Multi-Manager High Yield Opportunity
Jessica K. Hart

Jessica K. Hart

With Northern Trust since 2000
Began Career in 1999

Christopher E. Vella, CFA<SUP>&#174;</SUP>, CIO

Christopher E. Vella, CFA®, CIO

With Northern Trust since 2004
Began Career in 1993

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The Multi-Manager High Yield Opportunity Fund is designed to provide competitive performance in a broad range of market environments. The highly diversified, opportunistic Fund can invest in high yield corporate securities as well as foreign bonds, emerging markets, bank loans, convertibles, preferreds, mortgages, REITs, equities, munis and closed-end high yield funds. Our approach blends specialist managers from a broad universe of investment managers into a single fund. In an effort to provide the best combination of risk and return, the Fund employs two investment styles intended to complement each other: a relative-value strategy, which will provide more consistent characteristics to the traditional high yield sectors, and an opportunistic high yield strategy, which will provide exposure to out-of-benchmark sectors.
Fund Objective: Total Return

Redemption Fee: 2% on shares sold or exchanged within 30 days of purchase
Ticker SymbolDistribution Rate
Daily as of 08/01/14
30-Day SEC Yield
Monthly as of June 30, 2014
sub adviser heading

Managers and Allocations subject to change at any time.


Neuberger Berman Fixed Income LLC 40% Traditional high-yield strategy focusing on credit selection within the benchmark sectors.
Loomis, Sayles & Company, L.P. 30% Opportunistic high-yield strategy employing a bottom-up investment approach focused on attractively priced credits. The portfolio will provide exposure to out-of-benchmark sectors. The portfolio is designed to provide competitive performance in a broad range of market environments.
DDJ Capital Management, LLC 30% A concentrated, bottom-up oriented strategy that specifically focuses on the middle market segment of the high yield universe in addition to leveraged loans.
Updated Daily as of August 1, 2014
SymbolNMHYX Distribution Rate*5.04%
CUSIP665162442 Tax-Equivalent Distribution Rate* N/A
Share Price$ 10.59 Updated Monthly as of June 30, 2014
Share Price Change$ -0.06Total Net Assets$734,273,939
YTD Total Return3.29% Updated Monthly as of June 30, 2014
Inception Date9/23/200930-Day SEC
30-Day SEC
Total Returns for Quarter Ended June 30, 2014
 Multi-Manager High Yield Opportunity FundBofA Merrill Lynch U.S. High Yield Master II Constrained IndexMorningstar High Yield Bond Category Average
Year to Date5.39%5.64%4.83%
1 Year11.21%11.79%10.62%
3-Year Avg. Annual8.33%9.25%8.24%
Avg. Annual
Since Inception
9.71%11.42% 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 0.90%. 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.
 Gross Expense RatioNet Expense Ratio
Multi-Manager High Yield Opportunity
Includes contractual expense reimbursements that, if not extended, will end on
July 31, 2015.
Multi-Manager High Yield Opportunity6.67%16.65%1.41%12.81%
BofA Merrill Lynch U.S. High Yield Master II Constrained Index7.41%15.55%4.37%15.05%
Morningstar Category Avg.
High Yield Bond
Performance quoted represents past performance and does not guarantee future results.
Number of Holdings634
Average Duration†4.0 YRS
Average Maturity5.0 YRS
Weighted Average Coupon6.56%
Yield to Maturity5.56%
Dividend ScheduleMonthly
Dividend Income Last Quarter$0.1412
Capital Gain Income Last QuarterN/A
BenchmarkBofA Merrill Lynch U.S. High Yield Master II Constrained Index
Morningstar CategoryHigh Yield Bond
Maturity Distribution    Fund
0 - 3 Years    7.0%
3 - 5 Years    17.2%
5 - 7 Years    33.3%
7 - 10 Years    29.6%
10+ Years    12.9%
TOTAL 100.0%
Quality DistributionFundBenchmark
AAA0.3% 0.0%
AA0.1% 0.0%
A1.8% 0.0%
BBB2.0% 0.6%
BB25.2% 37.6%
B39.5% 42.2%
CCC or below26.1% 19.5%
Not Rated4.6% 0.1%
Cash Equivalents0.4% 0.0%
TOTAL100.0% 100.0%
Sector WeightingsFundBenchmark
Bank Loans4.0%0.0%
Short Term3.0%0.0%
Emerging Markets Debt2.0%0.1%
Residential Mortgage-Backed Securities1.8%0.0%
Commercial Mortgage-Backed Securities0.5%0.0%
TOTAL100.0% 100.0%
All data is as of date indicated and is 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.

High Yield Risk: Although a high yield fund’s yield may be higher than that of fixed income funds that purchase higher-rated securities, the potentially higher yield is a function of the greater risk that a high yield fund’s share price will decline.

BofA Merrill Lynch U.S. High Yield Master II Constrained Index contains all securities in the BofA Merrill Lynch U.S. High Yield Master II Index, but caps issuer based on their current amount outstanding, provided the total allocation to an individual issuer does not exceed 2%. The Index tracks the performance of US dollar denominated below investment grade corporate debt publicly issued in the US domestic market. It is not possible to invest directly in an index.

Quality Distribution: Credit quality ratings are compiled from two external rating agencies: Moody's and Standard & Poor's. We report the lowest rating of the two in the event there are any differences between them. If neither of these 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 A-3 (exhibits adequate protection parameters). Government securities consist of obligations issued or guaranteed by the U.S. Treasury. 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.
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Not FDIC insured | May lose value | No bank guarantee

†Northern tax-exempt fixed income funds' and Northern High Yield Fixed Income Fund's Average Duration is calculated using the modified duration formula. Other Northern fixed income funds show the option-adjusted duration. Duration is a measure of a bond fund's sensitivity to changes in interest rates.

*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 and tax-equivalent 30-day SEC yield represent 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 47.9% for Arizona, 55.7% for California and 43.4% for national municipal funds.

**Per share paid out June 24 with a record date of June 23. The amount shown represents dividends paid for net investment income and excludes distributions from capital gain income.

*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.

©2014 Northern Funds | Northern Funds are distributed by Northern Funds Distributors, LLC, not affiliated with Northern Trust.