Quarterly Insights on Northern Multi-Manager Global Real Estate Fund as of Q2 2025

In the second quarter of 2025, the global real estate sector demonstrated a positive performance, with a return of 4.41% on the FTSE EPRA/NAREIT Developed Index. However, the Multi-Manager Global Real Estate Fund, which aims to outperform its benchmark, slightly underperformed, returning 4.38%.

The underperformance of the Multi-Manager Fund can be attributed to several factors. From a sector perspective, an overweight to timber REITs and single-family residential REITs detracted from the fund's performance. Stock selection in the U.S., specifically in industrials and cold storage, was the main source of underperformance.

On a positive note, stock selection in self-storage and retail sectors contributed positively to the fund's performance.

The sub-adviser responsible for managing the Multi-Manager Fund, MFS Investment Management, underperformed the benchmark in Q2 2025 due to poor stock selection, particularly in the U.S. markets. The specific replacement sub-adviser for the fund, which outperformed its benchmark in the same quarter, remains unnamed in the provided search results.

It's important to note that past performance does not guarantee future results for the FTSE®EPRA/NAREIT Developed Index or any investment product. The index is a global index designed to track the performance of listed real estate companies and REITs worldwide. It is free-float adjusted, liquidity, size, and revenue screened, making it suitable for investment products like derivatives and ETFs.

However, investments in REITs involve certain additional unique risks. The FTSE®EPRA/NAREIT Developed Index is associated with risks related to direct investment in real estate, such as real estate risk, regulatory risks, concentration risk, and diversification risk. Equity securities, including REITs, carry more risk and volatility compared to other forms of investments.

Moreover, international investing involves increased risk and volatility. From a country perspective, Western Europe and Australia outperformed in Q2 2025, while the U.S. lagged and had a negative return.

The FTSE®EPRA/NAREIT Developed Index does not constitute a complete investment plan and should be considered a long-term investment for investors who can afford to weather changes in the value of their investments. The Gross and Net Expense Ratios for the index are subject to change.

Meanwhile, other sub-advisers, such as Janus Henderson Investors, outperformed in Q2 2025, primarily due to stock selection in the United States, specifically in data centers, healthcare, and multifamily REITs.

There was wide sector dispersion during Q2 2025, with real estate operators, developers, office REITs, and data center REITs outperforming the broader REIT market. On the other hand, residential and healthcare REITs underperformed.

In conclusion, while the global real estate sector performed well in Q2 2025, individual fund performance can vary significantly due to factors such as sector allocation and stock selection. Investors should carefully consider these risks and factors when making investment decisions.

Quarterly Insights on Northern Multi-Manager Global Real Estate Fund as of Q2 2025