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Income Equity

TickerNAV AS OF 05/24/16
NOIEX$12.24 $0.12 Arrow Up 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
  • Select securities with the potential to generate high current yields, such as dividend-paying common stocks, preferred stocks and convertible securities, as well as selected fixed income securities.
  • Maintain a conservative, broadly diversified portfolio of companies with strong prospects for growth and appreciation potential.
  • 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.
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
Overall Morningstar RatingTM
Morningstar Rating

Among 1,199 large value funds derived from a weighted average of the fund's 3-, 5- and 10-year risk-adjusted returns as of 4/30/16.

Income Equity received 3 stars for the 3-year rating among 1,199 large value funds, 3 stars for the 5-year rating among 1,048 funds and 5 stars for the 10-year rating among 759 funds.

Past performance is no guarantee of future results. Ratings reflect fee waivers in effect; in their absence, ratings may have been lower.

Star ratings are based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The overall rating is a weighted average of the 3-, 5-, and 10-year (if applicable) returns. 5 stars = top 10% of funds in an asset category; 4 stars = next 22.5% of funds; 3 stars = next 35%; 2 stars = next 22.5% and 1 star = next 10%. A fund must be in existence three years to be rated. Ratings are subject to change monthly.

©2016 Morningstar, Inc. All Rights Reserved. Morningstar and/or its content providers are the proprietors of this information; do not permit its unauthorized copying or distribution; do not warrant it to be accurate, complete or timely; and are not responsible for damages or losses arising from its use.

Fund Literature

Important risk information can be found on the Portfolio tab.
YTD Total Return3.57% (as of 05/24/16)
30-Day SEC Yield w/ Waivers2.16% (as of 04/30/16)
30-Day SEC Yield w/o
2.02% (as of 04/30/16)
Inception Date04/01/94
Total Net Assets$234,386,142 (as of 04/30/16)

Total Returns

Total Returns for Month Ending 04/30/16
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Income Equity-0.34%6.12%2.68%2.44%7.55%7.72%7.13%8.41%
S&P 500 Index0.39%7.05%1.74%1.21%11.26%11.02%6.91%9.29%
Morningstar Cat. Avg.
Large Value

Total Returns

Total Returns for Quarter Ending 03/31/16
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Income Equity5.54%3.03%3.03%1.62%8.44%8.21%7.33%8.46%
S&P 500 Index6.78%1.35%1.35%1.78%11.82%11.58%7.01%9.30%
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%. This contractual limitation may not be terminated before July 31, 2016 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 Equity1.12%1.00%
Includes contractual expense reimbursements that, if not extended, will end on July 31, 2016.

Calendar Year Returns

       2015      2014      2013      2012      2011
Income Equity0.45%9.28%24.85%10.61%2.18%
S&P 500 Index1.38%13.69%32.39%16.00%2.11%
Morningstar Category Avg. Large Value-4.05%10.21%31.21%14.57%-0.75%
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
Pfizer Inc4.6%
Wells Fargo & Co4.3%
Altria Group Inc4.2%
Home Depot Inc4.2%
Accenture PLC4.1%
United Parcel Service Inc Class B3.7%
Boeing Co3.6%
Texas Instruments Inc3.4%
Lockheed Martin Corp3.2%
Verizon Communications Inc3.0%
% of Portfolio38.3%
As of 04/30/16
Sector WeightingsFundBenchmark
Information Technology17.6%19.6%
Health Care14.1%14.6%
Consumer Discretionary13.1%13.0%
Consumer Staples10.8%10.2%
Telecommunication Services3.0%2.7%
As of 04/30/16
Risk Characteristics*Income EquityS&P 500 Index
Up Market Capture74.41100.00
Down Market Capture88.24100.00
Information Ratio–1.080.00
*Above risk characteristics are based on a 3-year time period
DateHoldings File
As of 03/31/16Icon
As of 12/31/15Insert Icon

Fund Characteristics

Number of Holdings55
Portfolio Turnover109.84% (as of 03/31/15)
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.0773
Capital Gain Income Last QuarterN/A
Weighted Average Market Cap ($Mil)$77,845
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

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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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