Northern Funds U.S. Quality ESG Fund Q3 2025 Commentary
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Northern Trust Asset Management5 FollowersFollow5ShareSavePlay(6min)CommentsSummaryU.S. economic activity defied expectations for a slowdown despite clear signs of labor market deceleration.Most major asset class returns were positive in the quarter, with equities outpacing fixed income.The fund underperformed its benchmark for the quarter.ESG Laggards also outperformed, further weighing on fund returns given our emphasis on high-quality leaders.Looking ahead, we will continue to focus on investing in companies with favorable environmental, social and governance (ESG) qualities. Santipong Poodok/iStock via Getty Images U.S. economic activity defied expectations for a slowdown despite clear signs of labor market deceleration. Outside of the labor market, U.S. economic data proved resilient across consumer-related activity and survey-related measures. However, U.S. job growth slowed to levels rarely observed outsideThis article was written byNorthern Trust Asset Management5 FollowersFollowNorthern Trust Asset Management is a global investment manager that helps investors navigate changing market environments in efforts to realize their long-term objectives. Entrusted with $1.2 trillion in assets under management as of March 31, 2024, we understand that investing ultimately serves a greater purpose and 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 in an effort to craft innovative and efficient solutions that seek to 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.
Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company. Note: This account is not managed or monitored by Northern Trust Asset Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Northern Trust Asset Management's official channels.Quick InsightsWhat drove NUEIX's underperformance relative to the Russell 1000 Index?NUEIX underperformed due to its emphasis on high-quality, sustainable leaders, while ESG laggards and defensive sectors—areas it underweights—outperformed during the quarter.How did sector positioning impact NUEIX's relative returns in Q3?Favorable sector positioning, particularly a modest underweight in consumer staples, contributed 24 basis points to relative returns, partially offsetting broader underperformance.What is NUEIX's forward-looking investment approach amid recent volatility?I continue to prioritize companies with strong ESG profiles, robust business fundamentals, and reliable cash flows, maintaining discipline despite short-term market headwinds.Recommended For You