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Fixed Income Municipal

High Yield Municipal

 
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TickerNAV AS OF 12/17/18
NHYMX$8.49 $0.00 Same Icon
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  • Snapshot
  • Performance
  • Portfolio
  • Management
  • Fund Documents
Snapshot
If you are an aggressive investor seeking a high level of current income that is largely free from federal income tax, you may find this Fund provides an attractive complement to a well-diversified portfolio. The Fund is best suited for long-term higher income investors willing to assume the additional risks associated with investing in high yield securities including above-average share price fluctuations. Income from the Fund may be subject to federal alternative minimum tax (AMT), state and local taxes. The Fund invests in municipalities that issue medium and lower-quality debt. Lower-quality debt or high yield securities are commonly know as "non-investment grade debt" or "junk bonds." While offering higher current yields, these securities generally are considered speculative and are subject to greater risks than higher-rated bonds.
Fund Objective
High Current Tax-Exempt Income
Fund Strategy
  • Concentrate primarily on municipalities that issue medium (rated A and BBB) and lower-quality debt (rated BBB and below). Lower-quality debt or high-yield securities are also commonly referred to as "non-investment grade" or "junk bonds."
  • Manage to a benchmark index of 65% investment grade and 35% non-investment grade bonds.
  • Select investments on the basis of their relative value with a focus on total return.
Investor Profile
If you are an aggressive investor seeking a high level of current income that is largely free from federal income tax, you may find this Fund provides an attractive complement to a well-diversified portfolio. The Fund is best suited for long-term higher income investors willing to assume the additional risks associated with investing in high yield securities including above-average share price fluctuations. Income from the Fund may be subject to federal alternative minimum tax (AMT), state and local taxes.
Risk/Reward Potential
”Risk/Reward
Important risk information can be found on the Portfolio tab.

 

CUSIP665162681
YTD Total Return-0.21% (as of 12/17/18)
Distribution Rate*4.71% (as of 12/17/18)
30-Day SEC Yield w/ Waivers*3.83% (as of 11/30/18)
30-Day SEC Yield w/o Waivers*3.60% (as of 11/30/18)
Inception Date12/31/98
Total Net Assets$422,495,915 (as of 11/30/18)
Tax-Equivalent Distribution Rate*7.24% (as of 12/17/18)
Tax-Equivalent 30-Day SEC Yield*6.47% (as of 11/30/18)

Total Returns

Total Returns for Month Ending 11/30/18
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
High Yield Municipal0.60%-1.03%-0.65%0.37%2.42%4.50%5.96%3.70%
Bloomberg Barclays Municipal Bond
65-35 Investment Grade/High
Yield Index
0.96%-0.44%1.40%2.54%3.32%4.45%6.02%4.84%
Morningstar Cat. Avg.
High Yield Muni
0.42%-1.14%1.27%2.39%3.44%5.44%6.87%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 45.3% for Arizona, 54.1% for California and 40.8% for national municipal funds.

Total Returns

Total Returns for Quarter Ending 09/30/18
 Annualized
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Incept.
High Yield Municipal-0.58%-0.10%-0.20%1.24%2.94%4.69%4.68%3.75%
Bloomberg Barclays Municipal Bond
65-35 Investment Grade/High
Yield Index
-0.56%0.17%1.27%2.42%3.65%4.53%5.42%4.88%
Morningstar Cat. Avg.
High Yield Muni
-0.50%0.30%1.90%3.05%4.13%5.73%5.55%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 0.60%. The "Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the excepted expenses, including but not limited to acquired fund fees and expenses, that are not reimbursed. This contractual limitation may not be terminated before July 31, 2019 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*
High Yield Municipal0.83%0.60%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2019. The Fund also includes voluntary expense reimbursements that may change or end at any time.

Calendar Year Returns

 
       2017      2016      2015      2014      2013
High Yield Municipal6.90%-0.04%4.50%12.42%-4.45%
Bloomberg Barclays Municipal Bond 65-35 Investment Grade/High Yield Index6.92%1.21%2.80%10.72%-3.58%
Morningstar Category Avg. High Yield Muni7.38%0.90%4.09%13.86%-5.99%
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 - 1 Year3.1%
2 - 5 Years12.4%
6 - 10 Years0.5%
11 - 20 Years21.9%
21 - 30 Years52.7%
31+ Years9.4%
As of 10/31/18
Quality DistributionFundBenchmark
AAA0.0%7.8%
AA11.7%33.4%
A24.1%16.8%
BBB39.5%6.0%
BB7.6%9.9%
B2.0%6.0%
CCC0.0%1.8%
CC to D0.0%1.2%
Not Rated12.1%17.1%
Committed Cash3.1%0.0%
Sector WeightingsFundBenchmark
Transportation20.7%13.7%
Hospital19.1%9.6%
Other13.3%26.9%
Higher Education12.0%5.6%
Pre-Refunded11.4%0.0%
IDR's10.1%4.2%
Housing4.4%2.2%
Water & Sewer3.6%7.1%
Committed Cash3.0%0.0%
Power2.4%8.0%
State & Local GO0.0%21.9%
Resource Recovery0.0%0.8%
DateHoldings File
As of 09/30/18Insert Icon
As of 06/30/18Insert Icon

Fund Characteristics

Number of Holdings135
Portfolio Turnover9.69% (as of 03/31/18)
Average Duration5.0 YRS
Average Maturity19.3 YRS
Weighted Average Coupon5.31%
Income**$0.029975
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.0901
Capital Gain Income Last QuarterN/A
BenchmarkBloomberg Barclays Municipal Bond 65-35 Investment Grade/High Yield Index
Morningstar CategoryHigh Yield Muni
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.
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.
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.
Bloomberg Barclays Municipal Bond 65-35 Investment Grade/High Yield Index is an unmanaged index of investment and non-investment-grade bonds, with a 65% weighting in the Bloomberg Barclays U.S. Municipal Index and a 35% weighting to the Bloomberg Barclays Municipal High Yield Index. 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 D (in default). 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.
†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 24 with a record date of October 23. The amount shown represents dividends paid for net investment income and excludes distributions from capital gain income.
Adam M. Shane, CFA

Adam M. Shane, CFA

Portfolio Manager

Northern High Yield Municipal Fund (NHYMX)
Northern California Intermediate Tax-Exempt Fund (NCITX)
Northern California Tax-Exempt Fund (NCATX)

With Northern Trust Since 2010
Began Career in 2003

Adam M. Shane, CFA, is a Senior Vice President for Northern Trust. Mr. Shane is Director of High Yield Municipal Fixed Income and co-manages the Northern High Yield Municipal Fund, Northern California Intermediate Tax-Exempt Fund and Northern California Tax-Exempt Fund.

Prior to his current role, Mr. Shane was Director of Fixed Income Research. He led a team of corporate, financial, municipal, and sovereign analysts in Chicago, London, and Bangalore, providing fundamental credit research in support of Northern Trust's fixed income capabilities.

Prior to joining Northern Trust in 2010, Mr. Shane was a senior research analyst at Nuveen Investments.

Mr. Shane has a B.A. in history from Williams College and an MBA, with concentrations in accounting and finance, from the University of Chicago, Graduate School of Business. He is an active CFA® charterholder, a member of the CFA Society Chicago, the CFA Institute, the Chicago Municipal Analysts Society, and the National Federation of Municipal Analysts.

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Stephanie L. Woeppel

Stephanie L. Woeppel

Portfolio Manager

Northern High Yield Municipal Fund (NHYMX)

With Northern Trust Since 2012
Began Career in 2005

Stephanie L. Woeppel, Vice President for Northern Trust, Director of Municipal Credit Research, and a Senior Research Analyst. Ms. Woeppel leads a team providing fundamental municipal credit research in support of tax-exempt Fixed Income products and co-manages the Northern High Yield Municipal Fund.

Prior to joining Northern Trust in August 2012, Ms. Woeppel gained extensive experience in municipals, including bond insurer CIFG, Moody's, and The Hartford Investment Management Company.

Ms. Woeppel has a B.A. in english and history from the University of Nebraska and a Master of Public Administration with concentration in finance, from New York University - Wagner School of Public Service. She is a member of the Chicago Municipal Analysts Society, National Federation of Municipal Analysts and Women in Public Finance.

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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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