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Income Equity

TickerNAV AS OF 04/28/17
NOIEX$13.45 $-0.06 Arrow Down Icon

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This Fund may be a good choice for those moderate-risk investors looking for a relatively high level of current income, but don't want to forego the capital appreciation potential of the stock market. Using fundamental research and quantitative analysis, our experienced investment management team buys and sells securities based on such factors as a company's current income, prospects for growth and capital appreciation potential. The Fund will, under normal circumstances, invest at least 80% of its net assets in income-producing equity securities, including dividend-paying common and preferred stocks and convertible securities. The Fund also may invest up to 20% of its net assets in a broad range of non-convertible fixed-income securities without limitation as to maturity.
Fund Objective
Current Income and Capital Appreciation
Fund Strategy
  • Apply a proprietary quality score to screen out low-quality securities, then select stocks from the remaining universe of securities giving exposure to securities ranking at the top in both quality and dividend yield.
  • Maintain a conservative, broadly diversified portfolio of companies with strong prospects for growth and appreciation potential.
Investor Profile

If you are a moderate-risk investor looking for a relatively high level of current income, but don't want to forego the capital appreciation potential of the stock market, you may like this Fund.

Risk/Reward Potential
Risk/Reward Image

Fund Literature

Important risk information can be found on the Portfolio tab.


YTD Total Return5.05% (as of 04/28/17)
30-Day SEC Yield w/ Waivers1.98% (as of 03/31/17)
30-Day SEC Yield w/o
1.83% (as of 03/31/17)
Inception Date04/01/94
Total Net Assets$230,495,449 (as of 03/31/17)

Total Returns

Total Returns for Quarter Ending 03/31/17
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Income Equity0.24%4.48%4.48%12.94%7.88%10.43%6.93%8.65%
S&P 500 Index0.12%6.07%6.07%17.17%10.37%13.30%7.51%9.63%
Morningstar Cat. Avg.
Large Value
Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here.

Northern Trust Investments, Inc. has contractually agreed to reimburse a portion of the operating expenses of the Fund (other than certain excepted expenses, i.e., acquired fund fees and expenses; the compensation paid to each Independent Trustee of the Trust; expenses of third party consultants engaged by the Board of Trustees; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; expenses in connection with the negotiation and renewal of the revolving credit facility; and extraordinary expense and interest) to the extent the "Total Annual Fund Operating Expenses" exceed 1.00%. The "Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the excepted expenses that are not reimbursed. This contractual limitation may not be terminated before July 31, 2017 without the approval of the Board of Trustees. In the absence of fee waivers, yield, total return, growth since inception and dividends would have been reduced. Total return is based on net change in NAV assuming reinvestment of distributions.

Annual Expense Ratios

 Gross Expense RatioNet Expense Ratio
Income Equity1.13%1.00%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2017. The Fund also includes voluntary expense reimbursements that may change or end at any time.

Calendar Year Returns

       2016      2015      2014      2013      2012
Income Equity11.37%0.45%9.28%24.85%10.61%
S&P 500 Index11.96%1.38%13.69%32.39%16.00%
Morningstar Category Avg. Large Value14.81%-4.05%10.21%31.21%14.57%
Performance quoted represents past performance and does not guarantee future results.
Important risk information can be found on the Portfolio tab.


Portfolio Composition
Top 10 HoldingsFund
Apple Inc4.5%
Home Depot Inc3.6%
Altria Group Inc3.6%
Boeing Co3.3%
JP Morgan Chase & Co3.3%
Merck & Co Inc3.1%
Wells Fargo & Co3.1%
Pfizer Inc2.8%
Verizon Communications Inc2.7%
United Parcel Service Inc Class B2.7%
% of Portfolio32.7%
As of 03/31/17
Sector WeightingsFundBenchmark
Information Technology18.9%22.1%
Consumer Discretionary11.5%12.3%
Health Care11.0%13.9%
Consumer Staples10.6%9.3%
Real Estate5.0%2.9%
Telecommunication Services3.3%2.4%
As of 03/31/17
Risk Characteristics*Income EquityS&P 500 Index
Up Market Capture76.78100.00
Down Market Capture83.69100.00
Information Ratio–0.660.00
*Above risk characteristics are based on a 3-year time period
DateHoldings File
As of 03/31/17Icon
As of 12/31/16Insert Icon

Fund Characteristics

Number of Holdings68
Portfolio Turnover13.14% (as of 03/31/16)
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.0759
Capital Gain Income Last QuarterN/A
Weighted Average Market Cap ($Mil)$131,707
BenchmarkS&P 500 Index
Morningstar CategoryLarge Value
Trailing 12-Month Price-to-Earnings Ratio
Price-to-Book Ratio
Historical 5-Year Earnings Growth
Asset Allocation 
Equity Risk: Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed-income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.
High-Yield Risk: Although a high-yield fund’s yield may be higher than that of fixed income funds that purchase higher-rated securities, the potentially higher yield is a function of the greater risk that a high-yield fund’s share price will decline.
Interest-Rate Risk: Increases in prevailing interest rates will cause fixed-income securities, including convertible securities, held by the Fund to decline in value.
S&P 500® Index is an unmanaged index consisting of 500 stocks and is a widely recognized common measure of the performance of the overall U.S. stock market. It is not possible to invest directly in an index.
Jacob C. Weaver, CFA<sup>&reg;</sup>, CPA

Jacob C. Weaver, CFA®, CPA

Portfolio Manager

Northern Income Equity Fund (NOIEX)

With Northern Trust Since 1998
Began Career in 1998

Jacob C. Weaver, Senior Vice President of Northern Trust, is team leader of the global equity team responsible for the implementation of several quantitative active equity strategies specializing in Tax Advantaged Equity and Quality Dividend Focus strategies. He currently manages the Northern Income Equity Fund.

Prior to rejoining the team in 2010, Mr. Weaver was the Head of International Indexing in Northern Trust’s London office, overseeing a team of portfolio managers to various international indexes. Prior to this, he spent six years as a portfolio manager focused on quantitative active strategies including Small Cap Core and Tax Advantaged Equity.

Mr. Weaver received a B.S. in finance from the University of Illinois at Urbana-Champaign and an MBA from the University of Chicago Booth School of Business with concentrations in finance and organizational behavior. He is an active CFA® charterholder, a CPA, and a member of the CFA Chicago Society and the CFA Institute.

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Not FDIC insured | May lose value | No bank guarantee

View investment term 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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