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|This Fund is a good choice for those long-term, income-oriented investors who are looking to diversify their investments by gaining a broad exposure to the U.S. bond market. It offers a diversified portfolio of bond securities approximating the Bloomberg Barclays U.S. Aggregate Bond Index. Investors will gain a broad exposure to the U.S. Treasury, government agency, investment grade corporate bond, mortgage - and asset-backed sectors of the fixed income markets.
|Seeks to Replicate Index|
|If you are a long-term, income-oriented investor who is looking to diversify your investments by gaining broad exposure to the U.S. bond market, then this Fund may be right for you. It offers a diversified portfolio of bond securities approximating the Lehman Brothers U.S. Aggregate Index.|
|YTD Total Return||6.27% (as of 07/02/20)|
|Distribution Rate*||2.19% (as of 07/02/20)|
|30-Day SEC Yield w/ Waivers*||2.90%
|30-Day SEC Yield w/o Waivers*||2.88%
|Total Net Assets||$3,022,136,479
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|Bloomberg Barclays U.S. Aggregate |
|Morningstar Cat. Avg.|
|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 0.15%. The “Total Annual Fund Operating Expenses After Expense Reimbursement" may be higher than the contractual limitation as a result of the excepted 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 U.S. Aggregate Bond Index||0.01%||3.54%||2.65%||0.55%||5.97%|
|Morningstar Category Avg. Intermediate-Term Bond||-0.50%||3.71%||3.23%||-0.26%||5.18%|
|Performance quoted represents past performance and does not guarantee future results.|
|US Tsy (incl GNMA MBS)||46.6%||47.3%|
|US Agcy (incl FN/FH MBS)||21.5%||21.5%|
|Foreign Local Govt||0.3%||0.3%|
|Number of Holdings||2,861|
|Portfolio Turnover||44.51% (as of 03/31/18)|
|Effective Duration†||5.66 YRS|
|Average Maturity||8.07 YRS|
|Weighted Average Coupon||3.35%|
|Yield to Maturity||2.93%|
|Dividend Income Last Quarter||$0.0806|
|Capital Gain Income Last Quarter||N/A|
|Benchmark||Bloomberg Barclays U.S. Aggregate Bond Index|
|Morningstar Category||Intermediate-Term 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.|
|Mortgage-Backed Securities Risk: Mortgage-backed investments involve risk of loss due to prepayments and, like any bond, due to default. Because of the sensitivity of mortgage-related securities to changes in interest rates, the Fund’s performance may be more volatile than if it did not hold these securities.|
|Index Fund Risk: The performance of the Fund is expected to be lower than that of the Index because of Fund fees and expenses. It is important to remember that there are risks associated with index investing, including the potential risk of market decline, as well as the risks associated with investing in specific companies.|
|Bloomberg Barclays U.S. Aggregate Bond Index is an unmanaged index of prices of U.S. dollar-denominated, fixed-rate, taxable, investment-grade fixed-income securities with remaining maturities of one year and longer. The Index includes Treasury, government, corporate, mortgage-backed, commercial mortgage-backed and asset-backed securities. 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.|
|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.|
|Characteristics: Benchmark and Fund analytics have been calculated using a third party vended model. All material has been obtained from sources believed to be reliable, but the accuracy, completeness and interpretation cannot be guaranteed. Information contained herein is current as of the date appearing in this material only and is subject to change without notice. Certain benchmark calculations may not match the published benchmark characteristics.|
With Northern Trust Since 2003
Began Career in 1981
Louis D'Arienzo, Vice President of Northern Trust, is a portfolio manager for the Fixed Income Index group and responsible for managing structured fixed income accounts. He currently co-manages the Northern Bond Index Fund.
Prior to joining Northern Trust in 2003, Mr. D'Arienzo was a senior fixed income portfolio manager for Deutsche Asset Management in New York. He joined Deutsche in 1981 (prior to the Deutsche Bank merger), where his investment experience included trading in structured portfolios and quantitative analysis of fixed income and derivative securities.
Mr. D'Arienzo received a B.S. in finance from the Stern School of Business at New York University.
With Northern Trust Since 2007
Began Career in 2005
Brandon P. Ferguson, Vice President of Northern Trust, currently co-manages the Northern Bond Index Fund and Northern U.S. Treasury Index Fund. He is also a member of the Northern Trust Fixed Income Credit Strategy Committee.
Mr. Ferguson joined Northern Trust in November 2007 as an Investment Associate in the Fixed Income Group, was promoted to Associate Fixed Income Portfolio Manager in July 2009, and for the past two years has managed various fixed-income accounts for Northern Trust clients. From 2006 to 2007, Mr. Ferguson was a commercial credit analyst at First Midwest Bank. Prior to this, he served as a credit manager and mortgage salesman for Wells Fargo Financial.
Mr. Ferguson received a B.A. in business administration and psychology from Illinois Wesleyan University. He is an active CFA® charterholder and a member of the CFA Institute and the CFA Society Chicago.
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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