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Fixed Income Municipal

Arizona Tax-Exempt

 
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TickerNAV AS OF 05/26/23
NOAZX$9.52  $-0.01 Arrow Down Icon
 
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  • Performance
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  • Management
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Snapshot
For those investors who favor high current income exempt from federal income and who is looking for an investment intended to be exempt from Arizona state personal income tax, than this may be the right Fund for you. It is particularly well suited for income-oriented investors in higher tax brackets willing to assume 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 knowledgeable investment team concentrates on investments in Arizona state-specific, investment-grade municipal bonds which are exempt from federal income tax and Arizona state personal income tax while maintaining an average maturity between 10 and 30 years.
Fund Objective
Current Tax-Exempt Income
Fund Strategy
  • Concentrate on investments in Arizona state-specific, investment-grade municipal bonds which are exempt from federal income tax and Arizona state personal income tax while maintaining an average maturity, under normal circumstances, between 10 and 30 years.
  • Invest in high-quality securities, primarily investment-grade debt.
  • Select investments on the basis of their relative value with a focus on total return.
Investor Profile
If you are an investor who favors high current income exempt from federal income tax and who is looking for an investment intended to be exempt from Arizona state personal income tax, this Fund may be ideal for you. It is particularly well suited for income-oriented investors in higher tax brackets willing to assume 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.
Risk/Reward Potential
”Risk/Reward
Overall Morningstar RatingTM
”Morningstar

Among 139 municipal single state intermediate funds derived from a weighted average of the fund's 3-, 5- and 10-year risk-adjusted returns as of 3/31/19.

Arizona Tax-Exempt received 5 stars for the 3-year rating among 139 municipal single state intermediate funds, 5 stars for the 5-year rating among 138 funds and 4 stars for the 10-year rating among 117 funds.

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.
      Important risk information can be found on the Portfolio tab.

       
      CUSIP665162764
      YTD Total Return0.71% (as of 05/26/23)
      Distribution Rate*3.54% (as of 05/26/23)
      30-Day SEC Yield w/ Waivers*2.47% (as of 03/31/19)
      30-Day SEC Yield w/o Waivers*2.33% (as of 03/31/19)
      Inception Date10/01/99
      Total Net Assets$118,543,136 (as of 03/31/19)
      Tax-Equivalent Distribution Rate*6.47% (as of 05/26/23)
      Tax-Equivalent 30-Day SEC Yield*4.52% (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.
      Arizona Tax-Exempt1.31%2.60%2.60%5.15%2.29%3.42%4.43%4.54%
      Bloomberg Barclays Arizona Municipal
      Bond Index      		1.51%2.80%2.80%5.09%2.49%3.61%4.72%4.16%
      Morningstar Cat. Avg.
      Muni Single State Intermediate      		1.08%2.19%2.19%3.98%1.62%2.64%3.53%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 0.45%. 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.

      Annual Expense Ratios

        
       Gross Expense RatioNet Expense Ratio‡
      Arizona Tax-Exempt0.61%0.47%
      ‡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
      Arizona Tax-Exempt1.12%4.77%0.20%3.09%8.81%
      Bloomberg Barclays Arizona Municipal Bond Index1.09%5.01%0.38%3.25%8.94%
      Morningstar Category Avg. Muni Single State Intermediate0.66%3.59%-0.28%2.36%6.85%
      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 Year10.5%
      2 - 5 Years8.3%
      6 - 10 Years22.9%
      11 - 20 Years44.5%
      21 - 30 Years13.8%
      As of 03/31/19
      Quality DistributionFundBenchmark
      AAA20.1%7.7%
      AA73.8%68.3%
      A4.6%17.5%
      BBB0.0%6.5%
      Committed Cash1.5%0.0%
      Sector WeightingsFundBenchmark
      Revenue51.0%83.3%
      General Obligation24.2%10.2%
      Government-Backed13.8%6.6%
      Insured9.5%0.0%
      Committed Cash1.5%0.0%
      DateHoldings File
      As of 03/31/19Icon
      As of 12/31/18Insert Icon

      Fund Characteristics

      Number of Holdings89
      Portfolio Turnover85.89% (as of 03/31/18)
      Modified Duration†5.09 YRS
      Average Maturity11.65 YRS
      Weighted Average Coupon4.79%
      Income**$0.024900
      Dividend ScheduleMonthly
      Dividend Income Last Quarter$0.0845
      Capital Gain Income Last QuarterN/A
      BenchmarkBloomberg Barclays Arizona Municipal Bond Index
      Morningstar CategoryMuni Single State Intermediate
      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 Arizona Municipal Bond Index is an unmanaged index of investment grade (Baa3 or better) tax-exempt Arizona 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.
      †Modified Duration: Duration is a measure of a bond fund's sensitivity to changes in interest rates. The Fund's duration is calculated using the modified duration formula.
      **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.
      .
      Fred A. Azar

      Fred A. Azar

      Portfolio Manager

      Northern Arizona Tax-Exempt Fund (NOAZX)
      Northern California Intermediate Tax-Exempt Fund (NCITX)
      Northern California Tax-Exempt Fund (NCATX)
      Northern Tax-Exempt Fund (NOTEX)

      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.

          .
          Nate Miller

          Nate Miller

          Portfolio Manager

          Northern Arizona Tax-Exempt Fund (NOAZX)
          Intermediate Tax-Exempt Fund (NOITX)

          With Northern Trust Since 1995
          Began Career in 1995

          Nate Miller is a Vice President for Northern Trust. Mr. Miller is a Portfolio Manager in the Municipal Fixed Income Group of Northern Trust Global Investments and is responsible for the management of a number of individual municipal bond portfolios. He currently co-manages the Northern Arizona Tax-Exempt Fund and Northern Intermediate Tax-Exempt Fund.

          Mr. Miller joined the Northern Trust in 1995 as an IMLG representative in Worldwide Operations and Technology. He relocated to Arizona in 1996 and worked as a Relationship Manager in the Corporate and Institutional Administration Group. He relocated back to Chicago in October 2003 and started as a Municipal Bond Trader for the Fixed Income Group within Northern Trust Global Investments (NTGI) prior to being named a Portfolio Manager in June 2005.

          Mr. Miller received a B.S. in finance from the University of Illinois at Champaign-Urbana in 1994 and also studied in the Certified Employee Benefits Specialist program (CEBS) via the Wharton School of Business.

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              Not FDIC insured | May lose value | No bank guarantee

              View investment terms definitions

              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.

              ©2019 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.