Exhibit (d)(42)

NORTHERN FUNDS

AMENDMENT NO. 3 TO SUB-ADVISORY AGREEMENT

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND

This Amendment No. 3 dated as of March 1, 2017 is entered into between Northern Trust Investments, Inc. (the “Adviser”), and Neuberger Berman Investment Advisers LLC (formerly known as Neuberger Berman Fixed Income LLC) (the “Sub-Adviser”).

WHEREAS, the Adviser, The Northern Trust Company of Connecticut (“NTCC”) and Sub-Adviser entered into a Sub-Advisory Agreement dated as of July 1, 2011, as amended January 1, 2013 and June 30, 2014 (as amended, the “Agreement”), pursuant to which Northern Funds (the “Trust”) has appointed the Sub-Adviser to act as a sub-adviser to the Trust for the Multi-Manager High Yield Opportunity Fund (the “Fund”); and

WHEREAS, NTCC’s rights and obligations under the Agreement were assumed by the Adviser as of January 1, 2014; and

WHEREAS, the Adviser and Sub-Adviser now wish to amend the Agreement to change the sub-advisory fees payable to the Sub-Adviser; and

WHEREAS, the Board of Trustees of the Trust, including a majority of disinterested Trustees, has approved this Amendment No. 3 at an in person meeting on February 16, 2017;

NOW THEREFORE, the parties hereto, intending to be legally bound hereby agree to amend the Agreement as follows:

1. Effective March 1, 2017, Section 2(d) of Appendix A of the Agreement is hereby deleted in its entirety and replaced with the following:

(d) “Aggregate Assets Fee Schedule” shall mean the following annual fee schedule:

[Material Redacted Pursuant to an Exemptive Order Issued by the U.S. Securities Exchange Commission.]

2. Except to the extent amended hereby, the Agreement, as amended, shall remain unchanged and in full force and effect, and is hereby ratified and confirmed in all respects as amended hereby.

IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment No.3 to the Agreement as of the day and year first above written.

NORTHERN TRUST INVESTMENTS, INC.
By:	/s/ Nina B. Staley
Name:	Nina B. Staley
Title:	Sr. Vice President
NEUBERGER BERMAN INVESTMENT ADVISERS LLC
By:	/s/ Scott Kilgallen
Name:	Scott Kilgallen
Title:	Managing Director