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Fixed Income Municipal

Intermediate Tax-Exempt

TickerNAV AS OF 05/26/23
NOITX$9.66 $-0.01 Arrow Down Icon

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You may find this Fund ideal if you are an investor who favors current income exempt from regular federal income tax. It is particularly well suited for income-oriented investors in higher tax brackets willing to assume some risk. Income from the Fund may be subject to federal alternative minimum tax (AMT), state and local taxes. We concentrate on producing conservative tax-free income while managing portfolio risk. We believe investing in a broad range of municipal securities with intermediate-term maturities can provide greater stability of principal than is generally available from longer-term, higher-yielding bonds. The Fund is "non-diversified" under the Investment Company Act of 1940, and may invest more of its assets in fewer issuers than "diversified" mutual funds.
Fund Objective
Current Tax-Exempt Income
Fund Strategy
  • Maintain a dollar-weighted average maturity range, under normal circumstances, between three and 10 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 current income exempt from regular federal 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. Income from the Fund may be subject to federal alternative minimum tax (AMT), state and local taxes.
Risk/Reward Potential
Important risk information can be found on the Portfolio tab.


YTD Total Return0.92% (as of 05/26/23)
Distribution Rate*2.98% (as of 05/26/23)
30-Day SEC Yield w/ Waivers*2.48% (as of 03/31/19)
30-Day SEC Yield w/o Waivers*2.45% (as of 03/31/19)
Inception Date04/01/94
Total Net Assets$2,773,278,135 (as of 03/31/19)
Tax-Equivalent Distribution Rate*5.03% (as of 05/26/23)
Tax-Equivalent 30-Day SEC Yield*4.20% (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
    Month   3-Month     YTD  1-Year  3-Year  5-Year  10-Year Since
Intermediate Tax-Exempt1.37%2.49%2.49%4.47%1.89%2.82%3.65%4.12%
Bloomberg Barclays Intermediate
Municipal Bond Index
Morningstar Cat. Avg.
Muni National Intermediate
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
Intermediate Tax-Exempt0.49%0.46%
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
Intermediate Tax-Exempt0.81%3.94%-0.09%2.78%6.85%
Bloomberg Barclays Intermediate Municipal Bond Index1.57%4.70%-0.45%3.28%6.39%
Morningstar Category Avg. Muni National Intermediate0.78%4.61%-0.20%2.50%6.77%
Performance quoted represents past performance and does not guarantee future results.
Important risk information can be found on the Portfolio tab.


Portfolio Composition
Maturity DistributionFund
0 - 1 Year22.7%
2 - 5 Years11.3%
6 - 10 Years18.4%
11 - 20 Years30.4%
21 - 30 Years16.8%
31+ Years0.4%
As of 03/31/19
Quality DistributionFundBenchmark
Not Rated4.6%0.0%
Committed Cash7.0%0.0%
Sector WeightingsFundBenchmark
General Obligation28.4%35.5%
Committed Cash7.3%0.0%
DateHoldings File
As of 03/31/19Insert Icon
As of 12/31/18Insert Icon

Fund Characteristics

Number of Holdings494
Portfolio Turnover120.62% (as of 03/31/18)
Modified Duration4.20 YRS
Average Maturity10.29 YRS
Weighted Average Coupon4.13%
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.0717
Capital Gain Income Last QuarterN/A
BenchmarkBloomberg Barclays Intermediate Municipal Bond Index
Morningstar CategoryMuni National 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.
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.
Bloomberg Barclays Intermediate Municipal Bond Index is an unmanaged index of investment grade (Baa3 or better) tax-exempt bonds with maturities of five to 10 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 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.
Timothy T.A. McGregor, CFA<sup>&reg;</sup>

Timothy T.A. McGregor, CFA®

Portfolio Manager

Northern Intermediate Tax-Exempt Fund (NOITX)
Northern Tax-Exempt Fund (NOTEX)

With Northern Trust Since 1989
Began Career in 1985

Timothy T.A. McGregor, Senior Vice President of Northern Trust, co-manages the Northern Intermediate Tax-Exempt Fund and Northern Tax-Exempt Fund.

Mr. McGregor began his career at Northern Trust in 1989 and has held positions as an investment manager representative and tax-exempt fixed income manager for high-net-worth individuals. He has managed the Northern Tax-Exempt Fund since the beginning of 1998 and Northern Intermediate Tax-Exempt Fund since the end of 2000.

Mr. McGregor received a B.S. in economics with a minor in East Asian studies from Indiana University. He is an active CFA® charterholder.

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

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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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