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Financial Intermediary
Learn about asset management solutions designed for Retirement Plan Advisors, TAMPs/Outsourcing Providers, Subadvisory Program Sponsors, RIAs/Financial Advisors and Trust Institutions.
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Learn about asset management solutions including: global index management, active equity and fixed income, target retirement date funds, and manager of manager programs.
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Equity Active

Income Equity

 
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TickerNAV AS OF 11/21/14
NOIEX$16.62 $0.07 Arrow Up Icon
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Snapshot
This Fund may be a good choice for those moderate-risk investors looking for a relatively high level of current income, but don't want to forego the capital appreciation potential of the stock market. Using fundamental research and quantitative analysis, our experienced investment management team buys and sells securities based on such factors as a company's current income, prospects for growth and capital appreciation potential. The Fund will, under normal circumstances, invest at least 80% of its net assets in income-producing equity securities, including dividend-paying common and preferred stocks and convertible securities. The Fund also may invest up to 20% of its net assets in a broad range of non-convertible fixed-income securities without limitation as to maturity.
Fund Objective
Current Income and Capital Appreciation
Fund Strategy
  • Select securities with the potential to generate high current yields, such as dividend-paying common stocks, preferred stocks and convertible securities, as well as selected fixed income securities.
  • Maintain a conservative, broadly diversified portfolio of companies with strong prospects for growth and appreciation potential.
  • Apply a proprietary quality score to screen out low-quality securities, then select stocks from the remaining universe of securities giving exposure to securities ranking at the top in both quality and dividend yield.
Investor Profile

If you are a moderate-risk investor looking for a relatively high level of current income, but don't want to forego the capital appreciation potential of the stock market, you may like this Fund.

Risk/Reward Potential
Risk/Reward Image
Overall Morningstar RatingTM
”Morningstar

Among 342 aggressive allocation funds derived from a weighted average of the fund's 3-, 5- and 10-year risk-adjusted returns as of 10/31/14.

Income Equity received 4 stars for the 3-year rating among 342 aggressive allocation funds, 5 stars for the 5-year rating among 307 funds and 5 stars for the 10-year rating among 207 funds.

Past performance is no guarantee of future results. Ratings reflect fee waivers in effect; in their absence, ratings may have been lower.

Star ratings are based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The overall rating is a weighted average of the 3-, 5-, and 10-year (if applicable) returns. 5 stars = top 10% of funds in an asset category; 4 stars = next 22.5% of funds; 3 stars = next 35%; 2 stars = next 22.5% and 1 star = next 10%. A fund must be in existence three years to be rated. Ratings are subject to change monthly.

©2014 Morningstar, Inc. All Rights Reserved. Morningstar and/or its content providers are the proprietors of this information; do not permit its unauthorized copying or distribution; do not warrant it to be accurate, complete or timely; and are not responsible for damages or losses arising from its use.

Fund Literature

 
Important risk information can be found on the Portfolio tab.
CUSIP665162202
YTD Total Return9.62% (as of 11/21/14)
30-Day SEC Yield w/ Waivers2.32% (as of 10/31/14)
30-Day SEC Yield w/o
Waivers
2.22% (as of 10/31/14)
Inception Date04/01/94
Total Net Assets$364,218,983 (as of 10/31/14)

Total Returns

Total Returns for Month Ending 10/31/14
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Income Equity2.70%4.69%7.64%11.84%14.42%13.63%8.62%8.81%
S&P 500 Index2.44%5.05%10.99%17.27%19.77%16.69%8.20%9.70%
Morningstar Cat. Avg.
Aggressive Allocation
1.51%1.56%5.36%8.78%12.76%11.38%6.53%N/A

Total Returns

Total Returns for Quarter Ending 09/30/14
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Income Equity-1.58%-1.20%4.81%12.42%16.76%12.79%8.23%8.70%
S&P 500 Index-1.40%1.13%8.34%19.73%22.99%15.70%8.11%9.61%
Morningstar Cat. Avg.
Aggressive Allocation
-2.70%-1.85%3.79%10.72%15.62%10.58%6.54%N/A
Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here.

The Advisor has agreed to reimburse certain expenses of the Fund (excluding acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board of Trustees of the Trust; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; extraordinary expenses; and interest, if any) to the extent the "Total Annual Fund Operating Expenses" exceed 1.00%. The contractual limitation may not be terminated before July 31, 2015 without the approval of the Board of Trustees. In the absence of fee waivers, yield, total return, growth since inception and dividends would have been reduced. Total return is based on net change in NAV assuming reinvestment of distributions.

Annual Expense Ratios

 
 Gross Expense RatioNet Expense Ratio
Income Equity1.10%1.00%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2015.

Calendar Year Returns

 
       2013      2012      2011      2010      2009
Income Equity24.85%10.61%2.18%15.99%32.22%
S&P 500 Index32.39%16.00%2.11%15.06%26.46%
Morningstar Category Avg. Aggressive Allocation21.31%13.42%-3.80%13.49%29.37%
Performance quoted represents past performance and does not guarantee future results.
Important risk information can be found on the Portfolio tab.
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Portfolio Composition
   
Top 10 HoldingsFund
Altria Group Inc4.8%
Home Depot Inc4.7%
Wells Fargo & Co4.6%
Pfizer Inc4.5%
JP Morgan Chase & Co3.9%
Merck & Co Inc3.8%
ConocoPhillips3.4%
Boeing Co3.1%
United Parcel Service Inc2.8%
AT&T Inc2.8%
% of Portfolio38.4%
As of 10/31/14
Sector WeightingsFundBenchmark
Financials20.7%16.4%
Information Technology16.4%19.5%
Consumer Staples10.9%9.6%
Industrials10.1%10.4%
Health Care10.0%14.3%
Energy9.4%9.2%
Consumer Discretionary8.5%11.7%
Utilities6.2%3.2%
Telecommunication Services4.2%2.4%
Materials3.6%3.3%
TOTAL100.0%100.0%
As of 10/31/14
Risk Characteristics*Income EquityS&P 500 Index
Beta0.871.00
Up Market Capture79.04100.00
Down Market Capture100.67100.00
Information Ratio–2.060.00
*Above risk characteristics are based on a 3-year time period
  
DateHoldings File
As of 09/30/14Insert Icon
As of 06/30/14Icon

Fund Characteristics

  
Number of Holdings65
Portfolio Turnover14.34% (as of 03/31/14)
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.3155
Capital Gain Income Last QuarterN/A
Weighted Average Market Cap ($Mil)$80,630
BenchmarkS&P 500 Index
Morningstar CategoryAggressive Allocation
Trailing 12-Month Price-to-Earnings Ratio
Fund17.60
Benchmark18.13
Price-to-Book Ratio
Fund2.72
Benchmark2.74
Historical 5-Year Earnings Growth
Fund10.13
Benchmark12.32
Asset Allocation 
Stocks96.5%
Cash3.5%
TOTAL100.0%
Equity Risk: Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
High Yield Risk: Although a high yield fund’s yield may be higher than that of fixed income funds that purchase higher-rated securities, the potentially higher yield is a function of the greater risk that a high yield fund’s share price will decline.
Interest Rate Risk: Increases in prevailing interest rates will cause fixed-income securities, including convertible securities, held by the Fund to decline in value.
S&P 500® Index is an unmanaged index consisting of 500 stocks and is a widely recognized common measure of the performance of the overall U.S. stock market. It is not possible to invest directly in an index.
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Jacob C. Weaver, CFA<sup>&reg;</sup>, CPA

Jacob C. Weaver, CFA®, CPA

Portfolio Manager

Northern Income Equity Fund (NOIEX)

With Northern Trust Since 1998
Began Career in 1998

Jacob C. Weaver, Senior Vice President of Northern Trust, is team leader of the global equity team responsible for the implementation of several quantitative active equity strategies specializing in Tax Advantaged Equity and Quality Dividend Focus strategies. He currently co-manages the Northern Income Equity Fund.

Prior to rejoining the team in 2010, Mr. Weaver was the Head of International Indexing in Northern Trust’s London office, overseeing a team of portfolio managers to various international indexes. Prior to this, he spent six years as a portfolio manager focused on quantitative active strategies including Small Cap Core and Tax Advantaged Equity.

Mr. Weaver received a B.S. in finance from the University of Illinois at Urbana-Champaign and an MBA from the University of Chicago Booth School of Business with concentrations in finance and organizational behavior. He is an active CFA® charterholder, a CPA, a member of the CFA Society Chicago and the CFA Institute.

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John A. Ferguson, CFA<sup>&reg;</sup>

John A. Ferguson, CFA®

Portfolio Manager

Northern Income Equity Fund (NOIEX)

With Northern Trust Since 2009
Began Career in 1995

John A. Ferguson, Vice President of Northern Trust, is a senior portfolio manager on the global equity team responsible for value-added strategies, including Tax Advantaged Equity and Quality Dividend Focus for high net worth and institutional clients. He currently co-manages the Northern Income Equity Fund.

Prior to joining Northern Trust in 2009, Mr. Ferguson was a portfolio manager and client service director with Chicago Equity Partners, an AMG affiliate that specializes in quantitative equity management. He managed institutional, taxable, and socially responsible portfolios, was a sector specialist on the fundamental analyst team, traded on the institutional equity desk, and managed the performance measurement team.

Mr. Ferguson received a B.S. in accounting from Miami University in Oxford, OH. He is an active CFA® charterholder, and a member of the CFA Society Chicago and the CFA Institute.

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Not FDIC insured | May lose value | No bank guarantee

View investment term definitions

Please carefully read the prospectus and summary prospectus and consider the investment objectives, risks, charges and expenses of Northern Funds before investing. Call 800-595-9111 to obtain a prospectus and summary prospectus, which contains this and other information about the funds.

©2014 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.