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Fixed Income Municipal

Tax-Exempt

 
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TickerNAV AS OF 05/26/23
NOTEX$9.46 $-0.01 Arrow Down Icon
 
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  • Snapshot
  • Performance
  • Portfolio
  • Management
  • Fund Documents
Snapshot
For those investors who favor 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. Our approach is to invest in a broad range of investment-grade municipal instruments with an average maturity of 10 and 30 years. We believe a well-managed portfolio of longer-term municipal securities may increase investors' current tax-free income.
Fund Objective
Current Tax-Exempt Income
Fund Strategy
  • Maintain a dollar-weighted average maturity range, under normal circumstances, between 10 and 30 years. This segment of the municipal market, while potentially more volatile, also may provide higher yields than shorter-term securities.
  • 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
”Risk/Reward
      Important risk information can be found on the Portfolio tab.

       
      CUSIP665162863
      YTD Total Return1.19% (as of 05/26/23)
      Distribution Rate*3.70% (as of 05/26/23)
      30-Day SEC Yield w/ Waivers*3.07% (as of 03/31/19)
      30-Day SEC Yield w/o Waivers*3.04% (as of 03/31/19)
      Inception Date04/01/94
      Total Net Assets$1,164,772,646 (as of 03/31/19)
      Tax-Equivalent Distribution Rate*6.26% (as of 05/26/23)
      Tax-Equivalent 30-Day SEC Yield*5.18% (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.
      Tax-Exempt1.91%2.86%2.86%4.78%2.38%3.70%4.66%4.93%
      Bloomberg Barclays U.S. Municipal Index1.58%2.90%2.90%5.38%2.71%3.73%4.72%4.68%
      Morningstar Cat. Avg.
      Muni National Long      		1.81%3.27%3.27%4.96%2.55%3.88%5.05%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‡
      Tax-Exempt0.49%0.45%
      ‡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
      Tax-Exempt0.65%4.83%0.40%3.69%10.47%
      Bloomberg Barclays U.S. Municipal Index1.28%5.45%0.25%3.30%9.05%
      Morningstar Category Avg. Muni National Long0.27%5.71%0.00%3.07%10.58%
      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 Year14.4%
      2 - 5 Years5.1%
      6 - 10 Years5.5%
      11 - 20 Years28.6%
      21 - 30 Years43.4%
      31+ Years3.0%
      As of 03/31/19
      Quality DistributionFundBenchmark
      AAA19.5%15.5%
      AA53.7%51.1%
      A15.1%25.0%
      BBB1.6%8.4%
      SP1+/MIG13.6%0.0%
      SP1/MIG10.2%0.0%
      Not Rated0.1%0.0%
      Committed Cash6.2%0.0%
      Sector WeightingsFundBenchmark
      Revenue61.7%66.8%
      General Obligation21.8%27.8%
      Government-Backed7.3%5.2%
      Committed Cash6.2%0.0%
      Insured3.0%0.3%
      DateHoldings File
      As of 03/31/19Insert Icon
      As of 12/31/18Insert Icon

      Fund Characteristics

      Number of Holdings331
      Portfolio Turnover103.25% (as of 03/31/18)
      Modified Duration†5.16 YRS
      Average Maturity16.53 YRS
      Weighted Average Coupon4.39%
      Income**$0.027233
      Dividend ScheduleMonthly
      Dividend Income Last Quarter$0.0920
      Capital Gain Income Last QuarterN/A
      BenchmarkBloomberg Barclays U.S. Municipal Index
      Morningstar CategoryMuni National Long
      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 U.S. Municipal Index is an unmanaged index of investment grade (Baa3 or better) tax-exempt 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.
      .
      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.

          .
          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.

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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.

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