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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.|
|YTD Total Return||3.04% (as of 02/25/20)|
|Distribution Rate*||2.94% (as of 02/25/20)|
|30-Day SEC Yield w/ Waivers*||2.72%
|30-Day SEC Yield w/o Waivers*||2.61%
|Total Net Assets||$179,391,287
|Tax-Equivalent Distribution Rate*||6.41% (as of 02/25/20)|
|Tax-Equivalent 30-Day SEC Yield*||5.93% (as of 03/31/19)|
|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, 2019 without the approval of the Board of Trustees. In the absence of contractual expense reimbursements, 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, 2019. The Fund also includes voluntary expense reimbursements that may change or end at any time.|
|Bloomberg Barclays California Municipal Bond Index||1.11%||5.63%||-0.12%||3.53%||9.97%|
|Morningstar Category Avg. Muni California Long||0.62%||5.91%||0.07%||3.72%||12.07%|
|Performance quoted represents past performance and does not guarantee future results.|
|0 - 1 Year||12.0%|
|2 - 5 Years||11.2%|
|6 - 10 Years||11.4%|
|11 - 20 Years||31.4%|
|21 - 30 Years||28.4%|
|Number of Holdings||86|
|Portfolio Turnover||83.27% (as of 03/31/18)|
|Modified Duration†||5.47 YRS|
|Average Maturity||14.38 YRS|
|Weighted Average Coupon||4.06%|
|Dividend Income Last Quarter||$0.1026|
|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 2004
Began Career in 1991
Fred A. Azar, Vice President of Northern Trust, is a portfolio manager in the tax-exempt fixed income group of Northern Trust Asset Management. In June 2018, he moved into his current role as co-manager of the Northern Arizona Tax-Exempt Fund, Northern California Intermediate Tax-Exempt Fund, Northern California Tax-Exempt Fund and Northern Tax-Exempt Fund.
Mr. Azar joined Northern Trust in 2004. He has had previous positions as the Director of Fixed Income Business Management, Director of Core Strategies, and Senior Portfolio Manager in Short Duration Fixed Income. He began his career in 1991 with Harris Bank.
Mr. Azar received a B.S. in accounting and business administration and an MBA from the University of Kansas. He is a Certified Public Accountant.
With Northern Trust Since 2010
Began Career in 2003
Adam M. Shane, CFA, is a Senior Vice President for Northern Trust. Mr. Shane is Director of High Yield Municipal Fixed Income and co-manages the Northern High Yield Municipal Fund, Northern California Intermediate Tax-Exempt Fund and Northern California Tax-Exempt Fund.
Prior to his current role, Mr. Shane was Director of Fixed Income Research. He led a team of corporate, financial, municipal, and sovereign analysts in Chicago, London, and Bangalore, providing fundamental credit research in support of Northern Trust's fixed income capabilities.
Prior to joining Northern Trust in 2010, Mr. Shane was a senior research analyst at Nuveen Investments.
Mr. Shane has a B.A. in history from Williams College and an MBA, with concentrations in accounting and finance, from the University of Chicago, Graduate School of Business. He is an active CFA® charterholder, a member of the CFA Society Chicago, the CFA Institute, the Chicago Municipal Analysts Society, and the National Federation of Municipal Analysts.
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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