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|You may find this Fund ideal, if you are a conservative investor who prefers the income and quality assurance offered by government securities. It is best suited for investors with relatively low-risk profiles and can provide a solid-core holding for income-oriented investors of all ages. Our approach is to select high-quality securities with maturities between one and 10 years, issued or guaranteed by the U.S. Government, as we manage risk exposure to achieve reasonable returns. We believe investing in a broad range of U.S. Government securities with intermediate-term maturities can provide greater stability of principal than is generally available from longer-term, higher-yielding bonds. The principal value and investment return of the Fund are neither guaranteed or insured by the U.S. Government.
|If you're a conservative investor who prefers the income and quality assurance offered by government securities, you may find this Fund attractive. It is best suited for investors with relatively low-risk profiles and can provide a solid-core holding for income-oriented investors of all ages.|
|YTD Total Return||2.50% (as of 09/19/14)|
|Distribution Rate*||1.42% (as of 09/19/14)|
|30-Day SEC Yield w/ waivers*||1.16%
|30-Day SEC Yield w/o waivers*||1.06%
|Total Net Assets||$112,488,088
|Tax-Equivalent Distribution Rate*||N/A|
|Tax-Equivalent 30-Day SEC Yield*||N/A|
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|U.S. Treasury Index||1.04%||0.70%||3.48%||3.36%||1.59%||3.28%||4.14%||5.50%|
|Barclays U.S. Treasury Index||1.05%||0.75%||3.63%||3.57%||1.81%||3.52%||4.31%||5.69%|
|Morningstar Cat. Avg.|
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|U.S. Treasury Index||-0.17%||1.31%||2.58%||1.81%||2.83%||3.38%||4.36%||5.50%|
|Barclays U.S. Treasury Index||-0.14%||1.35%||2.72%||2.04%||3.06%||3.60%||4.53%||5.69%|
|Morningstar Cat. Avg.|
|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 0.15%. 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.|
|Gross Expense Ratio||Net Expense Ratio‡|
|U.S. Treasury Index||0.25%||0.15%|
|‡Includes contractual expense reimbursements that, if not extended, will end on July 31, 2015.|
|U.S. Treasury Index||-2.90%||1.71%||9.60%||5.57%||-3.58%|
|Barclays U.S. Treasury Index||-2.75%||1.99%||9.81%||5.87%||-3.57%|
|Morningstar Category Avg. Intermediate Government||-2.72%||2.80%||6.70%||5.66%||4.74%|
|Performance quoted represents past performance and does not guarantee future results.|
|US Tsy (incl GNMA MBS)||98.4%||100.0%|
|Number of Holdings||175|
|Average Duration†||5.1 YRS|
|Average Maturity||6.3 YRS|
|Weighted Average Coupon||1.84%|
|Yield to Maturity||1.46%|
|Dividend Income Last Quarter||$0.0704|
|Capital Gain Income Last Quarter||N/A|
|Benchmark||Barclays U.S. Treasury Index|
|Morningstar Category||Intermediate Government|
|All data is as of date indicated and subject to change.|
|Bond Risk: Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates.|
|Index Fund Risk: The performance of the Fund is expected to be lower than that of the Index because of Fund fees and expenses. It is important to remember that there are risks associated with index investing, including the potential risk of market decline, as well as the risks associated with investing in specific companies.|
|U.S. Government Guarantee: U.S. government guarantees apply only to the underlying securities of a Fund’s portfolio and not the Fund’s shares.
|Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of one to 30 years. It is not possible to invest directly in an index.|
|Quality Distribution: Credit quality ratings are based on converting the available Moody's, Standard & Poor's, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor's nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor's nomenclature, range from A-1 (obligor's capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor's short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody's short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support or demonstrated broad-based access to the market for refinancing). Committed Cash includes any traded cash (forward settling trades), the sweep vehicle and commercial paper. The ratings represent the rating agencies' opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.|
|Distribution Calculations: All distribution calculations (Maturity Distribution, Sector Weightings and Quality Distribution) are measured on a trade date basis and are adjusted for uninvested cash from the market value used to compute the percentage calculations.|
|Characteristics: Benchmark and Fund analytics have been calculated using a third party vended model. All material has been obtained from sources believed to be reliable, but the accuracy, completeness and interpretation cannot be guaranteed. Information contained herein is current as of the date appearing in this material only and is subject to change without notice. Certain benchmark calculations may not match the published benchmark characteristics.|
With Northern Trust Since 2005
Began Career in 1995
Michael R. Chico, Vice President of Northern Trust, is a member of the active long duration strategy team and responsible for quantitatively managing and trading fixed income accounts for Northern Trust clients. He currently co-manages the Northern Short-Intermediate U.S. Government Fund, Northern U.S. Government Fund and Northern U.S. Treasury Index Fund.
Prior to joining Northern Trust in 2005, Mr. Chico was Vice President of MBS Trading at JP Morgan Securities, Inc, formerly Banc One Capital Markets, Inc.
Mr. Chico received a B.A. in economics from the University of Pennsylvania and an MBA in finance and economics from the University of Chicago Graduate School of Business. He is an active CFA® charterholder and a member of the CFA Society Chicago.
With Northern Trust Since 2007
Began Career in 2005
Brandon P. Ferguson, Second Vice President of Northern Trust, currently co-manages the Northern Bond Index Fund and Northern U.S. Treasury Index Fund.
Mr. Ferguson joined Northern Trust in November 2007 as an Investment Associate in the Fixed Income Group, was promoted to Associate Fixed Income Portfolio Manager in July 2009, and for the past two years has managed various fixed-income accounts for Northern Trust clients. From 2006 to 2007, Mr. Ferguson was a commercial credit analyst at First Midwest Bank. Prior to this, he served as a credit manager and mortgage salesman for Wells Fargo Financial.
Mr. Ferguson received a B.A. in business administration and psychology from Illinois Wesleyan University. He is a member of the CFA Institute and the CFA Society Chicago.
Not FDIC insured | May lose value | No bank guarantee
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