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Fixed Income Taxable

High Yield Fixed Income

 
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TickerNAV AS OF 03/31/20
NHFIX$5.58 $0.04 Arrow Up Icon
 
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Snapshot
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.
Fund Objective
High Current Income
Fund Strategy
  • Invest primarily in high-yielding, lower-rated corporate debt. Lower-rated debt is commonly referred to as "junk bonds."
  • Take steps to properly manage downside risk by maintaining a broadly diversified portfolio.
  • Rely on our extensive credit research capabilities in an effort to manage risk and minimize defaults.
Investor Profile
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.
Redemption Fee
2% on shares sold or exchanged within 30 days of purchase
Risk/Reward Potential
”Risk/Reward
      Important risk information can be found on the Portfolio tab.

       
      CUSIP665162699
      YTD Total Return-16.22% (as of 03/31/20)
      Distribution Rate*7.52% (as of 03/31/20)
      30-Day SEC Yield w/ Waivers*6.99% (as of 03/31/19)
      30-Day SEC Yield w/o Waivers*6.96% (as of 03/31/19)
      Inception Date12/31/98
      Total Net Assets$3,795,100,475 (as of 03/31/19)
      *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 w/waivers represents the annualization of the Fund's net investment income, excluding capital gain income and includes contractual expense reimbursements. It would be lower without those reimbursements. The 30-day SEC yield w/o waivers represents the annualization of the Fund's net investment income, excluding capital gain income, but excludes contractual expense reimbursements, resulting in a lower yield. The tax-equivalent 30-day SEC yield represents 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 03/31/19
       Annualized
          Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
      Incept.
      High Yield Fixed Income1.00%7.84%7.84%4.64%7.26%3.58%8.59%5.80%
      Bloomberg Barclays U.S. Corporate
      High Yield 2% Issuer
      Capped Index      		0.94%7.26%7.26%5.93%8.56%4.69%11.21%6.97%
      Morningstar Cat. Avg.
      High Yield Bond      		0.80%6.35%6.35%4.33%6.97%3.45%9.49%N/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 0.78%. 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 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.

      Annual Expense Ratios

       
       Gross Expense RatioNet Expense Ratio*‡
      High Yield Fixed Income0.83%0.78%
      ‡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
      High Yield Fixed Income-3.79%7.58%11.23%-3.02%2.11%
      Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index-2.08%7.50%17.13%-4.43%2.46%
      Morningstar Category Avg. High Yield Bond-2.59%6.47%13.30%-4.01%1.11%
      Performance quoted represents past performance and does not guarantee future results.
      Important risk information can be found on the Portfolio tab.

       
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      Portfolio Composition
         
      Maturity DistributionFund
      0 - 1 Year1.5%
      1 - 3 Years6.1%
      3 - 5 Years20.9%
      5 - 10 Years61.0%
      10+ Years10.5%
      As of 03/31/19
      Quality DistributionFundBenchmark
      BBB2.8%0.0%
      BB25.5%45.7%
      B47.3%40.0%
      CCC22.7%13.2%
      CC to D0.1%0.8%
      Not Rated0.1%0.3%
      Committed Cash1.5%0.0%
      Sector WeightingsFund   Benchmark
      Energy15.9%14.0%
      Communications15.6%19.8%
      Financial Institutions15.4%10.0%
      Consumer Non-Cyclical13.1%13.3%
      Consumer Cyclical12.5%14.9%
      Capital Goods7.5%9.2%
      Basic Industry7.3%6.2%
      Technology6.2%7.6%
      Utilities2.7%2.3%
      Transportation1.7%1.4%
      Committed Cash1.5%0.0%
      Industrial Other0.6%1.3%
      DateHoldings File
      As of 03/31/19Insert Icon
      As of 12/31/18Insert Icon

      Fund Characteristics

      Number of Holdings197
      Portfolio Turnover95.52% (as of 03/31/18)
      Modified Duration†3.91 YRS
      Average Maturity6.92 YRS
      Weighted Average Coupon7.1%
      Income**$0.032696
      Dividend ScheduleMonthly
      Dividend Income Last Quarter$0.1118
      Capital Gain Income Last QuarterN/A
      BenchmarkBloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index
      Morningstar CategoryHigh 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.
      †Effective Duration: Effective Duration measures percent change in price for 100 basis point parallel shift.
      **Per share paid out March 25 with a record date of March 22. The amount shown represents dividends paid for net investment income and excludes distributions from capital gain income.
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          Bradley Camden, CFA<sup>&reg;</sup>

          Bradley Camden, CFA®

          Portfolio Manager

          Northern Core Bond Fund (NOCBX)
          Northern Fixed Income Fund (NOFIX)
          Northern High Yield Fixed Income Fund (NHFIX)
          Northern Short Bond Fund (BSBAX)

          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.

              .
              Eric Williams

              Eric Williams

              Portfolio Manager

              Northern High Yield Fixed Income Fund (NHFIX)

              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.

               

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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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