Northern Trust’s Ultra-Short Fixed Income Funds Surpass $3 Billion in Assets
Milestone reached as market dynamics lead investors to rethink short term
CHICAGO -- February 11, 2013
As investors search for yield beyond traditional money market funds, Northern
Funds’ Ultra-Short Fixed Income Fund (NUSFX) and Tax-Advantaged Ultra-Short
Fixed Income Fund (NTAUX) have recently drawn assets from investors seeking
opportunities for their investments that cover longer term spending needs.
Northern Trust, which sponsors and manages the two funds, announced today that
together they have exceeded $3 billion in assets.
“The Northern Funds Ultra-Short Funds have exhibited strong asset growth since
inception, which validates our view that clients value a consistent, proven
investment process in a total return product that is different from a
traditional money market fund,” said Colin Robertson, Managing Director of
Fixed Income for Northern Trust. “As clients rethink their investment
strategies in this low interest rate environment, we expect our Ultra-Short
funds and liquidity management ETF strategies will continue to acquire assets
and gain significant traction in the marketplace.”
Launched in June 2009, the funds have a highly focused strategy that draws on
a legacy of more than 25 years of experience with risk-controlled ultra-short
duration strategies. The funds are designed to take modest interest rate risk,
credit risk and liquidity risk compared to money market funds.
The two funds have slightly higher volatility and lower liquidity than money
market funds and seek to offer less volatility than intermediate and
longer-duration fixed income securities.
While both seek to yield more than a money market fund with potential for
capital appreciation, the Tax Advantaged Ultra-Short Fund seeks to provide
investors in higher tax brackets more after tax yield by investing in
“The investment process for both funds combines a top-down macroeconomic view
with intense bottom-up credit research in an effort to generate yield with
moderate risk,” said fund manager Carol Sullivan of Northern Trust. “We
maintain well-diversified portfolios of investment grade securities with a
neutral target duration of one year, plus the flexibility to shorten or extend
the portfolio up to another six months depending upon our macro forecasts.
This flexibility helps us to position the two Ultra-Short Funds in a way that
captures opportunity but also provides some protection in a rising rate
The minimum investment required for each fund is $2,500. The expense ratio for
Northern Ultra-Short Fixed Income Fund is .26 or $26 for every 10,000
invested. The expense ratio for Northern Tax-Advantaged Ultra-Short Fixed
Income Fund is .25%. According to Morningstar, the average expense ratio for
Ultra-Short Funds is .66%.
Please note that the Funds are not money market funds, which strive to
maintain a $1.00 net asset value. The share price of the ultra-short funds
fluctuate with their returns and are designed to complement the cash portion
of an investor’s portfolio, not replace it. An investment in either fund could
result in a loss of principal.
About Northern Trust
Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of investment
management, asset and fund administration, banking solutions and fiduciary
services for corporations, institutions and affluent individuals worldwide.
Northern Trust, a financial holding company based in Chicago, has offices in
18 U.S. states and 16 international locations in North America, Europe, the
Middle East and the Asia-Pacific region. As of December 31, 2012, Northern
Trust had assets under custody of US$4.8 trillion, and assets under investment
management of US$758.9 billion. For more than 120 years, Northern Trust has
earned distinction as an industry leader in combining exceptional service and
expertise with innovative products and technology. For more information, visit
www.northerntrust.com or follow us on Twitter @NorthernTrust.
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.
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.
Northern Funds are distributed by Northern Funds Distributors, LLC,not
affiliated with Northern Trust.
Northern Trust Corporation
Amy Bickers, 312-444-3097
John O’Connell, 312 444-3288
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