Alpha is the additional return a portfolio or strategy provides beyond what would be expected for the amount of risk it takes.

Barra GEMLT Growth model computes an asset's sensitivities to industry groups, market characteristics and fundamental data. This includes to the growth factor that is based on earnings and sales growth characteristics, among others.

Beta: A beta investment means a portfolio or investment has the same risk as the market, as represented by a chosen market index.

Cap-weighted index is an index in which each constituent is weighted based on its market capitalization. This approach gives larger companies a greater influence on index performance than smaller ones.

Correlations: Correlation is the extent of which two securities move with each other, where highly correlated securities have similar return patterns. Low correlation between securities often contributes to diversification, a way to lower portfolio risk.

Intangible asset is a nonphysical asset, such as software, data, intellectual property, brand value or organizational knowledge, that may contribute to a company’s long-term earnings power.

Market capitalization is a company's market value, calculated by multiplying the company's share price by the number of shares outstanding.

MSCI World IMI Index captures large-, mid- and small-cap representation across developed markets countries.

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MSCI World Growth Index captures large- and mid-cap securities exhibiting overall growth style characteristics across developed market countries.

Return on invested capital is after-tax profitability of capital invested by a company’s shareholders and debt holders.

Risk-adjusted return is an investment return evaluated in relation to the amount of risk taken to achieve it.

T-stat is a statistical measure that helps assess whether a relationship shown in a regression analysis is likely to be meaningful rather than the result of chance. For large, normally distributed data, a T-stat greater than 2 (or less than -2) suggests statistical significance.

IMPORTANT INFORMATION

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, The Northern Trust Company (Singapore Branch), and The Northern Trust Company of Hong Kong Limited.

Issued in the United Kingdom by Northern Trust Global Investments Limited, regulated by the Financial Conduct Authority (License Number 191916); issued in the European Economic Area (EEA) by Northern Trust Fund Managers (Ireland) Limited, regulated by the Central Bank of Ireland (License Number C21810); issued in Australia by Northern Trust Asset Management (Australia) Limited (ACN 648 476 019), which holds an Australian Financial Services Licence (License Number 529895) and is regulated by the Australian Securities and Investments Commission (ASIC); issued in Hong Kong by The Northern Trust Company of Hong Kong Limited, which is regulated by the Hong Kong Securities and Futures Commission; and issued in Singapore by The Northern Trust Company (Singapore Branch), which is regulated by the Monetary Authority of Singapore.

For Canada, Asia-Pacific (APAC) and Europe, Middle East and Africa (EMEA) markets, this information is directed to institutional, professional and wholesale clients or investors only and should not be relied upon by retail clients or investors. For U.S. NTAM, the information contained herein is intended for use with all current or prospective clients of Northern Trust Investments, Inc (NTI).

This content may not be edited, altered, revised, paraphrased, or otherwise modified without the prior written permission of Northern Trust Asset Management (NTAM). The information contained herein is intended for use with current or prospective clients of Northern Trust Investments, Inc (NTI) or its affiliates. The information is not intended for distribution or use by any person in any jurisdiction where such distribution would be contrary to local law or regulation. NTAM and its affiliates may have positions in and may effect transactions in the markets, contracts and related investments different than described in this information. This information is obtained from sources believed to be reliable, its accuracy and completeness are not guaranteed, and is subject to change. Information does not constitute a recommendation of any investment strategy, is not intended as investment advice and does not take into account all the circumstances of each investor.

This report is provided for informational purposes only and is not intended to be, and should not be construed as, an offer, solicitation or recommendation with respect to any transaction and should not be treated as legal advice, investment advice or tax advice. Recipients should not rely upon this information as a substitute for obtaining specific legal or tax advice from their own professional legal or tax advisors. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. Indices and trademarks are the property of their respective owners. Information is subject to change based on market or other conditions.

Artificial Intelligence (AI): AI refers to computational systems designed to perform tasks that typically require human intelligence, such as pattern recognition, decision-making, and prediction. In investment management, AI may be used to support portfolio construction, risk assessment, and trading strategies. Machine Learning (ML): ML is a subset of AI that enables systems to identify patterns based on data inputs without being explicitly programmed. ML models may be used in stock selection to identify investment opportunities based on historical and real-time data. Natural Language Processing (NLP): NLP is a field of AI focused on the interpretation and generation of human language by machines. In financial contexts, NLP may be applied to analyze textual data such as earnings reports to inform investment decisions.  Large Language Models (LLMs): LLMs are advanced NLP systems trained on extensive datasets to understand and generate human-like text. In investment management, LLMs may assist in synthesizing qualitative information or generating insights, but do not independently make investment decisions.

Past performance is not a guarantee of future results. Performance returns and the principal value of an investment will fluctuate. Performance returns contained herein are subject to revision by NTAM. Comparative indices shown are provided as an indication of the performance of a particular segment of the capital markets and/or alternative strategies in general. Index performance returns do not reflect any management fees, transaction costs or expenses. It is not possible to invest directly in any index. Net performance returns are reduced by investment management fees and other expenses relating to the management of the account. Gross performance returns contained herein include reinvestment of dividends and other earnings, transaction costs, and all fees and expenses other than investment management fees, unless indicated otherwise. For U.S. NTI prospects or clients, please refer to Part 2a of the Form ADV or consult an NTI representative for additional information on fees.

Unless otherwise noted, the statements expressed herein are solely opinions of Northern Trust. Northern Trust does not make any representation, assurance, or other promise as to the accuracy, impact, or potential occurrence of any events or outcomes expressed in such opinions.

Forward-looking statements and assumptions are NTAM’s current estimates or expectations of future events or future results based upon proprietary research and should not be construed as an estimate or promise of results that a portfolio may achieve.  Actual results could differ materially from the results indicated by this information. Historical trends are not predictive of future results.

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