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|For those investors who want a high current income that is exempt from regular federal income tax and California state personal income tax, you may find this Fund attractive. It is well suited for income-oriented investors in higher tax brackets who are willing to accept some risk of principal in exchange for higher yield potential. Income from the Fund may be subject to federal alternative minimum tax (AMT), state and local taxes. Our experienced investment team concentrates our investments in California-specific, investment-grade municipal instruments which are exempt from federal income tax and California state personal income tax while maintaining an average maturity between 10 and 30 years.
|Current Tax-Exempt Income|
|If you are an investor who wants high current income that is exempt from regular federal income tax and California state personal income tax, you may find this Fund attractive. It is well suited for income-oriented investors in higher tax brackets who are willing to accept some risk of principal in exchange for higher yield potential. Income from the Fund may be subject to federal alternative minimum tax (AMT), state and local taxes.|
|Overall Morningstar RatingTM|
Among 117 municipal California long funds derived from a weighted average of the fund's 3-, 5- and 10-year risk-adjusted returns as of 6/30/16.
California Tax-Exempt received 3 stars for the 3-year rating among 117 municipal California long funds, 3 stars for the 5-year rating among 103 funds and 4 stars for the 10-year rating among 89 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.
©2016 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.
|YTD Total Return||4.45% (as of 07/29/16)|
|Distribution Rate*||2.71% (as of 07/29/16)|
|30-Day SEC Yield w/ Waivers*||1.83%
|30-Day SEC Yield w/o Waivers*||1.69%
|Total Net Assets||$203,558,508
|Tax-Equivalent Distribution Rate*||4.59% (as of 07/29/16)|
|Tax-Equivalent 30-Day SEC Yield*||4.22% (as of 06/30/16)|
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|Barclays California |
Municipal Bond Index
|Morningstar Cat. Avg.|
Muni California Long
|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.
Northern Trust Investments, Inc. has contractually agreed to reimburse a portion of the operating expenses of the Fund (other than certain excepted expenses, i.e., acquired fund fees and expenses; the compensation paid to each Independent Trustee of the Trust; expenses of third party consultants engaged by the Board of Trustees; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; expenses in connection with the negotiation and renewal of the revolving credit facility; and extraordinary expense and interest) to the extent the "Total Annual Fund Operating Expenses" exceed 0.45%. This contractual limitation may not be terminated before July 31, 2016 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‡|
|‡Includes contractual expense reimbursements that, if not extended, will end on July 31, 2016.|
|Barclays California Municipal Bond Index||3.53%||9.97%||-1.77%||8.14%||12.29%|
|Morningstar Category Avg. Muni California Long||3.72%||12.07%||-3.71%||10.42%||11.74%|
|Performance quoted represents past performance and does not guarantee future results.|
|0 - 1 Year||5.4%|
|2 - 5 Years||27.3%|
|6 - 10 Years||4.9%|
|11 - 20 Years||45.1%|
|21 - 30 Years||17.3%|
|Number of Holdings||99|
|Average Duration†||5.3 YRS|
|Average Maturity||11.7 YRS|
|Weighted Average Coupon||4.19%|
|Dividend Income Last Quarter||$0.0844|
|Capital Gain Income Last Quarter||N/A|
|Benchmark||Barclays California Municipal Bond Index|
|Morningstar Category||Muni California Long|
|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.|
|Non-Diversified Risk: The Fund invests in a smaller number of securities than the average mutual fund. The change in value of a single holding may have a more pronounced effect on the Fund’s net asset value and performance than for other funds.|
|Tax-Free/AMT Risk: Tax-exempt funds’ income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax.|
|Regional Investment Risk: The geographical concentration of portfolio holdings in this Fund may involve increased risk.|
|Barclays California Municipal Bond Index is an unmanaged index of investment grade (Baa3 or better) tax-exempt California bonds with a remaining maturity of at least one year. 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.|
With Northern Trust Since 1985
Began Career in 1985
Eric V. Boeckmann, Senior Vice President of Northern Trust, manages the Northern Arizona Tax-Exempt Fund, Northern California Intermediate Tax-Exempt Fund and Northern California Tax-Exempt Fund.
In addition to managing mutual funds, Mr. Boeckmann is a Portfolio Manager in the Municipal Fixed Income Management Group, where he is responsible for a number of separately managed municipal bond portfolios.
Mr. Boeckmann received a B.S. in finance from the University of Illinois.
Not FDIC insured | May lose value | No bank guarantee
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.
©2016 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.