Fund Evaluator:
Northern Tax-Exempt (NOTEX)
Follow This Fund
Best Performing in Muni National Long Over the Last Year
| 7.5% | Victory Tax Exempt Long-Term (USTEX) |
| 7.3% | Vanguard High-Yield Tax-Exempt Adm (VWALX) |
| 7.2% | Vanguard High-Yield Tax-Exempt (VWAHX) |
| 7.1% | Thrivent Municipal Bond S (TMBIX) |
| 7.0% | T. Rowe Price Core Municipal Bond (PRTAX) |
Fund Details
Northern Tax-Exempt Overview
Northern Tax-Exempt (NOTEX) is an actively managed Municipal Bond Muni National Long fund. Northern Funds launched the fund in 1994.
The investment seeks to provide a high level of current income exempt from regular federal income tax. In seeking high current income exempt from regular federal income tax, the fund may invest in a broad range of municipal instruments. A municipal instrument is a fixed-income obligation issued by a state, territory or possession of the United States (including the District of Columbia) or a political subdivision, agency or instrumentality thereof. Except in extraordinary circumstances, at least 80% of the fund's net assets will be invested in debt instruments that pay interest that is exempt from regular federal income tax.
About Northern Tax-Exempt (NOTEX)
There are 3 members of the management team with an average tenure of 2.74 years: Brian Sipich (2025), Adam Shane (2022), Timothy Blair (2023). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg Municipal TR USD index with a weighting of 100%. Northern Tax-Exempt has 413 securities in its portfolio. The top 10 holdings constitute 7.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Northern Tax-Exempt is part of the Fixed Income global asset class and is within the Municipal Bond fund group. Northern Tax-Exempt has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 99.7% (99.7% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Northern Tax-Exempt has 0.3% of the portfolio in cash.
Assets Under Management
The fund has $769 million in total assets, which is below the $1 billion average for the Muni National Long category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.
NOTEX Performance and Fees
The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Northern Tax-Exempt expense ratio is average compared to funds in the Muni National Long category. Northern Tax-Exempt has an expense ratio of 0.45%, which is 42% lower than its category average, making the fund expense ratio grade a A. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.
High portfolio turnover can translate to higher expenses and lower aftertax returns. Northern Tax-Exempt has a portfolio turnover rate of 46%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 38% for the Muni National Long category.
Recently, in the month of July 2026, Northern Tax-Exempt returned -1.8%, which earned it a grade of B, as the Muni National Long category had an average return of -1.9%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.
Northern Tax-Exempt has a trailing yield of 3.65%, which is below the 3.72% category average. The fund normally distributes its income monthly and its capital gains annually.
It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.
Northern Tax-Exempt Grades
Year to date, the fund has returned 0.5%, 0.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 5.3% over the past year (grade of D), 3.0% over the past three years (grade of D) and -0.0% per year over the past five years (grade of D) and 1.6% per year over the past 10 years (grade of D).
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NOTEX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| NOTEX Return (NAV) | -1.8% | -0.6% | 5.3% | 3.0% | -0.0% | 1.6% |
| NOTEX Grade | B | F | D | D | D | D |
| +/- Category | 0.1% | -0.3% | -0.9% | -0.2% | -0.1% | -0.2% |
| Muni National Long Avg | -1.9% | -0.3% | 6.3% | 3.2% | 0.0% | 1.8% |
| NOTEX Tax Cost Ratio | na | na | 0.0% | 0.0% | 0.1% | 0.1% |
NOTEX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| NOTEX Return (NAV) | 0.5% | 3.9% | 1.9% | 5.9% | -11.2% | 1.3% | 5.1% | 7.6% | 0.6% | 4.8% | 0.4% |
| NOTEX Grade | D | A | D | F | C | F | B | C | C | F | B |
| +/- Category | -0.3% | 0.9% | -0.5% | -1.0% | 0.4% | -1.6% | 0.4% | -0.5% | -0.1% | -1.0% | 0.2% |
| Muni National Long Avg | 0.9% | 3.0% | 2.5% | 6.8% | -11.6% | 2.8% | 4.7% | 8.1% | 0.7% | 5.8% | 0.2% |
| Risk Measures | |
| Standard Deviation: | 5.3% |
| Total Risk Index: | 0.43 - Low |
| Category Risk Index: | 0.81 - Low |
| Category Risk Grade: | A (6% Rank) |
| Beta: | 0.92 |
| R-Squared: | 99% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 3.7% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $769 Mil |
| Fund Total Assets: | $ 770 Mil |
| Share Class Type: | No Load |
| Portfolio Turnover: | 46% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 4.0 years | |||
| Average Tenure: 2.7 years | |||
| Managers (Year): Shane Adam (2022), Blair Timothy (2023), Sipich Brian (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 413 |
| % in Top 10 Holdings: | 7.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 99.7% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.3% |
Purchase Information
| Fund Family: | Northern Funds |
| Phone Number: | 800-595-9111 |
| Website: | www.northernfunds.com |
| Status: | Open |
| Inception Date: | March 31, 1994 |
| Min. Initial Purchase: | $2,500 |
| Min. Initial IRA Purchase: | $ 500 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.45% ( Rating : Avg ) |
| Category Average Expense Ratio (%): | 0.78% |
| Share Class: | Northern Tax-Exempt |
| Min. Subsequent Purchase: | $ 50 |
| Min. Subsequent IRA Purchase: | $ 50 |
