Northern Funds Small Cap Core Fund Class K (NSCKX)

Overview

The company is designed to cater to investors interested in tapping into the potential of small capitalization companies through a dedicated investment fund. Specifically targeting companies whose market capitalization aligns with those listed in the Russell 2000® Index, the fund aims to invest a minimum of 80% of its net assets into equity securities of such entities. Given the nature of small capitalization companies, which typically reinvest their earnings to fuel growth and expansion, the fund focuses on investments that are expected to retain their earnings rather than distribute them as dividends. This investment strategy reflects a belief in the long-term growth potential of these smaller companies, despite their current modest dividend payouts.

Products and Services

• Equity Securities Investment

  This service involves the fund investing a substantial portion of its assets, specifically at least 80%, into equity securities of small capitalization companies. The targeted companies for these investments are those whose market capitalization ranks within the range of companies listed in the Russell 2000® Index at the time of investment. This strategy is aimed at leveraging the growth potential of small cap companies for the benefit of fund investors.

• Growth Retention Focus

  In line with the investment strategy, the fund predominantly selects companies that are known to retain their earnings to support current operations and future growth instead of paying out dividends. This approach is predicated on the belief that reinvesting profits back into the company will yield higher future value for shareholders, making it an attractive proposition for investors seeking long-term capital appreciation.