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Income Equity

 
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TickerNAV AS OF 05/29/15
NOIEX$12.70 $-0.07 Arrow Down 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

Fund Literature

 
Important risk information can be found on the Portfolio tab.
CUSIP665162202
YTD Total Return1.92% (as of 05/29/15)
30-Day SEC Yield w/ Waivers2.06% (as of 04/30/15)
30-Day SEC Yield w/o
Waivers
1.87% (as of 04/30/15)
Inception Date04/01/94
Total Net Assets$321,744,459 (as of 04/30/15)

Total Returns

Total Returns for Month Ending 04/30/15
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Income Equity-1.14%1.77%0.68%7.04%12.53%11.12%8.45%8.70%
S&P 500 Index0.96%5.07%1.92%12.98%16.73%14.33%8.32%9.69%
Morningstar Cat. Avg.
Large Value
1.08%5.00%1.24%8.36%15.23%12.18%7.06%N/A

Total Returns

Total Returns for Quarter Ending 03/31/15
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Income Equity-1.94%1.84%1.84%9.40%12.69%11.79%8.29%8.80%
S&P 500 Index-1.58%0.95%0.95%12.73%16.11%14.47%8.01%9.67%
Morningstar Cat. Avg.
Large Value
-1.39%0.18%0.18%7.86%14.42%12.25%6.72%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

 
       2014      2013      2012      2011      2010
Income Equity9.28%24.85%10.61%2.18%15.99%
S&P 500 Index13.69%32.39%16.00%2.11%15.06%
Morningstar Category Avg. Large Value10.21%31.21%14.57%-0.75%13.66%
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
Wells Fargo & Co4.8%
Home Depot Inc4.2%
Pfizer Inc4.2%
Altria Group Inc3.9%
Boeing Co3.9%
Accenture PLC3.5%
Texas Instruments Inc3.3%
United Parcel Service Inc 3.0%
Gilead Sciences Inc3.0%
Merck & Co Inc2.7%
% of Portfolio36.5%
As of 04/30/15
Sector WeightingsFundBenchmark
Information Technology20.2%20.0%
Financials20.0%16.1%
Consumer Discretionary13.1%12.5%
Health Care12.3%14.6%
Industrials11.4%10.3%
Consumer Staples8.6%9.5%
Energy6.1%8.5%
Utilities5.5%3.0%
Telecommunication Services1.7%2.3%
Materials1.1%3.2%
TOTAL100.0%100.0%
As of 04/30/15
Risk Characteristics*Income EquityS&P 500 Index
Beta0.871.00
Up Market Capture79.45100.00
Down Market Capture93.74100.00
Information Ratio–1.510.00
*Above risk characteristics are based on a 3-year time period
  
DateHoldings File
As of 03/31/15Insert Icon
As of 12/31/14Icon

Fund Characteristics

  
Number of Holdings62
Portfolio Turnover109.84% (as of 03/31/15)
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.0418
Capital Gain Income Last QuarterN/A
Weighted Average Market Cap ($Mil)$91,030
BenchmarkS&P 500 Index
Morningstar CategoryLarge Value
Trailing 12-Month Price-to-Earnings Ratio
Fund18.54
Benchmark18.89
Price-to-Book Ratio
Fund3.26
Benchmark2.88
Historical 5-Year Earnings Growth
Fund11.96
Benchmark13.16
Asset Allocation 
Stocks96.8%
Cash3.2%
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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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, Senior 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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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, and a member of the CFA Chicago Society and the CFA Institute.

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Not FDIC insured | May lose value | No bank guarantee

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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.

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