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Overview

How It Works

Invest primarily in high-yielding, lower-rated (BB or below) corporate securities commonly referred to as "non-investment grade" or high-yield securities. Take steps to properly manage downside risk by maintaining a broadly diversified portfolio. Rely on extensive credit research capabilities to manage risk and minimize defaults. Select investments on the basis of their relative value.

This Fund may be suitable for long-term investors with above average tolerance for risk seeking high current income and the potential for capital appreciation or additional portfolio diversification. High-yield securities entail special risks, including attractive share price fluctuations.
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Fund Facts

*Includes contractual expense reimbursements that, if not extended, will end on July 31, 2024.

Performance

Effective February 1, 2022, the benchmark for the Fund changed from the Bloomberg Municipal Bond 65% Investment Grade / 35% High Yield Total Return Index (formerly known as the Bloomberg Barclays Municipal Bond 65% Investment Grade / 35% High Yield Total Return Index) to the Bloomberg Municipal Bond 60% High Yield / 40% Investment Grade Index to better align the Fund’s benchmark with the Fund’s portfolio objective. The Annualized Since Inception Total Return for the Bloomberg Municipal Bond 60% High Yield / 40% Investment Grade Index is not available as the benchmark inception date is October 17, 2002, which is after the Fund’s inception date of December 31, 1998.

 

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. Performance data current to the most recent month-end can also be obtained by calling 800-595-9111

 

Northern Trust Investments, Inc. (“NTI”) has contractually agreed to reimburse a portion of the operating expenses of the Fund so that after such reimbursement the Total Annual Fund Operating Expenses of the Fund (excluding (i) acquired fund fees and expenses; (ii) the compensation paid to each Independent Trustee of the Trust; (iii) expenses of third party consultants engaged by the Board of Trustees; (iv) membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; (v) expenses in connection with the negotiation and renewal of the revolving credit facility; and (vi) extraordinary expenses and interest) do not exceed 0.45%. This contractual limitation may not be terminated before July 31, 2024 without the approval of the Board of Trustees.

 

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.

 

In the absence of fee waivers, 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. The returns for the Morningstar or the iMoneyNet Category Average represents a universe of funds with similar objectives.

Distributions

*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 and return of capital. 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. Negative 30-Day SEC Yield results when accrued expenses of the past 30 days exceed the income collected during the past 30 days. The 30-day SEC yield w/o waivers represents the annualization of the Fund's net investment income, excluding capital gain income and excludes contractual expense reimbursements, resulting in a lower yield. Negative 30-Day SEC Yield results when accrued expenses of the past 30 days exceed the income collected during the past 30 days. 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. The 30-Day SEC Tax Equivalent yield represents the annualization of the Fund's net investment income, excluding capital gain income. The rate incorporates the effect of the applicable state tax (as noted in the fund name) for national municipal funds.

Characteristics

All data is as of date indicated and subject to change.

Benchmarks 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.

Exposure Breakdowns

Quality Distribution: Credit quality ratings are based on Moody’s, Standard & Poors and Fitch ratings. If ratings from all three rating agencies disagree, the security is assigned the middle rating. If two of the three agree, the security is assigned the rating from those two. If two of these rating agencies have assigned different ratings, the security is assigned the lower rating from those two. If none of these three rating agencies have assigned a rating, the security is assigned a rating of not rated. The ratings, expressed in Standard & Poors nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, when applicable, are expressed in Standard & Poors nomenclature, range from A-1 (obligors 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.

Meet the Team

Our investment team seeks to compensate investors for risk and deliver better outcomes in all market environments.

Northern Trust’s 58 fixed income investment professionals average 21 years industry experience and are located across North America, Europe, and Asia.

Adam Shane, CFA®

Portfolio ManagerRead Bio

Tim Blair

Portfolio ManagerRead Bio

Literature

Fund Documents

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