The Northern Institutional Core Bond Portfolio, Northern Institutional Short Bond Portfolio and Northern Institutional U.S. Treasury Index Portfolio were converted to the Northern Core Bond Fund, Northern Short Bond Fund and Northern U.S. Treasury Index Fund on November 16, 2012.
- The Fund conversions enable investors to invest in previously held Northern Institutional Funds at a lower minimum investment with an established performance history.
- The Northern Core Bond Fund (NOCBX) and Northern Short Bond Fund (BSBAX) seek to maximize total return (capital appreciation and income) consistent with reasonable risk.
- The Northern U.S. Treasury Index Fund (BTIAX) seeks to provide investment results approximating the performance of the Barclays U.S. Treasury Index.
- All three Funds are available at $2,500 minimum investment and are low cost (0.41%, 0.40% and 0.15% total net expense ratios1), respectively.
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.
Mortgage-Backed Securities Risk: Mortgage-backed investments involve risk of loss due to prepayments and, like any bond, due to default. Because of the sensitivity of mortgage-related securities to changes in interest rates, the Fund’s performance may be more volatile than if it did not hold these securities.
Index Fund Risk: The performance of the Fund is expected to be lower than that of the Index because of Fund fees and expenses. It is important to remember that there are risks associated with investing in specific companies.
U.S. Government Guarantee: U.S. Government guarantees apply only to the underlying securities of a Fund’s portfolio and not the Fund’s shares.
1 The Net Expense Ratio, as reported in the most recent prospectus, includes contractual expense reimbursements that, if not extended, will end on November 30, 2013.