PLANNING, SAVING, AND INVESTING FOR RETIREMENTSix Considerations for Eff ective Goals-based Investing

PLANNING, SAVING, AND INVESTING FOR RETIREMENT

1. Start with a Plan

2. Market Participation is Important

3. Risk Management is Key

4. Asset Allocation Drives Outcomes

5. Stay the Course to Pursue Your Goals

6. Cost Matters. Value Does Too.

Six Considerations for Eff ective Goals-based Investing

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#1: START WITH A PLAN

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• Determine your fi nancial goals

• Establish a time horizon for achieving your goals

• Seek to manage risk

• Assess your investable assets, future contributions and future spending needs

• Work with your fi nancial advisor to create and implement an eff ective investment plan

• Consider a professionally managed goals-based solution that is designed to help you reach your investment goals within a specifi ed time frame, such as the Goal Engineer Series from Northern Trust

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Considerations for a sound investment plan:

Financial

Goals

Time

Horizon

Risk

Management

Investable

Assets

Future

Contributions

Future

Income Needs

#2: MARKET PARTICIPATION IS IMPORTANT

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• Growing assets is a main objective for retirement investors

• Risk and return go hand in hand

• Historically, the markets have created value for investors over time

• Stocks have been one of the best investments to build wealth

• Goal Engineer seeks to provide risk-managed growth throughout your investment journey

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Hypothetical $10,000 investment — 1946 to 2019

Source: Northern Trust Investment Strategy, Ibbotson. Data from 12/31/1945 to 12/31/2019. Past performance is no guarantee of future results. Returns refl ect the reinvestment of dividends and other earnings. Returns of the indexes also do not typically refl ect the deduction of investment management fees, trading costs or other expenses. It is not possible to invest directly in an index. Indexes are the property of their respective owners, all rights reserved. Indexes used: Stocks = IA SBBI (Ibbotson) U.S. Large Stock Total Return USD which is the S&P 500 total return, Bonds = IA SBBI U.S. Long Term Government Total Return, Cash = IA SBBI U.S. 30-day TBill total return.

#3: RISK MANAGEMENT IS KEY

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• Investors must contend with many types of risk

• It’s important to understand the risks you assume, and to employ an investment plan that is designed to manage them in line with your goals

• Market risk is the potential for loss due to fl uctuations in market performance (market volatility)

• Infl ation risk is the probability that the purchasing power of your assets will decline over time as costs rise and the value of a dollar shrinks

• Longevity risk is the possibility of outliving your assets’ capacity to support your income needs

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The Goal Engineer Series is designed to manage multiple types of risk:

Market Risk Inflation Risk Longevity Risk

VOLATILITY HAPPENS

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• Market volatility can dramatically impact investment returns, especially over the short-term

• History demonstrates that after periods of signifi cant volatility, the stock market has not only recovered—but reached new highs

• Volatility at the start of your investment journey can be compensated for over time

• Volatility while you are drawing income from your investments—especially at the beginning of the distribution phase—can be detrimental

• Goal Engineer gradually reduces your portfolio’s stock allocation over time in an eff ort to minimize the eff ects of market volatility on your investment outcome

Source: Northern Trust Investment Strategy. Daily price of DJIA from 12/31/07 – 3/9/2009 and from 12/31/07 – 12/31/19. Past performance is no guarantee of future results. Returns do not refl ect the reinvestment of dividends and other earnings and are shown before the deduction of investment management fees. Returns of the indexes also do not typically refl ect the deduction of investment management fees, trading costs or other expenses. It is not possible to invest directly in an index.Indexes are the property of their respective owners, all rights reserved.

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Stock market returns

December 2007 – March 2009

(Short-term investment)December 2007 – December 2019

(Long-term investment)

Market Correction:

(-50.6%)

Subsequent Gain: +331.6%

INFLATION RISK IS REAL

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• Infl ation typically rises over the long-term; preparing for future infl ationary environments is prudent

• Infl ation can be unpredictable; some spending categories are impacted more than others

• Investments perceived as low risk—such as cash holdings—may actually be quite risky when viewed through the lens of infl ation

• Generally, in addition to building wealth, stocks have also been one of the best investments to outpace infl ation

• Goal Engineer allocates a portion of your assets to investments that seek to defend against rising infl ation and participate in the markets’ potential for growth

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Source: Northern Trust, Bloomberg, Bureau of Labor Statistics. Data through 12/31/2019. 1Entertainment is composed of one third each food away from home, transportation, and recreation. 2Cash is represented by Bloomberg Barclays U.S. Treasury Bills: 1–3 month Index. Past performance is no guarantee of future results. Returns refl ect the reinvestment of dividends and other earnings and are shown before the deduction of investment management fees, unless indicated otherwise. Returns of the indexes also do not typically refl ect the deduction of investment management fees, trading costs or other expenses. It is not possible to invest directly in an index. Indexes are the property of their respective owners, all rights reserved. 3U.S. Bureau of Labor Statistics: https://data.bls.gov/timeseries/APU0000710411; 2019 fi gure is as of 11/30/19. 42009: Average U.S. ticket price, http://www.natoonline.org/data/ticket-price/; 2019: https://www.boxoffi cemojo.com/about/adjuster.htm (estimated by Box Offi ce Mojo – an IMDb com-pany.) 5U.S. Bureau of Labor Statistics: https://data.bls.gov/timeseries/CUSR0000SEMF01; 2019 fi gure as of 11/30/19.

Infl ation can erode purchasing power over timeIce Cream (1/2 gal.)3

2009 = $4.23

2019 = $4.94

+16.8%

Movie Ticket4

2009 = $7.50

2019 = $9.01

+20.1%

Prescription5

2009 = $398.75

2019 = $530.47

+33.0%

Average Infl ation by Spending Category vs. Return on Cash (12/31/09 — 12/31/19)

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YOUR ASSETS MAY NEED TO LAST A LONG TIME

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• On average, a 65-year-old woman can expect to live another 21.5 years; a 65 year-old man can expect to live another 19 years1

• There’s a high probability you may need to draw an income from your portfolio for 20 years—and possibly even 30 years or more—beyond your retirement date

• During retirement, it can be critical to have an investment plan that seeks to provide stability and income; infl ation defense and the potential for growth are also important

• Over time, Goal Engineer gradually transitions the majority of your portfolio to bond funds to help defend against market volatility and provide income potential

• Goal Engineer maintains a meaningful allocation to stocks and infl ation-sensitive assets beyond your goal date so your assets have the potential to continue to grow and maintain purchasing power

Source: 1https://www.ssa.gov/planners/lifeexpectancy.html

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The probability of living to age 75 and beyond, for those currently age 65

Source: Chart: Social Security Administration, Period Life Table, 2016. https://www.ssa.gov/oact/STATS/table4c6.html

#4: ASSET ALLOCATION DRIVES OUTCOMES

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• Asset allocation is widely recognized as a critical factor in investment outcomes

• Asset allocation entails allocating your investment holdings to diff erent asset classes such as stocks (equity), bonds (fi xed income), real assets and cash

• Asset classes can be categorized as risk assets or risk control assets; each asset class included in the Goal Engineer Series serves a specifi c purpose

• Risk and risk control assets exhibit a low correlation with one another

• Goal Engineer features an optimized mix of risk and risk control assets diversifi ed across various sectors, industries, entities and countries

Diversifi cation is no guarantee against loss.

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RISK CONTROL ASSETS

Assets designed to dampen volatility and meet near-term goals

RISK ASSETSAssets designed to provide long-term

capital appreciation in a risk-efficient way

GLOBAL EQUITIESCapital Appreciation

(Growth)

HIGH YIELDIncome

Generation

NATURAL RESOURCES

Risk Management

GLOBAL REAL ESTATE

Risk Management

GLOBAL LISTED INFRASTRUCTURE

Risk Management

CASHLiquidity

Management

INVESTMENT GRADE FIXED

INCOMEIncome

Generation

INFLATION-PROTECTED

FIXED INCOMERisk

Management

#5: STAY THE COURSE TO PURSUE YOUR GOALS

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• Reacting emotionally to market news—positive or negative—can impede investment success

• A disciplined approach that is designed to take the guesswork out of investing may help you stay committed to achieving your goals

• The Goal Engineer Series follows a thoughtfully constructed risk-reduction path that adjusts your portfolio’s allocation over time, positioning for more growth earlier on while gradually reducing risk as time passes

• Goal Engineer seeks to provide a smoother path to your goals, to help you stick to your investment plan and increase the likelihood of a successful outcome

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Take the Right Risk at the Right Time

For illustrative purposes only, actual allocations will diff er.

Sample Portfolio Allocations: Goal Engineer Series

Income

2035 2030 2025 2020 2015Stable

Income2040

Infl ation Sensitive

Growth

Time to Goal

#6: COST MATTERS. VALUE DOES TOO.

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• The Goal Engineer Series comprises risk-managed portfolios for six time horizons, as well as a stable income portfolio

• Goal Engineer off ers a turnkey investment solution to and through retirement, supported by Northern Trust’s time-tested asset allocation, portfolio construction and glidepath development expertise

• Goal Engineer seeks to provide value at a reasonable cost

• Underlying investments include cost-effi cient FlexShares® ETFs and Northern Funds within the structure of a single separately managed account

• The Goal Engineer Series is designed to help you pursue your goals with confi dence and achieve the outcome you seek “On Target, On Time”

FlexShares ETFs and Northern Funds are managed by Northern Trust.

GOAL ENGINEER SERIESPortfolio Holdings as of December 31, 2019

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Asset Allocation%1

Growth Inflation Sensitive Income Cash

FlexShares ETF / Northern Fund TickerExpense

RatioStable Income 2015 2020 2025 2030 2035 2040

GROWTH 31.0% 32.9% 35.9% 41.7% 51.7% 71.7% 76.5%US Equity

FlexShares Quality Dividend Index Fund QDF 0.37% 11.8% 12.5% 13.3% 15.0% 15.4% 14.7% 10.2%FlexShares US Quality Large Cap Index Fund QLC 0.32% 3.8% 4.1% 4.7% 5.7% 9.5% 18.2% 23.7%FlexShares Morningstar US Market Factor Tilt Index Fund TILT 0.25% 1.3% 1.4% 1.6% 2.0% 3.3% 6.2% 8.1%

Developed ex-US EquityFlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund TLTD 0.39% 3.0% 3.2% 3.8% 4.7% 7.6% 14.7% 19.0%FlexShares International Quality Dividend Index Fund IQDF 0.47% 9.9% 10.5% 11.1% 12.5% 12.9% 12.4% 8.5%

Emerging Market EquityFlexShares Morningstar Emerging Markets Factor Tilt Index Fund TLTE 0.59% 1.2% 1.2% 1.4% 1.7% 2.8% 5.5% 7.1%

INFLATION SENSITIVE 15.0% 14.9% 14.8% 14.5% 13.8% 12.4% 12.1%Global Natural Resources

FlexShares Morningstar Global Upstream Natural Resources Index Fund GUNR 0.46% 2.7% 2.8% 3.1% 3.6% 4.5% 6.3% 6.6%

Global Real EstateFlexShares Global Quality Real Estate Index Fund GQRE 0.45% 0.9% 1.0% 1.1% 1.2% 1.5% 2.1% 2.2%

Global InfrastructureFlexShares STOXX Global Infrastructure Index Fund NFRA 0.47% 0.9% 1.0% 1.1% 1.3% 1.6% 2.2% 2.3%

Treasury Inflation-Protected SecuritiesFlexShares iBoxx 3-Year Target Duration TIPS Index Fund TDTT 0.18% 10.5% 10.1% 9.5% 8.3% 6.2% 1.9% 0.8%

INCOME 53.5% 51.7% 48.8% 43.4% 34.0% 15.4% 11.0%US Investment Grade Fixed Income

Northern Fixed Income Fund NOFIX 0.45% 50.5% 48.6% 45.5% 39.5% 29.2% 8.7% 3.7%

US High Yield Fixed IncomeFlexShares High Yield Value-Scored Bond Index Fund HYGV 0.37% 3.0% 3.1% 3.4% 3.9% 4.9% 6.8% 7.2%

CASH 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%Money Market2 0.35% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5% 0.5%

Asset-weighted expense ratio3 0.40% 0.40% 0.40% 0.40% 0.40% 0.39% 0.39%

The portfolio holdings, are for illustrative purposes only, subject to change and can vary for individual accounts. Please see important disclosureson page 23 and the back cover. Please contact your Financial Advisor to discuss Northern Trust Investments, Inc. strategies and investment solutions.

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exceptional

service.

ExpertiseResolving

complex

challenges with

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capabilities.

IntegrityActing with the

highest ethics,

utmost honesty

and unfailing

reliability.

FORTUNE MAGAZINE1

World’smost admiredcompanies®

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ABOUT NORTHERN TRUST

Data as of 9/30/19. 1 For additional information on this award, please see page 23.

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IMPORTANT INFORMATION

Page 21:The portfolio weights and statistics shown are based on NTI model portfolios and are not calculated or derived from any Unifi ed Managed Account (UMA) or Model Delivery Platform (MDP). Under Model Delivery Platform (MDP) arrangements, NTI only provides a model to the Sponsor Firm for Unifi ed Managed Accounts (UMAs) and/or Separately Managed Accounts (SMAs), and does not have trading discretion over these accounts. As a result, MDP accounts may contain diff erent investments based on parameters that govern the use of multiple managers and other restrictions. There may also be performance dispersion between accounts as a result of NTI’s lack of trading discretion over the MDP models.

The information in this report has been obtained from sources believed to be reliable, but its accuracy and completeness are not guaranteed. Flex-Shares® ETFs and Northern Funds are sub-advised by Northern Trust Investments, Inc. For more information on the investment objectives, principle risks, and fees associated with these Funds, please see each Fund’s prospectus and statement of additional information (“SAI”), which are available on the Advisors’ websites at northernfunds.com and fl exshares.com.

1 Asset Allocation percentages refl ect those of NTI’s model portfolio as of close of business as of the date shown. Current and future weights

may diff er at the discretion of the portfolio manager. Actual client portfolios may vary. There is no assurance that any of the securities discussed herein will remain in a portfolio at the time you receive this report or that securities sold have not been repurchased. It should not be assumed that any of the securities transactions or holdings discussed have been or will be profi table or that the investment recommendations or decisions we make in the future will be profi table or will equal the investment performance of the securities discussed herein.

2 Money Market expense ratio assumes the use of NTI’s money market funds. The client’s fee may vary based on the specifi c money market fund in which the client is invested.

3 Asset-weighted expense ratios are calculated by multiplying each fund’s expense ratio by its portfolio weight and then summing the results.

Each fund’s expense ratio is sourced from the fund provider’s website using the current expense ratios as stated in the most recent prospectus- es as of the date of this report. Expense ratios calculate the cost to an investment company to operate a fund. The ratio is calculated annually

by dividing a fund’s operating expenses by the average dollar value of its assets under management. Operating expenses are taken out of a fund’s assets and lower the return to a fund’s investors. Actual portfolio fees will vary. Fund expense ratios do not refl ect additional transaction, advisory, or management fees and other charges that may be paid for in a separately managed account (SMA), UMA, or MDP. Net investment returns would be reduced by those applicable fees. Clients should refer to their Financial Advisor for more information on such fees.

Page 22:2019 One of the World’s Most Admired CompaniesFortune’s survey partners at Hay Group starts with approximately 1,500 companies: the Fortune 1,000 — the 1,000 largest U.S. companies ranked by revenue; non-U.S. companies in Fortune’s Global 500 database with revenues of $10 billion or more. Hay then selects the highest-revenues companies in each industry, surveying a total of 680 companies from 28 countries. To create the 51 industry lists, Hay polled executives, directors and analysts to rate companies in their own industry on nine criteria, from investment value to social responsibility. A company’s score must rank in the top half of its industry survey to be listed. http://fortune.com/worlds-most-admired-companies (click on `See our methodology and credits’)

NTFIBROGEGOALS 011020

This report is provided for informational purposes only and is not intended to be, and should not be construed as, an off er, solicitation or recommen-dation 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 specifi c legal or tax advice from their own professional legal or tax advisors. References to specifi c 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.

All securities investing and trading activities risk the loss of capital. There is no assurance that any of the securities discussed herein will remain in a port-folio at the time you receive this report or that securities sold have not been repurchased. Each portfolio is subject to substantial risks including market risks, strategy risks, adviser risk and risks with respect to its investment in other structures. There can be no assurance that any portfolio investment objectives will be achieved, or that any investment will achieve profi ts or avoid incurring substantial losses. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. Risk controls and models do not promise any level of performance or guarantee against loss of principal. Any discussion of risk management is intended to describe Northern Trust’s eff orts to monitor and manage risk but does not imply low risk.

Past performance is no guarantee of future results. Performance returns and the principal value of an investment will fl uctuate. Performance returns contained herein are subject to revision by Northern Trust. 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 refl ect 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 ex-penses 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 additional information on fees, please refer to Part 2A of the Form ADV or consult a Northern Trust representative.

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There are risks involved in investing including possible loss of principal. There is no guarantee that the investment objectives of any fund or strategy will be met. Risk controls and models do not promise any level of performance or guarantee against loss of principal. FlexShares™ ETFs and Northern Funds are sub-advised by Northern Trust Investments, Inc. For more information on the investment objectives, principle risks, and fees associated with these Funds, please see each Fund’s prospectus and statement of additional information (“SAI”), which are available on the Advisors’ websites at north-ernfunds.com and fl exshares.com.

Northern Trust Investments, Inc. products including FlexShares ETFs and Northern Funds represent up to 100% of the portfolio holdings. With respect to such funds, NTI and its affi liates provide investment advisory, custodial, administrative, shareholder support and other services and receive fees. Such investments present a confl ict of interest because NTI, an affi liate, or a related person has a fi nancial interest in the transaction. Financial intermediaries and institutional investors that employ Northern Trust for model management, or overlay services may compensate Northern Trust for those services at a fee of up to 0.25%.

Northern Trust Investments, Inc. (NTI) is an investment adviser registered with the Securities Exchange Commission under the Investment Advisers Act of 1940. This company manages a variety of portfolios utilizing stocks, bonds, and exchange-traded funds (ETFs). 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. Northern Trust and its affi liates may have positions in, and may eff ect transactions in, the markets, contracts and related investments diff erent than described in this information. This information is obtained from sources believed to be reliable, and its accuracy and completeness are not guaranteed. 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.

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