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|The Ultra-Short Fixed Income Fund seeks to generate higher yields than money market funds with less volatility than short duration bond funds. It is intended for investors with an investment horizon of at least one year and strives to maintain a 6-18 month average maturity, under normal circumstances, with a maximum security maturity of three years.
This Fund is not a money market fund, which maintains a $1.00 NAV, and the Fund's share price will fluctuate with its returns. An investment in the Fund can result in the loss of principal.
|If you're seeking an investment that may generate higher yields than money market funds with less volatility than short duration bond funds, this Fund may be appropriate for you. The Fund is intended for investors with an investment horizon of at least one year who are seeking to move a portion of their money market fund assets.
The Fund is not a money market fund, which maintains a $1.00 NAV, and the Fund's share price will fluctuate with its returns.
|Overall Morningstar RatingTM|
Among 145 ultrashort bond funds derived from a weighted average of the fund's 3- and 5-year risk-adjusted returns as of 12/31/18.
Ultra-Short Fixed Income received 3 stars for the 3-year rating among 145 ultra short bond funds and 4 stars for the 5-year rating among 122 funds. The 10-year Morningstar Rating is not available.
The Morningstar RatingTM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance is no guarantee of future results.
©2019 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||0.26% (as of 01/23/19)|
|Distribution Rate*||1.91% (as of 01/23/19)|
|30-Day SEC Yield w/ Waivers*||2.91%
|30-Day SEC Yield w/o Waivers*||2.90%
|Total Net Assets||$2,289,734,276
|Ultra-Short Fixed Income||0.23%||0.32%||1.54%||1.54%||1.53%||1.13%||N/A||1.33%|
|ICE BofA Merrill Lynch 1-Year|
U.S. Treasury Note Index*
|Morningstar Cat. Avg.|
|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 0.25%. 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.
*Effective October 2017, ICE data services acquired BofA indices.
|Gross Expense Ratio||Net Expense Ratio‡|
|Ultra-Short Fixed Income||0.26%||0.25%|
|‡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.|
|Ultra-Short Fixed Income||1.54%||1.52%||1.52%||0.51%||0.55%|
|ICE BofA Merrill Lynch 1-Year U.S. Treasury Note Index*||1.86%||0.57%||0.76%||0.15%||0.18%|
|Morningstar Category Avg. Ultrashort Bond||1.61%||1.44%||1.41%||0.17%||0.34%|
|Performance quoted represents past performance and does not guarantee future results.
*Effective October 2017, ICE data services acquired BofA indices.
|2 - 15 Days||4.3%|
|16 - 30 Days||7.5%|
|31 - 60 Days||14.7%|
|61 - 97 Days||10.5%|
|98 - 180 Days||3.3%|
|181 - 270 Days||4.6%|
|271 Days - 1 Year||14.7%|
|1 - 2 Years||26.4%|
|2 - 3 Years||10.6%|
|Fixed Rate Note/Bond||62.1%|
|Variable Rate Note/Bond||34.7%|
|Number of Holdings||377|
|Portfolio Turnover||58.41% (as of 03/31/18)|
|Average Duration†||0.8 YR|
|Average Maturity||311 DAYS|
|Yield to Maturity||3.24%|
|Dividend Income Last Quarter||$0.0566|
|Capital Gain Income Last Quarter||N/A|
|Benchmark||ICE BofA Merrill Lynch 1-Year U.S. Treasury Note Index*|
|Morningstar Category||Ultrashort 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.|
|ICE BofA Merrill Lynch 1-Year U.S. Treasury Note Index is composed of a single issue: the outstanding Treasury note that matures closest to, but not beyond, one year from each monthly rebalancing date. It is not possible to invest directly in an index.
|Quality Distribution: Credit quality ratings are based on the available Moody's, Standard & Poor's, and/or Fitch ratings. When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. 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). Agency securities are obligations issued or guaranteed by U.S. government agencies and sponsored enterprises. Treasury securities are obligations issued or guaranteed by the U.S. Treasury. 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.|
|*Effective October 2017, ICE data services acquired BofA indices.|
With Northern Trust Since 2009
Began Career in 2004
Morten Olsen, Vice President and Director of the Ultra Short Fixed Income group. The Ultra Short team of portfolio managers handles separately managed accounts for taxable and tax exempt mandates, as well as the two Ultra Short Fixed Income Mutual Funds. Mr. Olsen is co-manager of the Northern Ultra Short Fixed Income Fund.
Mr. Olsen joined Northern Trust in 2009 and spent six years in London as the lead portfolio manager responsible for the institutional EUR, GBP and USD cash funds. Prior to this, he spent five years on the funding desk at Lehman Brothers and latterly Nomura; in both roles he was responsible for the investment of the banks liquidity pool.
Mr. Olsen received his B.S. in Economics and a M.S. in Economics, both from University of Copenhagen.
With Northern Trust Since 2007
Began Career in 2004
Bilal Memon, Vice President of Northern Trust, and a member of the Short Duration Fixed Income Group within the Northern Trust Global Investments business unit. He is a co-manager of the Ultra Short Fixed Income Fund.
Prior to joining Northern Trust in 2007, Mr. Memon was with Ford Motor Company for three years. He joined them as the Associate Director of Pension Asset Management, he became a Fixed Income Portfolio Manager in 2005, and finally became part of the Treasury Staff in 2006.
Mr. Memon received his B.A. in economics from The University of Chicago and his MBA in analytical finance and marketing management from The University of Chicago Graduate School of Business.
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.
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