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Fixed Income Taxable

Fixed Income

 
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TickerNAV AS OF 08/04/15
NOFIX$10.29 $-0.02 Arrow Down Icon
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Snapshot
If you're a conservative, income-oriented investor who wants higher current income than that generally offered by the U.S. Government Fund and you're willing to assume moderately more risk in exchange, you may find this Fund suitable. This Fund can also be an appropriate choice for investors who want to broaden and diversify their fixed income portfolio. Our experienced investment team's approach is to monitor and control the portfolio risk relative to the overall market while maintaining an average maturity within the portfolio between seven and 12 years.

Fund Objective
Current Income
Fund Strategy
  • Invest primarily in investment-grade domestic debt obligations with an average maturity, under normal circumstances, between three and 15 years, but may own, to a limited extent, securities of foreign issuers and non-investment-grade debt.
  • Buy and sell securities using a relative value approach that employs models that analyze and compare expected returns and assumed risks.
  • Emphasize securities and types of securities (such as Treasury, agency, mortgage-related and corporate securities) that we believe have the potential to provide a favorable return.
Investor Profile
If you're a conservative, income-oriented investor who wants higher current income than that generally offered by the U.S. Government Fund and you're willing to assume moderately more risk in exchange, you may find this Fund suitable. This Fund can also be an appropriate choice for investors who want to broaden and diversify their fixed income portfolio.
Risk/Reward Potential
”Risk/Reward
Important risk information can be found on the Portfolio tab.
CUSIP665162806
YTD Total Return0.49% (as of 08/04/15)
Distribution Rate*2.97% (as of 08/04/15)
30-Day SEC Yield w/ Waivers*2.76% (as of 06/30/15)
30-Day SEC Yield w/o Waivers*2.68% (as of 06/30/15)
Inception Date 04/01/94
Total Net Assets$1,858,433,594 (as of 06/30/15)
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, 56.7% for California and 43.4% for national municipal funds.

Total Returns

Total Returns for Quarter Ending 06/30/15
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
Fixed Income-1.31%-1.91%-0.07%1.27%2.73%4.03%4.37%5.37%
Barclays U.S. Aggregate
Bond Index
-1.09%-1.68%-0.10%1.86%1.83%3.35%4.44%5.82%
Morningstar Cat. Avg.
Intermediate-Term Bond
-1.09%-1.50%0.01%1.04%2.28%3.70%4.19%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.

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%. The "Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the excepted expenses that are not reimbursed. 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.

Annual Expense Ratios

 
 Gross Expense RatioNet Expense Ratio
Fixed Income0.49%0.47%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2016.
Important risk information can be found on the Portfolio tab.

Calendar Year Returns

 
       2014      2013      2012      2011      2010
Fixed Income6.19%-1.49%7.16%7.22%6.10%
Barclays U.S. Aggregate Bond Index5.97%-2.02%4.21%7.84%6.54%
Morningstar Category Avg. Intermediate-Term Bond5.18%-1.42%7.01%5.86%7.72%
Performance quoted represents past performance and does not guarantee future results.
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Portfolio Composition
   
Maturity DistributionFund
0-1yr3.3%
1yr-2yrs6.5%
2yrs-3yrs15.9%
3yrs-5yrs18.1%
5yrs-7yrs17.9%
7yrs-10yrs20.9%
10yrs-15yrs0.8%
15yrs-20yrs3.5%
20yrs-25yrs3.3%
25yrs-30yrs6.5%
30yrs-35yrs2.6%
35yrs+0.7%
TOTAL100.0%
As of 06/30/15
Quality DistributionFundBenchmark
US Tsy (incl GNMA MBS)20.2%43.7%
US Agcy (incl FN/FH MBS)23.4%24.3%
AAA12.5%4.3%
AA3.0%3.5%
A6.9%11.5%
BBB20.7%12.7%
BB8.1%0.0%
B4.2%0.0%
CCC0.5%0.0%
Committed Cash0.5%0.0%
TOTAL100.0%100.0%
Sector WeightingsFundBenchmark
Industrial23.6%14.4%
Mortgage-Backed23.6%28.1%
Treasury20.0%36.2%
Financial14.3%7.7%
Commercial MBS12.2%1.9%
Asset-Backed3.2%0.6%
Utilities2.3%1.8%
Committed Cash0.5%0.0%
Foreign Agencies0.3%1.7%
Agency0.0%3.2%
Supranational0.0%1.6%
Sovereign0.0%1.5%
Municipals0.0%0.9%
Foreign Local Govt0.0%0.3%
Covered0.0%0.1%
TOTAL100.0%100.0%
DateHoldings File
As of 06/30/15Insert Icon
As of 03/31/15Insert Icon

Fund Characteristics

Number of Holdings381
Average Duration5.3 YRS
Average Maturity8.6 YRS
Weighted Average Coupon4.11%
Yield to Maturity3.01%
Income**$0.022538
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.0698
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.
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 June 24 with a record date of June 23. The amount shown represents dividends paid for net investment income and excludes distributions from capital gain income.
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Bradley Camden, CFA<sup>&reg;</sup>

Bradley Camden, CFA®

Portfolio Manager

Northern Core Bond Fund (NOCBX)
Northern Fixed Income Fund ( NOFIX)
Northern Short Bond Fund (BSBAX)

With Northern Trust Since 2005
Began Career in 2002

Bradley Camden, Vice President of Northern Trust, is a member of the active long duration strategy team and responsible for research and implementation of several quantitative fixed income strategies. He currently co-manages the Northern Core Bond Fund, Northern Fixed Income Fund and Northern Short Bond Fund.

Prior to joining Northern Trust in 2005, Mr. Camden was a member of Northern Trust’s Global Opportunities Leadership Development (GOLD) program where he completed rotations in Tax Advantage Equity Indexing, Equity Research and Fixed Income.

Mr. Camden holds a B.A. in economics from DePauw University. He is an active CFA® charterholder and a member of the CFA Institute and the CFA Society Chicago.

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Daniel J. Personette, CFA<sup>&reg;</sup>

Daniel J. Personette, CFA®

Portfolio Manager

Northern Core Bond Fund (NOCBX)
Northern Fixed Income Fund (NOFIX)

With Northern Trust Since 1996
Began Career in 1995

Daniel J. Personette, Vice President of Northern Trust, is a member of the fixed income group, responsible for quantitatively managing and trading fixed income accounts for Northern Trust clients. He currently co-manages the Northern Core Bond Fund and Northern Fixed Income Fund.

Prior to joining Northern Trust as an Accounting Auditor in 1996, he served in the shareholder service department at Kemper Mutual Funds.

Mr. Personette received a B.A. in finance from Ball State University and an MBA from the University of Chicago. He is an active CFA® charterholder and a member of 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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