| ANNUALIZED SINCE INCEPTION | QUARTERLY | YTD |
|---|---|---|
| 10.53% | 22.28% | 27.93% |
The Northern Active M Emerging Markets Equity Fund returned 22.28% in Q2 2026, underperforming the MSCI Emerging Markets Index's 24.05% return. The benchmark was driven by a sharp rally in AI and data center infrastructure, with Taiwan and South Korea surging 48.86% and 87.58% respectively as semiconductor manufacturers benefited from accelerating AI-related capital spending. Several companies appreciated over 200%. The fund's underperformance stemmed primarily from an underweight to a Taiwanese bellwether semiconductor company and broader underweight to information technology. Overweights to underperforming markets including Peru, Mexico, Brazil, South Africa, and Indonesia also detracted. China declined 6.63% on weak consumption, though the fund's China holdings in healthcare, technology, and industrials added value, as did the underweight position. India gained 10.07% but lagged the broader rally. The multi-manager structure showed mixed results: Axiom and FIAM added value through semiconductor and component exposure, while Westwood's value approach led to an underweight in the surging technology sector.
The fund employs a multi-manager approach across emerging markets, with sub-advisers Axiom, FIAM, and Westwood pursuing complementary strategies including semiconductor and AI exposure, financials and energy, and value-focused positioning respectively.
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| Date | Letter | Tickers | Keywords | Pitches | Quick Takes |
|---|---|---|---|---|---|
| Aug 18 2026 | 2026 Q2 | - | AI, China, emerging markets, Information Technology, semiconductors, South Korea, Taiwan | - | The fund returned 22.28% but lagged the benchmark's 24.05% as AI-driven semiconductor demand propelled Taiwan and South Korea to massive gains. The underweight to a Taiwanese semiconductor bellwether and broader technology underexposure hurt performance, as did overweights to lagging Latin American and other emerging markets. China holdings added value despite market weakness. Multi-manager structure delivered mixed results across technology and value strategies. |
| May 11 2026 | 2026 Q1 | - | AI, China, commodities, emerging markets, oil, semiconductors, Taiwan, technology | - | Northern's emerging markets fund outperformed by 479bp in Q1 2026 through superior stock selection across multiple sectors. Geopolitical volatility created regional divergence, with commodity exporters outperforming while energy importers declined. AI-driven semiconductor recovery boosted Taiwan and Korea. China weakness from consumption and real estate headwinds. Strong sub-adviser performance across the board. |
| Feb 5 2026 | 2025 Q4 | NMMEX | China, commodities, emerging markets, semiconductors, South Korea, Taiwan | - | Northern's emerging markets fund outperformed in Q4 2025 through strong South Korean semiconductor stock selection and underweighting China. Multiple sub-adviser approach delivered 34.14% annual returns versus 33.57% benchmark. Rising commodities helped Latin American and African positions while Taiwan underweight hurt performance. |
| Nov 11 2025 | 2025 Q3 | BABA | AI, China, commodities, emerging markets, materials, Mining, semiconductors, technology | - | The fund outperformed emerging markets in Q3 2025 by capitalizing on AI-driven semiconductor strength in Taiwan and South Korea while benefiting from commodity price rises through South Africa and Peru exposure. Strategic underweighting of high-valued India added value, though China underweighting and missed opportunities like Alibaba's AI rally hurt performance. |
| Jul 31 2025 | 2025 Q2 | - | AI, Brazil, China, emerging markets, India, semiconductors, South Korea, Taiwan | - | Northern's emerging markets fund slightly outperformed in Q2 2025 through superior country allocation, particularly underweighting China while overweighting Greece and Mexico. AI-driven semiconductor demand boosted Taiwan and South Korea, though the fund's underweight to Taiwanese semis hurt. Multiple sub-advisers delivered mixed results with strong China and Brazil selection offset by weak India performance. |
| Mar 31 2025 | 2025 Q1 | - | AI, China, emerging markets, India, Performance, Underweight | - | Northern's emerging markets fund underperformed due to underweight China exposure, missing the country's 15% rally driven by stimulus and AI optimism. Multi-manager structure showed divergent China views based on fundamentals versus governance concerns. Brazil overweight helped offset some weakness from poor selection in India and other Asian markets. |
| QUARTER | THEMES | TAGS |
|---|---|---|
| 2026 Q2 |
AIAI and data center infrastructure drove a sharp rally in emerging markets, particularly in Taiwan and South Korea. Semiconductor chip and electronic component manufacturers benefited from accelerating AI-related capital spending, with several companies appreciating over 200%. The fund's underweight to AI-exposed semiconductor names detracted from performance, though some semiconductor holdings were among the largest contributors. |
Data Centers Semiconductors Taiwan South Korea |
Semiconductor CycleThe semiconductor sector was the clear performance leader in emerging markets, advancing 73.27% during the quarter. Taiwan and South Korea surged 48.86% and 87.58% respectively as chip manufacturers benefited from AI demand. The fund's underweight to a Taiwanese bellwether semiconductor company proved detrimental, though exposure to various semiconductor companies through sub-advisers added value. |
Foundries Semi Equipment Taiwan South Korea AI | |
ChinaChina declined 6.63% during the quarter, weighed down by weakness in consumer discretionary and consumer staples as domestic consumption remained subdued. However, the fund's exposure to China added value through holdings in healthcare, information technology, and industrials. The underweight to China was also beneficial to relative performance. |
Consumer Discretionary Healthcare Information Technology Industrials | |
IndiaIndia gained 10.07% during the quarter, supported by bargain hunting and strength in financials and industrials, but still lagged the broader emerging markets rally driven by AI-related semiconductor demand in Taiwan and South Korea. |
Financials Industrials Value | |
| 2026 Q1 |
Semiconductor CycleTaiwan and South Korea gained on the back of large cap semiconductor and technology companies that benefited from continued artificial intelligence related investment and a cyclical recovery in memory and advanced logic chips. |
Memory Logic Taiwan Korea |
AILarge cap semiconductor and technology companies benefited from continued artificial intelligence related investment, driving gains in Taiwan and South Korea markets. |
Investment Technology Semiconductors | |
OilOil and commodity rich nations such as Brazil and Peru in Latin America, and Saudi Arabia in the Middle East, rose on higher commodities prices during the quarter. |
Commodities Brazil Peru Saudi Arabia | |
| 2025 Q4 |
Healthcare ITCareCloud helps smaller U.S. health practices manage data and collect payments. High switching costs lock in practices but also lock out competitors. Most RCMs have high fixed costs and too few clients, creating consolidation opportunities for CareCloud to buy cheaply and cut costs. |
RCM EHR Healthcare Consolidation Switching Costs |
CementICG owns cement plants in Kazakhstan and Tajikistan with significant energy and transport cost advantages. Newest dry process plants with heat recovery versus competitors' older wet process plants. Strategic locations 100km closer to customers than competitors. |
Energy Efficiency Transport Kazakhstan Dry Process Cost Advantage | |
ConstructionCTR Holdings builds structural frames and handles finishing work in Singapore. Most projects are public with stable government payments guaranteeing cash flow. Company had significant net cash and signed project backlog. |
Singapore Government Cash Flow Backlog Public Projects | |
| 2025 Q3 |
AIChinese internet-related stocks and semiconductor stocks in South Korea and Taiwan benefited from euphoric sentiment towards artificial intelligence. Alibaba rallied on announcement of manufacturing its own chips as well as AI platform. |
Semiconductors Internet Chips |
SemiconductorsSemiconductor stocks in South Korea and Taiwan performed strongly during the quarter. Stock selection strength was exhibited through semiconductor exposure in Taiwan and South Korea, with sub-advisers adding value through exposure to semiconductor stocks. |
Taiwan South Korea Technology | |
CommoditiesRising commodity prices, particularly gold, copper and platinum, supported mining stocks and strong returns in South Africa and Peru. Materials sector led with 23.99% return. |
Gold Copper Platinum Mining | |
| 2025 Q2 |
AISurging artificial intelligence and high performance computing semiconductor chips demand supported semiconductor stocks in Taiwan and South Korea during the quarter. |
Semiconductors Taiwan South Korea Computing |
SemiconductorsSemiconductor stocks in Taiwan and South Korea benefited from surging demand for AI and high performance computing chips, contributing to strong performance in these markets. |
AI Computing Taiwan South Korea Chips | |
| 2025 Q1 |
ChinaChina was buoyed by government stimulus measures announced in December, positive economic indicator readings including a fourth quarter YoY GDP of +5.4%, and optimism around domestic AI capabilities after DeepSeek released its lower-cost AI model. The strong return in China negatively impacted results of sub-advisers who were underweight due to negative business fundamentals trajectory and corporate governance concerns. |
Stimulus GDP AI DeepSeek |
AIOptimism around domestic AI capabilities in China emerged after DeepSeek released its lower-cost AI model, contributing to positive sentiment in Chinese markets during the quarter. |
DeepSeek China Technology |
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