Global Tactical Asset Allocation
Peter J. Flood

Peter J. Flood

With Northern Trust since 1979
Began Career in 1979


Daniel J. Phillips, CFA<SUP>&#174;</SUP>

Daniel J. Phillips, CFA®

With Northern Trust since 2005
Began Career in 2005


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For those long-term investors looking to diversify your investment among various asset classes (stocks, bonds, commodities, and other) both domestic and foreign. The Fund seeks to provide long-term capital appreciation and current income. The Fund invests primarily in shares of underlying mutual funds, with its asset allocation model adjusted based on changing market conditions. The Fund will invest significantly in companies that are represented in diversified foreign indices. Dividends, if any, are declared and paid quarterly. Capital gains, if any, are distributed at least annually.

Fund Objective: Capital Appreciation and Current Income
Ticker SymbolShare Price Change
Daily as of 07/21/14
YTD Total Return
Daily as of 07/21/14
BBALX$ -0.014.56%
asset allocation
Asset Class Investment Vehicle Holdings Weight
U.S. Equity - Large, Mid, Small FlexShares Morningstar US Market Factor TILT Index Fund 28.1
Non U.S. Equity - Developed FlexShares Morningstar Developing EX-US Market Factor TILT Index Fund 19.8
Non U.S. Equity - Emerging Markets FlexShares Morningstar Emerging Market Factor TILT Index Fund 6.0
Global Real Estate NF Global Real Estate Index Fund 2.9
U.S. Bonds - High Yield NF High Yield Fixed Income Fund 12.8
U.S. Bonds - Intermediate NF Bond Index Fund 10.4
U.S. Bonds - Inflation Protected FlexShares iBoxx 5-Year Target Duration TIPS Index Fund 4.0
U.S. Bonds - Short NF Short Bond Fund 10.3
Commodities/Natural Resources FlexShares Morningstar Global Upstream Natural Resources Index Fund 2.0
Global Infrastructure FlexShares STOXX Global Broad Infrastructure Index Fund 3.0
Cash NIF Diversified Assets Portfolio 0.7
Total   100.0%
Updated Daily as of July 21, 2014
SymbolBBALXYTD Total Return4.56%
CUSIP665162392Inception Date7/1/1993
Share Price$ 12.57 Updated Monthly as of June 30, 2014
Share Price Change$ -0.01Total Net Assets$86,265,835
Total Returns for Quarter Ended June 30, 2014
 Northern Global Tactical Asset Allocation FundAsset Allocation Blend IndexInternal Reference BenchmarkMorningstar Moderate Allocation Category Average
Month1.77%1.15%1.34%1.52%
3-Month3.60%3.84%4.04%3.60%
Year to Date4.97%5.34%15.49%5.41%
1 Year15.45%15.32%14.12%16.03%
3-Year Avg. Annual8.72%7.86%7.55%9.61%
5-Year Avg. Annual11.06%10.74%11.06%12.57%
10-Year Avg. Annual5.57%6.81%N/A6.44%
Avg. Annual
Since Inception
6.65%7.11%N/A 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.

The Advisor has agreed to reimburse certain expenses of the Fund (excluding acquired fund fees and expenses; a portion of the compensation paid to each Trustee who is not an officer, director or employee of Northern Trust Corporation or its subsidiaries; expenses related to third-party consultants engaged by the Board of Trustees of the Trust; membership dues paid to the Investment Company Institute and Mutual Fund Directors Forum; extraordinary expenses; and interest, if any) to the extent the "Total Annual Fund Operating Expenses" exceed 0.25%. The contractual limitation may not be terminated before July 31, 2015 without the approval of the Board of Trustees. 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.
Disclosure
 Gross Expense RatioNet Expense Ratio
Global Tactical Asset Allocation
(BBALX)
0.87%0.66%
Includes contractual expense reimbursements that, if not extended, will end on
July 31, 2015.
 20132012201120102009
Global Tactical Asset Allocation11.58%14.02%-0.01%10.80%20.14%
Asset Allocation Blend Index12.35%13.09%1.28%13.05%23.59%
Internal Reference Benchmark9.06%12.37%-0.05%12.19%24.24%
Morningstar Category Avg.
Moderate Allocation
16.48%11.72%-0.11%11.83%24.13%
Performance quoted represents past performance and does not guarantee future results.
Number of Holdings11
Portfolio Turnover23.95% (as of 3/31/14)
Dividend ScheduleQuarterly
Dividend Income Last QuarterN/A
Capital Gain Income Last QuarterN/A
BenchmarkAsset Allocation Blend Index
Morningstar CategoryModerate Allocation
Asset Allocation 
Stocks53.7%
Bonds37.4%
Real Assets7.9%
Cash1.0%
TOTAL100%
Holdings    Fund
FlexShares Morningstar US Market Factor TILT Index Fund    27.8%
FlexShares Morningstar Developing Ex-US Market Factor TILT Index Fund    19.8%
NF High Yield Fixed Income Fund    12.8%
NF Bond Index Fund    10.3%
NF Short Bond Fund    10.3%
FlexShares Morningstar Emerging Market Factor TILT Index Fund    6.0%
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund    4.0%
NF Global Real Estate Index Fund    3.0%
FlexShares STOXX Global Broad Infrastructure Index Fund    3.0%
FlexShares Morningstar Global Upstream Natural Resources Index Fund    2.0%
NIF Diversified Assets Portfolio    1.0%
% of Portfolio    100.0%
Sector Weightings
(Equity Holdings)
FundBenchmark
Financials24.0%
Industrials13.7%
Consumer Discretionary11.7%
Information Technology10.9%
Energy8.6%
Health Care8.5%
Materials7.9%
Consumer Staples6.9%
Utilities4.3%
Telecommunication Services3.5%
TOTAL100.0%
All data is as of date indicated and subject to change.
as of May 31, 2014
 Northern Global Tactical Asset Allocation FundAsset Allocation Blend Index
Beta1.041.00
Up Market Capture102.44100.00
Down Market Capture97.89100.00
Information Ratio0.310.00
*Above risk characteristics are based on a 3-year time period
Equity Risk: Equity securities (stocks) are more volatile and carry more risk than other forms of investments, including investments in high-grade fixed income securities. The net asset value per share of this Fund will fluctuate as the value of the securities in the portfolio changes.

Asset Allocation Risk: An asset allocation strategy does not guarantee any specific result or profit nor protect against a loss.

Interest Rate Risk: Increases in prevailing interest rates will cause fixed-income securities, including convertible securities, held by the Fund to decline in value.

International Risk: International investing involves increased risk and volatility.

Asset Allocation Blend Index consists of 60% MSCI All Country World Index and 40% Barclays U.S. Aggregate Bond Index. It is not possible to invest directly in an index.

Internal Reference Benchmark represents the strategic asset allocation weights assigned annually by the Investment Policy Committee — the baseline from which the portfolio managers tactically allocate within the fund. As of January 1, 2013, the benchmark consists of 31% Barclays U.S. Aggregate Bond Index, 21% MSCI U.S. IMI, 13% MSCI World ex. USA IMI, 9% Barclays U.S. Corporate High Yield 2% Issuer Capped, 9% MSCI Emerging Markets IMI, 5% Barclays EM Local Currency Government Diversified Index, 4% S&P Global Infrastructure Index, 2% Barclays U.S. TIPS Index, 2% FTSE EPRA/NAREIT Global Index, 2% iMoneyNet Fund Avg. – First Tier Institutional, 2% Morningstar Global Upstream Natural Resources Index. It is not possible to invest directly in an index.

Barclays U.S. Aggregate Bond Index is an unmanaged index of prices of U.S. dollar-denominated, fixed rate, taxable, investment-grade fixed income securities with remaining maturities of one year and longer. It is not possible to invest directly in an index.

Barclays Emerging Markets Local Currency Government Diversified Index measures the performance of fixed-rate local currency sovereign debt of emerging market countries. The Index includes government bonds issued by countries outside the United States, in local currencies, that have a remaining maturity of one year or more and are rated B3/B-/B- or higher. It is not possible to invest directly in an index.

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 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.

Barclays U.S. Treasury Inflation Protected Securities (TIPS) Index is a rules-based, market value-weighted index that tracks inflation-protected securities issued by the U.S. Treasury. It is not possible to invest directly in an index.

FTSE EPRA/NAREIT Global Index is a free float, market capitalization weighted real estate index designed to represent publicly traded equity REITs and listed property companies in 36 countries worldwide, covering both the developed and emerging markets. It is not possible to invest directly in an index.

iMoneyNet Fund Avg. – First Tier Institutional Category includes only non-government institutional funds that also are not holding any second tier securities. Portfolio holdings of first tier funds include U.S. Treasury, U.S. other, repos, time deposits, domestic bank obligations, foreign bank obligations, first tier CP, floating rate notes and asset-backed commercial paper. It is not possible to invest directly in an index.

Morningstar Global Upstream Natural Resources Index measures the performance of stocks issued by companies that have significant business operations in the ownership, management and/or production of natural resources in energy, agriculture, precious or industrial metals, timber and water resources sectors as defined by Morningstar’s industry classification standards. Individual stock weights as well as category and regional exposure are capped to provide diversified exposure. It is not possible to invest directly in an index.

MSCI All Country World Index is a free float-adjusted market capitalization index that is designed to measure the equity performance of large and mid cap securities in the global developed and emerging markets. It is not possible to invest directly in an index.

MSCI Emerging Markets Investable Markets Index (IMI) is a free float-adjusted market capitalization index that is designed to measure equity market performance of large, mid, and small cap securities in the global emerging markets. It is not possible to invest directly in an index.

MSCI United States Investable Markets Index (IMI) is a free float-adjusted market capitalization index that is designed to measure equity market performance of large, mid, and small cap securities of the U.S. market. It is not possible to invest directly in an index.

MSCI World ex. USA Investable Markets Index (IMI) is a free float-adjusted market capitalization index that is designed to measure the equity performance of large, mid, and small cap securities in developed markets, excluding the USA. It is not possible to invest directly in an index.

S&P Global Infrastructure Index provides liquid and tradable exposure to 75 companies from around the world that represent the listed infrastructure universe. The index has balanced weights across three distinct infrastructure clusters: Utilities, Transportation, and Energy. It is not possible to invest directly in an index.

 
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Not FDIC insured | May lose value | No bank guarantee

*View investment term 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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