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Fund Commentary

 
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Government Assets Portfolio

as of 5/31/17

Fund Commentary

As anticipated the Federal Open Market Committee (FOMC) left its benchmark rate unchanged at their May meeting. The Federal Reserve (Fed) dismissed the weaker economic data as transitory, but acknowledged that inflation was near their 2% objective and the labor market continued to strengthen. The markets continue to expect a June hike. While initially the markets had anticipated that the Fed would begin normalizing their balance sheet in 2018, market participants now believe this could very well be a 2017 story as the Fed continued to prepare the markets for the likelihood that this would begin soon. In fact, it was mentioned that more discussion would occur at the upcoming June meeting. We continue to position ourselves conservatively with a neutral duration strategy. Liquidity and principal preservation remain our primary objectives.

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An investment in the Money Market Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other governmental agency. Although the Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Funds.

Please carefully read the summary prospectus or prospectus and consider the investment objectives, risks, charges and expenses of Northern Institutional Funds before investing. Call 800-637-1380 to obtain a summary prospectus or prospectus, which contains this and other information about the Funds.

©2017 Northern Institutional Funds | Northern Institutional Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.