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Fixed Income Taxable

U.S. Government

 
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TickerNAV AS OF 09/18/14
NOUGX$9.56 $-0.02 Arrow Down Icon
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Snapshot
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.
Fund Objective
Current Income
Fund Strategy
  • Invest primarily in securities issued or guaranteed by the U.S. government or by its agencies.
  • Select high-quality securities with maturities, under normal circumstances, between one and 10 years, with risk exposure managed in an effort to achieve reasonable returns.
  • Buy and sell securities using a relative value approach that employs models that analyze and compare expected returns and assumed risks.
Investor Profile
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.
Risk/Reward Potential
”Risk/Reward

Fund Literature

 
Important risk information can be found on the Portfolio tab.
CUSIP665162889
YTD Total Return1.13% (as of 09/18/14)
Distribution Rate*0.86% (as of 09/18/14)
30-Day SEC Yield w/ waivers*0.76% (as of 08/31/14)
30-Day SEC Yield w/o waivers*0.48% (as of 08/31/14)
Inception Date04/01/94
Total Net Assets$31,563,516 (as of 08/31/14)
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 08/31/14
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
U.S. Government0.70%0.20%1.83%1.77%0.83%2.29%3.14%4.48%
Barclays Intermediate
U.S. Government Index
0.61%0.23%1.91%2.23%1.10%2.68%3.72%5.11%
Morningstar Cat. Avg.
Intermediate Government
0.72%0.50%3.65%4.14%1.56%3.31%3.89%N/A

Total Returns

Total Returns for Quarter Ending 06/30/14
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
U.S. Government-0.04%1.15%1.59%1.11%1.60%2.50%3.34%4.50%
Barclays Intermediate
U.S. Government Index
-0.13%0.91%1.55%1.53%1.96%2.83%3.91%5.13%
Morningstar Cat. Avg.
Intermediate Government
0.12%1.74%3.26%3.06%2.37%3.62%4.09%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 0.40%. 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
U.S. Government0.72%0.44%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2015.

Calendar Year Returns

 
       2013      2012      2011      2010      2009
U.S. Government-3.31%2.75%5.77%4.50%0.06%
Barclays Intermediate U.S. Government Index-1.25%1.73%6.08%4.98%-0.32%
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.
Important risk information can be found on the Portfolio tab.
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Portfolio Composition
 
Maturity DistributionFund
0-1yr4.9%
1yr-2yrs5.3%
2yrs-3yrs23.1%
3yrs-5yrs42.4%
5yrs-7yrs16.8%
7yrs-10yrs7.5%
TOTAL100.0%
As of 07/31/14
Quality DistributionFundBenchmark
US Tsy (incl GNMA MBS)87.2%90.5%
US Agcy (incl FN/FH MBS)20.5%9.5%
Committed Cash-7.7%0.0%
TOTAL100.0%100.0%
Sector WeightingsFundBenchmark
Treasury70.7%90.5%
Mortgage-Backed21.7%0.0%
Commercial MBS15.3%0.0%
Agency0.0%9.5%
Committed Cash-7.7%0.0%
TOTAL100.0%100.0%
DateHoldings File
As of 06/30/14Insert Icon
As of 03/31/14Insert Icon

Fund Characteristics

Number of Holdings42
Average Duration3.6 YRS
Average Maturity4.2 YRS
Weighted Average Coupon1.85%
Yield to Maturity1.67%
Income**$0.0060
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.0199
Capital Gain Income Last QuarterN/A
BenchmarkBarclays Intermediate U.S. Government Index
Morningstar CategoryIntermediate 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.
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.
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 Intermediate U.S. Government Index is an unmanaged index of debt securities including all public obligations of the U.S. Treasury and all publicly issued debt of U.S. government agencies with maturities of up to 10 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.
†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 July 24 with a record date of July 23. The amount shown represents dividends paid for net investment income and excludes distributions from capital gain income.
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Michael R. Chico, CFA<sup>&reg;</sup>

Michael R. Chico, CFA®

Portfolio Manager

Northern Short-Intermediate U.S. Government Fund (NSIUX)
Northern U.S. Government Fund  (NOUGX)
Northern U.S. Treasury Index Fund (BTIAX)

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.

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Brian W. Hart

Brian W. Hart

Portfolio Manager

Northern Short-Intermediate U.S. Government Fund (NSIUX)
Northern U.S. Government Fund (NOUGX)

With Northern Trust Since 2009
Began Career in 2009

Brian W. Hart, Officer of Northern Trust, is a member of the active long duration strategy team. Currently, he co-manages the Northern Short-Intermediate U.S. Government Fund and Northern U.S. Government Fund.

Prior to joining Northern Trust in January 2011, Mr. Hart was a member of Northern Trust’s Global Opportunities Leadership Development (GOLD) program where he completed rotations in Wealth Advisory, Risk Management, Equity Research and Fixed Income Portfolio Management.

Mr. Hart received a B.S. in finance from Miami University.

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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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