Northern California Intermediate Tax-Exempt Fund Q4 2025 Commentary

Northern Trust Asset Management9 FollowersFollow5ShareSavePlay(6min)CommentsSummaryThe 43-day U.S. government shutdown created a significant information vacuum just as markets sought clarity on growth, inflation, and policy trajectories.U.S. Federal Reserve continued easing, delivering 25-basis-point (0.25%) cuts at each of its two meetings.In the fourth quarter, the Bloomberg Municipal Index returned +1.56%, for a total annual gain of +4.25%.Northern Funds California Intermediate Tax-exempt Fund outperformed its benchmark in the quarter with a 1.31% return compared to the index's 0.93%.The largest contributor to performance was an overweight to longer duration bonds. ismagilov/iStock via Getty Images For most of the final quarter of 2025, the macroeconomic landscape was shaped as much by what investors couldn't see as by what they could. The U.S. government shutdown—lasting a record 43 days—created a significant information vacuum justThis article was written byNorthern Trust Asset Management9 FollowersFollowNorthern Trust Asset Management is a global investment manager that helps investors navigate changing market environments in efforts to realize their long-term objectives. Entrusted with $1.2 trillion in assets under management as of March 31, 2024, we understand that investing ultimately serves a greater purpose and believe investors should be compensated for the risks they take — in all market environments and any investment strategy. That’s why we combine robust capital markets research, expert portfolio construction and comprehensive risk management in an effort to craft innovative and efficient solutions that seek to deliver targeted investment outcomes. As engaged contributors to our communities, we consider it a great privilege to serve our investors and our communities with integrity, respect and transparency.

Northern Trust Asset Management is composed of Northern Trust Investments, Inc., Northern Trust Global Investments Limited, Northern Trust Fund Managers (Ireland) Limited, Northern Trust Global Investments Japan, K.K., NT Global Advisors, Inc., 50 South Capital Advisors, LLC, Northern Trust Asset Management Australia Pty Ltd, and investment personnel of The Northern Trust Company of Hong Kong Limited and The Northern Trust Company. Note: This account is not managed or monitored by Northern Trust Asset Management, and any messages sent via Seeking Alpha will not receive a response. For inquiries or communication, please use Northern Trust Asset Management's official channels.