Multi-Manager Emerging Markets Debt Opportunity
Jessica K. Hart

Jessica K. Hart

With Northern Trust since 2000
Began Career in 1999

Christopher E. Vella, CFA<SUP>&#174;</SUP>, CIO

Christopher E. Vella, CFA®, CIO

With Northern Trust since 2004
Began Career in 1993

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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.

Fund Objective: Total return through both income and capital appreciation

Initial Investment Minimum: $100,000

Redemption Fee: 2% on shares sold or exchanged within 30 days of purchase
Ticker SymbolDistribution Rate
Daily as of 07/21/14
30-Day SEC Yield
Monthly as of June 30, 2014
sub adviser heading

Managers and Allocations subject to change at any time.


Bluebay Asset Management LLP 50% Fundamental, bottom-up country analysis and selection focus. Relative value analysis then determines trade-offs between potential investments and risk management.
Lazard Asset Management LLC 50% Top down approach that begins with an assessment of the global macro environment, followed by bottom-up analysis of individual countries.
Updated Daily as of July 21, 2014
SymbolNMEDX Distribution Rate*N/A
CUSIP665162343 Tax-Equivalent Distribution Rate* N/A
Share Price$ 10.47 Updated Monthly as of June 30, 2014
Share Price Change$ 0.01Total Net Assets$115,936,119
YTD Total Return6.71% Updated Monthly as of June 30, 2014
Inception Date12/3/201330-Day SEC
30-Day SEC
Total Returns for Quarter Ended June 30, 2014
 Multi-Manager Emerging Markets Debt Opportunity50% JP Morgan EMBI Global Diversified Index and 50% JP Morgan GBI-EM Global Diversified IndexMorningstar Emerging Markets Bond Category Average
Year to Date6.40%7.35%6.60%
Since Inception6.93%8.02% N/A
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.

The Advisor has agreed to reimburse certain expenses of the Fund (excluding acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board of Trustees of the Trust; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; extraordinary expenses; and interest, if any) to the extent the "Total Annual Fund Operating Expenses" exceed 0.93%. The contractual limitation may not be terminated before July 31, 2015 without the approval of the Board of Trustees. In the absence of fee waivers, 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 RatioNet Expense Ratio
Multi-Manager Emerging Markets Debt Opportunity
1.29% 0.97%
Includes contractual expense reimbursements that, if not extended, will end on
July 31, 2015.
Multi-Manager Emerging Markets Debt OpportunityN/A
50% JP Morgan EMBI Global Diversified Index and 50% JP Morgan GBI-EM Global Diversified IndexN/A
Morningstar Category Avg.
Emerging Markets Bond
Performance quoted represents past performance and does not guarantee future results.
Number of Holdings332
Average Duration†4.8 YRS
Average Maturity7.1 YRS
Weighted Average Coupon7.08%
Yield to Maturity6.01%
Dividend ScheduleQuarterly
Dividend Income Last Quarter$0.0623
Capital Gain Income Last QuarterN/A
Benchmark50% JP Morgan EMBI Global Diversified Index and 50% JP Morgan GBI-EM Global Diversified Index
Morningstar CategoryEmerging Markets Bond
Maturity Distribution    Fund
0 - 3 Years    24.8%
3 - 5 Years    13.1%
5 - 7 Years    16.6%
7 - 10 Years    24.0%
10+ Years    21.5%
TOTAL 100.0%
Quality DistributionFundBenchmark
AA0.7% 1.3%
A18.9% 18.7%
BBB38.8% 52.1%
BB20.3% 16.7%
B6.9% 4.8%
CCC or below3.5% 4.6%
Not Rated10.9% 1.8%
TOTAL100.0% 100.0%
Sector WeightingsFundBenchmark
Emerging Markets Debt84.5%94.4%
High Yield Corporate7.1%2.0%
Investment Grade Corporate1.6%3.6%
TOTAL100.0% 100.0%
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.

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 (EMBI) Global Diversified Index® is market-weight limited benchmark that tracks total returns for sovereign bonds issued in the emerging markets, including US dollar-denominated Brady bonds, loans, and Eurobonds with an outstanding face value of at least $500 million and a remaining life of greater than 2 1/2 years.

JP Morgan GBI-EM Global Diversified Index tracks the performance of local currency debt issued by emerging market governments, whose debt is accessible by most of the international investor base. 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.

Quality Distribution: Credit quality ratings are compiled from two external rating agencies: Moody's and Standard & Poor's. We report the lowest rating of the two in the event there are any differences between them. If neither of these 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 A-3 (exhibits adequate protection parameters). Government securities consist of obligations issued or guaranteed by the U.S. Treasury. 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.
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Not FDIC insured | May lose value | No bank guarantee

†Northern tax-exempt fixed income funds' and Northern High Yield Fixed Income Fund's Average Duration is calculated using the modified duration formula. Other Northern fixed income funds show the option-adjusted duration. Duration is a measure of a bond fund's sensitivity to changes in interest rates.

*Distribution rate and tax-equivalent distribution rate represent the annualization of the Fund's distributions for the prior month ending on the date shown, including capital gain distributions. The 30-day SEC yield and tax-equivalent 30-day SEC yield represent the annualization of the Fund's net investment income, excluding capital gain income. The tax-equivalent distribution rate and tax-equivalent 30-day SEC yield are based on an assumed tax rate of 47.9% for Arizona, 55.7% for California and 43.4% for national municipal funds.

**Per share paid out May 27 with a record date of May 23. The amount shown represents dividends paid for net investment income and excludes distributions from capital gain income.

*View investment term definitions

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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