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|The U.S. Treasury Index Fund seeks to provide investment results approximating the performance of the Bloomberg Barclays U.S. Treasury Index. Through a passive investment approach, the Fund invests primarily in securities represented by the Index. Unlike Treasury bonds and bills, the principle value and investment return of the Fund is not guaranteed or insured by the U.S. government. Dividends, if any, are declared and paid monthly. Capital gains, if any, are distributed at least annually.|
|Seeks to Replicate the Index|
|If you are an income-oriented investor who is looking to diversify your investments by gaining broad exposure to the U.S. Treasury market then this Fund may be right for you. It offers a diversified portfolio of Treasury securities approximating the Bloomberg Barclays U.S. Treasury Index.|
|YTD Total Return||9.58% (as of 08/10/20)|
|Distribution Rate*||1.32% (as of 08/10/20)|
|30-Day SEC Yield w/ Waivers*||2.33%
|30-Day SEC Yield w/o Waivers*||2.21%
|Total Net Assets||$84,547,759
|Month|| ||YTD|| ||3-Year||5-Year|| || Since
|U.S. Treasury Index||1.90%||2.06%||2.06%||4.03%||0.85%||1.99%||2.23%||4.82%|
|Bloomberg Barclays U.S. Treasury Index||1.91%||2.11%||2.11%||4.22%||1.04%||2.16%||2.43%||5.28%|
|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‡|
|U.S. Treasury Index||0.28%||0.16%|
|‡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.|
|U.S. Treasury Index||0.68%||2.13%||0.85%||0.68%||4.87%|
|Bloomberg Barclays U.S. Treasury Index||0.86%||2.31%||1.04%||0.84%||5.05%|
|Morningstar Category Avg. Intermediate Government||0.51%||1.58%||0.89%||0.49%||4.73%|
|Performance quoted represents past performance and does not guarantee future results.|
|US Tsy (incl GNMA MBS)||99.8%||100.0%|
|Number of Holdings||243|
|Portfolio Turnover||34.21% (as of 03/31/18)|
|Effective Duration†||6.15 YRS|
|Average Maturity||7.76 YRS|
|Weighted Average Coupon||2.41%|
|Yield to Maturity||2.38%|
|Dividend Income Last Quarter||$0.1197|
|Capital Gain Income Last Quarter||N/A|
|Benchmark||Bloomberg Barclays U.S. Treasury Index|
|Morningstar Category||Intermediate Government|
|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.|
|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.|
|U.S. Government Guarantee: U.S. government guarantees apply only to the underlying securities of a Fund’s portfolio and not the Fund’s shares.
|Bloomberg Barclays U.S. Treasury Index is an unmanaged index of prices of U.S. Treasury bonds with maturities of one to 30 years. 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 2005
Began Career in 1995
Michael R. Chico, Vice President of Northern Trust, is a member of the active long duration strategy team and responsible for quantitatively managing and trading fixed income accounts for Northern Trust clients. He currently co-manages the Northern Short-Intermediate U.S. Government Fund, Northern U.S. Government Fund and Northern U.S. Treasury Index Fund.
Prior to joining Northern Trust in 2005, Mr. Chico was Vice President of MBS Trading at JP Morgan Securities, Inc, formerly Banc One Capital Markets, Inc.
Mr. Chico received a B.A. in economics from the University of Pennsylvania and MBA in finance and economics from the University of Chicago Graduate School of Business. He is a CFA charterholder in the CFA Society of Chicago.
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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