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|For those investors who want a high current income that is exempt from regular federal income tax and California state personal income tax, you may find this Fund attractive. It is well suited for income-oriented investors in higher tax brackets who are willing to accept some risk of principal in exchange for higher yield potential. Income from the Fund may be subject to federal alternative minimum tax (AMT), state and local taxes. Our experienced investment team concentrates our investments in California-specific, investment-grade municipal instruments which are exempt from federal income tax and California state personal income tax while maintaining an average maturity between 10 and 30 years.
|Current Tax-Exempt Income|
|If you are an investor who wants high current income that is exempt from regular federal income tax and California state personal income tax, you may find this Fund attractive. It is well suited for income-oriented investors in higher tax brackets who are willing to accept some risk of principal in exchange for higher yield potential. Income from the Fund may be subject to federal alternative minimum tax (AMT), state and local taxes.|
|Overall Morningstar RatingTM|
Among 87 municipal California long funds derived from a weighted average of the fund's 3-, 5- and 10-year risk-adjusted returns as of 9/30/17.
California Tax-Exempt received 3 stars for the 3-year rating among 87 municipal California long funds, 3 stars for the 5-year rating among 77 funds and 4 stars for the 10-year rating among 65 funds.
The Morningstar RatingTM 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.
©2017 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.
|YTD Total Return||4.63% (as of 10/20/17)|
|Distribution Rate*||3.54% (as of 10/20/17)|
|30-Day SEC Yield w/ Waivers*||2.06%
|30-Day SEC Yield w/o Waivers*||1.84%
|Total Net Assets||$180,408,382
|Tax-Equivalent Distribution Rate*||6.00% (as of 10/20/17)|
|Tax-Equivalent 30-Day SEC Yield*||4.76% (as of 09/30/17)|
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|Bloomberg Barclays California |
Municipal Bond Index
|Morningstar Cat. Avg.|
Muni California Long
|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 0.45%. The "Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the excepted expenses, including but not limited to acquired fund fees and expenses, that are not reimbursed. This contractual limitation may not be terminated before July 31, 2018 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.
|Gross Expense Ratio||Net Expense Ratio‡|
|‡Includes contractual expense reimbursements that, if not extended, will end on July 31, 2018. The Fund also includes voluntary expense reimbursements that may change or end at any time.|
|Bloomberg Barclays California Municipal Bond Index||-0.12%||3.53%||9.97%||-1.77%||8.14%|
|Morningstar Category Avg. Muni California Long||0.07%||3.72%||12.07%||-3.71%||10.42%|
|Performance quoted represents past performance and does not guarantee future results.|
|0 - 1 Year||8.5%|
|2 - 5 Years||28.7%|
|6 - 10 Years||9.2%|
|11 - 20 Years||40.0%|
|21 - 30 Years||12.3%|
|Number of Holdings||78|
|Portfolio Turnover||97.34% (as of 03/31/17)|
|Average Duration†||5.1 YRS|
|Average Maturity||10.4 YRS|
|Weighted Average Coupon||3.92%|
|Dividend Income Last Quarter||$0.0966|
|Capital Gain Income Last Quarter||N/A|
|Benchmark||Bloomberg Barclays California Municipal Bond Index|
|Morningstar Category||Muni California Long|
|All data is as of date indicated and subject to change.|
|Bond Risk: Bond funds will tend to experience smaller fluctuations in value than stock funds. However, investors in any bond fund should anticipate fluctuations in price, especially for longer-term issues and in environments of rising interest rates.|
|Non-Diversified Risk: The Fund invests in a smaller number of securities than the average mutual fund. The change in value of a single holding may have a more pronounced effect on the Fund’s net asset value and performance than for other funds.|
|Tax-Free/AMT Risk: Tax-exempt funds’ income may be subject to certain state and local taxes and, depending on your tax status, the federal alternative minimum tax.|
|Regional Investment Risk: The geographical concentration of portfolio holdings in this Fund may involve increased risk.|
|Bloomberg Barclays California Municipal Bond Index is an unmanaged index of investment grade (Baa3 or better) tax-exempt California bonds with a remaining maturity of at least one year. It is not possible to invest directly in an index.|
|Quality Distribution: Credit quality ratings are based on the conservative average of Moody's, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor's nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor's capacity to meet its financial commitment on the obligation is strong) to D (in default). Committed Cash includes any traded cash (forward settling trades), the sweep vehicle and commercial paper. The ratings represent the rating agencies' opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.|
|Distribution Calculations: All distribution calculations (Maturity Distribution, Sector Weightings and Quality Distribution) are measured on a trade date basis and are adjusted for uninvested cash from the market value used to compute the percentage calculations.|
With Northern Trust Since 1985
Began Career in 1985
Eric V. Boeckmann, Senior Vice President of Northern Trust, manages the Northern Arizona Tax-Exempt Fund, Northern California Intermediate Tax-Exempt Fund and Northern California Tax-Exempt Fund.
In addition to managing mutual funds, Mr. Boeckmann is a Portfolio Manager in the Municipal Fixed Income Management Group, where he is responsible for a number of separately managed municipal bond portfolios.
Mr. Boeckmann received a B.S. in finance from the University of Illinois.
Not FDIC insured | May lose value | No bank guarantee
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.
©2017 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.