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|If you are an aggressive investor seeking high current income and the potential for capital appreciation for a portion of your assets, you may find this Fund provides an attractive complement to a well-diversified portfolio. This Fund is a good choice for long-term investors willing to assume the additional risks associated with investing in high yield securities including above-average share price fluctuations. Our knowledgeable investment team focuses primarily on high-yielding, lower-rated corporate bonds (those rated BB or below; these are commonly referred to as "non-investment grade" or "junk bonds"). We believe these securities offer the opportunity for higher income and greater total return potential than is generally available from high-quality, investment-grade securities.
|High Current Income
|If you are an aggressive investor seeking high current income and the potential for capital appreciation for a portion of your assets, you may find this Fund provides an attractive complement to a well-diversified portfolio. It is best suited for long-term investors willing to assume the additional risks associated with investing in high yield securities including above-average share price fluctuations.|
|2% on shares sold or exchanged within 30 days of purchase|
|YTD Total Return||1.19% (as of 10/19/18)|
|Distribution Rate*||6.41% (as of 10/19/18)|
|30-Day SEC Yield w/ Waivers*||6.38%
|30-Day SEC Yield w/o Waivers*||6.37%
|Total Net Assets||$4,074,448,188
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|High Yield Fixed Income||0.65%||2.45%||2.23%||3.36%||6.49%||4.64%||7.69%||5.87%|
|Bloomberg Barclays U.S. Corporate |
High Yield 2% Issuer
|Morningstar Cat. Avg.|
High Yield Bond
|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 0.78%. 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, 2019 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*‡|
|High Yield Fixed Income||0.82%||0.79%|
|‡Includes contractual expense reimbursements that, if not extended, will end on July 31, 2019. The Fund also includes voluntary expense reimbursements that may change or end at any time.|
|High Yield Fixed Income||7.58%||11.23%||-3.02%||2.11%||7.68%|
|Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index||7.50%||17.13%||-4.43%||2.46%||7.44%|
|Morningstar Category Avg. High Yield Bond||6.47%||13.30%||-4.01%||1.11%||6.90%|
|Performance quoted represents past performance and does not guarantee future results.|
|0 - 1 Year||4.6%|
|1 - 3 Years||5.5%|
|3 - 5 Years||21.9%|
|5 - 10 Years||55.1%|
|CC to D||0.4%||0.8%|
|Number of Holdings||171|
|Portfolio Turnover||95.52% (as of 03/31/18)|
|Average Duration†||4.0 YRS|
|Average Maturity||6.5 YRS|
|Weighted Average Coupon||7.2%|
|Dividend Income Last Quarter||$0.1036|
|Capital Gain Income Last Quarter||N/A|
|Benchmark||Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index|
|Morningstar Category||High Yield Bond|
|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.|
|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.|
|Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index is an unmanaged index that measures the market of U.S. dollar-denominated, non-investment-grade, fixed-rate, taxable corporate bonds. It is a version of the Bloomberg Barclays High Yield Corporate Bond Index except it limits its exposure of each issuer to 2% of the total market value and redistributes any excess market value Index-wide on a pro-rata basis. 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 A-3 (exhibits adequate protection parameters). 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.|
With Northern Trust Since 2007
Began Career in 1991
Richard J. Inzunza, CFA, Senior Vice President of Northern Trust, and Director, High Yield Fixed Taxable Fixed Income. He currently co-manages the Northern High Yield Fixed Income Fund.
Mr. Inzunza rejoined Northern Trust in August 2007 after serving as a senior fundamental analyst at Vanderbilt Capital Advisors from April 2007 focusing on absolute return strategies in bond and derivative markets. From December 2004 to 2007, he was a senior analyst at Northern Trust covering high-yield investment grade investments. Prior to joining Northern Trust, Mr. Inzunza was a senior analyst for Principal Global Investors in London, England and was responsible for credits trading in Euro, Sterling and U.S. dollars. Mr. Inzunza was previously senior analyst for Principal Global Investors in the high yield and distressed markets.
Mr. Inzunza received a B.S. in business administration - accounting from the California State University at Los Angeles and an MBA in finance from the William E. Simon School of Business Administration at the University of Rochester. He is an active CFA® charterholder and a member of the CFA Institute, CFA Society Chicago and CFA Society United Kingdom.
With Northern Trust Since 2005
Began Career in 2002
Bradley Camden, Senior Vice President of Northern Trust, is a member of the active long duration strategy team and responsible for research and implementation of several quantitative fixed income strategies. He currently co-manages the Northern Core Bond Fund, Northern Fixed Income Fund, Northern High Yield Fixed Income Fund and Northern Short Bond Fund.
Prior to joining Northern Trust in 2005, Mr. Camden was a member of Northern Trust’s Global Opportunities Leadership Development (GOLD) program where he completed rotations in Tax Advantage Equity Indexing, Equity Research and Fixed Income.
Mr. Camden holds a B.A. in economics from DePauw University. He is an active CFA® charterholder and a member of the CFA Institute and the CFA Society Chicago.
With Northern Trust Since 2008
Began Career in 2008
Eric Williams, Vice President of Northern Trust and a Portfolio Manager. He currently co-manages the Northern High Yield Fixed Income Fund.
Prior to joining Northern Trust, Mr. Williams served as a financial advisor with Waddell & Reed, where he worked to develop financial plans for clients.
Mr. Williams received a B.A. in economics from the University of Colorado and an MBA in finance and economics from the University of Chicago Booth School of Business.
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.
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