standardized Performance

Barron’s

•

An early believer in the value of sustainable investing and active stewardship — our results speak for themselves:

For more than thirty years, Northern Trust Asset Management has been building and managing solutions for some of the world’s most sophisticated and progressive ESG investors.

The Fund leverages different robust datasets, so it can evaluate firm-specific controversies with significant negative environment, social or governance impacts. By focusing on those companies that manage these material ESG issues, such as climate change, better then their peers, the Fund is able to significantly reduce its carbon footprint vs. the index.

Learn More

Entrusted with managing more than $158 billion of sustainable assets

•

Best Application of ESG and Best ESG Manager in Asia — Asia Asset Management

•

Responsible Investment Leader 2021 — Responsible Investment Association Australasia

•

Managing four of the world’s largest ESG index funds

•

Best-performing U.S. asset manager on environmental and social shareholder resolutions — two years in a row — ShareAction

•

Founding member One Planet Summit Asset Managers Initiative

•

Founding signatory Climate Action 100+

•

TCFD supporter

•

SASB Investor Advisory Group Member

Learn More

Northern Trust. Data as of March 31, 2022.

Asia Asset Management. Best Application of ESG, Best ESG Manager in Asia as of 12/31/2021. Awarded for 2022.

Responsible Investment Association Australasia RIAA, Responsible Investment Leader 2021 as of 12/31/21. Awarded for 2021.

eVestment. Data as of December 31, 2021. Universe for comparison consists of 70 total passive equity products within “All ESG-Focused Universe.”

ShareAction. ShareAction 2021 report “Voting Matters” — Northern Trust Asset Management ranked 34th overall globally and 1st among U.S. asset managers.

Assets under management as of March 31, 2022.

NUEIX’s carbon reduction vs. the benchmark

About the Rankings