Bond Index

Summary

This Fund is a good choice for those long-term, income-oriented investors who are looking to diversify their investments by gaining a broad exposure to the U.S. bond market. It offers a diversified portfolio of bond securities approximating the relative composition of securities included in the Bloomberg Barclays U.S. Aggregate Bond Index. Investors will gain a broad exposure to the U.S. Treasury, government agency, investment grade corporate bond, mortgage - and asset-backed sectors of the fixed income markets.

Fund Objective

Seeks to Replicate Index

Fund Strategy

• Passively managed in an effort to replicate the performance and composition of the Bloomberg Barclays U.S. Aggregate Bond Index.
• Gain broad exposure to the U.S. Treasury, government agency, investment-grade corporate bond, mortgage- and asset-backed sectors of the fixed income markets.
• Provide investors with a way to gain broad exposure to U.S. bond market.

Investor Profile

If you are a long-term, income-oriented investor who is looking to diversify your investments by gaining broad exposure to the U.S. bond market, then this Fund may be right for you. It offers a diversified portfolio of bond securities approximating the Lehman Brothers U.S. Aggregate Index.

Risk/Reward Potential

Overall Morningstar Rating ^TM

Among 386 intermediate core bond funds derived from a weighted average of the fund's 3-, 5- and 10-year risk-adjusted returns as of 4/30/20.

Bond Index received 4 stars for the 3-year rating among 386 intermediate core bond funds, 4 stars for the 5-year rating among 331 funds and 3 stars for the 10-year rating among 252 funds.

The Morningstar Rating^TM 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.

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Important risk information can be found on the Portfolio tab.

Not FDIC insured | May lose value | No bank guarantee

View investment terms definitions

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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