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Fixed Income Taxable

Ultra-Short Fixed Income

 
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TickerNAV AS OF 01/22/19
NUSFX$10.14 $0.00 Same Icon
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Snapshot
The Ultra-Short Fixed Income Fund seeks to generate higher yields than money market funds with less volatility than short duration bond funds. It is intended for investors with an investment horizon of at least one year and strives to maintain a 6-18 month average maturity, under normal circumstances, with a maximum security maturity of three years.

This Fund is not a money market fund, which maintains a $1.00 NAV, and the Fund's share price will fluctuate with its returns. An investment in the Fund can result in the loss of principal.
Fund Objective
Total Return
Fund Strategy
  • Seek to yield more than a money market fund with potential for capital appreciation.
  • Strive to maintain a 6-18 month average maturity, under normal circumstances, with a maximum security duration of three years.
  • Manage Fund in an effort to have an average portfolio quality of A or better, with all securities to be investment grade.
Investor Profile
If you're seeking an investment that may generate higher yields than money market funds with less volatility than short duration bond funds, this Fund may be appropriate for you. The Fund is intended for investors with an investment horizon of at least one year who are seeking to move a portion of their money market fund assets.

The Fund is not a money market fund, which maintains a $1.00 NAV, and the Fund's share price will fluctuate with its returns.
Risk/Reward Potential
”Risk/Reward
Overall Morningstar RatingTM
Morningstar Rating

Among 145 ultrashort bond funds derived from a weighted average of the fund's 3- and 5-year risk-adjusted returns as of 12/31/18.

Ultra-Short Fixed Income received 3 stars for the 3-year rating among 145 ultra short bond funds and 4 stars for the 5-year rating among 122 funds. The 10-year Morningstar Rating is not available.

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.

©2019 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.

 

CUSIP665162467
YTD Total Return0.25% (as of 01/22/19)
Distribution Rate*1.91% (as of 01/22/19)
30-Day SEC Yield w/ Waivers*2.91% (as of 12/31/18)
30-Day SEC Yield w/o Waivers*2.90% (as of 12/31/18)
Inception Date06/18/09
Total Net Assets$2,289,734,276 (as of 12/31/18)
*Distribution rate and tax-equivalent distribution rate represent the annualization of the Fund's distributions for the prior month ending on the date shown, including capital gain distributions. The 30-day SEC yield and tax-equivalent 30-day SEC yield represent the annualization of the Fund's net investment income, excluding capital gain income. The tax-equivalent distribution rate and tax-equivalent 30-day SEC yield are based on an assumed tax rate of 45.3% for Arizona, 54.1% for California and 40.8% for national municipal funds.

Total Returns

Total Returns for Quarter Ending 12/31/18
 Annualized
 Month  3-MonthYTD1-Year 3-Year5-Year10-YearSince
Incept.
Ultra-Short Fixed Income0.23%0.32%1.54%1.54%1.53%1.13%N/A1.33%
ICE BofA Merrill Lynch 1-Year
U.S. Treasury Note Index*
0.36%0.78%1.86%1.86%1.06%0.70%N/A0.62%
Morningstar Cat. Avg.
Ultrashort Bond
0.07%0.28%1.61%1.61%1.47%0.99%N/AN/A
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 0.25%. 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.

*Effective October 2017, ICE data services acquired BofA indices.

Annual Expense Ratios

 
 Gross Expense RatioNet Expense Ratio
Ultra-Short Fixed Income0.26%0.25%
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.

Calendar Year Returns

 
       2018      2017      2016      2015      2014
Ultra-Short Fixed Income1.54%1.52%1.52%0.51%0.55%
ICE BofA Merrill Lynch 1-Year U.S. Treasury Note Index*1.86%0.57%0.76%0.15%0.18%
Morningstar Category Avg. Ultrashort Bond1.61%1.44%1.41%0.17%0.34%
Performance quoted represents past performance and does not guarantee future results.

*Effective October 2017, ICE data services acquired BofA indices.
Important risk information can be found on the Portfolio tab.

 

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Portfolio Composition
   
Maturity DistributionFund
Overnight3.4%
2 - 15 Days4.3%
16 - 30 Days7.5%
31 - 60 Days14.7%
61 - 97 Days10.5%
98 - 180 Days3.3%
181 - 270 Days4.6%
271 Days - 1 Year14.7%
1 - 2 Years26.4%
2 - 3 Years10.6%
As of 11/30/18
Quality DistributionFund
AAA(Long Term)14.7%
AA+(Long Term)0.6%
AA(Long Term)1.3%
AA-(Long Term)13.3%
A+(Long Term)8.7%
A(Long Term)16.5%
A-(Long Term)8.2%
BBB+(Long Term)13.0%
BBB(Long Term)11.2%
BBB-(Long Term)2.3%
A1+(Short Term)2.1%
A2(Short Term)1.2%
Treasury6.2%
Agency0.7%
Sector WeightingsFund
Fixed Rate Note/Bond62.1%
Variable Rate Note/Bond34.7%
Other2.0%
Commercial Paper1.2%
DateHoldings File
As of 12/31/18Insert Icon
As of 11/30/18Insert Icon
As of 10/31/18Insert Icon
As of 09/30/18Insert Icon
As of 08/31/18Insert Icon
As of 07/31/18Insert Icon

Fund Characteristics

Number of Holdings377
Portfolio Turnover58.41% (as of 03/31/18)
Average Duration0.8 YR
Average Maturity311 DAYS
Yield to Maturity3.24%
Income**$0.021383
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.0566
Capital Gain Income Last QuarterN/A
BenchmarkICE BofA Merrill Lynch 1-Year U.S. Treasury Note Index*
Morningstar CategoryUltrashort 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.
ICE BofA Merrill Lynch 1-Year U.S. Treasury Note Index is composed of a single issue: the outstanding Treasury note that matures closest to, but not beyond, one year from each monthly rebalancing date. It is not possible to invest directly in an index.
Quality Distribution: Credit quality ratings are based on the available Moody's, Standard & Poor's, and/or Fitch ratings. When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. 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). Agency securities are obligations issued or guaranteed by U.S. government agencies and sponsored enterprises. Treasury securities are obligations issued or guaranteed by the U.S. Treasury. 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.
*Effective October 2017, ICE data services acquired BofA indices.
†Northern tax-exempt fixed income funds' and Northern High Yield Fixed Income Fund's Average Duration is calculated using the modified duration formula. Other Northern fixed income funds show the option-adjusted duration. Duration is a measure of a bond fund's sensitivity to changes in interest rates.
**Per share paid out November 26 with a record date of November 23. The amount shown represents dividends paid for net investment income and excludes distributions from capital gain income.
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Morten Olsen

Morten Olsen

Portfolio Manager

Northern Ultra-Short Fixed Income Fund (NUSFX)

With Northern Trust Since 2009
Began Career in 2004

Morten Olsen, Vice President and Director of the Ultra Short Fixed Income group. The Ultra Short team of portfolio managers handles separately managed accounts for taxable and tax exempt mandates, as well as the two Ultra Short Fixed Income Mutual Funds. Mr. Olsen is co-manager of the Northern Ultra Short Fixed Income Fund.

Mr. Olsen joined Northern Trust in 2009 and spent six years in London as the lead portfolio manager responsible for the institutional EUR, GBP and USD cash funds. Prior to this, he spent five years on the funding desk at Lehman Brothers and latterly Nomura; in both roles he was responsible for the investment of the banks liquidity pool.

Mr. Olsen received his B.S. in Economics and a M.S. in Economics, both from University of Copenhagen.

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Bilal Memon

Bilal Memon

Portfolio Manager

Ultra Short Fixed Income Fund (NUSFX)

With Northern Trust Since 2007
Began Career in 2004

Bilal Memon, Vice President of Northern Trust, and a member of the Short Duration Fixed Income Group within the Northern Trust Global Investments business unit. He is a co-manager of the Ultra Short Fixed Income Fund.

Prior to joining Northern Trust in 2007, Mr. Memon was with Ford Motor Company for three years. He joined them as the Associate Director of Pension Asset Management, he became a Fixed Income Portfolio Manager in 2005, and finally became part of the Treasury Staff in 2006.

Mr. Memon received his B.A. in economics from The University of Chicago and his MBA in analytical finance and marketing management from The University of Chicago Graduate School of Business.

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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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