Northern Tax-Exempt Fund Q3 2025 Commentary (NOTEX)

Northern Trust Asset Management 6 Follower s Follow 5 Share Save Play ( 6min ) Comments Summary It was an atypical macro backdrop, as economic activity defied expectations for a slowdown despite clear signs of labor market deceleration. The moderation in employment was sufficient to prompt the U.S. Federal Reserve's first rate cut of 2025—marking the beginning of what markets expect to be an easing cycle. Municipals finally outperformed US treasuries in the 3rd quarter after lagging the first half of the year. The market regained confidence with the preservation of the municipal tax-exemption and as federal funding cuts were less severe than anticipated. The Fund slightly underperformed the benchmark in the quarter. cagkansayin/iStock via Getty Images It was an atypical macro backdrop, as economic activity defied expectations for a slowdown despite clear signs of labor market deceleration. Following several upward revisions, U.S. second-quarter real GDP growth—initially reported in July—was finalized at 3.8% annualized, well above the original This article was written by Northern Trust Asset Management 6 Follower s Follow Northern 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.

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