https://www.sec.gov/Archives/edgar/data/916620/000119312520316591/d25724d497.htm497 1 d25724d497.htm NORTHERN FUNDS
MONEY MARKET FUNDS
SUMMARY PROSPECTUS, PROSPECTUS AND STATEMENT OF ADDITIONAL INFORMATION (“SAI”) SUPPLEMENT
NORTHERN FUNDS
MUNICIPAL MONEY MARKET FUND
SUPPLEMENT DATED DECEMBER 14, 2020 TO
SUMMARY PROSPECTUS, PROSPECTUS AND SAI EACH DATED JULY 31, 2020,
AS SUPPLEMENTED
PENDING LIQUIDATION OF MUNICIPAL MONEY MARKET FUND
The Board of Trustees (the “Board”) of Northern Funds (the “Trust”) has determined, after consideration of a number of factors, that it is in the best interests of the Municipal Money Market Fund (the “Fund”) and its shareholders that the Fund be liquidated and terminated on or about February 12, 2021 (the “Liquidation Date”) pursuant to a plan of liquidation approved by the Board. The Liquidation Date may be changed at the discretion of the Trust’s officers.
The Fund will discontinue accepting purchase orders from new investors after the close of business on or about January 11, 2021. The plan of liquidation for the Fund provides that the Fund will begin liquidating its assets as soon as is reasonable and practicable, but in no event later than the Liquidation Date. Prior to that time, the proceeds from the liquidation of portfolio securities will be invested in cash, cash equivalent securities or short-term investments, which may prevent the Fund from meeting its stated investment objective.
Prior to the Liquidation Date, Fund shareholders may either: (1) redeem their shares; or (2) exchange their shares at net asset value for shares of another fund of the Trust. Redemptions and exchange orders should be submitted in the manner described in the Prospectus under “Account Policies and Other Information.” If no action is taken by a Fund shareholder prior to the Liquidation Date, the Fund will distribute to such shareholder, on or promptly after the Liquidation Date, a cash distribution equal to the shareholder’s interest in the net assets of the Fund (a “liquidating distribution”) as of the Liquidation Date. Shareholders should be aware that if they redeem shares, exchange them into another fund of the Trust, or receive a liquidating distribution, it is generally considered a taxable event.
The Fund may make distributions to shareholders of certain ordinary income and/or capital gains on or before the Liquidation Date. In that event, the distributions may be taxable to shareholders who receive the distribution (aside from tax-exempt accounts). Shareholders who purchase shares of the Fund after the date of this supplement may receive distributions that result in short-term capital gains or losses.
SHAREHOLDERS SHOULD CONSULT THEIR PERSONAL TAX PROFESSIONALS CONCERNING ALL TAX CONSEQUENCES APPLICABLE TO THEIR INVESTMENT IN THE FUND AND THE TAX IMPACT OF THE LIQUIDATION OF THE FUND.
The pending liquidation of the Fund may be terminated and/or abandoned at any time before the Liquidation Date by action of the Board of the Trust.
Please retain this Supplement with your Summary Prospectus, Prospectus and SAI for future reference.
50 South LaSalle Street
P.O. Box 75986
Chicago, Illinois 60675-5986
800-595-9111
northerntrust.com/funds
NF SPT MMUNI (12/20)
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https://www.sec.gov/Archives/edgar/data/916620/000119312520316589/d35624d497.htm497 1 d35624d497.htm NORTHERN FUNDS
MONEY MARKET FUNDS
PROSPECTUS AND SUMMARY PROSPECTUS SUPPLEMENT
NORTHERN FUNDS
MONEY MARKET FUND
SUPPLEMENT DATED DECEMBER 14, 2020 TO THE PROSPECTUS AND SUMMARY PROSPECTUS FOR THE MONEY MARKET FUND EACH DATED JULY 31, 2020, AS SUPPLEMENTED
IMPORTANT INFORMATION
The Board of Trustees (the “Board”) of Northern Funds (the “Trust”) has approved a Plan of Reorganization, which contemplates the reorganization of the Money Market Fund, a series of the Trust (the “Acquired Fund”), with and into the U.S. Government Money Market Fund, also a series of the Trust (the “Acquiring Fund” and, together with the Acquired Fund, the “Funds”). It is expected that the reorganization will occur in the second quarter of 2021, subject to the approval of the reorganization by the Acquired Fund’s shareholders and the satisfaction of certain conditions. The Plan of Reorganization will be submitted to shareholders of the Acquired Fund for approval at a special meeting of shareholders of the Acquired Fund. Shareholders of the Acquired Fund will receive a prospectus/proxy statement providing notice of the special meeting of shareholders and information regarding the terms of the reorganization and the Acquiring Fund.
After considering the recommendation of Northern Trust Investments, Inc. (“NTI”), the Funds’ investment adviser, the Board concluded that the reorganization would be in the best interests of each Fund and their shareholders and shareholders’ interests will not be diluted as a result of the reorganization. NTI expects that the reorganization will not be effected on a tax-free basis for federal income tax purposes. The reorganization is not expected to result in the recognition of capital gains or losses by shareholders of the Acquired Fund. Each Fund currently offers and redeems shares at $1.00 per share by valuing its portfolio investments at amortized cost. The Funds’ valuation policies are identical, and pursuant to the Plan of Reorganization shareholders of the Acquired Fund would receive a number of Acquiring Fund shares equal to the number of Acquired Fund shares they own immediately before the reorganization. The Funds will receive an opinion from counsel that the reorganization will not result in material adverse federal income tax consequences for Acquired Fund shareholders. The Acquired Fund may make distributions to shareholders of certain ordinary income and/or capital gains on or before the reorganization. In that event, the distributions may be taxable to shareholders who receive the distribution (aside from tax-exempt accounts). SHAREHOLDERS SHOULD CONSULT THEIR PERSONAL TAX PROFESSIONALS CONCERNING ALL TAX CONSEQUENCES APPLICABLE TO THEIR INVESTMENT IN THE ACQUIRED FUND AND THE TAX IMPACT OF THE REORGANIZATION OF THE ACQUIRED FUND.
Please retain this Supplement with your Prospectus and Summary Prospectus for future reference.
50 South LaSalle Street
P.O. Box 75986
Chicago, Illinois 60675-5986
800-595-9111
northerntrust.com/funds
NF SPT MM (12/20)
NORTHERN FUNDS PROSPECTUS
