Northern Funds

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Northern Trust
Northern Trust Logo.png

Start date: 1869
Founder: Byron Loflin Smith
Location: Chicago
State: Illinois
Key people:Frederick H. Waddell, CEO
AUM: $716.5 billion

Northern Funds are no-load mutual funds managed by the the Northern Trust Company. As an asset manager, Northern Trust also manages Collective Investment Trusts (CITs) which are primarily used in corporate pension funds, such as 401-K plans. The company offers many additional services to very wealthy families, including trust services [1], philanthropic services [2] and family office services [3]

Boglehead-style investing at Northern

The building blocks of Boglehead-style investing are low-expense-ratio index mutual funds and/or ETFs. Vanguard fans would suggest that Vanguard has the best and most complete lineup of such funds, and that the most convenient place to hold Vanguard mutual funds is directly at Vanguard. Thus, the Bogleheads forum and Wiki tends to be Vanguard-oriented. But investing according to the Boglehead philosophy certainly does not require you to invest at Vanguard or use Vanguard products. Here are some notes on how to do it at Northern.


Imbox notice.png The information below was last revised in July, 2012. Writers have striven for accuracy, but investors should verify information before taking action.


Index funds

Northern funds offers both active and passive mutual funds. The table below lists the index funds available to retail investors. (Northern Trust manages $322.6 billion in indexed investments). [4] Currently, (through July 2013) Northern is waiving expenses on its indexed portfolios. The table provides both the gross expense ratio and the net expense ratio after fee waivers.


Northern Funds Index Funds
Fund Ticker Index Net Expense Ratio Gross Expense Ratio Redemption Fee
Stock Index NOSIX S&P 500 Index 0.10% 0.39%
Midcap Index NOMIX S&P Midcap 400 Index 0.15% 0.53%
Small Cap Index NSIDX Russell 2000 Index 0.15% 0.55%
International Index NOINX MSCI EAFE Index 0.25% 0.62% 2.00% < 30 days
Emerging Markets Index NOEMX MSCI Emerging Markets Index 0.30% 0.72% 2.00% < 30 days
Global Real Estate Index NGREX FTSE/NAREIT Global Real Estate Index 0.65% 0.74% 2.00% < 30 days
Global Sustainability Index NSIDX MSCI World ESG Index 0.30% 0.91% 2.00% < 30 days
Bond Index NOBOX Barclays US Aggregate Bond Index 0.16% 0.45%

Exchange traded funds

Northern Trust manages the following Flexshare exchange traded funds.

Northern Funds Flex Exchange Traded Funds
Fund Ticker Index Net Expense Ratio Gross Expense Ratio
FlexShares Morningstar U.S. Market Factor Tilt Index ETF TILT Morningstar U.S. Market Factor Tilt Index 0.27% 0.30%
FlexShares Morningstar Global Upstream Natural Resources Index ETF GUNR Morningstar Global Upstream Natural Resources Index 0.48% 0.51%
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund TDTT iBoxx 3-Year Target Duration TIPS Index 0.20% 0.23%
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund TDTF iBoxx 5-Year Target Duration TIPS Index 0.20% 0.23%

References

  1. Trust and Estate Services, Northern Trust. Retrieved July 3, 2012.
  2. Philanthropic Services, Northern Trust. Retrieved July 3, 2012.
  3. Family Office, Northern Trust. Retrieved July 3, 2012.
  4. Asset Management, Northern Trust. Retrieved July 3, 2012

External links