Northern Funds

The Morningstar Rating™ 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.

Global Tactical Asset Allocation received 4 stars for the 3-year rating among 395 world allocation funds, 4 stars for the 5-year rating among 315 funds and 3 stars for the 10-year rating among 169 funds.

Income Equity received 4 stars for the 3-year rating among 1,103 large value funds, 4 stars for the 5-year rating among 956 funds and 3 stars for the 10-year rating among 696 funds.

Large Cap Core received 4 stars for the 3-year rating among 1,103 large value funds, 4 stars for the 5-year rating among 956 funds and 4 stars for the 10-year rating among 696 funds.

Mid Cap Index received 3 stars for the 3-year rating among 362 mid-cap blend funds, 4 stars for the 5-year rating among 312 funds and 4 stars for the 10-year rating among 228 funds.

Small Cap Core received 4 stars for the 3-year rating among 633 small blend funds, 4 stars for the 5-year rating among 516 funds and 4 stars for the 10-year rating among 375 funds.

Small Cap Index received 4 stars for the 3-year rating among 633 small blend funds, 4 stars for the 5-year rating among 516 funds and 3 stars for the 10-year rating among 375 funds.

Small Cap Value received 3 stars for the 3-year rating among 379 small value funds, 4 stars for the 5-year rating among 337 funds and 4 stars for the 10-year rating among 226 funds.

Stock Index received 4 stars for the 3-year rating among 1,205 large blend funds, 4 stars for the 5-year rating among 1,066  funds and 4 stars for the 10-year rating among 809 funds.

Arizona Tax-Exempt received 5 stars for the 3-year rating among 133 municipal single state intermediate funds, 5 stars for the 5-year rating among 131 funds and 4 stars for the 10-year rating among 111 funds.

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