September 2009

While the U.S. Treasury Temporary Guarantee Program, which was established to promote stability in money market funds, expired as expected on September 18, 2009, new proposed regulation is designed to further stabilize money market funds and to increase the safety and liquidity for money market fund shareholders.

The Securities and Exchange Commission's proposed amendments would enhance the risk-limiting requirements of Rule 2a-7, which governs how money market funds are managed. These new rules would tighten existing requirements regarding the maturity, quality and liquidity of money market fund portfolios. If SEC rule changes are adopted—potentially early next year—a transition period may be provided for money market funds to become compliant.

Given that Northern Trust already adheres to, in large part, the proposed SEC requirements, we don't expect the rule changes to significantly impact our publicly-offered, registered money market funds. Northern Trust employs a conservative investment process along with a variety of risk management measures. We remain committed to our investment methodology, which has helped us deliver competitive returns in a risk-managed framework for more than 25 years.

Learn more about the Northern Funds money market funds.

Current and future portfolio holdings of money market funds are subject to risk.

An investment in the Money Market Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Money Market Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Money Market Funds.