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Fund Commentary

 
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U.S. Government Portfolio

as of 5/31/17

Fund Commentary

Global markets were largely range bound last period, with risk assets performing well and low levels of volatility in bond markets. Economic data released last month was modestly disappointing, but the Federal Open Market Committee (FOMC) opted to largely look past this weakness at their May meeting. The Committee continued to discuss their plan for adjustments to the balance sheet reinvestment policy, signaling that any adjustments will be gradual. Money market rates were largely range bound as well last period, with markets pricing in a high likelihood for a 0.25% increase in the Federal Reserve (Fed) funds target range at the June meeting. In acknowledgement of the significant technical pressures in the market for short duration government securities, we’ve selectively added duration to take advantage of steepness in the money market yield curve and remain neutral to our peer group, while maintaining a strong liquidity profile to accommodate any unexpected outflows.

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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.

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