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Fixed Income Taxable

Bond Index

 
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TickerNAV AS OF 12/18/14
NOBOX$10.72 $-0.02 Arrow Down Icon
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Snapshot
This Fund is a good choice for those long-term, income-oriented investors who are looking to diversify their investments by gaining a broad exposure to the U.S. bond market. It offers a diversified portfolio of bond securities approximately the Barclays U.S. Aggregate Bond Index. Investors will gain a broad exposure to the U.S. Treasury, government agency, investment grade corporate bond, mortgage - and asset-backed sectors of the fixed income markets.
Fund Objective
Seeks to Replicate Index
Fund Strategy
  • Passively managed in an effort to replicate the performance and composition of the Barclays U.S. Aggregate Bond Index.
  • Gain broad exposure to the U.S. Treasury, government agency, investment-grade corporate bond, mortgage- and asset-backed sectors of the fixed income markets.
  • Provide investors with a way to gain broad exposure to U.S. bond market.
Investor Profile
If you are a long-term, income-oriented investor who is looking to diversify your investments by gaining broad exposure to the U.S. bond market, then this Fund may be right for you. It offers a diversified portfolio of bond securities approximating the Lehman Brothers U.S. Aggregate Index.
Risk/Reward Potential
”Risk/Reward
Institutional investor award winners are chosen by the editorial staff of Institutional Investor magazine based on their market intelligence, performance data and additional information received from the industry following a public call for nominations. Manager winners are also selected by the editors of the magazine based on the results of a survey conducted of U.S. institutional investors. Award noted above is not indicative of future performance.

Fund Literature

 
 
Important risk information can be found on the Portfolio tab.
CUSIP665162533
YTD Total Return5.64% (as of 12/18/14)
Distribution Rate*2.65% (as of 12/18/14)
30-Day SEC Yield w/ Waivers*2.00% (as of 11/30/14)
30-Day SEC Yield w/o Waivers*1.85% (as of 11/30/14)
Inception Date02/27/07
Total Net Assets$2,646,555,919 (as of 11/30/14)
Tax-Equivalent Distribution Rate*N/A
Tax-Equivalent 30-Day SEC Yield*N/A
*Distribution rate and tax-equivalent distribution rate represent the annualization of the Fund's distributions for the prior month ending on the date shown, including capital gain distributions. The 30-day SEC yield and tax-equivalent 30-day SEC yield represent the annualization of the Fund's net investment income, excluding capital gain income. The tax-equivalent distribution rate and tax-equivalent 30-day SEC yield are based on an assumed tax rate of 47.9% for Arizona, 55.7% for California and 43.4% for national municipal funds.

Total Returns

Total Returns for Month Ending 11/30/14
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Bond Index0.68%0.93%5.82%5.15%2.84%3.86%N/A4.74%
Barclays U.S. Aggregate
Bond Index
0.71%1.01%5.87%5.27%3.00%4.10%N/A4.97%
Morningstar Category Avg.
Intermediate-Term Bond
0.51%0.51%5.34%4.87%3.84%4.64%N/AN/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.
Bond Index-0.71%0.21%4.10%3.91%2.29%3.86%N/A4.62%
Barclays U.S. Aggregate
Bond Index
-0.68%0.17%4.10%3.96%2.43%4.12%N/A4.85%
Morningstar Cat. Avg.
Intermediate-Term Bond
-0.76%-0.09%4.01%4.34%3.41%4.80%N/AN/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 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.

Annual Expense Ratios

 
 Gross Expense RatioNet Expense Ratio
Bond Index0.18%0.16%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2015.

Calendar Year Returns

 
       2013      2012      2011      2010      2009
Bond Index-2.29%4.06%7.63%6.21%4.60%
Barclays U.S. Aggregate Bond Index-2.02%4.21%7.84%6.54%5.93%
Morningstar Category Avg. Intermediate-Term Bond-1.42%7.01%5.86%7.72%13.97%
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
   
Maturity DistributionFund
0-1yr1.4%
1yr-2yrs11.3%
2yrs-3yrs11.7%
3yrs-5yrs28.1%
5yrs-7yrs17.9%
7yrs-10yrs15.9%
10yrs-15yrs1.6%
15yrs-20yrs1.8%
20yrs-25yrs5.1%
25yrs-30yrs4.8%
30yrs-35yrs0.2%
35yrs+0.2%
TOTAL100.0%
As of 10/31/14
Quality DistributionFundBenchmark
US Tsy (incl GNMA MBS)43.8%43.6%
US Agcy (incl FN/FH MBS)25.1%25.0%
AAA4.1%4.1%
AA4.1%3.8%
A11.6%11.5%
BBB10.7%12.0%
Committed Cash0.6%0.0%
TOTAL100.0%100.0%
Sector WeightingsFundBenchmark
Treasury36.1%35.5%
Mortgage-Backed28.9%28.9%
Industrial13.3%13.7%
Financial7.3%7.7%
Agency3.4%3.5%
Commercial MBS2.1%2.1%
Utilities1.8%1.8%
Foreign Agencies1.7%1.7%
Sovereign1.4%1.5%
Supranational1.4%1.6%
Municipals0.9%1.0%
Committed Cash0.6%0.0%
Asset-Backed0.5%0.5%
Foreign Local Govt0.5%0.4%
Covered0.1%0.1%
TOTAL100.0%100.0%
DateHoldings File
As of 11/30/14Insert Icon
As of 10/31/14Insert Icon
As of 09/30/14Insert Icon
As of 08/31/14Insert Icon
As of 07/31/14Insert Icon
As of 06/30/14Insert Icon

Fund Characteristics

Number of Holdings3,010
Average Duration5.2 YRS
Average Maturity7.2 YRS
Weighted Average Coupon3.42%
Yield to Maturity2.14%
Income**$0.021838
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.0721
Capital Gain Income Last QuarterN/A
BenchmarkBarclays U.S. Aggregate Bond Index
Morningstar CategoryIntermediate-Term Bond
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.
Mortgage-Backed Securities Risk: Mortgage-backed investments involve risk of loss due to prepayments and, like any bond, due to default. Because of the sensitivity of mortgage-related securities to changes in interest rates, the Fund’s performance may be more volatile than if it did not hold these securities.
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.
Barclays U.S. Aggregate Bond Index is an unmanaged index of prices of U.S. dollar-denominated, fixed rate, taxable, investment-grade fixed income securities with remaining maturities of one year and longer. It is not possible to invest directly in an index.
Quality Distribution: Credit quality ratings are based on the conservative average of Moody's, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. 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). 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.
†Northern tax-exempt fixed income funds' and Northern High Yield Fixed Income Fund's Average Duration is calculated using the modified duration formula. Other Northern fixed income funds show the option-adjusted duration. Duration is a measure of a bond fund's sensitivity to changes in interest rates.
**Per share paid out October 23 with a record date of October 22. The amount shown represents dividends paid for net investment income and excludes distributions from capital gain income.
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Louis D’Arienzo

Louis D’Arienzo

Portfolio Manager

Northern Bond Index Fund (NOBOX)

With Northern Trust Since 2003
Began Career in 1981

Louis D'Arienzo, Vice President of Northern Trust, is a portfolio manager for the Fixed Income Index group and responsible for managing structured fixed income accounts. He currently co-manages the Northern Bond Index Fund.

Prior to joining Northern Trust in 2003, Mr. D'Arienzo was a senior fixed income portfolio manager for Deutsche Asset Management in New York. He joined Deutsche in 1981 (prior to the Deutsche Bank merger), where his investment experience included trading in structured portfolios and quantitative analysis of fixed income and derivative securities.

Mr. D'Arienzo received a B.S. in finance from the Stern School of Business at New York University.

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Brandon P. Ferguson

Brandon P. Ferguson

Portfolio Manager

Northern Bond Index Fund (NOBOX)
Northern U.S. Treasury Index Fund (BTIAX)

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.

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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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