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Fund Commentary

 
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Municipal Portfolio

as of 7/31/17

Fund Commentary

The month of July, marks the mid-point of the "municipal note season." The municipal note season is time of year when many municipalities offer fixed rate tax and revenue anticipation notes (TRANs) in advance of future tax receipts. Throughout the month, fixed income investors continued to aggressively purchase these tax-exempt notes to reduce cash balances. Strong demand for these one-year notes kept the one-year tax-exempt yield curve relatively flat throughout the month. In spite of the availability of municipal TRANs, Northern Trust portfolio managers invested cash balances by purchasing daily and weekly municipal variable rate demand notes (VRDNs). The flatness of the one-year tax-exempt yield curve, coupled with the ability to tender par, continued to make the VRDN the investment of choice during the month of July.

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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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