nvcsrs

The report has been prepared for the general information of Northern Funds shareholders. It is not authorized for distribution to prospective investors unless accompanied or preceded by a current Northern Funds prospectus, which contains more complete information about Northern Funds’ investment policies, management fees and expenses. Investors are reminded to read the prospectus carefully before investing or sending money.

This report contains certain forward-looking statements about factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in fund management strategies from those currently expected to be employed.


	EQUITY FUNDS

		STATEMENTS OF ASSETS AND LIABILITIES


	EMERGING		ENHANCED							INTERNATIONAL
Amounts in thousands,	MARKETS		LARGE CAP		GROWTH		INCOME			GROWTH
except per share data	EQUITY FUND		FUND		EQUITY FUND		EQUITY FUND			EQUITY FUND



ASSETS:
Investments, at cost		$513,153		$163,745		$530,915		$489,500			$996,721
Investments, at value		$684,964		$173,297		$604,811		$548,520			$1,214,443
Cash		-		1		52		86			1
Foreign currencies, at value (cost $9,733 and $35,486, respectively)		9,277		-		-		-			36,374
Dividend income receivable		1,102		160		415		1,885			2,199
Interest income receivable		4		-		-		-			1
Receivable for foreign tax reclaimable		16		-		-		-			1,752
Receivable for securities sold		80		-		-		-			5,078
Receivable for variation margin on futures contracts		448		-		-		-			-
Receivable for fund shares sold		1,271		124		393		885			158
Receivable from investment adviser		-		1		13		18			25
Unrealized gain on forward foreign currency exchange contracts		-		-		-		-			1
Prepaid and other assets		102		6		8		44			16
Total Assets		697,264		173,589		605,692		551,438			1,260,048


LIABILITIES:
Unrealized loss on forward foreign currency exchange contracts		17		-		-		-			16
Cash Overdraft		1,827		-		-		-			-
Payable for securities purchased		106		-		-		500			4,206
Payable for variation margin on futures contracts		13		3		-		-			-
Payable for fund shares redeemed		1,043		1,990		519		1,682			866
Payable to affiliates:
Investment advisory fees		40		9		84		77			204
Co-administration fees		17		4		15		13			31
Custody and accounting fees		-		-		6		-			53
Transfer agent fees		11		3		10		9			20
Trustee fees		1		1		4		2			5
Accrued other liabilities		23		19		43		231			64
Total Liabilities		3,098		2,029		681		2,514			5,465

Net Assets		$694,166		$171,560		$605,011		$548,924			$1,254,583

ANALYSIS OF NET ASSETS:
Capital stock		$504,616		$157,698		$471,617		$464,831			$792,105
Undistributed net investment income (loss)		6,940		70		81		(1,954	)		9,590
Accumulated undistributed net realized gain (loss)		10,931		4,232		59,417		27,027			234,132
Net unrealized appreciation		171,679		9,560		73,896		59,020			218,756
Net Assets		$694,166		$171,560		$605,011		$548,924			$1,254,583


Shares Outstanding ($.0001 par value, unlimited authorization)		47,836		14,629		34,446		40,210			83,451

Net Asset Value, Redemption and Offering Price Per Share		$14.51		$11.73		$17.56		$13.65			$15.03

See Notes to the Financial Statements.

EQUITY FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT




	SEPTEMBER 30, 2007 (UNAUDITED)



LARGE CAP		MID CAP			SELECT			SMALL CAP			SMALL CAP		TECHNOLOGY
VALUE FUND		GROWTH FUND			EQUITY FUND			GROWTH FUND			VALUE FUND		FUND



	$1,059,666		$174,568			$154,801			$44,961			$961,591		$119,535
	$1,182,616		$196,887			$187,034			$51,463			$1,028,652		$149,878
	343		-			1			1			1,629		-

	-		-			-			-			-		-
	1,717		86			156			6			1,520		25
	-		-			-			-			-		-
	-		-			-			-			-		-
	-		1,990			-			1,130			2,676		4,985

	-		-			-			-			-		-
	408		-			50			17			10,966		61
	13		8			7			2			34		3
	-		-			-			-			-		-
	22		2			5			10			18		23
	1,185,119		198,973			187,253			52,629			1,045,495		154,975



	-		-			-			-			-		-

	-		-			-			-			-		-
	-		1,154			3,605			810			903		3,115

	-		-			-			-			232		-
	3,132		244			800			60			2,651		283

	166		27			26			9			145		25
	29		5			5			1			26		4
	6		1			4			2			16		3
	19		3			3			1			17		2
	5		1			2			2			3		2
	281		21			100			18			321		73
	3,638		1,456			4,545			903			4,314		3,507

	$1,181,481		$197,517			$182,708			$51,726			$1,041,181		$151,468


	$916,136		$239,553			$227,112			$206,783			$899,076		$1,130,583
	18,517		(231	)		554			(214	)		6,727		(349	)

	123,878		(64,124	)		(77,191	)		(161,345	)		66,958		(1,009,109	)
	122,950		22,319			32,233			6,502			68,420		30,343
	$1,181,481		$197,517			$182,708			$51,726			$1,041,181		$151,468


	83,043		10,948			7,631			3,564			64,440		10,506

	$14.23		$18.04			$23.94			$14.52			$16.16		$14.42

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 EQUITY FUNDS


	EQUITY FUNDS

		STATEMENTS OF OPERATIONS


	EMERGING			ENHANCED									INTERNATIONAL
	MARKETS			LARGE CAP			GROWTH			INCOME			GROWTH
Amounts in thousands	EQUITY FUND			FUND			EQUITY FUND			EQUITY FUND			EQUITY FUND


INVESTMENT INCOME:

Dividend income		$8,027	⁽¹⁾		$1,521			$4,616			$6,050			$17,748	⁽²⁾
Interest income		265			209			356			3,330			227
Total Investment Income		8,292			1.730			4,972			9,380			17,975


EXPENSES:

Investment advisory fees		1,030			258			2,515			2,224			6,127
Co-administration fees		441			129			444			392			919
Custody and accounting fees		213			42			85			61			672
Transfer agent fees		294			86			296			262			613
Registration fees		17			10			12			11			13
Printing fees		17			17			32			17			58
Professional fees		7			7			13			7			27
Shareholder servicing fees		-			-			7			154			9
Trustee fees and expenses		3			3			5			3			12
Other		23			4			9			4			17

Total Expenses		2,045			556			3,418			3,135			8,467
Less expenses reimbursed by investment adviser		-			(39	)		(453	)		(511	)		(807	)
Less custodian credits		(23	)		-			(5	)		(8	)		-
Net Expenses		2,022			517			2,960			2,616			7,660

Net Investment Income (Loss)		6,270			1,213			2,012			6,764			10,315


NET REALIZED AND UNREALIZED GAINS (LOSSES):

Net realized gains (losses) on:
Investments		6,435			610			48,058			11,402			110,651
Futures contracts		1,040			416			-			-			-
Foreign currency transactions		559			-			-			-			627
Net change in unrealized appreciation (depreciation) on:
Investments		142,252			4,857			(817	)		2,006			(358	)
Futures contracts		101			(59	)		-			-			-
Forward foreign currency exchange contracts		13			-			-			-			(15	)
Translation of other assets and liabilities denominated in foreign currencies		(546	)		-			-			-			946
Net Gains (Losses) on Investments		149,854			5,824			47,241			13,408			111,851


Net Increase (Decrease) in Net Assets Resulting from Operations		$156,124			$7,037			$49,253			$20,172			$122,166


(1)		Net of $1,007 in non-reclaimable foreign withholding taxes.
(2)		Net of $2,267 in non-reclaimable foreign withholding taxes.

See Notes to the Financial Statements.

EQUITY FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT




	SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)



LARGE CAP			MID CAP			SELECT			SMALL CAP			SMALL CAP			TECHNOLOGY
VALUE FUND			GROWTH FUND			EQUITY FUND			GROWTH FUND			VALUE FUND			FUND



	$18,085			$545			$1,101			$80			$7,831			$492
	753			184			137			33			1,376			81
	18,838			729			1,238			113			9,207			573


	5,165			816			760			262			4,403			737
	911			144			134			39			777			110
	141			41			42			29			181			35
	608			96			89			26			518			74
	17			9			10			8			15			10
	46			17			17			17			31			17
	20			7			7			7			13			7
	167			3			52			3			269			34
	9			3			3			3			5			2
	13			5			5			5			11			5

	7,097			1,141			1,119			399			6,223			1031

	(409	)		(181	)		(224	)		(71	)		(1,025	)		(109	)
	(3	)		-			-			(1	)		(19	)		-
	6,685			960			895			327			5,179			922

	12,153			(231	)		343			(214	)		4,028			(349	)



	59,076			18,084			7,567			3,761			56,651			10,990
	-			-			-			-			(902	)		-
	-			-			-			-			-			-


	(27,077	)		7,543			16,425			(855	)		(92,731	)		11,822
	-			-			-			-			799			-

	-			-			-			-			-			-

	-			-			-			-			-			-
	31,999			25,627			23,992			2,906			(36,183	)		22,812


	$44,152			$25,396			$24,335			$2,692			$(32,155	)		$22,463

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 EQUITY FUNDS


	EQUITY FUNDS

		STATEMENTS OF CHANGES IN NET ASSETS



	EMERGING					ENHANCED
	MARKETS					LARGE CAP						GROWTH						INCOME
	EQUITY FUND					FUND						EQUITY FUND						EQUITY FUND

	SEPT. 30,		MARCH 31,			SEPT. 30,			MARCH 31,			SEPT. 30,			MARCH 31,			SEPT. 30,			MARCH 31,
Amounts in thousands	2007		2007(1)			2007			2007			2007			2007			2007			2007


OPERATIONS:
Net investment income (loss)		$6,270		$2,526			$1,213			$1,178			$2,012			$4,198			$6,764			$10,676
Net realized gains		8,034		2,438			1,026			4,035			48,058			22,300			11,402			22,524
Net change in unrealized appreciation (depreciation)		141,820		29,859			4,798			4,389			(817	)		14,758			2,006			26,958
Net Increase (Decrease) in Net Assets
Resulting from Operations		156,124		34,823			7,037			9,602			49,253			41,256			20,172			60,158

CAPITAL SHARE TRANSACTIONS:
Net increase (decrease) in net assets
resulting from capital share transactions		86,391		418,225			27,416			93,232			(19,504	)		(153,307	)		82,890			54,603
Net Increase (Decrease) in Net Assets
Resulting from Capital Share Transactions		86,391		418,225			27,416			93,232			(19,504	)		(153,307	)		82,890			54,603

DISTRIBUTIONS PAID:
From net investment income		-		(1,397	)		(1,184	)		(1,145	)		(1,950	)		(4,737	)		(7,336	)		(11,828	)
From net realized gains		-		-			-			(941	)		-			(40,552	)		-			(13,071	)
Total Distributions Paid		-		(1,397	)		(1,184	)		(2,086	)		(1,950	)		(45,289	)		(7,336	)		(24,899	)

Total Increase (Decrease) in Net Assets		242,515		451,651			33,269			100,748			27,799			(157,340	)		95,726			89,862
NET ASSETS:
Beginning of period		451,651		-			138,291			37,543			577,212			734,552			453,198			363,336
End of period		$694,166		$451,651			$171,560			$138,291			$605,011			$577,212			$548,924			$453,198

Accumulated Undistributed Net Investment Income (Loss)		$6,940		$670			$70			$41			$81			$19			$(1,954	)		$(1,382	)


(1)	Commenced investment operations on April 25, 2006.

See Notes to the Financial Statements.

EQUITY FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT




SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED) OR FISCAL YEAR OR PERIOD ENDED MARCH 31, 2007



INTERNATIONAL
GROWTH				LARGE CAP				MID CAP				SELECT				SMALL CAP				SMALL CAP				TECHNOLOGY
EQUITY FUND				VALUE FUND				GROWTH FUND				EQUITY FUND				GROWTH FUND				VALUE FUND				FUND

SEPT. 30,		MARCH 31 ,		SEPT. 30,		MARCH 31 ,		SEPT. 30 ,		MARCH 31,		SEPT. 30 ,		MARCH 31,		SEPT. 30,		MARCH 31,		SEPT. 30,		MARCH 31,		SEPT. 30,		MARCH 31 ,
2007		2007		2007		2007		2007		2007		2007		2007		2007		2007		2007		2007		2007		2007



$10,315		$14,658		$12,153		$21,531		$(231	)	$(388	)	$343		$716		$(214	)	$(452	)	$4,028		$4,455		$(349	)	$(1,172	)
111,278		217,578		59,076		131,959		18,084		19,124		7,567		14,487		3,761		2,346		55,749		65,804		10,990		7,896

573		(6,986	)	(27,077	)	1,945		7,543		(19,518	)	16,425		(9,062	)	(855	)	220		(91,932	)	(41,322	)	11,822		(6,741	)

122,166		225,250		44,152		155,435		25,396		(782	)	24,335		6,141		2,692		2,114		(32,155	)	28,937		22,463		(17	)



(68,940	)	(305,536	)	(34,315	)	(48,125	)	(13,030	)	(134,000	)	(20,379	)	(72,157	)	(3,065	)	(18,025	)	122,029		382,310		(17,532	)	(62,744	)

(68,940	)	(305,536	)	(34,315	)	(48,125	)	(13,030	)	(134,000	)	(20,379	)	(72,157	)	(3,065	)	(18,025	)	122,029		382,310		(17,532	)	(62,744	)

-		(21,201	)	-		(20,912	)	-		-		-		(700	)	-		-		-		(4,198	)	-		-
-		(111,568	)	-		(102,269	)	-		-		-		-		-		-		-		(67,470	)	-		-
-		(132,769	)	-		(123,181	)	-		-		-		(700	)	-		-		-		(71,668	)	-		-

53,226		(213,055	)	9,837		(15,871	)	12,366		(134,782	)	3,956		(66,716	)	(373	)	(15,911	)	89,874		339,579		4,931		(62,761	)
1,201,357		1,414,412		1,171,644		1,187,515		185,151		319,933		178,752		245,468		52,099		68,010		951,307		611,728		146,537		209,298
$1,254,583		$1,201,357		$1,181,481		$1,171,644		$197,517		$185,151		$182,708		$178,752		$51,726		$52,099		$1,041,181		$951,307		$151,468		$146,537


$9,590		$(725	)	$18,517		$6,364		$(231	)	$ -		$554		$211		$(214	)	$ -		$6,727		$2,699		$(349	)	$ -

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 EQUITY FUNDS


	EQUITY FUNDS

		FINANCIAL HIGHLIGHTS



	EMERGING MARKETS
	EQUITY FUND
	SIX MONTHS
	ENDED			PERIOD
	SEPT. 30,			ENDED
	2007			MARCH 31,
Selected per share data	(UNAUDITED)			2007⁽⁵⁾

Net Asset Value, Beginning of Period		$11.11			$10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income		0.13			0.09
Net realized and unrealized gains		3.27			1.08
Total from Investment Operations		3.40			1.17

LESS DISTRIBUTIONS PAID:
From net investment income ⁽¹⁾		-			(0.06	)
Total Distributions Paid		-			(0.06	)

Net Asset Value, End of Period		$14.51			$11.11

Total Return ⁽²⁾		30.60	%		11.74	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$694,166			$451,651
Ratio to average net assets of: ⁽³⁾
Expenses		0.69	% ⁽⁴⁾		0.77	%
Expenses, before credits		0.70	%		0.77	%
Net investment income		2.15	%		1.23	%
Net investment income, before credits		2.14	%		1.23	%
Portfolio Turnover Rate		7.56	%		16.23	%


(1)		Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes.
(2)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(3)		Annualized for periods less than one year.
(4)		The net expense ratio includes custodian credits of approximately $23,000, which represents 0.01% of average net assets for the period ended September 30, 2007.
(5)		Commenced investment operations on April 25, 2006.

See Notes to the Financial Statements.

EQUITY FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT



	ENHANCED LARGE CAP FUND
	SIX MONTHS
	ENDED			YEAR			PERIOD
	SEPT. 30,			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006 ⁽³⁾

Net Asset Value, Beginning of Period		$11.25			$10.22			$10.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income		0.08			0.14			0.04
Net realized and unrealized gains		0.48			1.13			0.22
Total from Investment Operations		0.56			1.27			0.26

LESS DISTRIBUTIONS PAID:
From net investment income		(0.08	)		(0.14	)		(0.04	)
From net realized gains		–			(0.10	)		–
Total Distributions Paid		(0.08	)		(0.24	)		(0.04	)

Net Asset Value, End of Period		$11.73			$11.25			$10.22

Total Return ⁽¹⁾		4.98	%		12.50	%		2.58	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$171,560			$138,291			$37,543
Ratio to average net assets of: ⁽²⁾
Expenses, net of reimbursements		0.60	%		0.60	%		0.60	%
Expenses, before reimbursements		0.65	%		0.78	%		1.71	%
Net investment income, net of reimbursements		1.41	%		1.49	%		1.68	%
Net investment income, before reimbursements		1.36	%		1.31	%		0.57	%
Portfolio Turnover Rate		70.85	%		100.03	%		22.05	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.
(3)		Commenced investment operations on December 16, 2005

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 EQUITY FUNDS


	EQUITY FUNDS

		FINANCIAL HIGHLIGHTS (continued)


	GROWTH EQUITY FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003

Net Asset Value, Beginning of Period		$16.22			$16.24			$15.64			$15.00			$11.51			$15.66
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.06			0.12			0.07			0.09			0.01			0.04
Net realized and unrealized gains (losses)		1.34			1.16			1.60			0.64			3.49			(4.15	)
Total from Investment Operations		1.40			1.28			1.67			0.73			3.50			(4.11	)

LESS DISTRIBUTIONS PAID:
From net investment income		(0.06	)		(0.13	)		(0.06	)		(0.09	)		(0.01	)		(0.04	)
From net realized gains		-			(1.17	)		(1.01	)		-			-			-
Total Distributions Paid		(0.06	)		(1.30	)		(1.07	)		(0.09	)		(0.01	)		(0.04	)

Net Asset Value, End of Period		$17.56			$16.22			$16.24			$15.64			$15.00			$11.51

Total Return ⁽¹⁾		8.62	%		7.93	%		10.72	%		4.93	%		30.41	%		(26.25	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$605,011			$577,212			$734,552			$728,760			$766,233			$562,961
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers and reimbursements		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Expenses, before waivers and reimbursements		1.15	%		1.17	%		1.24	%		1.25	%		1.25	%		1.27	%
Net investment income, net of waivers and reimbursements		0.68	%		0.67	%		0.42	%		0.60	%		0.06	%		0.32	%
Net investment income (loss), before waivers and reimbursements		0.53	%		0.50	%		0.18	%		0.35	%		(0.19	)%		0.05	%
Portfolio Turnover Rate		49.92	%		88.79	%		60.23	%		86.61	%		105.57	%		50.79	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

EQUITY FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT



	INCOME EQUITY FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003

Net Asset Value, Beginning of Period		$13.26			$12.06			$12.11			$12.11			$10.15			$11.41
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.18			0.36			0.35			0.34			0.36			0.39
Net realized and unrealized gains (losses)		0.40			1.67			0.94			0.42			2.00			(1.27	)
Total from Investment Operations		0.58			2.03			1.29			0.76			2.36			(0.88	)

LESS DISTRIBUTIONS PAID:
From net investment income		(0.19	)		(0.39	)		(0.37	)		(0.46	)		(0.40	)		(0.38	)
From net realized gains		-			(0.44	)		(0.97	)		(0.30	)		-			-
Total Distributions Paid		(0.19	)		(0.83	)		(1.34	)		(0.76	)		(0.40	)		(0.38	)

Net Asset Value, End of Period		$13.65			$13.26			$12.06			$12.11			$12.11			$10.15

Total Return ⁽¹⁾		4.47	%		17.31	%		11.06	%		6.45	%		23.60	%		(7.77	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$548,924			$453,198			$363,336			$343,905			$319,188			$217,944
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers and reimbursements		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Expenses, before waivers and reimbursements		1.20	%		1.23	%		1.34	%		1.30	%		1.27	%		1.30	%
Net investment income, net of waivers and reimbursements		2.58	%		2.81	%		2.80	%		2.76	%		3.20	%		3.78	%
Net investment income, before waivers and reimbursements		2.38	%		2.58	%		2.46	%		2.46	%		2.93	%		3.48	%
Portfolio Turnover Rate		11.92	%		32.85	%		74.74	%		58.81	%		84.84	%		48.77	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 EQUITY FUNDS


	EQUITY FUNDS

		FINANCIAL HIGHLIGHTS (continued)



	INTERNATIONAL GROWTH EQUITY FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
Selected per share data	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003

Net Asset Value, Beginning of Period		$13.61			$12.62			$10.51			$9.35			$5.98			$7.93
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.12			0.16			0.11			0.09			-			0.05
Net realized and unrealized gains (losses)		1.30			2.25			2.09			1.13			3.39			(1.95	)

Total from Investment Operations		1.42			2.41			2.20			1.22			3.39			(1.90	)

LESS DISTRIBUTIONS PAID:
From net investment income ⁽¹⁾		-			(0.23	)		(0.09	)		(0.06	)		(0.02	)		(0.05	)
From net realized gains		-			(1.19	)		-			-			-			-

Total Distributions Paid		-			(1.42	)		(0.09	)		(0.06	)		(0.02	)		(0.05	)

Net Asset Value, End of Period		$15.03			$13.61			$12.62			$10.51			$9.35			$5.98

Total Return ⁽²⁾		10.43	%		19.63	%		21.00	%		13.05	%		56.78	%		(23.97	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,254,583			$1,201,357			$1,414,412			$1,282,892			$586,529			$168,651
Ratio to average net assets of: ⁽³⁾
Expenses, net of waivers and reimbursements		1.25	%		1.26	%⁽⁴⁾		1.25	%		1.25	%		1.25	%		1.26	%⁽⁴⁾
Expenses, before waivers and reimbursements		1.38	%		1.40	%		1.49	%		1.45	%		1.50	%		1.56	%
Net investment income, net of waivers and reimbursements		1.69	%		1.14	%		0.93	%		1.15	%		0.40	%		0.65	%
Net investment income, before waivers and reimbursements		1.56	%		1.00	%		0.69	%		0.95	%		0.15	%		0.35	%
Portfolio Turnover Rate		39.10	%		69.99	%		98.16	%		63.85	%		73.36	%		182.39	%


(1)		Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes.
(2)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(3)		Annualized for periods less than one year.
(4)		Expense ratios, net of waivers and reimbursements, for the years would have been 1.25%, absent the effect of interest expense incurred by the Fund’s temporary borrowings against a line of credit.

See Notes to the Financial Statements.

EQUITY FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT



	LARGE CAP VALUE FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
Selected per share data	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003

Net Asset Value, Beginning of Period		$13.70			$13.36			$13.44			$12.66			$8.93			$11.74
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.14			0.27			0.25			0.16			0.12			0.11
Net realized and unrealized gains (losses)		0.39			1.59			0.90			0.76			3.74			(2.81	)

Total from Investment Operations		0.53			1.86			1.15			0.92			3.86			(2.70	)


LESS DISTRIBUTIONS PAID:

From net investment income		-			(0.26	)		(0.23	)		(0.14	)		(0.13	)		(0.11	)

From net realized gains		-			(1.26	)		(1.00	)		-			-			-

Total Distributions Paid		-			(1.52	)		(1.23	)		(0.14	)		(0.13	)		(0.11	)

Net Asset Value, End of Period		$14.23			$13.70			$13.36			$13.44			$12.66			$8.93


Total Return ⁽¹⁾		3.94	%		14.04	%		8.96	%		7.31	%		43.33	%		(23.05	)%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$1,181,481			$1,171,644			$1,187,515			$1,175,150			$867,370			$428,735
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers and reimbursements		1.10	%		1.10	%		1.10	%		1.10	%		1.10	%		1.10	%
Expenses, before waivers and reimbursements		1.17	%		1.18	%		1.29	%		1.24	%		1.24	%		1.27	%
Net investment income, net of waivers and reimbursements		2.00	%		1.83	%		1.80	%		1.39	%		1.30	%		1.53	%
Net investment income, before waivers and reimbursements		1.93	%		1.75	%		1.61	%		1.25	%		1.16	%		1.36	%
Portfolio Turnover Rate		22.65	%		41.13	%		33.10	%		22.30	%		15.08	%		25.04	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 EQUITY FUNDS


	EQUITY FUNDS

		FINANCIAL HIGHLIGHTS (continued)



	MID CAP GROWTH FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
Selected per share data	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003

Net Asset Value, Beginning of Period		$15.80			$15.06			$12.91			$12.47			$9.07			$11.65
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.02	)		(0.03	)		(0.05	)		(0.10	)		(0.06	)		(0.09	)
Net realized and unrealized gains (losses)		2.26			0.77			2.20			0.54			3.46			(2.49	)

Total from Investment Operations		2.24			0.74			2.15			0.44			3.40			(2.58	)

Net Asset Value, End of Period		$18.04			$15.80			$15.06			$12.91			$12.47			$9.07

Total Return ⁽¹⁾		14.18	%		4.91	%		16.65	%		3.53	%		37.49	%		(22.15	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$197,517			$185,151			$319,933			$311,668			$365,064			$224,930
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers and reimbursements		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.01	%⁽³⁾
Expenses, before waivers and reimbursements		1.19	%		1.18	%		1.26	%		1.26	%		1.26	%		1.29	%
Net investment loss, net of waivers and reimbursements		(0.24	)%		(0.17	)%		(0.26	)%		(0.59	)%		(0.64	)%		(0.71	)%
Net investment loss, before waivers and reimbursements		(0.43	)%		(0.35	)%		(0.52	)%		(0.85	)%		(0.90	)%		(0.99	)%
Portfolio Turnover Rate		110.0	%		140.46	%		149.57	%		106.13	%		228.75	%		161.58	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.
(3)		Expense ratio, net of waivers and reimbursements, for the year would have been 1.00%, absent the effect of interest expense incurred by the Fund’s temporary borrowings against a line of credit.

See Notes to the Financial Statements.

EQUITY FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT


	SELECT EQUITY FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003

Net Asset Value, Beginning of Period		$20.91			$20.17			$18.11			$17.86			$14.84			$19.52
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income (loss)		0.05			0.08			0.04			0.07			(0.03	)		-
Net realized and unrealized gains (losses)		2.98			0.73			2.05			0.25			3.05			(4.68	)
Total from Investment Operations		3.03			0.81			2.09			0.32			3.02			(4.68	)

LESS DISTRIBUTIONS PAID:
From net investment income		-			(0.07	)		(0.03	)		(0.07	)		-			-
From net realized gains		-			-			-			-			-			-
Total Distributions Paid		-			(0.07	)		(0.03	)		(0.07	)		-			-

Net Asset Value, End of Period		$23.94			$20.91			$20.17			$18.11			$17.86			$14.84

Total Return ⁽¹⁾		14.44	%		4.09	%		11.56	%		1.76	%		20.35	%		(24.02	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$182,708			$178,752			$245,468			$307,334			$425,965			$394,283
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers and reimbursements		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Expenses, before waivers and reimbursements		1.25	%		1.25	%		1.27	%		1.42	%		1.32	%		1.40	%
Net investment income (loss), net of waivers and reimbursements		0.38	%		0.35	%		0.17	%		0.39	%		(0.15	)%		(0.06	)%
Net investment income (loss), before waivers and reimbursements		0.13	%		0.10	%		(0.10	)%		(0.03	)%		(0.47	)%		(0.46	)%
Portfolio Turnover Rate		60.51	%		148.99	%		145.09	%		206.70	%		200.55	%		187.80	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 EQUITY FUNDS


	EQUITY FUNDS

		FINANCIAL HIGHLIGHTS (continued)



	SMALL CAP GROWTH FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003

Net Asset Value, Beginning of Period		$13.77			$12.93			$10.32			$9.79			$6.74			$9.58
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.06	)		(0.12	)		(0.13	)		(0.26	)		(0.08	)		(0.12	)
Net realized and unrealized gains (losses)		0.81			0.96			2.74			0.79			3.13			(2.72	)
Total from Investment Operations		0.75			0.84			2.61			0.53			3.05			(2.84	)



Net Asset Value, End of Period		$14.52			$13.77			$12.93			$10.32			$9.79			$6.74


Total Return ⁽¹⁾		5.45	%		6.50	%		25.29	%		5.41	%		45.25	%		(29.65	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$51,726			$52,099			$68,010			$74,082			$178,801			$121,679
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers and reimbursements		1.25	%		1.25	%		1.25	%		1.26	%⁽³⁾		1.25	%		1.25	%
Expenses, before waivers and reimbursements		1.52	%		1.53	%		1.52	%		1.49	%		1.44	%		1.48	%
Net investment loss, net of waivers and reimbursements		(0.82	)%		(0.80	)%		(0.67	)%		(0.88	)%		(0.87	)%		(0.92	)%
Net investment loss, before waivers and reimbursements		(1.09	)%		(1.08	)%		(0.94	)%		(1.11	)%		(1.06	)%		(1.15	)%
Portfolio Turnover Rate		96.81	%		140.99	%		150.83	%		145.26	%		291.99	%		310.96	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.
(3)		Expense ratio, net of waivers and reimbursements, for the year would have been 1.25%, absent the effect of interest expense incurred by the Fund’s temporary borrowing against a line of credit.

See Notes to the Financial Statements.

EQUITY FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT


	SMALL CAP VALUE FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003

Net Asset Value, Beginning of Period		$16.62			$17.59			$15.15			$14.23			$9.00			$11.41
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment income		0.07			0.09			0.13			0.10			0.10			0.12
Net realized and unrealized gains (losses)		(0.53	)		0.91			3.57			1.76			5.23			(2.49	)
Total from Investment Operations		(0.46	)		1.00			3.70			1.86			5.33			(2.37	)

LESS DISTRIBUTIONS PAID:
From net investment income		-			(0.12	)		(0.08	)		(0.14	)		(0.10	)		(0.04	)
From net realized gains		-			(1.85	)		(1.18	)		(0.80	)		-			-
Total Distributions Paid		-			(1.97	)		(1.26	)		(0.94	)		(0.10	)		(0.04	)

Net Asset Value, End of Period		$16.16			$16.62			$17.59			$15.15			$14.23			$9.00

Total Return ⁽¹⁾		(2.77	)%		5.78	%		25.55	%		13.11	%		59.34	%		(20.76	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,041,181			$951,307			$611,728			$482,494			$396,966			$235,801
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers and reimbursements		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%		1.00	%
Expenses, before waivers and reimbursements		1.20	%		1.24	%		1.28	%		1.28	%		1.27	%		1.40	%
Net investment income, net of waivers and reimbursements		0.78	%		0.68	%		0.85	%		0.79	%		0.91	%		1.18	%
Net investment income, before waivers and reimbursements		0.58	%		0.44	%		0.57	%		0.51	%		0.64	%		0.78	%
Portfolio Turnover Rate		25.20	%		41.07	%		31.58	%		23.07	%		50.46	%		69.44	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 EQUITY FUNDS


	EQUITY FUNDS

		FINANCIAL HIGHLIGHTS (continued)



	TECHNOLOGY FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003

Net Asset Value, Beginning of Period		$12.38			$12.22			$10.48			$11.52			$7.39			$11.46
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.03	)		(0.10	)		(0.11	)		(0.14	)		(0.11	)		(0.11	)
Net realized and unrealized gains (losses)		2.07			0.26			1.85			(0.90	)		4.24			(3.96	)
Total from Investment Operations		2.04			0.16			1.74			(1.04	)		4.13			(4.07	)


Net Asset Value, End of Period		$14.42			$12.38			$12.22			$10.48			$11.52			$7.39

Total Return ⁽¹⁾		16.48	%		1.31	%		16.60	%		(9.03	)%		55.89	%		(35.57	)%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$151,468			$146,537			$209,298			$255,160			$400,847			$277,679
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers and reimbursements		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%		1.25	%
Expenses, before waivers and reimbursements		1.40	%		1.38	%		1.43	%		1.48	%		1.47	%		1.53	%
Net investment loss, net of waivers and reimbursements		(0.47	)%		(0.68	)%		(0.54	)%		(0.69	)%		(0.92	)%		(0.90	)%
Net investment loss, before waivers and reimbursements		(0.62	)%		(0.81	)%		(0.72	)%		(0.92	)%		(1.14	)%		(1.18	)%
Portfolio Turnover Rate		55.63	%		84.66	%		75.95	%		29.78	%		60.58	%		61.72	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

EQUITY FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT


	EQUITY FUNDS

SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


EMERGING MARKETS EQUITY FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9%
Argentina - 0.1%
BBVA Banco Frances S.A. ADR		10,200		$91
Petroleo Brasileiro S.A. ADR		25,900		260
Telecom Argentina S.A. ADR *		22,020		541

				892

Bermuda - 0.3%
Central European Media Enterprises Ltd., Class A		5,600		525
Credicorp Ltd.		19,725		1,335

				1,860

Brazil - 4.7%
All America Latina Logistica S.A.		75,600		1,077
B2W Companhia Global Do Varejo		10,600		500
Banco Nossa Caixa S.A.		4,600		81
Brasil Telecom Participacoes S.A.		8,454		226
Centrais Eletricas Brasileiras S.A.		48,132		706
Cia de Concessoes Rodoviarias		25,700		517
Cia de Saneamento Basico do Estado de Sao Paulo		23,983		601
Cia Siderurgica Nacional S.A.		25,300		1,778
Cia Vale do Rio Doce		272,854		9,222
Cosan SA Industria e Comercio		11,600		158
CPFL Energia S.A.		22,400		434
Cyrela Brazil Realty S.A.		40,200		548
Diagnosticos da America S.A.		6,100		140
EDP – Energias do Brasil S.A.		12,200		203
Empresa Brasileira de Aeronautica S.A.		91,600		1,009
Gafisa S.A.		18,215		307
Gerdau S.A.		10,200		221
Lojas Renner S.A.		26,400		529
Natura Cosmeticos S.A.		22,900		275
Perdigao S.A.		20,142		439
Petroleo Brasileiro S.A. – Petrobras		229,766		8,687
Redecard S.A. *		34,355		641
Souza Cruz S.A.		14,900		387
Tele Norte Leste Participacoes S.A.		12,900		429
Tractebel Energia S.A.		23,700		292
Unibanco – Uniao de Bancos Brasileiros S.A.		216,300		2,866

				32,273

Cayman Islands - 0.2%
Agile Property Holdings Ltd.		324,000		680
Hengan International Group Ltd.		132,000		496


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
Cayman Islands - 0.2% – (continued)
Li Ning Co Ltd.		142,000		$491

				1,667

Chile - 1.3%
Banco de Credito e Inversiones		6,118		192
Banco Santander Chile S.A.		6,181,117		299
Banco Santander Chile S.A. ADR		3,400		172
CAP S.A.		15,083		428
Centros Comerciales Sudamericanos S.A.		160,673		632
Cia Cervecerias Unidas S.A. ADR		1,900		73
Cia de Telecomunicaciones de Chile S.A. ADR		10,100		83
Cia de Telecomunicaciones de Chile S.A., Class A		69,928		144
Cia Sudamericana de Vapores S.A. *		73,082		184
Colbun S.A.		1,194,799		268
Compania Cervecerias Unidas S.A.		16,066		119
CorpBanca S.A.		15,176,234		113
Cristalerias de Chile S.A.		5,733		81
Distribucion y Servicio D&S S.A.		348,895		176
Distribucion y Servicio D&S S.A. ADR		3,300		100
Empresa Nacional de Electricidad S.A. ADR		7,700		331
Empresa Nacional de Electricidad S.A./Chile		430,434		615
Empresa Nacional de Telecomunicaciones S.A.		19,097		321
Empresas CMPC S.A.		18,166		651
Empresas COPEC S.A.		91,831		1,486
Empresas Iansa S.A.		243,229		23
Enersis S.A. ADR		18,200		323
Enersis S.A./Chile		1,713,557		607
Inversiones Aguas Metropolitanas S.A.		91,087		114
Lan Airlines S.A.		16,737		267
Lan Airlines S.A. ADR		9,000		144
Madeco S.A. *		566,281		70
Masisa S.A.		553,522		135
Parque Arauco S.A.		67,431		82
SACI Falabella		57,877		287
Sociedad Quimica y Minera de Chile S.A. ADR		900		156
Vina Concha y Toro S.A.		90,632		211

				8,887

China - 9.7%
Air China Ltd.		528,000		754
Aluminum Corp. of China Ltd.		634,000		1,823
Angang New Steel Co. Ltd.		188,000		728
Anhui Conch Cement Co. Ltd.		92,000		797

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


	EMERGING MARKETS EQUITY FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
China - 9.7% – (continued)
Bank of China Ltd.		4,590,146	$	2,457
Bank of Communications Co. Ltd.		1,163,000		1,404
Beijing Capital International Airport Co. Ltd.		344,000		716
Byd Co. Ltd.		26,000		194
China Citic Bank *		996,000		774
China Communications Construction Co. Ltd.		870,000		2,069
China Construction Bank		4,975,643		4,540
China Eastern Airlines Corp. Ltd. *		236,000		245
China Life Insurance Co. Ltd.		1,427,502		8,202
China Petroleum & Chemical Corp.		3,378,751		4,222
China Shenhua Energy Co. Ltd.		652,000		3,918
China Shipping Container Lines Co. Ltd.		675,800		524
China Shipping Development Co. Ltd.		280,000		908
China Southern Airlines Co. Ltd. *		188,000		292
China Telecom Corp. Ltd., Class H		2,800,000		2,111
COSCO Holdings		521,250		1,630
Country Garden Holdings Co Ltd. *		628,000		1,068
Datang International Power Generation Co. Ltd.		614,000		706
Dongfeng Motor Group Co. Ltd.		614,000		540
FU JI Food and Catering Services Holdings Ltd.		34,000		105
Guangshen Railway Co. Ltd.		288,000		248
Guangzhou R&F Properties Co. Ltd.		216,800		1,024
Huadian Power International Co.		216,000		138
Huaneng Power International, Inc.		644,000		890
Hunan Non-Ferrous Metal Corp. Ltd.		254,000		262
Industrial & Commercial Bank of China		5,852,000		4,104
Jiangsu Express		268,000		345
Jiangxi Cooper Co. Ltd.		295,000		955
Maanshan Iron & Steel		352,000		385
PetroChina Co. Ltd.		3,823,038		7,251
PICC Property & Casualty Co., Ltd.		462,000		899
Ping An Insurance Group Co. of China Ltd.		283,000		3,918
Semiconductor Manufacturing International Corp. *		3,481,000		412
Shanghai Electric Group Co. Ltd.		530,000		413
Shanghai Forte Land Co.		140,000		112
Shenzhen Expressway Co. Ltd.		106,000		110
Shimao Property Holdings Ltd		317,000		965
Sinopec Shanghai Petrochemical Co. Ltd.		456,000		374
Sinopec Yizheng Chemical Fibre Co. Ltd. *		220,000		118
Sinotrans Ltd.		228,000		140
Travelsky Technology Ltd.		72,000		77
Tsingtao Brewery Co. Ltd.		52,000		189


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
China - 9.7% – (continued)
Weichai Power Co. Ltd.		20,000		$159
Weiqiao Textile Co.		69,000		130
Xinao Gas Holdings Ltd.		104,000		212
Yanzhou Coal Mining Co. Ltd.		390,000		803
Zhejiang Expressway Co. Ltd.		297,000		422
Zijin Mining Group Co. Ltd.		864,000		1,343
ZTE Corp.		29,800		157

				67,282

Colombia - 0.3%
BanColombia S.A.		52,000		1,802

Czech Republic - 0.6%
CEZ		41,670		2,563
Komercni Banka A/S		3,010		702
Philip Morris CR A/S		100		51
Telefonica O2 Czech Republic A/S		22,740		643
Unipetrol *		12,630		200
Zentiva N.V.		4,760		291

				4,450

Egypt - 0.8%
Alexandria Mineral Oils Co.		2,889		37
Commercial International Bank		31,687		437
Credit Agricole Egypt SAE		9,223		29
Eastern Tobacco		2,336		167
Egypt Kuwait Holding Co.		97,800		208
Egyptian Co. for Mobile Services		7,114		238
Egyptian Financial Group-Hermes Holding		39,127		318
Egyptian International Pharmaceutical Industrial Co.		5,728		29
EL Ezz Aldekhela Steel Alexandria		592		109
El Ezz Steel Rebars SAE		17,583		167
El Watany Bank of Egypt		11,773		158
Medinet Nasr Housing		6,530		57
Misr Beni Suef Cement Co.		2,363		55
Olympic Group Financial Investments		8,246		103
Orascom Construction Industries		16,309		1,368
Orascom Hotels & Development *		17,627		207
Orascom Telecom Holding SAE		99,915		1,305
Oriental Weavers		3,320		38
Sidi Kerir Petrochemcials Co.		26,431		82
Telecom Egypt		69,161		211

				5,323

See Notes to the Financial Statements.

EQUITY FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
Hong Kong - 5.8%
Beijing Enterprises Holdings Ltd.		56,000		$285
Brilliance China Automotive Holdings Ltd. *		322,000		89
Chaoda Modern Agriculture		390,000		317
China Agri-Industries Holdings Ltd. *		318,000		218
China Everbright Ltd. *		158,000		563
China Mengniu Dairy Co. Ltd.		214,000		932
China Merchants Holdings International Co. Ltd.		211,394		1,315
China Mobile Ltd.		1,208,486		19,796
China Overseas Land & Investment Ltd.		714,000		1,630
China Resources Enterprise Ltd., Class H		242,000		1,028
China Resources Land Ltd.		366,000		763
China Resources Power Holdings Co.		250,000		777
China Travel International Inv HK		640,000		474
Citic Pacific Ltd.		231,000		1,474
CNOOC Ltd.		3,052,604		5,130
Cofco International Ltd. *		130,000		83
Cosco Pacific Ltd.		242,000		766
Denway Motors Ltd.		1,076,000		624
Global Bio-Chem Technology Group Co. Ltd.		192,000		74
GOME Electrical Appliances Holdings Ltd.		228,000		448
Guangdong Investment Ltd.		540,000		370
Guangzhou Investment Co. Ltd.		650,000		203
Hopson Development Holdings Ltd.		126,000		420
Nine Dragons Paper Holdings Ltd.		276,000		863
Shanghai Industrial Holdings Ltd.		116,000		579
Shenzhen Investment Ltd.		298,000		266
Sinochem Hong Kong Holding Ltd.		372,000		292
TPV Technology Ltd.		220,000		159

				39,938

Hungary - 0.9%
Gedeon Richter Nyrt.		2,835		606
Magyar Telekom Telecommunications PLC		94,721		528
MOL Hungarian Oil and Gas Nyrt.		12,137		1,967
OTP Bank PLC		53,547		2,909

				6,010

India - 6.7%
ABB Ltd./India		10,950		356
ACC Ltd.		10,501		315
Aditya Birla Nuvo Ltd.		7,383		282
Ashok Leyland Ltd.		84,716		97
Asian Paints Ltd.		4,993		124
AXIS Bank		38,188		733


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
India - 6.7% – (continued)
Bajaj Auto Ltd.		5,993		$382
Bharat Electronics Ltd.		2,919		135
Bharat Forge Ltd.		17,026		122
Bharat Heavy Electricals Ltd.		23,714		1,212
Bharat Petroleum Corp. Ltd.		17,170		154
Cipla Ltd./India		64,327		294
Dish TV India Ltd. *		37,093		69
Dr Reddy’s Laboratories Ltd.		5,913		96
Dr. Reddy’s Laboratories Ltd. ADR		17,180		281
GAIL India Ltd.		53,531		509
GlaxoSmithKline Pharmaceuticals Ltd.		4,484		126
Glenmark Pharmaceutical Ltd		19,434		206
Grasim Industries Ltd.		7,217		636
Gujarat Ambuja Cements Ltd.		126,729		459
HDFC Bank Ltd.		12,886		464
HDFC Bank Ltd. ADR		10,670		1,143
Hero Honda Motors Ltd.		16,224		304
Hindalco Industries		109,144		472
Hindustan Lever Ltd.		178,181		986
Hindustan Petroleum Corp. Ltd.		12,682		85
Housing Development Finance Corp.		38,312		2,430
ICICI Bank Ltd.		62,048		1,654
ICICI Bank Ltd. ADR		45,764		2,413
Indiabulls Financial Services Ltd.		26,827		403
Indiabulls Real Estate Ltd. *		31,376		539
Indian Hotels Co. Ltd.		51,503		178
Indian Petrochemicals Co.		20,560		237
Infosys Technologies Ltd.		30,910		1,468
Infosys Technologies Ltd. ADR		61,349		2,969
Infrastructure Development Finance Co. Ltd.		122,258		433
ITC Ltd.		220,226		1,049
Jaiprakash Associates Ltd.		19,780		544
Jindal Steel & Power Ltd.		2,372		309
Kotak Mahindra Bank Ltd.		23,286		539
Larsen & Toubro Ltd.		21,714		1,530
Mahanagar Telephone Nigam		6,515		26
Mahanagar Telephone Nigam ADR		15,400		121
Mahindra & Mahindra Ltd.		29,952		565
Maruti Udyog Ltd.		14,604		366
Nestle India Ltd.		5,107		170
Oil & Natural Gas Corp. Ltd.		52,122		1,253
Ranbaxy Laboratories Ltd. GDR		30,357		331

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		EMERGING MARKETS EQUITY FUND (continued)



	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.9% – CONTINUED
India - 6.7% – (continued)
Reliance Capital Ltd.		22,311		$887
Reliance Communications Ltd.		123,811		1,823
Reliance Energy Ltd.		20,277		613
Reliance Industries Ltd.		28,803		1,661
Reliance Industries Ltd., GDR (London Exchange) ⁽¹⁾		44,845		5,135
Reliance Industries Ltd., GDR (OTC Exchange) ⁽¹⁾		4,000		461
Satyam Computer Services Ltd.		26,666		298
Satyam Computer Services Ltd. ADR		28,660		742
Siemens India Ltd.		8,722		296
State Bank of India Ltd.		11,222		548
Sun Pharmaceuticals Industries Ltd.		11,773		285
Tata Consultancy Services Ltd.		26,143		695
Tata Motors Ltd.		10,682		208
Tata Motors Ltd. ADR		27,750		531
Tata Power Compnay Ltd.		13,389		287
Tata Steel Ltd.		29,055		620
Tata Tea Ltd.		5,089		103
Ultra Tech Cement Ltd.		6,436		169
Unitech Ltd.		69,178		534
Videocon Industries Ltd.		12,390		116
Videsh Sanchar Nigam Ltd.		9,892		109
Wipro Ltd.		24,958		288
Wipro Ltd. ADR		28,240		408
Zee Entertainment Enterprises Ltd.		41,439		355

				46,741

Indonesia - 1.5%
Aneka Tambang Tbk PT		675,000		205
Astra Agro Lestari Tbk PT		80,000		147
Astra International Tbk PT		408,500		860
Bank Central Asia Tbk PT		1,232,000		828
Bank Danamon Indonesia Tbk PT		363,000		335
Bank Internasional Indonesia Tbk PT		3,656,000		94
Bank Mandiri Persero Tbk PT		1,451,000		559
Bank Pan Indonesia Tbk PT *		1,151,000		88
Bank Rakyat Indonesia		1,105,500		798
Berlian Laju Tanker Tbk PT		431,000		92
Bumi Resources Tbk PT		3,525,000		1,378
Energi Mega Persada Tbk PT *		858,000		80
Gudang Garam Tbk PT		116,000		119
Indocement Tunggal Prakarsa Tbk PT		187,000		125
Indofood Sukses Makmur Tbk PT		918,500		194



	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.9% – CONTINUED
Indonesia - 1.5% – (continued)
Indosat Tbk PT		493,500		$415
International Nickel Indonesia Tbk PT		41,500		288
Kalbe Farma Tbk PT		1,039,000		151
Perusahaan Gas Negara PT		412,500		544
Ramayana Lestari Sentosa TbK PT		477,000		44
Semen Gresik Persero Tbk PT		290,000		168
Telekomunikasi Indonesia Tbk PT		2,029,321		2,441
Unilever Indonesia Tbk PT		317,000		236
United Tractors Tbk PT		264,000		237

				10,426

Israel - 2.1%
Africa Israel Investments Ltd.		2,615		241
Aladdin Knowledge Systems Ltd. *		2,001		45
Alvarion Ltd. *		11,280		164
AudioCodes Ltd. *		4,300		23
Bank Hapoalim BM		190,856		974
Bank Leumi Le-Israel BM		171,277		749
Bezeq Israeli Telecommunication Corp. Ltd.		210,330		360
Check Point Software Technologies *		36,739		925
Clal Industries and Investments		12,062		69
Clal Insurance		4,151		108
Discount Investment Corp.		5,005		155
ECI Telecom Ltd. *		12,599		125
Elbit Systems Ltd.		4,681		219
Given Imaging Ltd. *		2,391		66
Harel Insurance Investments Ltd.		1,339		74
IDB Development Corp. Ltd.		3,825		129
Israel (The) Corp. Ltd		460		371
Israel Chemicals Ltd.		104,149		955
Israel Discount Bank Ltd. *		93,192		211
Koor Industries Ltd.		1,775		141
Makhteshim-Agan Industries Ltd. *		58,625		519
Migdal Insurance Holdings Ltd.		49,482		83
Mizrahi Tefahot Bank Ltd.		24,435		182
Nice Systems Ltd. *		10,639		386
Orbotech Ltd. *		6,227		131
Partner Communications		16,308		271
RADWARE Ltd. *		2,592		41
Retalix Ltd. *		3,097		57
Strauss-Elite Ltd. *		4,468		60
Super-Sol Ltd. *		13,878		53
Syneron Medical Ltd. *		4,488		106


		See Notes to the Financial Statements.

EQUITY FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)



	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.9% – CONTINUED
Israel - 2.1% – (continued)
Teva Pharmaceutical Industries Ltd.		152,673		$6,773

				14,766

Luxembourg - 0.5%
Tenaris S.A. ADR		62,199		3,273

Malaysia - 2.3%
AirAsia Bhd. *		179,000		96
AMMB Holdings Bhd.		285,100		363
Astro All Asia Networks PLC		82,300		85
Berjaya Sports Toto Bhd.		152,600		224
British American Tobacco Malaysia Bhd.		26,200		317
Bumiputra-Commerce Holdings Bhd.		510,100		1,602
Bursa Malaysia Bhd.		69,000		223
DRB-Hicom Bhd.		100,000		56
Gamuda Bhd.		159,400		412
Genting Bhd		373,000		881
Golden Hope Plantations Bhd.		123,400		308
Guinness Anchor Bhd.		21,000		37
Highlands & Lowlands Bhd.		27,000		62
Hong Leong Bank Bhd.		91,600		159
Hong Leong Financial Group Bhd.		34,000		58
IGB Corp. Bhd.		156,000		127
IJM Corp. Bhd.		113,500		265
IOI Corp. Bhd		660,350		1,173
IOI Properties Bhd.		15,000		56
KLCC Property Holdings Bhd.		76,000		76
Kuala Lumpur Kepong Bhd.		86,150		334
Lafarge Malayan Cement Bhd.		236,000		125
Magnum Corp. Bhd.		153,000		130
Malayan Banking Bhd.		392,700		1,268
Malaysia International Shipping Corp. Bhd. (MISC)		225,600		649
Malaysian Airline System Bhd. *		54,000		68
Malaysian Bulk Carriers Bhd.		55,750		72
Malaysian Pacific Industries		13,000		35
Malaysian Resources Corp Bhd. *		160,000		118
Media Prima Bhd.		129,000		108
MMC Corp. Bhd.		58,200		144
Mulpha International Bhd. *		164,000		68
Multi-Purpose Holdings Bhd.		95,000		51
Petronas Dagangan Bhd.		53,600		138
Petronas Gas BHD		100,900		329
PLUS Expressways BHD		317,000		296



	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.9% – CONTINUED
Malaysia - 2.3% – (continued)
POS Malaysia & Services Holdings Bhd. *		55,000		$49
PPB Group Bhd.		100,000		270
Proton Holdings Bhd. *		53,000		82
Public Bank Bhd.		210,000		647
Resorts World Bhd		538,500		620
RHB Capital BHD		78,000		137
Scomi Group Bhd.		109,000		46
Shell Refining Co. Federation of Malaya Bhd.		30,000		97
Sime Darby Bhd.		307,200		938
SP Setia Bhd.		105,400		272
Star Publications Malaysia BHD		82,000		81
TA Enterprise Bhd.		133,000		57
Tanjong PLC		45,600		239
Telekom Malaysia BHD		207,100		590
Tenaga Nasional Bhd.		261,400		725
UEM World Bhd		125,000		150
UMW Holdings Bhd.		49,000		203
YTL Corp. Bhd.		168,400		371

				16,087

Mexico - 4.8%
Alfa S.A. de C.V., Class A		66,000		446
America Movil S.A. de C.V., Series L		3,712,417		11,884
Carso Infraestructura Construccion SA de CV		134,000		135
Cemex S.A. de C.V., CPO *		1,428,840		4,268
Coca-Cola Femsa S.A. de CV, Series L		51,000		219
Consorcio ARA SAB de CV		169,000		226
Controladora Comercial Mexicana S.A. de C.V., UBC		67,000		178
Corp. GEO S.A. de C.V., Series B *		89,000		391
Desarrolladora Homex S.A. de C.V. *		31,000		287
Empresas ICA Sociedad Controladora S.A. de C.V. *		73,000		440
Fomento Economico Mexicano S.A. de C.V., UBD		436,000		1,625
Grupo Aeroportuario del Pacifico S.A. de C.V., Class B		98,000		536
Grupo Aeroportuario del Sureste S.A. de C.V., Class B		46,000		228
Grupo Bimbo SAB De CV, Series A *		57,000		318
Grupo Bimbo S.A. de CV, Series A		2,000		11
Grupo Carso S.A. de C.V., Series A1		127,000		484
Grupo Financiero Banorte S.A. de C.V.		265,000		1,050
Grupo Mexico SAB de C.V., Series B		257,000		1,845
Grupo Modelo S.A., Series C		106,000		509


		See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		EMERGING MARKETS EQUITY FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
Mexico - 4.8% – (continued)
Grupo Televisa S.A., Series CPO		496,612		$2,387
Industrias Penoles S.A. de C.V.		20,000		336
Kimberly-Clark de Mexico S.A. de C.V., Class A		101,000		460
Telefonos de Mexico S.A. de C.V., Series L		1,527,388		2,505
Urbi Desarrollos Urbanos S.A. de C.V *		72,000		259
Wal-Mart de Mexico S.A. de C.V., Series V		622,971		2,285

				33,312

Morocco - 0.3%
Attijariwafa Bank		583		237
Banque Marocaine du Commerce Exterieur		802		303
Brasseries Maroc		100		23
Douja Promotion Groupe Addoha S.A.		930		396
Holcim Maroc S.A.		323		117
Lafarge Ciments/Morocco		131		94
Managem		366		26
Marco Telecom		35,551		624
ONA S.A.		857		177
Samir		524		54
Societe Nationale d’Investissement		257		55
Sonasid		227		89

				2,195

Pakistan - 0.2%
Engro Chemical Pakistan Ltd.		19,535		84
Fauji Fertilizer Co Ltd.		39,300		74
Faysal Bank Ltd.		30,625		38
HUB Power Co.		96,195		53
Lucky Cement Ltd		31,900		67
MCB Bank Ltd.		50,852		279
National Bank Of Pakistan		34,550		139
Nishat Mills Ltd.		12,500		24
Oil & Gas Development Co Ltd.		118,351		224
Pakistan Petroleum Ltd.		12,000		53
Pakistan State Oil Co Ltd.		17,635		105
Pakistan Telecommunication Co. Ltd.		94,122		81
SUI Northern Gas Pipeline		21,044		22
United Bank Ltd.		31,762		94

				1,337

Philippines - 0.5%
Ayala Corp.		29,180		356
Ayala Land, Inc.		1,048,580		378
Banco de Oro Universal Bank		115,100		151
Bank of the Philippine Islands		218,340		322


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
Philippines - 0.5% – (continued)
Filinvest Land, Inc. *		1,465,000		$57
First Philippine Holdings Corp.		46,800		81
Globe Telecom, Inc.		5,580		182
Jollibee Foods Corp.		70,400		83
Manila Electric Co.		73,480		135
Megaworld Corp.		1,645,000		126
Metropolitan Bank & Trust		115,700		144
Petron Corp.		334,000		42
Philippine Long Distance Telephone Co.		11,420		738
PNOC Energy Development Corp.		1,248,000		177
San Miguel Corp., Class B		48,600		67
SM Investments Corp.		30,827		255
SM Prime Holdings		794,251		212

				3,506

Poland - 1.6%
Agora S.A.		7,992		155
Asseco Poland S.A		5,728		161
Bank BPH		1,739		599
Bank Pekao S.A.		15,177		1,411
Bank Zachodni WBK S.A.		4,564		437
Bioton S.A. *		249,810		113
Boryszew S.A. *		4,024		28
BRE Bank S.A. *		1,838		356
Budimex S.A. *		2,105		57
Computerland		1,026		20
Debica		1,185		45
Echo Investment S.A. *		5,250		177
Globe Trade Centre S.A. *		24,354		438
Grupa Kety S.A.		1,948		143
KGHM Polska Miedz S.A.		24,222		1,133
Mondi Packaging Paper Swiecie S.A.		2,328		75
Orbis S.A.		5,412		152
PBG S.A. *		1,801		245
Polish Oil & Gas Co.		240,993		459
Polska Grupa Farmaceutycz		1,854		66
Polski Koncern Naftowy Orlen *		64,749		1,361
Powszechna Kasa Oszczednosci Bank Polski S.A.		100,651		2,104
Prokom Software S.A.		2,263		116
Telekomunikacja Polska S.A.		141,294		1,121
TVN S.A.		32,416		268

				11,240

See Notes to the Financial Statements.

EQUITY FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
Russia - 8.6%
Comstar United Telesystems, GDR		33,831		$438
LUKOIL		10,728		894
LUKOIL ADR (London Exchange)		63,640		5,289
LUKOIL ADR (OTC Exchange)		19,800		1,636
Mechel OAO		6,631		338
MMC Norilsk Nickel		3,395		869
MMC Norilsk Nickel ADR		13,920		3,765
Mobile Telesystems ADR		40,126		2,781
NovaTek OAO, GDR (Registered)		15,352		806
Novolipetsk Steel, GDR (London Exchange)		9,200		309
Novolipetsk Steel, GDR (Registered)		7,117		242
OAO Gazprom		194,605		2,147
OAO Gazprom ADR (London Exchange)		420,720		18,554
OAO Gazprom ADR (OTC Exchange)		7,800		339
Polyus Gold Co.		1,357		60
Polyus Gold Co. ADR		14,667		641
Rostelecom		6,913		73
Rostelecom ADR		11,710		736
Sberbank RF		1,738,206		7,248
Severstal		2,846		60
Severstal GDR		38,330		813
Sibirtelecom		862,632		93
Sistema JSFC		19,904		662
Surgutneftegaz		177,016		242
Surgutneftegaz ADR (London Exchange)		600		41
Surgutneftegaz ADR (OTC Exchange)		24,655		1,683
Surgutneftegaz ADR (Preferred)		13,130		916
Tatneft		11,399		63
Tatneft, GDR		12,895		1,418
Unified Energy System *		169,909		206
Unified Energy System GDR (Registered) *		1,300		157
Unified Energy System, ADR		14,728		1,789
Uralsvyazinform ADR		11,600		147
Vimpel-Communications ADR		92,905		2,512
VolgaTelecom		15,348		80
VTB Bank OJSC		329,767,481		1,517
VTB Bank OJSC GDR ⁽¹⁾*		5,276		49
Wimm-Bill-Dann Foods OJSC ADR		3,350		366

				59,979

South Africa - 6.7%
African Bank Investments Ltd.		95,468		435
Allan Gray Property Trust		174,820		172


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
South Africa - 6.7% – (continued)
Anglo Platinum Corp. Ltd.		14,085		$2,136
Anglogold Ashanti Ltd.		31,288		1,485
Aspen Pharmacare Holdings Ltd. *		40,389		197
Aveng Ltd.		83,659		669
AVI Ltd.		56,765		178
Barloworld Ltd.		41,050		774
Bidvest Group Ltd.		52,614		1,037
Ellerine Holdings Ltd.		23,188		249
FirstRand Ltd.		565,245		1,817
Foschini Ltd.		43,884		332
Gold Fields Ltd.		123,602		2,232
Grindrod Ltd.		60,053		225
Harmony Gold Mining Co. Ltd. *		70,939		842
Impala Platinum Holdings Ltd.		107,952		3,769
Imperial Holdings Ltd.		36,766		690
Investec Ltd.		34,317		369
JD Group Ltd.		37,282		316
Kumba Iron Ore Ltd.		15,686		516
Lewis Group Ltd.		17,272		142
Liberty Group Ltd.		21,853		278
Massmart Holdings Ltd.		42,346		514
Metropolitan Holdings Ltd.		112,409		249
Mittal Steel South Africa Ltd.		41,755		833
Mondi Ltd.		28,080		279
MTN Group Ltd.		299,582		4,554
Murray & Roberts Holdings Ltd.		60,765		794
Nampak Ltd.		99,783		314
Naspers Ltd.		69,602		1,934
Nedbank Group Ltd.		42,860		779
Network Healthcare Holdings Ltd. *		244,965		425
Pick’n Pay Stores Ltd.		41,611		216
Pretoria Portland Cement Co. Ltd.		110,121		766
Reunert Ltd.		34,924		340
Sanlam Ltd.		468,966		1,519
Sappi Ltd.		41,980		638
Sasol Ltd.		119,919		5,164
Shoprite Holdings Ltd.		90,679		475
Spar Group (The) Ltd.		32,796		263
Standard Bank Group Ltd.		246,908		3,572
Steinhoff International Holdings Ltd.		205,150		582
Super Group Ltd.		44,499		84
Telkom S.A. Ltd.		60,087		1,517

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		EMERGING MARKETS EQUITY FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
South Africa - 6.7% – (continued)
Tiger Brands Ltd.		33,679		$891
Truworths International Ltd.		95,052		437
Woolworths Holdings Ltd.		170,287		448

				46,447


South Korea - 14.8%
Amorepacific Corp.		689		514
Asiana Airlines		12,390		115
Cheil Communications, Inc.		616		182
Cheil Industries, Inc.		9,870		660
CJ CheilJedang Corp. *		1,575		396
CJ Corp.		2,682		207
Daegu Bank		23,930		443
Daelim Industrial Co.		5,670		1,050
Daewoo Engineering & Construction Co. Ltd.		32,500		932
Daewoo International Corp.		8,730		366
Daewoo Securities Co. Ltd.		23,020		692
Daewoo Shipbuilding & Marine Engineering Co. Ltd.		19,260		1,219
Daishin Securities Co. Ltd.		7,090		235
Daum Communications Corp. *		1,417		107
Dongbu Insurance Co. Ltd.		7,470		313
Dongkuk Steel Mill Co. Ltd.		7,990		422
Doosan Heavy Industries and Construction Co. Ltd.		6,890		728
Doosan Infracore Co. Ltd.		16,520		642
GS Engineering & Construction Corp.		7,510		1,305
Hana Financial Group, Inc.		24,520		1,156
Hanjin Heavy Industries & Construction Co. Ltd. *		6,094		543
Hanjin Heavy Industries & Construction Holdings Co. Ltd.		2,253		94
Hanjin Heavy Industries and Construction Co. Ltd.		11,840		582
Hankook Tire Co. Ltd.		20,770		426
Hanmi Pharm Co. Ltd.		943		143
Hanwha Chem Corp.		9,350		247
Hanwha Corp.		9,830		772
Hite Brewery Co. Ltd.		2,524		353
Honam Petrochemical Corp.		2,990		493
Hyosung Corp.		3,910		296
Hyundai Autonet Co. Ltd.		15,140		116
Hyundai Department Store Co. Ltd.		2,670		321
Hyundai Development Co.		12,900		1,205


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
South Korea - 14.8% – (continued)
Hyundai Engineering & Construction Co. Ltd. *		9,330		$891
Hyundai Heavy Industries		8,412		3,888
Hyundai Marine & Fire Insurance Co. Ltd.		13,360		263
Hyundai Merchant Marine Co. Ltd.		7,480		395
Hyundai Mipo Dockyard		2,590		891
Hyundai Mobis		11,432		1,213
Hyundai Motor Co. Ltd.		30,922		2,497
Hyundai Securities Co.		25,570		596
Hyundai Steel Co.		10,880		918
Kangwon Land, Inc.		23,660		698
KCC Corp.		1,010		617
KIA Motors Corp. *		41,610		566
Kookmin Bank		67,915		5,655
Korea Electric Power Corp.		51,656		2,421
Korea Exchange Bank		48,880		793
Korea Investment Holdings Co. Ltd.		8,340		549
Korea Zinc Co. Ltd.		2,310		437
Korean Air Lines Co. Ltd.		7,888		533
Korean Reinsurance Co.		11,450		162
KT Corp.		28,100		1,411
KT Freetel Co. Ltd.		16,860		612
KT&G Corp.		22,258		1,739
LG Chem Ltd.		8,670		909
LG Electronics, Inc.		18,924		1,768
LG Fashion Corp.		3,447		114
LG Household & Health Care Ltd.		2,244		405
LG International Corp.		4,902		155
LG Petrochemical Co. Ltd.		6,510		324
LG.Philips LCD Co. Ltd. *		22,640		1,084
Lotte Chilsung Beverage Co. Ltd.		100		153
Lotte Confectionery Co. Ltd.		150		261
Lotte Shopping Co. Ltd.		1,884		803
LS Cable Ltd.		3,460		431
Mirae Asset Securities Co. Ltd.		3,652		349
NCSoft Corp. *		2,990		265
NHN Corp. *		7,844		1,815
Nong Shim Co. Ltd.		518		128
Orion Corp.		590		179
Pacific Corp.		320		67
Poongsan Corp.		3,380		95
POSCO		14,919		10,971
Pusan Bank		24,410		448

See Notes to the Financial Statements.

EQUITY FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
South Korea - 14.8% – (continued)
S-Oil Corp.		9,510		$846
S1 Corp. of Korea		2,960		178
Samsung Corp.		26,800		1,971
Samsung Electro-Mechanics Co. Ltd.		12,060		792
Samsung Electronics Co. Ltd.		22,238		13,972
Samsung Engineering Co. Ltd.		6,400		860
Samsung Fine Chemicals Co. Ltd.		2,650		177
Samsung Fire & Marine Insurance Co. Ltd.		7,388		1,590
Samsung Heavy Industries Co. Ltd.		34,850		1,853
Samsung SDI Co. Ltd.		7,020		471
Samsung Securities Co. Ltd.		11,014		999
Samsung Techwin Co. Ltd.		10,410		793
Shinhan Financial Group Co. Ltd.		65,290		4,266
Shinsegae Co. Ltd.		2,845		1,980
SK Corp.		5,068		1,080
SK Energy Co. Ltd. *		12,098		2,115
SK Telecom Co. Ltd.		8,005		1,837
Tong Yang Investment Bank		14,438		265
Woongjin Coway Co. Ltd.		8,800		289
Woori Investment & Securities Co. Ltd.		18,610		527
Yuhan Corp.		1,596		339

				102,944


Taiwan - 11.1%
Acer, Inc.		480,379		846
Advanced Semiconductor Engineering, Inc.		775,777		851
Advantech Co Ltd.		41,182		122
Asia Cement Corp.		335,361		585
Asia Optical Co., Inc.		38,834		134
Asustek Computer, Inc.		611,896		1,862
AU Optronics Corp.		1,222,452		2,109
Benq Corp. *		402,000		205
Catcher Technology Co. Ltd.		104,209		758
Cathay Financial Holding Co. Ltd.		1,107,720		2,620
Cathay Real Estate Development Co. Ltd.		113,000		56
Chang Hwa Commercial Bank		781,000		515
Cheng Shin Rubber Industry Co. Ltd.		137,762		312
Cheng Uei Precision Industry Co. Ltd.		54,766		155
Chi Mei Optoelectronics Corp.		851,969		989
China Airlines		226,600		92
China Development Financial Holding Corp.		1,770,250		713
China Motor Corp.		71,746		66
China Steel Corp.		1,719,148		2,508


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
Taiwan - 11.1% – (continued)
Chinatrust Financial Holding Co. *		1,386,480	$	1,018
Chunghwa Picture Tubes Ltd. *		1,290,000		368
Chunghwa Telecom Co. Ltd. ADR		28,407		525
Chunghwa Telecom Co. Ltd.		788,500		1,474
CMC Magnetics Corp. *		479,000		214
Compal Communications, Inc.		28,245		72
Compal Electronics, Inc.		650,161		735
Compeq Manufacturing Co.		101,000		49
D-Link Corp.		136,272		338
Delta Electronics, Inc.		293,495		1,138
E.Sun Financial Holding Co. Ltd. *		511,200		276
Epistar Corp.		62,170		303
Eternal Chemical Co. Ltd.		78,736		109
Eva Airways Corp. *		164,000		60
Evergreen Marine Corp. Tawain Ltd.		220,180		191
Far Eastern Textile Co. Ltd.		574,798		772
First Financial Holding Co. Ltd.		904,995		648
Formosa Chemicals & Fibre Co.		572,520		1,465
Formosa Petrochemical Corp.		373,000		1,120
Formosa Plastics Corp.		806,390		2,273
Formosa Taffeta Co. Ltd.		147,540		168
Foxconn Technology Co. Ltd.		87,735		1,016
Fubon Financial Holding Co. Ltd.		744,000		635
Gigabyte Technology Co. Ltd.		76,000		63
HannStar Display Corp. *		1,126,000		324
High Tech Computer Corp.		90,520		1,327
HON HAI Precision Industry Co. Ltd.		997,072		7,516
Hua Nan Financial Holdings Co. Ltd.		718,000		506
InnoLux Display Corp.		388,900		1,668
Inotera Memories, Inc.		636,320		642
Inventec Appliances Corp.		25,305		50
Inventec Co. Ltd.		337,134		211
Kinpo Electronics		112,954		45
Kinsus Interconnect Technology Corp.		37,400		128
Largan Precision Co. Ltd.		21,930		239
Lite-On Technology Corp.		393,268		615
Macronix International		509,805		316
MediaTek, Inc.		163,510		2,946
Mega Financial Holding Co. Ltd.		1,691,000		1,067
Micro-Star International Co. Ltd.		108,528		110
Mitac International		238,231		332
Mosel Vitelic, Inc.		163,770		222

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		EMERGING MARKETS EQUITY FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
Taiwan - 11.1% – (continued)
Motech Industries, Inc.		16,975		$185
Nan Ya Plastics Corp.		997,800		2,599
Nan Ya Printed Circuit Board Corp.		35,000		211
Nanya Technology Corp.		469,932		317
Novatek Microelectronics Corp. Ltd.		93,357		406
Oriental Union Chemical Corp.		60,180		75
Phoenix Precision Technology Corp.		84,176		98
Polaris Securities Co. Ltd. *		308,280		166
POU Chen Corp.		413,042		413
Powerchip Semiconductor Corp.		1,535,758		762
Powertech Technology, Inc.		67,850		273
President Chain Store Corp.		104,000		292
ProMOS Technologies, Inc.		1,177,000		361
Quanta Computer, Inc.		402,737		633
Realtek Semiconductor Corp.		82,286		373
Ritek Corp. *		339,000		119
Shin Kong Financial Holding Co. Ltd.		714,016		663
Siliconware Precision Industries Co.		509,611		1,148
Sinopac Financial Holdings Co. Ltd.		1,216,000		566
Synnex Technology International Corp.		158,445		444
Taishin Financial Holdings Co. Ltd. *		1,057,000		534
Taiwan Cement Corp.		535,314		876
Taiwan Fertilizer Co Ltd.		144,000		348
Taiwan Glass Industrial Corp.		107,495		117
Taiwan Mobile Co. Ltd.		464,343		632
Taiwan Secom Co. Ltd.		34,100		56
Taiwan Semiconductor Manufacturing Co. Ltd.		4,179,267		8,145
Tatung Co. Ltd. *		853,000		444
Teco Electric and Machinery Co. Ltd.		348,000		205
Tripod Technology Corp.		64,980		265
U-Ming Marine Transport Corp.		94,000		308
Uni-President Enterprises Corp.		572,140		877
Unimicron Technology Corp.		138,720		254
United Microelectronics Corp.		2,416,022		2,039
Vanguard International Semiconductor Corp.		131,287		118
Via Technologies, Inc. *		156,000		105
Walsin Lihwa Corp.		583,000		289
Wan Hai Lines Ltd.		222,200		171
Waterland Financial Holdings		183,600		59
Winbond Electronics Corp.		614,000		198
Wintek Corp.		156,508		209
Wistron Corp.		224,698		406


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
Taiwan - 11.1% – (continued)
Ya Hsin Industrial Co. Ltd. *		121,548		$22
Yageo Corp.		454,000		189
Yang Ming Marine Transport		250,989		202
Yieh Phui Enterprise		105,018		49
Yuanta Financial Holdings		1,173,285		719
Yuen Foong Yu Paper Manufacturing Co. Ltd.		147,205		69
Yulon Motor Co. Ltd.		153,963		173
Zyxel Communications Corp.		60,261		108

				77,082

Thailand - 1.3%
Advanced Info Service PCL (Registered)		179,000		460
Airports of Thailand PCL		88,600		160
Aromatics Thailand PCL		6,100		13
Aromatics Thailand PCL		40,600		90
Bangkok Bank PCL		80,900		274
Bangkok Bank PCL (Registered)		188,800		634
Bangkok Expressway PCL		61,600		45
Banpu PCL		5,500		56
Banpu PCL (Registered)		25,100		256
BEC World PCL (Registered)		196,500		133
Central Pattana PCL (Registered)		132,900		100
Charoen Pokphand Foods PCL		604,900		93
CP Seven Eleven PCL		475,300		157
Electricity Generating PCL		17,900		61
Electricity Generating PCL		22,400		77
Glow Energy PCL		100,200		102
Hana Microelectronics PCL		116,000		83
IRPC PCL		1,928,700		388
Kasikornbank PCL		109,000		258
Kasikornbank PCL (Registered)		236,100		568
Krung Thai Bank Public Co. Ltd.		559,800		178
Land and Houses PCL		390,000		83
Land and Houses PCL (Registered)		444,100		113
Precious Shipping PCL (Registered)		76,800		84
PTT Chemical PCL (Registered)		72,700		274
PTT Exploration & Production PCL (Registered)		232,200		921
PTT PCL (Registered)		167,600		1,614
PTT PCL NVDR		2,300		23
Ratchaburi Electricity Generating Holding PCL (Registered)		74,900		103
Rayong Refinery PCL (Registered)		294,800		211
Siam Cement PCL		26,600		197

See Notes to the Financial Statements.

EQUITY FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)



	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
Thailand - 1.3% – (continued)
Siam Cement PCL (Registered)		60,500		$459
Siam City Cement PCL		14,200		116
Siam Commercial Bank PCL (Registered)		199,000		467
Siam Makro PCL (Registered)		15,600		42
Thai Airways International PCL		105,500		129
Thanachart Capital PCL		122,900		56
True Corp. PCL *		375,000		73

				9,151

Turkey - 1.6%
Adana Cimento		6,474		51
Akbank TAS		181,664		1,382
Akcansa Cimento A.S.		8,755		67
Aksigorta A.S.		25,849		178
Anadolu Efes Biracilik Ve Malt Sanayii A.S.		45,731		476
Arcelik		21,718		176
Aygaz A.S.		16,176		69
Cimsa Cimento Sanayi VE Tica		7,010		60
Dogan Sirketler Grubu Holdings *		113,169		247
Dogan Yayin Holding *		44,713		190
Eregli Demir ve Celik Fabrikalari TAS		85,522		799
Ford Otomotiv Sanayi A.S.		13,832		146
Haci Omer Sabanci Holding A.S.		91,726		588
Hurriyet Gazetecilik A.S. *		36,782		116
Is Gayrimenkul Yatirim Ortakligi AS *		33,893		58
KOC Holding A.S. *		71,549		376
Migros Turk TAS		19,859		345
Petkim Petrokimya Holding *		17,144		140
Tofas Turk Otomobil Fabrikasi A.S.		25,295		127
Trakya Cam Sanayi A.S.		17,910		67
Tupras Turkiye Petrol Rafine		25,274		669
Turk Hava Yollari *		13,446		105
Turk Sise ve Cam Fabrikalari A.S.		28,223		140
Turkcell Iletisim Hizmet AS		111,018		936
Turkiye Garanti Bankasi A.S.		211,941		1,621
Turkiye Is Bankasi		194,737		1,175
Turkiye Vakiflar Bankasi Tao		156,627		534
Ulker Gida Sanayi ve Ticaret A.S.		14,123		63
Vestel Elektronik Sanayi *		13,190		36
Yapi ve Kredi Bankasi *		127,144		406

				11,343

United States - 0.6%
Lenovo Group Ltd.		750,000		575



	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 89.9% – CONTINUED
United States - 0.6% – (continued)
Southern Copper Corp.		25,965		$3,216

				3,791

Total Common Stocks

(Cost $469,080)				624,004


PREFERRED STOCKS - 7.6%
Brazil - 7.0%
Aracruz Celulose S.A., Class B		95,600		701
Banco Bradesco S.A.		192,726		5,636
Banco Itau Holding Financeira S.A.		98,382		4,946
Brasil Telecom Participacoes S.A.		45,942		689
Braskem S.A., Class A		29,900		282
Centrais Eletricas Brasileiras S.A., Class B		41,162		577
Cia Brasileira de Distribuicao Grupo Pao de Acucar		13,002		199
Cia de Bebidas das Americas		39,414		2,903
Cia de Tecidos do Norte de Minas - Coteminas		10,136		68
Cia Energetica de Minas Gerais		59,536		1,267
Cia Energetica de Sao Paulo *		31,406		582
Cia Paranaense de Energia, Class B		21,321		341
Cia Vale do Rio Doce, Class A		386,334		11,002
Duratex S.A.		15,000		448
Eletropaulo Metropolitana de Sao Paulo S.A., Class A		160,000		11
Eletropaulo Metropolitana de Sao Paulo S.A., Class B		4,195,400		279
Gerdau S.A.		61,400		1,605
Gol Linhas Aereas Inteligentes S.A.		9,900		240
Klabin S.A.		92,300		352
Lojas Americanas S.A.		72,074		716
Net Servicos de Comunicacao S.A. (Sao Paolo Exchange) *		33,825		555
Petroleo Brasileiro S.A. - Petrobras		316,633		10,226
Sadia S.A.		73,900		410
Tam S.A.		15,500		424
Tele Norte Leste Participacoes S.A.		52,700		1,193
Tim Participacoes S.A.		124,610		508
Usinas Siderurgicas de Minas Gerais S.A., Class A		22,700		1,585
Vivo Participacoes S.A.		104,700		507
Votorantim Celulose e Papel S.A.		18,700		536

				48,788

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		EMERGING MARKETS EQUITY FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
PREFERRED STOCKS - 7.6% - CONTINUED
Chile - 0.1%
Embotelladora Andina S.A.		20,158		$58
Embotelladora Andina S.A., Class B		33,774		105
Sociedad Quimica y Minera de Chile S.A.		15,851		271

				434

Russia - 0.1%
Surgutneftegaz		134,419		94
Transneft OAO		310		561
Unified Energy System *		253,872		271

				926

South Korea - 0.4%
Hyundai Motor Co.		6,880		276
LG Electronics, Inc.		2,540		125
Samsung Electronics Co. Ltd.		4,131		1,923

				2,324

Total Preferred Stocks

(Cost $35,585)				52,472

RIGHTS - 0.0%
Byo Co. Ltd., Class H		8,666		-

Total Rights

(Cost $-)				-


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 1.2%
ABN-Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$8,488		8,488

Total Short-Term Investment

(Cost $8,488)				8,488

Total Investments - 98.7%

(Cost $513,153)				684,964
Other Assets less Liabilities - 1.3%				9,202

NET ASSETS - 100.0%			$	694,166


(1)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available, in accordance with procedures established by the Trustees of Northern Funds.


*		Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the Emerging Markets Equity Fund had open futures contracts as follows:


			NOTIONAL					UNREALIZED
	NUMBER OF		AMOUNT		CONTRACT	CONTRACT		GAIN
TYPE	CONTRACTS		(000S)		POSITION	EXP.		(000S)

DAX Index		6	$	1,703	Long		12/07		$21

Hang Seng		9		1,574	Long		10/07		15

JSE All Share Index		98		3,964	Long		12/07		117

Topix Index		5		708	Long		12/07		17

MSCI Taiwan SGX		61		2,221	Long		10/07		56

Nikkei 225 CME		4		335	Long		12/07		20

SPI 200 Index		13		1,907	Long		12/07		63



Total								$	309

At September 30, 2007, the industry sectors for the Emerging Markets Equity Fund were:


	% OF LONG TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		5.0	%
Consumer Staples		4.4
Energy		16.0
Financials		20.3
Health Care		1.7
Industrials		14.3
Information Technology		11.9
Materials		15.0
Telecommunication Services		8.1
Utilities		3.3


Total		100.0	%

See Notes to the Financial Statements.

EQUITY FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT




	SEPTEMBER 30, 2007 (UNAUDITED)

At September 30, 2007, the Emerging Markets Equity Fund’s investments were denominated in the following currencies:


	% OF LONG TERM
CONCENTRATION BY CURRENCY	INVESTMENTS
Hong Kong Dollar		16.2	%
Korean Won		15.6
U.S. Dollar		12.7
Brazil Real		12.0
Taiwan Dollar		11.3
South African Rand		6.9
All other currencies less than 5%		25.3


Total		100.0	%

At September 30, 2007, the Emerging Markets Equity Fund had outstanding forward foreign currency exchange contracts as follows:

AMOUNT

CONTRACTS

(LOCAL

EXCHANGE

(LOCAL

UNREALIZED

TO DELIVER

CURRENCY)

FOR

CURRENCY)

SETTLEMENT

(LOSS)

CURRENCY

(000S)

CURRENCY

(000S)

DATE

(000S)

Malaysian

U.S.

Ringgit

1,888

Dollar

537

9/06/07

$(17)

Brazilian

U.S.

Real

Dollar

9/28/07

Indian

U.S.

Rupee

508

Dollar

9/28/07

Total

$(17)

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		ENHANCED LARGE CAP FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 100.6%
Aerospace/Defense - 3.1%
Boeing (The) Co.		18,800		$1,974
Lockheed Martin Corp.		13,400		1,454
Northrop Grumman Corp.		9,600		749
Raytheon Co.		15,700		1,002
United Technologies Corp.		1,559		125

				5,304

Agriculture - 1.3%
Altria Group, Inc.		19,100		1,328
UST, Inc.		19,600		972

				2,300

Apparel - 0.6%
NIKE, Inc., Class B		18,600		1,091

Banks - 4.3%
Bank of America Corp.		42,003		2,111
Fifth Third Bancorp		25,700		871
National City Corp.		36,600		918
SunTrust Banks, Inc.		15,800		1,196
U.S. Bancorp		16,400		533
Wachovia Corp.		18,700		938
Wells Fargo & Co.		21,500		766

				7,333

Beverages - 1.8%
Anheuser-Busch Cos., Inc.		27,900		1,395
Coca-Cola (The) Co.		10,600		609
Coca-Cola Enterprises, Inc.		18,200		441
PepsiCo, Inc.		8,800		644

				3,089

Biotechnology - 0.7%
Biogen Idec, Inc. *		17,300		1,148

Building Materials - 0.1%
American Standard Companies, Inc.		3,900		139

Chemicals - 1.9%
Ashland, Inc.		15,900		957
Dow Chemical (The) Co.		33,100		1,425
du Pont (E.I.) de Nemours & Co.		18,900		937

				3,319

Computers - 4.8%
Apple, Inc. *		5,000		768
Computer Sciences Corp. *		9,200		514
Dell, Inc. *		17,000		469
Hewlett-Packard Co.		51,000		2,539


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 100.6% — CONTINUED
Computers - 4.8% — (continued)
IBM Corp.		25,600		$3,016
NCR Corp. *		19,900		991

				8,297

Cosmetics/Personal Care - 1.6%
Procter & Gamble Co.		38,200		2,687

Diversified Financial Services - 8.6%
American Express Co.		13,650		810
Charles Schwab (The) Corp.		17,500		378
CIT Group, Inc.		10,600		426
Citigroup, Inc.		83,500		3,897
Franklin Resources, Inc.		4,400		561
Goldman Sachs Group, Inc.		10,100		2,189
JPMorgan Chase & Co.		64,300		2,946
Lehman Brothers Holdings, Inc.		7,200		445
Merrill Lynch & Co., Inc.		23,100		1,647
Morgan Stanley		22,700		1,430

				14,729

Electric - 3.6%
AES Corp. *		12,900		259
Dynegy, Inc., Class A *		900		8
Edison International		19,468		1,079
Entergy Corp.		800		87
FirstEnergy Corp.		18,600		1,178
Progress Energy, Inc.		23,200		1,087
Public Service Enterprise Group, Inc.		13,800		1,214
TECO Energy, Inc.		55,900		918
TXU Corp.		4,800		329

				6,159

Environmental Control - 1.0%
Allied Waste Industries, Inc. *		42,600		543
Waste Management, Inc.		30,301		1,144

				1,687

Food - 3.1%
ConAgra Foods, Inc.		36,100		943
Dean Foods Co.		10,200		261
General Mills, Inc.		20,200		1,172
Kroger Co.		42,500		1,212
Safeway, Inc.		23,500		778
SUPERVALU, Inc.		3,600		140
Tyson Foods, Inc., Class A		48,500		866

				5,372


	See Notes to the Financial Statements.

EQUITY FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT




	SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 100.6% – CONTINUED
Forest Products & Paper - 0.6%
International Paper Co.		27,800		$997

Gas - 0.1%
Sempra Energy		3,800		221

Hand/Machine Tools - 0.5%
Black & Decker Corp.		10,700		891
Healthcare - Products - 2.6%
Baxter International, Inc.		19,657		1,106
Johnson & Johnson		24,100		1,583
Medtronic, Inc.		30,982		1,748

				4,437

Healthcare - Services - 1.5%
Aetna, Inc.		17,600		955
UnitedHealth Group, Inc.		600		29
WellPoint, Inc. *		19,200		1,516

				2,500

Household Products/Wares - 0.6%
Clorox Co.		15,700		958

Insurance - 5.6%
AMBAC Financial Group, Inc.		2,300		145
American International Group, Inc.		47,600		3,220
Assurant, Inc.		18,400		984
CIGNA Corp.		13,300		709
Metlife, Inc.		23,500		1,639
Prudential Financial, Inc.		16,000		1,561
SAFECO Corp.		16,500		1,010
Travelers Cos. (The), Inc.		5,800		292

				9,560

Internet - 1.7%
Amazon.com, Inc. *		9,100		848
eBay, Inc. *		28,300		1,104
Google, Inc., Class A *		1,200		681
IAC/InterActiveCorp *		10,900		323

				2,956

Iron/Steel - 0.6%
Nucor Corp.		4,200		250
United States Steel Corp.		7,500		794

				1,044

Leisure Time - 0.5%
Harley-Davidson, Inc.		19,258		890

Lodging - 0.0%
Marriott International, Inc., Class A		1,500		65


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 100.6% - CONTINUED
Machinery - Construction & Mining - 0.7%
Caterpillar, Inc.		16,200		$1,271

Machinery - Diversified - 0.5%
Rockwell Automation, Inc.		12,200		848

Media - 3.6%
CBS Corp., Class B		18,900		595
Comcast Corp., Class A *		6,416		155
Disney (The Walt) Co.		52,300		1,799
McGraw-Hill Cos. (The), Inc.		22,500		1,146
Time Warner, Inc.		79,300		1,456
Tribune Co.		1,039		28
Viacom, Inc., Class B *		23,600		920

				6,099

Miscellaneous Manufacturing - 5.2%
3M Co.		10,649		997
General Electric Co.		112,200		4,645
Honeywell International, Inc.		9,000		535
Illinois Tool Works, Inc.		3,200		191
Ingersoll-Rand Co. Ltd., Class A		2,300		125
ITT Corp.		16,100		1,094
Parker Hannifin Corp.		1,300		145
Tyco International Ltd.		26,450		1,173

				8,905

Office/Business Equipment - 0.4%
Xerox Corp. *		36,700		636

Oil & Gas - 10.3%
Chevron Corp.		36,100		3,378
ConocoPhillips		31,349		2,752
ENSCO International, Inc.		16,700		937
Exxon Mobil Corp.		82,600		7,645
Marathon Oil Corp.		22,000		1,254
Sunoco, Inc.		5,000		354
Valero Energy Corp.		20,700		1,391

				17,711

Oil & Gas Services - 1.9%
Halliburton Co.		33,000		1,267
National-Oilwell Varco, Inc. *		9,000		1,300
Schlumberger Ltd.		6,700		704

				3,271

Packaging & Containers - 0.2%
Ball Corp.		6,800		366


	See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		ENHANCED LARGE CAP FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 100.6% – CONTINUED
Pharmaceuticals - 6.1%
Abbott Laboratories		3,375		$181
AmerisourceBergen Corp.		21,100		956
Cardinal Health, Inc.		7,000		438
Forest Laboratories, Inc. *		26,466		987
Gilead Sciences, Inc. *		13,900		568
King Pharmaceuticals, Inc. *		35,900		421
Lilly (Eli) & Co.		17,200		979
Merck & Co., Inc.		25,600		1,323
Pfizer, Inc.		128,600		3,142
Schering-Plough Corp.		46,500		1,471

				10,466

Real Estate Investment Trusts - 0.7%
Apartment Investment & Management Co., Class A		9,000		406
Boston Properties, Inc.		7,700		800
Host Hotels & Resorts, Inc.		2,100		47

				1,253

Retail - 3.7%
Big Lots, Inc. *		30,300		904
Darden Restaurants, Inc.		5,800		243
Family Dollar Stores, Inc.		33,800		898
Home Depot (The), Inc.		31,000		1,006
McDonald’s Corp.		28,200		1,536
RadioShack Corp.		39,900		824
Wal-Mart Stores, Inc.		23,100		1,008

				6,419

Savings & Loans - 0.7%
Washington Mutual, Inc.		35,000		1,236

Semiconductors - 2.5%
Applied Materials, Inc.		61,200		1,267
Intel Corp.		40,800		1,055
National Semiconductor Corp.		5,100		138
Novellus Systems, Inc. *		7,700		210
Texas Instruments, Inc.		44,500		1,628

				4,298

Software - 5.1%
Automatic Data Processing, Inc.		25,300		1,162
BMC Software, Inc. *		30,900		965
CA, Inc.		8,500		219
Compuware Corp. *		74,000		594
Fiserv, Inc. *		20,100		1,022
Microsoft Corp.		139,900		4,121


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 100.6% – CONTINUED
Software - 5.1% – (continued)
Oracle Corp. *		29,000		$628

				8,711

Telecommunications - 6.4%
Alltel Corp.		2,800		195
AT&T, Inc.		57,627		2,438
CenturyTel, Inc.		20,800		962
Cisco Systems, Inc. *		107,500		3,559
Qualcomm, Inc.		42,764		1,807
Qwest Communications International, Inc. *		61,300		562
Verizon Communications, Inc.		32,547		1,441

				10,964

Toys, Games & Hobbies - 0.7%
Hasbro, Inc.		29,000		808
Mattel, Inc.		14,700		345

				1,153

Transportation - 1.1%
Norfolk Southern Corp.		21,500		1,116
United Parcel Service, Inc., Class B		9,900		744

				1,860

Total Common Stocks

(Cost $163,089)				172,640

	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 0.4%
ABN-Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$454		454
U.S. Treasury Bill,⁽¹⁾ 4.23%, 1/17/08		205		203

Total Short-Term Investments

(Cost $656)				657


Total Investments - 101.0%

(Cost $163,745)				173,297
Liabilities less Other Assets – (1.0)%				(1,737	)

NET ASSETS - 100.0%				$171,560

(1)		Security pledged as collateral to cover margin requirements for open futures contracts.

*		Non-Income Producing Security

Percentages shown are based on Net Assets.

See Notes to the Financial Statements.

EQUITY FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)

At September 30, 2007, the Enhanced Large Cap Fund had open futures contracts as follows:

NOTIONAL

UNREALIZED

NUMBER OF

AMOUNT

CONTRACT

GAIN

TYPE

CONTRACTS

(000S)

POSITION

EXP.

(000S)

S & P 500
EMINI

$308

Long

12/07

At September 30, 2007, the industry sectors for the Enhanced Large Cap Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		9.7	%
Consumer Staples		8.9
Energy		12.2
Financials		19.3
Health Care		11.2
Industrials		11.6
Information Technology		16.9
Materials		3.3
Telecommunication Services		3.2
Utilities		3.7

Total		100.0	%

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		GROWTH EQUITY FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.1%
Aerospace/Defense - 4.6%
Boeing (The) Co.		68,525		$7,194
Lockheed Martin Corp.		47,650		5,170
Northrop Grumman Corp.		126,700		9,883
Raytheon Co.		90,325		5,764

				28,011

Banks - 1.3%
Bank of America Corp.		152,350		7,659

Biotechnology - 3.9%
Amgen, Inc. *		194,730		11,016
Biogen Idec, Inc. *		191,090		12,675

				23,691

Chemicals - 1.8%
Celanese Corp., Class A		171,020		6,666
Lubrizol Corp.		67,100		4,366

				11,032

Commercial Services - 1.1%
McKesson Corp.		112,650		6,623

Computers - 5.3%
Cadence Design Systems, Inc. *		206,550		4,583
Electronic Data Systems Corp.		199,475		4,357
IBM Corp.		153,275		18,056
Network Appliance, Inc. *		182,950		4,923

				31,919

Cosmetics/Personal Care - 3.0%
Colgate-Palmolive Co.		88,050		6,279
Procter & Gamble Co.		171,180		12,041

				18,320

Diversified Financial Services - 6.5%
Citigroup, Inc.		195,625		9,130
Countrywide Financial Corp.		230,215		4,376
Goldman Sachs Group, Inc.		42,125		9,130
JPMorgan Chase & Co.		115,800		5,306
Merrill Lynch & Co., Inc.		90,550		6,455
Morgan Stanley		73,575		4,635

				39,032

Electric - 2.8%
Duke Energy Corp.		324,415		6,063
NRG Energy, Inc. *		111,835		4,730
PG&E Corp.		133,175		6,366

				17,159


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.1% – CONTINUED
Electronics - 0.8%
Tyco Electronics Ltd.		136,575		$4,839

Food - 2.4%
General Mills, Inc.		146,650		8,507
Kroger Co.		218,525		6,232

				14,739

Healthcare – Products - 2.2%
Baxter International, Inc.		134,675		7,579
Covidien Ltd. *		136,575		5,668

				13,247

Home Furnishings - 0.9%
Matsushita Electric Industrial Co. Ltd. ADR		299,425		5,554

Household Products/Wares - 0.9%
Clorox Co.		90,075		5,494

Insurance - 9.4%
Allstate (The) Corp.		85,725		4,902
AMBAC Financial Group, Inc.		80,525		5,066
American International Group, Inc.		291,200		19,700
Chubb Corp.		80,700		4,329
Hartford Financial Services Group, Inc.		63,675		5,893
Prudential Financial, Inc.		66,750		6,513
Travelers Cos. (The), Inc.		115,825		5,831
XL Capital Ltd., Class A		56,425		4,469

				56,703

Internet - 1.5%
eBay, Inc. *		235,470		9,188

Iron/Steel - 1.8%
United States Steel Corp.		103,475		10,962

Machinery - Diversified - 1.8%
Deere & Co.		71,250		10,575

Media - 2.1%
Disney (The Walt) Co.		368,225		12,663

Miscellaneous Manufacturing - 3.9%
Eaton Corp.		63,225		6,262
General Electric Co.		286,090		11,844
ITT Corp.		83,525		5,674

				23,780

Oil & Gas - 11.6%
Chevron Corp.		228,540		21,387
ENSCO International, Inc.		150,945		8,468
Exxon Mobil Corp.		369,850		34,233

See Notes to the Financial Statements.

EQUITY FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.1% – CONTINUED
Oil & Gas - 11.6% – (continued)
Occidental Petroleum Corp.		97,725		$6,262

				70,350

Pharmaceuticals - 7.1%
Lilly (Eli) & Co.		199,875		11,379
Pfizer, Inc.		433,700		10,595
Sanofi-Aventis ADR		130,175		5,522
Schering-Plough Corp.		489,100		15,470

				42,966

Retail - 3.1%
Kohl’s Corp. *		103,500		5,934
McDonald’s Corp.		134,745		7,339
TJX Cos., Inc.		189,925		5,521

				18,794

Semiconductors - 3.5%
ASML Holding N.V.		294,000		9,661
National Semiconductor Corp.		163,000		4,421
Texas Instruments, Inc.		188,200		6,886

				20,968

Software - 4.0%
BMC Software, Inc. *		132,250		4,130
Microsoft Corp.		683,875		20,147

				24,277

Telecommunications - 9.8%
Cisco Systems, Inc. *		605,375		20,044
Embarq Corp.		82,450		4,584
Nokia OYJ ADR		375,520		14,244
Qwest Communications International, Inc. *		960,315		8,797
Verizon Communications, Inc.		254,775		11,281

				58,950

Total Common Stocks

(Cost $513,599)				587,495


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 2.9%
ABN-Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$17,316		$17,316

Total Short-Term Investment

(Cost $17,316)				17,316



Total Investments - 100.0%

(Cost $530,915)				604,811
Other Assets less Liabilities - 0.0%				200

NET ASSETS - 100.0%				$605,011

*		Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Growth Equity Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		6.3	%
Consumer Staples		6.6
Energy		12.0
Financials		17.6
Health Care		14.7
Industrials		10.6
Information Technology		21.4
Materials		3.7
Telecommunication Services		4.2
Utilities		2.9


Total		100.0	%

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		INCOME EQUITY FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 55.7%
Agriculture - 1.0%
UST, Inc.		105,000		$5,208

Banks - 1.5%
Bank of America Corp.		161,000		8,094

Beverages - 3.0%
Anheuser-Busch Cos., Inc.		161,000		8,048
Diageo PLC ADR		96,500		8,466

				16,514

Chemicals - 1.3%
Dow Chemical (The) Co.		170,000		7,320

Commercial Services - 3.6%
Accenture Ltd., Class A		190,000		7,647
Coinmach Service Corp.		368,000		6,808
Macquarie Infrastructure Co. LLC		135,000		5,210

				19,665

Computers - 3.0%
Computer Sciences Corp. *		140,000		7,826
Hewlett-Packard Co.		175,000		8,713

				16,539

Electric - 2.0%
Centerpoint Energy, Inc.		330,000		5,290
TECO Energy, Inc.		350,000		5,750

				11,040

Food - 3.8%
B&G Food Holdings Corp.		300,000		6,210
Kraft Foods, Inc., Class A		220,000		7,592
SUPERVALU, Inc.		180,000		7,022

				20,824

Healthcare – Products - 1.5%
Johnson & Johnson		125,000		8,213

Housewares - 0.7%
Newell Rubbermaid, Inc.		140,000		4,035

Insurance - 5.5%
Chubb Corp.		144,511		7,751
Old Republic International Corp.		366,000		6,859
Prudential Financial, Inc.		84,000		8,197
Travelers Cos. (The), Inc.		145,000		7,299

				30,106

Investment Companies - 2.7%
Allied Capital Corp.		245,000		7,201
American Capital Strategies Ltd.		177,000		7,563

				14,764


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 55.7% – CONTINUED
Machinery - Diversified - 1.2%
Cummins, Inc.		50,000		$6,395

Media - 2.7%
Disney (The Walt) Co.		241,000		8,288
Gannett Co., Inc.		150,000		6,555

				14,843

Mining - 1.1%
Southern Copper Corp.		50,000		6,192

Miscellaneous Manufacturing - 1.5%
3M Co.		90,000		8,422

Oil & Gas - 6.4%
ConocoPhillips		103,284		9,065
Devon Energy Corp.		75,000		6,240
EnCana Corp.		85,000		5,257
Marathon Oil Corp.		144,000		8,211
Occidental Petroleum Corp.		100,000		6,408

				35,181

Pharmaceuticals - 2.4%
GlaxoSmithKline PLC ADR		127,000		6,756
Pfizer, Inc.		255,000		6,230

				12,986

Real Estate Investment Trusts - 2.7%
Healthcare Realty Trust, Inc.		170,000		4,532
HRPT Properties Trust		560,000		5,538
iStar Financial, Inc.		140,000		4,759

				14,829

Retail - 1.2%
Home Depot (The), Inc.		195,000		6,326

Savings & Loans - 0.5%
New York Community Bancorp, Inc.		150,000		2,858

Semiconductors - 1.2%
Taiwan Semiconductor Manufacturing		650,733		6,585
Co. Ltd. ADR

Telecommunications - 5.2%
Nokia OYJ ADR		285,000		10,810
RF Micro Devices, Inc. *		350,000		2,355
Verizon Communications, Inc.		190,000		8,413
Vodafone Group PLC ADR		196,875		7,147

				28,725

Total Common Stocks

(Cost $260,010)				305,664

See Notes to the Financial Statements.

EQUITY FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT




	SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
CONVERTIBLE PREFERRED STOCKS - 9.6%
Chemicals - 3.5%
Celanese Corp., 4.25%		225,000		$11,282
Huntsman Corp., 5.00%		160,000		7,934

				19,216

Commercial Services - 0.5%
United Rentals Trust I, 6.50%		55,857		2,695

Diversified Financial Services - 1.4%
Citigroup Funding, Inc., 5.02%		165,000		4,620
Lehman Brothers Holdings, Inc., 6.25%		100,000		2,655

				7,275

Insurance - 0.6%
Metlife, Inc., 6.38%		100,000		3,430

Pharmaceuticals - 1.6%
Schering-Plough Corp.		32,000		8,864

Savings & Loans - 2.0%
New York Community Capital Trust V		87,500		4,353
Sovereign Capital Trust II, 4.38%		100,000		4,250
Washington Mutual, Inc., 5.38%		50,000		2,401

				11,004

Total Convertible Preferred Stocks

(Cost $45,578)				52,484


	PRINCIPAL
	AMOUNT	VALUE
	(000S)	(000S)
CONVERTIBLE BONDS - 27.7%
Aerospace/Defense - 2.2%
L-3 Communications Corp.,
3.00%, 8/1/35	$2,290	2,665
Lockheed Martin Corp.,
5.16%, 8/15/33	6,276	9,524

		12,189

Apparel - 1.1%
Kellwood, Co.,
3.50%, 6/15/34	6,400	5,824

Computers - 3.5%
CACI International Inc.,
2.13%, 5/1/14	6,000	6,517
Electronic Data Systems Corp.,
3.88%, 7/15/23	7,000	7,009
Mentor Graphics Corp.
6.25%, 3/1/26	5,000	5,763

		19,289


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CONVERTIBLE BONDS - 27.7% – CONTINUED
Electrical Components & Equipment - 0.1%
General Cable Corp.
1.00%, 10/15/12		$500		$521

Electronics - 1.8%
Vishay Intertechnology, Inc.
3.63%, 8/1/23		10,000		9,963

Environmental Control - 0.7%
Allied Waste Industries,
4.25%, 4/15/34		4,000		3,795

Healthcare - Products - 0.6%
Conmed Corp.,
2.50%, 11/15/24		3,500		3,347

Healthcare - Services - 0.8%
LifePoint Hospitals, Inc.,
3.50%, 5/15/14		5,000		4,444

Insurance - 1.9%
American Equity Investment Life Holding Co.,
5.25%, 12/6/24		10,000		10,512

Machinery - Diversified - 2.1%
AGCO Corp.,
1.75%, 12/31/33		5,000		11,531

Media - 1.7%
Gannett Co., Inc.
5.09%, 7/15/37		5,000		4,956
Liberty Media Corp.,
0.75%, 3/30/23		4,000		4,400

				9,356

Mining - 0.4%
USEC, Inc.
3.00%, 10/1/14		2,000		2,180

Pharmaceuticals - 3.2%
King Pharmaceuticals, Inc.
1.25%, 4/1/26		7,000		5,889
Mylan Laboratories, Inc.,
1.25%, 3/15/12		5,000		4,675
Watson Pharmaceuticals, Inc.,
1.75%, 3/15/23		7,000		6,737

				17,301

Retail - 1.1%
Sonic Automotive, Inc.,
4.25%, 11/30/15		5,500		6,304

See Notes to the Financial Statements.


EQUITY FUNDS

	SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


	INCOME EQUITY FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CONVERTIBLE BONDS - 27.7% – CONTINUED
Semiconductors - 1.5%
Intel Corp.,
2.95%, 12/15/35		$8,000		$8,320

Software - 2.4%
Fair Isaac Corp.,
1.50%, 8/15/23		7,000		6,991
Sybase, Inc.,
1.75%, 2/22/25		6,000		6,450

				13,441

Telecommunications - 1.0%
RF Micro Devices, Inc.,
0.75%, 4/15/12		5,250		5,408

Transportation - 1.6%
YRC Worldwide, Inc.,
5.00%, 8/8/23		8,000		8,580

Total Convertible Bonds

(Cost $145,844)				152,305

SHORT-TERM INVESTMENT - 6.9%
ABN-Amro Bank, Amsterdam,
Eurodollar Time Deposit,
5.50%, 10/1/07		38,067		38,067

Total Short-Term Investment

(Cost $38,067)				38,067


Total Investments - 99.9%

(Cost $489,500)				548,520
Other Assets less Liabilities - 0.1%				404

NET ASSETS - 100.0%				$548,924


*		Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Income Equity Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		9.2	%
Consumer Staples		5.9
Communication		3.1
Energy		8.5
Financials		19.7
Health Care		10.8
Industrials		9.8
Materials		6.4
Technology		17.5
Transportation		1.7
Telecommunication Services		5.2
Utilities		2.2


Total		100.0	%


		See Notes to the Financial Statements.

EQUITY FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT


	EQUITY FUNDS

SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


INTERNATIONAL GROWTH EQUITY FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.7%
Australia - 3.5%
Cochlear Ltd.		318,529		$22,062
Suncorp-Metway Ltd.		1,192,850		21,513

				43,575

Canada - 1.6%
Bombardier, Inc., Class B *		3,377,800		20,090

China - 0.7%
Bank of China Ltd.		17,350,000		9,288

Finland - 2.6%
Nokia OYJ		850,496		32,361

France - 7.3%
Accor S.A.		115,996		10,307
Alstom		62,424		12,702
AXA S.A.		542,943		24,316
L’Oreal S.A.		186,754		24,521
Thales S.A.		332,315		19,498

				91,344

Germany - 14.5%
Deutsche Bank A.G. (Registered)		109,900		14,176
Deutsche Telekom A.G. (Registered)		1,227,481		24,141
E.ON A.G.		105,879		19,593
Linde A.G.		179,481		22,309
MAN A.G.		138,063		20,108
Merck KGaA		142,592		17,217
Metro A.G.		113,916		10,298
SAP A.G.		406,724		23,829
Siemens A.G. (Registered)		220,894		30,398

				182,069

Greece - 1.6%
National Bank of Greece S.A.		310,946		19,837

Ireland - 0.6%
Allied Irish Banks PLC		336,891		8,174

Italy - 7.0%
ENI S.p.A.		734,293		27,237
Finmeccanica S.p.A.		332,438		9,693
Lottomatica S.p.A.		471,853		17,072
UniCredito Italiano S.p.A. (Milan Exchange)		2,645,942		22,658
Unione di Banche Italiane SCPA		416,856		11,215

				87,875

Japan - 13.0%
East Japan Railway Co.		2,541		20,073
Fanuc Ltd.		185,000		18,889

See Notes to the Financial Statements.


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.7% – CONTINUED
Japan - 13.0% – (continued)
Kirin Brewery Co. Ltd.		1,180,000		$15,639
Komatsu Ltd.		665,900		22,411
Mizuho Financial Group, Inc.		3,197		18,258
Shin-Etsu Chemical Co. Ltd.		318,000		22,015
Sony Corp.		242,900		11,796
Toyota Motor Corp.		576,000		34,051

				163,132

Netherlands - 4.8%
Qiagen N.V. *		1,006,321		19,447
Royal Dutch Shell PLC, Class B (London Exchange)		1,007,052		41,441

				60,888

Norway - 1.0%
Petroleum Geo-Services ASA *		445,800		12,859

Singapore - 1.8%
CapitaLand Ltd.		1,488,000		8,162
Cosco Corp. Singapore Ltd.		3,615,000		14,476

				22,638

Spain - 3.9%
Banco Santander Central Hispano S.A.		856,951		16,670
Telefonica S.A.		1,141,477		31,980

				48,650

Sweden - 0.9%
Assa Abloy AB, Class B		80,534		1,673
Autoliv, Inc. SDR		156,740		9,459

				11,132

Switzerland - 11.9%
ABB Ltd. (Registered)		544,605		14,354
Julius Baer Holding A.G. (Registered)		189,788		14,202
Logitech International S.A. (Registered) *		298,654		8,898
Nestle S.A. (Registered)		56,295		25,309
Roche Holding A.G. (Genusschein)		165,978		30,119
Swiss Life Holding (Registered) *		72,581		18,842
Syngenta A.G. (Registered)		56,763		12,247
Xstrata PLC		373,292		24,768

				148,739

United Kingdom - 20.0%
BHP Billiton PLC		1,089,736		39,005
BT Group PLC		3,336,553		20,950
Centrica PLC		2,586,413		20,128
GlaxoSmithKline PLC		1,184,114		31,412

NORTHERN FUNDS SEMIANNUAL REPORT 41 EQUITY FUNDS


EQUITY FUNDS

	SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


	INTERNATIONAL GROWTH EQUITY FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.7% – CONTINUED
United Kingdom - 20.0% – (continued)
ITV PLC		7,872,434		$16,520
Lloyds TSB Group PLC		2,197,499		24,383
Marks & Spencer Group PLC		932,061		11,734
Prudential PLC		1,526,084		23,456
Smith & Nephew PLC		1,431,187		17,490
Vodafone Group PLC		10,130,461		36,570
WPP Group PLC		661,028		8,950

				250,598

Total Common Stocks

(Cost $995,527)				1,213,249

	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 0.1%
ABN-Amro Bank, Amsterdam,
Eurodollar Time Deposit,
5.50%, 10/1/07		$1,194		1,194

Total Short-Term Investment

(Cost $1,194)				1,194


Total Investments - 96.8%

(Cost $996,721)				1,214,443
Other Assets less Liabilities - 3.2%				40,140

NET ASSETS - 100.0%				$1,254,583

Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the International Growth Equity Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		9.9	%
Consumer Staples		6.2
Energy		6.7
Financials		20.9
Health Care		11.4
Industrials		16.9
Information Technology		5.4
Materials		9.9
Telecommunication Services		9.4
Utilities		3.3


Total		100.0	%

At September 30, 2007, the International Growth Equity Fund’s investments were denominated in the following currencies:


	% OF LONG-TERM
CONCENTRATION BY CURRENCY	INVESTMENTS
Euro		40.4	%
British Pound		26.1
Japanese Yen		13.4
Swiss Franc		10.2
All other currencies less than		9.9

Total		100.0	%

At September 30, 2007, the International Growth Equity Fund had outstanding foreign currency contracts as follows:

AMOUNT

CONTRACTS

(LOCAL

EXCHANGE

(LOCAL

UNREALIZED

TO DELIVER

CURRENCY)

FOR

CURRENCY)

SETTLEMENT

GAIN (LOSS)

CURRENCY

(000S)

CURRENCY

(000S)

DATE

(000S)

United

Japanese

Kingdom

Yen

70,230

Pound

300

10/1/07

Japanese

U.S.

Yen

919,360

Dollar

8,000

10/2/07

(16

)

Total

$(15

)

See Notes to the Financial Statements.

EQUITY FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT


	EQUITY FUNDS

SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


LARGE CAP VALUE FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 99.0%
Banks - 2.3%
Wachovia Corp.		554,000		$27,783

Beverages - 3.5%
Anheuser-Busch Cos., Inc.		497,000		24,845
Coca-Cola (The) Co.		299,000		17,184

				42,029

Chemicals - 1.8%
Dow Chemical (The) Co.		505,000		21,745

Commercial Services - 1.6%
H&R Block, Inc.		904,000		19,147

Diversified Financial Services - 9.9%
CIT Group, Inc.		342,000		13,748
Citigroup, Inc.		622,000		29,029
Countrywide Financial Corp.		680,000		12,927
Fannie Mae		271,000		16,480
Freddie Mac		392,000		23,132
JPMorgan Chase & Co.		471,000		21,581

				116,897

Food - 6.4%
Hershey (The) Co.		463,000		21,488
Kraft Foods, Inc., Class A		727,000		25,089
Sara Lee Corp.		1,741,000		29,057

				75,634

Forest Products & Paper - 3.9%
MeadWestvaco Corp.		795,000		23,477
Weyerhaeuser Co.		311,000		22,485

				45,962

Healthcare - Products - 2.8%
Johnson & Johnson		511,000		33,573

Insurance - 3.6%
Lincoln National Corp.		330,000		21,770
XL Capital Ltd., Class A		257,000		20,354

				42,124

Leisure Time - 2.0%
Carnival Corp.		483,000		23,392

Media - 9.0%
CBS Corp., Class B		775,000		24,412
Clear Channel Communications, Inc.		692,000		25,908
Gannett Co., Inc.		622,000		27,181
New York Times Co., Class A		976,000		19,286
Tribune Co.		329,851		9,012

				105,799

See Notes to the Financial Statements.


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 99.0% – CONTINUED
Mining - 2.3%
Alcoa, Inc.		683,000		$26,719

Miscellaneous Manufacturing - 6.5%
3M Co.		198,000		18,529
Eastman Kodak Co.		861,000		23,040
General Electric Co.		840,000		34,776

				76,345

Office/Business Equipment - 2.2%
Pitney Bowes, Inc.		568,000		25,799

Pharmaceuticals - 12.5%
Abbott Laboratories		316,000		16,944
Bristol-Myers Squibb Co.		1,065,000		30,693
Lilly (Eli) & Co.		426,000		24,252
Pfizer, Inc.		1,219,000		29,780
Sanofi-Aventis ADR		575,000		24,392
Wyeth		478,000		21,295

				147,356

Retail - 3.2%
Home Depot (The), Inc.		624,000		20,242
Wal-Mart Stores, Inc.		395,000		17,242

				37,484

Savings & Loans - 2.3%
New York Community Bancorp, Inc.		1,428,000		27,203

Semiconductors - 7.2%
Analog Devices, Inc.		565,000		20,430
Intel Corp.		1,423,000		36,799
Linear Technology Corp.		809,000		28,307

				85,536

Telecommunications - 13.9%
AT&T, Inc.		956,700		40,478
Deutsche Telekom A.G. ADR		1,500,000		29,445
Embarq Corp.		549,000		30,524
NTT DoCoMo, Inc.		1,181,000		16,818
Verizon Communications, Inc.		787,000		34,848
Windstream Corp.		882,000		12,454

				164,567

Transportation - 2.1%
United Parcel Service, Inc., Class B		324,000		24,332

Total Common Stocks

(Cost $1,046,477)				1,169,426

NORTHERN FUNDS SEMIANNUAL REPORT 43 EQUITY FUNDS


EQUITY FUNDS

	SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


	LARGE CAP VALUE FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 1.1%
ABN-Amro Bank, Amsterdam,
Eurodollar Time Deposit
5.50%, 10/1/07		$13,190		$13,190

Total Short-Term Investment

(Cost $13,190)				13,190


Total Investments - 100.1%

(Cost $1,059,666)				1,182,616
Liabilities less Other Assets - (0.1)%				(1,135	)

NET ASSETS - 100.0%				$1,181,481

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Large Cap Value Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		14.5	%
Consumer Staples		11.8
Financials		18.6
Health Care		15.8
Industrials		9.1
Information Technology		7.5
Materials		8.3
Telecommunication Services		14.4


Total		100.0	%

See Notes to the Financial Statements.

EQUITY FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT


	EQUITY FUNDS

SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


MID CAP GROWTH FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.1%
Aerospace/Defense - 3.3%
Goodrich Corp.		48,800		$3,330
Rockwell Collins, Inc.		44,226		3,230

				6,560

Apparel - 2.1%
Coach, Inc. *		39,400		1,862
Phillips-Van Heusen Corp.		44,817		2,352

				4,214

Auto Parts & Equipment - 1.5%
Johnson Controls, Inc.		25,700		3,035

Banks - 1.6%
TCF Financial Corp.		123,800		3,241

Beverages - 1.5%
Hansen Natural Corp. *		51,900		2,942

Biotechnology - 2.9%
Charles River Laboratories International, Inc. *		59,200		3,324
Invitrogen Corp. *		28,900		2,362

				5,686

Chemicals - 2.5%
Air Products & Chemicals, Inc.		27,100		2,649
FMC Corp.		45,800		2,383

				5,032

Commercial Services - 6.0%
Apollo Group, Inc., Class A *		56,000		3,368
DeVry, Inc.		70,200		2,598
Dun & Bradstreet Corp.		30,000		2,958
Quanta Services, Inc. *		110,300		2,918

				11,842

Computers - 4.2%
Cadence Design Systems, Inc. *		109,300		2,425
IHS, Inc., Class A *		40,700		2,299
Micros Systems, Inc. *		53,800		3,501

				8,225

Diversified Financial Services - 3.7%
Ameriprise Financial, Inc.		39,400		2,487
CIT Group, Inc.		49,600		1,994
Jefferies Group, Inc.		99,800		2,777

				7,258

Electrical Components & Equipment - 1.6%
Ametek, Inc.		71,300		3,082

Electronics - 6.5%
Amphenol Corp., Class A		67,200		2,672


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.1% – CONTINUED
Electronics - 6.5% – (continued)
Dolby Laboratories, Inc., Class A *		57,300		$1,995
National Instruments Corp.		67,900		2,331
Trimble Navigation Ltd. *		61,300		2,404
Waters Corp. *		52,600		3,520

				12,922

Engineering & Construction - 2.0%
Chicago Bridge & Iron Co. N.V., New York Shares		68,426		2,947
Jacobs Engineering Group, Inc. *		13,300		1,005

				3,952

Food - 1.4%
Hain Celestial Group, Inc. *		86,600		2,782

Healthcare - Products - 1.3%
Dentsply International, Inc.		63,400		2,640

Healthcare - Services - 6.0%
Coventry Health Care, Inc. *		57,900		3,602
Laboratory Corp. of America Holdings *		30,100		2,355
Pediatrix Medical Group, Inc. *		43,700		2,859
Psychiatric Solutions, Inc. *		76,822		3,017

				11,833

Household Products/Wares - 1.6%
Church & Dwight, Inc.		65,800		3,095

Insurance - 0.9%
AMBAC Financial Group, Inc.		28,200		1,774

Iron/Steel - 1.3%
Carpenter Technology Corp.		20,500		2,665

Machinery - Diversified - 1.6%
AGCO Corp. *		62,258		3,161

Media - 3.2%
Discovery Holding Co., Class A *		113,400		3,271
Liberty Global, Inc., Class A *		76,200		3,126

				6,397

Miscellaneous Manufacturing - 5.8%
Aptargroup, Inc.		73,500		2,783
Roper Industries, Inc.		38,500		2,522
SPX Corp.		27,700		2,564
Textron, Inc.		56,900		3,540

				11,409

Oil & Gas - 1.7%
Noble Energy, Inc.		47,300		3,313

Oil & Gas Services - 8.3%
Cameron International Corp. *		34,400		3,175

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 EQUITY FUNDS


EQUITY FUNDS

	SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


	MID CAP GROWTH FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.1% – CONTINUED
Oil & Gas Services - 8.3% – (continued)
Core Laboratories N.V. *		20,000		$2,548
Dresser-Rand Group, Inc. *		80,600		3,442
FMC Technologies, Inc. *		35,600		2,053
Grant Prideco, Inc. *		57,600		3,140
National-Oilwell Varco, Inc. *		13,571		1,961

				16,319

Pharmaceuticals - 2.4%
Express Scripts, Inc. *		84,000		4,689

Real Estate - 1.1%
CB Richard Ellis Group, Inc., Class A *		82,136		2,287

Retail - 6.5%
Burger King Holdings, Inc.		117,700		3,000
Family Dollar Stores, Inc.		108,300		2,877
GameStop Corp., Class A *		33,100		1,865
PetSmart, Inc.		91,800		2,928
Tiffany & Co.		39,900		2,089

				12,759

Semiconductors - 6.6%
Intersil Corp., Class A		85,400		2,855
Kla-Tencor Corp.		38,900		2,170
National Semiconductor Corp.		75,700		2,053
Nvidia Corp. *		70,550		2,556
ON Semiconductor Corp. *		269,500		3,385

				13,019

Software - 6.1%
Activision, Inc. *		114,500		2,472
Ansys, Inc. *		81,400		2,781
Autodesk, Inc. *		48,700		2,434
NAVTEQ Corp. *		30,800		2,401
Total System Services, Inc.		67,800		1,884

				11,972

Telecommunications - 2.9%
Foundry Networks, Inc. *		167,200		2,971
Millicom International Cellular S.A. *		31,900		2,677

				5,648

Total Common Stocks

(Cost $171,434)				193,753


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 1.6%
ABN-Amro Bank, Amsterdam,
Eurodollar Time Deposit,
5.50%, 10/1/07		$3,134		$3,134

Total Short-Term Investment

(Cost $3,134)				3,134


Total Investments - 99.7%

(Cost $174,568)				196,887
Other Assets less Liabilities - 0.3%				630

NET ASSETS - 100.0%				$197,517


*		Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Mid Cap Growth Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		16.7	%
Consumer Staples		4.6
Energy		10.1
Financials		7.5
Health Care		14.6
Industrials		17.3
Information Technology		22.4
Materials		5.4
Telecommunication Services		1.4


Total		100.0	%

See Notes to the Financial Statements.

EQUITY FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT


	EQUITY FUNDS

SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


SELECT EQUITY FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 100.3%
Aerospace/Defense - 3.6%
Boeing (The) Co.		49,600		$5,208
Lockheed Martin Corp.		13,200		1,432

				6,640

Apparel - 1.4%
NIKE, Inc., Class B		44,700		2,622

Auto and Truck Manufacturers - 1.5%
PACCAR, Inc.		31,000		2,643

Auto Parts & Equipment - 1.7%
Johnson Controls, Inc.		25,700		3,035

Beverages - 3.3%
Anheuser-Busch Cos., Inc.		52,400		2,620
Diageo PLC ADR		38,200		3,351

				5,971

Chemicals - 2.0%
Monsanto Co.		42,600		3,652

Commercial Services - 2.3%
Accenture Ltd., Class A		60,400		2,431
McKesson Corp.		29,700		1,746

				4,177

Computers - 11.2%
Apple, Inc. *		11,900		1,827
Dell, Inc. *		68,100		1,879
EMC Corp. of Massachusetts *		228,300		4,749
Hewlett-Packard Co.		116,000		5,776
IBM Corp.		52,600		6,196

				20,427

Cosmetics/Personal Care - 1.4%
Colgate-Palmolive Co.		36,700		2,617

Diversified Financial Services - 1.0%
Janus Capital Group, Inc.		62,900		1,779

Electrical Components & Equipment - 1.7%
Energizer Holdings, Inc. *		28,700		3,181

Electronics - 1.6%
Waters Corp. *		43,300		2,898

Engineering & Construction - 8.8%
ABB Ltd. ADR		143,600		3,767
Fluor Corp.		25,000		3,600
Jacobs Engineering Group, Inc. *		47,400		3,582
KBR, Inc. *		60,200		2,334
McDermott International, Inc. *		50,300		2,720

				16,003


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 100.3% – CONTINUED
Healthcare - Products - 2.9%
Baxter International, Inc.		55,700		$3,135
Stryker Corp.		32,000		2,200

				5,335

Healthcare - Services - 1.0%
Aetna, Inc.		33,900		1,840

Insurance - 3.1%
Aflac, Inc.		63,800		3,639
Travelers Cos. (The), Inc.		41,300		2,079

				5,718

Internet - 5.0%
Amazon.com, Inc. *		51,400		4,788
eBay, Inc. *		112,000		4,370

				9,158

Machinery - Diversified - 2.3%
Deere & Co.		28,400		4,215

Mining - 1.9%
Southern Copper Corp.		27,400		3,393

Oil & Gas - 3.8%
Chevron Corp.		33,600		3,144
Exxon Mobil Corp.		41,700		3,860

				7,004

Oil & Gas Services - 8.2%
Cameron International Corp. *		41,900		3,867
National-Oilwell Varco, Inc. *		30,100		4,349
Schlumberger Ltd.		64,300		6,752

				14,968

Pharmaceuticals - 9.3%
Express Scripts, Inc. *		43,400		2,423
Medco Health Solutions, Inc. *		48,100		4,348
Merck & Co., Inc.		41,100		2,124
Schering-Plough Corp.		159,000		5,029
Teva Pharmaceutical Industries Ltd. ADR		69,300		3,082

				17,006

Retail - 5.1%
GameStop Corp., Class A *		69,300		3,905
McDonald’s Corp.		51,500		2,805
TJX Cos., Inc.		91,300		2,654

				9,364

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 EQUITY FUNDS


EQUITY FUNDS

	SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


	SELECT EQUITY FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 100.3% – CONTINUED
Semiconductors - 1.0%
MEMC Electronic Materials, Inc. *		29,900		$1,760

Software - 5.1%
Microsoft Corp.		179,100		5,276
Oracle Corp. *		185,700		4,021

				9,297

Telecommunications - 10.1%
America Movil SAB de C.V. ADR, Series L		41,300		2,643
Cisco Systems, Inc. *		234,600		7,768
Juniper Networks, Inc. *		94,900		3,474
Nokia OYJ ADR		120,400		4,567

				18,452

Total Common Stocks

(Cost $150,922)				183,155

	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 2.1%
ABN-Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$3,879		$3,879

Total Short-Term Investment

(Cost $3,879)				3,879


Total Investments - 102.4%

(Cost $154,801)				187,034
Liabilities less Other Assets - (2.4)%				(4,326	)

NET ASSETS - 100.0%				$182,708


*		Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Select Equity Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		10.8	%
Consumer Staples		6.4
Energy		12.0
Financials		4.1
Health Care		15.7
Industrials		16.1
Information Technology		29.6
Materials		3.9
Telecommunication Services		1.4


Total		100.0	%

See Notes to the Financial Statements.

EQUITY FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT


	EQUITY FUNDS

SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


SMALL CAP GROWTH FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.9%
Advertising - 1.0%
inVentiv Health, Inc. *		11,950		$524

Aerospace/Defense - 5.7%
BE Aerospace, Inc. *		17,100		710
EDO Corp.		6,300		353
Kaman Corp.		15,725		544
Orbital Sciences Corp. *		14,450		321
Teledyne Technologies, Inc. *		7,500		401
TransDigm Group, Inc. *		5,850		267
Triumph Group, Inc.		4,225		345

				2,941

Apparel - 2.0%
Gymboree Corp. *		13,850		488
Warnaco Group (The), Inc. *		13,975		546

				1,034

Biotechnology - 1.3%
Myriad Genetics, Inc. *		7,033		367
Savient Pharmaceuticals, Inc. *		20,712		301

				668

Chemicals - 1.4%
CF Industries Holdings, Inc.		5,950		451
Terra Industries, Inc. *		8,600		269

				720

Commercial Services - 7.0%
Bankrate, Inc. *		7,547		348
Chemed Corp.		5,545		345
Consolidated Graphics, Inc. *		6,450		405
DeVry, Inc.		16,625		615
Interactive Data Corp.		20,050		565
Quanta Services, Inc. *		12,841		340
Strayer Education, Inc.		3,575		603
Team, Inc. *		14,100		386

				3,607

Computers - 5.6%
Ansoft Corp. *		12,695		419
Factset Research Systems, Inc.		6,226		427
IHS, Inc., Class A *		10,400		587
Magma Design Automation, Inc. *		25,775		362
Manhattan Associates, Inc. *		14,399		395
Micros Systems, Inc. *		11,000		716

				2,906


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.9% – CONTINUED
Cosmetics/Personal Care - 0.7%
Chattem, Inc. *		5,400		$381

Diversified Financial Services - 4.2%
Advanta Corp., Class B		20,675		567
GFI Group, Inc. *		7,025		605
Portfolio Recovery Associates, Inc. *		10,725		569
World Acceptance Corp. *		13,550		448

				2,189

Electrical Components & Equipment - 1.7%
General Cable Corp. *		8225		552
Universal Electronics, Inc. *		10,625		345

				897

Electronics - 4.3%
Dionex Corp. *		5,010		398
FARO Technologies, Inc. *		8,800		389
Flir Systems, Inc. *		6,531		362
Rofin-Sinar Technologies, Inc. *		8,400		590
Varian, Inc. *		7,444		473

				2,212

Engineering & Construction - 2.2%
Dycom Industries, Inc. *		15,100		462
EMCOR Group, Inc. *		11,225		352
URS Corp. *		5,875		332

				1,146

Entertainment - 2.2%
Bally Technologies, Inc. *		16,525		586
Vail Resorts, Inc. *		8,900		554

				1,140

Food - 1.9%
Flowers Foods, Inc.		26,325		574
Hain Celestial Group, Inc. *		12,300		395

				969

Healthcare - Products - 3.5%
Align Technology, Inc. *		16,820		426
Arthrocare Corp. *		7,618		426
Immucor, Inc. *		14,128		505
Meridian Bioscience, Inc.		14,166		429

				1,786

Healthcare - Services - 2.4%
Nighthawk Radiology Holdings, Inc. *		17,616		432
Pediatrix Medical Group, Inc. *		6,077		397

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		SMALL CAP GROWTH FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.9% — CONTINUED
Healthcare - Services - 2.4% – (continued)
Sunrise Senior Living, Inc. *		11,275		$399

				1,228

Home Furnishings - 1.2%
Tempur-Pedic International, Inc.		17,250		617

				617

Household Products/Wares - 1.9%
Fossil, Inc. *		12,200		456
Tupperware Brands Corp.		17,250		543

				999

Insurance - 2.7%
American Equity Investment Life Holding Co.		49,525		527
CNA Surety Corp. *		20,450		361
Delphi Financial Group, Inc., Class A		12,175		492

				1,380

Internet - 3.7%
eResearch Technology, Inc. *		35,493		404
Priceline.com, Inc. *		5,175		459
ValueClick, Inc. *		14,495		326
Vasco Data Security International, Inc. *		20,700		731

				1,920

Iron/Steel - 1.6%
Carpenter Technology Corp.		2,950		384
Cleveland-Cliffs, Inc.		4,925		433

				817

Leisure Time - 1.2%
Ambassadors Group, Inc.		16,325		622

Lodging - 0.9%
Monarch Casino & Resort, Inc. *		16,375		466

Machinery - Diversified - 2.7%
Kadant, Inc. *		9,325		261
Middleby Corp. *		7,400		478
Wabtec Corp.		17,200		644

				1,383

Metal Fabrication/Hardware - 1.5%
Kaydon Corp.		7,125		370
RBC Bearings, Inc. *		11,100		426

				796

Mining - 0.6%
Century Aluminum Co. *		6,300		332

Miscellaneous Manufacturing - 0.7%
Acuity Brands, Inc.		6,925		350


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.9% – CONTINUED
Oil & Gas - 1.5%
Atwood Oceanics, Inc. *		9,975		$764

Oil & Gas Services - 3.1%
Cal Dive International, Inc. *		26,300		395
Exterran Holdings, Inc. *		3,425		275
Matrix Service Co. *		19,450		407
NATCO Group, Inc., Class A *		10,025		519

				1,596

Pharmaceuticals - 6.0%
Cubist Pharmaceuticals, Inc. *		15,052		318
Cypress Bioscience, Inc. *		37,946		519
Isis Pharmaceuticals, Inc. *		20,852		312
KV Pharmaceutical Co., Class A *		12,761		365
MGI Pharma, Inc. *		16,327		454
Perrigo Co.		15,492		331
Pharmion Corp. *		8,619		398
Sciele Pharma, Inc. *		16,808		437

				3,134

Retail - 3.8%
Aeropostale, Inc. *		24,725		471
Burger King Holdings, Inc.		16,575		423
Jos. A. Bank Clothiers, Inc. *		12,000		401
Men’s Wearhouse, Inc.		13,200		667

				1,962

Semiconductors - 3.1%
Emulex Corp. *		15,800		303
Netlogic Microsystems, Inc. *		12,046		435
ON Semiconductor Corp. *		38,117		478
Verigy Ltd. *		16,745		414

				1,630

Software - 8.7%
Actuate Corp. *		51,264		331
Blackboard, Inc. *		10,314		473
Concur Technologies, Inc. *		12,357		389
Double-Take Software, Inc. *		28,006		535
FalconStor Software, Inc. *		30,173		363
Informatica Corp. *		26,612		418
Nuance Communications, Inc. *		26,943		520
Omnicell, Inc. *		20,325		580
Phase Forward, Inc. *		28,376		568
Wind River Systems, Inc. *		26,743		315

				4,492

See Notes to the Financial Statements.

EQUITY FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.9% – CONTINUED
Telecommunications - 4.5%
Anixter International, Inc. *		8,625		$711
Arris Group, Inc. *		32,937		407
Atheros Communications, Inc. *		11,276		338
Foundry Networks, Inc. *		29,565		525
Plantronics, Inc.		12,056		344

				2,325

Transportation - 1.4%
Gulfmark Offshore, Inc. *		8,900		433
Horizon Lines, Inc., Class A		9,200		281

				714

Total Common Stocks

(Cost $44,145)				50,647


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 1.6%
ABN-Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$816		816

Total Short-Term Investment

(Cost $816)				816


Total Investments - 99.5%

(Cost $44,961)				51,463
Other Assets less Liabilities - 0.5%				263

NET ASSETS - 100.0%				$51,726

Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Small Cap Growth Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		18.6	%
Consumer Staples		2.7
Energy		5.5
Financials		7.1
Health Care		20.0
Industrials		17.2
Information Technology		25.2
Materials		3.7


Total		100.0	%

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 51 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		SMALL CAP VALUE FUND


	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS – 94.7%
Advertising - 0.0%
inVentiv Health, Inc. *		8,400		$368
Marchex, Inc., Class B		2,000		19

				387

Aerospace/Defense - 2.2%
Curtiss-Wright Corp.		76,300		3,624
Ducommun, Inc. *		12,536		405
Esterline Technologies Corp. *		173,363		9,890
Heico Corp.		13,860		684
Moog, Inc., Class A *		134,350		5,903
MTC Technologies, Inc. *		6,000		116
Orbital Sciences Corp. *		45,431		1,011
Sequa Corp., Class A *		8,900		1,476

				23,109

Airlines - 0.9%
Republic Airways Holdings, Inc. *		44,750		948
Skywest, Inc.		339,338		8,541

				9,489

Apparel - 1.1%
Deckers Outdoor Corp. *		15,600		1,713
Delta Apparel, Inc.		1,800		31
Kellwood Co.		29,950		511
Oxford Industries, Inc.		47,172		1,704
Perry Ellis International, Inc. *		24,227		671
Skechers U.S.A., Inc., Class A *		52,000		1,149
Warnaco Group (The), Inc. *		118,747		4,639
Wolverine World Wide, Inc.		22,207		609

				11,027

Auto Parts & Equipment - 0.5%
Accuride Corp. *		42,846		519
Aftermarket Technology Corp. *		80,760		2,563
ArvinMeritor, Inc.		4,900		83
Commercial Vehicle Group, Inc. *		25,884		332
Dorman Products, Inc. *		1,300		18
Modine Manufacturing Co.		64,496		1,717
Standard Motor Products, Inc.		28,409		267
Strattec Security Corp.		600		28

				5,527

Banks - 11.9%
1st Source Corp.		103,596		2,372
Alabama National Bancorp		43,466		3,387
Alliance Financial Corp. of New York		800		20


	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.7% – CONTINUED
Banks - 11.9% – (continued)
Amcore Financial, Inc.		52,731		$1,314
Ameris Bancorp		15,439		279
Bancfirst Corp.		31,144		1,397
BancorpSouth, Inc.		113,310		2,753
BancTrust Financial Group, Inc.		4,600		73
Bank Mutual Corp.		7,600		90
Banner Corp.		19,041		655
Berkshire Bancorp, Inc.		5,906		96
Boston Private Financial Holdings, Inc.		68,985		1,921
Cadence Financial Corp.		1,900		33
Capitol Bancorp Ltd.		24,356		605
Central Pacific Financial Corp.		130,608		3,814
Chemical Financial Corp.		67,813		1,644
Chittenden Corp.		21,400		752
Citizens & Northern Corp.		1,500		28
Citizens Republic Bancorp, Inc.		21,757		351
City Holding Co.		27,774		1,011
Community Bancorp of Nevada *		13,751		346
Community Bank System, Inc.		255,176		4,981
Community Trust Bancorp, Inc.		49,511		1,487
Eastern Virginia Bankshares, Inc.		1,300		25
Farmers Capital Bank Corp.		7,366		210
Financial Institutions, Inc.		2,707		49
First Citizens BancShares, Inc. of North Carolina, Class A		26,785		4,671
First Commonwealth Financial Corp.		283,456		3,135
First Community Bancorp, Inc. of California		69,113		3,781
First Community Bancshares, Inc. of Virginia		33,929		1,229
First Financial Corp. of Indiana		64,100		1,942
First Indiana Corp.		38,680		1,211
First M & F Corp.		17,077		302
First Merchants Corp.		75,711		1,632
First State Bancorporation of New Mexico		60,053		1,179
First United Corp.		300		6
Firstbank Corp. of Michigan		1,300		21
FirstMerit Corp.		175,300		3,464
FNB Corp. of Pennsylvania		29,300		485
FNB Corp. of Virginia		7,297		220
GB&T Bancshares, Inc.		20,043		266
Greater Bay Bancorp		161,654		4,462
Hanmi Financial Corp.		89,240		1,382
Harleysville National Corp.		56,511		898
IBERIABANK Corp.		17,407		917

See Notes to the Financial Statements.

EQUITY FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT




	SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.7% – CONTINUED
Banks - 11.9% – (continued)
Imperial Capital Bancorp, Inc.		5,500		$155
International Bancshares Corp.		75,775		1,644
Intervest Bancshares Corp.		10,405		258
Lakeland Bancorp, Inc.		45,415		617
Macatawa Bank Corp.		31,412		425
MainSource Financial Group, Inc.		23,285		411
MB Financial, Inc.		65,080		2,249
National City Corp.		119,031		2,987
National Penn Bancshares, Inc.		125,645		2,056
Old National Bancorp of Indiana		174,434		2,890
Park National Corp.		13,300		1,160
Peoples Bancorp, Inc. of Ohio		30,099		788
Prosperity Bancshares, Inc.		69,038		2,289
Provident Bankshares Corp.		61,054		1,913
Renasant Corp.		25,773		557
Republic Bancorp, Inc. of Kentucky, Class A		65,217		1,033
Royal Bancshares of Pennsylvania, Inc., Class A		11,649		255
S & T Bancorp, Inc.		35,900		1,152
Security Bank Corp. of Georgia		38,258		479
Simmons First National Corp., Class A		76,203		2,007
Southwest Bancorp, Inc. of Oklahoma		31,054		584
Sterling Financial Corp. of Pennsylvania		51,396		881
Sterling Financial Corp. of Washington		181,413		4,882
Sun Bancorp, Inc. of New Jersey *		9,086		159
Susquehanna Bancshares, Inc.		166,790		3,353
Taylor Capital Group, Inc.		15,596		436
Trustmark Corp.		100,400		2,815
UCBH Holdings, Inc.		81,300		1,421
UMB Financial Corp.		139,956		5,999
Umpqua Holdings Corp.		241,918		4,841
Union Bankshares Corp. of Virginia		22,523		512
United Bankshares, Inc.		49,950		1,521
Univest Corp. of Pennsylvania		58,079		1,378
Virginia Financial Group, Inc.		11,623		221
Webster Financial Corp.		54,617		2,300
WesBanco, Inc.		84,205		2,103
Wintrust Financial Corp.		72,343		3,088
Yadkin Valley Financial Corp.		600		10
Yardville National Bancorp		18,101		609

				123,334

Beverages - 0.3%
PepsiAmericas, Inc.		79,300		2,573


	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.7% – CONTINUED
Biotechnology - 0.2%
Bio-Rad Laboratories, Inc., Class A *		25,445		$2,303
Harvard Bioscience, Inc. *		700		3

				2,306

Building Materials - 0.9%
Comfort Systems USA, Inc.		17,400		247
Gibraltar Industries, Inc.		87,304		1,615
LSI Industries, Inc.		67,036		1,376
NCI Building Systems, Inc. *		63,399		2,739
Simpson Manufacturing Co., Inc.		40,500		1,290
Universal Forest Products, Inc.		55,368		1,656

				8,923

Chemicals - 3.4%
Aceto Corp.		1,800		16
Arch Chemicals, Inc.		109,771		5,146
Cytec Industries, Inc.		34,728		2,375
Fuller (H.B.) Co.		193,545		5,744
Minerals Technologies, Inc.		94,172		6,310
NewMarket Corp.		25,235		1,246
NL Industries, Inc.		10,600		120
Schulman (A.), Inc.		105,858		2,089
Sensient Technologies Corp.		171,565		4,953
Spartech Corp.		42,600		727
Terra Industries, Inc. *		176,200		5,508
Westlake Chemical Corp.		57,760		1,463

				35,697

Commercial Services - 3.1%
ABM Industries, Inc.		29,800		595
Albany Molecular Research, Inc. *		3,300		50
Carriage Services, Inc. *		4,300		35
CBIZ, Inc. *		286,205		2,275
Coinstar, Inc. *		39,100		1,258
Consolidated Graphics, Inc. *		7,700		484
Cross Country Healthcare, Inc. *		110,575		1,932
Dollar Thrifty Automotive Group *		84,100		2,917
Electro Rent Corp.		47,739		669
Exponent, Inc. *		16,008		402
First Advantage Corp., Class A *		13,772		243
First Consulting Group, Inc. *		700		7
ICT Group, Inc. *		18,146		243
Intersections, Inc. *		800		8
Kelly Services, Inc., Class A		42,951		851
MAXIMUS, Inc.		13,056		569

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 53 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		SMALL CAP VALUE FUND (continued)


	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.7% – CONTINUED
Commercial Services - 3.1% – (continued)
MPS Group, Inc. *		680,334		$7,586
On Assignment, Inc. *		26,982		252
PeopleSupport, Inc. *		28,705		343
PRA International *		19,915		586
Providence Service (The) Corp. *		12,400		364
Rent-A-Center, Inc. *		180,819		3,278
Startek, Inc.		1,700		17
Stewart Enterprises, Inc., Class A		288,789		2,201
TeleTech Holdings, Inc. *		22,863		547
United Rentals, Inc. *		68,700		2,210
Viad Corp.		37,163		1,338
Volt Information Sciences, Inc. *		28,194		497

				31,757

Computers - 2.3%
Agilysys, Inc.		30,604		517
CACI International, Inc., Class A *		41,200		2,105
CIBER, Inc. *		126,005		984
Dynamics Research Corp. *		700		8
Hutchinson Technology, Inc. *		36,242		892
Imation Corp.		120,439		2,954
Integral Systems, Inc. of Maryland		9,776		210
MTS Systems Corp.		23,215		966
Ness Technologies, Inc. *		43,743		478
Netscout Systems, Inc. *		2,800		30
Palm, Inc. *		294,194		4,787
Perot Systems Corp., Class A *		499,921		8,454
Radisys Corp. *		984		12
SI International, Inc. *		44,571		1,273
TechTeam Global, Inc. *		1,700		20

				23,690

Cosmetics/Personal Care - 0.2%
Alberto-Culver Co.		82,172		2,037

Distribution/Wholesale - 0.7%
BlueLinx Holdings, Inc.		3,800		27
Brightpoint, Inc. *		51,062		766
Central European Distribution Corp. *		16,600		795
Core-Mark Holding Co., Inc. *		3,600		127
Owens & Minor, Inc.		46,600		1,775
United Stationers, Inc. *		75,000		4,164

				7,654

Diversified Financial Services - 1.5%
Advanta Corp., Class B		43,651		1,197


	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.7% – CONTINUED
Diversified Financial Services - 1.5% – (continued)
AmeriCredit Corp. *		115,334		$2,028
CompuCredit Corp. *		137,586		2,987
Credit Acceptance Corp. *		43,788		1,011
Federal Agricultural Mortgage Corp., Class C		23,233		682
Financial Federal Corp.		74,861		2,097
Merrill Lynch & Co., Inc.		10,624		757
Ocwen Financial Corp. *		276,845		2,611
Stifel Financial Corp. *		12,800		740
SWS Group, Inc.		58,182		1,029

				15,139

Electric - 1.9%
Avista Corp.		20,709		421
Central Vermont Public Service Corp.		16,000		585
CH Energy Group, Inc.		23,587		1,127
Empire District Electric (The) Co.		33,123		748
Idacorp, Inc.		63,093		2,066
MGE Energy, Inc.		14,263		477
Otter Tail Corp.		63,581		2,267
PNM Resources, Inc.		42,095		980
UIL Holdings Corp.		112,815		3,554
Unisource Energy Corp.		129,900		3,883
Westar Energy, Inc.		163,300		4,010

				20,118

Electrical Components & Equipment - 0.7%
Belden, Inc.		33,000		1,548
Encore Wire Corp.		113,138		2,843
Greatbatch, Inc. *		46,200		1,228
Littelfuse, Inc. *		16,800		600
Molex, Inc., Class A		42,512		1,078

				7,297

Electronics - 3.8%
Analogic Corp.		44,389		2,830
AVX Corp.		75,300		1,212
Axsys Technologies, Inc. *		1,800		56
Bel Fuse, Inc., Class B		35,758		1,239
Brady Corp., Class A		48,300		1,733
Checkpoint Systems, Inc. *		97,503		2,573
Coherent, Inc. *		18,205		584
CTS Corp.		219,436		2,831
Cymer, Inc. *		70,000		2,687
Electro Scientific Industries, Inc. *		144,559		3,464
Excel Technology, Inc. *		36,635		914

See Notes to the Financial Statements.

EQUITY FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT




	SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.7% – CONTINUED
Electronics - 3.8% – (continued)
FEI Co. *		36,579		$1,150
Keithley Instruments, Inc.		1,600		17
Kemet Corp. *		14,000		103
Multi-Fineline Electronix, Inc. *		28,253		419
Newport Corp. *		49,387		752
Park Electrochemical Corp.		38,824		1,304
PerkinElmer, Inc.		43,900		1,282
Plexus Corp. *		50,995		1,397
Rofin-Sinar Technologies, Inc. *		23,846		1,674
Rogers Corp. *		20,027		825
Spectrum Control, Inc. *		2,200		32
Stoneridge, Inc. *		33,118		338
Technitrol, Inc.		14,806		399
Tektronix, Inc.		44,361		1,231
TTM Technologies, Inc. *		204,322		2,364
Varian, Inc. *		25,800		1,641
Watts Water Technologies, Inc., Class A		139,751		4,290
Zygo Corp. *		20,758		271

				39,612

Engineering & Construction - 0.5%
Dycom Industries, Inc. *		43,190		1,323
EMCOR Group, Inc. *		67,108		2,104
Insituform Technologies, Inc., Class A *		2,124		32
URS Corp. *		27,291		1,541

				5,000

Entertainment - 1.1%
Bluegreen Corp. *		67,312		522
Churchill Downs, Inc.		61,860		3,090
Pinnacle Entertainment, Inc. *		158,082		4,304
Speedway Motorsports, Inc.		99,100		3,667

				11,583

Environmental Control - 0.2%
Metal Management, Inc.		35,600		1,929
Waste Industries USA, Inc.		15,992		458

				2,387

Food - 2.6%
Flowers Foods, Inc.		152,812		3,331
Hain Celestial Group, Inc. *		151,319		4,862
Imperial Sugar Co.		16,649		435
Lance, Inc.		49,863		1,148
Nash Finch Co.		6,179		246
Performance Food Group Co. *		68,779		2,072


	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.7% – CONTINUED
Food - 2.6% – (continued)
Ralcorp Holdings, Inc. *		25,857		$1,444
Ruddick Corp.		278,483		9,340
Weis Markets, Inc.		102,108		4,359

				27,237

Forest Products & Paper - 0.3%
Mercer International, Inc. *		51,595		488
Potlatch Corp.		45,700		2,058
Rock-Tenn Co., Class A		31,886		921

				3,467

Gas - 1.9%
Laclede Group (The), Inc.		33,441		1,079
Northwest Natural Gas Co.		71,367		3,262
Piedmont Natural Gas Co., Inc.		90,500		2,271
South Jersey Industries, Inc.		92,072		3,204
Southwest Gas Corp.		132,791		3,757
Vectren Corp.		47,100		1,285
WGL Holdings, Inc.		152,800		5,178

				20,036

Hand/Machine Tools - 0.8%
Hardinge, Inc.		13,354		465
Regal-Beloit Corp.		173,872		8,327

				8,792

Healthcare – Products - 1.1%
Atrion Corp.		300		37
Candela Corp. *		2,900		25
Cantel Medical Corp. *		10,000		156
Conmed Corp. *		108,357		3,033
Cooper Cos., Inc.		15,600		818
Datascope Corp.		49,825		1,685
E-Z-Em-Inc. *		4,400		72
Exactech, Inc. *		1,900		30
Haemonetics Corp. of Massachusetts *		6,500		321
Home Diagnostics, Inc. *		1,500		14
ICU Medical, Inc. *		1,700		66
Merit Medical Systems, Inc. *		26,468		343
Microtek Medical Holdings, Inc. *		2,400		15
OraSure Technologies, Inc. *		11,200		113
Osteotech, Inc. *		2,018		15
PSS World Medical, Inc. *		6,954		133
Somanetics Corp. *		300		6
STERIS Corp.		75,300		2,058
Symmetry Medical, Inc. *		34,100		569

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 55 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		SMALL CAP VALUE FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.7% – CONTINUED
Healthcare - Products - 1.1% – (continued)
Thoratec Corp. *		12,600		$261
Utah Medical Products, Inc.		700		22
Vital Signs, Inc.		14,200		740
Wright Medical Group, Inc. *		8,500		228
Young Innovations, Inc.		2,200		63
Zoll Medical Corp. *		3,400		88

				10,911


Healthcare - Services - 2.8%
Amedisys, Inc. *		30,600		1,176
AMERIGROUP Corp. *		183,600		6,331
Amsurg Corp. *		42,400		978
Apria Healthcare Group, Inc. *		50,900		1,324
Centene Corp. *		9,600		206
Continucare Corp. *		9,900		28
Gentiva Health Services, Inc. *		13,966		268
Kindred Healthcare, Inc. *		106,600		1,909
LifePoint Hospitals, Inc. *		145,829		4,376
Magellan Health Services, Inc. *		140,100		5,685
Matria Healthcare, Inc. *		25,919		678
Medcath Corp. *		2,900		80
Molina Healthcare, Inc. *		34,600		1,255
National Healthcare Corp.		12,100		622
NovaMed, Inc. *		4,100		18
Odyssey HealthCare, Inc. *		43,609		419
Res-Care, Inc. *		92,449		2,112
U.S. Physical Therapy, Inc. *		1,900		28
Universal Health Services, Inc., Class B		20,300		1,105

				28,598


Home Builders - 0.2%
Lennar Corp., Class B		57,600		1,224
Monaco Coach Corp.		14,000		196
Skyline Corp.		26,613		801

				2,221


Home Furnishings - 0.1%
Ethan Allen Interiors, Inc.		40,300		1,318
Stanley Furniture Co., Inc.		3,143		51

				1,369


Household Products/Wares - 0.6%
American Greetings Corp., Class A		68,407		1,806
Blyth, Inc.		76,588		1,566
Central Garden and Pet Co. *		8,400		75


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.7% – CONTINUED
Household Products/Wares - 0.6% – (continued)
Ennis, Inc.		105,399		$2,323

				5,770


Insurance - 7.5%
Alfa Corp.		164,483		2,990
Alleghany Corp. *		5,208		2,114
American Equity Investment Life Holding Co.		28,400		302
American Physicians Capital, Inc.		21,643		843
Argo Group International Holdings Ltd. *		32,245		1,403
CNA Surety Corp. *		94,500		1,666
Commerce Group, Inc.		171,203		5,045
Donegal Group, Inc., Class A		48,565		786
EMC Insurance Group, Inc.		28,585		743
FBL Financial Group, Inc., Class A		52,640		2,079
FPIC Insurance Group, Inc. *		30,464		1,311
Hanover Insurance Group (The), Inc.		36,294		1,604
Harleysville Group, Inc.		82,162		2,628
Horace Mann Educators Corp.		146,225		2,882
Independence Holding Co.		22,504		459
Infinity Property & Casualty Corp.		43,176		1,737
LandAmerica Financial Group, Inc.		27,423		1,069
Meadowbrook Insurance Group, Inc. *		50,203		452
Midland (The) Co.		61,050		3,355
Nationwide Financial Services, Inc., Class A		40,170		2,162
Navigators Group, Inc. *		42,542		2,308
NYMAGIC, Inc.		3,909		109
Presidential Life Corp.		2,300		39
ProAssurance Corp. *		170,270		9,172
RLI Corp.		128,700		7,300
Safety Insurance Group, Inc.		50,243		1,806
SeaBright Insurance Holdings, Inc. *		30,330		518
Selective Insurance Group, Inc.		352,258		7,496
State Auto Financial Corp.		97,470		2,851
Stewart Information Services Corp.		59,505		2,039
United America Indemnity Ltd., Class A *		45,559		980
United Fire & Casualty Co.		59,596		2,330
Unitrin, Inc.		39,000		1,934
Universal American Financial Corp. *		35,587		812
Zenith National Insurance Corp.		69,200		3,106

				78,430


Internet - 1.6%
AsiaInfo Holdings, Inc. *		7,200		65


		See Notes to the Financial Statements.

EQUITY FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.7% – CONTINUED
Internet - 1.6% – (continued)
Authorize.Net Holdings, Inc. *		13,100		$231
Avocent Corp. *		65,709		1,913
Checkfree Corp. *		45,186		2,103
Harris Interactive, Inc. *		344,438		1,485
iPass, Inc. *		20,466		86
RealNetworks, Inc. *		186,896		1,267
TIBCO Software, Inc. *		1,097,593		8,111
United Online, Inc.		41,100		617
Vignette Corp. *		54,150		1,087

				16,965


Investment Companies - 0.2%
MCG Capital Corp.		174,777		2,515
Iron/Steel - 0.2%

Schnitzer Steel Industries, Inc., Class A		20,454		1,499


Leisure Time - 0.3%
Brunswick Corp.		89,759		2,052
Callaway Golf Co.		77,600		1,242
Escalade, Inc.		2,400		24
Nautilus, Inc.		18,100		144

				3,462


Lodging - 0.2%
Interstate Hotels & Resorts, Inc. *		5,400		25
Marcus Corp.		111,888		2,148

				2,173


Machinery - Diversified - 1.5%
Albany International Corp., Class A		46,764		1,753
Briggs & Stratton Corp.		71,860		1,809
Cascade Corp.		33,401		2,177
Cognex Corp.		29,317		520
Gehl Co. *		9,619		215
Gerber Scientific, Inc. *		19,700		214
NACCO Industries, Inc., Class A		21,983		2,275
Sauer-Danfoss, Inc.		211,685		5,648
Tennant Co.		21,600		1,052

				15,663


Media - 0.8%
American Satellite Network *		255		-
Belo Corp., Class A		180,516		3,134
Entercom Communications Corp., Class A		20,703		400
Hearst-Argyle Television, Inc.		52,986		1,375
Journal Communications, Inc., Class A		156,602		1,485
Playboy Enterprises, Inc., Class B *		8,700		93


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.7% – CONTINUED
Media - 0.8% – (continued)
Scholastic Corp. *		49,416		$1,723

				8,210


Metal Fabrication/Hardware - 2.3%
CIRCOR International, Inc.		69,745		3,167
Lawson Products, Inc.		21,545		750
Mueller Industries, Inc.		19,811		716
NN, Inc.		8,800		86
Quanex Corp.		169,878		7,981
Worthington Industries, Inc.		469,807		11,069

				23,769


Mining - 0.1%
Coeur D’alene Mines Corp. *		389,741		1,477


Miscellaneous Manufacturing - 2.4%
Ameron International Corp.		45,605		4,823
Aptargroup, Inc.		124,800		4,726
Barnes Group, Inc.		18,300		584
ESCO Technologies, Inc. *		23,518		782
Federal Signal Corp.		74,993		1,152
Griffon Corp. *		86,361		1,304
Lancaster Colony Corp.		14,800		565
Myers Industries, Inc.		92,099		1,825
Park-Ohio Holdings Corp. *		1,649		43
Smith (A.O.) Corp.		176,223		7,733
Standex International Corp.		51,873		1,073

				24,610


Oil & Gas - 3.5%
Bill Barrett Corp. *		77,501		3,054
Brigham Exploration Co. *		62,900		373
Callon Petroleum Co. *		16,587		231
Comstock Resources, Inc. *		47,834		1,475
Edge Petroleum Corp. *		46,500		597
Encore Acquisition Co. *		168,637		5,338
Forest Oil Corp. *		187,595		8,074
Grey Wolf, Inc. *		260,328		1,705
Petrohawk Energy Corp. *		280,589		4,607
Pogo Producing Co.		27,302		1,450
Sunsco Logistics Partners L.P.		20,600		1,054
Swift Energy Co. *		131,994		5,401
Whiting Petroleum Corp. *		69,514		3,090

				36,449


Oil & Gas Services - 2.3%
Allis-Chalmers Energy, Inc. *		50,539		957

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 57 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		SMALL CAP VALUE FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.7% – CONTINUED
Oil & Gas Services - 2.3% – (continued)
Exterran Holdings, Inc. *		46,800		$3,760
Gulf Island Fabrication, Inc.		8,100		311
Horizon Offshore, Inc. *		29,600		489
Hornbeck Offshore Services, Inc. *		75,242		2,761
Natural Gas Services Group, Inc. *		4,700		81
Oil States International, Inc. *		265,342		12,816
SEACOR Holdings, Inc. *		19,498		1,854
Trico Marine Services, Inc. *		23,441		699

				23,728


Packaging & Containers - 0.5%
Greif, Inc., Class A		84,234		5,111


Pharmaceuticals - 1.2%
Alpharma, Inc., Class A		138,700		2,963
Bradley Pharmaceuticals, Inc. *		33,300		606
Hi-Tech Pharmacal Co., Inc. *		2,800		33
Neogen Corp. *		4,800		114
Nutraceutical International Corp. *		30,966		471
Omega Protein Corp. *		3,455		31
Perrigo Co.		208,612		4,454
PharMerica Corp. *		39,018		582
Salix Pharmaceuticals Ltd. *		47,000		584
Sciele Pharma, Inc. *		45,800		1,192
Theragenics Corp. *		3,200		14
Viropharma, Inc. *		196,896		1,752

				12,796


Pipelines - 0.0%
Enbridge Energy Management		98,760		-
Enbridge Energy Management LLC *		2,735		136
Kinder Morgan Management LLC
(Fractional Shares)		15,394		-
TC Pipelines LP		6,398		228

				364


Real Estate - 0.2%
Avatar Holdings, Inc. *		19,118		955
Stratus Properties, Inc. *		8,582		303
W.P. Carey & Co. LLC		28,900		910

				2,168


Real Estate Investment Trusts - 4.3%
Acadia Realty Trust		24,523		665
Alesco Financial, Inc.		50,200		247
American Land Lease, Inc.		26,088		586
Anthracite Capital, Inc.		254,259		2,314


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.7% – CONTINUED
Real Estate Investment Trusts - 4.3% – (continued)
BioMed Realty Trust, Inc.		77,600		$1,870
BRT Realty Trust		14,750		256
Capital Trust, Inc. of New York, Class A		50,951		1,809
Cedar Shopping Centers, Inc.		50,900		693
EastGroup Properties, Inc.		18,265		827
Entertainment Properties Trust		31,166		1,583
Equity Inns, Inc.		64,600		1,459
First Potomac Realty Trust		28,300		617
Gramercy Capital Corp. of New York		22,000		554
Home Properties, Inc.		15,600		814
Inland Real Estate Corp.		76,100		1,179
Investors Real Estate Trust		47,936		518
LTC Properties, Inc.		103,400		2,447
National Health Investors, Inc.		94,276		2,914
National Retail Properties, Inc.		151,927		3,704
NorthStar Realty Finance Corp.		89,728		891
One Liberty Properties, Inc.		3,600		70
Parkway Properties, Inc. of Maryland		31,042		1,370
Pennsylvania Real Estate Investment Trust		89,900		3,501
Ramco-Gershenson Properties		19,981		624
Realty Income Corp.		119,300		3,334
Redwood Trust, Inc.		81,571		2,710
Senior Housing Properties Trust		167,183		3,688
Sovran Self Storage, Inc.		20,961		961
Universal Health Realty Income Trust		46,100		1,638
Winthrop Realty Trust		99,900		672

				44,515


Retail - 6.1%
AC Moore Arts & Crafts, Inc. *		10,660		168
Asbury Automotive Group, Inc.		73,320		1,452
Bob Evans Farms, Inc.		79,916		2,412
Bon-Ton Stores (The), Inc.		7,070		161
Brown Shoe Co., Inc.		106,583		2,068
Buckle (The), Inc.		53,534		2,031
Cabela’s, Inc. *		82,925		1,961
Cash America International, Inc.		79,583		2,992
CBRL Group, Inc.		45,700		1,865
Charlotte Russe Holding, Inc. *		73,339		1,074
Charming Shoppes, Inc. *		601,689		5,054
Fred’s, Inc.		100,455		1,058
Frisch’s Restaurants, Inc.		700		20
Group 1 Automotive, Inc.		9,283		312


		See Notes to the Financial Statements.

EQUITY FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.7% – CONTINUED
Retail - 6.1% – (continued)
Guitar Center, Inc. *		9,800		$581
Insight Enterprises, Inc. *		135,083		3,487
Kenneth Cole Productions, Inc., Class A		31,708		614
Landry’s Restaurants, Inc.		100,123		2,649
Longs Drug Stores Corp.		28,300		1,406
Luby’s, Inc. *		101,492		1,118
MarineMax, Inc. *		73,671		1,073
Men’s Wearhouse, Inc.		26,301		1,329
Movado Group, Inc.		42,599		1,360
O’Charleys, Inc.		23,578		357
Pantry (The), Inc. *		43,792		1,122
PC Connection, Inc. *		39,689		496
Penske Auto Group, Inc.		278,202		5,631
Regis Corp.		158,793		5,067
Rush Enterprises, Inc., Class A *		19,362		491
Shoe Carnival, Inc. *		11,098		175
Sonic Automotive, Inc., Class A		64,648		1,548
Stage Stores, Inc.		222,734		4,060
Steak n Shake (The) Co. *		81,580		1,225
Stein Mart, Inc.		40,391		307
Systemax, Inc.		68,854		1,407
Talbots, Inc.		76,226		1,372
Zale Corp. *		186,436		4,314
Zones, Inc. *		1,400		15

				63,832


Savings & Loans - 2.4%
Anchor BanCorp Wisconsin, Inc.		27,200		734
Citizens First Bancorp, Inc.		4,688		84
Dime Community Bancshares		68,256		1,022
Downey Financial Corp.		124,394		7,190
First Defiance Financial Corp.		21,625		584
First Place Financial Corp. of Ohio		32,392		573
FirstFed Financial Corp. *		129,640		6,424
Flagstar Bancorp, Inc.		14,200		138
Flushing Financial Corp.		67,764		1,139
HMN Financial, Inc.		112		3
Parkvale Financial Corp.		900		26
Partners Trust Financial Group, Inc.		11,945		145
PFF Bancorp, Inc.		49,239		755
Provident Financial Holdings, Inc.		5,843		130
Provident New York Bancorp		20,073		263
TierOne Corp.		37,221		985


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.7% – CONTINUED
Savings & Loans - 2.4% – (continued)
United Community Financial Corp. of Ohio		215,473		$1,556
Washington Federal, Inc.		128,016		3,362
Willow Grove Bancorp, Inc.		7,846		98

				25,211


Semiconductors - 2.6%
Actel Corp. *		35,900		385
ATMI, Inc. *		17,000		506
Axcelis Technologies, Inc. *		114,144		583
Brooks Automation, Inc. *		76,638		1,091
Cabot Microelectronics Corp. *		2,100		90
Cohu, Inc.		36,000		675
Cree, Inc. *		118,339		3,680
DSP Group, Inc. *		90,541		1,433
Emulex Corp. *		119,300		2,287
Entegris, Inc. *		183,015		1,589
Fairchild Semiconductor International, Inc. *		67,012		1,252
International Rectifier Corp. *		37,991		1,253
Lattice Semiconductor Corp. *		103,800		466
Mattson Technology, Inc. *		147,940		1,280
MKS Instruments, Inc. *		286,557		5,450
Omnivision Technologies, Inc. *		24,000		546
Pericom Semiconductor Corp. *		1,600		19
Photronics, Inc. *		23,600		269
Rudolph Technologies, Inc. *		8,786		122
Semitool, Inc. *		21,873		212
Silicon Image, Inc. *		79,400		409
Standard Microsystems Corp. *		54,566		2,096
TriQuint Semiconductor, Inc. *		156,448		768
Veeco Instruments, Inc. *		38,037		737
White Electronic Designs Corp. *		881		5

				27,203


Software - 1.5%
Captaris, Inc. *		1,116		6
Digi International, Inc. *		42,233		601
EPIQ Systems, Inc. *		106,066		1,996
JDA Software Group, Inc. *		117,662		2,431
Lawson Software, Inc. *		680,730		6,814
Mantech International Corp., Class A *		14,800		533
MSC.Software Corp. *		15,300		208
Packeteer, Inc. *		43,854		333
Quest Software, Inc. *		86,800		1,490
Schawk, Inc.		43,883		990

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 59 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		SMALL CAP VALUE FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS – 94.7% – CONTINUED
Software - 1.5% – (continued)
SYNNEX Corp. *		16,900		$348

				15,750

Telecommunications - 2.3%
Anaren, Inc. *		27,296		385
Arris Group, Inc. *		60,223		744
Atlantic Tele-Network, Inc.		11,936		434
Avici Systems, Inc.		1,646		18
Black Box Corp.		26,000		1,112
EMS Technologies, Inc. *		27,485		674
Foundry Networks, Inc. *		172,200		3,060
Golden Telecom, Inc.		120,789		9,722
Hypercom Corp. *		60,625		274
Iowa Telecommunications Services, Inc.		16,344		324
Oplink Communications, Inc. *		25,615		350
Premiere Global Services, Inc. *		174,822		2,211
Radyne Corp. *		3,100		33
RF Micro Devices, Inc. *		206,913		1,392
SureWest Communications		17,291		432
Symmetricom, Inc. *		27,400		129
Syniverse Holdings, Inc. *		95,554		1,519
Tekelec *		50,795		615
USA Mobility, Inc. *		36,865		622

				24,050

Textiles - 0.7%
G&K Services, Inc., Class A		91,034		3,660
Unifirst Corp. of Massachusetts		82,286		3,083

				6,743

Toys, Games & Hobbies - 0.5%
Jakks Pacific, Inc. *		84,721		2,263
RC2 Corp. *		109,747		3,039

				5,302

Transportation - 1.6%
Alexander & Baldwin, Inc.		32,300		1,619
Arkansas Best Corp.		86,732		2,833
Frozen Food Express Industries, Inc.		2,900		20
Genesee & Wyoming, Inc., Class A *		90,274		2,603
Gulfmark Offshore, Inc. *		51,943		2,528
Marten Transport Ltd. *		50,948		785
P.A.M. Transportation Services, Inc. *		4,900		88
Saia, Inc. *		59,932		991
U.S. Xpress Enterprises, Inc., Class A *		9,842		194
USA Truck, Inc. *		4,400		67

See Notes to the Financial Statements.


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.7% – CONTINUED
Transportation - 1.6% - (continued)
Werner Enterprises, Inc.		290,157		$4,976

				16,704

Trucking & Leasing - 0.1%
Greenbrier Cos., Inc.		19,607		524

Total Common Stocks

(Cost $919,209)				986,270

OTHER - 0.0%
Escrow DLB Oil & Gas		2,100		-

Total Other

(Cost $-)				-


	NUMBER OF		VALUE
	WARRANTS		(000S)
WARRANTS - 0.0%
American Banknote Corp., Exp. 10/15/07,
Strike $10.00 *		9		-
American Banknote Corp., Exp. 10/15/07,
Strike $12.50 *		9		-

Total Warrants

(Cost $-)				-


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 4.1%
ABN-Amro Bank, Amsterdam,
Eurodollar Time Deposit,
5.50%, 10/1/07		$39,759		39,759
U.S. Treasury Bill,⁽¹⁾
4.73%, 1/17/08		2,660		2,623

Total Short-Term Investments

(Cost $42,382)				42,382



Total Investments - 98.8%

(Cost $961,591)				1,028,652
Other Assets less Liabilities - 1.2%				12,529

NET ASSETS - 100.0%				$1,041,181

(1)		Security pledged as collateral to cover margin requirements for open futures contracts.

*		Non-Income Producing Security

Percentages shown are based on Net Assets.

EQUITY FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)

At September 30, 2007, the Small Cap Value Fund had open futures contracts as follows:

NOTIONAL

UNREALIZED

NUMBER OF

AMOUNT

CONTRACT

GAINS

TYPE

CONTRACTS

(000S)

POSITION

EXP.

(000S)

S&P 500

272

$20,918

Long

12/07

$653

Russell Mini

2000

261

$21,225

Long

12/07

706

Total

$1,359

At September 30, 2007, the industry sectors for the Small Cap Value Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		12.7	%
Consumer Staples		3.6
Energy		6.4
Financials		29.9
Health Care		6.8
Industrials		13.9
Information Technology		13.6
Materials		7.4
Telecommunication Services		1.6
Utilities		4.1

Total		100.0	%

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 61 EQUITY FUNDS


	EQUITY FUNDS

		SCHEDULE OF INVESTMENTS


		TECHNOLOGY FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 95.9%
Aerospace/Defense - 3.9%
Lockheed Martin Corp.		30,920		$3,355
Raytheon Co.		40,427		2,580

				5,935

Biotechnology - 3.8%
Amgen, Inc. *		23,900		1,352
Biogen Idec, Inc. *		46,792		3,104
Myriad Genetics, Inc. *		25,898		1,350

				5,806

Commercial Services - 3.1%
Accenture Ltd., Class A		72,607		2,922
Bankrate, Inc. *		38,804		1,790

				4,712

Computers - 22.6%
Apple, Inc. *		34,880		5,355
Cadence Design Systems, Inc. *		127,397		2,827
Dell, Inc. *		100,859		2,784
EMC Corp. of Massachusetts *		127,362		2,649
Factset Research Systems, Inc.		31,913		2,188
Hewlett-Packard Co.		120,695		6,009
IBM Corp.		29,016		3,418
Micros Systems, Inc. *		57,958		3,771
Network Appliance, Inc. *		84,018		2,261
Research In Motion Ltd. *		30,560		3,012

				34,274

Electronics - 1.4%
Waters Corp. *		31,833		2,130

Healthcare – Products - 1.2%
Alcon, Inc.		12,319		1,773

Internet - 7.9%
Digital River, Inc. *		58,632		2,624
eBay, Inc. *		99,890		3,898
McAfee, Inc. *		67,800		2,364
VeriSign, Inc. *		90,223		3,044

				11,930

Pharmaceuticals - 3.7%
Cypress Bioscience, Inc. *		172,857		2,366
Isis Pharmaceuticals, Inc. *		110,744		1,658
Pharmion Corp. *		34,203		1,578

				5,602

Semiconductors - 18.9%
ARM Holdings PLC ADR		352,448		3,317


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 95.9% – CONTINUED
Semiconductors - 18.9% – (continued)
ASML Holding N.V.		80,013		$2,629
Emulex Corp. *		140,917		2,702
Intersil Corp., Class A		48,843		1,633
Lam Research Corp. *		27,400		1,459
National Semiconductor Corp.		75,376		2,044
Netlogic Microsystems, Inc. *		57,645		2,082
Nvidia Corp. *		71,362		2,586
ON Semiconductor Corp. *		203,512		2,556
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		177,407		1,795
Tessera Technologies, Inc. *		48,266		1,810
Texas Instruments, Inc.		58,247		2,131
Verigy Ltd. *		73,203		1,809

				28,553

Software - 17.1%
Activision, Inc. *		114,321		2,468
Adobe Systems, Inc. *		59,794		2,611
Autodesk, Inc. *		63,584		3,177
Citrix Systems, Inc. *		57,745		2,328
Cognos, Inc. *		45,025		1,870
Double-Take Software, Inc. *		116,631		2,229
Microsoft Corp.		128,195		3,777
Nuance Communications, Inc. *		97,811		1,889
Oracle Corp. *		214,196		4,637
VMware, Inc. *		10,000		850

				25,836

Telecommunications - 12.3%
Arris Group, Inc. *		143,121		1,767
Cisco Systems, Inc. *		203,559		6,740
Nokia OYJ ADR		195,521		7,416
QUALCOMM, Inc.		64,338		2,720

				18,643

Total Common Stocks

(Cost $114,851)				145,194

See Notes to the Financial Statements.

EQUITY FUNDS 62 NORTHERN FUNDS SEMIANNUAL REPORT




	SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 3.1%
ABN-Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$4,684		$4,684

Total Short-Term Investment

(Cost $4,684)				4,684




Total Investments - 99.0%

(Cost $119,535)				149,878
Other Assets less Liabilities - 1.0%				1,590

NET ASSETS - 100.0%				$151,468

Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Technology Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Aerospace & Defense		4.1	%
Biotechology		7.1
Communications Equipment		14.8
Computers & Peripherals		17.2
Health Care Equipment & Supplies		1.2
Internet Software & Services		7.8
IT Services		2.0
Life Sciences Tools & Services		1.5
Pharmaceuticals		1.6
Semiconductors & Semiconductor Equipment		17.6
Software		25.1

Total		100.0	%

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 63 EQUITY FUNDS

Northern Trust Investments, N.A. (“NTI”) and Northern Trust Global Investments Limited (“NTGIL”), each a direct subsidiary of The Northern Trust Company (“Northern Trust”), serve jointly as the investment advisers for the International Growth Equity Fund. NTI serves as the investment adviser for each of the other Funds. Northern Trust serves as the custodian, fund accountant and transfer agent for the Trust. NTI and PFPC Inc. (“PFPC”) serve as the Trust’s co-administrators, and Northern Fund Distributors, LLC is the Trust’s distributor.

The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with U.S. generally accepted accounting principles or “GAAP.” The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results may differ from those estimates.

A) VALUATION OF SECURITIES – Securities are valued at their fair value. Securities traded on U.S. securities exchanges or in the Nasdaq Stock Market, Inc. are principally valued at the regular trading session closing price (generally, 3:00 p.m. Central time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the Nasdaq Stock Market, Inc. are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair market value of such securities. Such prices may be determined taking into account securities prices, yields, maturities, call features, ratings, institutional size trading in similar groups of securities and developments related to specific securities.

The values of securities of foreign issuers are generally based upon market quotations which, depending upon local convention or regulation, may be the last sale price, the last bid or asked price or the mean between the last bid and asked price as of, in each case, the close of the appropriate exchange or other designated time. Foreign fixed income securities, however, may, like domestic fixed income securities, be valued based on prices provided by independent pricing services when such prices are believed to reflect the fair market value of such securities.

Shares of open-end investment companies are valued at net asset value (“NAV”). Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided prices, as are swaps, caps, collars and floors. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments are valued at amortized cost, which the investment advisers have determined, pursuant to Board of Trustees authorization, approximates fair value.

Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by the investment advisers under the supervision of the Board of Trustees. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of market values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance. This may occur particularly with respect to certain foreign securities held by a Fund, in which case the Trust may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of those securities as of the time the Fund’s NAV is calculated. The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by

other unaffiliated investment companies and investors to price the same investments.

B) FUTURES CONTRACTS – Each Fund may invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity. The Fund bears the market risk arising from changes in the value of these financial instruments. At the time a Fund enters into a futures contract it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Subsequently, as the market price of the futures contract fluctuates, gains or losses are recorded and payments are made, on a daily basis, between the Fund and the broker. The Statements of Operations reflect gains or losses, if any, as realized for closed futures contracts and as unrealized for open futures contracts.

At September 30, 2007, the Enhanced Large Cap and Small Cap Value Funds had entered exchange-traded long futures contracts. The aggregate market value of securities pledged to cover margin requirements for open positions was approximately $203,000 and $2,623,000, respectively. The Emerging Markets Equity Fund had entered into exchange-traded long futures contracts at September 30, 2007.

C) FOREIGN CURRENCY TRANSLATIONS – Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the New York exchange normally at approximately 3:00 p.m. Central time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations with net realized and unrealized gains (losses) on investments. The realized gains or losses, if any, on translations of other assets and liabilities denominated in foreign currencies are included in foreign currency transactions on the Statements of Operations.

D) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS – Certain Funds are authorized to enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge against either specific transactions or portfolio positions, or as a cross-hedge transaction or for speculative purposes. The objective of a Fund’s foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of a Fund’s foreign currency denominated securities will decline in value due to changes in foreign currency exchange rates. All forward foreign currency exchange contracts are “marked-to-market” daily at the applicable exchange rates and any resulting unrealized gains or losses are recorded in the financial statements. The Funds record realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction or extinguished by delivery of the currency.

Risks may arise upon entering into these contracts from the potential inability of counterparties to meet the terms of their contracts and from unanticipated movements in the value of a foreign currency relative to the U.S. dollar. The contractual amounts of forward foreign currency exchange contracts do not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered. The Statements of Operations reflect realized gains or losses, if any, in foreign currency transactions and unrealized gains or losses in forward foreign currency exchange contracts.

E) INVESTMENT TRANSACTIONS AND INCOME – Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities or, for interest-only or principal-only securities, the current effective yield. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available.

F) EXPENSES – Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among the Funds in proportion to each Fund’s relative net assets.

G) REDEMPTION FEES – The Emerging Markets Equity and International Growth Equity Funds charge a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Funds use a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Funds and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Funds. The

redemption fee may be collected by deduction from the redemption proceeds or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Funds’ prospectus.

Redemption fees for the six months ended September 30, 2007 were approximately $3,000 for the Emerging Markets Equity Fund. There were no redemption fees for the six months ended September 30, 2007 for the International Growth Equity Fund. These amounts are included in “Proceeds from Shares Sold” in Note 6 – Capital Share Transactions. The impact from redemption fees paid to the Fund was less than $0.001 per share.

H) DISTRIBUTIONS TO SHAREHOLDERS – Distributions of dividends from net investment income, if any, are declared and paid as follows:

Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date. The timing and character of distributions determined in accordance with federal income tax regulations may differ from financial statement amounts determined in accordance with GAAP due to differences in the treatment and recognition of investment income and realized gains and losses. These differences are primarily related to foreign currency transactions, the deferral of certain realized losses and capital loss carryforwards. Inherent differences in the recognition of income and capital gains for federal income tax purposes, which are permanent, may result in periodic reclassifications in the Funds’ capital accounts.

I) FEDERAL INCOME TAXES – No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

For the period subsequent to October 31, 2006, through the fiscal year ended March 31, 2007, the Emerging Markets Equity Fund incurred net capital losses and/or net currency losses of approximately $58,000 for which the Fund intends to treat as having been incurred in the next fiscal year.

At March 31, 2007, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:


*	Amounts include acquired capital loss carryforwards, which may be limited under current tax laws, expiring in varying amounts through March 31, 2011.

The Funds in the above table may offset future capital gains with these capital loss carryforwards.

At March 31, 2007, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:


*	Ordinary income includes taxable discount income and short-term capital gains, if any.

The taxable character of distributions paid during the fiscal year ended March 31, 2007, was as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

The taxable character of distributions paid during the fiscal year ended March 31, 2006, was as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

In July 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes”. This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. FIN 48 is effective as of the beginning of the first fiscal year beginning after December 15, 2006, with early application permitted if no interim financial statements have been issued. At adoption, companies must adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained as of the adoption date. At September 30, 2007, management has evaluated the application of FIN 48 to the Funds, and has determined that there is no material impact resulting from the adoption of this Interpretation on the Funds’ financial statements.

The Trust has entered into a $150,000,000 revolving bank credit agreement administered by Deutsche Bank AG for liquidity and other purposes. Borrowings by the Trust bear an interest rate of (i) the higher of the Prime Lending Rate and 0.50 percent above the federal funds rate, (ii) 0.45 percent above IBOR (Interbank Offered Rate) or (iii) 0.45 percent above LIBOR (London Interbank Offered Rate), at the option of the Trust and in accordance with the terms of the agreement.

At September 30, 2007, the Funds did not have any outstanding loans. When utilized, the average dollar amounts of the borrowings and the weighted average interest rates on these borrowings were:

As compensation for advisory services and assumption of related expenses, the investment advisers are entitled to receive a fee, calculated daily and payable monthly, at annual rates set forth in the following table (expressed as a percentage of each Fund’s average daily net assets). For the six months ended September 30, 2007, the investment advisers agreed to reimburse the Funds for certain expenses as shown on the accompanying Statements of Operations to adhere to the expense limitations set forth below. The annual advisory fees and expense limitations for the Funds during this period were as follows:

The reimbursements described above are voluntary and may be modified or terminated at any time.

As compensation for services rendered as transfer agent, including the assumption by Northern Trust of the expenses related thereto, Northern Trust receives a fee, computed daily and payable monthly, at an annual rate of 0.10 percent of the average daily net assets outstanding for the Funds.

The Funds have a co-administration agreement with NTI and PFPC for certain administrative services. Pursuant to their co-administration agreement with the Funds, the co-administrators are entitled to receive a fee, computed daily and payable monthly, at the annual rate of 0.15 percent of each Fund’s average daily net assets. For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected in the Funds’ Statements of Operations.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds, although the Trust’s secretary also serves as legal counsel to the Trust and the independent Trustees and receives legal fees from the Funds for those services. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are included in “Trustees fees” on the Statements of Assets and Liabilities. The Trustee’s account shall be deemed to be invested in a money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the Investment Company Act of 1940, as amended. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

For the six months ended September 30, 2007, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

At September 30, 2007, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation (depreciation) on investments (including the effects of foreign currency translation) and the cost basis of securities were as follows:

Transactions in capital shares for the six months ended September 30, 2007, were as follows:

Transactions in capital shares for the period ended March 31, 2007, were as follows:

In September 2006, Statement of Financial Accounting Standards No. 157 Fair Value Measurements (“SFAS 157”) was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements.

Management is currently evaluating the impact the adoptions of SFAS 157 will have on the Funds’ financial statements and financial disclosures, if any.

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, including redemption fees on certain exchanges and redemptions in the Emerging Markets Equity and International Growth Equity Funds; and (2) ongoing costs, including advisory fees; distribution (12b-1) fees, if any; and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2007, through September 30, 2007.

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/07 - 9/30/07” to estimate the expenses you paid on your account during this period.

The second line in the tables below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5 percent per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5 percent hypothetical example with the 5 percent hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 65), if any, in the Emerging Markets Equity and International Growth Equity Funds. If these fees were included, your costs would have been higher. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.


	Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.

equity index funds



STATEMENTS OF ASSETS AND LIABILITIES		SEPTEMBER 30, 2007 (UNAUDITED)


Amounts in thousands, except per share data	GLOBAL REAL			INTERNATIONAL
	ESTATE INDEX			EQUITY		MID CAP		SMALL CAP		STOCK
	FUND			INDEX FUND		INDEX FUND		INDEX FUND		INDEX FUND




ASSETS:

Investments, at cost	$	1,191,769		$	1,354,583	$	324,834	$	299,167	$	593,601

Investments, at value	$	1,187,086		$	1,792,269	$	371,717	$	375,969	$	829,313

Cash		-			600		9		4		-

Foreign currencies, at value (cost $2,802 and $17,256, respectively)		2,830			18,189		-		-		-

Dividend income receivable		3,201			4,252		204		350		898

Interest income receivable		1			30		2		5		13

Receivable for foreign tax reclaimable		75			1,277		-		-		-

Receivable for securities sold		-			4,661		2,445		1,054		542

Receivable for variation margin on futures contracts		169			312		1		8		-

Receivable for fund shares sold		3,062			1,715		300		209		844

Receivable from investment adviser		15			50		12		9		21

Unrealized gain on forward foreign currency exchange contracts		-			1,165		-		-		-

Prepaid and other assets		167			98		9		4		43

Total Assets		1,196,606			1,824,618		374,699		377,612		831,674



LIABILITIES:

Cash overdraft		-			-		-		-		30

Unrealized loss on forward foreign currency exchange contracts		1			31		-		-		-

Payable for securities purchased		1,526			242		3,208		1,665		402

Payable for variation margin on futures contracts		-			129		26		101		129

Payable for fund shares redeemed		814			836		67		212		829

Payable to affiliates:

Investment advisory fees		68			74		12		12		14

Co-administration fees		29			44		9		9		20

Custody and accounting fees		-			-		-		34		-

Transfer agent fees		20			30		1		6		14

Trustee fees		1			3		1		2		3

Accrued other liabilities		34			115		37		48		61

Total Liabilities		2,493			1,504		3,361		2,089		1,502


Net Assets	$	1,194,113		$	1,823,114	$	371,338	$	375,523	$	830,172



ANALYSIS OF NET ASSETS:

Capital stock	$	1,190,406		$	1,336,865	$	308,226	$	273,360	$	617,544

Undistributed net investment income		6,988			30,004		2,984		3,906		303

Accumulated undistributed net realized gain (loss)		1,349			13,184		13,103		21,081		(23,813	)

Net unrealized appreciation (depreciation)		(4,630	)		443,061		47,025		77,176		236,138

Net Assets	$	1,194,113		$	1,823,114	$	371,338	$	375,523	$	830,172



Shares Outstanding ($.0001 par value, unlimited authorization)		96,902			120,436		28,568		34,029		44,064

Net Asset Value, Redemption and Offering Price Per Share		$12.32			$15.14		$13.00		$11.04		$18.84

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT

equity index funds



STATEMENTS OF OPERATIONS		SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)


	GLOBAL REAL			INTERNATIONAL
Amounts in thousands	ESTATE INDEX			EQUITY			MID CAP			SMALL CAP			STOCK
Amounts in thousands	FUND			INDEX FUND			INDEX FUND			INDEX FUND			INDEX FUND




INVESTMENT INCOME:

Dividend income		$17,916	⁽¹⁾		$26,329	⁽²⁾		$2,003			$2,947			$6,695

Interest income		52			1,235			252			252			577

Total Investment Income		17,968			27,564			2,255			3,199			7,272



EXPENSES:

Investment advisory fees		1,740			2,071			351			380			369

Co-administration fees		746			1,243			263			285			554

Custody and accounting fees		359			745			56			102			110

Transfer agent fees		497			828			176			190			369

Registration fees		14			12			10			10			13

Printing fees		24			48			12			12			24

Professional fees		13			27			7			7			13

Trustee fees and expenses		6			12			3			3			6

Other		6			15			4			5			8



Total Expenses		3,405			5,001			882			994			1,466

Less expenses reimbursed by investment adviser		(171	)		(1,273	)		(353	)		(324	)		(542	)

Less custodian credits		(3	)		-			(3	)		(2	)		(1	)

Net Expenses		3,231			3,728			526			668			923


Net Investment Income		14,737			23,836			1,729			2,531			6,349



NET REALIZED AND UNREALIZED GAINS (LOSSES):

Net realized gains (losses) on:

Investments		(298	)		9,702			7,252			15,415			1,000

Futures contracts		-			203			621			(963	)		1,585

Foreign currency transactions		173			1,123			-			-			-

Net change in unrealized appreciation (depreciation) on:

Investments		(36,204	)		99,924			5,301			(13,587	)		47,305

Futures contracts		-			1,976			32			244			177

Forward foreign currency exchange contracts		(8	)		961			-			-			-

Translation of other assets and liabilities denominated in foreign currencies		(30	)		711			-			-			-

Net Gains (Losses) on Investments and Foreign Currency		(36,367	)		114,600			13,206			1,109			50,067



Net Increase (Decrease) in Net Assets Resulting from Operations		$(21,630	)		$138,436			$14,935			$3,640			$56,416

(1)		Net of $1,575 in non-reclaimable foreign withholding taxes.

(2)		Net of $3,482 in non-reclaimable foreign withholding taxes.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 EQUITY INDEX FUNDS



equity index funds
STATEMENTS OF CHANGES IN NET ASSETS


					INTERNATIONAL
	GLOBAL REAL				EQUITY				MID CAP					SMALL CAP					STOCK
	ESTATE INDEX FUND				INDEX FUND				INDEX FUND					INDEX FUND					INDEX FUND

	SIX MONTHS				SIX MONTHS				SIX MONTHS					SIX MONTHS					SIX MONTHS
	ENDED		PERIOD		ENDED		YEAR		ENDED		YEAR			ENDED		YEAR			ENDED		YEAR
	SEPT. 30,		ENDED		SEPT. 30,		ENDED		SEPT. 30,		ENDED			SEPT. 30,		ENDED			SEPT. 30,		ENDED
Amounts in thousands	2007		MARCH 31,		2007		MARCH 31,		2007		MARCH 31,			2007		MARCH 31,			2007		MARCH 31,
Amounts in thousands	(UNAUDITED)		2007 ⁽¹⁾		(UNAUDITED)		2007		(UNAUDITED)		2007			(UNAUDITED)		2007			(UNAUDITED)		2007




OPERATIONS:

Net investment income		$14,737		$3,697		$23,836		$28,836		$1,729		$4,244			$2,531		$2,857			$6,349		$9,611

Net realized gains (losses)		(125)		980		11,028		18,080		7,873		10,364			14,452		56,640			2,585		(638)

Net change in unrealized appreciation (depreciation)		(36,242)		31,612		103,572		181,921		5,333		3,998			(13,343)		(48,569)			47,482		50,870

Net Increase (Decrease) in Net Assets Resulting from Operations		(21,630)		36,289		138,436		228,837		14,935		18,606			3,640		10,928			56,416		59,843



CAPITAL SHARE TRANSACTIONS:

Net increase (decrease) in net assets resulting from capital share transactions		440,597		749,809		184,801		184,562		40,852		(31,778)			(796)		(90,445)			143,769		87,401

Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		440,597		749,809		184,801		184,562		40,852		(31,778)			(796)		(90,445)			143,769		87,401


DISTRIBUTIONS PAID:

From net investment income		(8,641)		(2,150)		-		(30,997)		-		(3,420)			-		(2,800)			(6,249)		(9,490)

From net realized gains		-		(161)		-		(18,153)		-		(8,156)			-		(49,635)			-		-

Total Distributions Paid		(8,641)		(2,311)		-		(49,150)		-		(11,576)			-		(52,435)			(6,249)		(9,490)


Total Increase (Decrease) in Net Assets		410,326		783,787		323,237		364,249		55,787		(24,748	)		2,844		(131,952	)		193,936		137,754

NET ASSETS:

Beginning of period		783,787		-		1,499,877		1,135,628		315,551		340,299			372,679		504,631			636,236		498,482

End of period	$1,194,113		$783,787		$1,823,114		$1,499,877		$371,338		$315,551			$375,523		$372,679			$830,172		$636,236


Accumulated Undistributed Net Investment Income		$6,988		$892		$30,004		$6,168		$2,984		$1,255			$3,906		$1,375			$303		$203

(1) Commenced investment operations on July 26, 2006.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT

equity index funds

FINANCIAL HIGHLIGHTS


		GLOBAL REAL ESTATE INDEX
		FUND
		SIX MONTHS
		ENDED			PERIOD
		SEPT. 30,			ENDED
		2007			MARCH 31,
		(UNAUDITED)			2007 ⁽⁴⁾
Selected per share data


Net Asset Value, Beginning of Period			$12.79			$10.00

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income			0.17			0.15

Net realized and unrealized gains (losses)			(0.54	)		2.77

Total from Investment Operations			(0.37	)		2.92



LESS DISTRIBUTIONS PAID:

From net investment income ⁽¹⁾			(0.10	)		(0.12	)

From net realized gains			-			(0.01	)

Total Distributions Paid			(0.10	)		(0.13	)



Net Asset Value, End of Period			$12.32			$12.79



Total Return ⁽²⁾			(2.89	)%		29.35	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period	$1,194,113				$783,787

Ratio to average net assets of: ⁽³⁾

Expenses, net of reimbursements and credits			0.65	%		0.65	%

Expenses, before reimbursements and credits			0.68	%		0.77	%

Net investment income, net of reimbursements and credits			2.96	%		2.27	%

Net investment income, before reimbursements and credits			2.93	%		2.15	%

Portfolio Turnover Rate			5.67	%		8.42	%

(1)		Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes.

(2)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(3)		Annualized for periods less than one year.

(4)		Commenced investment operations on July 26, 2006.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 EQUITY INDEX FUNDS

equity index funds



FINANCIAL HIGHLIGHTS (continued)


	INTERNATIONAL EQUITY INDEX FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			PERIOD
	SEPT. 30,			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,
	(UNAUDITED)			2007			2006			2005 ⁽⁴⁾
Selected per share data


Net Asset Value, Beginning of Period		$13.92			$12.04			$9.81			$10.00

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.25			0.35			0.15			0.02

Net realized and unrealized gains (losses)		0.97			2.04			2.18			(0.21	)

Total from Investment Operations		1.22			2.39			2.33			(0.19	)



LESS DISTRIBUTIONS PAID:

From net investment income ⁽¹⁾		-			(0.32	)		(0.07	)		-

From net realized gains		-			(0.19	)		(0.03	)		-

Total Distributions Paid		-			(0.51	)		(0.10	)		-



Net Asset Value, End of Period		$15.14			$13.92			$12.04			$9.81



Total Return ⁽²⁾		8.76	%		20.05	%		23.91	%		(1.90	)%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period	$1,823,114			$1,499,877			$1,135,628			$270,034

Ratio to average net assets of: ⁽³⁾

Expenses, net of reimbursements		0.45	%		0.45	%		0.45	%		0.45	%

Expenses, before reimbursements		0.60	%		0.63	%		0.62	%		0.62	%

Net investment income, net of reimbursements		2.88	%		2.31	%		1.96	%		7.58	%⁽⁵⁾

Net investment income, before reimbursements		2.73	%		2.13	%		1.79	%		7.41	%⁽⁵⁾

Portfolio Turnover Rate		2.24	%		7.49	%		3.40	%		0.00	%

(1)		Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes.

(2)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(3)		Annualized for periods less than one year.

(4)		Commenced investment operations on March 22, 2005.

(5)		As the Fund commenced investment operations on March 22, 2005, annualized investment income ratios may not be reflective of amounts that an investor should expect on an annual basis prospectively.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT


	MID CAP INDEX FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			PERIOD
	SEPT. 30,			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,
	(UNAUDITED)			2007			2006			2005⁽³⁾
Selected per share data


Net Asset Value, Beginning of Period		$12.41			$11.94			$9.94			$10.00

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.10			0.20			0.10			0.02

Net realized and unrealized gains (losses)		0.49			0.75			2.01			(0.08	)

Total from Investment Operations		0.59			0.95			2.11			(0.06	)



LESS DISTRIBUTIONS PAID:

From net investment income		-			(0.14	)		(0.07	)		-

From net realized gains		-			(0.34	)		(0.04	)		-

Total Distributions Paid		-			(0.48	)		(0.11	)		-



Net Asset Value, End of Period		$13.00			$12.41			$11.94			$9.94



Total Return ⁽¹⁾		4.75	%		8.15	%		21.23	%		(0.50	)%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$371,338			$315,551			$340,299			$102,086

Ratio to average net assets of: ⁽²⁾

Expenses, net of reimbursements and credits		0.30	%		0.30	%		0.30	%		0.30	%

Expenses, before reimbursements and credits		0.50	%		0.52	%		0.60	%		0.63	%

Net investment income, net of reimbursements and credits		0.98	%		1.38	%		1.05	%		9.14	%⁽⁴⁾

Net investment income, before reimbursements and credits		0.78	%		1.16	%		0.75	%		8.81	%⁽⁴⁾

Portfolio Turnover Rate		7.82	%		23.20	%		18.88	%		0.00	%

(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2)		Annualized for periods less than one year.

(3)		Commenced investment operations on March 22, 2005.

(4)		As the Fund commenced investment operations on March 22, 2005, annualized investment income ratios may not be reflective of amounts that an investor should expect on an annual basis prospectively.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 EQUITY INDEX FUNDS

equity index funds




FINANCIAL HIGHLIGHTS (continued)


	SMALL CAP INDEX FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003
Selected per share data


Net Asset Value, Beginning of Period		$10.93			$11.98			$9.71			$9.30			$5.75			$8.00

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.07			0.10			0.09			0.06			0.04			0.06

Net realized and unrealized gains (losses)		0.04			0.52			2.36			0.38			3.55			(2.25	)

Total from Investment Operations		0.11			0.62			2.45			0.44			3.59			(2.19	)



LESS DISTRIBUTIONS PAID:

From net investment income		-			(0.09	)		(0.07	)		(0.03	)		(0.04	)		(0.05	)

From net realized gains		-			(1.58	)		(0.11	)		-			-			(0.01	)

Total Distributions Paid		-			(1.67	)		(0.18	)		(0.03	)		(0.04	)		(0.06	)



Net Asset Value, End of Period		$11.04			$10.93			$11.98			$9.71			$9.30			$5.75



Total Return ⁽¹⁾		1.01	%		5.51	%		25.51	%		4.74	%		62.44	%		(27.49	)%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$375,523			$372,679			$504,631			$358,525			$345,538			$173,886

Ratio to average net assets of: ⁽²⁾

Expenses, net of waivers, reimbursements and credits		0.35	%		0.35	%		0.35	%		0.62	%		0.65	%		0.65	%

Expenses, before waivers, reimbursements and credits		0.52	%		0.57	%		0.51	%		0.89	%		1.02	%		1.10	%

Net investment income, net of waivers, reimbursements and credits		1.33	%		0.70	%		0.93	%		0.66	%		0.58	%		0.79	%

Net investment income, before waivers, reimbursements and credits		1.16	%		0.48	%		0.77	%		0.39	%		0.21	%		0.34	%

Portfolio Turnover Rate		13.44	%		21.77	%		22.33	%		31.27	%		26.94	%		51.12	%

(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT


	STOCK INDEX FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003
Selected per share data


Net Asset Value, Beginning of Period		$17.53			$15.98			$14.57			$13.93			$10.49			$14.20

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.15			0.29			0.25			0.22			0.15			0.14

Net realized and unrealized gains (losses)		1.31			1.54			1.41			0.64			3.44			(3.71	)

Total from Investment Operations		1.46			1.83			1.66			0.86			3.59			(3.57	)



LESS DISTRIBUTIONS PAID:

From net investment income		(0.15	)		(0.28	)		(0.25	)		(0.22	)		(0.15	)		(0.14	)

Total Distributions Paid		(0.15	)		(0.28	)		(0.25	)		(0.22	)		(0.15	)		(0.14	)



Net Asset Value, End of Period		$18.84			$17.53			$15.98			$14.57			$13.93			$10.49



Total Return ⁽¹⁾		8.35	%		11.57	%		11.46	%		6.20	%		34.33	%		(25.22	)%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$830,172			$636,236			$498,482			$391,752			$392,327			$305,859

Ratio to average net assets of: ⁽²⁾

Expenses, net of waivers, reimbursements and credits		0.25	%		0.25	%		0.25	%		0.52	%		0.55	%		0.55	%

Expenses, before waivers, reimbursements and credits		0.40	%		0.41	%		0.50	%		0.79	%		0.82	%		0.86	%

Net investment income, net of waivers, reimbursements and credits		1.72	%		1.76	%		1.66	%		1.56	%		1.18	%		1.19	%

Net investment income, before waivers, reimbursements and credits		1.57	%		1.60	%		1.41	%		1.29	%		0.91	%		0.88	%

Portfolio Turnover Rate		2.36	%		3.25	%		4.86	%		4.22	%		5.33	%		6.82	%

(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 EQUITY INDEX FUNDS

equity index funds

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND


	NUMBER		VALUE
	OF SHARES		(000S)

COMMON STOCKS - 98.7%


Australia - 12.7%

Abacus Property Group NPV		800,347		$1,365

Australand Property Group		588,963		1,214

Babcock & Brown Japan Property Trust		627,558		956

Bunnings Warehouse Property Trust		371,543		769

Centro Properties Group		1,114,478		7,297

Centro Retail Group		1,469,053		2,127

Centro Shopping America Trust		1,318,438		1,242

CFS Retail Property Trust		2,216,346		4,706

Commonwealth Property Office Fund		2,140,951		3,167

DB RREEF Trust		3,819,299		6,820

FKP Property Group		337,568		2,075

GPT Group		2,694,297		12,208

ING Industrial Fund		1,456,564		3,662

ING Office Fund		1,571,401		2,485

Macquarie CountryWide Trust		1,712,598		3,028

Macquarie DDR Trust		1,181,904		1,234

Macquarie Goodman Group		2,228,385		13,680

Macquarie Office Trust		2,646,878		3,680

Mirvac Group		1,338,773		6,482

Multiplex Group		820,532		3,652

Stockland *		43,761		347

Stockland - New		1,865,297		14,915

Sunland Group Ltd.		307,636		1,107

Tishman Speyer Office Fund		424,084		829

Valad Property Group		1,990,998		3,538

Westfield Group		2,532,339		48,821


				151,406


Austria - 1.1%

CA Immobilien Anlagen A.G. *		115,147		3,055

Conwert Immobilien Invest A.G. *		112,130		2,074

IMMOFINANZ A.G.		604,055		7,544

Sparkassen Immobilien A.G. *		88,284		1,033


				13,706


Belgium - 0.4%

Befimmo SCA Sicafi		17,202		1,791

Cofinimmo S.A.		10,456		1,851

Intervest Offices		8,667		356

Leasinvest Real Estate SCA		2,795		289

Warehouses De Pauw SCA		8,232		564

Wereldhave Belgium N.V.		2,612		220


				5,071


	NUMBER		VALUE
	OF SHARES		(000S)

COMMON STOCKS - 98.7% – CONTINUED


Bermuda - 0.2%

Orient-Express Hotels Ltd.		55,473		$2,844


Canada - 2.5%

Allied Properties Real Estate Investment Trust		31,878		708

Boardwalk Real Estate Investment Trust		68,165		3,248

Calloway Real Estate Investment Trust		98,798		2,465

Canadian Apartment Properties Real Estate Investment Trust		79,420		1,527

Canadian Hotel Income Properties Real Estate Investment Trust		1,800		35

Canadian Real Estate Investment Trust		79,800		2,405

Chartwell Seniors Housing Real Estate Investment Trust		122,300		1,575

Cominar Real Estate Investment Trust		57,443		1,239

Dundee Real Estate Investment Trust		21,307		830

Extendicare Real Estate Investment Trust		78,609		1,178

H&R Real Estate Investment Trust		176,361		4,224

InnVest Real Estate Investment Trust		71,100		859

Morguard Real Estate Investment Trust		57,300		791

Northern Property Real Estate Investment Trust		28,800		678

Primaris Retail Real Estate Investment Trust		81,092		1,511

RioCan Real Estate Investment Trust		274,379		6,862


				30,135


Cayman Islands - 0.3%

Agile Property Holdings Ltd.		1,963,000		4,122



China - 1.1%

Country Garden Holdings Co Ltd. *		4,315,000		7,340

Shimao Property Holdings Ltd.		1,740,500		5,297


				12,637


Denmark - 0.1%

TK Development *		36,838		702



Finland - 0.3%

Citycon OYJ		216,747		1,383

Sponda OYJ		108,106		1,504

Technopolis PLC		52,561		459


				3,346



France - 3.7%

Acanthe Developpement S.A.		51,093		215

Affine S.A.		5,112		321

Fonciere Des Regions		27,344		4,010

Gecina S.A.		16,379		2,782

Icade		35,065		2,557

Klepierre		91,044		5,227

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)

COMMON STOCKS - 98.7% – CONTINUED


France - 3.7% – (continued)

Mercialys		37,811		$1,465

Societe de la Tour Eiffel		6,579		1,158

Societe Immobiliere de Location pour l’Industrie et le Commerce		17,112		2,879

Unibail		90,557		23,327


				43,941



Germany - 0.9%

Alstria Office A.G. *		35,717		663

Colonia Real Estate A.G. *		28,507		1,105

Deutsche Euroshop A.G.		45,187		1,670

Deutsche Wohnen A.G.		24,704		1,062

DIC Asset A.G.		27,699		983

IVG Immobilien A.G.		114,190		4,260

Patrizia Immobilien A.G.		32,927		505

Vivacon A.G.		24,816		646


				10,894



Greece - 0.1%

Babis Vovos International Construction S.A. *		33,107		1,140

Eurobank Properties Real Estate Investment Co.		8,550		167

Lamda Development S.A.		18,260		401


				1,708


Hong Kong - 10.9%

Champion Real Estate Investment Trust		1,706,000		970

China Overseas Land & Investment Ltd.		4,857,000		11,087

China Resources Land Ltd.		1,958,000		4,082

Great Eagle Holdings Ltd.		389,625		1,479

Hang Lung Properties Ltd.		2,727,000		12,212

Henderson Land Development Co. Ltd.		1,024,000		8,123

Hongkong Land Holdings Ltd.		2,268,000		10,251

Hopson Development Holdings Ltd.		493,000		1,643

Hysan Development Co. Ltd.		1,033,000		2,865

Kerry Properties Ltd.		691,301		5,311

Kowloon Development Co. Ltd.		743,500		1,898

Link REIT (The)		2,821,000		6,207

New World China Land Ltd.		1,468,600		1,408

New World Development Ltd.		3,647,320		10,091

Shenzhen Investment Ltd.		1,929,000		1,723

Shui On Land Ltd.		1,609,000		1,959

Sino Land Co.		3,026,000		7,531

Sun Hung Kai Properties Ltd.		2,456,000		41,401


				130,241


	NUMBER		VALUE
	OF SHARES		(000S)

COMMON STOCKS - 98.7% – CONTINUED


Italy - 0.3%

Aedes S.p.A.		96,648		$652

Beni Stabili S.p.A.		991,826		1,244

Immobiliare Grande Distribuzione		160,756		631

Risanamento S.p.A. *		142,855		1,079


				3,606



Japan - 12.7%

Aeon Mall Co. Ltd.		95,320		2,917

Daibiru Corp.		69,800		880

Goldcrest Co Ltd.		17,070		786

Heiwa Real Estate Co. Ltd.		183,000		1,267

Japan Prime Realty Investment Corp.		821		3,429

Japan Real Estate Investment Corp.		539		6,485

Japan Retail Fund Investment Corp.		517		4,508

Kenedix Realty Investment Corp.		273		1,904

Mitsubishi Estate Co Ltd.		1,354,000		38,841

Mitsui Fudosan Co. Ltd.		1,161,000		32,292

Mori Trust Sogo REIT, Inc.		98		1,171

Nippon Building Fund, Inc.		672		9,785

Nippon Commercial Investment Corp.		329		1,431

Nomura Real Estate Office Fund, Inc.		357		3,735

NTT Urban Development Corp.		1,743		3,617

Orix JREIT, Inc.		287		1,962

Premier Investment Co.		124		899

Sumitomo Realty & Development Co. Ltd.		628,000		22,121

TOC Co. Ltd.		127,500		1,175

Tokyo Tatemono Co. Ltd.		315,000		4,024

Tokyu Land Corp.		526,000		5,288

Tokyu REIT, Inc.		158		1,543

United Urban Investment Corp.		201		1,386


				151,446



Luxembourg - 0.1%
GAGFAH S.A.		58,598		1,154



Netherlands - 1.9%

Corio N.V.		88,385		7,556

Eurocommercial Properties N.V.		46,405		2,583

Nieuwe Steen Investments Funds N.V.		46,414		1,294

Plaza Centers N.V. *		148,137		545

Rodamco Europe N.V.		31,180		4,349

Vastned Offices/Industrial		27,566		872

Vastned Retail N.V.		21,786		1,755

Wereldhave N.V.		27,329		3,294


				22,248

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 EQUITY INDEX FUNDS

equity index funds

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)

COMMON STOCKS - 98.7% – CONTINUED


New Zealand - 0.1%

Kiwi Income Property Trust		926,353		$1,019


Norway - 0.1%

Norwegian Property ASA		93,722		1,130


Poland - 0.2%

Globe Trade Centre S.A. *		141,161		2,537


Singapore - 2.6%

Allgreen Properties Ltd.		1,009,000		1,304

Ascendas Real Estate Investment Trust		1,758,000		3,230

CapitaCommercial Trust		1,368,000		2,615

CapitaLand Ltd.		1,833,000		10,054

CapitaMall Trust		1,546,000		4,058

Guocoland Ltd.		238,333		818

Keppel Land Ltd.		472,000		2,636

Mapletree Logistics Trust		1,066,000		897

Singapore Land Ltd.		209,000		1,435

Suntec Real Estate Investment Trust		1,844,000		2,420

Wing Tai Holdings Ltd.		684,000		1,777


				31,244


Spain - 0.0%

Renta Corp. Real Estate S.A.		12,674		421


Sweden - 0.9%

Castellum AB		226,341		2,822

Fabege AB		234,812		2,799

Hufvudstaden AB		106,290		1,148

Klovern AB		159,818		628

Kungsleden AB		179,617		2,316

Wihlborgs Fastigheter AB		49,231		914


				10,627


Switzerland - 0.5%

Allreal Holding A.G.		6,229		731

PSP Swiss Property A.G. *		61,620		3,274

Swiss Prime Site A.G. *		25,041		1,425

Zueblin Immobilien Holding A.G. *		40,822		353


				5,783


United Kingdom - 7.8%

Assura Group Ltd.		310,988		1,320

Big Yellow Group PLC		110,502		1,130

British Land Co. PLC		681,469		16,335

Brixton PLC		351,814		2,607

Capital & Regional PLC		93,261		1,404

CLS Holdings PLC *		68,391		713

Daejan Holdings		6,042		464


	NUMBER		VALUE
	OF SHARES		(000S)

COMMON STOCKS - 98.7% – CONTINUED


United Kingdom - 7.8% – (continued)

Derwent London PLC		132,719		$4,550

Development Securities PLC		49,826		548

Grainger Trust PLC		129,481		1,185

Great Portland Estates PLC		239,373		2,925

Hammerson PLC		382,323		9,165

Helical Bar PLC		127,215		1,188

Invista Foundation Property Trust Ltd.		463,612		1,064

Land Securities Group PLC		618,534		21,279

Liberty International PLC		477,371		11,140

Mapeley Ltd.		14,735		636

Marylebone Warwick Balfour Group PLC *		52,844		291

Minerva PLC *		214,121		991

Mucklow (A&J) Group PLC		27,092		174

Primary Health Properties PLC		37,838		269

Quintain Estates & Development PLC		169,762		2,569

Segro PLC		570,667		5,830

Shaftesbury PLC		177,337		1,797

St. Modwen Properties PLC		120,938		1,176

Unite Group PLC		162,579		1,201

Workspace Group PLC		228,430		1,480


				93,431


United States - 37.2%

Acadia Realty Trust		38,606		1,047

Agree Realty Corp.		7,174		225

Alexander’s, Inc. *		2,415		931

Alexandria Real Estate Equities, Inc.		38,797		3,735

AMB Property Corp.		131,410		7,860

American Campus Communities, Inc.		27,461		804

American Financial Realty Trust		159,380		1,283

Apartment Investment & Management Co.		129,534		5,846

Archstone-Smith Trust		294,294		17,699

Ashford Hospitality Trust, Inc.		158,130		1,589

Associated Estates Realty Corp.		15,969		208

AvalonBay Communities, Inc.		103,995		12,278

BioMed Realty Trust, Inc.		87,350		2,105

Boston Properties, Inc.		157,085		16,321

Brandywine Realty Trust		114,445		2,897

BRE Properties, Inc.		67,826		3,793

Brookfield Properties Corp.		391,528		9,732

Camden Property Trust		74,081		4,760

CBL & Associates Properties, Inc.		88,354		3,097

Cedar Shopping Centers, Inc.		51,611		703

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)

COMMON STOCKS - 98.7% – CONTINUED


United States - 37.2% – (continued)

Colonial Properties Trust		63,304		$2,171

Corporate Office Properties Trust SBI MD		62,021		2,582

Corrections Corp. of America *		162,832		4,261

Cousins Properties, Inc.		50,531		1,484

DCT Industrial Trust, Inc.		224,399		2,349

Developers Diversified Realty Corp.		165,692		9,257

DiamondRock Hospitality Co		128,986		2,246

Digital Realty Trust, Inc.		81,235		3,200

Douglas Emmett, Inc.		74,163		1,834

Duke Realty Corp.		182,330		6,165

EastGroup Properties, Inc.		29,128		1,318

Education Realty Trust, Inc.		29,480		398

Entertainment Properties Trust		35,555		1,806

Equity Inns, Inc.		74,230		1,676

Equity Lifestyle Properties, Inc.		31,930		1,654

Equity One, Inc.		44,773		1,218

Equity Residential		366,139		15,510

Essex Property Trust, Inc.		33,208		3,904

Extra Space Storage, Inc.		78,010		1,201

Federal Realty Investment Trust		74,789		6,626

FelCor Lodging Trust, Inc.		80,190		1,598

First Industrial Realty Trust, Inc.		61,202		2,379

First Potomac Realty Trust		27,457		599

Forest City Enterprises, Inc.		101,391		5,593

General Growth Properties, Inc.		323,609		17,352

Getty Realty Corp.		20,435		556

Glimcher Realty Trust		45,311		1,065

GMH Communities Trust		43,620		338

HCP, Inc.		272,553		9,041

Health Care REIT, Inc.		106,712		4,721

Healthcare Realty Trust, Inc.		58,822		1,568

Hersha Hospitality Trust		43,710		433

Highwoods Properties, Inc.		76,858		2,818

Hilltop Holdings, Inc. *		46,080		541

Home Properties, Inc.		45,097		2,353

Hospitality Properties Trust		124,138		5,046

Host Hotels & Resorts, Inc.		691,869		15,525

HRPT Properties Trust		276,523		2,735

Inland Real Estate Corp.		79,613		1,233

Investors Real Estate Trust		54,146		585

Kilroy Realty Corp.		42,731		2,591

Kimco Realty Corp.		334,395		15,118


	NUMBER		VALUE
	OF SHARES		(000S)

COMMON STOCKS - 98.7% – CONTINUED


United States - 37.2% – (continued)

Kite Realty Group Trust		33,220		$624

LaSalle Hotel Properties		51,757		2,178

Lexington Realty Trust		85,220		1,705

Liberty Property Trust		121,785		4,897

LTC Properties, Inc.		27,497		651

Macerich (The) Co.		95,322		8,348

Mack-Cali Realty Corp.		89,510		3,679

Maguire Properties, Inc.		61,600		1,591

Medical Properties Trust, Inc.		57,625		767

Mid-America Apartment Communities, Inc.		32,924		1,641

National Healthcare Corp.		11,260		579

National Retail Properties, Inc.		86,134		2,100

Nationwide Health Properties, Inc.		120,756		3,638

Omega Healthcare Investors, Inc.		82,738		1,285

Parkway Properties, Inc./Md		18,975		837

Pennsylvania Real Estate Investment Trust		48,664		1,895

Post Properties, Inc.		57,209		2,214

Prologis		337,920		22,421

PS Business Parks, Inc.		19,497		1,108

Public Storage, Inc.		168,760		13,273

Ramco-Gershenson Properties		21,210		663

Realty Income Corp.		134,480		3,759

Regency Centers Corp.		91,260		7,004

Republic Property Trust		27,703		406

Saul Centers, Inc.		15,391		793

Senior Housing Properties Trust		110,307		2,433

Simon Property Group, Inc.		294,288		29,429

SL Green Realty Corp.		78,966		9,221

Sovran Self Storage, Inc.		26,101		1,196

Strategic Hotels & Resorts, Inc.		99,110		2,041

Sun Communities, Inc.		20,659		621

Sunstone Hotel Investors, Inc.		81,040		2,078

Tanger Factory Outlet Centers		38,680		1,570

Taubman Centers, Inc.		52,932		2,898

U-Store-It Trust		68,650		906

UDR, Inc.		175,356		4,265

UDR, Inc. *		5,060		123

Universal Health Realty Income Trust		12,344		439

Urstadt Biddle Properties, Inc.		19,439		301

Ventas, Inc.		177,165		7,335

Vornado Realty Trust		199,903		21,859

Washington Real Estate Investment Trust		61,629		2,045

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 EQUITY INDEX FUNDS

equity index funds



SCHEDULE OF INVESTMENTS


GLOBAL REAL ESTATE INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)

COMMON STOCKS - 98.7% – CONTINUED


United States - 37.2% – (continued)

Weingarten Realty Investors		114,537		$4,749

Winthrop Realty Trust		51,670		348



				443,474



Total Common Stocks



(Cost $1,183,132)				1,178,873


RIGHTS - 0.0%


Citycon OYJ *		182,553		32



Total Rights



(Cost $-)				32


INVESTMENT COMPANIES - 0.6%


F&C Commercial Property Trust Ltd.		389		956

ING UK Real Estate Income Trust Ltd.		430		893

Invesco UK Property Income Trust Ltd.		189		412

ISIS Property Ltd.		59		164

ISIS Property Trust 2 Ltd.		97		246

ProLogis European Properties		74		1,254

Sparkassen Immo Invest Genusscheine		3		380

Standard Life Investment Property Income Trust PLC		124		286

Teesland Advantage Property Income Trust Ltd.		178		385

UK Balanced Property Trust (The) Ltd.		243		836

UK Commercial Property Trust Ltd.		326		560

Westbury Property Fund (The) Ltd.		125		380



Total Investment Companies



(Cost $7,208)				6,752


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

SHORT-TERM INVESTMENT - 0.1%


ABN Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$1,429		1,429



Total Short-Term Investment



(Cost $1,429)				1,429



Total Investments - 99.4%



(Cost $1,191,769)				1,187,086

Other Assets less Liabilities - 0.6%				7,027



NET ASSETS - 100.0%				$1,194,113

Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Global Real Estate Index Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Capital Markets		0.2	%

Commercial Service & Supply		0.4

Healthcare Providers & Services		0.1

Hotels Restaurants & Leisure		0.2

Household Durables		0.1

Industrial Conglomerates		6.8

Real Estate		0.2

Real Estate Investment Trusts		63.2

Real Estate Management/Development		28.8



Total		100.0	%

At September 30, 2007, the Global Real Estate Index Fund had outstanding forward foreign currency exchange contracts as follows:

AMOUNT

CONTRACTS

(LOCAL

EXCHANGE

(LOCAL

UNREALIZED

TO DELIVER

CURRENCY)

FOR

CURRENCY)

SETTLEMENT

LOSS

CURRENCY

(000S)

CURRENCY

(000S)

DATE

(000S)

Singapore

Hong Kong

Dollar

232

Dollar

1,200

9/27/07

$(1)

Norwegian

U.S. Dollar

Krone

108

10/1/07

Polish

U.S. Dollar

Zloty

10/1/07

Australian

U.S. Dollar

100

Dollar

113

10/2/07

Hong Kong

U.S. Dollar

200

Dollar

1,555

10/2/07

Total

$(1)

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT



equity index funds

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6%

Australia - 6.3%

ABC Learning Centres Ltd.		32,918		$192

AGL Energy Ltd.		57,195		806

Alumina Ltd.		138,362		878

Amcor Ltd.		123,482		810

AMP Ltd.		239,673		2,244

Ansell Ltd.		5,525		61

APN News & Media Ltd.		9,689		45

Aristocrat Leisure Ltd.		44,804		553

Asciano Group *		64,332		513

ASX Ltd.		22,770		1,087

Australia & New Zealand Banking Group Ltd.		227,893		6,013

AXA Asia Pacific Holdings Ltd.		94,494		655

Babcock & Brown International Pty Ltd.		29,699		725

BHP Billiton Ltd.		410,340		16,241

Billabong International Ltd.		11,476		153

BlueScope Steel Ltd.		95,984		917

Boral Ltd.		72,787		465

Brambles Ltd.		180,991		2,373

Caltex Australia Ltd.		15,266		319

Centro Properties Group		112,486		737

CFS Gandel Retail Trust		183,099		389

Challenger Financial Services Group Ltd.		4,771		26

Coca-Cola Amatil Ltd.		69,954		559

Cochlear Ltd.		6,748		467

Coles Group Ltd.		144,793		1,981

Commonwealth Bank of Australia		158,693		7,950

Commonwealth Property Office Fund		175,086		259

Computershare Ltd.		68,630		566

CSL Ltd.		22,690		2,163

CSR Ltd.		100,346		277

DB RREEF Trust		382,721		683

Downer EDI Ltd.		26,445		147

Fairfax Media Ltd.		154,919		650

Fortescue Metals Group Ltd. *		18,211		772

Foster’s Group Ltd.		254,369		1,476

Futuris Corp. Ltd.		8,966		17

Goodman Fielder Ltd.		111,815		256

Goodman Group		189,901		1,166

GPT Group		261,063		1,183

Harvey Norman Holdings Ltd.		64,926		344

Iluka Resources Ltd.		5,578		27

ING Industrial Fund		8,541		22


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Australia - 6.3% – (continued)

Insurance Australia Group Ltd.		221,396	$	1,033

Leighton Holdings Ltd.		18,580		850

Lend Lease Corp. Ltd.		45,018		756

Lion Nathan Ltd.		31,803		261

Macquarie Airports		36,653		142

Macquarie Bank Ltd.		32,550		2,441

Macquarie Communications Infrastructure Group		42,556		230

Macquarie Infrastructure Group		350,097		970

Macquarie Office Trust		205,616		286

Mirvac Group		143,739		696

Multiplex Group		19,763		88

National Australia Bank Ltd.		199,221		7,028

Newcrest Mining Ltd.		44,815		1,115

Newcrest Mining Ltd. IPO		15,685		390

OneSteel Ltd.		44,038		270

Orica Ltd.		38,503		1,030

Origin Energy Ltd.		106,400		974

Pacific Brands Ltd.		22,810		63

Paladin Resources Ltd. *		28,883		199

PaperlinX Ltd.		10,058		27

Perpetual Ltd.		4,700		305

Publishing & Broadcasting Ltd.		56,404		987

Qantas Airways Ltd.		111,307		552

QBE Insurance Group Ltd.		106,875		3,209

Rio Tinto Ltd.		35,094		3,374

Santos Ltd.		76,000		1,016

Sonic Healthcare Ltd.		38,220		530

Stockland		181,106		1,448

Stockland - New *		4,720		37

Suncorp-Metway Ltd.		113,262		2,043

Symbion Health Ltd.		84,728		314

TABCORP Holdings Ltd.		70,591		950

Tattersall’s Ltd.		141,878		500

Telstra Corp. Ltd.		373,674		1,448

Telstra Corp. Ltd. - Installment Receipts		181,572		461

Toll Holdings Ltd.		70,858		825

Transurban Group		133,104		863

Wesfarmers Ltd.		48,997		1,828

Westfield Group		215,851		4,161

Westpac Banking Corp.		227,822		5,769

Woodside Petroleum Ltd.		61,366		2,737

Woolworths Ltd.		148,230		3,913

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Australia - 6.3% – (continued)

WorleyParsons Ltd.		20,219		$762

Zinifex Ltd.		62,408		983



				115,031



Austria - 0.6%

Andritz A.G.		4,430		306

BWIN Interactive Entertainment A.G. *		1,650		39

Erste Bank der Oesterreichischen Sparkassen A.G.		23,800		1,816

Flughafen Wien A.G.		530		55

Immoeast A.G. *		50,330		549

IMMOFINANZ A.G.		57,704		721

Mayr-Melnhof Karton A.G.		840		93

Meinl European Land Ltd. A.G. *		38,088		544

OMV A.G.		21,110		1,411

Raiffeisen International Bank Holding A.G.		4,580		670

RHI A.G. *		800		37

Telekom Austria A.G.		45,550		1,193

Verbund - Oesterreichische Elektrizitaetswirtschafts A.G., Class A		9,110		525

Voestalpine A.G.		14,210		1,229

Wiener Staedtische Versicherung A.G.		3,360		235

Wienerberger A.G.		8,280		518



				9,941



Belgium - 1.1%

AGFA-Gevaert N.V.		15,368		296

Barco N.V.		789		68

Bekaert N.V.		1,703		229

Belgacom S.A.		19,676		914

Cofinimmo		718		127

Colruyt S.A.		2,023		428

Compagnie Maritime Belge S.A.		1,010		75

D’ieteren S.A.		176		79

Delhaize Group		9,774		937

Dexia S.A.		64,143		1,944

Euronav N.V.		1,367		43

Fortis		152,021		4,480

Groupe Bruxelles Lambert S.A.		10,001		1,214

InBev N.V.		22,887		2,076

KBC Groep N.V.		22,415		3,087

Mobistar S.A.		4,169		365

Omega Pharma S.A.		2,138		188

Solvay S.A., Class A		7,982		1,159

UCB S.A.		14,267		843


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Belgium - 1.1% – (continued)

Umicore		3,045		$728



				19,280



Bermuda - 0.1%

Frontline Ltd.		6,550		322

SeaDrill Ltd. *		32,800		738



				1,060



China - 0.1%

Belle International Holdings Ltd.		235,000		309

Foxconn International Holdings Ltd. *		275,000		754

Tencent Holdings Ltd.		110,000		711

Tingyi Cayman Islands Holding Corp.		136,000		212



				1,986



Denmark - 0.9%

A.P. Moller - Maersk A/S		136		1,869

Bang & Olufsen A/S, Class B		1,176		133

Carlsberg A/S, Class B		4,200		574

Coloplast A/S, Class B		2,956		281

D/S Torm A/S		1,677		68

Danisco A/S		6,101		475

Danske Bank A/S		56,842		2,310

DSV A/S		25,860		610

East Asiatic Co. Ltd. A/S		1,740		130

FLSmidth & Co. A/S		6,897		734

GN Store Nord A/S *		23,702		241

H. Lundbeck A/S		4,702		128

Jyske Bank (Registered) *		6,888		536

NKT Holding A/S		1,907		214

Novo-Nordisk A/S, Class B		29,879		3,609

Novozymes A/S, Class B		5,688		715

Sydbank A/S		5,377		234

Topdanmark A/S *		2,152		354

TrygVesta A/S		3,524		283

Vestas Wind Systems A/S *		23,713		1,875

William Demant Holding A/S *		3,763		333



				15,706



Finland - 1.8%

Amer Sports OYJ, Class A		5,250		122

Cargotec Corp., Class B		4,349		214

Elisa OYJ		18,830		586

Fortum OYJ		54,995		2,020

KCI Konecranes OYJ		3,474		140

Kesko OYJ, Class B		8,459		562

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 EQUITY INDEX FUNDS

equity index funds

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Finland - 1.8% – (continued)

Kone OYJ, Class B		9,882		$721

Metso OYJ		15,752		1,086

Neste Oil OYJ		16,046		588

Nokia OYJ		500,456		19,042

Nokian Renkaat OYJ		14,006		549

OKO Bank PLC, Class A		7,680		159

Orion OYJ, Class B		9,541		243

Outokumpu OYJ		14,400		518

Rautaruukki OYJ		10,484		636

Sampo OYJ, Class A		53,408		1,632

Sanoma-WSOY OYJ		8,226		256

Stora Enso OYJ (Registered)		72,934		1,422

TietoEnator OYJ		8,300		186

UPM-Kymmene OYJ		65,422		1,584

Uponor OYJ		6,300		196

Wartsila OYJ, Class B		9,092		623

YIT OYJ		18,019		536


				33,621


France - 9.1%

Accor S.A.		23,853		2,120

ADP		4,239		489

Air France-KLM		15,519		571

Air Liquide		29,831		3,996

Alcatel-Lucent		284,747		2,926

Alstom		12,878		2,620

Atos Origin S.A. *		8,526		496

AXA S.A.		193,015		8,644

BNP Paribas		102,385		11,214

Bouygues		27,692		2,391

Business Objects S.A. *		10,442		466

Cap Gemini S.A.		16,789		1,036

Carrefour S.A.		73,441		5,150

Casino Guichard Perrachon S.A.		4,778		501

Cie de Saint-Gobain		40,700		4,251

Cie Generale d’Optique Essilor International S.A.		24,763		1,555

CNP Assurances		5,368		687

Credit Agricole S.A.		81,596		3,150

Dassault Systemes S.A.		7,412		487

France Telecom S.A.		222,294		7,452

Gaz de France S.A.		22,818		1,187

Gecina S.A.		1,699		289

Groupe Danone		54,026		4,256


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

France - 9.1% – (continued)

Hermes International		8,646		$974

Icade		2,073		151

Imerys S.A.		2,766		253

Klepierre		8,700		500

L’Oreal S.A.		30,807		4,045

Lafarge S.A.		18,500		2,869

Lagardere S.C.A.		15,720		1,339

LVMH Moet Hennessy Louis Vuitton S.A.		30,169		3,620

M6-Metropole Television		4,527		131

Michelin Compagnie Generale des Establissements, Class B		17,849		2,402

Neopost S.A.		3,499		494

PagesJaunes Groupe S.A.		13,903		286

Pernod-Ricard S.A.		11,237		2,454

Peugeot S.A.		18,914		1,562

PPR		9,429		1,776

Publicis Groupe		17,399		716

Renault S.A.		22,846		3,313

Safran S.A.		19,409		469

Sanofi-Aventis		124,975		10,591

Schneider Electric S.A.		26,707		3,377

SCOR SE		19,005		510

Societe BIC S.A.		2,621		225

Societe Des Autoroutes Paris-Rhin-Rhone		2,163		228

Societe Generale		45,093		7,574

Societe Television Francaise 1		15,258		410

Sodexho Alliance S.A.		10,580		732

Suez S.A.		125,670		7,407

Suez S.A. (Strip VVPR) *		8,460		-

Technip S.A.		12,484		1,117

Thales S.A.		11,658		684

Thomson		26,904		410

Total S.A.		262,851		21,391

Unibail		9,156		2,359

Valeo S.A.		6,840		381

Vallourec		5,824		1,679

Veolia Environment		42,736		3,683

Vinci S.A.		49,067		3,837

Vivendi		141,618		5,983

Zodiac S.A.		2,141		154


				166,020

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Germany - 7.7%

Adidas A.G.		25,397		$1,667

Allianz S.E. (Registered)		54,807		12,817

Altana A.G.		7,989		193

BASF A.G.		61,142		8,465

Bayer A.G.		88,662		7,063

Beiersdorf A.G.		10,827		812

Bilfinger & Berger A.G.		4,676		366

Celesio A.G.		10,084		637

Commerzbank A.G.		76,734		3,109

Continental A.G.		16,258		2,250

DaimlerChrysler A.G. (Registered)		113,053		11,398

Deutsche Bank A.G. (Registered)		62,220		8,026

Deutsche Boerse A.G.		24,630		3,357

Deutsche Lufthansa A.G. (Registered)		28,492		820

Deutsche Post A.G. (Registered)		95,591		2,783

Deutsche Postbank A.G.		9,413		692

Deutsche Telekom A.G. (Registered)		346,229		6,809

Douglas Holding A.G.		3,770		236

E.ON A.G.		76,114		14,085

Fresenius Medical Care A.G. & Co. KGaA		22,090		1,175

Heidelberger Druckmaschinen		6,784		297

Henkel KGaA		12,851		609

Hochtief A.G.		5,132		623

Hypo Real Estate Holding A.G.		16,347		930

Infineon Technologies A.G. *		93,743		1,618

IVG Immobilien A.G.		9,670		361

KarstadtQuelle A.G. *		5,818		195

Linde A.G.		14,666		1,823

MAN A.G.		13,992		2,038

Merck KGaA		7,909		955

Metro A.G.		20,224		1,828

MLP A.G.		4,394		59

Muenchener Rueckversicherungs A.G. (Registered)		25,764		4,956

Premiere A.G. *		8,244		178

Puma A.G. Rudolf Dassler Sport A.G.		777		334

Rheinmetall A.G.		4,535		361

RWE A.G.		54,348		6,841

Salzgitter A.G.		4,980		979

SAP A.G.		108,387		6,350

Siemens A.G. (Registered)		104,035		14,316

Solarworld A.G.		7,782		448

Suedzucker A.G.		5,958		120


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Germany - 7.7% – (continued)

ThyssenKrupp A.G.		44,616		$2,844

TUI A.G. *		26,341		708

Volkswagen A.G.		19,368		4,381

Wincor Nixdorf A.G.		3,410		282


				141,194


Greece - 0.7%

Alpha Bank A.E.		48,418		1,689

Coca Cola Hellenic Bottling Co. S.A.		14,170		819

Cosmote Mobile Telecommunications S.A.		14,510		499

EFG Eurobank Ergasias S.A.		39,713		1,398

Folli-Follie S.A. (Registered)		320		13

Hellenic Exchanges Holding S.A.		3,790		122

Hellenic Petroleum S.A.		12,050		193

Hellenic Technodomiki Tev S.A.		14,160		189

Hellenic Telecommunications Organization S.A.		45,800		1,699

Motor Oil Hellas Corinth Refineries S.A.		2,130		56

National Bank of Greece S.A.		50,460		3,219

OPAP S.A.		29,050		1,128

Piraeus Bank S.A.		40,150		1,436

Public Power Corp. S.A.		13,610		540

Titan Cement Co. S.A.		6,840		354

Viohalco		11,820		195


				13,549


Hong Kong - 1.9%

ASM Pacific Technology		20,000		177

Bank of East Asia Ltd.		172,973		970

BOC Hong Kong Holdings Ltd.		480,000		1,217

Cathay Pacific Airways Ltd.		173,000		473

Cheung Kong Holdings Ltd.		184,000		3,035

Cheung Kong Infrastructure Holdings Ltd.		45,000		169

CLP Holdings Ltd.		165,000		1,142

Esprit Holdings Ltd.		132,000		2,098

Giordano International Ltd.		46,000		23

Hang Lung Properties Ltd.		259,000		1,160

Hang Seng Bank Ltd.		94,300		1,676

Henderson Land Development Co. Ltd.		112,000		889

Hong Kong & China Gas Co. Ltd.		446,900		1,041

Hong Kong Electric Holdings Ltd.		180,500		938

Hong Kong Exchanges and Clearing Ltd.		132,000		4,036

Hopewell Holdings Ltd.		87,000		415

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 EQUITY INDEX FUNDS



equity index funds

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Hong Kong - 1.9% – (continued)

Hutchison Telecommunications International Ltd.		169,000		$235

Hutchison Whampoa Ltd.		266,000		2,846

Hysan Development Co. Ltd.		73,140		203

Johnson Electric Holdings Ltd.		157,000		82

Kerry Properties Ltd.		76,821		590

Kingboard Chemicals Holdings Ltd.		77,000		491

Li & Fung Ltd.		272,800		1,158

Link REIT (The)		270,000		594

Melco International Development		45,000		84

MTR Corp.		174,172		519

New World Development Ltd.		324,139		897

Noble Group Ltd.		122,000		178

Orient Overseas International Ltd.		15,700		149

PCCW Ltd.		490,000		324

Shangri-La Asia Ltd.		142,000		479

Sino Land Co.		172,866		430

Sun Hung Kai Properties Ltd.		173,000		2,916

Swire Pacific Ltd., Class A		108,500		1,316

Techtronic Industries Co.		117,000		133

Television Broadcasts Ltd.		32,000		192

Wharf Holdings Ltd.		160,000		787

Wing Hang Bank Ltd.		11,000		127

Yue Yuen Industrial Holdings		90,000		269


				34,458


Ireland - 0.8%

Allied Irish Banks PLC		108,218		2,626

Bank of Ireland		122,182		2,267

C&C Group PLC		41,701		345

CRH PLC		67,372		2,678

DCC PLC		10,097		298

Depfa Bank PLC		43,029		892

Elan Corp. PLC *		57,524		1,207

Experian Group Ltd.		129,562		1,370

Grafton Group PLC *		28,618		320

Greencore Group PLC		3,313		21

Iaws Group PLC		15,103		336

Independent News & Media PLC		65,416		244

Irish Life & Permanent PLC		34,145		758

Kerry Group PLC, Class A		17,849		530

Kingspan Group PLC (Dublin Exchange)		16,023		352

Paddy Power PLC		3,948		138


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Ireland - 0.8% – (continued)

Ryanair Holdings PLC ADR *		5,370		$223


				14,605


Italy - 3.6%

Alleanza Assicurazioni S.p.A.		52,364		698

Arnoldo Mondadori Editore S.p.A.		13,201		128

Assicurazioni Generali S.p.A.		129,486		5,703

Atlantia S.p.A.		33,307		1,126

Autogrill S.p.A.		13,187		254

Banca Monte dei Paschi di Siena S.p.A.		136,329		837

Banca Popolare di Milano Scrl		51,462		761

Banco Popolare Scarl *		81,832		1,835

Bulgari S.p.A.		15,522		244

Capitalia S.p.A.		198,217		1,895

Enel S.p.A.		531,119		6,019

ENI S.p.A.		317,828		11,789

Fiat S.p.A.		88,623		2,683

Finmeccanica S.p.A.		36,685		1,070

Fondiaria-Sai S.p.A.		6,656		313

Intesa Sanpaolo S.p.A.		942,636		7,285

Intesa Sanpaolo S.p.A. (RNC)		115,295		845

Italcementi S.p.A.		5,715		127

Lottomatica S.p.A.		6,116		221

Luxottica Group S.p.A.		17,268		588

Mediaset S.p.A.		94,653		978

Mediobanca S.p.A.		62,774		1,374

Mediolanum S.p.A.		26,828		190

Parmalat S.p.A.		197,447		702

Pirelli & C. S.p.A. *		309,841		374

Seat Pagine Gialle S.p.A.		426,520		238

Snam Rete Gas S.p.A.		109,502		682

Telecom Italia S.p.A.		1,322,332		4,024

Telecom Italia S.p.A. (RNC)		737,923		1,781

Terna S.p.A.		133,735		495

UniCredito Italiano S.p.A. (Milan Exchange)		955,621		8,183

Unione di Banche Italiane SCPA		74,642		2,008


				65,450


Japan - 19.6%

77 Bank (The) Ltd.		18,000		121

Access Co. Ltd. *		11		36

Acom Co. Ltd.		8,120		181

Aderans Holdings Co. Ltd.		2,400		50

Advantest Corp.		19,900		621

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Japan - 19.6% – (continued)

Aeon Co. Ltd.		79,800		$1,129

Aeon Credit Service Co. Ltd.		9,100		98

Aeon Mall Co. Ltd.		2,200		67

Aiful Corp.		9,950		156

Aisin Seiki Co. Ltd.		23,700		949

Ajinomoto Co., Inc.		76,000		954

Alfresa Holdings Corp.		2,400		153

All Nippon Airways Co. Ltd.		87,000		340

Alps Electric Co. Ltd.		18,600		224

Amada Co. Ltd.		46,000		515

Aoyama Trading Co. Ltd.		7,300		186

Asahi Breweries Ltd.		52,400		800

Asahi Glass Co. Ltd.		118,000		1,590

Asahi Kasei Corp.		147,000		1,189

Asatsu-DK, Inc.		3,200		103

Asics Corp.		20,000		310

Astellas Pharma, Inc.		65,800		3,161

Autobacs Seven Co. Ltd.		2,400		62

Bank of Kyoto (The) Ltd.		36,000		437

Bank of Yokohama (The) Ltd.		150,000		1,037

Benesse Corp.		8,600		330

Bridgestone Corp.		76,100		1,685

Canon Marketing Japan, Inc.		9,700		195

Canon, Inc.		130,600		7,140

Casio Computer Co. Ltd.		31,000		445

Central Glass Co. Ltd.		12,000		61

Central Japan Railway Co.		193		2,053

Chiba Bank (The) Ltd.		97,000		751

Chiyoda Corp.		19,000		343

Chubu Electric Power Co., Inc.		81,900		2,124

Chugai Pharmaceutical Co. Ltd.		34,600		572

Circle K Sunkus Co. Ltd.		2,000		31

Citizen Holdings Co. Ltd.		42,500		428

Coca-Cola West Holdings Co. Ltd.		4,700		111

COMSYS Holdings Corp.		13,000		143

Credit Saison Co. Ltd.		20,300		524

CSK Holdings Corp.		7,800		305

Dai Nippon Printing Co. Ltd.		76,000		1,088

Daicel Chemical Industries Ltd.		38,000		301

Daido Steel Co. Ltd.		41,000		350

Daiichi Sankyo Co Ltd.		85,900		2,584

Daikin Industries Ltd.		32,500		1,567


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Japan - 19.6% – (continued)

Dainippon Ink & Chemicals, Inc.		85,000		$377

Dainippon Screen Manufacturing Co. Ltd.		23,000		139

Daito Trust Construction Co. Ltd.		10,700		517

Daiwa House Industry Co. Ltd.		63,000		823

Daiwa Securities Group, Inc.		166,000		1,583

Denki Kagaku Kogyo KK		60,000		337

Denso Corp.		60,000		2,265

Dentsu, Inc.		248		705

Dowa Mining Co. Ltd.		34,000		431

E*Trade Securities Co. Ltd.		166		158

eAccess Ltd.		14		8

East Japan Railway Co.		417		3,294

Ebara Corp.		46,000		213

EDION Corp.		3,000		33

Eisai Co. Ltd.		31,500		1,491

Electric Power Development Co.		17,900		698

Elpida Memory, Inc. *		12,600		464

FamilyMart Co. Ltd.		7,400		193

Fanuc Ltd.		23,600		2,410

Fast Retailing Co. Ltd.		6,800		393

Fuji Electric Holdings Co. Ltd.		74,000		330

Fuji Soft, Inc.		1,900		39

Fuji Television Network, Inc.		64		129

FUJIFILM Holdings Corp.		60,200		2,787

Fujikura Ltd.		49,000		311

Fujitsu Ltd.		226,000		1,600

Fukuoka Financial Group, Inc.		77,000		452

Furukawa Electric (The) Co. Ltd.		85,000		417

Glory Ltd.		7,100		226

Goodwill Group, Inc. (The) *		61		11

Gunma Bank (The) Ltd.		50,000		334

Hachijuni Bank (The) Ltd.		49,523		357

Hakuhodo DY Holdings, Inc.		2,770		195

H2O Retailing Corp.		10,000		83

Hankyu Hanshin Holdings, Inc.		153,800		787

Haseko Corp. *		135,500		325

Hikari Tsushin, Inc.		2,200		60

Hino Motors Ltd.		25,000		191

Hirose Electric Co. Ltd.		4,000		487

Hiroshima Bank (The) Ltd.		65,000		355

Hitachi Chemical Co. Ltd.		13,700		284

Hitachi Construction Machinery Co. Ltd.		13,300		532

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Japan - 19.6% – (continued)

Hitachi High-Technologies Corp.		8,000		$183

Hitachi Ltd.		414,000		2,761

Hokkaido Electric Power Co., Inc.		20,000		433

Hokuhoku Financial Group, Inc.		146,000		414

Honda Motor Co. Ltd.		190,400		6,408

House Foods Corp.		9,000		157

Hoya Corp.		50,400		1,723

Ibiden Co. Ltd.		15,500		1,307

Idemitsu Kosan Co. Ltd.		3,000		338

IHI Corp.		163,000		513

Inpex Holdings, Inc.		100		1,029

Isetan Co. Ltd.		23,500		317

Ito En Ltd.		7,300		178

Itochu Corp.		186,000		2,262

Itochu Techno-Science Corp.		3,700		131

J Front Retailing Co. Ltd. *		56,200		554

Jafco Co. Ltd.		3,600		134

Japan Airlines Corp. *		66,000		143

Japan Petroleum Exploration Co.		2,000		149

Japan Prime Realty Investment Corp.		71		297

Japan Real Estate Investment Corp.		48		578

Japan Retail Fund Investment Corp.		44		384

Japan Steel Works Ltd.		46,000		765

Japan Tobacco, Inc.		552		3,037

JFE Holdings, Inc.		71,100		5,046

JGC Corp.		26,000		502

Joyo Bank (The) Ltd.		82,000		458

JS Group Corp.		34,000		592

JSR Corp.		22,000		540

JTEKT Corp.		25,600		452

Jupiter Telecommunications Co. Ltd. *		277		215

Kajima Corp.		113,000		389

Kamigumi Co. Ltd.		34,000		286

Kaneka Corp.		41,000		345

Kansai Electric Power Co., Inc.		95,300		2,181

Kansai Paint Co. Ltd.		27,000		207

Kao Corp.		64,000		1,914

Kawasaki Heavy Industries Ltd.		182,000		714

Kawasaki Kisen Kaisha Ltd.		71,000		1,044

KDDI Corp.		301		2,236

Keihin Electric Express Railway Co. Ltd.		55,000		357

Keio Corp.		71,000		443


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Japan - 19.6% – (continued)

Keisei Electric Railway Co. Ltd.		29,000		$161

Keyence Corp.		4,400		978

Kikkoman Corp.		20,000		302

Kinden Corp.		10,000		92

Kintetsu Corp.		201,000		626

Kirin Brewery Co. Ltd.		99,000		1,312

Kobe Steel Ltd.		333,000		1,246

Kokuyo Co. Ltd.		10,000		104

Komatsu Ltd.		110,400		3,716

Komori Corp.		1,000		25

Konami Corp.		11,400		311

Konica Minolta Holdings, Inc.		59,500		1,010

Kose Corp.		2,800		74

Kubota Corp.		138,000		1,138

Kuraray Co. Ltd.		46,000		584

Kurita Water Industries Ltd.		14,200		483

Kyocera Corp.		20,200		1,897

Kyowa Hakko Kogyo Co. Ltd.		41,000		423

Kyushu Electric Power Co., Inc.		46,400		1,230

Lawson, Inc.		8,100		256

Leopalace21 Corp.		16,700		549

Mabuchi Motor Co. Ltd.		2,200		144

Makita Corp.		15,000		659

Marubeni Corp.		204,000		1,875

Marui Co. Ltd.		36,400		402

Matsui Securities Co. Ltd.		8,600		66

Matsumotokiyoshi Co. Ltd.		3,300		61

Matsushita Electric Industrial Co. Ltd.		240,000		4,510

Matsushita Electric Works Ltd.		46,000		556

Mediceo Paltac Holdings Co. Ltd.		18,200		279

Meiji Dairies Corp.		36,000		204

Meiji Seika Kaisha Ltd.		34,000		171

Meitec Corp.		4,100		120

Millea Holdings, Inc.		90,900		3,662

Minebea Co. Ltd.		49,000		336

Mitsubishi Chemical Holdings Corp.		147,000		1,282

Mitsubishi Corp.		165,400		5,249

Mitsubishi Electric Corp.		238,000		2,988

Mitsubishi Estate Co. Ltd.		144,000		4,131

Mitsubishi Gas Chemical Co., Inc.		49,000		455

Mitsubishi Heavy Industries Ltd.		395,000		2,587

Mitsubishi Logistics Corp.		6,000		85

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Japan - 19.6% – (continued)

Mitsubishi Materials Corp.		143,000		$890

Mitsubishi Rayon Co. Ltd.		68,000		483

Mitsubishi UFJ Financial Group, Inc.		1,028		9,053

Mitsubishi UFJ Lease & Finance Co. Ltd.		2,500		83

Mitsui & Co. Ltd.		208,000		5,060

Mitsui Chemicals, Inc.		78,000		776

Mitsui Engineering & Shipbuilding Co. Ltd.		95,000		539

Mitsui Fudosan Co. Ltd.		103,000		2,865

Mitsui Mining & Smelting Co. Ltd.		78,000		337

Mitsui O.S.K. Lines Ltd.		135,000		2,191

Mitsui Sumitomo Insurance Co. Ltd.		150,000		1,764

Mitsui Trust Holdings, Inc.		92,000		719

Mitsukoshi Ltd.		55,000		250

Mitsumi Electric Co. Ltd.		8,900		364

Mizuho Financial Group, Inc.		1,208		6,899

Murata Manufacturing Co. Ltd.		26,500		1,913

Namco Bandai Holdings, Inc.		25,800		376

NEC Corp.		248,000		1,207

NEC Electronics Corp. *		2,800		81

NGK Insulators Ltd.		33,000		1,065

NGK Spark Plug Co. Ltd.		22,000		342

NHK Spring Co. Ltd.		17,000		130

Nichirei Corp.		28,000		129

Nidec Corp.		13,500		945

Nikko Cordial Corp.		50,200		632

Nikon Corp.		40,000		1,378

Nintendo Co. Ltd.		12,100		6,309

Nippon Building Fund, Inc.		57		830

Nippon Electric Glass Co. Ltd.		41,500		669

Nippon Express Co. Ltd.		104,000		518

Nippon Meat Packers, Inc.		25,000		278

Nippon Mining Holdings, Inc.		111,500		1,122

Nippon Oil Corp.		154,000		1,433

Nippon Paper Group, Inc.		116		359

Nippon Sheet Glass Co. Ltd.		77,000		471

Nippon Shokubai Co. Ltd.		3,000		29

Nippon Steel Corp.		707,000		5,098

Nippon Telegraph & Telephone Corp.		638		2,987

Nippon Yusen Kabushiki Kaisha		135,000		1,321

Nishi-Nippon City Bank (The) Ltd.		67,000		189

Nissan Chemical Industries Ltd.		18,000		223

Nissan Motor Co. Ltd.		277,800		2,788


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Japan - 19.6% – (continued)

Nisshin Seifun Group, Inc.		25,000		$236

Nisshin Steel Co. Ltd.		97,000		438

Nisshinbo Industries, Inc.		17,000		237

Nissin Food Products Co. Ltd.		11,700		418

Nitori Co Ltd.		5,000		237

Nitto Denko Corp.		20,700		964

NOK Corp.		14,600		313

Nomura Holdings, Inc.		216,700		3,639

Nomura Real Estate Holdings, Inc.		7,000		205

Nomura Real Estate Office Fund, Inc.		30		314

Nomura Research Institute Ltd.		14,100		481

NSK Ltd.		58,000		510

NTN Corp.		53,000		474

NTT Data Corp.		157		701

NTT DoCoMo, Inc.		1,969		2,816

NTT Urban Development Corp.		155		322

Obayashi Corp.		78,000		362

Obic Co. Ltd.		970		188

Odakyu Electric Railway Co. Ltd.		80,000		517

OJI Paper Co. Ltd.		104,000		504

Oki Electric Industry Co. Ltd. *		50,000		86

Okuma Corp.		18,000		263

Okumura Corp.		13,000		66

Olympus Corp.		29,000		1,193

Omron Corp.		25,700		681

Onward Holdings Co. Ltd.		16,000		162

Oracle Corp. Japan		4,700		215

Oriental Land Co. Ltd.		6,500		377

ORIX Corp.		11,170		2,552

Osaka Gas Co. Ltd.		243,000		854

Otsuka Corp.		2,300		226

Park24 Co. Ltd.		9,400		85

Pioneer Corp.		17,400		214

Promise Co. Ltd.		9,600		234

QP Corp.		5,000		46

Rakuten, Inc.		854		335

Resona Holdings, Inc.		709		1,218

Ricoh Co. Ltd.		83,000		1,759

Rohm Co. Ltd.		12,400		1,097

Round One Corp.		17		38

Ryohin Keikaku Co. Ltd.		2,800		161

Sanken Electric Co. Ltd.		10,000		49

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Japan - 19.6% – (continued)

Sankyo Co. Ltd.		7,500		$304

Santen Pharmaceutical Co. Ltd.		6,000		150

Sanwa Shutter Corp.		18,000		101

Sanyo Electric Co. Ltd. *		207,000		341

Sapporo Hokuyo Holdings, Inc.		37		368

Sapporo Holdings Ltd.		31,000		205

SBI Holdings, Inc.		1,163		306

Secom Co. Ltd.		25,700		1,239

Sega Sammy Holdings, Inc.		25,800		344

Seiko Epson Corp.		15,800		392

Seino Holdings Corp.		12,000		111

Sekisui Chemical Co. Ltd.		58,000		426

Sekisui House Ltd.		62,000		782

Seven & I Holdings Co. Ltd.		101,100		2,605

Sharp Corp.		123,000		2,236

Shimachu Co. Ltd.		4,900		130

Shimamura Co. Ltd.		2,800		262

Shimano, Inc.		8,700		305

Shimizu Corp.		77,000		420

Shin-Etsu Chemical Co. Ltd.		50,300		3,482

Shinko Electric Industries		6,000		133

Shinko Securities Co. Ltd.		67,000		311

Shinsei Bank Ltd.		179,000		565

Shionogi & Co. Ltd.		37,000		571

Shiseido Co. Ltd.		42,000		934

Shizuoka Bank (The) Ltd.		71,000		691

Showa Denko K.K.		139,000		527

Showa Shell Sekiyu K.K.		22,700		292

SMC Corp. of Japan		7,100		974

Softbank Corp.		89,300		1,651

Sojitz Corp.		125,600		548

Sompo Japan Insurance, Inc.		102,000		1,172

Sony Corp.		122,400		5,944

Stanley Electric Co. Ltd.		18,800		454

Sumco Corp.		14,700		600

Sumitomo Bakelite Co. Ltd.		22,000		127

Sumitomo Chemical Co. Ltd.		192,000		1,649

Sumitomo Corp.		131,100		2,538

Sumitomo Electric Industries Ltd.		91,500		1,460

Sumitomo Heavy Industries Ltd.		71,000		916

Sumitomo Metal Industries Ltd.		503,000		2,938

Sumitomo Metal Mining Co. Ltd.		68,000		1,654


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Japan - 19.6% – (continued)

Sumitomo Mitsui Financial Group, Inc.		807		$6,298

Sumitomo Realty & Development Co. Ltd.		47,000		1,656

Sumitomo Rubber Industries, Inc.		21,000		264

Sumitomo Titanium Corp.		2,100		183

Sumitomo Trust & Banking (The) Co. Ltd.		158,000		1,197

Suruga Bank (The) Ltd.		15,000		184

Suzuken Co. Ltd.		8,100		273

T&D Holdings, Inc.		23,900		1,473

Taiheiyo Cement Corp.		113,000		431

Taisei Corp.		124,000		360

Taisho Pharmaceutical Co. Ltd.		18,000		355

Taiyo Nippon Sanso Corp.		38,000		342

Taiyo Yuden Co. Ltd.		14,000		278

Takara Holdings, Inc.		19,000		112

Takashimaya Co. Ltd.		37,000		411

Takeda Pharmaceutical Co. Ltd.		103,100		7,263

Takefuji Corp.		14,570		290

Tanabe Seiyaku Co Ltd.		25,000		316

TDK Corp.		15,400		1,353

Teijin Ltd.		115,000		563

Terumo Corp.		20,900		1,057

THK Co. Ltd.		15,800		334

TIS, Inc.		4,100		80

Tobu Railway Co. Ltd.		99,000		466

Toho Co. Ltd. of Tokyo		14,800		293

Tohoku Electric Power Co., Inc.		53,200		1,139

Tokai Rika Co. Ltd.		3,000		84

Tokuyama Corp.		27,000		410

Tokyo Broadcasting System, Inc.		2,000		56

Tokyo Electric Power Co., Inc.		149,000		3,768

Tokyo Electron Ltd.		21,300		1,352

Tokyo Gas Co. Ltd.		275,000		1,283

Tokyo Seimitsu Co. Ltd.		4,600		96

Tokyo Steel Manufacturing Co. Ltd.		13,700		213

Tokyo Tatemono Co. Ltd.		35,000		447

Tokyu Corp.		138,000		902

Tokyu Land Corp.		56,000		563

TonenGeneral Sekiyu K.K.		37,000		373

Toppan Printing Co. Ltd.		72,000		743

Toray Industries, Inc.		163,000		1,296

Toshiba Corp.		375,000		3,508

Tosoh Corp.		61,000		396

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Japan - 19.6% – (continued)

Toto Ltd.		37,000		$269

Toyo Seikan Kaisha Ltd.		20,000		378

Toyo Suisan Kaisha Ltd.		9,000		170

Toyobo Co. Ltd.		67,000		157

Toyoda Gosei Co. Ltd.		9,100		330

Toyota Boshoku Corp.		2,700		91

Toyota Industries Corp.		22,000		950

Toyota Motor Corp.		330,500		19,538

Toyota Tsusho Corp.		27,200		723

Trend Micro, Inc.		13,000		563

Ube Industries Ltd. of Japan		125,000		444

Uni-Charm Corp.		5,400		332

UNY Co. Ltd.		24,000		209

Ushio, Inc.		14,400		262

USS Co. Ltd.		2,950		194

Wacoal Holdings Corp.		9,000		111

West Japan Railway Co.		213		1,018

Yahoo! Japan Corp.		1,899		720

Yakult Honsha Co. Ltd.		14,200		324

Yamada Denki Co. Ltd.		10,670		1,058

Yamaha Corp.		22,100		496

Yamaha Motor Co. Ltd.		24,000		613

Yamato Holdings Co. Ltd.		49,000		736

Yamazaki Baking Co. Ltd.		5,000		38

Yaskawa Electric Corp.		24,000		299

Yokogawa Electric Corp.		26,800		327

Zeon Corp.		24,000		237



				357,967



Luxembourg - 0.5%

ArcelorMittal		111,009		8,769

Oriflame Cosmetics S.A. SDR		4,100		249



				9,018



Netherlands - 5.3%

ABN AMRO Holding N.V.		221,394		11,675

Aegon N.V.		180,348		3,457

Akzo Nobel N.V.		33,924		2,798

ASML Holding N.V. *		58,004		1,925

Corio N.V.		4,947		423

Corporate Express		10,710		117

European Aeronautic Defence & Space Co. N.V.		40,646		1,251

Fugro N.V. - CVA		6,745		548

Hagemeyer N.V.		58,020		268


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Netherlands - 5.3% – (continued)

Heineken N.V.		29,673		$1,949

ING Groep N.V. - CVA		230,325		10,233

James Hardie Industries N.V.		52,064		330

Koninklijke Ahold N.V. *		157,906		2,389

Koninklijke DSM N.V.		16,457		889

Koninklijke Philips Electronics N.V.		140,183		6,332

OCE N.V.		6,940		146

Qiagen N.V. *		18,823		364

Randstad Holdings N.V.		6,202		336

Reed Elsevier N.V.		89,122		1,694

Royal Dutch Shell PLC, Class A (London Exchange)		446,860		18,435

Royal Dutch Shell PLC, Class B (London Exchange)		335,244		13,796

Royal KPN N.V.		237,603		4,127

Royal Numico N.V.		21,043		1,634

SBM Offshore N.V.		16,070		632

TNT N.V.		50,055		2,100

Unilever N.V. CVA		207,124		6,400

Vedior N.V. - CVA		21,492		473

Wereldhave N.V.		1,852		223

Wolters Kluwer N.V.		35,826		1,064



				96,008



New Zealand - 0.1%

Auckland International Airport Ltd.		121,614		289

Contact Energy Ltd.		36,081		251

Fisher & Paykel Appliances Holdings Ltd.		29,635		80

Fisher & Paykel Healthcare Corp.		73,163		183

Fletcher Building Ltd.		61,098		588

Kiwi Income Property Trust		75,449		83

Sky City Entertainment Group Ltd.		47,448		188

Sky Network Television Ltd.		22,190		97

Telecom Corp. of New Zealand Ltd.		227,316		771

Vector Ltd.		24,079		45



				2,575



Norway - 1.0%

Aker Kvaerner ASA		20,250		645

DnB NOR ASA		94,000		1,442

Marine Harvest *		307,850		392

Norsk Hydro ASA		88,150		3,834

Norske Skogindustrier ASA		18,771		201

Orkla ASA		104,400		1,865

Petroleum Geo-Services ASA *		21,450		619

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Norway - 1.0% – (continued)

ProSafe ASA		24,150		$431

Renewable Energy Corp. A/S *		21,700		1,000

Schibsted ASA		3,850		203

Statoil ASA		79,800		2,720

Storebrand ASA		28,800		448

Tandberg ASA		12,050		290

Telenor ASA *		106,450		2,132

TGS Nopec Geophysical Co ASA *		14,000		287

Tomra Systems ASA		22,050		159

Yara International ASA		22,950		726



				17,394



Portugal - 0.3%

Banco BPI S.A. (Registered)		31,336		264

Banco Comercial Portugues S.A. (Registered)		266,029		1,105

Banco Espirito Santo S.A. (Registered)		28,066		637

Brisa-Auto Estradas de Portugal S.A.		37,740		495

Cimpor Cimentos de Portugal S.A.		23,050		191

Energias de Portugal S.A.		245,013		1,434

Jeronimo Martins SGPS S.A.		11,165		69

Portugal Telecom, SGPS, S.A. (Registered)		100,415		1,409

PT Multimedia Servicos de Telecomunicacoes e Multimedia SGPS S.A.		9,618		143

Sonae Industria SGPS S.A. *		5,252		59

Sonae SGPS S.A.		112,786		293



				6,099



Singapore - 1.1%

Ascendas Real Estate Investment Trust		135,200		248

CapitaCommercial Trust		116,000		222

CapitaLand Ltd.		188,000		1,031

CapitaMall Trust		152,000		399

Chartered Semiconductor Manufacturing Ltd. *		115,000		84

City Developments Ltd.		68,000		741

ComfortDelgro Corp. Ltd.		251,000		328

Cosco Corp. Singapore Ltd.		121,000		485

DBS Group Holdings Ltd.		144,000		2,093

Fraser and Neave Ltd.		110,000		422

Jardine Cycle & Carriage Ltd.		12,283		153

Keppel Corp. Ltd.		137,000		1,328

Keppel Land Ltd.		46,000		257

Neptune Orient Lines Ltd.		53,000		189

Olam International Ltd.		66,000		140

Oversea-Chinese Banking Corp.		306,400		1,835


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Singapore - 1.1% – (continued)

Parkway Holdings Ltd.		70,050		$200

SembCorp Industries Ltd.		108,600		472

SembCorp Marine Ltd.		113,400		351

Singapore Airlines Ltd.		69,066		865

Singapore Exchange Ltd.		100,000		868

Singapore Land Ltd.		6,000		41

Singapore Post Ltd.		138,000		113

Singapore Press Holdings Ltd.		186,000		541

Singapore Technologies Engineering Ltd.		176,000		462

Singapore Telecommunications Ltd.		995,600		2,694

Suntec Real Estate Investment Trust		113,000		148

United Overseas Bank Ltd.		149,000		2,216

UOL Group Ltd.		66,700		233

Venture Corp. Ltd.		29,000		322

Wing Tai Holdings Ltd.		12,000		31



				19,512



Spain - 3.7%

Abertis Infraestructuras S.A.		29,866		935

Acciona S.A.		3,516		957

Acerinox S.A.		20,688		623

ACS Actividades Cons y Serv		26,285		1,452

Altadis S.A.		31,413		2,212

Antena 3 de Television S.A. *		8,862		164

Banco Bilbao Vizcaya Argentaria S.A.		457,895		10,744

Banco Popular Espanol S.A.		105,601		1,816

Banco Santander Central Hispano S.A.		764,283		14,868

Cintra Concesiones de Infraestructuras de Transporte S.A.		24,295		370

Corp. Mapfre S.A.		64,082		290

Ebro Puleva S.A.		6,195		127

Fomento de Construcciones y Contratas S.A.		5,026		407

Gamesa Corp. Tecnologica S.A.		20,916		855

Gas Natural SDG S.A.		14,832		838

Gestevision Telecinco S.A.		12,913		339

Grupo Ferrovial S.A.		7,825		663

Iberdrola S.A.		114,888		6,756

Iberia (Lineas Aereas de Espana)		39,853		195

Inditex S.A.		26,979		1,820

Indra Sistemas S.A.		14,331		388

Promotora de Informaciones S.A. (Prisa)		6,248		123

Repsol YPF S.A.		98,153		3,509

Sacyr Vallehermoso S.A.		11,180		392

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Spain - 3.7% – (continued)

Sociedad General de Aguas de Barcelona S.A., Class A		3,687		$140

Sogecable S.A. *		5,788		210

Telefonica S.A.		546,159		15,301

Union Fenosa S.A.		13,029		771

Zardoya Otis S.A.		14,703		457

Zeltia S.A.		13,127		143



				67,865



Sweden - 2.5%

Alfa Laval AB		10,600		682

Assa Abloy AB, Class B		38,200		794

Atlas Copco AB, Class A		82,200		1,424

Atlas Copco AB, Class B		52,900		846

Axfood AB		1,900		64

Billerud AB		1,200		16

Boliden AB		36,300		774

Castellum AB		19,200		239

D Carnegie AB		5,800		122

Electrolux AB, Class B		31,800		674

Elekta AB, Class B		9,400		153

Eniro AB		23,700		289

Fabege AB		18,600		222

Getinge AB, Class B		22,200		538

Hennes & Mauritz AB, Class B		58,350		3,703

Hoganas AB, Class B		2,700		72

Holmen AB, Class B		5,800		223

Husqvarna AB, Class B		35,700		462

Kungsleden AB		14,300		184

Lundin Petroleum AB *		27,600		318

Modern Times Group AB, Class B		6,400		414

Nobia AB		13,200		127

Nordea Bank AB		251,700		4,391

OMX AB		10,400		451

Sandvik AB		117,327		2,520

SAS AB *		6,500		117

Scania AB, Class B		45,400		1,107

Securitas AB, Class B		40,433		534

Securitas Direct AB, Class B *		31,900		94

Securitas Systems AB, Class B		31,900		118

Skandinaviska Enskilda Banken AB, Class A		57,123		1,859

Skanska AB, Class B		47,700		947

SKF AB, B Shares		51,400		1,084


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Sweden - 2.5% – (continued)

Ssab Svenskt Stal AB, Class A		23,375		$866

Ssab Svenskt Stal AB, Class B		10,312		352

Svenska Cellulosa AB, Class B		70,700		1,321

Svenska Handelsbanken AB, Class A		61,835		1,921

Swedish Match AB		34,700		722

Tele2 AB, Class B		37,300		807

Telefonaktiebolaget LM Ericsson, Class B		1,816,600		7,281

TeliaSonera AB		277,225		2,508

Trelleborg AB, Class B		4,700		111

Volvo AB, Class A		58,100		1,011

Volvo AB, Class B		134,400		2,343

Wihlborgs Fastigheter AB		1,440		27



				44,832



Switzerland - 6.6%

ABB Ltd. (Registered)		256,589		6,763

Adecco S.A. (Registered)		16,682		987

Ciba Specialty Chemicals A.G. (Registered)		8,979		458

Clariant A.G. (Registered) *		24,793		305

Compagnie Financiere Richemont A.G., Class A (Bearer)		64,062		4,249

Credit Suisse Group (Registered)		133,960		8,901

Geberit A.G. (Registered)		5,139		673

Givaudan S.A. (Registered)		825		763

Holcim Ltd. (Registered)		24,791		2,741

Kudelski S.A. (Bearer)		2,913		82

Kuehne & Nagel International A.G. (Registered)		6,326		623

Kuoni Reisen Holding A.G. (Registered)		264		125

Logitech International S.A. (Registered) *		19,582		583

Lonza Group A.G. (Registered)		5,040		550

Nestle S.A. (Registered)		48,921		21,994

Nobel Biocare Holding A.G. (Bearer)		2,832		767

Novartis A.G. (Registered)		283,406		15,653

OC Oerlikon Corp. A.G. (Registered) *		668		245

PSP Swiss Property A.G. (Registered) *		4,573		243

Rieter Holding A.G. (Registered)		456		247

Roche Holding A.G. (Genusschein)		85,835		15,576

Schindler Holding A.G.		5,559		351

SGS S.A. (Registered)		570		652

Sonova Holding A.G.		5,967		599

STMicroelectronics N.V.		83,604		1,407

Straumann Holding A.G. (Registered)		697		196

Sulzer A.G. (Registered)		366		525

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
INTERNATIONAL EQUITY INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

Switzerland - 6.6% – (continued)

Swatch Group A.G. (Bearer)		3,955		$1,299

Swatch Group A.G. (Registered)		4,910		315

Swiss Life Holding (Registered) *		4,045		1,050

Swiss Reinsurance (Registered)		43,859		3,910

Swisscom A.G. (Registered)		2,878		1,095

Syngenta A.G. (Registered)		12,864		2,776

Synthes, Inc.		7,626		854

UBS A.G. (Registered)		244,221		13,142

Xstrata PLC		76,403		5,069

Zurich Financial Services A.G. (Registered)		17,799		5,344



				121,112



United Kingdom - 19.2%

3i Group PLC		45,996		938

Acergy S.A.		24,200		719

Aegis Group PLC		90,919		232

Aggreko PLC		28,042		332

Amec PLC		39,479		598

Anglo American PLC		164,093		11,039

ARM Holdings PLC		162,887		513

Arriva PLC		23,785		376

AstraZeneca PLC		183,044		9,169

Aviva PLC		320,205		4,820

BAE Systems PLC		419,097		4,230

Balfour Beatty PLC		49,298		478

Barclays PLC		794,242		9,674

Barratt Developments PLC		38,632		591

BBA Aviation PLC		42,547		199

Bellway PLC		12,326		260

Berkeley Group Holdings PLC *		10,745		315

BG Group PLC		414,174		7,167

BHP Billiton PLC		285,444		10,217

Biffa PLC		34,839		158

Bovis Homes Group PLC		11,970		160

BP PLC		2,344,426		27,212

British Airways PLC *		72,218		566

British American Tobacco PLC		189,223		6,781

British Energy Group PLC		120,453		1,317

British Land Co. PLC		64,849		1,555

British Sky Broadcasting PLC		143,778		2,044

Brixton PLC		29,855		221

BT Group PLC		1,004,219		6,306

Bunzl PLC		37,109		532


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

United Kingdom - 19.2% – (continued)

Burberry Group PLC		50,491		$678

Cable & Wireless PLC		290,788		1,094

Cadbury Schweppes PLC		253,328		2,938

Capita Group PLC		73,140		1,083

Carnival PLC		21,761		1,039

Carphone Warehouse Group PLC		49,180		351

Cattles PLC		45,207		323

Centrica PLC		446,629		3,476

Charter PLC *		20,477		495

Close Brothers Group PLC		13,261		221

Cobham PLC		130,983		520

Compass Group PLC		257,915		1,593

Cookson Group PLC		21,167		330

CSR PLC *		12,382		163

Daily Mail & General Trust, Class A		33,322		429

Davis Service Group PLC		17,643		193

De La Rue PLC		15,138		226

Diageo PLC		330,423		7,258

DSG International PLC		228,873		632

Electrocomponents PLC		48,718		254

Emap PLC		23,538		423

Enterprise Inns PLC		68,200		826

FirstGroup PLC		55,405		780

FKI PLC		53,448		99

Friends Provident PLC		210,716		741

G4S PLC		143,853		594

Galiform PLC *		56,332		127

GKN PLC		83,765		606

GlaxoSmithKline PLC		697,981		18,516

Great Portland Estates PLC		19,162		234

Hammerson PLC		33,908		813

Hays PLC		174,773		475

HBOS PLC		454,973		8,510

Home Retail Group		102,601		782

HSBC Holdings PLC		1,436,762		26,580

ICAP PLC		62,666		675

IMI PLC		36,858		403

Imperial Chemical Industries PLC		148,264		1,977

Imperial Tobacco Group PLC		82,983		3,804

Inchcape PLC		49,530		426

Intercontinental Hotels Group PLC		39,941		793

International Power PLC		197,703		1,825

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

United Kingdom - 19.2% – (continued)

Intertek Group PLC		18,406		$357

Invensys PLC *		94,997		603

Invesco PLC		107,193		1,450

Investec PLC		44,429		465

ITV PLC		460,082		965

Johnson Matthey PLC		24,918		850

Kelda Group PLC		31,351		553

Kesa Electricals PLC		62,459		352

Kingfisher PLC		309,856		1,133

Ladbrokes PLC		72,551		641

Land Securities Group PLC		60,225		2,072

Legal & General Group PLC		779,784		2,131

Liberty International PLC		30,561		713

Lloyds TSB Group PLC		683,582		7,585

LogicaCMG PLC		179,179		554

London Stock Exchange Group PLC		17,883		601

Man Group PLC		218,183		2,470

Marks & Spencer Group PLC		210,775		2,653

Meggitt PLC		80,662		523

Michael Page International PLC		38,465		325

Michells & Butlers PLC		46,827		585

Misys PLC		50,315		227

Mondi PLC		43,030		409

National Express Group PLC		15,984		404

National Grid PLC		327,590		5,253

Next PLC		28,104		1,129

Old Mutual PLC		622,525		2,041

PartyGaming PLC *		84,282		47

Pearson PLC		95,493		1,479

Persimmon PLC		34,014		671

Premier Farnell PLC		35,671		115

Prudential PLC		299,888		4,609

Punch Taverns PLC		31,659		638

Rank Group PLC		49,456		164

Reckitt Benckiser PLC		74,698		4,388

Reed Elsevier PLC		152,910		1,933


Rentokil Initial PLC		246,838		843

Resolution PLC		93,501		1,305

Reuters Group PLC		160,542		2,111

Rexam PLC		76,908		868

Rio Tinto PLC		122,241		10,571

Rolls-Royce Group PLC *		238,921		2,553


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED

United Kingdom - 19.2% – (continued)

Royal & Sun Alliance Insurance Group PLC		368,834		$1,166

Royal Bank of Scotland Group PLC		1,154,439		12,396

SABMiller PLC		109,514		3,118

Sage Group PLC		162,629		829

Sainsbury (J.) PLC		190,169		2,246

Schroders PLC		14,039		398

Scottish & Newcastle PLC		94,146		1,177

Scottish & Southern Energy PLC		105,718		3,267

Segro PLC		49,939		510

Serco Group PLC		57,233		486

Severn Trent PLC		26,884		775

Signet Group PLC		197,982		339

Smith & Nephew PLC		118,040		1,443

Smiths Group PLC		44,794		979

SSL International PLC		17,784		155

Stagecoach Group PLC		55,994		260

Standard Life PLC		249,767		1,474

Stolt-Nielsen S.A.		3,100		92

Tate & Lyle PLC		54,673		450

Taylor Woodrow PLC		143,896		812

Tesco PLC		970,602		8,720

Thomas Cook Group PLC *		50,760		289

Tomkins PLC		96,650		449

Travis Perkins PLC		13,997		442

Trinity Mirror PLC		30,240		255

TUI Travel PLC *		61,355		316

Tullet Prebon PLC		19,798		175

Unilever PLC		158,686		5,014

United Business Media PLC		28,224		400

United Utilities PLC		110,341		1,580

Vodafone Group PLC		6,451,236		23,289

Whitbread PLC		22,884		759

William Hill PLC		40,130		528

Wolseley PLC		84,354		1,426

WPP Group PLC		149,559		2,025

Yell Group PLC		92,705		813



				350,215



Total Common Stocks



(Cost $1,290,600)				1,724,498

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 EQUITY INDEX FUNDS

equity index funds

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
PREFERRED STOCKS - 0.3%

Germany - 0.3%

Henkel KGaA		22,283		$1,148

Porsche A.G.		1,038		2,207

ProSieben SAT.1 Media A.G.		10,433		328

RWE A.G.		4,062		458

Volkswagen A.G.		13,140		1,810



				5,951



Italy - 0.0%

Unipol S.p.A.		109,017		342



Total Preferred Stocks



(Cost $3,312)				6,293


RIGHTS - 0.1%

Capitalia S.p.A.		198,217		-

Fortis		152,021		807

Omega Pharmacy NPV		2,138		-

Raiffeisen International Bank Holding A.G.		4,580		-

Wienerberger A.G.		8,280		-



Total Rights



(Cost $ -)				807


	NUMBER		VALUE
	OF WARRANTS		(000S)
WARRANTS - 0.0%

Dowa Mining Co. Ltd., Exp 1/29/10, Strike 1.00 Yen*		30,000		-



Total Warrants



(Cost $ -)				-



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 3.3%
ABN Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$60,671		60,671




Total Short-Term Investment


(Cost $60,671)				60,671





Total Investments - 98.3%



(Cost $1,354,583)				1,792,269

Other Assets less Liabilities - 1.7%				30,845


NET ASSETS - 100.0%				$1,823,114

Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the International Equity Index Fund had open futures contracts as follows:

NOTIONAL

UNREALIZED

NUMBER OF

AMOUNT

CONTRACT

GAIN

TYPE

CONTRACTS

(000S)

POSITION

EXP.

(000S)

DJ Euro Stoxx 50

654

$41,172

Long

12/07

$1,611

FTSE 100 Index

147

19,601

Long

12/07

202

Hang Sang Index

2,623

Long

10/07

SPI 200

6,016

Long

12/07

245

TOPIX Index

128

18,125

Long

12/07

1,039

Total

$3,145

At September 30, 2007, the International Equity Index Fund’s investments were denominated in the following currencies:


	% OF LONG-TERM

CONCENTRATION BY CURRENCY	INVESTMENTS

Swiss Franc		35.7	%

United States Dollar		22.4

Denmark Krone		20.7

Singapore Dollar		6.6

Norwegian Kroner		6.6

All other currencies less than 5%		8.0



Total		100.0	%

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)

At September 30, 2007, the industry sectors for the International Equity Index Fund were:



	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS

Consumer Discretionary		11.2	%

Consumer Staples		8.0

Energy		7.5

Financials		27.7

Health Care		6.4

Industrials		12.2

Information Technology		5.9

Materials		10.0

Telecommunication Services		5.9

Utilities		5.2



Total		100.0	%

At September 30, 2007, the International Equity Index Fund had outstanding forward foreign currency exchange contracts as follows:

AMOUNT

CONTRACTS

(LOCAL

EXCHANGE

(LOCAL

UNREALIZED

TO DELIVER

CURRENCY)

FOR

CURRENCY)

SETTLEMENT

GAIN (LOSS)

CURRENCY

(000S)

CURRENCY

(000S)

DATE

(000S)

HongKong

U.S. Dollar

600

Dollar

4,683

9/19/07

British

Pound

399

U.S. Dollar

800

12/19/07

(15

)

Euro

610

U.S. Dollar

860

12/19/07

(12

)

Japanese
Yen

62,922

U.S. Dollar

550

12/19/07

)

Australian

U.S. Dollar

1,515

Dollar

1,799

12/19/07

British

U.S. Dollar

4,584

Pound

2,288

12/19/07

British

U.S. Dollar

2,000

Pound

1,002

12/19/07

British

U.S. Dollar

2,710

Pound

1,348

12/19/07

U.S. Dollar

25,520

Euro

18,382

12/19/07

752

U.S. Dollar

2,600

Euro

1,867

12/19/07

U.S. Dollar

3,250

Euro

2,305

12/19/07

HongKong

U.S. Dollar

1,074

Dollar

8,350

12/19/07

HongKong

U.S. Dollar

200

Dollar

1,554

12/19/07

Japanese

U.S. Dollar

14,270

Yen

1,624,511

12/19/07

AMOUNT

CONTRACTS

(LOCAL

EXCHANGE

(LOCAL

UNREALIZED

TO DELIVER

CURRENCY)

FOR

CURRENCY)

SETTLEMENT

GAIN (LOSS)

CURRENCY

(000S)

CURRENCY

(000S)

DATE

(000S)

Japanese

U.S. Dollar

100

Yen

11,368

12/19/07

Japanese

U.S. Dollar

800

Yen

91,863

12/19/07

Japanese

U.S. Dollar

1,900

Yen

216,297

12/19/07

Total

1,134

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 EQUITY INDEX FUNDS

equity index funds


SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5%

Advertising - 0.3%

Catalina Marketing Corp. *		11,500		$372

Getty Images, Inc. *		14,500		404

Harte-Hanks, Inc.		13,300		262



				1,038



Aerospace/Defense - 0.6%

Alliant Techsystems, Inc. *		10,289		1,125

DRS Technologies, Inc.		12,800		705

Sequa Corp., Class A *		2,000		332



				2,162



Agriculture - 0.1%

Universal Corp. of Virginia		8,100		397



Airlines - 0.3%

Airtran Holdings, Inc. *		27,100		267

Alaska Air Group, Inc. *		12,800		295

JetBlue Airways Corp. *		55,650		513



				1,075



Apparel - 0.7%

Hanesbrands, Inc. *		30,200		847

Phillips-Van Heusen Corp.		16,800		882

Timberland (The) Co., Class A *		15,200		288

Warnaco Group (The), Inc. *		14,400		563



				2,580



Auto Manufacturers - 0.4%

Oshkosh Truck Corp.		22,700		1,407



Auto Parts & Equipment - 0.8%

ArvinMeritor, Inc.		22,500		379

BorgWarner, Inc.		17,900		1,638

Lear Corp. *		23,300		748

Modine Manufacturing Co.		8,800		234



				2,999



Banks - 2.5%

Associated Banc-Corp		40,182		1,191

Bank of Hawaii Corp.		13,900		735

Cathay General Bancorp		14,200		457

City National Corp. of California		12,300		855

Colonial BancGroup (The), Inc.		44,900		971

Cullen/Frost Bankers, Inc.		18,000		902

First Community Bancorp, Inc. of California		8,900		487

FirstMerit Corp.		25,600		506

SVB Financial Group *		11,300		535

TCF Financial Corp.		34,200		895


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Banks - 2.5% – (continued)

Webster Financial Corp.		15,872		$668

Westamerica Bancorporation		10,300		513

Wilmington Trust Corp.		19,300		751



				9,466



Beverages - 0.4%

Hansen Natural Corp. *		18,600		1,054

PepsiAmericas, Inc.		19,400		630



				1,684



Biotechnology - 1.7%

Affymetrix, Inc. *		22,000		558

Charles River Laboratories International, Inc. *		20,764		1,166

Invitrogen Corp. *		14,700		1,201

Millennium Pharmaceuticals, Inc. *		95,400		968

PDL BioPharma, Inc. *		36,516		789

Vertex Pharmaceuticals, Inc. *		40,600		1,560



				6,242



Building Materials - 0.7%

Florida Rock Industries, Inc.		15,100		943

Martin Marietta Materials, Inc.		13,086		1,748



				2,691



Chemicals - 3.8%

Airgas, Inc.		24,600		1,270

Albemarle Corp.		25,200		1,114

Cabot Corp.		21,400		760

Chemtura Corp.		69,100		614

Cytec Industries, Inc.		13,500		923

Ferro Corp.		11,900		238

FMC Corp.		24,200		1,259

Lubrizol Corp.		21,700		1,412

Lyondell Chemical Co.		77,200		3,578

Minerals Technologies, Inc.		5,400		362

Olin Corp.		23,400		524

RPM International, Inc.		35,400		848

Sensient Technologies Corp.		13,100		378

Valspar Corp.		29,400		800



				14,080



Coal - 0.4%

Arch Coal, Inc.		42,600		1,437



Commercial Services - 4.5%

Alliance Data Systems Corp. *		23,600		1,828

Avis Budget Group, Inc. *		31,820		728

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Commercial Services - 4.5% – (continued)

Career Education Corp. *		29,800		$834

ChoicePoint, Inc. *		22,800		864

Corinthian Colleges, Inc. *		27,000		429

Corporate Executive Board Co.		11,500		854

Deluxe Corp.		16,000		589

DeVry, Inc.		19,200		711

Gartner, Inc. *		20,100		492

ITT Educational Services, Inc. *		9,500		1,156

Kelly Services, Inc., Class A		5,200		103

Korn/Ferry International *		13,200		218

Manpower, Inc.		26,200		1,686

MPS Group, Inc. *		28,300		315

Navigant Consulting, Inc. *		14,200		180

Pharmaceutical Product Development, Inc.		32,500		1,152

Quanta Services, Inc. *		51,600		1,365

Rent-A-Center, Inc. *		22,600		410

Rollins, Inc.		7,900		211

Sotheby’s		19,800		946

Strayer Education, Inc.		4,600		776

TravelCenters of America LLC - Fractional Share *		80,000		-

United Rentals, Inc. *		21,600		695

Valassis Communications, Inc. *		16,500		147



				16,689



Computers - 3.3%

Cadence Design Systems, Inc. *		86,400		1,917

Ceridian Corp. *		43,800		1,522

Diebold, Inc.		20,000		908

DST Systems, Inc. *		17,020		1,460

Henry (Jack) & Associates, Inc.		25,600		662

Imation Corp.		12,300		302

Mentor Graphics Corp. *		26,300		397

NCR Corp. *		55,300		1,313

Palm, Inc. *		32,200		524

SRA International, Inc., Class A *		11,800		331

Synopsys, Inc. *		45,700		1,238

Western Digital Corp. *		66,300		1,679



				12,253



Cosmetics/Personal Care - 0.2%

Alberto-Culver Co.		23,900		593



Distribution/Wholesale - 1.3%

CDW Corp. *		18,600		1,622

Fastenal Co.		39,000		1,771


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% - CONTINUED

Distribution/Wholesale - 1.3% – (continued)

Ingram Micro, Inc., Class A *		43,800		$859

Tech Data Corp. *		17,400		698



				4,950



Diversified Financial Services - 1.8%

AmeriCredit Corp. *		34,200		601

Eaton Vance Corp.		39,300		1,571

IndyMac Bancorp, Inc.		22,900		541

Jefferies Group, Inc.		33,300		927

Nuveen Investments, Inc., Class A		23,900		1,480

Raymond James Financial, Inc.		28,900		949

Waddell & Reed Financial, Inc., Class A		27,200		735



				6,804



Electric - 5.1%

Alliant Energy Corp.		34,400		1,318

Aquila, Inc. *		103,200		414

Black Hills Corp.		11,700		480

DPL, Inc.		36,600		961

Energy East Corp.		50,100		1,355

Great Plains Energy, Inc.		24,600		709

Hawaiian Electric Industries, Inc.		23,100		501

Idacorp, Inc.		14,400		471

MDU Resources Group, Inc.		53,550		1,491

Northeast Utilities		45,700		1,306

NSTAR		30,500		1,062

OGE Energy Corp.		28,800		953

Pepco Holdings, Inc.		61,700		1,671

PNM Resources, Inc.		25,185		586

Puget Energy, Inc.		32,800		803

SCANA Corp.		36,500		1,414

Sierra Pacific Resources		65,200		1,025

Westar Energy, Inc.		30,200		742

Wisconsin Energy Corp.		37,100		1,671



				18,933



Electrical Components & Equipment - 1.2%

Ametek, Inc.		31,350		1,355

Energizer Holdings, Inc. *		17,800		1,973

Hubbell, Inc., Class B		18,600		1,063



				4,391



Electronics - 2.6%

Amphenol Corp., Class A		53,448		2,125

Arrow Electronics, Inc. *		38,200		1,624

Avnet, Inc. *		45,200		1,802

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 EQUITY INDEX FUNDS

equity index funds


SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Electronics - 2.6% – (continued)

Gentex Corp.		45,200		$969

Kemet Corp. *		27,400		202

National Instruments Corp.		16,000		549

Thomas & Betts Corp. *		16,100		944

Varian, Inc. *		9,100		579

Vishay Intertechnology, Inc. *		55,100		718



				9,512



Engineering & Construction - 1.5%

Dycom Industries, Inc. *		12,400		380

Granite Construction, Inc.		11,300		599

Jacobs Engineering Group, Inc. *		36,300		2,743

KBR, Inc. *		51,300		1,989



				5,711



Entertainment - 0.4%

International Speedway Corp., Class A		10,000		459

Macrovision Corp. *		17,100		421

Scientific Games Corp., Class A *		20,000		752



				1,632



Environmental Control - 1.0%

Mine Safety Appliances Co.		8,400		396

Republic Services, Inc.		51,350		1,680

Stericycle, Inc. *		26,900		1,537



				3,613



Food - 0.9%

Hormel Foods Corp.		22,800		816

JM Smucker (The) Co.		17,600		940

Ruddick Corp.		12,100		406

Smithfield Foods, Inc. *		36,500		1,150

Tootsie Roll Industries, Inc.		6,883		182



				3,494



Forest Products & Paper - 0.7%

Bowater, Inc.		17,300		258

Louisiana-Pacific Corp.		32,400		550

Potlatch Corp.		11,028		497

Rayonier, Inc.		24,450		1,174



				2,479



Gas - 0.5%

AGL Resources, Inc.		22,000		872

Vectren Corp.		21,000		573

WGL Holdings, Inc.		15,400		522



				1,967


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Hand/Machine Tools - 0.5%

Kennametal, Inc.		12,500		$1,050

Lincoln Electric Holdings, Inc.		12,600		978



				2,028



Healthcare - Products - 4.6%

Advanced Medical Optics, Inc. *		18,100		554

Beckman Coulter, Inc.		19,200		1,416

Cytyc Corp. *		36,700		1,749

Dentsply International, Inc.		47,400		1,974

Edwards Lifesciences Corp. *		16,600		818

Gen-Probe, Inc. *		16,500		1,099

Henry Schein, Inc. *		27,900		1,697

Hillenbrand Industries, Inc.		18,300		1,007

Intuitive Surgical, Inc. *		11,500		2,645

Kyphon, Inc. *		14,300		1,001

Resmed, Inc. *		23,800		1,020

STERIS Corp.		18,400		503

Techne Corp. *		11,200		706

Ventana Medical Systems, Inc. *		9,300		799



				16,988



Healthcare - Services - 2.6%

Apria Healthcare Group, Inc. *		14,300		372

Community Health Systems, Inc. *		29,100		915

Covance, Inc. *		19,100		1,488

Health Management Associates, Inc., Class A		73,600		511

Health Net, Inc. *		34,800		1,881

Kindred Healthcare, Inc. *		10,100		181

LifePoint Hospitals, Inc. *		18,100		543

Lincare Holdings, Inc. *		27,200		997

Psychiatric Solutions, Inc. *		17,200		676

Universal Health Services, Inc., Class B		16,889		919

WellCare Health Plans, Inc. *		12,600		1,328



				9,811



Home Builders - 0.8%

Hovnanian Enterprises, Inc., Class A *		11,700		130

MDC Holdings, Inc.		10,800		442

NVR, Inc. *		1,700		800

Ryland Group, Inc.		13,500		289

Thor Industries, Inc.		10,900		490

Toll Brothers, Inc. *		37,600		752



				2,903



Home Furnishings - 0.0%

Furniture Brands International, Inc.		15,500		157

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Household Products/Wares - 0.8%

American Greetings Corp., Class A		18,000		$475

Blyth, Inc.		6,500		133

Church & Dwight, Inc.		20,800		979

Scotts Miracle-Gro (The) Co., Class A		14,300		611

Tupperware Brands Corp.		19,700		620



				2,818



Insurance - 4.5%

American Financial Group, Inc. of Ohio		22,800		650

Brown & Brown, Inc.		32,900		865

Commerce Group, Inc.		15,000		442

Everest Re Group Ltd.		19,800		2,183

Fidelity National Financial, Inc., Class A		67,577		1,181

First American Corp.		30,321		1,110

Gallagher (Arthur J.) & Co.		31,200		904

Hanover Insurance Group (The), Inc.		14,828		655

HCC Insurance Holdings, Inc.		34,800		997

Horace Mann Educators Corp.		10,900		215

Mercury General Corp.		9,600		518

Old Republic International Corp.		71,700		1,343

PMI Group (The), Inc.		26,800		876

Protective Life Corp.		22,000		934

Radian Group, Inc.		24,600		573

StanCorp Financial Group, Inc.		16,400		812

Unitrin, Inc.		15,100		749

W.R. Berkley Corp.		52,575		1,558



				16,565



Internet - 1.6%

Avocent Corp. *		15,000		437

Checkfree Corp. *		27,600		1,284

Digital River, Inc. *		12,500		559

F5 Networks, Inc. *		25,600		952

McAfee, Inc. *		49,900		1,740

NetFlix, Inc. *		16,600		344

ValueClick, Inc. *		29,100		654



				5,970



Iron/Steel - 1.3%

Carpenter Technology Corp.		8,200		1,066

Cleveland-Cliffs, Inc.		12,800		1,126

Reliance Steel & Aluminum Co.		19,900		1,125

Steel Dynamics, Inc.		29,600		1,383



				4,700


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Leisure Time - 0.2%

Callaway Golf Co.		19,200		$307

Life Time Fitness, Inc. *		9,700		595



				902



Lodging - 0.2%

Boyd Gaming Corp.		17,400		746



Machinery - Construction & Mining - 0.5%

Joy Global, Inc.		33,750		1,717



Machinery - Diversified - 1.5%

AGCO Corp. *		27,900		1,416

Flowserve Corp.		17,400		1,326

Graco, Inc.		21,100		825

IDEX Corp.		24,100		877

Nordson Corp.		10,500		527

Zebra Technologies Corp., Class A *		22,000		803



				5,774



Media - 0.9%

Belo Corp., Class A		28,200		489

Entercom Communications Corp., Class A		8,000		155

Lee Enterprises, Inc.		12,700		198

Media General, Inc., Class A		7,900		217

Scholastic Corp. *		8,400		293

Washington Post (The), Co., Class B		1,740		1,397

Wiley (John) & Sons, Inc., Class A		12,800		575



				3,324



Metal Fabrication/Hardware - 0.7%

Commercial Metals Co.		35,800		1,133

Timken (The) Co.		27,500		1,021

Worthington Industries, Inc.		22,100		521



				2,675



Miscellaneous Manufacturing - 3.2%

Brink’s (The) Co.		15,000		838

Carlisle Cos., Inc.		18,700		909

Crane Co.		14,700		705

Donaldson Co., Inc.		20,900		873

Federal Signal Corp.		12,600		193

Harsco Corp.		24,800		1,470

Lancaster Colony Corp.		6,100		233

Matthews International Corp., Class A		9,000		394

Pentair, Inc.		30,800		1,022

Roper Industries, Inc.		28,000		1,834

SPX Corp.		17,200		1,592

Teleflex, Inc.		12,500		974

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 EQUITY INDEX FUNDS

equity index funds



SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Miscellaneous Manufacturing - 3.2% – (continued)

Trinity Industries, Inc.		25,750		$967



				12,004



Office Furnishings - 0.3%

Herman Miller, Inc.		19,900		540

HNI Corp.		13,400		483



				1,023



Oil & Gas - 6.0%

Bill Barrett Corp. *		9,600		378

Cimarex Energy Co.		26,400		983

Denbury Resources, Inc. *		37,900		1,694

Encore Acquisition Co. *		17,500		554

Forest Oil Corp. *		25,900		1,115

Frontier Oil Corp.		33,000		1,374

Helmerich & Payne, Inc.		32,700		1,073

Newfield Exploration Co. *		38,700		1,864

Noble Energy, Inc.		52,008		3,643

Patterson-UTI Energy, Inc.		49,400		1,115

Pioneer Natural Resources Co.		38,200		1,718

Plains Exploration & Production Co. *		23,100		1,021

Pogo Producing Co.		18,200		967

Pride International, Inc. *		49,900		1,824

Quicksilver Resources, Inc. *		16,300		767

Southwestern Energy Co. *		51,400		2,151



				22,241



Oil & Gas Services - 2.7%

Cameron International Corp. *		32,900		3,036

Exterran Holdings, Inc. *		19,999		1,607

FMC Technologies, Inc. *		40,600		2,341

Grant Prideco, Inc. *		38,700		2,110

Superior Energy Services, Inc. *		23,600		836


				9,930



Packaging & Containers - 0.5%

Packaging Corp. of America		30,200		878

Sonoco Products Co.		29,300		884


				1,762



Pharmaceuticals - 2.2%

Cephalon, Inc. *		20,200		1,476

Endo Pharmaceuticals Holdings, Inc. *		40,600		1,259

Medicis Pharmaceutical Corp., Class A		17,500		534

NBTY, Inc. *		16,900		686

Omnicare, Inc.		36,200		1,199


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Pharmaceuticals - 2.2% – (continued)

Par Pharmaceutical Cos., Inc. *		11,100		$206

Perrigo Co.		25,200		538

Sepracor, Inc. *		33,600		924

Valeant Pharmaceuticals International *		26,900		417

VCA Antech, Inc. *		24,700		1,031



				8,270



Pipelines - 1.3%

Equitable Resources, Inc.		38,100		1,976

National Fuel Gas Co.		26,300		1,231

Oneok, Inc.		32,700		1,550



				4,757



Real Estate - 0.3%

Jones Lang LaSalle, Inc.		11,900		1,223



Real Estate Investment Trusts - 3.8%

AMB Property Corp.		31,400		1,878

Cousins Properties, Inc.		11,600		341

Duke Realty Corp.		44,100		1,491

Equity One, Inc.		10,300		280

Highwoods Properties, Inc.		16,400		601

Hospitality Properties Trust		29,338		1,193

Liberty Property Trust		27,900		1,122

Macerich (The) Co.		21,549		1,887

Mack-Cali Realty Corp.		19,500		801

Nationwide Health Properties, Inc.		26,800		808

Regency Centers Corp.		22,166		1,701

UDR, Inc.		43,100		1,048

Weingarten Realty Investors		24,018		996



				14,147



Retail - 6.8%

99 Cents Only Stores *		15,700		161

Advance Auto Parts, Inc.		31,450		1,055

Aeropostale, Inc. *		24,600		469

American Eagle Outfitters, Inc.		64,800		1,705

AnnTaylor Stores Corp. *		19,100		605

Applebee’s International, Inc.		24,400		607

Barnes & Noble, Inc.		16,200		571

BJ’s Wholesale Club, Inc. *		18,600		617

Bob Evans Farms, Inc.		10,000		302

Borders Group, Inc.		18,800		251

Brinker International, Inc.		32,000		878

Carmax, Inc. *		65,600		1,334

CBRL Group, Inc.		8,044		328

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Retail - 6.8% – (continued)

Charming Shoppes, Inc. *		39,204		$329

Cheesecake Factory (The), Inc. *		21,700		509

Chico’s FAS, Inc. *		52,300		735

Coldwater Creek, Inc. *		17,896		194

Collective Brands, Inc. *		19,400		428

Copart, Inc. *		22,100		760

Dick’s Sporting Goods, Inc. *		12,300		826

Dollar Tree Stores, Inc. *		29,200		1,184

Foot Locker, Inc.		45,400		696

GameStop Corp., Class A *		48,400		2,727

MSC Industrial Direct Co., Class A		15,300		774

O’Reilly Automotive, Inc. *		35,800		1,196

Pacific Sunwear of California, Inc. *		22,100		327

PetSmart, Inc.		41,800		1,333

Regis Corp.		12,400		396

Ross Stores, Inc.		43,900		1,126

Ruby Tuesday, Inc.		15,200		279

Saks, Inc.		41,800		717

Urban Outfitters, Inc. *		35,400		772

Williams-Sonoma, Inc.		27,600		900


				25,091


Savings & Loans - 1.0%

Astoria Financial Corp.		27,200		722

First Niagara Financial Group, Inc.		34,582		490

New York Community Bancorp, Inc.		96,708		1,842

Washington Federal, Inc.		24,800		651


				3,705



Semiconductors - 2.8%

Atmel Corp. *		149,200		770

Cree, Inc. *		26,800		834

Cypress Semiconductor Corp. *		46,500		1,358

Fairchild Semiconductor International, Inc. *		36,000		673

Integrated Device Technology, Inc. *		62,730		971

International Rectifier Corp. *		21,300		703

Intersil Corp., Class A		42,200		1,411

Lam Research Corp. *		40,600		2,162

Lattice Semiconductor Corp. *		36,400		163

Micrel, Inc.		17,900		193

Semtech Corp. *		20,500		420

Silicon Laboratories, Inc. *		17,800		743

TriQuint Semiconductor, Inc. *		36,300		178


				10,579


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Software - 3.2%

ACI Worldwide, Inc. *		11,600		$259

Activision, Inc. *		86,944		1,877

Acxiom Corp.		20,575		407

Advent Software, Inc. *		4,800		225

Broadridge Financial Solutions, Inc.		41,300		783

Cerner Corp. *		20,600		1,232

CSG Systems International, Inc. *		14,600		310

Dun & Bradstreet Corp.		18,587		1,833

Fair Isaac Corp.		17,100		617

Global Payments, Inc.		24,000		1,061

MoneyGram International, Inc.		26,900		608

Parametric Technology Corp. *		35,800		624

SEI Investments Co.		38,400		1,048

Sybase, Inc. *		27,713		641

Wind River Systems, Inc. *		19,700		232


				11,757


Telecommunications - 3.0%

3Com Corp. *		123,800		612

ADC Telecommunications, Inc. *		37,300		731

Adtran, Inc.		19,500		449

Andrew Corp. *		49,900		691

Cincinnati Bell, Inc. *		78,000		385

CommScope, Inc. *		18,300		919

Harris Corp.		41,700		2,410

NeuStar, Inc., Class A *		22,500		772

Plantronics, Inc.		13,300		380

Polycom, Inc. *		28,900		776

Powerwave Technologies, Inc. *		42,500		262

RF Micro Devices, Inc. *		60,700		409

Telephone & Data Systems, Inc.		32,500		2,169

UTStarcom, Inc. *		37,200		136


				11,101


Textiles - 0.4%

Mohawk Industries, Inc. *		17,100		1,390


Transportation - 2.1%

Alexander & Baldwin, Inc.		12,100		607

Con-way, Inc.		14,191		653

Expeditors International Washington, Inc.		64,700		3,060

Hunt (J.B.) Transport Services, Inc.		30,300		797

Overseas Shipholding Group		8,300		638

Tidewater, Inc.		17,700		1,112

Werner Enterprises, Inc.		16,600		285

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)
MID CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.5% – CONTINUED

Transportation - 2.1% – (continued)
YRC Worldwide, Inc. *		17,700		$483


				7,635


Trucking & Leasing - 0.2%
GATX Corp.		15,400		658


Water - 0.3%
Aqua America, Inc.		42,266		959


Total Common Stocks


(Cost $318,706)				365,589


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 1.6%
ABN Amro Bank, Amsterdam,
Eurodollar Time Deposit,

5.50%, 10/1/07		$5,571		5,571

U.S. Treasury Bill, ⁽¹⁾

4.71%, 1/17/08		565		557


Total Short-Term Investments


(Cost $6,128)				6,128



Total Investments - 100.1%


(Cost $324,834)				371,717


Liabilities less Other Assets- (0.1)%				(379	)

NET ASSETS - 100.0%				$371,338


(1)		Security pledged as collateral to cover margin requirements for open futures contracts.

*		Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the Mid Cap Index Fund had open futures contracts as follows:

NOTIONAL

UNREALIZED

NUMBER OF

AMOUNT

CONTRACT

GAIN

TYPE

CONTRACTS

(000S)

POSITION

EXP.

(000S)

S&P Midcap
400 E-Mini

$5,896

Long

12/07

$142

At September 30, 2007, the industry sectors for the Mid Cap Index Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		13.3	%

Consumer Staples		2.9

Energy		9.7

Financials		14.9

Health Care		11.9

Industrials		16.3

Information Technology		15.6

Materials		7.2

Telecommunication Services		0.9

Utilities		7.3


Total		100.0	%

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT


		equity index funds
SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)
SMALL CAP INDEX FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0%

Advertising - 0.3%

Catalina Marketing Corp. *		9,400		$304

Gaiam, Inc., Class A *		4,400		106

Greenfield Online, Inc. *		6,600		101

inVentiv Health, Inc. *		8,000		351

Marchex, Inc., Class B		6,300		60

ValueVision Media, Inc., Class A *		9,500		70


				992



Aerospace/Defense - 1.2%

AAR Corp. *		9,800		297

Aerovironment, Inc. *		1,079		25

Argon ST, Inc. *		3,640		72

Curtiss-Wright Corp.		11,500		546

EDO Corp.		4,500		252

Esterline Technologies Corp. *		6,800		388

GenCorp, Inc. *		14,500		173

Heico Corp.		7,200		355

Innovative Solutions & Support, Inc. *		3,300		63

Kaman Corp.		6,600		228

Moog, Inc., Class A *		9,962		438

MTC Technologies, Inc. *		2,800		54

Orbital Sciences Corp. *		15,400		343

Sequa Corp., Class A *		1,800		298

Teledyne Technologies, Inc. *		9,100		486

TransDigm Group, Inc. *		2,582		118

Triumph Group, Inc.		4,700		384

United Industrial Corp. of New York		2,200		166


				4,686


Agriculture - 0.3%

Alico, Inc.		1,100		48

Alliance One International, Inc. *		24,800		162

Andersons (The), Inc.		4,500		216

Cadiz, Inc. *		1,900		36

Maui Land & Pineapple Co., Inc. *		1,100		33

Tejon Ranch Co. *		3,000		124

Universal Corp. of Virginia		7,000		343

Vector Group Ltd.		8,867		199


				1,161



Airlines - 0.5%

Airtran Holdings, Inc. *		23,700		233

Alaska Air Group, Inc. *		10,700		247

Allegiant Travel Co. *		828		25

ExpressJet Holdings, Inc. *		13,600		42


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Airlines - 0.5% – (continued)

JetBlue Airways Corp. *		49,500		$456

Midwest Air Group, Inc. *		5,600		92

Pinnacle Airlines Corp. *		5,900		95

Republic Airways Holdings, Inc. *		10,100		214

Skywest, Inc.		18,100		456


				1,860



Apparel - 1.2%

Carter’s, Inc. *		14,400		287

Cherokee, Inc.		2,600		100

Columbia Sportswear Co.		4,200		232

Deckers Outdoor Corp. *		3,300		362

G-III Apparel Group Ltd. *		2,600		51

Gymboree Corp. *		8,500		300

Heelys, Inc. *		2,300		18

Iconix Brand Group, Inc. *		13,900		331

K-Swiss, Inc., Class A		7,100		163

Kellwood Co.		6,750		115

Maidenform Brands, Inc. *		5,300		84

Oxford Industries, Inc.		4,100		148

Perry Ellis International, Inc. *		3,500		97

Quiksilver, Inc. *		32,300		462

Skechers U.S.A., Inc., Class A *		4,700		104

Steven Madden Ltd.		6,200		118

Timberland (The) Co., Class A *		12,200		231

True Religion Apparel, Inc. *		4,300		76

Volcom, Inc. *		4,094		174

Warnaco Group (The), Inc. *		12,800		500

Weyco Group, Inc.		1,900		60

Wolverine World Wide, Inc.		14,100		386


				4,399



Auto Manufacturers - 0.2%

A.S.V., Inc. *		5,600		79

Force Protection, Inc. *		18,700		405

Wabash National Corp.		7,900		89


				573


Auto Parts & Equipment - 1.0%

Accuride Corp. *		6,200		75

Aftermarket Technology Corp. *		5,700		181

American Axle & Manufacturing Holdings, Inc.		11,600		293

Amerigon, Inc. *		6,500		113

ArvinMeritor, Inc.		18,500		311

Commercial Vehicle Group, Inc. *		5,800		75

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Auto Parts & Equipment - 1.0% – (continued)

Cooper Tire & Rubber Co.		16,000		$390

Exide Technologies *		14,500		94

Hayes Lemmerz International, Inc. *		22,800		95

Keystone Automotive Industries, Inc. *		4,800		229

Lear Corp. *		20,600		661

Miller Industries, Inc. of Tennessee *		2,600		45

Modine Manufacturing Co.		8,400		224

Noble International Ltd.		3,150		67

Spartan Motors, Inc.		9,400		158

Standard Motor Products, Inc.		3,200		30

Superior Industries International, Inc.		5,900		128

Tenneco, Inc. *		12,200		378

Titan International, Inc.		5,800		185

Visteon Corp. *		33,600		173


				3,905


Banks - 6.1%

1st Source Corp.		3,608		83

Alabama National Bancorp		4,300		335

Amcore Financial, Inc.		5,982		149

AmericanWest Bancorp		3,220		63

Ameris Bancorp		3,520		64

Bancfirst Corp.		1,928		86

Banco Latinoamericano de Exportaciones S.A., Class E		6,100		111

Bancorp, Inc. of Delaware *		2,985		55

Bank Mutual Corp.		14,306		169

Bank of the Ozarks, Inc.		3,300		101

Banner Corp.		3,400		117

Boston Private Financial Holdings, Inc.		11,100		309

Capital City Bank Group, Inc.		3,508		109

Capital Corp. of the West		2,640		49

Capitol Bancorp Ltd.		3,700		92

Cascade Bancorp		5,856		130

Cass Information Systems, Inc.		1,650		59

Cathay General Bancorp		13,300		428

Centennial Bank Holdings, Inc. *		16,200		104

Center Financial Corp.		3,400		47

Central Pacific Financial Corp.		8,180		239

Chemical Financial Corp.		6,404		155

Chittenden Corp.		13,116		461

Citizens Republic Bancorp, Inc.		21,923		353

City Holding Co.		4,400		160


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Banks - 6.1% – (continued)

CityBank Lynwood of Washington		3,600		$103

CoBiz Financial, Inc.		4,050		69

Columbia Banking System, Inc.		4,366		139

Community Bancorp of Nevada *		1,800		45

Community Bank System, Inc.		7,800		152

Community Banks, Inc.		6,604		197

Community Trust Bancorp, Inc.		4,135		124

Corus Bankshares, Inc.		11,800		154

CVB Financial Corp.		17,154		201

Enterprise Financial Services Corp.		2,400		58

First Bancorp of North Carolina		3,400		69

First BanCorp of Puerto Rico		20,000		190

First Busey Corp.		6,916		152

First Charter Corp.		8,900		268

First Commonwealth Financial Corp.		19,028		210

First Community Bancorp, Inc. of California		7,602		416

First Community Bancshares, Inc. of Virginia		2,759		100

First Financial Bancorp		9,224		118

First Financial Bankshares, Inc.		5,661		227

First Financial Corp. of Indiana		3,606		109

First Indiana Corp.		3,477		109

First Merchants Corp.		5,127		111

First Midwest Bancorp, Inc. of Illinois		14,400		492

First Regional Bancorp of California *		2,200		54

First South Bancorp, Inc. of North Carolina		2,300		60

First State Bancorporation of New Mexico		4,800		94

FirstMerit Corp.		22,600		447

FNB Corp. of Pennsylvania		15,529		257

Fremont General Corp.		17,800		69

Frontier Financial Corp.		10,150		237

Glacier Bancorp, Inc.		13,944		314

Great Southern Bancorp, Inc.		2,800		70

Greater Bay Bancorp		14,800		408

Green Bankshares, Inc.		2,300		84

Hancock Holding Co.		6,924		277

Hanmi Financial Corp.		10,500		163

Harleysville National Corp.		7,970		127

Heartland Financial USA, Inc.		4,000		82

Heritage Commerce Corp.		3,200		68

Home Bancshares, Inc./Conway AR		3,100		68

Horizon Financial Corp.		3,500		71

IBERIABANK Corp.		3,511		185

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Banks - 6.1% – (continued)

Imperial Capital Bancorp, Inc.		1,500		$42

Independent Bank Corp. of Massachusetts		4,100		122

Independent Bank Corp. of Michigan		6,310		70

Integra Bank Corp.		4,743		86

International Bancshares Corp.		13,260		288

Irwin Financial Corp.		4,900		54

Lakeland Bancorp, Inc.		5,373		73

Lakeland Financial Corp.		3,400		79

Macatawa Bank Corp.		4,334		59

MainSource Financial Group, Inc.		4,370		77

MB Financial, Inc.		8,672		300

Midwest Banc Holdings, Inc.		4,800		71

Nara Bancorp, Inc.		5,800		91

National Penn Bancshares, Inc.		12,791		209

NBT Bancorp, Inc.		8,804		191

Old National Bancorp of Indiana		17,195		285

Old Second Bancorp, Inc.		3,838		109

Omega Financial Corp.		3,378		89

Oriental Financial Group, Inc.		5,947		68

Pacific Capital Bancorp		13,433		353

Park National Corp.		3,225		281

Peoples Bancorp, Inc. of Ohio		2,860		75

Pinnacle Financial Partners, Inc. *		4,300		124

Preferred Bank of California		1,800		71

PrivateBancorp, Inc.		5,800		202

Prosperity Bancshares, Inc.		9,200		305

Provident Bankshares Corp.		8,356		262

Renasant Corp.		4,400		95

Republic Bancorp, Inc. of Kentucky, Class A		2,197		35

Royal Bancshares of Pennsylvania, Inc., Class A		1,274		28

S & T Bancorp, Inc.		6,400		205

Sandy Spring Bancorp, Inc.		4,100		123

Santander BanCorp		1,379		18

SCBT Financial Corp.		2,506		87

Seacoast Banking Corp. of Florida		4,020		75

Security Bank Corp. of Georgia		4,200		53

Sierra Bancorp		1,600		46

Signature Bank of New York *		7,900		278

Simmons First National Corp., Class A		3,900		103

South Financial Group (The), Inc.		21,200		482

Southside Bancshares, Inc.		3,077		68

Southwest Bancorp, Inc. of Oklahoma		4,000		75


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Banks - 6.1% – (continued)

Sterling Bancorp of New York		5,129		$72

Sterling Bancshares, Inc. of Texas		18,787		214

Sterling Financial Corp. of Pennsylvania		6,957		119

Sterling Financial Corp. of Washington		12,482		336

Suffolk Bancorp		2,900		93

Sun Bancorp, Inc. of New Jersey *		4,117		72

Superior Bancorp *		6,500		57

Susquehanna Bancshares, Inc.		13,479		271

SVB Financial Group *		9,800		464

SY Bancorp, Inc.		3,485		94

Taylor Capital Group, Inc.		1,600		45

Texas Capital Bancshares, Inc. *		6,400		139

Tompkins Financial Corp.		1,853		74

Trico Bancshares		3,800		85

Trustco Bank Corp. of New York		19,494		213

Trustmark Corp.		12,700		356

UCBH Holdings, Inc.		28,500		498

UMB Financial Corp.		8,012		343

Umpqua Holdings Corp.		15,131		303

Union Bankshares Corp. of Virginia		3,700		84

United Bankshares, Inc.		9,300		283

United Community Banks, Inc. of Georgia		10,800		265

United Security Bancshares of California		2,000		38

Univest Corp. of Pennsylvania		3,250		77

USB Holding Co., Inc.		3,374		78

USB Holdings Co., Inc. - Fractional Shares *		50,000		-

Virginia Commerce Bancorp *		4,712		68

W. Holding Co., Inc.		29,900		67

Washington Trust Bancorp, Inc.		3,300		89

WesBanco, Inc.		6,000		150

West Coast Bancorp of Oregon		4,207		120

Westamerica Bancorporation		8,900		443

Western Alliance Bancorp *		3,600		85

Wilshire Bancorp, Inc.		4,200		46

Wintrust Financial Corp.		6,300		269

Yardville National Bancorp		2,700		91


				22,884



Beverages - 0.3%

Boston Beer Co., Inc., Class A *		2,600		126

Central European Distribution Corp. *		9,050		434

Coca-Cola Bottling Co. Consolidated		1,327		80

Farmer Bros. Co.		2,000		50

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Beverages - 0.3% – (continued)

Green Mountain Coffee Roasters, Inc. *		5,100		$169

Jones Soda Co. *		7,800		94

National Beverage Corp.		2,760		23

Overland Beverage Distributing		20		-

Peet’s Coffee & Tea, Inc. *		3,900		109


				1,085


Biotechnology - 2.3%

Acorda Therapeutics, Inc. *		6,000		110

Affymax, Inc. *		659		18

Affymetrix, Inc. *		19,000		482

Alexion Pharmaceuticals, Inc. *		9,900		645

AMAG Pharmaceuticals, Inc. *		4,650		266

American Oriental Bioengineering, Inc. *		12,300		137

Applera Corp. - Celera Group *		20,800		292

Arena Pharmaceuticals, Inc. *		15,200		166

Ariad Pharmaceuticals, Inc. *		20,200		94

Arqule, Inc. *		10,000		71

Bio-Rad Laboratories, Inc., Class A *		4,800		434

BioMimetic Therapeutics, Inc. *		3,400		45

Cambrex Corp.		7,300		80

Cell Genesys, Inc. *		22,900		87

CryoLife, Inc. *		7,000		66

Cytokinetics, Inc. *		7,400		38

Encysive Pharmaceuticals, Inc. *		20,200		31

Enzo Biochem, Inc. *		7,507		85

Enzon Pharmaceuticals, Inc. *		12,000		106

Exelixis, Inc. *		26,500		281

Genomic Health, Inc. *		4,200		81

GenVec, Inc. *		20,600		48

Geron Corp. *		18,100		133

GTX, Inc. *		3,400		55

Halozyme Therapeutics, Inc. *		15,500		135

Human Genome Sciences, Inc. *		37,833		389

Illumina, Inc. *		14,036		728

Immunomedics, Inc. *		17,400		40

Incyte Corp. *		23,000		164

Integra LifeSciences Holdings Corp. *		5,300		258

InterMune, Inc. *		7,900		151

Keryx Biopharmaceuticals, Inc. *		12,600		125

Kosan Biosciences, Inc. *		9,000		45

Lifecell Corp. *		8,800		331

Martek Biosciences Corp. *		8,400		244


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Biotechnology - 2.3% – (continued)

Maxygen, Inc. *		8,100		$55

Medivation, Inc. *		6,100		122

Momenta Pharmaceuticals, Inc. *		6,200		71

Myriad Genetics, Inc. *		11,927		622

Nektar Therapeutics *		25,700		227

Novacea, Inc. *		2,600		21

Omrix Biopharmaceuticals, Inc. *		4,000		141

Orexigen Therapeutics, Inc. *		1,248		17

Protalix BioTherapeutics, Inc. *		499		17

Qiagen N.V. *		1		-

Regeneration Technologies, Inc. *		6,600		71

Regeneron Pharmaceuticals, Inc. *		17,700		315

Savient Pharmaceuticals, Inc. *		14,752		215

Seattle Genetics, Inc. *		12,100		136

SuperGen, Inc. *		15,800		69

Telik, Inc. *		14,400		42

Tercica, Inc. *		6,300		39

Xoma Ltd. *		36,500		124


				8,765


Building Materials - 0.9%

AAON, Inc.		3,900		77

Apogee Enterprises, Inc.		8,300		215

Builders FirstSource, Inc. *		4,200		45

Comfort Systems USA, Inc.		11,100		158

Drew Industries, Inc. *		5,100		207

Genlyte Group, Inc. *		7,900		508

Gibraltar Industries, Inc.		6,650		123

Goodman Global, Inc. *		9,300		222

Interline Brands, Inc. *		7,430		171

LSI Industries, Inc.		5,912		121

NCI Building Systems, Inc. *		5,200		225

PGT, Inc. *		2,900		23

Simpson Manufacturing Co., Inc.		10,000		318

Texas Industries, Inc.		7,100		557

Trex Co., Inc. *		3,300		37

U.S. Concrete, Inc. *		9,200		61

Universal Forest Products, Inc.		5,000		150



				3,218


Chemicals - 2.2%

American Vanguard Corp.		5,000		98

Arch Chemicals, Inc.		7,000		328

Balchem Corp.		4,950		101

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Chemicals - 2.2% – (continued)

CF Industries Holdings, Inc.		14,600		$1,108

Ferro Corp.		11,550		231

Fuller (H.B.) Co.		15,900		472

Georgia Gulf Corp.		10,000		139

Grace (W.R.) & Co. *		18,200		489

Hercules, Inc.		32,100		675

Innophos Holdings, Inc.		4,300		66

Innospec, Inc.		6,800		155

Kronos Worldwide, Inc.		778		15

Landec Corp. *		4,300		66

Metabolix, Inc. *		4,500		109

Minerals Technologies, Inc.		4,900		328

NewMarket Corp.		4,000		197

NL Industries, Inc.		2,300		26

Olin Corp.		19,500		436

OM Group, Inc. *		7,700		407

PolyOne Corp. *		24,100		180

Rockwood Holdings, Inc. *		9,097		326

Schulman (A.), Inc.		6,600		130

Sensient Technologies Corp.		12,200		352

Spartech Corp.		8,300		142

Stepan Co.		1,700		53

Symyx Technologies, Inc. *		9,100		79

Terra Industries, Inc. *		24,100		753

Tronox, Inc., Class B		11,400		103

UAP Holding Corp.		14,700		461

Zoltek Cos., Inc. *		5,400		236


				8,261


Closed-End Funds - 0.0%

Kayne Anderson Energy Development Co.		2,300		59


Coal - 0.1%

Alpha Natural Resources, Inc. *		16,170		376

International Coal Group, Inc. *		31,200		138



				514


Commercial Services - 6.0%

Aaron Rents, Inc.		11,850		264

ABM Industries, Inc.		11,248		225

Administaff, Inc.		6,200		225

Advance America Cash Advance Centers, Inc.		18,310		195

Advisory Board (The) Co. *		5,100		298

Albany Molecular Research, Inc. *		6,900		104

AMN Healthcare Services, Inc. *		8,900		167


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Commercial Services - 6.0% – (continued)

Arbitron, Inc.		8,100		$367

Arrowhead Research Corp. *		10,300		52

Bankrate, Inc. *		3,300		152

Barrett Business Services		1,900		45

BearingPoint, Inc. *		50,300		204

Bowne & Co., Inc.		8,200		137

Bright Horizons Family Solutions, Inc. *		6,800		291

Capella Education Co. *		2,457		137

CBIZ, Inc. *		14,900		118

CDI Corp.		3,600		100

Cenveo, Inc. *		13,970		302

Chemed Corp.		6,600		410

Clayton Holdings, Inc. *		2,600		21

Coinmach Service Corp., Class A		9,300		112

Coinstar, Inc. *		7,600		244

Consolidated Graphics, Inc. *		2,700		170

Corinthian Colleges, Inc. *		24,300		387

Cornell Cos., Inc. *		3,200		75

Corvel Corp. *		2,125		49

CoStar Group, Inc. *		4,800		257

CPI Corp.		1,200		46

CRA International, Inc. *		3,100		149

Cross Country Healthcare, Inc. *		8,800		154

Deluxe Corp.		14,000		516

DeVry, Inc.		16,500		611

Diamond Management & Technology Consultants, Inc.		8,300		76

Dollar Financial Corp. *		4,600		131

Dollar Thrifty Automotive Group *		6,100		212

DynCorp International, Inc., Class A *		6,900		159

Electro Rent Corp.		5,374		75

Emergency Medical Services Corp., Class A *		2,900		88

Euronet Worldwide, Inc. *		12,300		366

ExlService Holdings, Inc. *		5,156		110

Exponent, Inc. *		4,100		103

First Advantage Corp., Class A *		2,000		35

Forrester Research, Inc. *		3,900		92

FTI Consulting, Inc. *		10,925		550

Gartner, Inc. *		18,700		457

Geo Group (The), Inc. *		13,100		388

Gevity HR, Inc.		7,200		74

Global Cash Access Holdings, Inc. *		10,200		108

Great Lakes Dredge & Dock Corp. *		3,500		31

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Commercial Services - 6.0% – (continued)

H&E Equipment Services, Inc. *		4,000		$72

Healthcare Services Group		12,338		250

Healthspring, Inc. *		12,000		234

Heartland Payment Systems, Inc.		4,000		103

Heidrick & Struggles International, Inc. *		5,200		190

HMS Holdings Corp. *		6,300		155

Home Solutions of America, Inc. *		11,800		40

Hudson Highland Group, Inc. *		7,400		94

Huron Consulting Group, Inc. *		5,100		370

ICT Group, Inc. *		1,800		24

Integrated Electrical Services, Inc. *		4,000		102

Interactive Data Corp.		9,700		274

Jackson Hewitt Tax Service, Inc.		8,400		235

Kelly Services, Inc., Class A		5,529		110

Kendle International, Inc. *		3,900		162

Kenexa Corp. *		7,000		215

Kforce, Inc. *		8,000		103

Korn/Ferry International *		11,900		196

Labor Ready, Inc. *		12,000		222

Landauer, Inc.		2,500		127

LECG Corp. *		6,700		100

Live Nation, Inc. *		17,000		361

MAXIMUS, Inc.		5,700		248

McGrath Rentcorp		5,964		198

Midas, Inc. *		4,400		83

Monro Muffler, Inc.		3,300		112

Morningstar, Inc. *		3,800		233

MPS Group, Inc. *		26,600		297

Multi-Color Corp.		1,350		31

Navigant Consulting, Inc. *		12,300		156

Net 1 UEPS Technologies, Inc. *		11,600		315

Odyssey Marine Exploration, Inc. *		12,200		76

On Assignment, Inc. *		7,900		74

Parexel International Corp. *		7,400		305

PeopleSupport, Inc. *		7,100		85

PharmaNet Development Group, Inc. *		4,950		144

PHH Corp. *		15,200		399

PRA International *		4,900		144

Pre-Paid Legal Services, Inc. *		2,700		150

Premier Exhibitions, Inc. *		8,200		124

Providence Service (The) Corp. *		3,330		98

Rent-A-Center, Inc. *		19,700		357


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Commercial Services - 6.0% – (continued)

Resources Connection, Inc.		13,000		$301

Rollins, Inc.		8,100		216

RSC Holdings, Inc. *		4,400		72

SAIC, Inc. *		29,500		566

Senomyx, Inc. *		8,640		106

Sotheby’s		17,200		822

Source Interlink Cos., Inc. *		11,300		40

Spherion Corp. *		14,630		121

Standard Parking Corp. *		1,400		56

Steiner Leisure Ltd. *		4,200		182

Stewart Enterprises, Inc., Class A		28,900		220

Strayer Education, Inc.		4,000		675

Team, Inc. *		3,800		104

TeleTech Holdings, Inc. *		11,700		280

TNS, Inc.		6,600		106

Universal Technical Institute, Inc. *		6,300		113

Valassis Communications, Inc. *		12,427		111

Viad Corp.		6,000		216

VistaPrint Ltd. *		10,800		404

Volt Information Sciences, Inc. *		4,575		81

Watson Wyatt Worldwide, Inc., Class A		11,100		499

Wright Express Corp. *		10,890		397


				22,695


Computers - 2.3%

3D Systems Corp. *		4,100		97

Agilysys, Inc.		8,387		142

Ansoft Corp. *		5,200		171

CACI International, Inc., Class A *		8,000		409

CIBER, Inc. *		15,000		117

COMSYS IT Partners, Inc. *		4,500		76

Comtech Group, Inc. *		4,100		75

Cray, Inc. *		9,800		71

Data Domain, Inc. *		2,300		71

Echelon Corp. *		8,800		220

Electronics for Imaging, Inc. *		16,100		432

Gateway, Inc. *		74,871		141

Henry (Jack) & Associates, Inc.		21,500		556

Hutchinson Technology, Inc. *		7,715		190

iGate Corp. *		6,000		51

IHS, Inc., Class A *		7,900		446

Imation Corp.		9,100		223

Immersion Corp. *		7,800		128

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Computers - 2.3% – (continued)

Integral Systems, Inc. of Maryland		3,234		$69

InterVoice, Inc. *		10,600		100

Isilon Systems, Inc. *		1,404		11

Limelight Networks, Inc. *		4,910		43

LivePerson, Inc. *		7,700		47

Magma Design Automation, Inc. *		10,500		148

Manhattan Associates, Inc. *		7,000		192

Mentor Graphics Corp. *		24,000		362

Mercury Computer Systems, Inc. *		5,900		61

Micros Systems, Inc. *		11,300		735

MTS Systems Corp.		5,000		208

Ness Technologies, Inc. *		7,500		82

Netezza Corp. *		429		5

Palm, Inc. *		26,506		431

Perot Systems Corp., Class A *		22,600		382

Quantum Corp. *		52,400		178

Rackable Systems, Inc. *		8,600		112

Radiant Systems, Inc. *		7,200		114

Radisys Corp. *		5,800		72

Rimage Corp. *		2,100		47

SI International, Inc. *		3,600		103

Sigma Designs, Inc. *		6,200		299

Silicon Graphics, Inc. *		1,200		24

Silicon Storage Technology, Inc. *		24,900		80

Smart Modular Technologies WWH, Inc. *		12,000		86

SRA International, Inc., Class A *		10,500		295

STEC, Inc. *		9,800		75

Stratasys, Inc. *		6,100		168

Super Micro Computer, Inc. *		669		7

SYKES Enterprises, Inc. *		8,000		133

Synaptics, Inc. *		7,300		349

Syntel, Inc.		2,800		116

Virtusa Corp. *		1,100		16


				8,766


Cosmetics/Personal Care - 0.2%

Chattem, Inc. *		4,800		339

Elizabeth Arden, Inc. *		7,100		191

Inter Parfums, Inc.		1,400		33

Revlon, Inc., Class A *		55,000		63


				626


Distribution/Wholesale - 0.7%

Beacon Roofing Supply, Inc. *		12,000		123


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Distribution/Wholesale - 0.7% – (continued)

Beijing Med-Pharm Corp. *		5,900		$69

BlueLinx Holdings, Inc.		3,700		26

Brightpoint, Inc. *		13,150		197

Building Material Holding Corp.		8,800		93

Core-Mark Holding Co., Inc. *		2,800		99

Houston Wire & Cable Co.		5,400		98

LKQ Corp. *		12,800		446

MWI Veterinary Supply, Inc. *		1,800		68

NuCo2, Inc. *		4,200		108

Owens & Minor, Inc.		10,462		398

Scansource, Inc. *		6,900		194

United Stationers, Inc. *		7,892		438

Watsco, Inc.		5,950		276


				2,633


Diversified Financial Services - 2.1%

Accredited Home Lenders Holding Co. *		6,870		80

Advanta Corp., Class B		9,050		248

Asset Acceptance Capital Corp.		4,300		50

Asta Funding, Inc.		3,300		126

Calamos Asset Management, Inc., Class A		7,000		198

Centerline Holding Co.		14,300		219

Cityscape Financial Corp. *		3,800		-

Cohen & Steers, Inc.		4,900		181

CompuCredit Corp. *		5,600		122

Cowen Group, Inc. *		5,300		73

Credit Acceptance Corp. *		2,052		47

Delta Financial Corp. *		5,200		26

Encore Capital Group, Inc. *		3,100		37

eSpeed, Inc., Class A *		5,600		48

Evercore Partners, Inc., Class A		1,700		45

FBR Capital Markets Corp. *		8,300		107

FCStone Group, Inc. *		2,700		87

Federal Agricultural Mortgage Corp., Class C		3,100		91

Financial Federal Corp.		7,400		207

Friedman Billings Ramsey Group, Inc., Class A		39,700		183

GAMCO Investors, Inc., Class A		1,600		88

GFI Group, Inc. *		4,520		389

Greenhill & Co., Inc.		4,800		293

Interactive Brokers Group, Inc., Class A *		10,200		268

International Securities Exchange Holdings, Inc.		10,100		671

KBW, Inc. *		7,068		203

Knight Capital Group, Inc., Class A *		29,100		348

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 EQUITY INDEX FUNDS

equity index funds

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Diversified Financial Services - 2.1% – (continued)

LaBranche & Co., Inc. *		14,600		$68

Ladenburg Thalmann Financial Services, Inc. *		22,200		44

MarketAxess Holdings, Inc. *		8,700		131

National Financial Partners Corp.		9,799		519

Nelnet, Inc., Class A		3,900		71

NewStar Financial, Inc. *		3,757		42

Ocwen Financial Corp. *		9,400		89

optionsXpress Holdings, Inc.		12,030		314

Penson Worldwide, Inc. *		3,200		59

Piper Jaffray Cos. *		4,991		268

Portfolio Recovery Associates, Inc.		4,500		239

Sanders Morris Harris Group, Inc.		3,800		39

Stifel Financial Corp. *		3,633		210

SWS Group, Inc.		6,415		113

Thomas Weisel Partners Group, Inc. *		4,700		68

TradeStation Group, Inc. *		8,800		103

US Global Investors, Inc., Class A		3,500		67

W.P. Stewart & Co., Ltd.		3,900		39

Waddell & Reed Financial, Inc., Class A		23,500		635

World Acceptance Corp. *		5,000		165



				7,718



Diversified Minerals - 0.0%

Idaho General Mines, Inc. *		14,200		94



Electric - 1.7%

Allete, Inc.		6,800		304

Aquila, Inc. *		97,200		390

Avista Corp.		13,500		275

Black Hills Corp.		9,800		402

Central Vermont Public Service Corp.		2,100		77

CH Energy Group, Inc.		4,300		205

Cleco Corp.		17,200		435

El Paso Electric Co. *		11,900		275

Empire District Electric (The) Co.		8,200		185

EnerNOC, Inc. *		645		25

Idacorp, Inc.		11,500		376

ITC Holdings Corp.		11,500		570

MGE Energy, Inc.		5,625		188

NorthWestern Corp.		10,500		285

Ormat Technologies, Inc.		3,100		144

Otter Tail Corp.		8,100		289

Pike Electric Corp. *		4,300		81

PNM Resources, Inc.		19,900		463


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Electric - 1.7% – (continued)

Portland General Electric Co.		7,400		$206

UIL Holdings Corp.		6,733		212

Unisource Energy Corp.		9,120		272

Westar Energy, Inc.		25,200		619



				6,278



Electrical Components & Equipment - 0.8%

Advanced Energy Industries, Inc. *		9,600		145

American Superconductor Corp. *		11,447		234

Belden, Inc.		11,512		540

Coleman Cable, Inc. *		2,700		37

Encore Wire Corp.		6,000		151

Energy Conversion Devices, Inc. *		10,500		239

EnerSys *		6,900		123

GrafTech International Ltd. *		26,900		480

Greatbatch, Inc. *		6,000		160

Insteel Industries, Inc.		5,600		86

Lamson & Sessions (The) Co. *		3,800		102

Littelfuse, Inc. *		6,500		232

Medis Technologies Ltd. *		6,696		87

Powell Industries, Inc. *		2,200		83

Power-One, Inc. *		19,200		98

Superior Essex, Inc. *		5,550		207

Universal Display Corp. *		6,500		115

Vicor Corp.		5,400		65



				3,184



Electronics - 2.9%

American Science & Engineering, Inc.		2,500		157

Analogic Corp.		3,600		230

Badger Meter, Inc.		3,900		125

Bel Fuse, Inc., Class B		2,800		97

Benchmark Electronics, Inc. *		18,363		438

Brady Corp., Class A		12,838		461

Checkpoint Systems, Inc. *		10,700		282

Cogent, Inc. *		11,900		187

Coherent, Inc. *		8,100		260

CTS Corp.		9,880		127

Cubic Corp.		4,200		177

Cymer, Inc. *		9,373		360

Daktronics, Inc.		8,300		226

Dionex Corp. *		5,100		405

Eagle Test Systems, Inc. *		2,200		28

Electro Scientific Industries, Inc. *		8,000		192

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Electronics - 2.9% – (continued)

Excel Technology, Inc. *		3,400		$85

FARO Technologies, Inc. *		3,600		159

FEI Co. *		10,000		314

Flir Systems, Inc. *		18,100		1,003

II-VI, Inc. *		6,300		218

Ionatron, Inc. *		9,040		31

Itron, Inc. *		8,300		772

Kemet Corp. *		21,800		160

L-1 Identity Solutions, Inc. *		15,824		298

LoJack Corp. *		5,100		97

Measurement Specialties, Inc. *		3,900		109

Methode Electronics, Inc.		10,242		154

Multi-Fineline Electronix, Inc. *		2,300		34

Newport Corp. *		9,100		139

OSI Systems, Inc. *		4,200		95

OYO Geospace Corp. *		1,300		120

Park Electrochemical Corp.		5,500		185

Plexus Corp. *		12,000		329

Rofin-Sinar Technologies, Inc. *		4,200		295

Rogers Corp. *		4,700		194

Sonic Solutions, Inc. *		7,000		73

Taser International, Inc. *		17,300		271

Technitrol, Inc.		11,000		296

TTM Technologies, Inc. *		11,500		133

Varian, Inc. *		8,600		547

Watts Water Technologies, Inc., Class A		7,600		233

Woodward Governor Co.		8,400		524

X-Rite, Inc.		6,900		100

Zygo Corp. *		5,100		66



				10,786



Energy - Alternate Sources - 0.3%

Aventine Renewable Energy Holdings, Inc. *		8,317		88

Clean Energy Fuels Corp. *		1,900		29

Comverge, Inc. *		949		31

Evergreen Energy, Inc. *		19,500		100

Evergreen Solar, Inc. *		23,200		207

FuelCell Energy, Inc. *		19,400		173

Headwaters, Inc. *		10,200		152

MGP Ingredients, Inc.		2,600		27

Pacific Ethanol, Inc. *		10,300		99

US BioEnergy Corp. *		3,118		24

VeraSun Energy Corp. *		7,665		84


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Energy - Alternate Sources - 0.3% – (continued)

Verenium Corp. *		9,500		$50



				1,064



Engineering & Construction - 0.9%

Aecom Technology Corp. *		10,146		354

Baker (Michael) Corp. *		2,300		113

Dycom Industries, Inc. *		10,600		325

EMCOR Group, Inc. *		16,600		521

ENGlobal Corp. *		4,800		55

Granite Construction, Inc.		9,362		496

Insituform Technologies, Inc., Class A *		8,100		123

Layne Christensen Co. *		4,100		227

Perini Corp. *		6,900		386

Stanley, Inc. *		1,262		35

Washington Group International, Inc. *		7,600		667



				3,302



Entertainment - 0.8%

Bally Technologies, Inc. *		14,100		500

Bluegreen Corp. *		5,800		45

Carmike Cinemas, Inc.		3,500		64

Churchill Downs, Inc.		2,400		120

Cinemark Holdings, Inc.		6,000		111

Dover Downs Gaming & Entertainment, Inc.		3,995		41

Great Wolf Resorts, Inc. *		7,360		91

Isle of Capri Casinos, Inc. *		4,300		84

Lakes Entertainment, Inc. *		6,500		62

Macrovision Corp. *		14,000		345

Magna Entertainment Corp., Class A *		11,000		25

National CineMedia, Inc.		10,900		244

Pinnacle Entertainment, Inc. *		15,500		422

Shuffle Master, Inc. *		10,250		153

Six Flags, Inc. *		21,900		76

Speedway Motorsports, Inc.		4,000		148

Steinway Musical Instruments		2,000		59

Vail Resorts, Inc. *		8,200		511



				3,101



Environmental Control - 0.7%

American Ecology Corp.		4,300		91

Calgon Carbon Corp. *		11,700		163

Casella Waste Systems, Inc., Class A *		6,000		75

Clean Harbors, Inc. *		4,300		191

Darling International, Inc. *		20,300		201

Fuel Tech, Inc. *		5,000		110

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 EQUITY INDEX FUNDS

equity index funds

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Environmental Control - 0.7% – (continued)

Metal Management, Inc.		6,600		$358

Mine Safety Appliances Co.		7,300		344

Rentech, Inc. *		46,600		101

Tetra Tech, Inc. *		15,091		319

Waste Connections, Inc. *		17,775		565

Waste Industries USA, Inc.		2,100		60

Waste Services, Inc. *		7,666		74



				2,652



Food - 1.5%

Arden Group, Inc., Class A		400		56

Cal-Maine Foods, Inc.		3,900		98

Chiquita Brands International, Inc. *		11,000		174

Flowers Foods, Inc.		19,837		433

Fresh Del Monte Produce, Inc.		7,000		201

Great Atlantic & Pacific Tea Co. *		5,300		161

Hain Celestial Group, Inc. *		11,400		366

Imperial Sugar Co.		3,700		97

Ingles Markets, Inc., Class A		3,300		95

J & J Snack Foods Corp.		3,800		132

Lance, Inc.		8,300		191

M & F Worldwide Corp. *		2,900		146

Nash Finch Co.		3,900		155

Pathmark Stores, Inc. *		9,400		120

Performance Food Group Co. *		9,300		280

Pilgrims Pride Corp.		10,500		365

Ralcorp Holdings, Inc. *		7,100		396

Ruddick Corp.		10,700		359

Sanderson Farms, Inc.		4,400		183

Seaboard Corp.		120		235

Spartan Stores, Inc.		5,800		131

Tootsie Roll Industries, Inc.		9,269		246

TreeHouse Foods, Inc. *		8,100		219

United Natural Foods, Inc. *		11,100		302

Village Super Market, Class A		800		42

Weis Markets, Inc.		2,600		111

Winn-Dixie Stores, Inc. *		8,500		159



				5,453



Forest Products & Paper - 0.5%

Bowater, Inc.		14,600		218

Buckeye Technologies, Inc. *		10,300		156

Deltic Timber Corp.		2,800		159

Glatfelter		12,200		181


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Forest Products & Paper - 0.5% – (continued)

Mercer International, Inc. *		7,400		$70

Neenah Paper, Inc.		4,000		132

Potlatch Corp.		11,060		498

Rock-Tenn Co., Class A		8,740		253

Schweitzer-Mauduit International, Inc.		4,200		98

Wausau Paper Corp.		12,342		138

Xerium Technologies, Inc.		5,400		29



				1,932



Gas - 0.8%

EnergySouth, Inc.		1,850		93

Laclede Group (The), Inc.		5,900		190

New Jersey Resources Corp.		7,550		374

Nicor, Inc.		12,600		541

Northwest Natural Gas Co.		7,450		340

Piedmont Natural Gas Co., Inc.		20,600		517

SEMCO Energy, Inc. *		6,400		51

South Jersey Industries, Inc.		8,026		279

Southwest Gas Corp.		10,800		306

WGL Holdings, Inc.		14,300		485



				3,176



Hand/Machine Tools - 0.3%

Baldor Electric Co.		11,953		477

Franklin Electric Co., Inc.		5,300		218

Hardinge, Inc.		3,300		115

Raser Technologies, Inc. *		6,800		88

Regal-Beloit Corp.		8,341		399



				1,297



Healthcare - Products - 3.9%

Abaxis, Inc. *		6,300		141

Abiomed, Inc. *		6,400		80

Accuray, Inc. *		4,336		76

Align Technology, Inc. *		15,800		400

American Medical Systems Holdings, Inc. *		19,700		334

Angiodynamics, Inc. *		6,100		115

Arrow International, Inc.		7,200		328

Arthrocare Corp. *		7,700		430

Aspect Medical Systems, Inc. *		4,400		60

Bruker BioSciences Corp. *		15,664		138

Cantel Medical Corp. *		2,100		33

Cepheid, Inc. *		14,900		340

Conceptus, Inc. *		6,900		131

Conmed Corp. *		7,325		205

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Healthcare - Products - 3.9% – (continued)

Cutera, Inc. *		4,100		$107

Cyberonics, Inc. *		5,900		82

Cynosure, Inc., Class A *		2,300		85

Datascope Corp.		3,600		122

DJO, Inc. *		6,200		304

ev3, Inc. *		4,500		74

Foxhollow Technologies, Inc. *		5,400		143

Haemonetics Corp. of Massachusetts *		6,900		341

Hansen Medical, Inc., *		1,837		50

Hologic, Inc. *		14,000		854

ICU Medical, Inc. *		3,900		151

Immucor, Inc. *		18,880		675

Insulet Corp. *		898		20

Invacare Corp.		7,412		173

Inverness Medical Innovations, Inc. *		14,200		786

Kensey Nash Corp. *		3,700		97

Kyphon, Inc. *		12,400		868

LCA-Vision, Inc.		5,550		163

Luminex Corp. *		8,800		133

Masimo Corp. *		3,610		93

Medical Action Industries, Inc. *		3,900		92

Mentor Corp.		9,000		414

Meridian Bioscience, Inc.		9,725		295

Merit Medical Systems, Inc. *		7,467		97

Micrus Endovascular Corp. *		4,400		80

Minrad International, Inc. *		9,700		46

Natus Medical, Inc. *		5,800		92

Northstar Neuroscience, Inc. *		3,900		44

NuVasive, Inc. *		9,000		323

NxStage Medical, Inc. *		6,400		93

Oakley, Inc.		7,200		209

OraSure Technologies, Inc. *		12,600		127

Orthofix International N.V. *		3,900		191

Palomar Medical Technologies, Inc. *		4,700		134

PolyMedica Corp.		6,300		331

PSS World Medical, Inc. *		17,450		334

Quidel Corp. *		8,300		162

Sirona Dental Systems, Inc. *		4,800		171

Sonic Innovations, Inc. *		5,400		49

SonoSite, Inc. *		5,000		153

Spectranetics Corp. *		9,500		128

Stereotaxis, Inc. *		6,400		88


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Healthcare - Products - 3.9% – (continued)

STERIS Corp.		16,900		$462

SurModics, Inc. *		4,300		211

Symmetry Medical, Inc. *		9,570		160

Thoratec Corp. *		13,785		285

TomoTherapy, Inc. *		2,200		51

Ventana Medical Systems, Inc. *		7,372		633

Visicu, Inc. *		2,900		22

Vital Images, Inc. *		5,200		101

Vital Signs, Inc.		2,400		125

Volcano Corp. *		5,400		89

West Pharmaceutical Services, Inc.		8,552		356

Wright Medical Group, Inc. *		9,400		252

Zoll Medical Corp. *		6,100		158



				14,690



Healthcare - Services - 1.6%

Air Methods Corp. *		2,900		134

Alliance Imaging, Inc. *		4,500		41

Amedisys, Inc. *		6,434		247

American Dental Partners, Inc. *		4,100		115

AMERIGROUP Corp. *		14,000		483

Amsurg Corp. *		8,200		189

Apria Healthcare Group, Inc. *		11,400		296

Assisted Living Concepts, Inc., Class A *		13,900		127

athenahealth, Inc. *		148		5

Bio-Reference Labs, Inc. *		2,800		95

Capital Senior Living Corp. *		6,200		52

Centene Corp. *		11,600		249

Emeritus Corp. *		1,900		51

Gentiva Health Services, Inc. *		7,400		142

Healthsouth Corp. *		21,200		371

Healthways, Inc. *		9,800		529

Hythiam, Inc. *		7,200		54

Kindred Healthcare, Inc. *		7,800		140

LHC Group, Inc. *		4,600		99

Magellan Health Services, Inc. *		10,200		414

Matria Healthcare, Inc. *		5,700		149

Medcath Corp. *		3,100		85

Molina Healthcare, Inc. *		3,300		120

National Healthcare Corp.		1,700		87

Nighthawk Radiology Holdings, Inc. *		6,200		152

Odyssey HealthCare, Inc. *		9,475		91

Psychiatric Solutions, Inc. *		15,000		589

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 EQUITY INDEX FUNDS

equity index funds

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Healthcare - Services - 1.6% – (continued)

Radiation Therapy Services, Inc. *		3,400		$71

RehabCare Group, Inc. *		4,700		83

Res-Care, Inc. *		6,100		139

Skilled Healthcare Group, Inc., Class A *		6,900		109

Sun Healthcare Group, Inc. *		12,000		201

Sunrise Senior Living, Inc. *		11,600		410



				6,119



Holding Companies - Diversified - 0.3%

Aldabra 2 Acquisition Corp. *		11,000		101

Alternative Asset Management Acquisition Corp. *		11,000		97

Compass Diversified Holdings		6,800		109

Energy Infrastructure Acquisition Corp. *		3,600		35

Freedom Acquisition Holding, Inc. *		15,700		177

Information Services Group, Inc. *		6,000		46

Marathon Acquisition Corp. *		8,000		63

NTR Acquisition Co. *		4,300		41

Resource America, Inc., Class A		4,300		68

Star Maritime Acquisition Corp. *		5,200		73

Walter Industries, Inc.		12,900		347



				1,157



Home Builders - 0.4%

Amrep Corp.		800		21

Beazer Homes USA, Inc.		11,400		94

Brookfield Homes Corp.		3,267		61

Champion Enterprises, Inc. *		19,908		219

Fleetwood Enterprises, Inc. *		17,500		150

Hovnanian Enterprises, Inc., Class A *		9,700		107

M/I Homes, Inc.		3,300		46

Meritage Homes Corp. *		7,700		109

Monaco Coach Corp.		7,300		102

Palm Harbor Homes, Inc. *		2,812		35

Skyline Corp.		1,900		57

Standard-Pacific Corp.		15,900		87

WCI Communities, Inc. *		9,700		58

Williams Scotsman International, Inc. *		8,800		244

Winnebago Industries, Inc.		8,200		196



				1,586



Home Furnishings - 0.6%

American Woodmark Corp.		3,300		82

Audiovox Corp., Class A *		4,600		47

DTS, Inc. *		5,600		170

Ethan Allen Interiors, Inc.		6,900		226


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Home Furnishings - 0.6% – (continued)

Furniture Brands International, Inc.		12,400		$126

Hooker Furniture Corp.		2,900		58

Kimball International, Inc., Class B		6,756		77

La-Z-Boy, Inc.		13,300		98

Sealy Corp.		10,200		143

Tempur-Pedic International, Inc.		21,500		769

TiVo, Inc. *		26,500		168

Universal Electronics, Inc. *		4,200		136



				2,100



Household Products/Wares - 0.8%

ACCO Brands Corp. *		13,600		305

American Greetings Corp., Class A		14,400		380

Blyth, Inc.		6,600		135

Central Garden and Pet Co., Class A *		17,400		156

CSS Industries, Inc.		1,900		68

Ennis, Inc.		7,000		154

Fossil, Inc. *		11,300		422

Helen of Troy Ltd. *		7,200		139

Playtex Products, Inc. *		15,300		280

Prestige Brands Holdings, Inc. *		9,110		100

Russ Berrie & Co., Inc. *		3,200		54

Spectrum Brands, Inc. *		12,500		73

Standard Register (The) Co.		4,900		62

Tupperware Brands Corp.		16,500		520

WD-40 Co.		5,470		187



				3,035



Housewares - 0.0%

Libbey, Inc.		3,200		56

Lifetime Brands, Inc.		3,100		63

National Presto Industries, Inc.		1,300		69



				188



Insurance - 3.4%

ACA Capital Holdings, Inc. *		3,600		22

Alfa Corp.		8,800		160

American Equity Investment Life Holding Co.		15,300		163

American Physicians Capital, Inc.		2,700		105

Amerisafe, Inc. *		5,800		96

Amtrust Financial Services, Inc.		7,300		111

Argo Group International Holdings Ltd. *		6,606		287

Aspen Insurance Holdings Ltd.		22,300		622

Assured Guaranty Ltd.		17,800		484

Baldwin & Lyons, Inc., Class B		2,250		61

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Insurance - 3.4% – (continued)

Citizens, Inc. of Texas *		6,100		$47

CNA Surety Corp. *		4,400		78

Commerce Group, Inc.		14,700		433

Crawford & Co., Class B *		6,400		41

Darwin Professional Underwriters, Inc. *		1,100		24

Delphi Financial Group, Inc., Class A		11,167		451

Donegal Group, Inc., Class A		3,577		58

eHealth, Inc. *		4,100		114

EMC Insurance Group, Inc.		1,600		42

Employers Holdings, Inc.		15,300		315

Enstar Group Ltd. *		1,700		215

FBL Financial Group, Inc., Class A		3,700		146

First Acceptance Corp. *		4,721		24

First Mercury Financial Corp. *		3,160		68

Flagstone Reinsurance Holdings Ltd.		1,700		23

FPIC Insurance Group, Inc. *		2,900		125

Greenlight Capital Re Ltd., Class A *		1,400		28

Harleysville Group, Inc.		3,700		118

Hilb, Rogal & Hobbs Co.		9,600		416

Horace Mann Educators Corp.		11,600		229

Independence Holding Co.		1,480		30

Infinity Property & Casualty Corp.		5,600		225

IPC Holdings Ltd.		17,900		516

James River Group, Inc.		2,300		75

Kansas City Life Insurance Co.		1,100		48

LandAmerica Financial Group, Inc.		4,400		172

Max Capital Group Ltd.		17,100		479

Meadowbrook Insurance Group, Inc. *		6,900		62

Midland (The) Co.		3,200		176

Montpelier Re Holdings Ltd.		27,410		485

National Interstate Corp.		2,400		74

National Western Life Insurance Co., Class A		600		154

Navigators Group, Inc. *		3,600		195

NYMAGIC, Inc.		1,600		45

Odyssey Re Holdings Corp.		7,700		286

Phoenix Companies (The), Inc.		30,400		429

Platinum Underwriters Holdings Ltd.		15,100		543

PMA Capital Corp., Class A *		9,100		86

Presidential Life Corp.		5,900		100

Primus Guaranty Ltd. *		10,100		106

ProAssurance Corp. *		8,946		482


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Insurance - 3.4% – (continued)

RAM Holdings Ltd. *		3,300		$31

RLI Corp.		6,026		342

Safety Insurance Group, Inc.		3,900		140

Scottish Re Group Ltd. *		15,200		48

SeaBright Insurance Holdings, Inc. *		6,600		113

Security Capital Assurance Ltd.		5,300		121

Selective Insurance Group, Inc.		15,800		336

State Auto Financial Corp.		3,900		114

Stewart Information Services Corp.		4,700		161

Tower Group, Inc.		5,900		154

Triad Guaranty, Inc. *		3,600		68

United America Indemnity Ltd., Class A *		5,300		114

United Fire & Casualty Co.		5,700		223

Universal American Financial Corp. *		10,300		235

Validus Holdings Ltd. *		4,200		102

Zenith National Insurance Corp.		9,600		431



				12,607



Internet - 3.4%

1-800-FLOWERS.COM, Inc., Class A *		7,200		83

Ariba, Inc. *		22,254		240

Art Technology Group, Inc. *		30,600		92

AsiaInfo Holdings, Inc. *		6,900		63

Authorize.Net Holdings, Inc. *		7,384		130

Avocent Corp. *		13,600		396

Blue Coat Systems, Inc. *		3,300		260

Blue Nile, Inc. *		3,600		339

Chordiant Software, Inc. *		9,320		129

CMGI, Inc. *		126,900		173

CNET Networks, Inc. *		42,200		314

Cogent Communications Group, Inc. *		13,400		313

comScore, Inc. *		1,592		43

CyberSource Corp. *		9,700		113

DealerTrack Holdings, Inc. *		8,400		352

Dice Holdings, Inc. *		4,475		46

Digital River, Inc. *		10,700		479

Earthlink, Inc. *		35,400		280

Equinix, Inc. *		8,601		763

eResearch Technology, Inc. *		13,475		153

FTD Group, Inc.		3,680		55

Global Sources Ltd. *		3,600		80

GSI Commerce, Inc. *		5,800		154

Harris Interactive, Inc. *		14,900		64

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 51 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Internet - 3.4% – (continued)

i2 Technologies, Inc. *		4,800		$73

Ibasis, Inc. *		7,200		77

Imergent, Inc.		3,600		81

Infospace, Inc.		8,600		151

Internap Network Services Corp. *		13,490		191

Internet Capital Group, Inc. *		10,700		128

Interwoven, Inc. *		11,700		167

iPass, Inc. *		17,700		74

j2 Global Communications, Inc. *		12,800		419

Keynote Systems, Inc. *		2,900		40

Knot (The), Inc. *		7,800		166

Lionbridge Technologies *		16,400		65

Liquidity Services, Inc. *		2,300		25

LoopNet, Inc. *		6,800		140

Mercadolibre, Inc. *		4,300		158

Move, Inc. *		27,500		76

NetFlix, Inc. *		12,200		253

NIC, Inc.		10,500		73

On2 Technologies, Inc. *		32,200		37

Online Resources Corp. *		6,200		78

Openwave Systems, Inc.		23,933		105

Orbitz Worldwide, Inc. *		9,045		102

Overstock.com, Inc. *		4,900		141

Perficient, Inc. *		8,100		177

Priceline.com, Inc. *		9,866		876

RealNetworks, Inc. *		26,500		180

RightNow Technologies, Inc. *		5,600		90

S1 Corp. *		16,400		148

Safeguard Scientifics, Inc. *		33,000		76

Sapient Corp. *		21,100		142

Secure Computing Corp. *		13,200		128

Shutterfly, Inc. *		3,269		104

Sohu.com, Inc. *		7,100		268

SonicWALL, Inc. *		17,700		155

Stamps.com, Inc. *		5,250		63

TechTarget, Inc. *		1,147		19

Terremark Worldwide, Inc. *		11,400		82

TheStreet.com, Inc.		5,100		62

TIBCO Software, Inc. *		54,100		400

Travelzoo, Inc. *		2,500		57

TriZetto Group, Inc. *		12,300		215

United Online, Inc.		17,600		264


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Internet - 3.4% – (continued)

ValueClick, Inc. *		25,900		$582

Vasco Data Security International, Inc. *		7,300		258

Vignette Corp. *		8,200		165

Vocus, Inc. *		3,900		114

Websense, Inc. *		11,700		231



				12,790



Investment Companies - 0.5%

Apollo Investment Corp.		27,943		581

Ares Capital Corp.		20,300		330

BlackRock Kelso Capital Corp.		2,700		39

Capital Southwest Corp.		700		86

Gladstone Capital Corp.		3,200		62

Hercules Technology Growth Capital, Inc.		6,800		90

Kohlberg Capital Corp.		2,800		42

MCG Capital Corp.		15,400		222

MVC Capital, Inc.		6,100		113

NGP Capital Resources Co.		4,900		80

Patriot Capital Funding, Inc.		6,400		86

PennantPark Investment Corp.		4,100		55

Prospect Capital Corp.		4,000		68

Technology Investment Capital Corp.		5,500		74



				1,928



Iron/Steel - 0.2%

Claymont Steel, Inc. *		1,500		30

Olympic Steel, Inc.		2,900		79

Ryerson, Inc.		6,832		230

Schnitzer Steel Industries, Inc., Class A		5,700		418

Universal Stainless & Alloy *		2,100		84

Wheeling-Pittsburgh Corp. *		4,000		77



				918



Leisure Time - 0.6%

Ambassadors Group, Inc.		4,900		187

Ambassadors International, Inc.		2,800		69

Arctic Cat, Inc.		3,525		58

Callaway Golf Co.		18,700		299

Life Time Fitness, Inc. *		8,600		527

Marine Products Corp.		3,300		28

Multimedia Games, Inc. *		7,800		66

Nautilus, Inc.		9,737		78

Polaris Industries, Inc.		9,301		406

Town Sports International Holdings, Inc. *		3,500		53

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Leisure Time - 0.6% – (continued)

WMS Industries, Inc. *		10,500		$347



				2,118



Lodging - 0.4%

Ameristar Casinos, Inc.		6,600		185

Gaylord Entertainment Co. *		10,600		564

Lodgian, Inc. *		5,570		66

Marcus Corp.		5,525		106


Monarch Casino & Resort, Inc. *		2,800		80

Morgans Hotel Group Co. *		6,200		135

MTR Gaming Group, Inc. *		6,400		61

Riviera Holdings Corp. *		3,000		84

Trump Entertainment Resorts, Inc. *		10,100		65



				1,346



Machinery - Construction & Mining - 0.3%

Astec Industries, Inc. *		5,300		304

Bucyrus International, Inc., Class A		9,900		722



				1,026



Machinery - Diversified - 1.3%

Albany International Corp., Class A		7,367		276

Altra Holdings, Inc. *		2,100		35

Applied Industrial Technologies, Inc.		11,153		344

Briggs & Stratton Corp.		12,800		322

Cascade Corp.		3,100		202

Chart Industries, Inc. *		3,900		125

Cognex Corp.		11,443		203

Columbus McKinnon Corp. of New York *		5,600		139

Flow International Corp. *		11,400		101

Gehl Co. *		2,940		66

Gerber Scientific, Inc. *		6,200		67

Gorman-Rupp (The) Co.		3,187		106

Hurco Cos., Inc. *		1,700		92

Intermec, Inc. *		15,500		405

Intevac, Inc. *		6,200		94

iRobot Corp. *		4,600		92

Kadant, Inc. *		3,820		107

Lindsay Corp.		3,555		156

Middleby Corp. *		3,600		232

NACCO Industries, Inc., Class A		1,500		155

Nordson Corp.		9,300		467

Robbins & Myers, Inc.		3,600		206

Sauer-Danfoss, Inc.		2,900		77

Tecumseh Products Co., Class A *		4,700		91


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Machinery - Diversified - 1.3% – (continued)

Tennant Co.		4,500		$219

TurboChef Technologies, Inc. *		5,900		78

Twin Disc, Inc.		1,400		82

Wabtec Corp.		12,574		471



				5,010



Media - 1.3%

Acacia Research - Acacia Technologies *		7,600		112

Belo Corp., Class A		22,000		382

Charter Communications, Inc., Class A *		103,700		268

Citadel Broadcasting Corp.		51,900		216

CKX, Inc. *		11,200		138

Courier Corp.		2,825		99

Cox Radio, Inc., Class A *		8,600		112

Crown Media Holdings, Inc., Class A *		4,000		29

Cumulus Media, Inc., Class A *		9,176		94

DG FastChannel, Inc. *		4,000		94

Dolan Media Co. *		3,000		73

Emmis Communications Corp., Class A		8,871		44

Entercom Communications Corp., Class A		8,600		166

Entravision Communications Corp., Class A *		18,400		170

Fisher Communications, Inc. *		2,100		105

GateHouse Media, Inc.		5,850		75

Gemstar-TV Guide International, Inc. *		69,800		486

Gray Television, Inc.		11,800		100

Journal Communications, Inc., Class A		12,000		114

Lee Enterprises, Inc.		11,900		185

Lin TV Corp., Class A *		7,100		92

Lodgenet Entertainment Corp. *		6,700		170

Martha Stewart Living Omnimedia, Inc., Class A *		6,800		79

Media General, Inc., Class A		6,800		187

Mediacom Communications Corp., Class A *		15,200		107

Nexstar Broadcasting Group, Inc., Class A *		600		6

Playboy Enterprises, Inc., Class B *		5,800		62

Primedia, Inc.		14,950		210

Radio One, Inc., Class D *		19,800		74

Salem Communications Corp., Class A		2,900		23

Scholastic Corp. *		8,900		310

Sinclair Broadcast Group, Inc., Class A		12,500		150

Spanish Broadcasting System, Inc., Class A *		12,600		33

Sun-Times Media Group, Inc., Class A *		18,071		41

Value Line, Inc.		400		20

Westwood One, Inc.		19,300		53

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 53 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Media - 1.3% – (continued)

World Wrestling Entertainment, Inc., Class A		5,800		$87



				4,766



Metal Fabrication/Hardware - 1.1%

Ampco-Pittsburgh Corp.		2,100		83

Castle (A.M.) & Co.		2,800		91

CIRCOR International, Inc.		4,400		200

Dynamic Materials Corp.		3,500		168

Foster (L.B.) Co., Class A *		3,300		143

Haynes International, Inc. *		2,900		247

Kaydon Corp.		7,313		380

Ladish Co., Inc. *		4,200		233

Lawson Products, Inc.		1,040		36

Mueller Industries, Inc.		9,600		347

Mueller Water Products, Inc., Class A		31,700		393

Northwest Pipe Co. *		3,100		117

Quanex Corp.		9,600		451

RBC Bearings, Inc. *		5,600		215

Sun Hydraulics, Inc.		3,450		110

Valmont Industries, Inc.		5,300		450

Worthington Industries, Inc.		17,900		422



				4,086



Mining - 1.0%

AMCOL International Corp.		6,314		209

Apex Silver Mines Ltd. *		15,900		309

Brush Engineered Materials, Inc. *		5,300		275

Century Aluminum Co. *		7,600		400

Coeur D’alene Mines Corp. *		74,300		282

Compass Minerals International, Inc.		8,300		282

Hecla Mining Co. *		31,700		284

Kaiser Aluminum Corp.		4,300		303

Royal Gold, Inc.		7,300		239

RTI International Metals, Inc. *		6,000		476

Stillwater Mining Co. *		11,350		117

U.S. Gold Corp. *		14,200		89

Uranium Resources, Inc. *		14,500		136

USEC, Inc. *		22,700		233



				3,634



Miscellaneous Manufacturing - 2.0%

Actuant Corp., Class A		7,055		458

Acuity Brands, Inc.		12,100		611

American Railcar Industries, Inc.		2,500		55

Ameron International Corp.		2,400		254


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Miscellaneous Manufacturing - 2.0% – (continued)

Aptargroup, Inc.		19,200		$727

AZZ, Inc. *		3,600		126

Barnes Group, Inc.		11,264		360

Blount International, Inc. *		10,400		118

Ceradyne, Inc. *		7,050		534

Clarcor, Inc.		13,324		456

EnPro Industries, Inc. *		5,600		227

ESCO Technologies, Inc. *		6,700		223

Federal Signal Corp.		12,400		191

Freightcar America, Inc.		3,700		141

GenTek, Inc. *		2,800		84

Griffon Corp. *		7,763		117

Hexcel Corp. *		24,507		557

Koppers Holdings, Inc.		4,000		154

Lancaster Colony Corp.		5,800		221

LSB Industries, Inc. *		4,500		106

Matthews International Corp., Class A		8,700		381

Myers Industries, Inc.		7,306		145

Park-Ohio Holdings Corp. *		1,700		44

Polypore International, Inc. *		4,000		56

Raven Industries, Inc.		4,400		176

Reddy Ice Holdings, Inc.		5,000		132

Smith & Wesson Holding Corp. *		8,300		159

Smith (A.O.) Corp.		5,300		233

Standex International Corp.		3,500		72

Sturm Ruger & Co., Inc. *		6,700		120

Tredegar Corp.		8,950		154

Trimas Corp. *		2,900		39



				7,431



Office Furnishings - 0.2%

Herman Miller, Inc.		17,700		480

Interface, Inc., Class A		13,900		251

Knoll, Inc.		11,860		211



				942



Office/Business Equipment - 0.1%

IKON Office Solutions, Inc.		27,900		359



Oil & Gas - 2.9%

Alon USA Energy, Inc.		3,800		128

APCO Argentina, Inc.		300		32

Arena Resources, Inc. *		3,700		242

Atlas America, Inc.		6,460		334

ATP Oil & Gas Corp. *		6,000		282

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Oil & Gas - 2.9% – (continued)

Atwood Oceanics, Inc. *		7,100		$544

Berry Petroleum Co., Class A		9,700		384

Bill Barrett Corp. *		7,670		302

Bois d’Arc Energy, Inc. *		4,600		88

BPZ Energy, Inc. *		11,400		89

Brigham Exploration Co. *		12,500		74

Bronco Drilling Co., Inc. *		7,600		112

Callon Petroleum Co. *		5,500		77

Carrizo Oil & Gas, Inc. *		6,600		296

Clayton Williams Energy, Inc. *		1,500		50

Comstock Resources, Inc. *		11,600		358

Concho Resources, Inc. *		6,100		90

Contango Oil & Gas Co. *		3,300		119

Crosstex Energy, Inc.		10,489		398

Delek US Holdings, Inc.		2,800		70

Delta Petroleum Corp. *		18,000		323

Edge Petroleum Corp. *		8,500		109

Encore Acquisition Co. *		15,100		478

Energy Partners Ltd. *		7,367		108

EXCO Resources, Inc. *		17,100		283

FX Energy, Inc. *		10,700		80

GeoGlobal Resources, Inc. *		8,600		31

GeoMet, Inc. *		2,988		15

GMX Resources, Inc. *		3,500		113

Goodrich Petroleum Corp. *		3,500		111

Grey Wolf, Inc. *		48,000		314

Gulfport Energy Corp. *		6,000		142

Harvest Natural Resources, Inc. *		10,200		122

Mariner Energy, Inc. *		22,161		459

McMoRan Exploration Co. *		8,800		118

Meridian Resource Corp. *		23,512		58

Oilsands Quest, Inc. *		26,500		117

Parallel Petroleum Corp. *		11,000		187

Parker Drilling Co. *		29,200		237

Penn Virginia Corp.		9,700		427

Petrohawk Energy Corp. *		44,800		736

Petroleum Development Corp. *		4,302		191

Petroquest Energy, Inc. *		11,300		121

Pioneer Drilling Co. *		11,400		139

Rosetta Resources, Inc. *		14,670		269

Stone Energy Corp. *		7,476		299

Sulphco, Inc. *		10,300		91


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Oil & Gas - 2.9% – (continued)

Swift Energy Co. *		7,890		$323

Toreador Resources Corp. *		4,700		56

TXCO Resources, Inc. *		8,000		72

Vaalco Energy, Inc. *		15,800		72

Venoco, Inc. *		3,563		61

Warren Resources, Inc. *		15,930		200

Whiting Petroleum Corp. *		10,900		484



				11,015



Oil & Gas Services - 1.9%

Allis-Chalmers Energy, Inc. *		7,300		138

Basic Energy Services, Inc. *		9,800		206

Cal Dive International, Inc. *		4,533		68

CARBO Ceramics, Inc.		5,200		264

Complete Production Services, Inc. *		11,900		244

Dawson Geophysical Co. *		2,300		178

Dril-Quip, Inc. *		6,500		321

Exterran Holdings, Inc. *		16,189		1,301

Flotek Industries, Inc. *		5,000		221

Geokinetics, Inc. *		2,200		51

Gulf Island Fabrication, Inc.		3,400		131

Hercules Offshore, Inc. *		22,800		595

Horizon Offshore, Inc. *		9,600		158

Hornbeck Offshore Services, Inc. *		5,900		217

ION Geophysical Corp. *		18,400		254

Lufkin Industries, Inc.		4,000		220

Markwest Hydrocarbon, Inc.		1,650		96

Matrix Service Co. *		7,800		163

NATCO Group, Inc., Class A *		4,100		212

Newpark Resources, Inc. *		23,280		125

Oil States International, Inc. *		12,800		618

RPC, Inc.		8,841		126

Superior Offshore International, Inc. *		2,300		26

Superior Well Services, Inc. *		3,300		75

T-3 Energy Services, Inc. *		1,000		43

Trico Marine Services, Inc. *		3,800		113

Union Drilling, Inc. *		3,800		55

W-H Energy Services, Inc. *		8,500		627

Willbros Group, Inc. *		7,300		248



				7,094



Packaging & Containers - 0.3%

AEP Industries, Inc. *		1,800		76

Chesapeake Corp.		5,300		45

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 55 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS
SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Packaging & Containers - 0.3% – (continued)

Graphic Packaging Corp. *		21,500		$97

Greif, Inc., Class A		8,600		522

Silgan Holdings, Inc.		7,100		382



				1,122



Pharmaceuticals - 3.4%

Acadia Pharmaceuticals, Inc. *		8,800		132

Adams Respiratory Therapeutics, Inc. *		9,400		362

Akorn, Inc. *		15,000		112

Alexza Pharmaceuticals, Inc. *		4,100		36

Alkermes, Inc. *		27,900		513

Allos Therapeutics, Inc. *		8,300		39

Alnylam Pharmaceuticals, Inc. *		9,000		295

Alpharma, Inc., Class A		11,450		245

Altus Pharmaceuticals, Inc. *		4,400		46

Amicus Therapeutics, Inc. *		3,900		65

Animal Health International, Inc. *		1,987		22

Array Biopharma, Inc. *		10,700		120

Auxilium Pharmaceuticals, Inc. *		8,200		173

Bentley Pharmaceuticals, Inc. *		5,500		69

Biodel, Inc. *		339		6

Bioenvision, Inc. *		15,900		84

BioMarin Pharmaceuticals, Inc. *		26,600		662

Bradley Pharmaceuticals, Inc. *		4,100		75

Cadence Pharmaceuticals, Inc. *		3,163		44

Cubist Pharmaceuticals, Inc. *		14,400		304

CV Therapeutics, Inc. *		16,900		152

Cypress Bioscience, Inc. *		9,200		126

CytRx Corp. *		25,300		88

Dendreon Corp. *		22,900		176

Discovery Laboratories, Inc. *		24,900		67

Durect Corp. *		16,700		92

HealthExtras, Inc. *		7,400		206

I-Flow Corp. *		6,400		119

Idenix Pharmaceuticals, Inc. *		6,800		20

Indevus Pharmaceuticals, Inc. *		17,800		123

Isis Pharmaceuticals, Inc. *		23,300		349

Javelin Pharmaceuticals, Inc. *		9,600		48

KV Pharmaceutical Co., Class A *		10,100		289

Ligand Pharmaceuticals, Inc., Class B		21,500		115

Mannatech, Inc.		4,700		38

MannKind Corp. *		9,800		95

Medarex, Inc. *		34,600		490


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Pharmaceuticals - 3.4% – (continued)

Medicines Co. *		13,500		$240

Medicis Pharmaceutical Corp., Class A		14,700		449

MGI Pharma, Inc. *		21,900		608

Nabi Biopharmaceuticals *		16,500		67

Nastech Pharmaceutical Co., Inc. *		7,500		100

Neurocrine Biosciences, Inc. *		10,400		104

Neurogen Corp. *		6,400		28

Noven Pharmaceuticals, Inc. *		7,400		118

Obagi Medical Products, Inc. *		1,100		20

Onyx Pharmaceuticals, Inc. *		14,600		635

OSI Pharmaceuticals, Inc. *		15,900		540

Osiris Therapeutics, Inc. *		2,600		34

Pain Therapeutics, Inc. *		9,700		91

Par Pharmaceutical Cos., Inc. *		9,300		173

Penwest Pharmaceuticals Co. *		6,900		76

Perrigo Co.		21,500		459

PetMed Express, Inc. *		6,600		92

PharMerica Corp. *		8,254		123

Pharmion Corp. *		7,200		332

Pozen, Inc. *		8,200		91

Progenics Pharmaceuticals, Inc. *		6,882		152

Rigel Pharmaceuticals, Inc. *		7,100		67

Salix Pharmaceuticals Ltd. *		13,700		170

Santarus, Inc. *		15,200		40

Sciele Pharma, Inc. *		8,500		221

Sirtris Pharmaceuticals, Inc. *		142		2

Somaxon Pharmaceuticals, Inc. *		3,300		34

Synta Pharmaceuticals Corp. *		1,700		11

United Therapeutics Corp. *		5,400		359

USANA Health Sciences, Inc. *		2,400		105

Valeant Pharmaceuticals International *		25,100		389

Vanda Pharmaceuticals, Inc. *		7,300		102

Viropharma, Inc. *		18,600		166

Vivus, Inc. *		12,700		63

Xenoport, Inc. *		5,800		273

Zymogenetics, Inc. *		10,300		134



				12,665



Real Estate - 0.2%

Avatar Holdings, Inc. *		1,600		80

Consolidated-Tomoka Land Co. of Florida		1,600		108

Grubb & Ellis Co. *		5,400		50

HFF, Inc., Class A *		3,800		45

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Real Estate - 0.2% – (continued)

Hilltop Holdings, Inc. *		12,674		$149

Meruelo Maddux Properties, Inc. *		12,300		73

Tarragon Corp. *		3,962		10

Thomas Properties Group, Inc.		5,000		60



				575



Real Estate Investment Trusts - 5.6%

Acadia Realty Trust		8,685		236

Agree Realty Corp.		2,100		66

Alesco Financial, Inc.		19,300		95

Alexander’s, Inc. *		500		193

Alexandria Real Estate Equities, Inc.		8,299		799

American Campus Communities, Inc.		6,300		184

American Financial Realty Trust		33,800		272

Anthracite Capital, Inc.		15,600		142

Anworth Mortgage Asset Corp.		12,400		67

Arbor Realty Trust, Inc.		4,000		76

Ashford Hospitality Trust, Inc.		29,781		299

Associated Estates Realty Corp.		2,600		34

BioMed Realty Trust, Inc.		17,600		424

BRT Realty Trust		900		16

Capital Lease Funding, Inc.		9,100		93

Capital Trust, Inc. of New York, Class A		4,300		153

CBRE Realty Finance, Inc.		6,000		35

Cedar Shopping Centers, Inc.		9,800		133

Corporate Office Properties Trust		11,117		463

Cousins Properties, Inc.		10,300		302

Crystal River Capital, Inc.		5,600		94

DCT Industrial Trust, Inc.		43,700		457

Deerfield Triarc Capital Corp.		13,900		126

DiamondRock Hospitality Co.		23,400		407

Digital Realty Trust, Inc.		13,500		532

EastGroup Properties, Inc.		6,500		294

Education Realty Trust, Inc.		8,760		118

Entertainment Properties Trust		7,200		366

Equity Inns, Inc.		15,500		350

Equity Lifestyle Properties, Inc.		5,300		275

Equity One, Inc.		10,300		280

Extra Space Storage, Inc.		15,700		242

FelCor Lodging Trust, Inc.		16,200		323

First Industrial Realty Trust, Inc.		13,000		505

First Potomac Realty Trust		6,300		137

Franklin Street Properties Corp.		15,742		272


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Real Estate Investment Trusts - 5.6% – (continued)

Getty Realty Corp.		4,800		$131

Glimcher Realty Trust		10,100		237

GMH Communities Trust		10,800		84

Gramercy Capital Corp. of New York		5,100		128

Healthcare Realty Trust, Inc.		12,400		331

Hersha Hospitality Trust		8,400		83

Highwoods Properties, Inc.		16,000		587

Home Properties, Inc.		8,600		449

IMPAC Mortgage Holdings, Inc.		20,900		32

Inland Real Estate Corp.		17,600		273

Investors Real Estate Trust		12,700		137

JER Investors Trust, Inc.		8,700		108

Kite Realty Group Trust		7,200		135

LaSalle Hotel Properties		10,400		438

Lexington Realty Trust		17,140		343

LTC Properties, Inc.		6,400		151

Luminent Mortgage Capital, Inc.		11,300		19

Maguire Properties, Inc.		9,700		251

Medical Properties Trust, Inc.		11,000		146

MFA Mortgage Investments, Inc.		21,700		175

Mid-America Apartment Communities, Inc.		6,500		324

Mission West Properties		3,400		41

National Health Investors, Inc.		6,500		201

National Retail Properties, Inc.		17,300		422

Nationwide Health Properties, Inc.		24,900		750

Newcastle Investment Corp.		12,000		211

NorthStar Realty Finance Corp.		17,600		175

Novastar Financial, Inc.		3,925		35

OMEGA Healthcare Investors, Inc.		15,800		245

Parkway Properties, Inc. of Maryland		3,900		172

Pennsylvania Real Estate Investment Trust		8,301		323

Post Properties, Inc.		11,900		460

PS Business Parks, Inc.		4,300		244

Quadra Realty Trust, Inc.		2,600		25

RAIT Financial Trust		18,000		148

Ramco-Gershenson Properties		4,600		144

Realty Income Corp.		28,400		794

Redwood Trust, Inc.		5,300		176

Republic Property Trust		7,400		109

Resource Capital Corp.		7,600		86

Saul Centers, Inc.		3,000		154

Senior Housing Properties Trust		20,900		461

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 57 EQUITY INDEX FUNDS

equity index funds


SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Real Estate Investment Trusts - 5.6% – (continued)
Sovran Self Storage, Inc.		4,900		$225

Strategic Hotels & Resorts, Inc.		19,262		397

Sun Communities, Inc.		4,900		147

Sunstone Hotel Investors, Inc.		15,700		403

Tanger Factory Outlet Centers, Inc.		8,100		329

U-Store-It Trust		12,900		170

Universal Health Realty Income Trust		3,300		117

Urstadt Biddle Properties, Inc., Class A		5,800		90

Washington Real Estate Investment Trust		13,100		435

Winthrop Realty Trust		9,200		62



				21,173


Retail - 5.6%

99 Cents Only Stores *		12,200		125

AC Moore Arts & Crafts, Inc. *		4,400		69

Aeropostale, Inc. *		20,100		383

AFC Enterprises *		8,200		123

Applebee’s International, Inc.		21,000		522

Asbury Automotive Group, Inc.		5,800		115

Bebe Stores, Inc.		6,500		95

Benihana, Inc., Class A *		2,400		42

Big 5 Sporting Goods Corp.		6,200		116

BJ’s Restaurants, Inc. *		3,800		80

Blockbuster, Inc., Class A *		54,400		292

Bob Evans Farms, Inc.		9,300		281

Bon-Ton Stores (The), Inc.		3,300		75

Books-A-Million, Inc.		4,700		62

Borders Group, Inc.		15,200		203

Brown Shoe Co., Inc.		11,400		221

Buckle (The), Inc.		3,900		148

Buffalo Wild Wings, Inc. *		4,000		151

Build-A-Bear Workshop, Inc. *		4,900		87

Cabela’s, Inc. *		9,400		222

Cache, Inc. *		4,100		73

California Pizza Kitchen, Inc. *		8,100		142

Carrols Restaurant Group, Inc. *		1,600		18

Casey’s General Stores, Inc.		14,000		388

Cash America International, Inc.		7,700		290

Casual Male Retail Group, Inc. *		10,800		97

Cato (The) Corp., Class A		8,400		172

CBRL Group, Inc.		6,400		261

CEC Entertainment, Inc. *		7,392		199

Charlotte Russe Holding, Inc. *		7,500		110


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Retail - 5.6% – (continued)
Charming Shoppes, Inc. *		34,200		$287

Children’s Place Retail Stores (The), Inc. *		5,800		141

Chipotle Mexican Grill, Inc., Class B *		8,500		909

Christopher & Banks Corp.		9,425		114

Citi Trends, Inc. *		4,000		87

CKE Restaurants, Inc.		16,300		264

Collective Brands, Inc. *		16,900		373

Conn’s, Inc. *		2,600		62

CSK Auto Corp. *		12,000		128

DEB Shops, Inc.		1,400		38

Denny’s Corp. *		26,300		105

Domino’s Pizza, Inc.		10,400		173

Dress Barn, Inc. *		12,400		211

DSW, Inc., Class A *		4,800		121

Eddie Bauer Holdings, Inc. *		6,900		59

Ezcorp, Inc., Class A *		11,200		151

Finish Line (The), Inc., Class A		13,300		58

First Cash Financial Services, Inc. *		7,500		176

Fred’s, Inc.		11,025		116

Gander Mountain Co. *		2,300		12

Genesco, Inc. *		5,900		272

Group 1 Automotive, Inc.		6,300		211

Guitar Center, Inc. *		7,900		468

Haverty Furniture Cos., Inc.		6,200		54

hhgregg, Inc. *		145		2

Hibbett Sports, Inc. *		9,243		229

HOT Topic, Inc. *		12,125		90

IHOP Corp.		5,000		317

Insight Enterprises, Inc. *		13,050		337

J Crew Group, Inc. *		10,600		440

Jack in the Box, Inc. *		8,100		525

Jamba, Inc. *		15,300		108

Jo-Ann Stores, Inc. *		6,610		139

Jos. A. Bank Clothiers, Inc. *		5,033		168

Kenneth Cole Productions, Inc., Class A		2,542		49

Krispy Kreme Doughnuts, Inc. *		15,100		60

Landry’s Restaurants, Inc.		4,484		119

Lithia Motors, Inc., Class A		4,300		73

Longs Drug Stores Corp.		8,600		427

Lululemon Athletica, Inc. *		4,900		206

MarineMax, Inc. *		4,500		66

McCormick & Schmick’s Seafood Restaurants, Inc. *		3,300		62

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Retail - 5.6% – (continued)

Men’s Wearhouse, Inc.		14,100		$712

Morton’s Restaurant Group, Inc. *		2,700		43

Movado Group, Inc.		4,500		144

New York & Co., Inc. *		5,900		36

NexCen Brands, Inc. *		9,800		66

Nu Skin Enterprises, Inc., Class A		14,800		239

O’Charleys, Inc.		6,300		96

P.F. Chang’s China Bistro, Inc. *		6,700		198

Pacific Sunwear of California, Inc. *		18,200		269

Pantry (The), Inc. *		6,500		167

Papa John’s International, Inc. *		6,550		160

PC Connection, Inc. *		1,000		13

Pep Boys - Manny, Moe & Jack		10,900		153

Pier 1 Imports, Inc. *		22,900		108

Pricesmart, Inc.		2,800		66

Rare Hospitality International, Inc. *		9,175		350

Red Robin Gourmet Burgers, Inc. *		4,500		193

Regis Corp.		11,500		367

Retail Ventures, Inc. *		6,200		65

Ruby Tuesday, Inc.		14,100		259

Rush Enterprises, Inc., Class A *		6,500		165

Ruth’s Chris Steak House *		6,400		91

Sally Beauty Holdings, Inc. *		22,500		190

School Specialty, Inc. *		5,750		199

Select Comfort Corp. *		14,250		199

Shoe Carnival, Inc. *		2,300		36

Sonic Automotive, Inc., Class A		8,100		194

Sonic Corp. *		19,100		447

Stage Stores, Inc.		11,475		209

Steak n Shake (The) Co. *		7,704		116

Stein Mart, Inc.		7,100		54

Syms Corp.		1,600		24

Systemax, Inc.		2,200		45

Talbots, Inc.		6,200		112

Texas Roadhouse, Inc., Class A *		14,300		167

Triarc Cos., Inc., Class B		16,803		210

Tuesday Morning Corp.		9,800		88

Tween Brands, Inc. *		7,900		259

Under Armour, Inc., Class A *		6,400		383

West Marine, Inc. *		4,100		47

Wet Seal (The), Inc., Class A *		18,500		72

World Fuel Services Corp.		7,500		306


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Retail - 5.6% – (continued)
Zale Corp. *		12,700		$294

Zumiez, Inc. *		4,100		182




				20,962


Savings & Loans - 1.3%

Abington Bancorp, Inc.		2,400		23

Anchor BanCorp Wisconsin, Inc.		5,300		143

BankAtlantic Bancorp, Inc., Class A		11,600		101

BankFinancial Corp.		6,700		106

BankUnited Financial Corp., Class A		9,600		149

Beneficial Mutual Bancorp, Inc. *		9,700		95

Berkshire Hills Bancorp, Inc.		2,400		73

Brookline Bancorp, Inc.		19,603		227

Clifton Savings Bancorp, Inc.		3,400		40

Dime Community Bancshares		6,825		102

Downey Financial Corp.		5,500		318

First Financial Holdings, Inc.		3,300		103

First Niagara Financial Group, Inc.		31,519		446

First Place Financial Corp. of Ohio		4,800		85

FirstFed Financial Corp. *		4,850		240

Flagstar Bancorp, Inc.		11,200		109

Flushing Financial Corp.		5,425		91

Franklin Bank Corp. of Houston *		7,400		68

Investors Bancorp, Inc. *		13,200		187

Kearny Financial Corp.		5,900		76

KNBT Bancorp, Inc.		8,000		132

NASB Financial, Inc.		1,000		36

NewAlliance Bancshares, Inc.		29,400		432

Northwest Bancorp, Inc.		4,700		134

Partners Trust Financial Group, Inc.		12,330		150

PFF Bancorp, Inc.		6,190		95

Provident Financial Services, Inc.		17,329		284

Provident New York Bancorp		11,661		153

Rockville Financial, Inc.		2,200		31

Roma Financial Corp.		3,000		51

TierOne Corp.		4,700		124

United Community Financial Corp. of Ohio		7,400		54

ViewPoint Financial Group		3,300		61

Wauwatosa Holdings, Inc. *		2,900		47

Westfield Financial, Inc.		3,937		38

WSFS Financial Corp.		1,600		100



				4,704

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 59 EQUITY INDEX FUNDS

equity index funds


SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Semiconductors - 3.2%
Actel Corp. *		7,100		$76

Advanced Analogic Technologies, Inc. *		11,200		119

AMIS Holdings, Inc. *		15,500		150

Amkor Technology, Inc. *		28,000		323

Anadigics, Inc. *		14,800		268

Applied Micro Circuits Corp. *		73,500		232

Asyst Technologies, Inc. *		13,800		73

ATMI, Inc. *		10,000		297

AuthenTec, Inc. *		337		3

Axcelis Technologies, Inc. *		27,700		142

Brooks Automation, Inc. *		19,644		280

Cabot Microelectronics Corp. *		6,200		265

Cavium Networks, Inc. *		1,196		39

Cirrus Logic, Inc. *		22,900		147

Cohu, Inc.		6,200		116

Conexant Systems, Inc. *		129,900		156

Credence Systems Corp. *		27,480		85

Diodes, Inc. *		8,137		261

DSP Group, Inc. *		7,400		117

Emulex Corp. *		22,100		424

Entegris, Inc. *		30,877		268

Exar Corp. *		8,600		112

Formfactor, Inc. *		12,700		563

Genesis Microchip, Inc. *		11,300		89

Hittite Microwave Corp. *		3,800		168

IPG Photonics Corp. *		2,762		54

IXYS Corp. *		7,400		77

Kulicke & Soffa Industries, Inc. *		17,300		147

Lattice Semiconductor Corp. *		29,800		134

LTX Corp. *		16,700		60

Mattson Technology, Inc. *		14,400		125

Micrel, Inc.		14,400		155

Microsemi Corp. *		21,300		594

Microtune, Inc. *		14,500		87

MIPS Technologies, Inc. *		11,900		94

MKS Instruments, Inc. *		12,400		236

Monolithic Power Systems, Inc. *		6,400		163

Netlogic Microsystems, Inc. *		4,400		159

Omnivision Technologies, Inc. *		14,600		332

ON Semiconductor Corp. *		66,000		829

Pericom Semiconductor Corp. *		7,100		83

Photronics, Inc. *		10,800		123


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Semiconductors - 3.2% – (continued)
PLX Technology, Inc. *		6,800		$73

PMC - Sierra, Inc. *		54,600		458

Rudolph Technologies, Inc. *		6,632		92

Semitool, Inc. *		6,100		59

Semtech Corp. *		18,100		371

Silicon Image, Inc. *		22,300		115

Sirf Technology Holdings, Inc. *		14,000		299

Skyworks Solutions, Inc. *		41,500		375

Spansion, Inc., Class A *		22,000		186

Standard Microsystems Corp. *		6,100		234

Supertex, Inc. *		3,600		144

Syntax-Brillian Corp. *		16,900		69

Techwell, Inc. *		4,700		50

Tessera Technologies, Inc. *		13,500		506

TriQuint Semiconductor, Inc. *		38,354		188

Ultra Clean Holdings *		5,900		87

Ultratech, Inc. *		6,500		90

Veeco Instruments, Inc. *		9,300		180

Volterra Semiconductor Corp. *		6,800		83

Zoran Corp. *		12,865		260



				12,144


Software - 3.5%
ACI Worldwide, Inc. *		10,500		235

Actuate Corp. *		15,500		100

Advent Software, Inc. *		4,700		221

Allscripts Healthcare Solutions, Inc. *		14,100		381

American Reprographics Co. *		7,140		134

Ansys, Inc. *		21,500		735

Aspen Technology, Inc. *		23,700		339

Avid Technology, Inc. *		11,400		309

Blackbaud, Inc.		11,416		288

Blackboard, Inc. *		8,100		371

BladeLogic, Inc. *		1,500		39

Borland Software Corp. *		21,400		93

Bottomline Technologies, Inc. *		5,600		70

Commvault Systems, Inc. *		10,147		188

Computer Programs & Systems, Inc.		2,600		69

Concur Technologies, Inc. *		9,500		299

CSG Systems International, Inc. *		11,300		240

DemandTec, Inc. *		664		9

Digi International, Inc. *		6,800		97

DivX, Inc. *		5,300		79

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Software - 3.5% – (continued)
Double-Take Software, Inc. *		3,000		$57

Eclipsys Corp. *		12,200		285

Epicor Software Corp. *		15,600		215

EPIQ Systems, Inc. *		6,225		117

FalconStor Software, Inc. *		10,500		127

Glu Mobile, Inc. *		1,900		17

Informatica Corp. *		22,700		356

infoUSA, Inc.		9,150		85

Innerworkings, Inc. *		4,894		84

InPhonic, Inc. *		6,500		18

Interactive Intelligence, Inc. *		2,800		53

INVESTools, Inc. *		15,000		181

JDA Software Group, Inc. *		8,000		165

Lawson Software, Inc. *		36,700		367

Mantech International Corp., Class A *		4,900		176

MicroStrategy, Inc., Class A *		2,500		198

Midway Games, Inc. *		9,789		43

Monotype Imaging Holdings, Inc. *		2,900		37

MSC.Software Corp. *		10,000		136

Nuance Communications, Inc. *		36,010		695

Omnicell, Inc. *		8,500		243

Omniture, Inc. *		8,200		249

OpenTV Corp., Class A *		18,700		28

Packeteer, Inc. *		11,100		84

Parametric Technology Corp. *		31,620		551

PDF Solutions, Inc. *		5,800		57

Pegasystems, Inc.		3,400		41

Phase Forward, Inc. *		11,600		232

Progress Software Corp. *		10,600		321

PROS Holdings, Inc. *		700		8

QAD, Inc.		3,900		34

Quality Systems, Inc.		4,500		165

Quest Software, Inc. *		18,100		311

Renaissance Learning, Inc.		2,300		28

Schawk, Inc.		4,400		99

Seachange International, Inc. *		5,800		40

Smith Micro Software, Inc. *		8,500		137

Solera Holdings, Inc. *		5,900		106

SourceForge, Inc. *		18,500		45

SPSS, Inc. *		5,300		218

Sybase, Inc. *		23,700		548

Synchronoss Technologies, Inc. *		4,800		202


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Software - 3.5% – (continued)
SYNNEX Corp. *		3,400		$70

Take-Two Interactive Software, Inc. *		18,900		323

Taleo Corp., Class A *		4,900		125

THQ, Inc. *		17,225		430

Trident Microsystems, Inc. *		14,800		235

Tyler Technologies, Inc. *		10,800		144

Ultimate Software Group, Inc. *		6,600		230

Visual Sciences, Inc. *		6,000		87

Wind River Systems, Inc. *		19,400		228



				13,327


Storage/Warehousing - 0.1%
Mobile Mini, Inc. *		9,500		229


Telecommunications - 4.3%

3Com Corp. *		108,200		534

Acme Packet, Inc. *		4,700		72

Adaptec, Inc. *		31,300		120

Adtran, Inc.		16,700		385

Airvana, Inc. *		669		4

Alaska Communications Systems Group, Inc.		11,500		166

Anaren, Inc. *		4,600		65

Andrew Corp. *		42,300		586

Anixter International, Inc. *		8,000		660

Arris Group, Inc. *		28,300		349

Atheros Communications, Inc. *		14,100		423

Atlantic Tele-Network, Inc.		1,800		65

Avanex Corp. *		56,500		93

BigBand Networks, Inc. *		2,383		15

Black Box Corp.		4,500		192

C-COR, Inc. *		13,200		152

Cbeyond, Inc. *		5,700		233

Centennial Communications Corp. *		6,200		63

Cincinnati Bell, Inc. *		67,500		333

Comtech Telecommunications Corp. *		6,025		322

Consolidated Communications Holdings, Inc.		5,600		110

CPI International, Inc. *		1,900		36

Ditech Networks, Inc. *		8,900		47

Dobson Communications Corp., Class A *		39,200		501

EMS Technologies, Inc. *		4,300		105

Extreme Networks *		32,700		126

Fairpoint Communications, Inc.		7,510		142

FiberTower Corp. *		27,700		106

Finisar Corp. *		66,100		185

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 61 EQUITY INDEX FUNDS

equity index funds


SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Telecommunications - 4.3% – (continued)
Foundry Networks, Inc. *		39,900		$709

General Communication, Inc., Class A *		14,700		178

GeoEye, Inc. *		3,800		98

Global Crossing Ltd. *		6,800		143

Globalstar, Inc. *		5,154		38

Golden Telecom, Inc.		4,500		362

Harmonic, Inc. *		22,800		242

Harris Stratex Networks, Inc., Class A *		6,600		115

Hughes Communications, Inc. *		1,300		67

Hypercom Corp. *		14,700		66

ICO Global Communications Holdings Ltd. *		23,800		83

IDT Corp., Class B		12,300		103

Infinera Corp. *		4,266		86

InterDigital, Inc. *		12,200		254

Iowa Telecommunications Services, Inc.		8,600		171

iPCS, Inc.		4,600		158

Ixia *		11,700		102

Knology, Inc. *		5,900		99

Loral Space & Communications, Inc. *		3,100		123

Mastec, Inc. *		11,000		155

MRV Communications, Inc. *		34,334		85

Netgear, Inc. *		8,900		271

Network Equipment Technologies, Inc. *		5,600		81

Nextwave Wireless, Inc. *		5,400		31

North Pittsburgh Systems, Inc.		4,100		97

Novatel Wireless, Inc. *		8,100		183

NTELOS Holdings Corp.		6,500		191

Oplink Communications, Inc. *		5,028		69

OpNext, Inc. *		5,232		61

Optium Corp. *		2,190		23

Orbcomm, Inc. *		6,100		46

PAETEC Holding Corp. *		19,687		245

Plantronics, Inc.		12,700		363

Polycom, Inc. *		25,100		674

Powerwave Technologies, Inc. *		31,800		196

Premiere Global Services, Inc. *		18,400		233

RCN Corp. *		8,000		98

RF Micro Devices, Inc. *		50,400		339

Rural Cellular Corp., Class A *		3,500		152

SAVVIS, Inc. *		7,500		291

Shenandoah Telecom Co.		6,429		140

ShoreTel, Inc. *		1,363		20


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Telecommunications - 4.3% – (continued)
Sirenza Microdevices, Inc. *		11,600		$201

Sonus Networks, Inc. *		65,500		400

Starent Networks Corp. *		3,276		69

SureWest Communications		4,000		100

Switch & Data Facilities Co., Inc. *		3,878		63

Sycamore Networks, Inc. *		47,800		195

Symmetricom, Inc. *		12,600		59

Syniverse Holdings, Inc. *		6,480		103

Tekelec *		15,600		189

Time Warner Telecom, Inc., Class A *		39,400		866

USA Mobility, Inc. *		5,976		101

UTStarcom, Inc. *		31,400		115

Viasat, Inc. *		6,100		188

Vonage Holdings Corp. *		13,200		14



				16,094


Textiles - 0.1%

G&K Services, Inc., Class A		5,750		231

Unifirst Corp. of Massachusetts		3,400		128



				359


Toys, Games & Hobbies - 0.2%

Jakks Pacific, Inc. *		8,150		218

Leapfrog Enterprises, Inc. *		9,300		77

Marvel Entertainment, Inc. *		13,600		319

RC2 Corp. *		5,509		152

Topps (The) Co.		9,800		95



				861


Transportation - 1.6%

ABX Air, Inc. *		15,800		112

American Commercial Lines, Inc. *		14,500		344

Arkansas Best Corp.		6,200		203

Arlington Tankers Ltd.		2,400		59

Atlas Air Worldwide Holdings, Inc. *		3,999		207

Bristow Group, Inc. *		5,227		229

Celadon Group, Inc. *		6,300		74

Double Hull Tankers, Inc.		3,800		57

Dynamex, Inc. *		3,010		77

Eagle Bulk Shipping, Inc.		10,200		263

Forward Air Corp.		8,650		258

Genco Shipping & Trading Ltd.		4,400		288

General Maritime Corp.		6,700		187

Genesee & Wyoming, Inc., Class A *		9,225		266

Golar LNG Ltd.		10,100		225

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 62 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 97.0% – CONTINUED

Transportation - 1.6% – (continued)

Gulfmark Offshore, Inc. *		6,600		$321

Heartland Express, Inc.		16,370		234

Horizon Lines, Inc., Class A		8,400		256

HUB Group, Inc., Class A *		10,800		324

Knight Transportation, Inc.		14,839		255

Knightsbridge Tankers Ltd.		3,700		100

Marten Transport Ltd. *		4,150		64

Nordic American Tanker Shipping		6,400		251

Old Dominion Freight Line, Inc. *		7,725		185

Pacer International, Inc.		10,700		204

Patriot Transportation Holding, Inc. *		400		39

PHI, Inc. *		3,700		112

Saia, Inc. *		4,600		76

Ship Finance International Ltd.		9,100		239

TBS International Ltd., Class A *		1,700		70

Ultrapetrol Bahamas Ltd. *		3,300		55

Universal Truckload Services, Inc. *		1,700		37

Werner Enterprises, Inc.		13,900		238



				5,909


Trucking & Leasing - 0.1%
AMERCO, Inc. *		2,800		178

Greenbrier Cos., Inc.		4,300		115

TAL International Group, Inc.		4,400		110



				403


Water - 0.2%
American States Water Co.		4,600		179

California Water Service Group		4,900		189

Consolidated Water Co., Inc.		3,200		96

Pico Holdings, Inc. *		3,500		146

SJW Corp.		4,100		140

Southwest Water Co.		6,197		78



				828


Total Common Stocks


(Cost $287,617)				364,419


OTHER - 0.0%
Escrow Position PetroCorp.		1,900		-


Total Other


(Cost $ -)				-


	NUMBER		VALUE
	OF SHARES		(000S)
RIGHTS - 0.0%
CSF Holdings, Inc.		4,212		$	-

Exide Technologies Com NE		14,500			-


Total Rights


(Cost $ -)					-


	NUMBER		VALUE
	OF WARRANTS		(000S)
WARRANTS - 0.0%
Imperial Credit Industries, Exp. 1/31/08, Strike $2.15 *		33	-

Optical Cable Corp., Exp. 10/24/07, Strike $4.88 *		147	-

Optical Cable Corp., Fractional Shares, Exp. 10/24/07, Strike $4.88 *		52,400	-

Pegasus Wireless Corp., Exp 12/18/08, Strike $8.00 *		1,680	-


Total Warrants


(Cost $ -)			-


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 3.1%
ABN Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$10,845		10,845

U.S. Treasury Bill, ⁽¹⁾ 5.01%, 1/17/08		715		705


Total Short-Term Investments

(Cost $11,550)				11,550


Total Investments - 100.1%

(Cost $299,167)				375,969
Liabilities less Other Assets - (0.1)%				(446	)


NET ASSETS - 100.0%			$	375,523

(1)		Security pledged as collateral to cover margin requirements for open futures contracts.

*		Non-Income Producing Security

Percentages shown are based on Net Assets.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 63 EQUITY INDEX FUNDS

equity index funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

SMALL CAP INDEX FUND (continued)

At September 30, 2007, the Small Cap Index Fund had open futures contracts as follows:

NOTIONAL

UNREALIZED

NUMBER OF

AMOUNT

CONTRACT

GAIN

TYPE

CONTRACTS

(000S)

POSITION

EXP.

(000S)

Russell 2000

141

11,466

Long

12/07

374

At September 30, 2007, the industry sectors for the Small Cap Index Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		15.0	%

Consumer Staples		3.0

Energy		5.9

Financials		20.3

Health Care		13.2

Industrials		15.0

Information Technology		18.3

Materials		5.0

Telecommunication Services		1.5

Utilities		2.8



Total		100.0	%

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 64 NORTHERN FUNDS SEMIANNUAL REPORT


		equity index funds
SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

STOCK INDEX FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3%

Advertising - 0.1%
Interpublic Group of Cos. (The), Inc. *		24,335		$253

Omnicom Group, Inc.		18,900		909


				1,162


Aerospace/Defense - 2.3%
Boeing (The) Co.		46,568		4,889

General Dynamics Corp.		23,500		1,985

Goodrich Corp.		6,800		464

L-3 Communications Holdings, Inc.		7,000		715

Lockheed Martin Corp.		20,646		2,240

Northrop Grumman Corp.		20,798		1,622

Raytheon Co.		26,700		1,704

Rockwell Collins, Inc.		10,400		760

United Technologies Corp.		58,900		4,740


				19,119


Agriculture - 1.3%
Altria Group, Inc.		125,500		8,726

Archer-Daniels-Midland Co.		39,292		1,300

Reynolds American, Inc.		10,400		661

UST, Inc.		9,000		447


				11,134


Airlines - 0.1%

Southwest Airlines Co.		45,330		671


Apparel - 0.4%

Coach, Inc. *		22,100		1,045

Jones Apparel Group, Inc.		5,500		116

Liz Claiborne, Inc.		6,200		213

NIKE, Inc., Class B		23,300		1,367

Polo Ralph Lauren Corp.		3,500		272

VF Corp.		4,928		398


				3,411


Auto Manufacturers - 0.4%
Ford Motor Co. *		122,275		1,038

General Motors Corp.		33,000		1,211

PACCAR, Inc.		14,852		1,266


				3,515


Auto Parts & Equipment - 0.2%

Goodyear Tire & Rubber (The) Co. *		12,758		388

Johnson Controls, Inc.		11,700		1,382


				1,770


Banks - 5.8%

Bank of America Corp.		262,540		13,198


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Banks - 5.8% – (continued)
Bank of New York Mellon (The) Corp.		67,947		$2,999

BB&T Corp.		33,500		1,353

Capital One Financial Corp.		24,403		1,621

Comerica, Inc.		8,150		418

Commerce Bancorp, Inc. of New Jersey		11,900		461

Fifth Third Bancorp		33,930		1,150

First Horizon National Corp.		8,300		221

Huntington Bancshares, Inc.		23,772		404

KeyCorp		21,800		705

M&T Bank Corp.		3,900		403

Marshall & Ilsley Corp.		15,800		692

National City Corp.		37,900		951

Northern Trust Corp. ⁽¹⁾		10,800		716

PNC Financial Services Group, Inc.		20,600		1,403

Regions Financial Corp.		42,904		1,265

State Street Corp.		23,700		1,615

SunTrust Banks, Inc.		21,400		1,619

Synovus Financial Corp.		17,850		501

U.S. Bancorp		104,377		3,395

Wachovia Corp.		112,687		5,651

Wells Fargo & Co.		197,114		7,021

Zions Bancorporation		7,100		488


				48,250


Beverages - 2.2%

Anheuser-Busch Cos., Inc.		45,688		2,284

Brown-Forman Corp., Class B		4,600		345

Coca-Cola (The) Co.		118,900		6,833

Coca-Cola Enterprises, Inc.		15,400		373

Constellation Brands, Inc., Class A *		11,500		278

Molson Coors Brewing Co., Class B		4,300		428

Pepsi Bottling Group, Inc.		7,200		268

PepsiCo, Inc.		96,980		7,105


				17,914


Biotechnology - 0.9%

Amgen, Inc. *		64,236		3,634

Biogen Idec, Inc. *		16,855		1,118

Celgene Corp. *		23,200		1,654

Genzyme Corp. *		16,000		991

Millipore Corp. *		3,600		273


				7,670


Building Materials - 0.1%

American Standard Companies, Inc.		10,100		360

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 65 EQUITY INDEX FUNDS

equity index funds


SCHEDULE OF INVESTMENTS

STOCK INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Building Materials - 0.1% – (continued)
Masco Corp.		23,700		$549


				909


Chemicals - 1.7%

Air Products & Chemicals, Inc.		12,400		1,212

Ashland, Inc.		3,800		229

Dow Chemical (The) Co.		55,471		2,389

du Pont (E.I.) de Nemours & Co.		55,377		2,745

Eastman Chemical Co.		4,275		285

Ecolab, Inc.		10,100		477

Hercules, Inc.		8,100		170

International Flavors & Fragrances, Inc.		4,500		238

Monsanto Co.		32,582		2,794

PPG Industries, Inc.		9,800		740

Praxair, Inc.		19,200		1,608

Rohm & Haas Co.		8,643		481

Sherwin-Williams (The) Co.		7,000		460

Sigma-Aldrich Corp.		7,800		380


				14,208


Coal - 0.2%

Consol Energy, Inc.		11,100		517

Peabody Energy Corp.		15,300		733


				1,250


Commercial Services - 0.6%

Apollo Group, Inc., Class A *		8,600		517

Convergys Corp. *		6,400		111

Donnelley (R.R.) & Sons Co.		12,700		464

Equifax, Inc.		7,700		294

H&R Block, Inc.		19,000		402

McKesson Corp.		18,041		1,061

Monster Worldwide, Inc. *		8,200		279

Moody’s Corp.		13,104		661

Robert Half International, Inc.		9,800		293

Western Union (The) Co.		46,923		984


				5,066


Computers - 4.4%

Affiliated Computer Services, Inc., Class A *		6,500		327

Apple, Inc. *		51,400		7,892

Cognizant Technology Solutions Corp., Class A *		8,600		686

Computer Sciences Corp. *		9,900		553

Dell, Inc. *		136,100		3,756

Electronic Data Systems Corp.		30,800		673

EMC Corp. of Massachusetts *		122,612		2,550


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Computers - 4.4% – (continued)
Hewlett-Packard Co.		153,042		$7,620

IBM Corp.		80,340		9,464

Lexmark International, Inc., Class A *		6,100		253

NCR Corp. *		9,800		488

Network Appliance, Inc. *		21,100		568

SanDisk Corp. *		13,500		744

Sun Microsystems, Inc. *		210,100		1,179

Unisys Corp. *		17,000		113


				36,866


Cosmetics/Personal Care - 2.0%

Avon Products, Inc.		25,644		962

Colgate-Palmolive Co.		30,500		2,175

Estee Lauder Cos. (The), Inc., Class A		6,800		289

Procter & Gamble Co.		185,107		13,021


				16,447


Distribution/Wholesale - 0.1%

Genuine Parts Co.		9,050		453

Grainger (W.W.), Inc.		4,200		383


				836


Diversified Financial Services - 7.2%

American Express Co.		70,900		4,209

Ameriprise Financial, Inc.		14,160		894

Bear Stearns Cos. (The), Inc.		6,731		827

Charles Schwab (The) Corp.		54,900		1,186

CIT Group, Inc.		11,100		446

Citigroup, Inc.		294,361		13,738

CME Group, Inc.		3,200		1,880

Countrywide Financial Corp.		34,200		650

Discover Financial Services		29,409		612

ETRADE Financial Corp.		25,900		338

Fannie Mae		57,300		3,484

Federated Investors, Inc., Class B		4,214		167

Franklin Resources, Inc.		10,100		1,288

Freddie Mac		39,100		2,307

Goldman Sachs Group, Inc.		23,952		5,191

IntercontinentalExchange, Inc. *		4,100		623

Janus Capital Group, Inc.		10,300		291

JPMorgan Chase & Co.		200,925		9,206

Legg Mason, Inc.		7,310		616

Lehman Brothers Holdings, Inc.		31,000		1,914

Merrill Lynch & Co., Inc.		51,084		3,641

Morgan Stanley		62,518		3,939

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 66 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Diversified Financial Services - 7.2% – (continued)
Price (T. Rowe) Group, Inc.		16,500		$919

SLM Corp.		25,100		1,247


				59,613


Electric - 3.1%

AES Corp. *		40,900		820

Allegheny Energy, Inc. *		9,600		502

Ameren Corp.		12,900		677

American Electric Power Co., Inc.		23,840		1,099

Centerpoint Energy, Inc.		16,822		270

CMS Energy Corp.		13,300		224

Consolidated Edison, Inc.		15,000		694

Constellation Energy Group, Inc.		10,600		909

Dominion Resources, Inc. of Virginia		17,309		1,459

DTE Energy Co.		10,100		489

Duke Energy Corp.		74,655		1,395

Dynegy, Inc., Class A *		25,907		239

Edison International		19,800		1,098

Entergy Corp.		12,000		1,299

Exelon Corp.		40,724		3,069

FirstEnergy Corp.		18,715		1,185

FPL Group, Inc.		24,800		1,510

Integrys Energy Group, Inc.		3,900		200

PG&E Corp.		19,600		937

Pinnacle West Capital Corp.		4,500		178

PPL Corp.		23,600		1,093

Progress Energy, Inc.		14,300		670

Public Service Enterprise Group, Inc.		15,050		1,324

Southern (The) Co.		45,600		1,654

TECO Energy, Inc.		11,300		186

TXU Corp.		28,168		1,929

Xcel Energy, Inc.		22,785		491


				25,600


Electrical Components & Equipment - 0.3%

Emerson Electric Co.		48,000		2,555

Molex, Inc.		8,375		225


				2,780


Electronics - 0.6%

Agilent Technologies, Inc. *		23,056		850

Applera Corp. - Applied Biosystems Group		9,600		333

Jabil Circuit, Inc.		11,300		258

PerkinElmer, Inc.		5,700		166

Solectron Corp. *		57,400		224


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Electronics - 0.6% – (continued)
Tektronix, Inc.		3,500		$97

Thermo Fisher Scientific Inc. *		25,100		1,449

Tyco Electronics Ltd.		29,447		1,043

Waters Corp. *		6,200		415


				4,835


Engineering & Construction - 0.1%

Fluor Corp.		5,100		734

Entertainment - 0.1%

International Game Technology		19,900		858

Environmental Control - 0.2%

Allied Waste Industries, Inc. *		14,200		181

Waste Management, Inc.		31,673		1,195


				1,376


Food - 1.7%

Campbell Soup Co.		12,000		444

ConAgra Foods, Inc.		30,700		802

Dean Foods Co.		8,300		212

General Mills, Inc.		20,800		1,207

Heinz (H.J.) Co.		17,900		827

Hershey (The) Co.		9,100		422

Kellogg Co.		15,500		868

Kraft Foods, Inc., Class A		93,208		3,217

Kroger Co.		42,900		1,224

McCormick & Co., Inc.		6,800		245

Safeway, Inc.		24,800		821

Sara Lee Corp.		45,500		759

SUPERVALU, Inc.		11,792		460

Sysco Corp.		37,800		1,345

Tyson Foods, Inc., Class A		15,700		280

Whole Foods Market, Inc.		8,200		401

Wrigley (Wm.) Jr. Co.		12,325		792


				14,326


Forest Products & Paper - 0.4%

International Paper Co.		26,693		957

MeadWestvaco Corp.		9,643		285

Plum Creek Timber Co., Inc.		9,800		439

Temple-Inland, Inc.		6,800		358

Weyerhaeuser Co.		12,740		921


				2,960


Gas - 0.2%

Nicor, Inc.		2,700		116

NiSource, Inc.		16,300		312

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 67 EQUITY INDEX FUNDS



equity index funds

SCHEDULE OF INVESTMENTS
STOCK INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Gas - 0.2% – (continued)

Sempra Energy		15,671		$911



				1,339



Hand/Machine Tools - 0.1%

Black & Decker Corp.		4,000		333

Snap-On, Inc.		2,850		141

Stanley Works (The)		4,300		242



				716



Healthcare - Products - 3.0%

Bard (C.R.), Inc.		5,600		494

Bausch & Lomb, Inc.		3,600		230

Baxter International, Inc.		39,100		2,201

Becton, Dickinson & Co.		14,800		1,214

Boston Scientific Corp. *		77,400		1,080

Covidien Ltd. *		30,047		1,247

Johnson & Johnson		171,100		11,241

Medtronic, Inc.		68,100		3,842

Patterson Cos., Inc. *		8,300		320

St. Jude Medical, Inc. *		19,600		864

Stryker Corp.		14,800		1,018

Varian Medical Systems, Inc. *		6,800		285

Zimmer Holdings, Inc. *		14,440		1,169



				25,205



Healthcare - Services - 1.3%

Aetna, Inc.		29,892		1,622

Coventry Health Care, Inc. *		8,455		526

Humana, Inc. *		9,500		664

Laboratory Corp. of America Holdings *		7,300		571

Manor Care, Inc.		4,950		319

Quest Diagnostics, Inc.		9,000		520

Tenet Healthcare Corp. *		29,500		99

UnitedHealth Group, Inc.		78,300		3,792

WellPoint, Inc. *		36,383		2,871



				10,984



Holding Companies - Diversified - 0.1%

Leucadia National Corp.		9,800		473



Home Builders - 0.1%

Centex Corp.		7,400		197

D.R. Horton, Inc.		17,500		224

KB Home		4,972		124

Lennar Corp., Class A		9,100		206


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Home Builders - 0.1% – (continued)

Pulte Homes, Inc.		11,000		$150



				901



Home Furnishings - 0.1%

Harman International Industries, Inc.		3,700		320

Whirlpool Corp.		4,706		419



				739



Household Products/Wares - 0.4%

Avery Dennison Corp.		5,500		314

Clorox Co.		9,300		567

Fortune Brands, Inc.		8,400		684

Kimberly-Clark Corp.		24,836		1,745



				3,310



Housewares - 0.1%

Newell Rubbermaid, Inc.		15,908		458



Insurance - 4.5%

ACE Ltd.		19,300		1,169

Aflac, Inc.		29,000		1,654

Allstate (The) Corp.		35,814		2,048

AMBAC Financial Group, Inc.		6,100		384

American International Group, Inc.		152,289		10,302

AON Corp.		16,275		729

Assurant, Inc.		5,400		289

Chubb Corp.		22,900		1,228

CIGNA Corp.		16,700		890

Cincinnati Financial Corp.		9,189		398

Genworth Financial, Inc., Class A		25,600		787

Hartford Financial Services Group, Inc.		18,400		1,703

Lincoln National Corp.		16,332		1,077

Loews Corp.		25,500		1,233

Marsh & McLennan Cos., Inc.		33,600		857

MBIA, Inc.		7,850		479

Metlife, Inc.		44,700		3,117

MGIC Investment Corp.		5,000		162

Principal Financial Group, Inc.		16,400		1,035

Progressive (The) Corp.		44,352		861

Prudential Financial, Inc.		27,800		2,713

SAFECO Corp.		6,900		422

Torchmark Corp.		4,900		305

Travelers Cos. (The), Inc.		38,113		1,919

Unum Group		20,061		491

XL Capital Ltd., Class A		11,359		900



				37,152

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 68 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Internet - 2.0%

Akamai Technologies, Inc. *		10,400		$299

Amazon.com, Inc. *		18,139		1,690

eBay, Inc. *		66,824		2,607

Google, Inc., Class A *		13,645		7,740

IAC/InterActiveCorp *		12,600		374

Symantec Corp. *		52,224		1,012

VeriSign, Inc. *		14,300		482

Yahoo!, Inc. *		79,200		2,126



				16,330



Investment Companies - 0.1%

American Capital Strategies Ltd.		11,300		483



Iron/Steel - 0.3%

Allegheny Technologies, Inc.		6,032		663

Nucor Corp.		17,100		1,017

United States Steel Corp.		7,100		752



				2,432



Leisure Time - 0.3%

Brunswick Corp.		5,700		130

Carnival Corp.		26,796		1,298

Harley-Davidson, Inc.		15,800		730



				2,158



Lodging - 0.5%

Harrah’s Entertainment, Inc.		11,050		961

Hilton Hotels Corp.		23,500		1,093

Marriott International, Inc., Class A		19,700		856

Starwood Hotels & Resorts Worldwide, Inc.		12,400		753

Wyndham Worldwide Corp.		10,361		339



				4,002



Machinery - Construction & Mining - 0.4%

Caterpillar, Inc.		37,800		2,965

Terex Corp. *		6,100		543



				3,508



Machinery - Diversified - 0.4%

Cummins, Inc.		6,300		806

Deere & Co.		13,300		1,974

Rockwell Automation, Inc.		9,300		646



				3,426



Media - 2.8%

CBS Corp., Class B		42,674		1,344

Clear Channel Communications, Inc.		28,400		1,063

Comcast Corp., Class A *		183,981		4,449


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Media - 2.8% – (continued)

DIRECTV Group (The), Inc. *		45,100		$1,095

Disney (The Walt) Co.		115,203		3,962

Dow Jones & Co., Inc.		4,400		263

Gannett Co., Inc.		13,400		585

McGraw-Hill Cos. (The), Inc.		20,800		1,059

Meredith Corp.		2,200		126

New York Times Co., Class A		8,700		172

News Corp., Class A		135,700		2,984

Scripps (E.W.) Co., Class A		4,300		181

Time Warner, Inc.		221,400		4,065

Tribune Co.		4,656		127

Viacom, Inc., Class B *		40,874		1,593



				23,068



Metal Fabrication/Hardware - 0.1%

Precision Castparts Corp.		8,300		1,228



Mining - 0.7%

Alcoa, Inc.		51,712		2,023

Freeport-McMoRan Copper & Gold, Inc.		22,472		2,357

Newmont Mining Corp.		26,477		1,184

Vulcan Materials Co.		5,500		491



				6,055



Miscellaneous Manufacturing - 5.1%

3M Co.		43,100		4,033

Cooper Industries Ltd., Class A		10,400		531

Danaher Corp.		15,000		1,240

Dover Corp.		11,300		576

Eastman Kodak Co.		15,800		423

Eaton Corp.		8,400		832

General Electric Co.		607,245		25,140

Honeywell International, Inc.		45,312		2,695

Illinois Tool Works, Inc.		25,300		1,509

Ingersoll-Rand Co. Ltd., Class A		17,700		964

ITT Corp.		11,100		754

Leggett & Platt, Inc.		9,900		190

Pall Corp.		7,666		298

Parker Hannifin Corp.		7,125		797

Textron, Inc.		14,600		908

Tyco International Ltd.		29,747		1,319



				42,209



Office/Business Equipment - 0.2%

Pitney Bowes, Inc.		12,100		550

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 69 EQUITY INDEX FUNDS



equity index funds


SCHEDULE OF INVESTMENTS

STOCK INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Office/Business Equipment – 0.2% - (continued)

Xerox Corp. *		57,096		$990



				1,540



Oil & Gas - 8.9%

Anadarko Petroleum Corp.		26,612		1,430

Apache Corp.		20,306		1,829

Chesapeake Energy Corp.		25,500		899

Chevron Corp.		127,132		11,897

ConocoPhillips		96,046		8,430

Devon Energy Corp.		26,800		2,230

ENSCO International, Inc.		9,300		522

EOG Resources, Inc.		13,800		998

Exxon Mobil Corp.		329,314		30,481

Hess Corp.		15,800		1,051

Marathon Oil Corp.		40,418		2,305

Murphy Oil Corp.		11,800		825

Nabors Industries Ltd. *		17,100		526

Noble Corp.		16,000		785

Occidental Petroleum Corp.		50,056		3,208

Rowan Cos., Inc.		7,200		263

Sunoco, Inc.		7,400		524

Tesoro Corp.		8,100		373

Transocean, Inc. *		17,072		1,930

Valero Energy Corp.		32,500		2,183

XTO Energy, Inc.		23,100		1,428



				74,117



Oil & Gas Services - 1.8%

Baker Hughes, Inc.		18,840		1,703

BJ Services Co.		18,000		478

Halliburton Co.		53,031		2,036

National-Oilwell Varco, Inc. *		10,400		1,503

Schlumberger Ltd.		70,300		7,381

Smith International, Inc.		12,200		871

Weatherford International Ltd. *		19,494		1,310



				15,282



Packaging & Containers - 0.1%

Ball Corp.		6,200		333

Bemis Co.		4,800		140

Pactiv Corp. *		7,700		221

Sealed Air Corp.		8,106		207



				901



Pharmaceuticals - 5.4%

Abbott Laboratories		91,700		4,917


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Pharmaceuticals - 5.4% – (continued)

Allergan, Inc.		18,768	$	1,210

AmerisourceBergen Corp.		10,518		477

Barr Pharmaceuticals, Inc. *		6,100		347

Bristol-Myers Squibb Co.		117,260		3,379

Cardinal Health, Inc.		21,524		1,346

Express Scripts, Inc. *		15,200		849

Forest Laboratories, Inc. *		19,300		720

Gilead Sciences, Inc. *		54,988		2,247

Hospira, Inc. *		8,280		343

King Pharmaceuticals, Inc. *		14,100		165

Lilly (Eli) & Co.		58,196		3,313

Medco Health Solutions, Inc. *		16,268		1,471

Merck & Co., Inc.		128,600		6,647

Mylan Laboratories, Inc.		14,900		238

Pfizer, Inc.		411,392		10,050

Schering-Plough Corp.		95,300		3,014

Watson Pharmaceuticals, Inc. *		6,500		211

Wyeth		80,000		3,564



				44,508



Pipelines - 0.4%

El Paso Corp.		42,147		715

Questar Corp.		10,200		536

Spectra Energy Corp.		36,477		893

Williams Cos. (The), Inc.		36,400		1,240



				3,384



Real Estate - 0.0%

CB Richard Ellis Group, Inc., Class A *		11,100		309



Real Estate Investment Trusts - 1.1%

Apartment Investment & Management Co., Class A		6,500		293

Archstone-Smith Trust		12,800		770

AvalonBay Communities, Inc.		4,700		555

Boston Properties, Inc.		6,700		696

Developers Diversified Realty Corp.		7,000		391

Equity Residential		18,000		762

General Growth Properties, Inc.		15,400		826

Host Hotels & Resorts, Inc.		31,400		705

Kimco Realty Corp.		14,400		651

ProLogis		15,435		1,024

Public Storage		6,946		546

Simon Property Group, Inc.		13,500		1,350

Vornado Realty Trust		7,900		864



				9,433

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 70 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Retail - 4.8%

Abercrombie & Fitch Co., Class A		4,700		$379

AutoNation, Inc. *		8,885		157

Autozone, Inc. *		2,700		314

Bed Bath & Beyond, Inc. *		17,200		587

Best Buy Co., Inc.		23,225		1,069

Big Lots, Inc. *		7,000		209

Circuit City Stores, Inc.		11,100		88

Costco Wholesale Corp.		26,016		1,597

CVS Caremark Corp.		87,969		3,486

Darden Restaurants, Inc.		8,950		375

Dillard’s, Inc., Class A		4,000		87

Family Dollar Stores, Inc.		8,300		220

Gap (The), Inc.		29,387		542

Home Depot (The), Inc.		100,294		3,253

Kohl’s Corp. *		18,900		1,084

Limited Brands		18,900		433

Lowe’s Cos., Inc.		87,800		2,460

Macy’s, Inc.		25,682		830

McDonald’s Corp.		70,000		3,813

Nordstrom, Inc.		11,700		549

Office Depot, Inc. *		16,200		334

OfficeMax, Inc.		4,333		148

Penney (J.C.) Co., Inc.		12,900		817

RadioShack Corp.		8,400		174

Sears Holdings Corp. *		4,473		569

Staples, Inc.		43,075		926

Starbucks Corp. *		44,900		1,176

Target Corp.		50,300		3,198

Tiffany & Co.		7,600		398

TJX Cos., Inc.		26,400		767

Wal-Mart Stores, Inc.		142,500		6,220

Walgreen Co.		58,900		2,782

Wendy’s International, Inc.		6,100		213

Yum! Brands, Inc.		29,700		1,005



				40,259



Savings & Loans - 0.3%

Hudson City Bancorp, Inc.		31,900		490

Sovereign Bancorp, Inc.		21,878		373

Washington Mutual, Inc.		52,476		1,853



				2,716



Semiconductors - 2.7%

Advanced Micro Devices, Inc. *		32,200		425


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Semiconductors - 2.7% – (continued)

Altera Corp.		21,900		$527

Analog Devices, Inc.		18,400		665

Applied Materials, Inc.		82,000		1,697

Broadcom Corp., Class A *		27,100		988

Intel Corp.		345,200		8,927

Kla-Tencor Corp.		11,500		642

Linear Technology Corp.		14,300		500

LSI Corp. *		42,500		315

MEMC Electronic Materials, Inc. *		13,400		789

Microchip Technology, Inc.		12,900		469

Micron Technology, Inc. *		41,900		465

National Semiconductor Corp.		14,200		385

Novellus Systems, Inc. *		7,600		207

Nvidia Corp. *		32,850		1,191

QLogic Corp. *		10,200		137

Teradyne, Inc. *		12,400		171

Texas Instruments, Inc.		83,700		3,063

Xilinx, Inc.		18,600		486



				22,049



Software - 3.4%

Adobe Systems, Inc. *		34,900		1,524

Autodesk, Inc. *		13,700		685

Automatic Data Processing, Inc.		32,900		1,511

BMC Software, Inc. *		11,100		347

CA, Inc.		23,893		614

Citrix Systems, Inc. *		10,700		431

Compuware Corp. *		19,500		156

Electronic Arts, Inc. *		18,500		1,036

Fidelity National Information Services, Inc.		10,200		452

Fiserv, Inc. *		10,700		544

IMS Health, Inc.		10,304		316

Intuit, Inc. *		20,100		609

Microsoft Corp.		478,780		14,105

Novell, Inc. *		20,300		155

Oracle Corp. *		233,800		5,062

Paychex, Inc.		20,600		845



				28,392



Telecommunications - 6.4%

Alltel Corp.		20,700		1,442

AT&T, Inc.		362,193		15,324

Avaya, Inc. *		27,300		463

CenturyTel, Inc.		7,250		335

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 71 EQUITY INDEX FUNDS


equity index funds
SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)
STOCK INDEX FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.3% – CONTINUED

Telecommunications - 6.4% – (continued)

Ciena Corp. *		5,657	$	215

Cisco Systems, Inc. *		360,500		11,936

Citizens Communications Co.		23,000		329

Corning, Inc.		93,800		2,312

Embarq Corp.		9,296		517

JDS Uniphase Corp. *		12,850		192

Juniper Networks, Inc. *		30,400		1,113

Motorola, Inc.		135,565		2,512

QUALCOMM, Inc.		98,600		4,167

Qwest Communications International, Inc. *		92,255		845

Sprint Nextel Corp.		171,236		3,254

Tellabs, Inc. *		27,800		265

Verizon Communications, Inc.		172,530		7,640

Windstream Corp.		25,899		366



				53,227



Textiles - 0.0%

Cintas Corp.		8,000		297



Toys, Games & Hobbies - 0.1%

Hasbro, Inc.		10,412		290

Mattel, Inc.		24,341		571



				861



Transportation - 1.6%

Burlington Northern Santa Fe Corp.		18,528		1,504

C.H. Robinson Worldwide, Inc.		10,800		586

CSX Corp.		25,048		1,070

FedEx Corp.		18,240		1,911

Norfolk Southern Corp.		23,900		1,241

Ryder System, Inc.		3,500		171

Union Pacific Corp.		15,600		1,764

United Parcel Service, Inc., Class B		62,200		4,671



				12,918



Total Common Stocks



(Cost $563,943)				799,649


	NUMBER		VALUE
	OF WARRANTS		(000S)

WARRANTS - 0.0%

Raytheon Co., Exp. 6/16/11, Strike $37.50		233		6



Total Warrants



(Cost $ -)				6


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 3.6%

ABN Amro Bank, Amsterdam,

Eurodollar Time Deposit,

5.50%, 10/1/07	$	28,381	$	28,381

U.S. Treasury Bill, ⁽²⁾

4.70%, 1/17/08		1,295		1,277



Total Short-Term Investments



(Cost $29,658)				29,658





Total Investments - 99.9%



(Cost $593,601)				829,313


Other Assets less Liabilities - 0.1%				859



NET ASSETS - 100.0%			$	830,172


(1)		Investment in affiliate of investment adviser.
(2)		Security pledged as collateral to cover margin requirements for open futures contracts.

*		Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the Stock Index Fund had open futures contracts as follows:

NOTIONAL

UNREALIZED

NUMBER OF

AMOUNT

CONTRACT

GAIN

TYPE

CONTRACTS

(000S)

POSITION

EXP.

(000S)

S&P500

E-Mini

403

30,993

Long

12/07

426

At September 30, 2007, the industry sectors for the Stock Index Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS

Consumer Discretionary		9.2	%

Consumer Staples		9.5

Energy		11.7

Financials		19.9

Health Care		11.6

Industrials		11.5

Information Technology		16.2

Materials		3.2

Telecommunication Services		3.8

Utilities		3.4



Total		100.0	%

See Notes to the Financial Statements.

EQUITY INDEX FUNDS 72 NORTHERN FUNDS SEMIANNUAL REPORT

Northern Trust Investments, N.A. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for the Funds. Northern Trust serves as the custodian, fund accountant and transfer agent for the Trust. NTI and PFPC Inc. (“PFPC”) serve as the Trust’s co-administrators, and Northern Fund Distributors, LLC is the Trust’s distributor.

Shares of open-end investment companies are valued at net asset value (“NAV”). Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided prices, as are swaps, caps, collars and floors. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments are valued at amortized cost, which the investment adviser has determined, pursuant to Board of Trustees authorization, approximates fair value.

Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by the investment adviser under the supervision of the Board of Trustees. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of market values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance. This may occur particularly with respect to certain foreign securities held by a Fund, in which case the Trust may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of those securities as of the time the Fund’s NAV is calculated. The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.

B) FUTURES CONTRACTS – Each Fund may invest in long or short futures contracts for hedging purposes, to increase total return (i.e., for speculative purposes) or to maintain liquidity.

The Fund bears the market risk arising from changes in the value of these financial instruments. At the time a Fund enters into a futures contract it is generally required to make a margin deposit with the custodian of a specified amount of liquid assets. Subsequently, as the market price of the futures contract fluctuates, gains or losses are recorded and payments are made, on a daily basis, between the Fund and the broker. The Statements of Operations reflect gains or losses as realized for closed futures contracts and as unrealized for open futures contracts.

At September 30, 2007, the Mid Cap Index, Small Cap Index, and Stock Index Funds had entered into exchange-traded long futures contracts. The aggregate market value of securities pledged to cover margin requirements for open positions was approximately $557,000, $705,000 and $1,277,000, respectively. The International Equity Index Fund had entered into exchange-traded long futures contracts at September 30, 2007.

C) FOREIGN CURRENCY TRANSLATIONS – Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the New York exchange normally at approximately 3:00 p.m. Central time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. The gains or losses on investments resulting from changes in foreign exchange rates are included on the Statements of Operations with net realized and unrealized gains (losses) on investments. The realized gains or losses, if any, on translations of other assets and liabilities denominated in foreign currencies are included in foreign currency transactions on the Statements of Operations.

G) REDEMPTION FEES – The Global Real Estate Index and International Equity Index Funds charge a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Funds use a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Funds and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Funds. The redemption fee may be collected by deduction from the redemption proceeds or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Funds’ prospectus.

Redemption fees for the six months ended September 30, 2007, were less than $1,000 for the Global Real Estate Index and the International Equity Index Funds. These amounts are included in “Proceeds from Shares Sold” in Note 6 – Capital Share Transactions. The impact from redemption fees paid to both Funds were less than $0.001 per share.

H) DISTRIBUTIONS TO SHAREHOLDERS – Distribution of dividends from net investment income, if any, are declared and paid as follows:

For the period subsequent to October 31, 2006, through the fiscal year ended March 31, 2007, the Stock Index Fund incurred net capital losses and/or net currency losses of approximately $407,000 for which the Fund intends to treat as having been incurred in the next fiscal year.

At March 31, 2007, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:

The Fund in the above table may offset future capital gains with these capital loss carryforwards.

At March 31, 2007, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

The taxable character of distributions paid during the fiscal year ended March 31, 2007, was as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

The taxable character of distributions paid during the fiscal year ended March 31, 2006, was as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

In July 2006, the Financial Accounting Standards Board(“FASB”) issued FASB Interpretation 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes”. This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. FIN 48 is effective as of the beginning of the first fiscal year beginning after December 15, 2006, with early application permitted if no interim financial statements have been issued. At adoption, companies must adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained as of the adoption date. As of September 30, 2007, management has evaluated the application of FIN 48 to the Funds, and has determined that there is no material impact resulting from the adoption of this Interpretation on the Funds’ financial statements.

At September 30, 2007, the Funds did not have any outstanding loans. When utilized, the average dollar amount of the borrowings and the weighted average interest rate on these borrowings were:

As compensation for advisory services and assumption of related expenses, the investment adviser is entitled to receive a fee, calculated daily and payable monthly, at annual rates set forth in the following table (expressed as a percentage of each Fund’s average daily net assets). For the six months ended September 30, 2007, the investment adviser agreed to reimburse the Funds for certain expenses as shown on the accompanying Statements of Operations to adhere to the expense limitations set forth below. The annual advisory fees and expense limitations for the Funds during this period were as follows:

The reimbursements described above are voluntary and may be modified or terminated at any time.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense off-set arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected in the Funds’ Statements of Operations.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds, although the Trust’s secretary also serves as legal counsel to the Trust and the independent Trustees and receives legal fees from the Funds for those services. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are included in “Trustee fees” on the Statements of Assets and Liabilities. The Trustee’s account shall be deemed to be invested in a money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the Investment Company Act of 1940, as amended. The net investment income, gains and

losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

For the six months ended September 30, 2007, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

At September 30, 2007, for federal income tax purposes, gross unrealized appreciation, gross unrealized depreciation, net unrealized appreciation on investments (including the effects of foreign currency translation) and the cost basis of securities were as follows:

Transactions in capital shares for the six months ended September 30, 2007, were as follows:

Transactions in capital shares for the fiscal year ended March 31, 2007, were as follows:

Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds’ financial statements and financial disclosures, if any.

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, including redemption fees on certain exchanges and redemptions in the Global Real Estate Index and the International Equity Index Funds; and (2) ongoing costs, including advisory fees; distribution (12b-1) fees, if any; and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2007, through September 30, 2007.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 74), if any, in the Global Real Estate Index and International Equity Index Funds. If these fees were included, your costs would have been higher. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.

This report contains certain forward-looking statements about factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in Fund management strategies from those currently expected to be employed.

Investments in the Funds are not insured or guaranteed by the FDIC or any other governmental agency. Although each Fund seeks to maintain a value of $1.00 per share, it is possible to lose money by investing.


MONEY MARKET FUNDS

	STATEMENTS OF ASSETS AND LIABILITIES	SEPTEMBER 30, 2007 (UNAUDITED)


	CALIFORNIA				MUNICIPAL		U.S. GOVERNMENT			U.S. GOVERNMENT
Amounts in thousands,	MUNICIPAL MONEY		MONEY		MONEY		MONEY			SELECT MONEY
except per share data	MARKET FUND		MARKET FUND		MARKET FUND		MARKET FUND			MARKET FUND


ASSETS:
Investments, at amortized cost		$1,222,701		$9,485,612		$5,472,240		$533,907			$1,230,363
Repurchase agreements, at cost which approximates fair value		-		1,628,486		-		442,551			-
Cash		90		61		-		-			3
Interest income receivable		7,199		78,098		28,716		2,949			4,446
Dividend income receivable		-		-		201		-			-
Receivable for fund shares sold		-		484		-		-			1
Receivable for securities sold		490		201		3,066		-			-
Receivable from investment adviser		28		227		104		10			24
Prepaid and other assets		15		94		67		8			19
Total Assets		1,230,523		11,193,263		5,504,394		979,425			1,234,856

LIABILITIES:
Cash overdraft		-		-		82		5			-
Payable for securities purchased		-		281,104		-		26,377			124,426
Payable for fund shares redeemed		1		-		112		55			-
Distributions payable to shareholders		3,469		43,251		15,394		3,393			4,162
Payable to affiliates:
Investment advisory fees		82		716		363		58			73
Co-administration fees		31		269		136		22			27
Custody and accounting fees		3		85		47		8			5
Transfer agent fees		21		179		91		15			18
Trustee fees		4		44		25		3			6
Accrued other liabilities		38		293		199		32			42
Total Liabilities		3,649		325,941		16,449		29,968			128,759

Net Assets		$1,226,874		$10,867,322		$5,487,945		$949,457			$1,106,097

ANALYSIS OF NET ASSETS:
Capital stock		$1,226,629		$10,867,322		$5,487,870		$949,472			$1,106,097
Accumulated undistributed net investment income		172		-		68		-			-
Accumulated net realized gains (losses)		73		-		7		(15	)		-
Net Assets		$1,226,874		$10,867,322		$5,487,945		$949,457			$1,106,097

Shares Outstanding ($.0001 par value, unlimited authorization)		1,226,654		10,867,339		5,487,881		949,504			1,106,136
Net Asset Value, Redemption and Offering Price Per Share		$1.00		$1.00		$1.00		$1.00			$1.00

See Notes to the Financial Statements.

MONEY MARKET FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT


	MONEY MARKET FUNDS

STATEMENTS OF OPERATIONS	SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)


	CALIFORNIA						MUNICIPAL			U.S. GOVERNMENT			U.S. GOVERNMENT
	MUNICIPAL MONEY			MONEY			MONEY			MONEY			SELECT MONEY
Amounts in thousands	MARKET FUND			MARKET FUND			MARKET FUND			MARKET FUND			MARKET FUND


INVESTMENT INCOME:
Interest income	$	23,104		$	291,538		$	103,503		$	20,278		$	26,451
Dividend income		-			-			648			-			-
Total Investment Income		23,104			291,538			104,151			20,278			26,451

EXPENSES:
Investment advisory fees		2,522			21,726			11,166			1,542			2,041
Co-administration fees		946			8,147			4,187			578			766
Custody and accounting fees		145			1,183			616			107			122
Transfer agent fees		630			5,432			2,792			386			510
Registration fees		8			40			30			15			14
Printing fees		22			168			119			14			22
Professional fees		20			151			106			13			20
Trustee fees and expenses		9			67			47			6			9
Shareholder servicing fees		-			-			-			32			-
Other		12			93			60			8			13

Total Expenses		4,314			37,007			19,123			2,701			3,517
Less expenses reimbursed by investment adviser		(843	)		(6,825	)		(3,692	)		(526	)		(706	)
Less custodian credits		(4	)		(308	)		(77	)		(54	)		(4	)
Net Expenses		3,467			29,874			15,354			2,121			2,807

Net Investment Income		19,637			261,664			88,797			18,157			23,644

NET REALIZED GAINS:
Net realized gains on:
Investments		73			-			7			-			-
Net Realized Gains on Investments		73			-			7			-			-

Net Increase in Net Assets Resulting from Operations	$	19,710		$	261,664			$88,804		$	18,157		$	23,644

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 MONEY MARKET FUNDS


	MONEY MARKET FUNDS

		STATEMENTS OF CHANGES IN NET ASSETS


	CALIFORNIA												MUNICIPAL						U.S. GOVERNMENT						U.S. GOVERNMENT
	MUNICIPAL MONEY						MONEY						MONEY						MONEY						SELECT MONEY
	MARKET FUND						MARKET FUND						MARKET FUND						MARKET FUND						MARKET FUND

	SIX MONTHS						SIX MONTHS						SIX MONTHS						SIX MONTHS						SIX MONTHS
	ENDED			YEAR			ENDED			YEAR			ENDED			YEAR			ENDED			YEAR			ENDED			YEAR
	SEPT. 30,			ENDED			SEPT. 30,			ENDED			SEPT. 30,			ENDED			SEPT. 30,			ENDED			SEPT. 30,			ENDED
	2007			MARCH 31,			2007			MARCH 31,			2007			MARCH 31,			2007			MARCH 31,			2007			MARCH 31,
Amounts in thousands	(UNAUDITED)			2007			(UNAUDITED)			2007			(UNAUDITED)			2007			(UNAUDITED)			2007			(UNAUDITED)			2007


OPERATIONS:
Net investment income		$19,637			$34,609			$261,664			$499,690			$88,797			$174,665			$18,157			$35,648			$23,644			$46,966
Net realized gains on investments		73			251			-			6			7			448			-			1			-			-
Net Increase in Net Assets Resulting from Operations		19,710			34,860			261,664			499,696			88,804			175,113			18,157			35,649			23,644			46,966

CAPITAL SHARE TRANSACTIONS: ⁽¹⁾
Net increase (decrease) in net assets resulting from capital share transactions		(44,347	)		248,676			(301,892	)		2,042,541			(382,776	)		254,779			126,538			106,188			88,921			(116,163	)
Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		(44,347	)		248,676			(301,892	)		2,042,541			(382,776	)		254,779			126,538			106,188			88,921			(116,163	)

DISTRIBUTIONS PAID:
From net investment income		(19,716	)		(35,153	)		(261,665	)		(499,690	)		(89,158	)		(174,666	)		(18,157	)		(35,648	)		(23,644	)		(46,966	)
Total Distributions Paid		(19,716	)		(35,153	)		(261,665	)		(499,690	)		(89,158	)		(174,666	)		(18,157	)		(35,648	)		(23,644	)		(46,966	)

Total Increase (Decrease) in Net Assets		(44,353	)		248,383			(301,893	)		2,042,547			(383,130	)		255,226			126,538			106,189			88,921			(116,163	)
NET ASSETS:
Beginning of period		1,271,227			1,022,844			11,169,215			9,126,668			5,871,075			5,615,849			822,919			716,730			1,017,176			1,133,339
End of period	$	1,226,874		$	1,271,227		$	10,867,322		$	11,169,215		$	5,487,945		$	5,871,075		$	949,457		$	822,919		$	1,106,097		$	1,017,176

Accumulated Undistributed Net Investment Income		$172			$251			$ -			$1			$68			$429			$ -			$ -			$ -			$ -


(1)		The number of shares approximates the dollar amount of transactions.

See Notes to the Financial Statements.

MONEY MARKET FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT


	MONEY MARKET FUNDS

FINANCIAL HIGHLIGHTS


	CALIFORNIA MUNICIPAL MONEY MARKET FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00

INCOME FROM INVESTMENT OPERATIONS:
Net investment income		0.02			0.03			0.02			0.01			0.01			0.01
Total from Investment Operations		0.02			0.03			0.02			0.01			0.01			0.01

LESS DISTRIBUTIONS PAID:
From net investment income		(0.02	)		(0.03	)		(0.02	)		(0.01	)		(0.01	)		(0.01	)
Total Distributions Paid		(0.02	)		(0.03	)		(0.02	)		(0.01	)		(0.01	)		(0.01	)

Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00



Total Return ⁽¹⁾		1.58	%		3.06	%		2.22	%		0.92	%		0.55	%		0.95	%

SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,226,874			$1,271,227			$1,022,844			$908,547			$762,143			$876,183
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers, reimbursements and credits		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Expenses, before waivers, reimbursements and credits		0.68	%		0.69	%		0.78	%		0.79	%		0.78	%		0.81	%
Net investment income, net of waivers, reimbursements and credits		3.11	%		2.97	%		2.20	%		0.94	%		0.55	%		0.93	%
Net investment income, before waivers, reimbursements and credits		2.98	%		2.83	%		1.97	%		0.70	%		0.32	%		0.67	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 MONEY MARKET FUNDS


	MONEY MARKET FUNDS

		FINANCIAL HIGHLIGHTS (continued)


	MONEY MARKET FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00

INCOME FROM INVESTMENT OPERATIONS:
Net investment income		0.02			0.05			0.03			0.01			0.01			0.01
Total from Investment Operations		0.02			0.05			0.03			0.01			0.01			0.01

LESS DISTRIBUTIONS PAID:
From net investment income		(0.02	)		(0.05	)		(0.03	)		(0.01	)		(0.01	)		(0.01	)
Total Distributions Paid		(0.02	)		(0.05	)		(0.03	)		(0.01	)		(0.01	)		(0.01	)

Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00



Total Return ⁽¹⁾		2.44	%		4.79	%		3.27	%		1.22	%		0.68	%		1.26	%

SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$10,867,322			$11,169,215			$9,126,668			$7,896,730			$7,435,384			$8,570,323
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers, reimbursements and credits		0.55	%⁽³⁾		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Expenses, before waivers, reimbursements and credits		0.68	%		0.68	%		0.78	%		0.79	%		0.78	%		0.82	%
Net investment income, net of waivers, reimbursements and credits		4.82	%		4.71	%		3.26	%		1.22	%		0.68	%		1.26	%
Net investment income, before waivers, reimbursements and credits		4.69	%		4.58	%		3.03	%		0.98	%		0.45	%		0.99	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2)		Annualized for periods less than one year.

(3)		The net expense ratio includes custodian credits of approximately $308,000, which represents 0.01% of average net assets for the period ended September 30, 2007. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

See Notes to the Financial Statements.

MONEY MARKET FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT


	MUNICIPAL MONEY MARKET FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00

INCOME FROM INVESTMENT OPERATIONS:
Net investment income		0.02			0.03			0.02			0.01			0.01			0.01
Total from Investment Operations		0.02			0.03			0.02			0.01			0.01			0.01

LESS DISTRIBUTIONS PAID:
From net investment income		(0.02	)		(0.03	)		(0.02	)		(0.01	)		(0.01	)		(0.01	)
Total Distributions Paid		(0.02	)		(0.03	)		(0.02	)		(0.01	)		(0.01	)		(0.01	)

Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00



Total Return ⁽¹⁾		1.61	%		3.08	%		2.26	%		0.96	%		0.58	%		0.99	%

SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$5,487,945			$5,871,075			$5,615,849			$4,580,691			$4,719,992			$5,045,958
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers, reimbursements and credits		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Expenses, before waivers, reimbursements and credits		0.69	%		0.68	%		0.78	%		0.79	%		0.78	%		0.81	%
Net investment income, net of waivers, reimbursements and credits		3.18	%		3.04	%		2.24	%		0.95	%		0.58	%		0.97	%
Net investment income, before waivers, reimbursements and credits		3.04	%		2.91	%		2.01	%		0.71	%		0.35	%		0.71	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 MONEY MARKET FUNDS


	MONEY MARKET FUNDS

		FINANCIAL HIGHLIGHTS (continued)


	U.S. GOVERNMENT MONEY MARKET FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income		0.02			0.05			0.03			0.01			0.01			0.01
Total from Investment Operations		0.02			0.05			0.03			0.01			0.01			0.01

LESS DISTRIBUTIONS PAID:
From net investment income		(0.02	)		(0.05	)		(0.03	)		(0.01	)		(0.01	)		(0.01	)
Total Distributions Paid		(0.02	)		(0.05	)		(0.03	)		(0.01	)		(0.01	)		(0.01	)

Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00



Total Return ⁽¹⁾		2.38	%		4.74	%		3.22	%		1.19	%		0.65	%		1.21	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$949,457			$822,919			$716,730			$571,858			$622,462			$794,122
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers, reimbursements and credits		0.55	%⁽³⁾		0.55	%⁽³⁾		0.55	%⁽³⁾		0.55	%⁽³⁾		0.55	%		0.55	%
Expenses, before waivers, reimbursements and credits		0.70	%		0.70	%		0.81	%		0.80	%		0.82	%		0.86	%
Net investment income, net of waivers, reimbursements and credits		4.71	%		4.65	%		3.22	%		1.17	%		0.66	%		1.19	%
Net investment income, before waivers, reimbursements and credits		4.56	%		4.50	%		2.96	%		0.92	%		0.39	%		0.88	%


	U.S. GOVERNMENT SELECT MONEY MARKET FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00
INCOME FROM INVESTMENT OPERATIONS:
Net investment income		0.02			0.05			0.03			0.01			0.01			0.01
Total from Investment Operations		0.02			0.05			0.03			0.01			0.01			0.01

LESS DISTRIBUTIONS PAID:
From net investment income		(0.02	)		(0.05	)		(0.03	)		(0.01	)		(0.01	)		(0.01	)
Total Distributions Paid		(0.02	)		(0.05	)		(0.03	)		(0.01	)		(0.01	)		(0.01	)

Net Asset Value, End of Period		$1.00			$1.00			$1.00			$1.00			$1.00			$1.00



Total Return ⁽¹⁾		2.35	%		4.66	%		3.17	%		1.16	%		0.62	%		1.11	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,106,097			$1,017,176			$1,133,339			$1,186,119			$924,881			$979,757
Ratio to average net assets of: ⁽²⁾
Expenses, net of waivers, reimbursements and credits		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%		0.55	%
Expenses, before waivers, reimbursements and credits		0.69	%		0.69	%		0.79	%		0.79	%		0.79	%		0.82	%
Net investment income, net of waivers, reimbursements and credits		4.63	%		4.56	%		3.21	%		1.22	%		0.61	%		1.08	%
Net investment income, before waivers, reimbursements and credits		4.49	%		4.42	%		2.97	%		0.98	%		0.37	%		0.81	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 MONEY MARKET FUNDS


(1)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933.

(2)	Restricted security that has been deemed illiquid. At September 30, 2007, the value of this restricted illiquid security amounted to approximately $5,755,000 or 0.5% of net assets. Additional information on this restricted illiquid security is as follows:

At September 30, 2007, the industry sectors for the California Municipal Money Market Fund were:

At September 30, 2007, the maturity analysis for the California Municipal Money Market Fund as a percentage of investments was:


(1)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933.

(2)	Restricted security that has been deemed illiquid. At September 30, 2007, the value of these restricted illiquid securities amounted to approximately $138,998,000 or 1.3% of net assets. Additional information on each restricted illiquid security is as follows:


(3)	The nature and terms of the collateral received for the joint repurchase agreements are as follows:


(4)	The nature and terms of the collateral received for the repurchase agreements are as follows:

At September 30, 2007, the maturity analysis for the Money Market Fund as a percentage of investments was:


(1)	Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933.

(2)	Restricted security that has been deemed illiquid. At September 30, 2007, the value of these restricted illiquid securities amounted to approximately $146,110,000 or 2.7% of net assets. Additional information on these restricted illiquid securities is as follows:

At September 30, 2007, the industry sectors for the Municipal Money Market Fund were:

At September 30, 2007, the maturity analysis for the Municipal Money Market Fund as a percentage of investments was:


(1)	The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.

(2)	The nature and terms of the collateral received for the joint repurchase agreements are as follows:

At September 30, 2007, the maturity analysis for the U.S. Government Money Market Fund as a percentage of investments was:


(1)	The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.

(2)	The cost for federal income tax purposes was $1,230,363.

At September 30, 2007, the maturity analysis for the U.S. Government Select Money Market Fund as a percentage of investments was:

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of September 30, 2007, the Trust includes 37 portfolios, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The California Municipal Money Market, Money Market, Municipal Money Market, U.S. Government Money Market, and U.S. Government Select Money Market Funds (collectively, the “Funds”) are separate investment portfolios of the Trust, each of which is a diversified portfolio except for the California Municipal Money Market Fund, which is a non-diversified portfolio of the Trust. Non-diversified portfolios may invest a relatively high percentage of their net assets in obligations of a limited number of issuers. Each of the Funds is presented herein.

Northern Trust Investments, N.A. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for all of the Trust’s money market funds. Northern Trust serves as the custodian, fund accountant and transfer agent for the Trust. NTI and PFPC Inc. (“PFPC”) serve as the Trust’s co-administrators, and Northern Fund Distributors, LLC is the Trust’s distributor.

A) VALUATION OF SECURITIES – The investments held by the Funds are valued at amortized cost, which the investment adviser has determined, pursuant to Board of Trustees authorization, approximates fair market value. Under this method, investments purchased at a discount or premium are valued by accreting or amortizing the difference between the original purchase price and maturity value of the issue over the period to maturity.

B) CREDIT ENHANCEMENTS – The California Municipal Money Market and Municipal Money Market Funds’ income may be subject to certain state and local taxes and, depending on an individual shareholder’s tax status, the federal alternative minimum tax. Certain investments owned by the Funds (primarily the California Municipal Money Market Fund and Municipal Money Market Fund) are covered by insurance issued by private insurers, are backed by an escrow or trust containing U.S. Government securities or U.S. Government agency securities, or are otherwise supported by letters of credit, standby purchase agreements or other liquidity facilities. Such enhancements may ensure the timely payment of the security’s principal and interest or may shorten the security’s maturity. However, such enhancements do not guarantee the market value of the securities or the value of a Fund’s shares.

C) REPURCHASE AGREEMENTS – During the term of a repurchase agreement, the market value of the underlying collateral, including accrued interest, is required to equal or exceed the market value of the repurchase agreement. The underlying collateral for tri-party repurchase agreements is held in accounts for Northern Trust, as agent of the Funds, at the Bank of New York or JPMorgan Chase which, in turn, holds securities through the book-entry system at the Federal Reserve Bank of New York. The underlying collateral for other repurchase agreements is held in a customer-only account for Northern Trust, as custodian for the Funds, at the Federal Reserve Bank of Chicago.

Each Fund may enter into joint repurchase agreements with non-affiliated counterparties through a master repurchase agreement with Northern Trust. NTI administers and manages these repurchase agreements in accordance with and as part of its duties under its investment advisory agreements with the Funds and does not collect any additional fees from the Funds for such services. The Money Market Fund and U.S. Government Money Market Fund have entered into such joint repurchase agreements at September 30, 2007, as reflected in their accompanying Schedules of Investments.

E) EXPENSES – Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated

F) DISTRIBUTIONS TO SHAREHOLDERS – Distribution of dividends from net investment income are declared daily and paid monthly. Distributions of net realized capital gains, if any, are declared and paid at least annually. Distributions to shareholders are recorded on the ex-dividend date.

The timing and character of distributions determined in accordance with federal income tax regulations may differ from financial statement amounts determined in accordance with GAAP due to differences in the treatment and recognition of investment income and realized gains and losses. These differences are primarily related to the capital loss carryforwards. Inherent differences in the recognition of income and capital gains for federal income tax purposes, which are permanent, may result in periodic reclassifications in the Funds’ capital accounts.

G) FEDERAL INCOME TAXES – No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and tax-exempt income to its shareholders.

At March 31, 2007, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration are as follows:

The Fund in the above table may offset future capital gains with this capital loss carryforward.

At March 31, 2007, the tax components of undistributed net investment income and realized gains, including amounts declared but not yet paid for federal income tax purposes, were as follows:


*	Ordinary income includes taxable market discount income and capital gains, if any.

The tax character of distributions paid during the fiscal year ended March 31, 2007, was as follows:


*	Ordinary income includes taxable market discount income and capital gains, if any.

The tax character of distributions paid during the fiscal year ended March 31, 2006, was as follows:


*	Ordinary income includes taxable market discount income and capital gains, if any.

In July 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes”. This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. FIN 48 is effective as of the beginning of the first fiscal year beginning after December 15, 2006, with early application permitted if no interim financial statements have been issued. At adoption, companies must adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained as of the adoption date. As of September 30, 2007, management has evaluated the application of FIN 48 to the Funds, and has determined that there is no material impact resulting from the adoption of this Interpretation on the Funds’ financial statements.

above IBOR (Interbank Offered Rate) or (iii) 0.45 percent above LIBOR (London Interbank Offered Rate), at the option of the Trust and in accordance with the terms of the agreement.

At September 30, 2007, the Funds did not have any outstanding loans. The Funds did not incur any interest expense during the six months ended September 30, 2007.

The reimbursements described above are voluntary and may be modified or terminated at any time.

For compensation as custodian, Northern Trust receives an amount based on a pre-determined schedule of charges approved by the Board. The Funds have entered into an expense offset arrangement with the custodian whereby credits realized as a result of uninvested cash balances are used to reduce a portion of the Funds’ custodian expenses. Custodian credits, if any, are reflected in the Funds’ Statements of Operations.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds, although the Trust’s secretary also serves as legal counsel to the Trust and the independent Trustees and receives legal fees from the Funds for those services. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are included in “Trustee Fees” on the Statements of Assets and Liabilities. The Trustee’s account shall be deemed to be invested in a money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the Investment Company Act of 1940, as amended. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

Transactions in capital shares for the six months ended September 30, 2007, were as follows:


*	The number of shares sold, reinvested and redeemed approximates the dollar amount of transactions.

Transactions in capital shares for the fiscal year ended March 31, 2007, were as follows:


*	The number of shares sold, reinvested and redeemed approximates the dollar amount of transactions.

Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds’ financial statements and financial disclosures, if any.

As a shareholder of the Funds, you incur ongoing costs, including advisory fees; distribution (12b-1) fees, if any; and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2007 through September 30, 2007.

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/07 -9/30/07” to estimate the expenses you paid on your account during this period.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only. As a shareholder of the Funds, you do not incur any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.


*	Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2007. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).

**	Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent per year before expenses.

With respect to the Schedules of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets.

Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, or, for floating rate securities, the current reset rate.

Maturity dates represent the stated date on the security, the next interest reset/ puttable date for floating rate and variable securities or the prerefunded date for these types of securities.

Prerefunding is a procedure in which a bond issuer floats a second bond in order to pay off the first bond at the first call date. The proceeds from the sale of the second bond are safely invested, usually in Treasury securities, that will mature at the first call date of the first bond issue. Those first bonds are said to be prerefunded after this operation has taken place.

Interest rates are reset daily and interest is payable monthly with respect to all joint repurchase agreements.

Northern Funds files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q are available on the SEC’s Web site at sec.gov. You may also review and obtain copies at the SEC’s Public Reference Room in Washington, D.C. Information about the Public Reference Room may be obtained by calling 800-SEC-0330.


	Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.

This report contains forward-looking statements about factors that may affect the performance of the Funds in the future. These statements are based on Fund management’s predictions and expectations concerning certain future events, such as performance of the economy as a whole and of specific industry sectors, changes in the levels of interest rates, the impact of developing world events, and other factors. Management believes these forward-looking statements to be reasonable, although they are inherently uncertain and difficult to predict. Actual events may cause adjustments in Fund management strategies from those currently expected to be employed.



fixed income funds
STATEMENTS OF ASSETS AND LIABILITIES


	BOND			FIXED
Amounts in thousands,	INDEX			INCOME
except per share data	FUND			FUND


ASSETS:

Investments, at cost		$392,088			$1,293,415

Investments, at value		$393,033			$1,289,568

Cash		361			1,900

Foreign currencies, at value (cost $314)		-			-

Interest income receivable		2,875			8,061

Receivable for securities sold		2,522			109,594

Receivable for fund shares sold		3,400			1,134

Receivable from investment adviser		11			17

Unrealized gain on forward foreign currency exchange contracts		-			-

Prepaid and other assets		19			16

Total Assets		402,221			1,410,290



LIABILITIES:

Unrealized loss on forward foreign currency exchange contracts		-			-

Payable for securities purchased		4,462			261,053

Payable for when-issued securities		32,679			39,017

Payable for fund shares redeemed		5,203			1,766

Distributions to shareholders		288			826

Payable to affiliates:

Investment advisory fees		9			128

Co-administration fees		9			28

Custody and accounting fees		-			-

Transfer agent fees		6			18

Trustee fees		-			5

Accrued other liabilities		14			33

Total Liabilities		42,670			302,874


Net Assets		$359,551			$1,107,416



ANALYSIS OF NET ASSETS:

Capital stock		$359,421			$1,138,631

Accumulated undistributed net investment income (loss)		40			(1,761	)

Accumulated undistributed net realized gain (loss)		(855	)		(25,607	)

Net unrealized appreciation (depreciation)		945			(3,847	)

Net Assets		$359,551			$1,107,416



Shares Outstanding ($.0001 par value, unlimited authorization)		36,265			114,331

Net Asset Value, Redemption and Offering Price Per Share:		$9.91			$9.69

See Notes to the Financial Statements.

FIXED INCOME FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


						SHORT-
GLOBAL			HIGH YIELD			INTERMEDIATE			U.S.
FIXED INCOME			FIXED INCOME			U.S. GOVERNMENT			GOVERNMENT
FUND			FUND			FUND			FUND



	$27,370			$1,834,476			$226,946			$153,584

	$29,874			$1,823,248			$227,465			$154,356

	8			1,211			8			8

	314			-			-			-

	308			41,671			1,370			989

	-			5,794			15,876			15,544

	223			4,383			1,266			180

	2			20			4			3

	20			-			-			-

	5			23			4			4

	30,754			1,876,350			245,993			171,084



	21			-			-			-

	313			3,393			1,610			-

	-			11,610			29,830			28,542

	-			2,168			19			650

	-			2,198			127			82


	4			213			23			16

	1			46			5			4

	2			3			1			1

	-			30			3			2

	2			5			1			2

	12			237			14			28

	355			19,903			31,633			29,327


	$30,399			$1,856,447			$214,360			$141,757



	$27,895			$1,903,165			$220,363			$146,367

	(155	)		(541	)		(11	)		405

	145			(34,949	)		(6,511	)		(5,787	)

	2,514			(11,228	)		519			772

	$30,399			$1,856,447			$214,360			$141,757



	2,722			231,929			21,510			14,524

	$11.17			$8.00			$9.96			$9.76

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 FIXED INCOME FUNDS



fixed income funds
STATEMENTS OF OPERATIONS


	BOND			FIXED
	INDEX			INCOME
Amounts in thousands	FUND			FUND


INVESTMENT INCOME:

Interest income		$6,870			$30,925


Total Investment Income		6,870			30,925



EXPENSES:

Investment advisory fees		199			3,901

Co-administration fees		199			836

Custody fees		20			67

Accounting fees		17			61

Transfer agent fees		132			557

Registration fees		11			12

Printing fees		10			30

Professional fees		7			20

Trustee fees and expenses		3			9

Shareholder servicing fees		-			1

Other		3			12


Total Expenses		601			5,506

Less expenses reimbursed by investment adviser		(258	)		(489	)

Less custodian credits		(11	)		(2	)

Net Expenses		332			5,015


Net Investment Income		6,538			25,910



NET REALIZED AND UNREALIZED GAINS (LOSSES):

Net realized gains (losses) on:

Investments		(819	)		(17,128	)

Foreign currency transactions		-			(29	)

Net change in unrealized appreciation (depreciation) on:

Investments		1,815			(2,291	)

Forward foreign currency exchange contracts		-			-

Translation of other assets and liabilities denominated in foreign currencies		-			(16	)

Net Gains (Losses) on Investments and Foreign Currency		996			(19,464	)



Net Increase in Net Assets Resulting from Operations		$7,534			$6,446

See Notes to the Financial Statements.

FIXED INCOME FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT


		SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)


						SHORT-
GLOBAL			HIGH YIELD			INTERMEDIATE			U.S.
FIXED INCOME			FIXED INCOME			U.S. GOVERNMENT			GOVERNMENT
FUND			FUND			FUND			FUND



	$540			$73,528			$3,466			$3,745

	540			73,528			3,466			3,745



	122			6,346			480			497

	22			1,360			103			106

	31			98			14			15

	13			99			17			18

	14			906			69			71

	9			16			10			9

	10			50			10			10

	7			33			7			7

	3			15			3			3

	1			134			-			2

	4			18			4			4


	236			9,075			717			742

	(69	)		(859	)		(100	)		(102	)

	(1	)		(57	)		-			(1	)

	166			8,159			617			639



	374			65,369			2,849			3,106




	486			(7,028	)		(681	)		(1,214	)

	12			-			-		-

	464			(44,662	)		586			539

	(16	)		-			-		-

	4			-			-		-

	950			(51,690	)		(95	)		(675	)



	$1,324			$13,679			$2,754			$2,431

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 FIXED INCOME FUNDS



fixed income funds
STATEMENTS OF CHANGES IN NET ASSETS


	BOND						FIXED
	INDEX						INCOME
	FUND						FUND

	SEPT. 30,			MARCH 31,			SEPT. 30,			MARCH 31,
Amounts in thousands	2007			2007 ⁽¹⁾			2007			2007



OPERATIONS:

Net investment income		$6,538			$544			$25,910			$40,793

Net realized gains (losses)		(819	)		(36	)		(17,157	)		4,465

Net change in unrealized appreciation (depreciation)		1,815			(870	)		(2,307	)		10,583

Net Increase (Decrease) in Net Assets Resulting from Operations		7,534			(362	)		6,446			55,841



CAPITAL SHARE TRANSACTIONS:

Net increase (decrease) in net assets resulting from capital share transactions		190,256			169,165			60,319			264,478

Net Increase (Decrease) in Net Assets Resulting from Capital Share Transactions		190,256			169,165			60,319			264,478



DISTRIBUTIONS PAID:

From net investment income		(6,498	)		(544	)		(26,874	)		(42,141	)

Total Distributions Paid		(6,498	)		(544	)		(26,874	)		(42,141	)



Total Increase (Decrease) in Net Assets		191,292			168,259			39,891			278,178

NET ASSETS:

Beginning of period		168,259			-			1,067,525			789,347

End of period		$359,551			$168,259			$1,107,416			$1,067,525



Accumulated Undistributed Net Investment Income (Loss)		$40			$ -			$(1,761	)		$(797	)

(1) Commenced investment operations on February 27, 2007.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT


			SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED) OR FISCAL YEAR ENDED MARCH 31, 2007


												SHORT-
GLOBAL						HIGH YIELD						INTERMEDIATE						U.S.
FIXED INCOME						FIXED INCOME						U.S. GOVERNMENT						GOVERNMENT
FUND						FUND						FUND						FUND

SEPT. 30,			MARCH 31,			SEPT. 30,			MARCH 31,			SEPT. 30,			MARCH 31,			SEPT. 30,			MARCH 31,
2007			2007			2007			2007			2007			2007			2007			2007



	$374			$791			$65,369			$115,130			$2,849			$5,514			$3,106			$5,979

	498			110			(7,028	)		4,913			(681	)		(212	)		(1,214	)		(1,103	)

	452			1,044			(44,662	)		36,251			586			1,408			539			2,535

	1,324			1,945			13,679			156,294			2,754			6,710			2,431			7,411



	(440	)		(4,395	)		87,772			378,092			87,013			(14,301	)		(869	)		(15,956	)

	(440	)		(4,395	)		87,772			378,092			87,013			(14,301	)		(869	)		(15,956	)



	-			(1,258	)		(65,381	)		(114,756	)		(2,859	)		(5,544	)		(3,114	)		(6,009	)

	-			(1,258	)		(65,381	)		(114,756	)		(2,859	)		(5,544	)		(3,114	)		(6,009	)



	884			(3,708	)		36,070			419,630			86,908			(13,135	)		(1,552	)		(14,554	)


	29,515			33,223			1,820,377			1,400,747			127,452			140,587			143,309			157,863

	$30,399			$29,515			$1,856,447			$1,820,377			$214,360			$127,452			$141,757			$143,309



	$(155	)		$(529	)		$(541	)		$(529	)		$(11	)		$(1	)		$405			$413

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 FIXED INCOME FUNDS



fixed income funds
FINANCIAL HIGHLIGHTS


	BOND INDEX FUND

	SIX MONTHS
	ENDED			PERIOD
	SEPT. 30,			ENDED
	2007			MARCH 31,
Selected per share data	(UNAUDITED)			2007 ⁽³⁾



Net Asset Value, Beginning of Period		$9.94			$10.00

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.24			0.04

Net realized and unrealized losses		(0.03	)		(0.06	)

Total from Investment Operations		0.21			(0.02	)



LESS DISTRIBUTIONS PAID:

From net investment income		(0.24	)		(0.04	)

Total Distributions Paid		(0.24	)		(0.04	)


Net Asset Value, End of Period		$9.91			$9.94



Total Return ⁽¹⁾		2.16	%		(0.18	)%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$359,551			$168,259

Ratio to average net assets of: ⁽²⁾

Expenses, net of reimbursements and credits		0.25	%⁽⁴⁾		0.25	%

Expenses, before reimbursements and credits		0.45	%		0.76	%

Net investment income, net of reimbursements and credits		4.93	%		4.90	%

Net investment income, before reimbursements and credits		4.73	%		4.39	%

Portfolio Turnover Rate		86.84	%		36.78	%

(1)	Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)	Annualized for periods less than one year.
(3)	Commenced investment operations on February 27, 2007.
(4)	The net expense ratio includes custodian credits of approximately $11,000, which represents 0.01% of average net assets for the six months ended September 30, 2007. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT


	FIXED INCOME FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$9.87			$9.73			$9.94			$10.33			$10.23			$9.74

INCOME (LOSS) FROM INVESTMENT
OPERATIONS:

Net investment income		0.23			0.45			0.39			0.38			0.35			0.37

Net realized and unrealized gains (losses)		(0.18	)		0.15			(0.17	)		(0.30	)		0.24			0.52

Total from Investment Operations		0.05			0.60			0.22			0.08			0.59			0.89



LESS DISTRIBUTIONS PAID:

From net investment income ⁽¹⁾		(0.23	)		(0.46	)		(0.41	)		(0.40	)		(0.40	)		(0.40	)

From net realized gains		-			-			(0.02	)		(0.07	)		(0.09	)		-

Total Distributions Paid		(0.23	)		(0.46	)		(0.43	)		(0.47	)		(0.49	)		(0.40	)



Net Asset Value, End of Period		$9.69			$9.87			$9.73			$9.94			$10.33			$10.23



Total Return ⁽²⁾		0.58	%		6.26	%		2.17	%		0.73	%		5.92	%		9.27	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$1,107,416			$1,067,525			$789,347			$759,861			$754,555			$727,738

Ratio to average net assets of: ⁽³⁾

Expenses, net of reimbursements and credits		0.90	%		0.90	%		0.90	%⁽⁴⁾		0.90	%		0.90	%		0.90	%⁽⁴⁾

Expenses, before reimbursements and credits		0.99	%		0.99	%		0.99	%		1.01	%		1.04	%		1.04	%

Net investment income, net of reimbursements and credits		4.65	%		4.52	%		3.95	%		3.71	%		3.41	%		3.70	%

Net investment income, before reimbursements and credits		4.56	%		4.43	%		3.86	%		3.60	%		3.27	%		3.56	%

Portfolio Turnover Rate		380.07	%		655.65	%		416.25	%		198.12	%		257.28	%		422.89	%

(1)	Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes.
(2)	Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(3)	Annualized for periods less than one year.
(4)	The net expense ratio includes custodian credits of approximately $40,000 and $29,000, which represents 0.01% of average net assets for the fiscal years ended March 31, 2006, and 2003, respectively. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 FIXED INCOME FUNDS



fixed income funds
FINANCIAL HIGHLIGHTS (continued)


	GLOBAL FIXED INCOME FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$10.65			$10.44			$11.33			$11.35			$10.59			$9.13

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.07			0.29			0.19			0.26			0.33			0.31

Net realized and unrealized gains (losses)		0.45			0.39			(0.84	)		0.28			0.98			1.36

Total from Investment Operations		0.52			0.68			(0.65	)		0.54			1.31			1.67



LESS DISTRIBUTIONS PAID:

From net investment income ⁽¹⁾		-			(0.47	)		(0.24	)		(0.56	)		(0.55	)		(0.21	)

Total Distributions Paid		-			(0.47	)		(0.24	)		(0.56	)		(0.55	)		(0.21	)



Net Asset Value, End of Period		$11.17			$10.65			$10.44			$11.33			$11.35			$10.59



Total Return ⁽²⁾		4.88	%		6.49	%		(5.74	)%		4.67	%		12.54	%		18.41	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$30,399			$29,515			$33,223			$42,250			$58,477			$27,746

Ratio to average net assets of: ⁽³⁾

Expenses, net of reimbursements and credits		1.15	%⁽⁴⁾		1.15	%		1.15	%⁽⁴⁾		1.16	%⁽⁵⁾		1.15	%		1.15	%

Expenses, before reimbursements and credits		1.64	%		1.61	%		1.47	%		1.47	%		1.50	%		1.64	%

Net investment income, net of reimbursements and credits		2.59	%		2.52	%		2.29	%		2.10	%		1.98	%		3.07	%

Net investment income, before reimbursements and credits		2.10	%		2.06	%		1.97	%		1.79	%		1.63	%		2.58	%

Portfolio Turnover Rate		18.89	%		47.00	%		51.11	%		31.88	%		43.52	%		146.28	%

(1)	Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes.
(2)	Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(3)	Annualized for periods less than one year.
(4)	The net expense ratio includes custodian credits of approximately $1,000 and $2,000, which represents 0.01% of average net assets for the six months ended September 30, 2007 and for the fiscal year ended March 31, 2006, respectively. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.
(5)	Expense ratio, net of reimbursements, for the year would have been 1.15% absent the effect of interest expense incurred by the Fund’s temporary borrowings against a line of credit.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT


	HIGH YIELD FIXED INCOME FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$8.24			$8.04			$8.12			$8.27			$7.56			$7.84


INCOME (LOSS) FROM INVESTMENT
OPERATIONS:

Net investment income		0.29			0.59			0.56			0.58			0.66			0.64

Net realized and unrealized gains (losses)		(0.24	)		0.20			(0.07	)		(0.15	)		0.74			(0.28	)

Total from Investment Operations		0.05			0.79			0.49			0.43			1.40			0.36



LESS DISTRIBUTIONS PAID:

From net investment income ⁽¹⁾		(0.29	)		(0.59	)		(0.57	)		(0.58	)		(0.69	)		(0.64	)

Total Distributions Paid		(0.29	)		(0.59	)		(0.57	)		(0.58	)		(0.69	)		(0.64	)



Net Asset Value, End of Period		$8.00			$8.24			$8.04			$8.12			$8.27			$7.56



Total Return ⁽²⁾		0.66	%		10.16	%		6.23	%		5.33	%		19.05	%		5.10	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$1,856,447			$1,820,377			$1,400,747			$848,070			$781,622			$388,619

Ratio to average net assets of: ⁽³⁾

Expenses, net of reimbursements and credits		0.90	%⁽⁴⁾		0.90	%		0.90	%⁽⁴⁾		0.90	%⁽⁴⁾		0.90	%		0.90	%

Expenses, before reimbursements and credits		1.00	%		1.00	%		1.03	%		1.02	%		1.04	%		1.07	%

Net investment income, net of reimbursements and credits		7.21	%		7.26	%		6.99	%		7.02	%		7.90	%		8.61	%

Net investment income, before reimbursements and credits		7.11	%		7.16	%		6.86	%		6.90	%		7.76	%		8.44	%

Portfolio Turnover Rate		29.38	%		69.24	%		69.82	%		87.57	%		152.16	%		138.79	%

(1)	Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes.
(2)	Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(3)	Annualized for periods less than one year.
(4)	The net expense ratio includes custodian credits of approximately $53,000, $73,000 and $72,000, which represents 0.01% of average net assets for the six months ended September 30, 2007 and for the fiscal years ended March 31, 2006, and 2005, respectively. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 FIXED INCOME FUNDS



fixed income funds
FINANCIAL HIGHLIGHTS (continued)


	SHORT-INTERMEDIATE U.S. GOVERNMENT FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$9.99			$9.90			$10.06			$10.48			$10.55			$10.16

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.21			0.41			0.30			0.21			0.18			0.29

Net realized and unrealized gains (losses)		(0.03	)		0.09			(0.15	)		(0.35	)		0.07			0.51

Total from Investment Operations		0.18			0.50			0.15			(0.14	)		0.25			0.80



LESS DISTRIBUTIONS PAID:

From net investment income		(0.21	)		(0.41	)		(0.31	)		(0.22	)		(0.20	)		(0.31	)

From net realized gains		-			-			-			(0.06	)		(0.12	)		(0.10	)

Total Distributions Paid		(0.21	)		(0.41	)		(0.31	)		(0.28	)		(0.32	)		(0.41	)



Net Asset Value, End of Period		$9.96			$9.99			$9.90			$10.06			$10.48			$10.55



Total Return ⁽¹⁾		1.91	%		5.19	%		1.49	%		(1.28	)%		2.42	%		7.91	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$214,360			$127,452			$140,587			$158,201			$198,956			$186,953

Ratio to average net assets of: ⁽²⁾

Expenses, net of reimbursements		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%		0.90	%

Expenses, before reimbursements		1.05	%		1.05	%		1.03	%		1.04	%		1.06	%		1.08	%

Net investment income, net of reimbursements		4.15	%		4.14	%		3.01	%		2.09	%		1.71	%		2.58	%

Net investment income, before reimbursements		4.00	%		3.99	%		2.88	%		1.95	%		1.55	%		2.40	%

Portfolio Turnover Rate		653.44	%		878.94	%		370.67	%		185.11	%		253.35	%		232.91	%

(1)	Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)	Annualized for periods less than one year.

See Notes to the Financial Statements.

FIXED INCOME FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT


	U.S. GOVERNMENT FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$9.81			$9.71			$9.91			$10.41			$10.54			$10.15

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.21			0.41			0.33			0.28			0.26			0.36

Net realized and unrealized gains (losses)		(0.05	)		0.10			(0.19	)		(0.43	)		0.02			0.71

Total from Investment Operations		0.16			0.51			0.14			(0.15	)		0.28			1.07



LESS DISTRIBUTIONS PAID:

From net investment income		(0.21	)		(0.41	)		(0.34	)		(0.29	)		(0.29	)		(0.38	)

From net realized gains		-			-			-			(0.06	)		(0.12	)		(0.30	)

Total Distributions Paid		(0.21	)		(0.41	)		(0.34	)		(0.35	)		(0.41	)		(0.68	)



Net Asset Value, End of Period		$9.76			$9.81			$9.71			$9.91			$10.41			$10.54



Total Return ⁽¹⁾		1.70	%		5.31	%		1.37	%		(1.39	)%		2.78	%		10.73	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period	$141,757			$143,309			$157,863			$204,531			$283,548			$352,415

Ratio to average net assets of: ⁽²⁾

Expenses, net of reimbursements and credits		0.90	%		0.90	%		0.90	%⁽³⁾		0.90	%		0.90	%		0.90	%

Expenses, before reimbursements and credits		1.05	%		1.06	%		1.05	%		1.03	%		1.05	%		1.05	%

Net investment income, net of reimbursements and credits		4.38	%		4.13	%		3.34	%		2.78	%		2.52	%		3.38	%

Net investment income, before reimbursements and credits		4.23	%		3.97	%		3.19	%		2.65	%		2.37	%		3.23	%

Portfolio Turnover Rate		701.61	%		785.03	%		386.93	%		142.61	%		221.88	%		177.76	%

(1)	Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)	Annualized for periods less than one year.
(3)	The net expense ratio includes custodian credits of approximately $16,000, which represents 0.01% of average net assets for the fiscal year ended March 31, 2006. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 FIXED INCOME FUNDS



fixed income funds
SCHEDULE OF INVESTMENTS
BOND INDEX FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

ASSET-BACKED SECURITIES - 5.1%


Automotive - 0.3%

AmeriCredit Automobile Receivables
Trust, Series 2005-DA, Class A4,

5.02%, 11/6/12	$	100	$	100

Capital One Prime Auto Receivables
Trust, Series 2006-2, Class A4,

4.94%, 7/15/12		100		100

Daimler Chrysler Auto Trust,
Series 2006-C, Class A3,
5.02%, 7/8/10		250		250

Ford Credit Auto Owner Trust,
Series 2006-A, Class A4,

5.07%, 12/15/10		200		200

Household Automotive Trust,
Series 2005-3, Class A4,

4.94%, 11/19/12		240		239

Household Automotive Trust,
Series 2006-3, Class A3,

5.28%, 9/17/11		100		100



				989



Commercial Mortgage Services - 4.5%

Banc of America Commercial Mortgage,
Inc., Series 2002-2, Class A3,

5.12%, 7/11/43		190		190

Banc of America Commercial Mortgage,
Inc., Series 2004-5, Class A3,

4.56%, 11/10/41		750		734

Banc of America Commercial Mortgage,
Inc., Series 2007-1, Class A4,

5.45%, 1/15/49		330		326

Bear Stearns Commercial Mortgage
Securities, Inc., Series 2003-T10,
Class A2,

4.74%, 3/13/40		375		365

Bear Stearns Commercial Mortgage
Securities, Series 2003-PWR2,
Class A4,

5.19%, 5/11/39		250		248

Bear Stearns Commercial Mortgage
Securities, Series 2004-PWR4,
Class A3,

5.47%, 6/11/41		500		500

Bear Stearns Commercial Mortgage
Securities, Series 2007-PW17,
Class A4,

5.69%, 6/11/50		500		503


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

ASSET-BACKED SECURITIES - 5.1% – CONTINUED


Commercial Mortgage Services - 4.5% – (continued)

Chase Funding Mortgage Loan Asset-
Backed Certificates, Series 2003-6,
Class 1A7,

4.28%, 9/25/33	$	262	$	245

Chase Manhattan Bank-First Union
National Bank, Series 1999-1, Class A2,

7.44%, 8/15/31		319		330

Citigroup/Deutsche Bank Commercial
Mortgage Trust, Series 2005-CD1,
Class A4,

5.23%, 7/15/44		500		495

Commercial Mortgage Acceptance Corp.,
Series 1999-C1, Class A2,

7.03%, 6/15/31		122		125

Commercial Mortgage Pass Through,
Series 2004-LB2A, Class A4,

4.72%, 3/10/39		500		481

Credit Suisse Mortgage Capital
Certificates, Series 2006-C1, Class A4,

5.61%, 2/15/39		500		501

CS First Boston Mortgage Securities
Corp., Series 2002-CKS4, Class A2,

5.18%, 11/15/36		440		439

CS First Boston Mortgage Securities
Corp., Series 2003-C3, Class A5,

3.94%, 5/15/38		300		281

First Union National Bank Commercial
Mortgage, Series 2002-C1, Class A2,

6.14%, 2/12/34		500		519

GE Capital Commercial Mortgage Corp.,
Series 2001-2, Class A4,

6.29%, 8/11/33		400		416

GMAC Commercial Mortgage Securities,
Inc., Series 2000-C3, Class A2,

6.96%, 9/15/35		400		421

Greenwich Capital Commercial Funding
Corp., Series 2004-GG1, Class A7,

5.32%, 6/10/36		500		497

Greenwich Capital Commercial Funding
Corp., Series 2005-GG3, Class A2,

4.31%, 8/10/42		300		296

GS Mortgage Securities Corp. II,
Series 2005-GG4, Class A4,

4.76%, 7/10/39		500		477

See Notes to the Financial Statements.

FIXED INCOME FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

ASSET-BACKED SECURITIES - 5.1% – CONTINUED


Commercial Mortgage Services - 4.5% – (continued)
JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2003-C1,
Class A1,

4.28%, 1/12/37		$54		$53

JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2005-LDP1,
Class A2,

4.63%, 3/15/46		335		332

JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2005-LDP5,
Class A4,

5.18%, 12/15/44		500		494

JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2006-LDP9,
Class A3,

5.34%, 5/15/47		500		491

JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2007-CB20,
Class A4,

5.79%, 2/12/51		500		502

JP Morgan Chase Commercial Mortgage
Securities Corp., Series 2007-LDPX,
Class A3,

5.42%, 1/15/49		500		493

LB-UBS Commercial Mortgage Trust,
Series 2001-C2, Class A2,

6.65%, 11/15/27		500		526

LB-UBS Commercial Mortgage Trust,
Series 2004-C1, Class A4,

4.57%, 1/15/31		540		515

LB-UBS Commercial Mortgage Trust,
Series 2006-C7, Class A3,

5.35%, 11/15/38		500		493

Merrill Lynch Mortgage Trust,
Series 2004-BPC1, Class A2,

4.07%, 10/12/41		145		142

Merrill Lynch Mortgage Trust,
Series 2004-KEY2, Class A2,

4.17%, 8/12/39		300		294

Merrill Lynch/Countrywide Commercial
Mortgage Trust, Series 2007-6,
Class A4,

5.49%, 3/12/51		500		494

Merrill Lynch/Countrywide Commercial
Mortgage Trust, Series 2007-8,
Class A3,

6.16%, 7/12/17		500		509


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

ASSET-BACKED SECURITIES - 5.1% – CONTINUED


Commercial Mortgage Services - 4.5% – (continued)

Morgan Stanley Capital I,
Series 2005-HQ7, Class A4,

5.21%, 11/14/42		$520		$513

Morgan Stanley Capital I,
Series 2006-HQ9, Class A4,

5.73%, 7/12/44		594		602

Wachovia Bank Commercial Mortgage
Trust, Series 2004-C11, Class A4,

5.03%, 1/15/41		500		494

Wachovia Bank Commercial Mortgage
Trust, Series 2005-C17, Class A4,

5.08%, 3/15/42		500		487

Wachovia Bank Commercial Mortgage
Trust, Series 2006-C28, Class A4,

5.57%, 10/15/48		500		501



				16,324



Credit Card - 0.3%

Bank One Issuance Trust, Series 2004-A6,
Class A6,

3.94%, 4/16/12		154		152

Capital One Multi-Asset Execution Trust,
Series 2005-A3, Class A3,

4.05%, 3/15/13		200		196

Chase Issuance Trust, Series 2005-A4,
Class A4,

4.23%, 1/15/13		100		98

Citibank Credit Card Issuance Trust,
Series 2003-A10, Class A10,

4.75%, 12/10/15		130		127

Citibank Credit Card Issuance Trust,
Series 2005-A9, Class A9,

5.10%, 11/20/17		170		166

Citibank Credit Card Issuance Trust,
Series 2006-A4, Class A4,

5.45%, 5/10/13		100		102

MBNA Credit Card Master Note Trust,
Series 2006-A1, Class A1,

4.90%, 7/15/11		100		100



				941



Home Equity - 0.0%

Countrywide Asset-Backed Certificates,
Series 2005-11, Class AF3,

4.78%, 2/25/36		150		147

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 FIXED INCOME FUNDS



fixed income funds
SCHEDULE OF INVESTMENTS
BOND INDEX FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

ASSET-BACKED SECURITIES - 5.1% – CONTINUED


Utilities - 0.0%

Detroit Edison Securitization Funding LLC,
Series 2001-1, Class A5,

6.42%, 3/1/15		$100		$105



Total Asset-Backed Securities


(Cost $18,544)				18,506



CORPORATE BONDS - 14.2%


Aerospace/Defense - 0.3%

Boeing (The) Co.,

5.13%, 2/15/13		100		100

6.13%, 2/15/33		35		35

General Dynamics Corp.,

4.25%, 5/15/13		100		94

Lockheed Martin Corp.,

8.50%, 12/1/29		75		95

6.15%, 9/1/36		75		76

Northrop Grumman Corp.,

7.13%, 2/15/11		100		106

7.75%, 2/15/31		25		29

Raytheon Co.,

5.38%, 4/1/13		100		100

United Technologies Corp.,

6.35%, 3/1/11		50		52

6.10%, 5/15/12		100		104

4.88%, 5/1/15		150		145



				936



Agriculture - 0.1%

Altria Group, Inc.,

7.00%, 11/4/13		75		81

Archer-Daniels-Midland Co.,

5.38%, 9/15/35		175		159

Philip Morris,

7.75%, 1/15/27		25		31

Reynolds American, Inc.,

7.63%, 6/1/16		75		80



				351



Auto Manufacturers - 0.2%

DaimlerChrysler North America

Holding Corp.,

7.75%, 1/18/11		75		80

6.50%, 11/15/13		375		389


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Auto Manufacturers - 0.2% – (continued)

8.50%, 1/18/31		$75		$93



				562



Auto Parts & Equipment - 0.0%

Johnson Controls, Inc.,
5.25%, 1/15/11		75		75



Banks - 1.5%

Bank of America Corp.,

5.88%, 2/15/09		175		177

6.25%, 4/15/12		350		363

4.88%, 9/15/12		250		245

5.63%, 10/14/16		100		100

Bank of America N.A.,

5.30%, 3/15/17		675		655

Bank of New York (The) Co., Inc.,

5.13%, 11/1/11		50		50

6.38%, 4/1/12		100		104

BB&T Capital Trust II,

6.75%, 6/7/36		75		77

BB&T Corp.,

5.20%, 12/23/15		200		191

Fifth Third Bancorp,

5.45%, 1/15/17		75		72

Fifth Third Bank,

4.20%, 2/23/10		100		98

HSBC Bank USA N.A.,

4.63%, 4/1/14		125		117

JPMorgan Chase Bank N.A.,

5.88%, 6/13/16		200		200

KeyBank N.A.,

5.45%, 3/3/16		100		97

M&I Marshall & Ilsley Bank,

4.85%, 6/16/15		130		121

Mellon Funding Corp.,

5.00%, 12/1/14		100		95
National City Corp.,

4.90%, 1/15/15		200		189

PNC Bank N.A.,

4.88%, 9/21/17		100		92

Popular North America, Inc.,

4.70%, 6/30/09		100		100
SunTrust Bank,

6.38%, 4/1/11		175		182

See Notes to the Financial Statements.

FIXED INCOME FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT




		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Banks - 1.5% – (continued)

Union Planters Corp.,

7.75%, 3/1/11		$150		$161

US Bank N.A.,

4.95%, 10/30/14		250		239

Wachovia Corp.,

5.30%, 10/15/11		275		276

5.63%, 10/15/16		300		296

5.75%, 6/15/17		200		201

Wells Fargo & Co.,

4.95%, 10/16/13		200		194

5.00%, 11/15/14		100		96

5.13%, 9/15/16		475		457

5.38%, 2/7/35		50		45



				5,290



Beverages - 0.2%

Anheuser-Busch Cos., Inc.,

4.95%, 1/15/14		175		170

6.45%, 9/1/37		50		52

Bottling Group LLC,

5.50%, 4/1/16		100		100

Coca-Cola Enterprises, Inc.,

7.13%, 8/1/17		50		56

8.50%, 2/1/22		150		185

6.95%, 11/15/26		50		55

PepsiAmericas, Inc.,

4.88%, 1/15/15		50		47

PepsiCo, Inc.,

5.15%, 5/15/12		75		76



				741



Biotechnology - 0.0%

Amgen, Inc., ⁽¹⁾ ⁽²⁾

5.85%, 6/1/17		75		74

6.38%, 6/1/37		50		50

Genentech, Inc.,

4.75%, 7/15/15		50		47



				171



Building Materials - 0.0%

CRH America, Inc.,

6.00%, 9/30/16		100		97


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Chemicals - 0.2%

Dow Chemical (The) Co.,

6.13%, 2/1/11		$175		$180

EI Du Pont de Nemours & Co.,

5.25%, 12/15/16		200		192

Monsanto Co.,

5.50%, 8/15/25		50		46

Praxair, Inc.,

3.95%, 6/1/13		75		70

Rohm & Haas Co.,

6.00%, 9/15/17		50		50

7.85%, 7/15/29		50		57



				595



Commercial Services - 0.1%

McKesson Corp.,

5.70%, 3/1/17		50		49

R.R. Donnelley & Sons Co.,

5.50%, 5/15/15		75		73

Western Union (The) Co.,

5.93%, 10/1/16		75		74

6.20%, 11/17/36		50		48



				244



Computers - 0.1%

Hewlett-Packard Co.,

6.50%, 7/1/12		75		79

IBM Corp.,

4.75%, 11/29/12		75		74

8.38%, 11/1/19		50		61

6.50%, 1/15/28		100		105



				319



Cosmetics/Personal Care - 0.1%

Procter & Gamble Co.,

6.88%, 9/15/09		100		104

4.85%, 12/15/15		83		80

5.80%, 8/15/34		100		99

5.55%, 3/5/37		50		48



				331



Diversified Financial Services - 4.2%

AEP Texas Central Transition Funding LLC,

5.09%, 1/1/12		170		168

American Express Co.,

4.88%, 7/15/13		250		240

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 FIXED INCOME FUNDS



fixed income funds
SCHEDULE OF INVESTMENTS
BOND INDEX FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Diversified Financial Services - 4.2% – (continued)

American General Finance Corp.,

4.00%, 3/15/11		$150		$143

5.38%, 10/1/12		275		271

5.75%, 9/15/16		75		73

Ameriprise Financial, Inc.,

5.35%, 11/15/10		100		101

Bear Stearns (The) Cos., Inc.,

4.50%, 10/28/10		100		97

5.30%, 10/30/15		200		187

6.40%, 10/2/17		100		100

Capital One Bank,

5.75%, 9/15/10		150		151

Caterpillar Financial Services Corp.,

4.75%, 2/17/15		275		259

5.85%, 9/1/17		100		101

CIT Group, Inc.,

5.60%, 4/27/11		325		317

5.65%, 2/13/17		100		93

Citigroup, Inc.,

6.50%, 1/18/11		400		416

5.25%, 2/27/12		250		250

5.13%, 5/5/14		200		195

5.00%, 9/15/14		250		241

5.30%, 1/7/16		200		195

5.50%, 2/15/17		225		221

6.00%, 8/15/17		100		102

6.63%, 6/15/32		100		104

6.00%, 10/31/33		100		97

Countrywide Home Loans, Inc.,

4.00%, 3/22/11		125		112

Credit Suisse First Boston USA, Inc.,

4.13%, 1/15/10		100		98

6.13%, 11/15/11		325		335

6.50%, 1/15/12		200		209

5.38%, 3/2/16		75		73

7.13%, 7/15/32		50		56

General Electric Capital Corp.,

3.13%, 4/1/09		325		317

4.88%, 10/21/10		200		200

6.13%, 2/22/11		150		155


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Diversified Financial Services - 4.2% – (continued)

6.00%, 6/15/12		$500		$516

5.45%, 1/15/13		225		227

4.88%, 3/4/15		350		336

5.00%, 1/8/16		100		97

5.63%, 9/15/17		75		75

6.75%, 3/15/32		150		165

Goldman Sachs Group (The), Inc.,

7.80%, 1/28/10		250		263

6.88%, 1/15/11		300		314

6.60%, 1/15/12		100		105

4.75%, 7/15/13		350		334

5.35%, 1/15/16		100		97

5.63%, 1/15/17		200		194

5.95%, 1/15/27		150		142

6.45%, 5/1/36		100		98

6.75%, 10/1/37		90		91

Household Finance Co.,

4.75%, 5/15/09		60		60

Household Finance Corp.,

8.00%, 7/15/10		75		80

6.38%, 10/15/11		550		568

4.75%, 7/15/13		100		95

HSBC Finance Corp.,

5.50%, 1/19/16		200		194

International Lease Finance Corp.,

5.45%, 3/24/11		75		75

5.65%, 6/1/14		200		198

John Deere Capital Corp.,

7.00%, 3/15/12		100		107

JPMorgan Chase & Co.,

6.75%, 2/1/11		450		473

6.63%, 3/15/12		75		79

5.75%, 1/2/13		150		152

5.13%, 9/15/14		125		122

5.15%, 10/1/15		150		144

6.13%, 6/27/17		100		102

Lehman Brothers Holdings, Inc.,

6.63%, 1/18/12		50		52

5.25%, 2/6/12		125		122

See Notes to the Financial Statements.

FIXED INCOME FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Diversified Financial Services - 4.2% – (continued)

6.00%, 7/19/12		$200		$203

4.80%, 3/13/14		400		372

6.20%, 9/26/14		25		25

6.50%, 7/19/17		200		203

Merrill Lynch & Co., Inc.,

4.79%, 8/4/10		100		98

6.05%, 8/15/12		250		256

5.45%, 7/15/14		200		196

6.05%, 5/16/16		200		200

5.70%, 5/2/17		50		49

6.40%, 8/28/17		150		155

6.11%, 1/29/37		150		141

Morgan Stanley,

6.75%, 4/15/11		200		209

5.63%, 1/9/12		250		252

6.60%, 4/1/12		100		104

4.75%, 4/1/14		425		399

5.38%, 10/15/15		100		96

5.45%, 1/9/17		100		96

6.25%, 8/28/17		100		102

National Rural Utilities Cooperative Finance Corp.,

7.25%, 3/1/12		275		293

SLM Corp.,

5.00%, 10/1/13		150		131

Unilever Capital Corp.,

7.13%, 11/1/10		100		106

5.90%, 11/15/32		50		49


				15,089


Electric - 1.0%

American Electric Power Co, Inc.,

5.25%, 6/1/15		150		143

Carolina Power & Light Co.,

5.13%, 9/15/13		300		294

CenterPoint Energy Transition Bond Co.

LLC, Series 2005-A, Class A2,

4.97%, 8/1/14		100		100

Commonwealth Edison Co.,

6.15%, 9/15/17		25		25

Consolidated Edison Co. of New York,

4.88%, 2/1/13		150		146


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Electric - 1.0% – (continued)

Constellation Energy Group, Inc.,

4.55%, 6/15/15		$100		$91

7.60%, 4/1/32		100		112

Detroit Edison (The) Co.,

5.70%, 10/1/37		50		46

Dominion Resources, Inc. of Virginia,

5.15%, 7/15/15		50		48

5.95%, 6/15/35		100		94

DTE Energy Co.,

6.38%, 4/15/33		50		50

Duke Energy Corp.,

5.30%, 10/1/15		100		98

6.45%, 10/15/32		106		109

Exelon Corp.,

5.63%, 6/15/35		75		67

FirstEnergy Corp.,

6.45%, 11/15/11		175		181

Florida Power & Light Co.,

5.65%, 2/1/37		250		235

Florida Power Corp.,

5.80%, 9/15/17		50		50

FPL Group Capital, Inc.,

6.65%, 6/15/67		25		24

Midamerican Energy Holdings Co.,

5.88%, 10/1/12		175		178

6.13%, 4/1/36		100		97

6.50%, 9/15/37 ⁽¹⁾ ⁽²⁾		100		101

Midamerican Funding LLC,

6.93%, 3/1/29		50		54

Nisource Finance Corp.,

5.45%, 9/15/20		100		92

Pacific Gas & Electric Co.,

4.80%, 3/1/14		100		95

6.05%, 3/1/34		200		196

Pacificorp,

6.25%, 10/15/37		50		50

PSEG Power LLC,

5.50%, 12/1/15		175		170

Public Service Co. of Colorado,

4.88%, 3/1/13		125		121

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 FIXED INCOME FUNDS



fixed income funds
SCHEDULE OF INVESTMENTS
BOND INDEX FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Electric - 1.0% – (continued)

Puget Sound Energy, Inc.,

5.48%, 6/1/35		$25		$22

Southern California Edison Co.,

5.00%, 1/15/14		150		146

6.65%, 4/1/29		50		52

5.55%, 1/15/37		25		23

Southern Power Co.,

6.25%, 7/15/12		100		103

Union Electric Co.,

6.40%, 6/15/17		100		103

Virginia Electric and Power Co.,

6.00%, 1/15/36		50		48

Xcel Energy, Inc.,

6.50%, 7/1/36		100		99


				3,663


Electrical Components & Equipment - 0.0%

Emerson Electric Co.,

4.75%, 10/15/15		100		95



Environmental Control - 0.0%

Waste Management, Inc.,

5.00%, 3/15/14		100		96

WMX Technologies,

7.10%, 8/1/26		25		26


				122



Food - 0.3%

Campbell Soup Co.,

6.75%, 2/15/11		100		105

Conagra Foods, Inc.,

6.75%, 9/15/11		100		105

General Mills, Inc.,

6.00%, 2/15/12		100		102

Heinz (H.J.) Co.,

6.63%, 7/15/11		100		104

Kellogg Co.,

6.60%, 4/1/11		50		52

7.45%, 4/1/31		50		57

Kraft Foods, Inc.,

6.25%, 6/1/12		125		129

6.50%, 8/11/17		150		155

6.50%, 11/1/31		50		49

7.00%, 8/11/37		100		105


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Food - 0.3% – (continued)

Kroger Co.,

6.75%, 4/15/12		$125		$131

5.50%, 2/1/13		75		75

Safeway, Inc.,

5.80%, 8/15/12		75		76


				1,245


Forest Products & Paper - 0.1%

International Paper Co.,

5.30%, 4/1/15		100		97

MeadWestvaco Corp.,

6.85%, 4/1/12		50		52

Weyerhaeuser Co.,

7.50%, 3/1/13		125		132

7.38%, 3/15/32		100		100


				381


Gas - 0.0%

Southern California Gas Co.,

5.75%, 11/15/35		150		142

Southern Union Co.,

8.25%, 11/15/29		25		28

				170


Healthcare — Products - 0.1%

Baxter International, Inc.,

4.63%, 3/15/15		100		94

Johnson & Johnson,

5.55%, 8/15/17		150		152

6.95%, 9/1/29		50		58


				304


Healthcare — Services - 0.2%

Aetna, Inc.,

5.75%, 6/15/11		125		127

Quest Diagnostics, Inc.,

6.40%, 7/1/17		100		101

UnitedHealth Group, Inc.,

5.00%, 8/15/14		100		96

5.38%, 3/15/16		150		146

WellPoint, Inc.,

5.25%, 1/15/16		150		144

5.88%, 6/15/17		100		99


				713

See Notes to the Financial Statements.

FIXED INCOME FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Holding Companies – Diversified - 0.0%

Capmark Financial Group, Inc., ⁽¹⁾ ⁽²⁾

6.30%, 5/10/17		$25		$21


Household Products/Wares - 0.1%

Clorox Co.,

5.00%, 1/15/15		75		71

Fortune Brands, Inc.,

5.38%, 1/15/16		100		95

Kimberly-Clark Corp.,

5.00%, 8/15/13		100		98

6.13%, 8/1/17		50		52


				316


Insurance - 0.7%

Ace INA Holdings, Inc.,

6.70%, 5/15/36		50		51

Allstate Corp.,

6.75%, 5/15/18		100		107

5.55%, 5/9/35		50		45

6.50%, 5/15/57		25		24

American International Group, Inc.,

4.95%, 3/20/12		375		368

5.05%, 10/1/15		100		95

Berkshire Hathaway Finance Corp.,

4.85%, 1/15/15		175		168

Chubb Corp.,

6.00%, 5/11/37		50		48

General Electric Global Insurance

Holdings Corp.,

6.45%, 3/1/19		75		78

Genworth Financial, Inc.,

5.75%, 6/15/14		100		100

Hartford Financial Services Group, Inc.,

4.63%, 7/15/13		75		72

5.95%, 10/15/36		75		71

Lincoln National Corp.,

6.05%, 4/20/67		100		96

Marsh & McLennan Cos., Inc.,

5.75%, 9/15/15		70		68

Metlife, Inc.,

5.00%, 6/15/15		175		167

Principal Life Income Funding Trusts,

5.10%, 4/15/14		50		50


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Insurance - 0.7% – (continued)

Progressive (The) Corp.,

6.38%, 1/15/12		$350		$366

Prudential Financial, Inc.,

4.50%, 7/15/13		125		119

5.10%, 9/20/14		40		39

5.75%, 7/15/33		50		46

Travelers Cos. (The), Inc.,

6.25%, 6/15/37		75		72

Travelers Property Casualty Corp.,

5.00%, 3/15/13		100		98


				2,348


Iron/Steel - 0.0%

United States Steel Corp.,

6.05%, 6/1/17		25		24


Machinery – Construction & Mining - 0.0%

Caterpillar, Inc.,

5.70%, 8/15/16		50		50

7.30%, 5/1/31		25		29


				79


Machinery – Diversified - 0.1%

Deere & Co.,

6.95%, 4/25/14		175		190

8.10%, 5/15/30		50		62


				252


Media - 0.9%

AOL Time Warner, Inc.,

6.88%, 5/1/12		100		105

AT&T Broadband,

8.38%, 3/15/13		100		112

CBS Corp.,

5.63%, 8/15/12		250		249

Comcast Cable Communications,

6.75%, 1/30/11		75		78

Comcast Corp.,

5.30%, 1/15/14		150		146

5.85%, 11/15/15		450		446

6.50%, 1/15/17		225		232

COX Communications, Inc.,

7.13%, 10/1/12		100		106

4.63%, 6/1/13		100		94

Disney (The Walt) Co.,

6.38%, 3/1/12		150		157

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 FIXED INCOME FUNDS



fixed income funds
SCHEDULE OF INVESTMENTS
BOND INDEX FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Media - 0.9% – (continued)

News America, Inc.,

5.30%, 12/15/14		$200		$194

6.40%, 12/15/35		125		121

Time Warner Cable, Inc., ⁽¹⁾ ⁽²⁾

5.85%, 5/1/17		275		267

Time Warner Entertainment Co.,

8.38%, 3/15/23		75		87

Time Warner, Inc.,

5.88%, 11/15/16		475		465

Viacom, Inc.,

6.25%, 4/30/16		250		251

Disney (The Walt) Co.,

5.88%, 12/15/17		100		101


				3,211


Mining - 0.1%

Alcoa, Inc.,

6.00%, 1/15/12		150		153

5.55%, 2/1/17		75		72


				225


Miscellaneous Manufacturing - 0.2%

3M Co.,

5.70%, 3/15/37		75		73

General Electric Co.,

5.00%, 2/1/13		200		198

Honeywell International, Inc.,

6.13%, 11/1/11		50		52

5.30%, 3/15/17		50		49

5.70%, 3/15/36		50		47

5.70%, 3/15/37		75		72

Textron, Inc.,

6.50%, 6/1/12		100		104


				595


Office/Business Equipment - 0.1%

Pitney Bowes, Inc.,

4.63%, 10/1/12		100		98

Xerox Corp.,

5.50%, 5/15/12		50		50

6.75%, 2/1/17		100		102


				250


Oil & Gas - 0.5%

Amerada Hess Corp.,

7.13%, 3/15/33		50		54


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Oil & Gas - 0.5% – (continued)

Anadarko Petroleum Corp.,

5.95%, 9/15/16		$100		$99

Apache Corp.,

5.63%, 1/15/17		150		148

Conoco, Inc.,

6.95%, 4/15/29		150		165

Devon Financing Corp. ULC,

6.88%, 9/30/11		150		158

7.88%, 9/30/31		25		29

Enterprise Products Operating LP,

5.60%, 10/15/14		250		245

6.30%, 9/15/17		85		85

Marathon Oil Corp.,

6.00%, 7/1/12		75		77

Pemex Project Funding Master Trust,

7.38%, 12/15/14		200		220

Valero Energy Corp.,

7.50%, 4/15/32		50		55

6.63%, 6/15/37		175		178

XTO Energy, Inc.,

6.25%, 4/15/13		100		103

6.25%, 8/1/17		125		127


				1,743


Pharmaceuticals - 0.4%

Abbott Laboratories,

5.60%, 5/15/11		100		102

5.88%, 5/15/16		75		76

Bristol-Myers Squibb Co.,

5.25%, 8/15/13		50		50

5.88%, 11/15/36		50		48

Cardinal Health, Inc., ⁽¹⁾ ⁽²⁾

6.00%, 6/15/17		75		75

Eli Lilly & Co.,

5.20%, 3/15/17		125		121

GlaxoSmithKline Capital, Inc.,

4.38%, 4/15/14		100		94

Merck & Co., Inc.,

4.75%, 3/1/15		75		71

5.75%, 11/15/36		50		47

Pfizer, Inc.,

3.30%, 3/2/09		100		98

See Notes to the Financial Statements.

FIXED INCOME FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Pharmaceuticals - 0.4% – (continued)

Pharmacia Corp.,

6.60%, 12/1/28		$25		$27

Schering-Plough Corp.,

5.55%, 12/1/13		100		99

6.00%, 9/15/17		100		100

Wyeth,

5.50%, 2/1/14		75		75

5.50%, 2/15/16		100		98

5.95%, 4/1/37		175		169


				1,350


Pipelines - 0.1%

Energy Transfer Partners LP,

6.13%, 2/15/17		150		145

Kinder Morgan Energy Partners LP,

5.13%, 11/15/14		250		238

Southern Natural Gas Co.,

7.35%, 2/15/31		75		78


				461


Real Estate - 0.0%

ERP Operating LP,

6.63%, 3/15/12		100		103

Regency Centers LP,

5.88%, 6/15/17		25		24


				127


Real Estate Investment Trusts - 0.2%

Boston Properties, Inc.,

6.25%, 1/15/13		100		101

Brandywine Operating Partnership LP,

5.70%, 5/1/17		150		140

Health Care Property Investors, Inc.,

6.00%, 1/30/17		50		48

Hospitality Properties Trust,

6.70%, 1/15/18		75		75

HRPT Properties Trust,

6.25%, 6/15/17		75		72

6.65%, 1/15/18		50		49

iStar Financial, Inc.,

5.15%, 3/1/12		120		111

Liberty Property LP,

6.63%, 10/1/17		50		50

Simon Property Group LP,

5.10%, 6/15/15		50		47


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Real Estate Investment Trusts - 0.2% – (continued)

5.25%, 12/1/16		$200		$187


				880


Retail - 0.7%

Costco Wholesale Corp.,

5.50%, 3/15/17		150		147

CVS Caremark Corp.,

5.75%, 8/15/11		100		101

5.75%, 6/1/17		75		73

6.25%, 6/1/27		50		48

Home Depot, Inc.,

5.25%, 12/16/13		75		72

5.40%, 3/1/16		250		234

J.C. Penney Corp., Inc.,

6.38%, 10/15/36		50		47

Lowe’s Cos., Inc.,

5.00%, 10/15/15		150		141

Macys Retail Holdings, Inc.,

5.88%, 1/15/13		100		100

May Department Stores (The) Co.,

5.75%, 7/15/14		150		145

Target Corp.,

5.88%, 3/1/12		300		307

5.38%, 5/1/17		75		72

Wal-Mart Stores, Inc.,

4.55%, 5/1/13		500		482

7.25%, 6/1/13		175		190

5.25%, 9/1/35		175		154

Yum! Brands, Inc.,

6.25%, 4/15/16		50		50



				2,363


Savings & Loans - 0.1%

Golden West Financial Corp.,

4.75%, 10/1/12		75		73

Washington Mutual Bank Henderson

N.V.,

6.88%, 6/15/11		200		207


				280



Software - 0.0%

Oracle Corp. and Ozark Holding, Inc.,

5.25%, 1/15/16		125		122

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 FIXED INCOME FUNDS



fixed income funds
SCHEDULE OF INVESTMENTS
BOND INDEX FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Telecommunications - 1.1%

AT&T Corp.,

8.00%, 11/15/31		$165		$201

AT&T Wireless Services, Inc.,

7.88%, 3/1/11		100		108

AT&T, Inc.,

6.80%, 5/15/36		50		54

BellSouth Corp.,

5.20%, 9/15/14		150		146

5.20%, 12/15/16		800		769

Bellsouth Telecommunications,

6.38%, 6/1/28		75		76

Cisco Systems, Inc.,

5.50%, 2/22/16		325		323

Embarq Corp.,

7.08%, 6/1/16		150		155

Motorola, Inc.,

7.63%, 11/15/10		100		106

SBC Communications, Inc.,

5.88%, 2/1/12		100		102

5.10%, 9/15/14		150		145

6.15%, 9/15/34		125		124

Sprint Capital Corp.,

8.38%, 3/15/12		150		165

6.90%, 5/1/19		100		100

Sprint Nextel Corp.,

6.00%, 12/1/16		525		504

Verizon Communications, Inc.,

5.55%, 2/15/16		300		297

Verizon Global Funding Corp.,

6.88%, 6/15/12		200		213

7.75%, 12/1/30		250		289

Verizon Virginia, Inc.,

4.63%, 3/15/13		100		97


				3,974



Textiles - 0.0%

Mohawk Industries, Inc.,

6.13%, 1/15/16		100		100



Transportation - 0.2%

Burlington Northern Santa Fe Corp.,

6.75%, 7/15/11		100		105

6.15%, 5/1/37		100		96


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

CORPORATE BONDS - 14.2% – CONTINUED


Transportation - 0.2% – (continued)

CSX Corp.,

6.00%, 10/1/36		$100		$94

6.15%, 5/1/37		100		95

Federal Express Corp.,

9.65%, 6/15/12		75		89

Norfolk Southern Corp.,

5.26%, 9/17/14		200		192

Union Pacific Corp.,

6.50%, 4/15/12		100		104

7.00%, 2/1/16		100		106


				881


Total Corporate Bonds


(Cost $51,783)				51,096

FOREIGN ISSUER BONDS - 4.4%


Banks - 0.9%

Deutsche Bank A.G. London,

6.00%, 9/1/17		225		228

HSBC Holdings PLC,

5.25%, 12/12/12		300		295

Kreditanstalt fuer Wiederaufbau,

4.63%, 1/20/11		350		353

4.75%, 5/15/12		250		251

4.13%, 10/15/14		150		145

4.88%, 1/17/17		200		198

0.00%, 6/29/37		500		101

Landwirtschaftliche Rentenbank,

5.25%, 7/15/11		175		179

5.13%, 2/1/17		300		300

Oesterreichische Kontrollbank A.G.,

4.50%, 3/9/15		250		242

Royal Bank of Canada,

5.65%, 7/20/11		250		256

Royal Bank of Scotland Group PLC,

6.38%, 2/1/11		100		104

5.00%, 11/12/13		125		126

5.00%, 10/1/14		200		193

UBS A.G./Stamford Branch,

5.88%, 7/15/16		300		310

				3,281

See Notes to the Financial Statements.

FIXED INCOME FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

FOREIGN ISSUER BONDS - 4.4% – CONTINUED


Beverages - 0.1%

Diageo Capital PLC,

5.13%, 1/30/12		$25		$25

5.50%, 9/30/16		150		146

Diageo Finance BV,

5.50%, 4/1/13		100		99


				270



Building Materials - 0.0%

Lafarge S.A.,

6.50%, 7/15/16		50		51



Chemicals - 0.0%

Potash Corp. of Saskatchewan,

5.88%, 12/1/36		50		46



Diversified Financial Services - 0.2%

ConocoPhillips Canada Funding Co.,

5.63%, 10/15/16		250		249

Credit Suisse Guernsey Ltd.,

5.86%, 5/29/49		150		142

Eksportfinans A/S,

5.50%, 5/25/16		100		103

5.50%, 6/26/17		100		102

UFJ Finance Aruba AEC,

6.75%, 7/15/13		200		207


				803



Electric - 0.1%

Hydro-Quebec,

8.00%, 2/1/13		150		172

Ontario Hydro,

7.45%, 3/31/13		50		56

Scottish Power PLC,

5.38%, 3/15/15		100		98


				326



Insurance - 0.1%

AXA S.A.,

8.60%, 12/15/30		75		89

ING Groep N.V.,

5.78%, 12/29/49		75		71

XL Capital Ltd.,

6.50%, 12/31/49		50		47


				207



Metal Fabricate/Hardware - 0.0%

Norsk Hydro ASA,

7.75%, 6/15/23		100		119


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

FOREIGN ISSUER BONDS - 4.4% – CONTINUED


Mining - 0.2%

Alcan, Inc.,

4.50%, 5/15/13		$100		$95

6.13%, 12/15/33		50		48

BHP Billiton Finance Ltd.,

5.40%, 3/29/17		50		49

BHP Billiton Finance USA Ltd.,

4.80%, 4/15/13		100		98

5.25%, 12/15/15		100		97

Vale Overseas Ltd.,

6.25%, 1/23/17		125		126

6.88%, 11/21/36		125		129


				642



Miscellaneous Manufacturing - 0.0%

Tyco Electronics Group S.A., ⁽¹⁾ ⁽²⁾

7.13%, 10/1/37		50		52



Multi-National - 0.7%

Asian Development Bank/Pasig,

4.13%, 9/15/10		150		149

5.59%, 7/16/18		50		51

European Investment Bank,

5.00%, 2/8/10		100		102

4.00%, 3/3/10		500		496

4.63%, 5/15/14		150		147

4.88%, 1/17/17		400		393

5.13%, 5/30/17		350		351

Inter-American Development Bank,

4.38%, 9/20/12		200		198

3.50%, 7/8/13		200		188

International Bank for Reconstruction & Development,

5.00%, 4/1/16		150		152

4.75%, 2/15/35		25		23

International Finance Corp.,

5.13%, 5/2/11		150		153

4.75%, 4/25/12		25		25

Nordic Investment Bank,

3.88%, 6/15/10		100		98


				2,526



Oil & Gas - 0.3%

Alberta Energy Co. Ltd.,

7.38%, 11/1/31		75		82

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 FIXED INCOME FUNDS



fixed income funds
SCHEDULE OF INVESTMENTS
BOND INDEX FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

FOREIGN ISSUER BONDS - 4.4% – CONTINUED


Oil & Gas - 0.3% – (continued)

Anadarko Finance Co.,

6.75%, 5/1/11		$50		$52

7.50%, 5/1/31		75		82

Canadian Natural Resources Ltd.,

5.70%, 5/15/17		175		171

6.25%, 3/15/38		50		48

Conoco Funding Co.,

6.35%, 10/15/11		300		313

EnCana Corp.,

6.63%, 8/15/37		75		77

Nexen, Inc.,

7.88%, 3/15/32		75		87

Petro-Canada,

4.00%, 7/15/13		100		92

Suncor Energy, Inc.,

5.95%, 12/1/34		50		48


				1,052



Oil & Gas Services - 0.0%

Weatherford International Ltd.,

5.50%, 2/15/16		50		48



Pharmaceuticals - 0.1%

AstraZeneca PLC,

5.90%, 9/15/17		350		355



Pipelines - 0.1%

Enbridge, Inc.,

5.80%, 6/15/14		75		75

TransCanada PipeLines Ltd.,

5.85%, 3/15/36		125		119


				194



Regional - 0.3%

Province of British Columbia Canada,

4.30%, 5/30/13		100		96

Province of Manitoba Canada,

7.50%, 2/22/10		250		267

Province of Nova Scotia Canada,

5.75%, 2/27/12		100		104

Province of Ontario Canada,

4.38%, 2/15/13		250		242

Province of Quebec Canada,

7.50%, 9/15/29		275		342


				1,051


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

FOREIGN ISSUER BONDS - 4.4% – CONTINUED


Sovereign - 0.7%

Italy Government International Bond,

6.00%, 2/22/11		$425		$444

5.25%, 9/20/16		125		126

5.38%, 6/12/17		150		153

5.38%, 6/15/33		175		170

Republic of Korea,

4.25%, 6/1/13		100		94

Svensk Exportkredit AB,

4.50%, 9/27/10		150		150

Swedish Export Credit,

4.88%, 9/29/11		225		226

United States of Mexico,

8.38%, 1/14/11		100		110

6.38%, 1/16/13		325		342

6.63%, 3/3/15		100		107

8.13%, 12/30/19		150		182

7.50%, 4/8/33		100		119

6.75%, 9/27/34		100		109


				2,332



Telecommunications - 0.6%

British Telecommunications PLC,

8.63%, 12/15/10		100		110

9.13%, 12/15/30		100		132

Deutsche Telekom International
Finance BV,

5.25%, 7/22/13		200		196

5.75%, 3/23/16		225		222

France Telecom S.A.,

7.75%, 3/1/11		300		323

Royal KPN N.V.,

8.00%, 10/1/10		100		108

Telecom Italia Capital S.A.,

5.25%, 11/15/13		150		146

5.25%, 10/1/15		200		190

6.38%, 11/15/33		50		48

Telefonica Emisiones SAU,

6.42%, 6/20/16		350		359

Vodafone Group PLC,

5.00%, 12/16/13		250		240

5.00%, 9/15/15		100		94

5.63%, 2/27/17		50		49

See Notes to the Financial Statements.

FIXED INCOME FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

FOREIGN ISSUER BONDS - 4.4% – CONTINUED


Telecommunications - 0.6% – (continued)

6.15%, 2/27/37		$100		$96


				2,313



Transportation - 0.0%

Canadian National Railway Co.,

4.40%, 3/15/13		100		95

6.20%, 6/1/36		25		25

Canadian Pacific Railway Co.,

5.95%, 5/15/37		50		46


				166



Total Foreign Issuer Bonds


(Cost $15,895)				15,834



U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾


Fannie Mae - 22.7%

5.25%, 1/15/09		1,000		1,009

5.13%, 7/13/09		2,000		2,024

7.25%, 1/15/10		500		530

4.75%, 3/12/10		3,000		3,022

6.63%, 11/15/10		1,000		1,063

5.50%, 3/15/11		500		516

6.00%, 5/15/11		500		525

4.63%, 10/15/13		500		497

5.00%, 3/15/16		500		502

5.00%, 5/11/17		1,000		1,001

6.63%, 11/15/30		200		236

5.63%, 7/15/37		1,000		1,051

Pool #255376,

6.00%, 8/1/19		289		293

Pool #255695,

4.50%, 3/1/35		104		103

Pool #256675,

5.00%, 4/1/27		681		656

Pool #256677,

6.00%, 4/1/27		474		476

Pool #256792,

6.50%, 6/1/22		405		413

Pool #357630,

5.00%, 10/1/19		469		460

Pool #720049,

5.50%, 7/1/33		979		962


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED


Fannie Mae - 22.7% – (continued)

Pool #722424,

4.35%, 7/1/33		$172		$171

Pool #725185,

5.00%, 2/1/19		508		499

Pool #725425,

5.50%, 4/1/34		954		938

Pool #730811,

4.50%, 8/1/33		958		891

Pool #735222,

5.00%, 2/1/35		503		481

Pool #735358,

5.50%, 2/1/35		1,468		1,441

Pool #735502,

6.00%, 4/1/35		289		290

Pool #745754,

5.00%, 9/1/34		3,936		3,768

Pool #747383,

5.50%, 10/1/33		1,404		1,379

Pool #766083,

4.65%, 2/1/34		84		83

Pool #773287,

4.37%, 3/1/35		221		218

Pool #790406,

6.00%, 9/1/34		1,039		1,043

Pool #793666,

5.50%, 9/1/34		881		865

Pool #795136,

4.96%, 10/1/34		134		133

Pool #796250,

5.50%, 11/1/34		768		753

Pool #799999,

4.75%, 11/1/34		146		144

Pool #805043,

3.82%, 12/1/34		310		304

Pool #805159,

4.78%, 1/1/35		185		184

Pool #807701,

4.50%, 12/1/19		516		497

Pool #811944,

4.50%, 1/1/20		795		766

Pool #815639,

4.97%, 6/1/35		112		111

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 FIXED INCOME FUNDS



fixed income funds
SCHEDULE OF INVESTMENTS
BOND INDEX FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED


Fannie Mae - 22.7% – (continued)

Pool #817795,

6.00%, 8/1/36		$1,041		$1,043

Pool #820998,

4.00%, 4/1/35		291		283

Pool #821912,

4.93%, 6/1/35		388		385

Pool #822455,

4.64%, 4/1/35		328		325

Pool #826057,

5.00%, 7/1/35		807		771

Pool #826368,

5.10%, 7/1/35		199		198

Pool #831676,

6.50%, 8/1/36		468		476

Pool #832628,

5.50%, 9/1/20		363		362

Pool #835517,

4.97%, 8/1/35		182		178

Pool #840577,

5.00%, 10/1/20		306		300

Pool #844909,

4.50%, 10/1/20		488		470

Pool #846600,

5.16%, 1/1/36		398		397

Pool #850614,

5.48%, 1/1/36		337		337

Pool #863759,

4.00%, 12/1/20		398		374

Pool #864435,

4.50%, 12/1/20		1,230		1,185

Pool #866109,

5.14%, 12/1/35		127		127

Pool #871135,

6.00%, 1/1/37		716		717

Pool #884125,

5.39%, 6/1/36		55		56

Pool #884720,

5.43%, 8/1/36		286		287

Pool #885769,

6.00%, 6/1/36		434		435

Pool #885866,

6.00%, 6/1/36		992		993


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED


Fannie Mae - 22.7% – (continued)

Pool #887111,

5.50%, 5/1/20		$278		$278

Pool #888100,

5.50%, 9/1/36		3,627		3,560

Pool #888152,

5.00%, 5/1/21		879		863

Pool #888205,

6.50%, 2/1/37		928		945

Pool #888366,

7.00%, 4/1/37		500		516

Pool #888447,

4.00%, 5/1/21		475		447

Pool #892536,

6.50%, 9/1/36		536		546

Pool #892968,

6.50%, 8/1/21		195		199

Pool #893363,

5.00%, 6/1/36		732		700

Pool #893366,

5.00%, 4/1/35		1,063		1,017

Pool #894453,

5.93%, 9/1/36		172		172

Pool #897519,

5.99%, 11/1/36		90		90

Pool #898089,

5.50%, 7/1/26		449		444

Pool #902188,

5.86%, 11/1/36		93		95

Pool #905090,

5.50%, 10/1/21		513		512

Pool #905759,

5.90%, 12/1/36		273		278

Pool #906090,

5.50%, 1/1/37		2,883		2,824

Pool #906237,

5.78%, 1/1/37		88		90

Pool #906389,

5.31%, 1/1/37		87		87

Pool #907818,

5.61%, 1/1/37		94		95

Pool #910338,

5.79%, 3/1/37		200		203

See Notes to the Financial Statements.

FIXED INCOME FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED


Fannie Mae - 22.7% – (continued)

Pool #914522,

5.77%, 3/1/37		$92		$93

Pool #915499,

5.00%, 3/1/37		1,323		1,262

Pool #918515,

5.00%, 6/1/37		1,700		1,622

Pool #919461,

5.73%, 4/1/37		100		101

Pool #920457,

4.86%, 8/1/36		88		86

Pool #920468,

4.38%, 4/1/34		84		82

Pool #920988,

5.88%, 11/1/36		84		85

Pool #923023,

6.34%, 1/1/37		200		203

Pool #923123,

5.00%, 4/1/36		472		451

Pool #923166,

7.50%, 1/1/37		428		443

Pool #928261,

4.50%, 3/1/36		490		455

Pool #940623,

5.50%, 8/1/37		1,497		1,466

Pool #945876,

5.50%, 8/1/37		1,493		1,463

Pool #945916,

6.50%, 8/1/37		1,000		1,018

Pool #946527,

7.00%, 9/1/37		483		498

Pool #947216,

6.00%, 10/1/37		994		996

Pool TBA, ⁽⁴⁾

5.50%, 10/1/14		500		499

6.00%, 10/21/17		500		507

5.00%, 11/1/17		800		784

5.00%, 11/1/17		500		490

7.00%, 10/14/29		500		516

6.50%, 10/1/31		1,500		1,527

5.50%, 10/15/33		3,200		3,134

6.00%, 10/15/33		7,400		7,409

5.00%, 11/15/34		1,500		1,430


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED


Fannie Mae - 22.7% – (continued)

4.50%, 12/31/49		$1,000		$963


				81,541



Federal Farm Credit Bank - 0.1%

5.25%, 9/13/10		500		511



Federal Home Loan Bank - 3.0%

3.63%, 11/14/08		500		495

5.00%, 2/20/09		500		503

4.75%, 4/24/09		2,000		2,009

5.38%, 7/17/09		500		508

5.00%, 9/18/09		1,000		1,012

4.63%, 2/18/11		4,000		4,020

5.38%, 8/19/11		1,000		1,029

4.88%, 11/18/11		500		505

5.38%, 5/18/16		500		515


				10,596



Freddie Mac - 7.9%

5.13%, 10/15/08		500		503

5.00%, 6/11/09		2,000		2,018

6.63%, 9/15/09		1,000		1,041

4.13%, 7/12/10		500		496

5.25%, 10/6/11		1,000		1,007

4.75%, 3/5/12		3,800		3,822

5.13%, 7/15/12		1,000		1,022

5.25%, 4/18/16		500		510

5.00%, 2/16/17		500		501

Pool #1B2125,

4.53%, 3/1/35		47		46

Pool #1B2130,

4.30%, 3/1/35		97		95

Pool #1B7328,

5.79%, 4/1/37		199		201

Pool #1B7359,

5.71%, 5/1/37		199		201

Pool #1G0321,

4.85%, 9/1/35		408		406

Pool #1G1506,

5.52%, 1/1/37		190		190

Pool #1G1623,

5.70%, 4/1/37		198		196

Pool #1G1763,

4.88%, 11/1/35		124		123

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 FIXED INCOME FUNDS



fixed income funds
SCHEDULE OF INVESTMENTS
BOND INDEX FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED


Freddie Mac - 7.9% – (continued)

Pool #1G1790,

5.44%, 11/1/35		$164		$164

Pool #1G2620,

6.00%, 11/1/36		175		177

Pool #1G2638,

6.28%, 9/1/36		161		163

Pool #1G3611,

6.03%, 4/1/37		199		203

Pool #1H1348,

5.83%, 10/1/36		177		178

Pool #1H2569,

5.22%, 9/1/35		75		75

Pool #1H2605,

5.66%, 4/1/36		90		90

Pool #1J0345,

5.71%, 3/1/37		95		96

Pool #1J0355,

5.66%, 3/1/37		84		84

Pool #1J0365,

5.93%, 4/1/37		248		251

Pool #1J1317,

5.73%, 4/1/36		323		326

Pool #1J1390,

5.96%, 12/1/36		183		183

Pool #1J1646,

5.30%, 4/1/37		391		391

Pool #1L0078,

5.12%, 6/1/35		187		185

Pool #1L0130,

4.70%, 7/1/35		95		94

Pool #1L1480,

4.37%, 12/1/33		199		196

Pool #1N0243,

6.50%, 8/1/36		77		78

Pool #781274,

4.73%, 2/1/34		103		102

Pool #782905,

4.90%, 12/1/34		115		112

Pool #783081,

4.69%, 4/1/35		132		132

Pool #847755,

5.52%, 5/1/37		491		492


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED


Freddie Mac - 7.9% – (continued)

Pool TBA, ⁽⁴⁾

5.50%, 11/1/13		$500		$498

5.00%, 10/1/14		2,000		1,960

5.50%, 11/1/17		500		498

6.50%, 11/1/23		1,000		1,017

5.50%, 11/15/29		2,500		2,447

5.00%, 11/1/32		2,000		1,908

6.00%, 10/1/34		3,000		3,003

6.00%, 12/31/49		500		506

6.50%, 12/31/49		500		509


				28,496



Freddie Mac Gold - 9.5%

Pool #A16753,

5.00%, 11/1/33		494		473

Pool #A27950,

5.50%, 11/1/34		4,181		4,102

Pool #A31136,

5.50%, 1/1/35		610		598

Pool #A46224,

5.00%, 7/1/35		395		377

Pool #A48104,

5.00%, 1/1/36		1,024		978

Pool #A51296,

6.00%, 8/1/36		849		850

Pool #A54897,

6.50%, 8/1/36		523		532

Pool #A56110,

5.50%, 12/1/36		1,382		1,354

Pool #A58690,

6.00%, 3/1/37		163		164

Pool #A58718,

5.50%, 3/1/37		519		509

Pool #A61573,

5.00%, 9/1/34		3,216		3,083

Pool #A61597,

5.50%, 12/1/35		483		474

Pool #A64474,

5.50%, 9/1/37		499		489

Pool #B10630,

4.50%, 11/1/18		1,290		1,245

Pool #B17658,

4.50%, 1/1/20		49		47

See Notes to the Financial Statements.

FIXED INCOME FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED


Freddie Mac Gold - 9.5% – (continued)

Pool #B18502,

5.50%, 6/1/20		$231		$231

Pool #B18931,

4.50%, 3/1/20		241		232

Pool #C91009,

5.00%, 11/1/26		289		279

Pool #C91020,

5.50%, 3/1/27		674		665

Pool #D97197,

5.00%, 2/1/27		467		450

Pool #G01907,

4.50%, 8/1/34		557		518

Pool #G02069,

5.50%, 3/1/36		583		572

Pool #G02391,

6.00%, 11/1/36		289		289

Pool #G02540,

5.00%, 11/1/34		1,012		969

Pool #G02649,

6.00%, 1/1/37		482		483

Pool #G02702,

6.50%, 1/1/37		958		976

Pool #G02911,

6.00%, 4/1/37		476		476

Pool #G02973,

6.00%, 6/1/37		1,000		1,001

Pool #G03134,

5.50%, 8/1/36		1,094		1,072

Pool #G03176,

5.00%, 8/1/37		1,100		1,049

Pool #G03218,

6.00%, 9/1/37		1,000		1,001

Pool #G03351,

6.00%, 9/1/37		1,993		1,996

Pool #G08189,

7.00%, 3/1/37		357		369

Pool #G08192,

5.50%, 4/1/37		1,692		1,657

Pool #G11776,

4.50%, 9/1/20		471		453

Pool #G12673,

5.00%, 9/1/21		935		917


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED


Freddie Mac Gold - 9.5% – (continued)

Pool #G30327,

4.50%, 1/1/27		$392		$372

Pool #J00991,

4.00%, 1/1/21		493		463

Pool #J02541,

4.00%, 9/1/20		483		454

Pool #J03041,

6.00%, 7/1/21		390		395

Pool #J03736,

5.50%, 11/1/21		457		456

Pool #J05307,

4.50%, 8/1/22		800		770

Pool #J06175,

5.00%, 5/1/21		428		421


				34,261



Government National Mortgage Association - 0.8%

Pool TBA, ⁽⁴⁾

6.50%, 10/1/30		500		511

6.00%, 11/15/30		500		503

5.50%, 12/31/49		500		493

6.00%, 12/31/49		1,000		1,006

6.50%, 12/31/49		500		511


				3,024



Government National Mortgage Association I - 1.1%

Pool #510835,

5.50%, 2/15/35		502		496

Pool #614169,

5.00%, 7/15/33		482		467

Pool #634431,

6.00%, 9/15/34		179		180

Pool #641416,

5.50%, 4/15/35		619		611

Pool #646341,

6.00%, 11/15/36		485		488

Pool #648538,

5.00%, 12/15/35		679		658

Pool #651753,

5.50%, 3/15/36		495		488

Pool #661917,

7.00%, 4/15/37		473		491


				3,879

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 FIXED INCOME FUNDS

fixed income funds

SCHEDULE OF INVESTMENTS

BOND INDEX FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
U.S. GOVERNMENT AGENCIES - 46.8% ⁽³⁾ – CONTINUED

Government National Mortgage Association II - 1.5%

Pool #003570,

6.00%, 6/20/34		$513		$516

Pool #003665,

5.50%, 1/20/35		1,533		1,508

Pool #3852,

6.00%, 5/20/36		500		502

Pool #3994,

5.00%, 6/20/37		500		480

Pool #4018,

6.50%, 8/20/37		499		510

Pool #4026,

5.00%, 9/20/37		500		480

Pool #4027,

5.50%, 9/20/37		500		491

Pool #654804,

6.00%, 5/20/36		735		738

				5,225

Tennessee Valley Authority - 0.2%

5.50%, 7/18/17		600		618


Total U.S. Government Agencies


(Cost $167,477)				168,151



U.S. GOVERNMENT OBLIGATIONS - 27.7%

U.S. Treasury Bonds - 6.2%

8.75%, 8/15/20		1,450		1,994

7.88%, 2/15/21		1,550		2,011

8.00%, 11/15/21		2,125		2,803

7.13%, 2/15/23		800		993

6.25%, 8/15/23		3,300		3,791

6.00%, 2/15/26		2,500		2,831

5.38%, 2/15/31		1,000		1,071

4.50%, 2/15/36		475		450

4.75%, 2/15/37		5,265		5,192

5.00%, 5/15/37		1,215		1,246


				22,382


U.S. Treasury Notes - 21.5%

4.38%, 11/15/08		500		502

4.75%, 11/15/08		1,000		1,008

4.75%, 2/28/09		5,000		5,053

4.50%, 3/31/09		3,000		3,023


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
U.S. GOVERNMENT OBLIGATIONS - 27.7% – CONTINUED

U.S. Treasury Notes - 21.5% – (continued)

4.50%, 4/30/09		$6,500		$6,555

4.88%, 5/31/09		4,000		4,059

4.63%, 7/31/09		3,000		3,034

4.00%, 8/31/09		3,000		3,002

4.75%, 2/15/10		5,500		5,594

4.50%, 5/15/10		4,500		4,557

5.75%, 8/15/10		1,000		1,046

4.50%, 11/15/10		3,000		3,041

4.50%, 2/28/11		3,000		3,042

4.88%, 4/30/11		5,750		5,899

4.63%, 10/31/11		4,500		4,580

4.63%, 2/29/12		1,350		1,374

4.63%, 7/31/12		8,500		8,648

4.13%, 8/31/12		3,800		3,784

4.25%, 8/15/13		650		649

4.00%, 2/15/15		2,000		1,946

4.50%, 11/15/15		2,000		2,003

4.63%, 2/15/17		2,500		2,511

4.50%, 5/15/17		1,850		1,840

4.75%, 8/15/17		500		507


				77,257


Total U.S. Government Obligations


(Cost $98,574)				99,639



MUNICIPAL BOND - 0.1%

Illinois - 0.1%

Illinois State Taxable Pension G.O.
Unlimited Bonds,

5.10%, 6/1/33		425		398


Total Municipal Bond


(Cost $406)				398

See Notes to the Financial Statements.

FIXED INCOME FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 11.0%
ABN-AMRO Bank, Amsterdam,
Eurodollar Time Deposit,

5.50%, 10/1/07		$39,409		$39,409


Total Short-Term Investment


(Cost $39,409)				39,409




Total Investments - 109.3%


(Cost $392,088)				393,033


Liabilities less Other Assets - (9.3)%				(33,482	)


NET ASSETS - 100.0%				$359,551


(1)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds.
(2)		Restricted security that has been deemed illiquid. At September 30, 2007, the value of these restricted illiquid securities amounted to approximately $640,000 or 0.2% of net assets. Additional information on each restricted illiquid security is as follows:


	ACQUISITION
	AND	ACQUISITION
	ENFORECEABLE	COST
SECURITY	DATE	(000S)
Amgen, Inc.,
5.85%, 6/1/17	5/24/07		$75
6.38%, 6/1/37	5/24/07		50

Capmark Financial Group, Inc.,
6.30%, 5/10/17	5/3/07		25

Cardinal Health, Inc.,
6.00%, 6/15/17	6/5/07		75

Midamerican Energy Holdings Co.,
6.50%, 9/15/37	8/23/07-9/5/07		100

Time Warner Cable, Inc.,
5.85%, 5/1/17	4/4/07-8/15/07		268

Tyco Electronics Group S.A.,
7.13%, 10/1/37	9/27/07		51


(3)		The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(4)		When-Issued Security

Percentages shown are based on Net Assets.

At September 30, 2007, the credit quality distribution for the Bond Index Fund as a percentage of investments including cash was:


QUALITY DISTRIBUTION *	%

AAA	83.2	%

AA	4.5

A	7.1

BAA	5.2



Total	100.0	%


*		Standard & Poor’s Rating Services

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 FIXED INCOME FUNDS

fixed income funds

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
ASSET- BACKED SECURITIES - 10.4%

Commercial Mortgage Services - 10.4%

Banc of America Commercial
Mortgage, Inc., Series 2004-5,
Class A2,

4.18%, 11/10/41		$4,758		$4,690

Bear Stearns Commercial Mortgage
Securities, Series 2005-PWR9,
Class A2,

4.74%, 9/11/42		9,545		9,469

Chase Manhattan Bank-First Union
National Bank, Series 1999-1,
Class A2,

7.44%, 8/15/31		6,953		7,204

Commercial Mortgage Asset Trust,
Series 1999-C1, Class A3,

6.64%, 1/17/32		5,114		5,212

Credit Suisse First Boston Mortgage
Securities Corp., Series 2002-CKN2,
Class A3,

6.13%, 4/15/37		11,294		11,704

Credit Suisse First Boston Mortgage
Securities Corp., Series 2004-C5,
Class A2,

4.18%, 11/15/37		8,415		8,278

First Union National Bank Commercial
Mortgage, Series 2002-C1, Class A2,

6.14%, 2/12/34		5,785		6,006

GMAC Commercial Mortgage
Securities, Inc., Series 2002-C3,
Class A2,

4.93%, 7/10/39		2,555		2,521

Greenwich Capital Commercial
Funding Corp., Series 2005-GG3,
Class A2,

4.31%, 8/10/42		10,805		10,647

JP Morgan Chase Commercial
Mortgage Securities Corp.,
Series 2005-LDP1, Class A2,

4.63%, 3/15/46		5,185		5,133

LB-UBS Commercial Mortgage Trust,
Series 2005-C3, Class A2,

4.55%, 7/15/30		8,693		8,597

LB-UBS Commercial Mortgage Trust,
Series 2005-C5, Class A2,

4.89%, 9/15/30		9,045		9,018

Merrill Lynch Mortgage Trust,
Series 2004-BPC1, Class A2,

4.07%, 10/12/41		5,800		5,700


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
ASSET- BACKED SECURITIES - 10.4% – CONTINUED

Commercial Mortgage Services - 10.4% – (continued)
Morgan Stanley Dean Witter Capital I,
Series 2001-TOP1, Class A4,

6.66%, 2/15/33		$8,741		$9,115
Morgan Stanley Dean Witter Capital I,
Series 2001-TOP3, Class A4,

6.39%, 7/15/33		11,220		11,685


				114,979


Total Asset-Backed Securities


(Cost $115,501)				114,979



CORPORATE BONDS - 18.7%

Aerospace/Defense - 0.6%

L-3 Communications Corp.,

7.63%, 6/15/12		7,120		7,280


Apparel - 0.4%

Levi Strauss & Co.,

12.25%, 12/15/12		4,445		4,779


Banks - 0.7%

Bank of America Corp.,

6.50%, 9/15/37		5,205		5,401

JPMorgan Chase Bank N.A.,

6.00%, 10/1/17		1,925		1,944


				7,345


Diversified Financial Services - 5.5%

ANZ Capital Trust, ^{(1) (2)}

4.48%, 1/29/49		4,500		4,381

Citigroup, Inc.,

6.00%, 8/15/17		4,560		4,666

Countrywide Financial Corp.,

5.80%, 6/7/12		1,860		1,743

Ford Motor Credit Co.,

7.25%, 10/25/11		5,520		5,173

Goldman Sachs Group (The), Inc.,

6.75%, 10/1/37		4,195		4,240

Goldman Sachs Group, Inc.,

5.63%, 1/15/17		3,045		2,954

International Lease Finance Corp.,

5.35%, 3/1/12		5,125		5,072

International Lease Finance Corp.,

5.65%, 6/1/14		1,085		1,073

See Notes to the Financial Statements.

FIXED INCOME FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 18.7% – CONTINUED

Diversified Financial Services - 5.5% – (continued)

JPMorgan Chase & Co.,

5.38%, 10/1/12		$5,470		$5,476

Lehman Brothers Holdings Capital
Trust V,

5.86%, 11/29/49		3,875		3,692

Lehman Brothers Holdings, Inc.,

6.50%, 7/19/17		3,765		3,816

6.88%, 7/17/37		7,655		7,593

Merrill Lynch & Co., Inc.,

6.11%, 1/29/37		5,200		4,894

Power Receivable Finance LLC, ^{(1) (2)}

6.29%, 1/1/12		1,173		1,208

USB Realty Corp., ^{(1) (2)}

6.09%, 12/22/49		4,700		4,515



				60,496


Electric - 1.8%

AES (The) Corp.,

9.50%, 6/1/09		5,135		5,340

Midamerican Energy Holdings Co., ^{(1) (2)}

6.50%, 9/15/37		4,570		4,619

Nevada Power Co.,

6.65%, 4/1/36		4,520		4,487

PSEG Energy Holdings LLC,

10.00%, 10/1/09		5,215		5,591



				20,037


Healthcare - Services - 0.6%

HCA, Inc., ⁽¹⁾

9.13%, 11/15/14		6,530		6,889


Holding Companies – Diversified - 0.6%

Capmark Financial Group, Inc., ^{(1) (2)}

6.30%, 5/10/17		7,780		6,455


Insurance - 0.5%

Allstate Corp.,

6.50%, 5/15/57		455		438

Liberty Mutual Group, Inc., ^{(1) (2)}

7.50%, 8/15/36		4,970		5,095



				5,533


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 18.7% – CONTINUED

Media - 1.8%

Charter Communications Operating
LLC/Charter Communications
Operating Capital, ⁽¹⁾

8.00%, 4/30/12		$4,545		$4,522

Comcast Corp.,

6.95%, 8/15/37		5,040		5,290

Idearc, Inc.,

8.00%, 11/15/16		4,480		4,469

Time Warner Cable, Inc., ^{(1) (2)}

5.85%, 5/1/17		5,550		5,396



				19,677


Mining - 0.3%

Freeport-McMoRan Copper

& Gold, Inc.,

8.56%, 4/1/15		2,760		2,867


Oil & Gas - 1.4%

Apache Corp.,

6.00%, 1/15/37		2,470		2,378

Chesapeake Energy Corp.,

7.50%, 6/15/14		3,185		3,265

Premcor Refining Group (The), Inc.,

9.50%, 2/1/13		1,950		2,059

6.75%, 5/1/14		7,385		7,697



				15,399


Oil & Gas Services - 0.7%

Dresser-Rand Group, Inc.,

7.38%, 11/1/14		3,830		3,820

Weatherford International, Inc., ^{(1) (2)}

6.80%, 6/15/37		3,450		3,544



				7,364


Pharmaceuticals - 0.4%

Schering-Plough Corp.,

6.55%, 9/15/37		4,555		4,647


Pipelines - 0.9%

Consolidated Natural Gas Co.,

5.00%, 3/1/14		2,905		2,785

Kinder Morgan Energy Partners LP,

6.00%, 2/1/17		4,090		4,044

Williams Cos., Inc.,

8.13%, 3/15/12		3,435		3,701



				10,530

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 FIXED INCOME FUNDS

fixed income funds

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 18.7% – CONTINUED

Real Estate Investment Trusts - 0.6%

HRPT Properties Trust,

6.65%, 1/15/18		$4,565		$4,489

iStar Financial, Inc.,

5.88%, 3/15/16		3,110		2,783


				7,272


Retail - 0.2%

CVS Caremark Corp.,

5.75%, 6/1/17		1,965		1,918


Telecommunications - 1.3%

Embarq Corp.,

8.00%, 6/1/36		4,195		4,470

Sprint Capital Corp.,

6.90%, 5/1/19		5,470		5,492

Verizon New Jersey, Inc.,

5.88%, 1/17/12		2,335		2,375

Verizon of New England, Inc.,

6.50%, 9/15/11		1,600		1,658



				13,995


Transportation - 0.4%

Kansas City Southern Railway,

9.50%, 10/1/08		5,105		5,213


Total Corporate Bonds


(Cost $209,280)				207,696



FOREIGN ISSUER BONDS - 3.1%

Banks - 0.6%

Royal Bank of Scotland Group PLC, ⁽¹⁾

6.99%, 10/29/49		6,515		6,637


Insurance - 1.3%

Allied World Assurance Holdings Ltd.
of Bermuda,

7.50%, 8/1/16		2,620		2,747

Catlin Insurance Co. Ltd., ⁽¹⁾

7.25%, 12/31/49		5,600		5,282

XL Capital Ltd.,

6.50%, 12/31/49		7,200		6,725



				14,754


Mining - 0.7%

Vale Overseas Ltd.,

6.25%, 1/11/16		7,640		7,693


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
FOREIGN ISSUER BONDS - 3.1% – CONTINUED

Oil & Gas - 0.5%

Nexen, Inc.,

6.40%, 5/15/37		$5,913		$5,746


Total Foreign Issuer Bonds


(Cost $35,406)				34,830



U.S. GOVERNMENT AGENCIES - 49.7% ⁽³⁾

Fannie Mae - 37.0%

4.38%, 9/13/10		17,000		16,970

Pool #255452,

5.50%, 10/1/19		6,582		6,574
Pool #535714,

7.50%, 1/1/31		209		219

Pool #535982,

7.50%, 5/1/31		439		460

Pool #545003,

8.00%, 5/1/31		14		15

Pool #545437,

7.00%, 2/1/32		423		441

Pool #545556,

7.00%, 4/1/32		289		301

Pool #545757,

7.00%, 6/1/32		2,113		2,201

Pool #555189,

7.00%, 12/1/32		1,555		1,618

Pool #581806,

7.00%, 7/1/31		708		737

Pool #725424,

5.50%, 4/1/34		20,961		20,589

Pool #725787,

5.00%, 9/1/19		16,164		15,873

Pool #739433,

5.00%, 10/1/18		416		409

Pool #796371,

5.00%, 10/1/19		269		264

Pool #796457,

6.00%, 9/1/34		11,624		11,667

Pool #797773,

5.00%, 3/1/20		1,743		1,709

Pool #814782,

7.00%, 4/1/35		41		43

See Notes to the Financial Statements.

FIXED INCOME FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
U.S. GOVERNMENT AGENCIES – 49.7% ⁽³⁾ – CONTINUED

Fannie Mae - 37.0% – (continued)

Pool #829125,

5.50%, 10/1/35		$14,546		$14,264

Pool #831810,

6.00%, 9/1/36		18,280		18,310

Pool #845182,

5.50%, 11/1/35		14,978		14,688

Pool #869217,

5.47%, 2/1/36		12,881		12,936

Pool #869801,

5.50%, 4/1/21		1,668		1,665

Pool #893082,

5.86%, 9/1/36		9,127		9,202

Pool #919638,

5.50%, 9/1/37		13,817		13,534

Pool #928324,

6.50%, 5/1/37		12,041		12,261

Pool #928475,

5.50%, 6/1/37		25,903		25,372

Pool #928560,

5.50%, 7/1/37		10,851		10,629

Pool #942292,

6.50%, 8/1/37		7,797		7,940

Pool #944500,

5.50%, 7/1/37		10,942		10,717

Pool TBA, ⁽⁴⁾

5.50%, 10/15/33		33,592		32,899

6.00%, 10/15/33		105,567		105,699

5.00%, 12/31/49		41,520		39,599



				409,805



Freddie Mac - 8.3%

4.63%, 10/25/12		83,860		83,765

Pool #1J0365,

5.93%, 4/1/37		8,150		8,233



				91,998



Freddie Mac Gold - 3.9%

Pool #A65182,

6.50%, 9/1/37		17,326		17,637

Pool #C00910,

7.50%, 1/1/30		690		723

Pool #C02790,

6.50%, 4/1/37		10,009		10,188


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
U.S. GOVERNMENT AGENCIES – 49.7% ⁽³⁾– CONTINUED

Freddie Mac Gold - 3.9% – (continued)

Pool #C02838,

5.50%, 5/1/37		$14,377		$14,078



				42,626



Government National Mortgage Association - 0.5%

Pool #595091,

6.00%, 10/15/32		1,957		1,974

Pool #627123,

5.50%, 3/15/34		3,985		3,934



				5,908


Total U.S. Government Agencies


(Cost $552,591)				550,337

U.S. GOVERNMENT OBLIGATIONS - 12.5%

U.S. Treasury Bonds - 1.7%

4.75%, 2/15/37		10,052		9,913

5.00%, 5/15/37		8,525		8,745


				18,658



U.S. Treasury Inflation Indexed Note - 3.6%

2.63%, 7/15/17		39,131		40,539



U.S. Treasury Notes - 7.2%

4.00%, 8/31/09		4,074		4,077

4.50%, 5/15/10		8,114		8,216

4.13%, 8/31/12		8,275		8,241

4.00%, 2/15/15		13,225		12,867

4.75%, 8/15/17		45,320		45,929



				79,330


Total U.S. Government Obligations



(Cost $137,433)				138,527


	NUMBER		VALUE
	OF WARRANTS		(000S)
WARRANTS - 0.0%

Leap Wireless International, Exp. 4/15/10, Strike $96.80 ⁽¹⁾*		500		-



Total Warrants


(Cost $5)				-

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 FIXED INCOME FUNDS

fixed income funds

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 22.0%

FHLB Discount Note,

4.06%, 10/1/07		$76,901		$76,901

ABN-AMRO Bank, Amsterdam,

Eurodollar Time Deposit,

5.50%, 10/1/07		166,298		166,298



Total Short-Term Investments


(Cost $243,199)				243,199



Total Investments - 116.4%



(Cost $1,293,415)				1,289,568

Liabilities less Other Assets - (16.4)%				(182,152	)



NET ASSETS - 100.0%			$	1,107,416

(1)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available, in accordance with procedures established by the Trustees of Northern Funds.
(2)		Restricted security that has been deemed illiquid. At September 30, 2007, the value of these restricted illiquid securities amounted to approximately $35,213,000 or 3.2% of net assets. Additional information on each restricted illiquid security is as follows:


	ACQUISITION
	AND	ACQUISITION
	ENFORCEABLE	COST
SECURITY	DATE	(000S)
ANZ Capital Trust,
4.48%, 1/29/49	9/21/06	$	4,368

Capmark Financial Group, Inc.,
6.30%, 5/10/17	5/3/07-6/21/07		7,641

Liberty Mutual Group, Inc.,
7.50%, 8/15/36	9/26/07		5,014

Midamerican Energy Holdings Co.,
6.50%, 9/15/37	8/23/07-9/5/07		4,592

Power Receivable Finance LLC,
6.29%, 1/1/12	9/30/03		1,173

Time Warner Cable, Inc.,
5.85%, 5/1/17	4/4/07		5,537

USB Realty Corp.,
6.09%, 12/22/49	1/19/07		4,740

Weatherford International, Inc.,
6.80%, 6/15/37	6/13/07		3,429

(3)		The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.
(4)		When-Issued Security

*		Non-Income Producing Security

Percentages shown are based on Net Assets.

At September 30, 2007, the credit quality distribution for the Fixed Income Fund as a percentage of investments including cash was:


QUALITY DISTRIBUTION *	%
AAA		77.7	%

AA		2.1

A		5.1

BBB		8.8

BB		3.2

B or Lower		3.1



Total		100.0	%

Standard & Poor’s Rating Services

See Notes to the Financial Statements.

FIXED INCOME FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT

FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2007 (UNAUDITED)

GLOBAL FIXED INCOME FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)⁽¹⁾		(000S)
DEBT OBLIGATIONS - 90.6%

British Pound Sterling - 6.7%

Treasury of Great Britain,

5.00%, 3/7/08		112		$229

4.00%, 3/7/09		70		141

4.75%, 6/7/10		140		285

5.25%, 6/7/12		150		310

5.00%, 9/7/14		70		143

4.00%, 9/7/16		75		142

5.00%, 3/7/25		159		331

4.25%, 3/7/36		237		458



				2,039



Canadian Dollar - 4.2%

Government of Canada,

5.00%, 6/1/14		1,230		1,291



Danish Krone - 4.3%

Government of Denmark,

4.00%, 8/15/08		6,920		1,320



Euro - 31.0%

Bundesobligation,

3.25%, 4/17/09		616		868

Buoni Poliennali Del Tesoro,

4.50%, 5/1/09		280		402

5.25%, 11/1/29		90		136

Deutschland Bundesrepublik,

4.25%, 1/4/14		850		1,214

4.00%, 7/4/16		420		587

4.25%, 7/4/17		120		170

6.25%, 1/4/24		285		485

6.50%, 7/4/27		990		1,758

5.50%, 1/4/31		95		152

Government of Belgium,

5.00%, 9/28/11		400		587

4.25%, 9/28/14		190		270

Government of Finland,

3.00%, 7/4/08		265		375

Government of France O.A.T.,

4.75%, 10/25/12		500		730

Government of France Treasury

Note BTAN,

2.50%, 7/12/10		624		853

Government of Ireland,

5.00%, 4/18/13		100		148


	PRINCIPAL
	AMOUNT		VALUE
	(000S)⁽¹⁾		(000S)
DEBT OBLIGATIONS - 90.6% – CONTINUED

Euro - 31.0% – (continued)

Government of Spain,

3.25%, 7/30/10		188		$262

Portugal Obrigacoes do Tesouro OT,

5.15%, 6/15/11		300		441



				9,438



Japanese Yen - 19.6%

Government of Japan Five Year Bond,

1.10%, 3/20/11		80,000		700

Government of Japan Ten Year Bonds,

1.80%, 9/21/09		60,000		533

1.90%, 6/21/10		75,000		671

1.40%, 9/20/11		53,000		468

1.50%, 3/20/12		15,000		133

0.80%, 3/20/13		160,000		1,363

1.90%, 6/20/14		36,500		330

1.30%, 3/20/15		20,000		173

Government of Japan Twenty Year Bond,

1.90%, 3/22/21		180,000		1,574



				5,945



Swedish Krona - 0.9%

Kingdom of Sweden,

9.00%, 4/20/09		1,600		267



United States Dollar - 23.9%

Freddie Mac,

5.13%, 7/15/12		750		767

U.S. Treasury Bonds,

8.75%, 5/15/17		300		395

6.63%, 2/15/27		500		608

6.38%, 8/15/27		240		285

4.50%, 2/15/36		165		156

U.S. Treasury Notes,

5.00%, 7/31/08		1,171		1,179

4.63%, 11/30/08		300		302

4.63%, 7/31/09		560		566

4.88%, 8/15/09		500		508

4.63%, 11/15/09		300		304

4.38%, 12/15/10		728		736

4.50%, 9/30/11		300		304

4.13%, 5/15/15		650		636

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 FIXED INCOME FUNDS

fixed income funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

GLOBAL FIXED INCOME FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)⁽¹⁾		(000S)
DEBT OBLIGATIONS - 90.6% – CONTINUED

United States Dollar - 23.9% – (continued)

5.13%, 5/15/16		485		$505



				7,251


Total Debt Obligations



(Cost $25,047)				27,551

SHORT-TERM INVESTMENT - 7.7%

ABN-AMRO Bank, Amsterdam,

Eurodollar Time Deposit,

5.50%, 10/1/07		$2,323		2,323



Total Short-Term Investment



(Cost $2,323)				2,323



Total Investments - 98.3%



(Cost $27,370)				29,874

Other Assets less Liabilities - 1.7%				525



NET ASSETS - 100.0%			$	30,399

(1)

Principal amounts stated in local currencies.

Percentages shown are based on Net Assets.

At September 30, 2007, the quality distribution for the Global Fixed Income Fund as a percentage of investments including cash were:


QUALITY DISTRIBUTION *	%
U.S. Government		21.6	%

Other Governments		75.9

AAA		2.5



Total		100.0	%

Standard & Poor’s Rating Services

At September 30, 2007, Global Fixed Income Fund had outstanding forward foreign currency exchange contracts as follows:

AMOUNT

CONTRACTS

(LOCAL

EXCHANGE

(LOCAL

UNREALIZED

TO DELIVER

CURRENCY)

FOR

CURRENCY)

SETTLEMENT

GAIN/LOSS

CURRENCY

(000S)

CURRENCY

(000S)

DATE

(000S)

British Pound

U.S. Dollar

165

10/31/07

)

Canadian Dollar

520

U.S. Dollar

520

10/31/07

)

Danish Krone

4,985

U.S. Dollar

946

10/31/07

)

U.S.

Australian

Dollar

126

Dollar

145

10/31/07

U.S. Dollar

1,568

Euro

1,109

10/31/07

U.S.

Japanese

Dollar

3,157

Yen

360,060

10/31/07

)

U.S.

Swedish

Dollar

121

Krona

790

10/31/07

Total

)

See Notes to the Financial Statements.

FIXED INCOME FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT

fixed income funds

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2007 (UNAUDITED)

HIGH YIELD FIXED INCOME FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 79.5%

Aerospace/Defense - 1.1%

L-3 Communications Corp.,

6.38%, 10/15/15		$9,165		$9,005

Moog, Inc.,

6.25%, 1/15/15		12,160		11,673



				20,678



Agriculture - 0.7%

Alliance One International, Inc., ⁽¹⁾

8.50%, 5/12/12		13,485		13,215



Apparel - 1.0%

Levi Strauss & Co.,

12.25%, 12/15/12		7,450		8,011

9.75%, 1/15/15		10,225		10,736



				18,747



Auto Manufacturers - 1.3%

General Motors Corp.,

7.13%, 7/15/13		26,025		23,878



Auto Parts & Equipment - 0.7%

Lear Corp.,

8.50%, 12/1/13		13,325		12,759



Beverages - 0.7%

Constellation Brands, Inc.,

7.25%, 9/1/16		13,825		13,825



Building Materials - 1.0%

Gibraltar Industries, Inc.,

8.00%, 12/1/15		14,030		13,188

Ply Gem Industries, Inc.,

9.00%, 2/15/12		6,750		5,603



				18,791



Chemicals - 2.8%

Hexion US Finance Corp/Hexion Nova Scotia Finance ULC,

9.75%, 11/15/14		8,150		8,965

Lyondell Chemical Co.,

8.00%, 9/15/14		12,650		13,915

Momentive Performance Materials, Inc., ⁽¹⁾

9.75%, 12/1/14		7,025		6,955

11.50%, 12/1/16		1,900		1,881

Mosaic (The) Co., ⁽¹⁾

7.38%, 12/1/14		9,400		9,870


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 79.5% – CONTINUED

Chemicals - 2.8% – (continued)

NewMarket Corp.,

7.13%, 12/15/16		$9,950		$9,651



				51,237



Commercial Services - 3.2%

ARAMARK Corp.,

8.86%, 2/1/15		17,550		17,725

Corrections Corp. of America,

6.25%, 3/15/13		8,825		8,693

Education Management LLC /

Education Management Corp.,

10.25%, 6/1/16		8,425		8,720

Hertz Corp.,

8.88%, 1/1/14		10,200		10,506

NCO Group, Inc.,

11.88%, 11/15/14		8,100		7,877

Service Corp. International,

7.00%, 6/15/17		5,650		5,551



				59,072



Computers - 0.5%

Sungard Data Systems, Inc.,

9.13%, 8/15/13		9,586		9,969



Diversified Financial Services - 5.2%

E*Trade Financial Corp.,

7.38%, 9/15/13		9,375		8,765

7.88%, 12/1/15		4,800		4,440

Ford Motor Credit Co.,

7.25%, 10/25/11		56,550		52,994

GMAC LLC,

6.88%, 9/15/11		19,325		18,391

Residential Capital Corp.,

7.38%, 6/30/10		14,200		11,786


				96,376



Electric - 7.5%

AES (The) Corp.,

9.50%, 6/1/09		17,790		18,502

Aquila, Inc.,

14.88%, 7/1/12		6,925		8,725

CMS Energy Corp.,

9.88%, 10/15/07		5,130		5,130

8.50%, 4/15/11		1,390		1,493

Dynegy Holdings, Inc., ⁽¹⁾

7.50%, 6/1/15		11,050		10,663

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 FIXED INCOME FUNDS

fixed income funds


SCHEDULE OF INVESTMENTS
HIGH YIELD FIXED INCOME FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 79.5% – CONTINUED

Electric - 7.5% – (continued)

7.75%, 6/1/19		$7,400		$7,076

Edison Mission Energy,

7.50%, 6/15/13		16,875		17,297

7.00%, 5/15/17 ⁽¹⁾		13,200		13,002

NRG Energy, Inc.,

7.38%, 2/1/16		12,200		12,230

7.38%, 1/15/17		6,100		6,100

PSEG Energy Holdings LLC,

10.00%, 10/1/09		14,635		15,689

Reliant Energy, Inc.,

7.63%, 6/15/14		12,700		12,795

Sierra Pacific Power Co.,

6.25%, 4/15/12		1,300		1,325

Sierra Pacific Resources,

8.63%, 3/15/14		4,270		4,520

TECO Energy, Inc.,

6.75%, 5/1/15		4,925		5,041


				139,588

Electrical Components & Equipment - 0.9%

Coleman Cable, Inc., ⁽¹⁾

9.88%, 10/1/12		6,600		6,419

Superior Essex Communications LLC/Essex Group, Inc.,

9.00%, 4/15/12		9,677		9,556


				15,975



Engineering & Construction - 0.7%

Ahern Rentals, Inc.,

9.25%, 8/15/13		14,500		13,956



Entertainment - 0.3%

WMG Acquisition Corp.,

7.34%, 4/15/10		6,810		5,925



Environmental Control - 0.9%

Allied Waste North America, Inc.,

6.88%, 6/1/17		16,325		16,407



Food - 0.5%

Smithfield Foods, Inc.,

7.00%, 8/1/11		9,025		9,138



Forest Products & Paper - 2.3%

Georgia-Pacific Corp.,

8.13%, 5/15/11		16,665		16,915

Glatfelter,

7.13%, 5/1/16		10,100		10,049


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 79.5% – CONTINUED

Forest Products & Paper - 2.3% – (continued)

Verso Paper Holdings LLC and Verson Paper, Inc.,

11.38%, 8/1/16		$15,060		$15,851



				42,815



Gaming - 4.7%

Buffalo Thunder Development Authority, ⁽¹⁾ ⁽²⁾

9.38%, 12/15/14		9,500		8,930

Chukchansi Economic Development Authority, ⁽¹⁾ ⁽²⁾

8.00%, 11/15/13		9,005		9,095

Harrah’s Operating Co., Inc.,

6.50%, 6/1/16		12,963		10,565

MGM Mirage,

8.50%, 9/15/10		16,575		17,321

7.50%, 6/1/16		6,850		6,807

Pinnacle Entertainment, Inc.,

8.25%, 3/15/12		6,050		6,126

River Rock Entertainment Authority,

9.75%, 11/1/11		10,136		10,465

Seneca Gaming Corp.,

7.25%, 5/1/12		7,295		7,350

Wimar Opco LLC, ⁽¹⁾

9.63%, 12/15/14		13,900		10,772



				87,431



Healthcare - Products - 0.5%

Accellent, Inc.,

10.50%, 12/1/13		9,175		8,487



Healthcare - Services - 4.7%

AMR HoldCo, Inc./Emcare HoldCo, Inc.,

10.00%, 2/15/15		4,835		5,125

Community Health Systems, Inc.,⁽¹⁾

8.88%, 7/15/15		18,050		18,546

HCA, Inc., ⁽¹⁾

9.13%, 11/15/14		32,550		34,340

9.25%, 11/15/16		13,800		14,663

Tenet Healthcare Corp.,

6.88%, 11/15/31		18,475		13,810



				86,484



Household Products/Wares - 0.9%
ACCO Brands Corp.,

7.63%, 8/15/15		9,210		8,795

See Notes to the Financial Statements.

FIXED INCOME FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 79.5% – CONTINUED

Household Products/Wares - 0.9% – (continued)

Visant Holding Corp.,

8.75%, 12/1/13		$7,055		$7,214



				16,009



Insurance - 0.5%

Crum & Forster Holdings Corp.,

7.75%, 5/1/17		9,350		8,883



Iron/Steel - 0.5%

Tube City IMS Corp.,

9.75%, 2/1/15		9,000		8,798



Lodging - 0.5%

Host Marriott LP,

6.75%, 6/1/16		10,325		10,222



Media - 9.8%

CCH I Holdings LLC,

13.50%, 1/15/14		25,775		25,259

CCH I LLC,

11.00%, 10/1/15		18,968		19,205

CSC Holdings, Inc.,

8.13%, 7/15/09		14,375		14,627

6.75%, 4/15/12		4,315		4,153

Dex Media East LLC,

12.13%, 11/15/12		4,850		5,177

Donnelley (R.H.) Corp.,

10.88%, 12/15/12		7,263		7,735

8.88%, 1/15/16		9,425		9,602

8.88%, 10/15/17 ⁽¹⁾ ⁽³⁾		11,525		11,698

Echostar DBS Corp.,

7.00%, 10/1/13		22,650		23,160

Idearc, Inc.,

8.00%, 11/15/16		21,185		21,132

Mediacom Broadband LLC,

8.50%, 10/15/15		7,025		7,043

TL Acquisitions, Inc., ⁽¹⁾

0.00%, 7/15/15		12,200		9,882

Univision Communications, Inc., ⁽¹⁾

9.75%, 3/15/15		11,025		10,749

Young Broadcasting, Inc.,

10.00%, 7/15/10		14,335		13,224



				182,646



Metal Fabricate/Hardware - 0.5%

Mueller Water Products, Inc.,

7.38%, 6/1/17		9,050		8,417


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 79.5% – CONTINUED

Mining - 0.8%

Freeport-McMoRan Copper & Gold, Inc.,

8.25%, 4/1/15		$8,350		$9,018

8.39%, 4/1/15		5,600		5,817



				14,835



Miscellaneous Manufacturing - 0.7%

Park-Ohio Industries, Inc.,

8.38%, 11/15/14		13,215		12,752



Oil & Gas - 5.5%

AmeriGas Partners LP/AmeriGas Eagle Finance Corp.,

7.13%, 5/20/16		8,490		8,257

Chesapeake Energy Corp.,

7.50%, 6/15/14		6,055		6,206

6.88%, 1/15/16		15,225		15,225

Denbury Resources, Inc.,

7.50%, 12/15/15		5,175		5,304

Encore Acquisition Co.,

7.25%, 12/1/17		8,160		7,732

Inergy LP/Inergy Finance Corp.,

8.25%, 3/1/16		8,300		8,570

Pioneer Natural Resources Co.,

6.88%, 5/1/18		5,000		4,695

Plains Exploration & Production Co.,

7.00%, 3/15/17		11,200		10,472

Quicksilver Resources, Inc.,

7.13%, 4/1/16		14,395		14,179

Swift Energy Co.,

7.13%, 6/1/17		12,475		11,820

Whiting Petroleum Corp.,

7.00%, 2/1/14		9,575		9,192



				101,652



Oil & Gas Services - 0.5%

Dresser-Rand Group, Inc.,

7.38%, 11/1/14		9,927		9,902



Packaging & Containers - 2.6%

Ball Corp.,

6.63%, 3/15/18		12,000		11,790

Crown Americas LLC/Crown Americas Capital Corp.,

7.63%, 11/15/13		9,400		9,647

Jefferson Smurfit Corp. U.S.,

7.50%, 6/1/13		11,628		11,250

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 FIXED INCOME FUNDS

fixed income funds


SCHEDULE OF INVESTMENTS
HIGH YIELD FIXED INCOME FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 79.5% – CONTINUED

Packaging & Containers - 2.6% – (continued)

Packaging Dynamics Finance Corp., ^{(1) (2)}

10.00%, 5/1/16		$6,000		$6,030

Solo Cup Co.,

8.50%, 2/15/14		11,325		10,022



				48,739



Pipelines - 0.7%

Williams Cos., Inc.,

8.13%, 3/15/12		12,405		13,366



Real Estate - 0.3%

Icahn Enterprises LP, ⁽¹⁾

7.25%, 2/15/13		1,450		1,381

Realogy Corp., ⁽¹⁾

10.50%, 4/15/14		4,000		3,410

12.38%, 4/15/15		1,000		755



				5,546



Real Estate Investment Trusts - 1.3%

American Real Estate Partners LP/American Real Estate Finance Corp.,

7.13%, 2/15/13		15,685		14,940

Omega Healthcare Investors, Inc.,

7.00%, 4/1/14		9,565		9,541



				24,481



Retail - 2.9%

Dave & Buster’s, Inc.,

11.25%, 3/15/14		8,725		8,812

Neiman-Marcus Group, Inc.,

10.38%, 10/15/15		10,925		11,908

Petro Stopping Centers LP/Petro Financial Corp.,

9.00%, 2/15/12		10,355		10,847

Restaurant (The) Co.,

10.00%, 10/1/13		6,000		5,325

Rite Aid Corp.,

9.38%, 12/15/15 ⁽¹⁾		8,700		8,091

7.50%, 3/1/17		10,000		9,413



				54,396



Semiconductors - 0.9%

Freescale Semiconductor, Inc.,

8.88%, 12/15/14		17,000		16,405


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 79.5% – CONTINUED

Software - 0.4%

Open Solutions, Inc., ⁽¹⁾ ⁽²⁾

9.75%, 2/1/15		$6,850		$6,593



Supermarkets - 0.6%

SUPERVALU, Inc.,

7.50%, 11/15/14		11,125		11,320



Telecommunications - 6.8%

Centennial Cellular Operating Co.,

10.13%, 6/15/13		3,630		3,848

Centennial Communications Corp.,

10.00%, 1/1/13		9,025		9,544

Cincinnati Bell, Inc.,

8.38%, 1/15/14		8,825		8,803

Citizens Communications Co.,

9.00%, 8/15/31		17,495		17,757

Hawaiian Telcom Communications, Inc.,

12.50%, 5/1/15		11,725		12,663

Intelsat Corp.,

9.00%, 8/15/14		8,936		9,204

MasTec, Inc.,

7.63%, 2/1/17		10,025		9,749

PAETEC Holding Corp., ⁽¹⁾

9.50%, 7/15/15		8,650		8,650

Qwest Capital Funding, Inc.,

7.90%, 8/15/10		14,250		14,571

Qwest Corp., ⁽¹⁾

6.50%, 6/1/17		6,700		6,566

West Corp.,

11.00%, 10/15/16		8,645		9,077

Windstream Corp.,

8.25%, 8/1/16		9,275		9,890

7.00%, 3/15/19		5,600		5,460



				125,782



Textiles - 0.7%

Invista, ⁽¹⁾ ⁽²⁾

9.25%, 5/1/12		12,590		13,219



Transportation - 0.9%

Kansas City Southern Railway,

9.50%, 10/1/08		10,835		11,065

See Notes to the Financial Statements.

FIXED INCOME FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
CORPORATE BONDS - 79.5% – CONTINUED

Transportation - 0.9% – (continued)

Overseas Shipholding Group, Inc,

8.25%, 3/15/13		$5,655		$5,832



				16,897



Total Corporate Bonds



(Cost $1,482,735)				1,475,613

FOREIGN ISSUER BONDS - 11.3%

Chemicals - 0.7%

Basell AF SCA, ⁽¹⁾ ⁽²⁾

8.38%, 8/15/15		13,750		12,547



Electric - 0.7%

Intergen N.V., ⁽¹⁾ ⁽²⁾

9.00%, 6/30/17		13,000		13,650



Electronics - 0.7%

NXP BV / NXP Funding LLC,

7.88%, 10/15/14		10,275		9,890

9.50%, 10/15/15		3,325		3,117



				13,007



Forest Products & Paper - 1.1%

Abitibi-Consolidated, Inc.,

8.55%, 8/1/10		7,575		6,249

Bowater Canada Finance Corp.

7.95%, 11/15/11		17,850		14,682



				20,931



Gaming - 0.6%

Galaxy Entertainment Finance Co. Ltd., ⁽¹⁾ ⁽²⁾

9.88%, 12/15/12		10,116		10,419



Insurance - 0.5%

Catlin Insurance Co. Ltd., ⁽¹⁾

7.25%, 12/31/49		10,000		9,432



Leisure Time - 0.5%

NCL Corp.,

10.63%, 7/15/14		8,370		8,433



Media - 0.6%

Kabel Deutschland GmbH,

10.63%, 7/1/14		10,740		11,492



Miscellaneous Manufacturing - 0.6%

Bombardier, Inc., ⁽¹⁾ ⁽²⁾

6.75%, 5/1/12		10,650		10,677


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
FOREIGN ISSUER BONDS - 11.3% – CONTINUED

Oil & Gas - 1.1%

Compton Petroleum Finance Corp.,

7.63%, 12/1/13		$9,550		$9,216

OPTI Canada, Inc., ⁽¹⁾

8.25%, 12/15/14		10,525		10,604



				19,820



Packaging & Containers - 0.8%

Vitro SAB de CV,

9.13%, 2/1/17		15,350		15,081



Semiconductors - 1.0%

Avago Technologies Finance

Pte/Avago Technologies U.S./Avago

Technologies Wireless,

10.13%, 12/1/13		10,075		10,831

MagnaChip Semiconductor

S.A./MagnaChip Semiconductor Finance Corp.,

8.00%, 12/15/14		10,600		7,314



				18,145



Telecommunications - 2.1%

Intelsat Bermuda Ltd.,

9.25%, 6/15/16		11,325		11,750

Intelsat Ltd.,

7.63%, 4/15/12		7,725		6,605

Intelsat Subsidiary Holding Co. Ltd.,

8.25%, 1/15/13		4,110		4,171

Nortel Networks Ltd., ⁽¹⁾

10.75%, 7/15/16		16,225		16,955



				39,481



Transportation - 0.3%

Kansas City Southern de Mexico S.A. de CV, ⁽¹⁾

7.63%, 12/1/13		6,650		6,517



Total Foreign Issuer Bonds



(Cost $213,728)				209,632

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 FIXED INCOME FUNDS

fixed income funds

SCHEDULE OF INVESTMENTS

SEPTEMBER 30, 2007 (UNAUDITED)

HIGH YIELD FIXED INCOME FUND (continued)


	NUMBER	VALUE
	OF WARRANTS	(000S)
WARRANTS - 0.0%
IPCS, Inc., Exp. 7/15/10, Strike $5.50 *	1,500		$ -

Leap Wireless International,
Exp. 4/15/10, Strike $96.80 ⁽¹⁾ *	2,500		-

Leap Wireless International,
Exp. 4/15/10, Strike $96.80 ⁽¹⁾ *	2,000		-


Total Warrants


(Cost $10)			-


	PRINCIPAL
	AMOUNT	VALUE
	(000S)	(000S)
SHORT-TERM INVESTMENT - 7.4%
ABN-AMRO Bank, Amsterdam,
Eurodollar Time Deposit,

5.50%, 10/1/07	$138,003		138,003


Total Short-Term Investment


(Cost $138,003)			138,003





Total Investments - 98.2%


(Cost $1,834,476)			1,823,248

Other Assets less Liabilities - 1.8%			33,199



NET ASSETS - 100.0%			$1,856,447

Non-Income Producing Security

Percentages shown are based on Net Assets.

(1)

Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available in accordance with procedures established by the Trustees of Northern Funds.


(2)		Restricted security that has been deemed illiquid. At September 30, 2007, the value of these restricted illiquid securities amounted to approximately $91,160,000 or 4.9% of net assets. Additional information on each restricted illiquid security is as follows:



	ACQUISITION

	AND		ACQUISITION

	ENFORECEABLE		COST

SECURITY	DATE		(000S)

Basell AF SCA,
8.38%, 8/15/15		12/1/05-8/21/07		$13,194

Bombardier, Inc.,
6.75%, 5/1/12		12/8/05-6/5/06		9,940

Buffalo Thunder Development Authority,
9.38%, 12/15/14		12/8/06-3/20/07		9,688

Chukchansi Economic Development
Authority,
8.00%, 11/15/13		12/5/05-4/18/07		9,196

Galaxy Entertainment Finance Co. Ltd.,
9.88%, 12/15/12		12/7/05-11/30/06		10,478

Intergen N.V.,
9.00%, 6/30/17		7/23/07		12,895

Invista,
9.25%, 5/1/12		4/23/04-4/18/07		13,284

Open Solutions, Inc.,
9.75%, 2/1/15		1/18/07-3/16/07		6,997

Packaging Dynamics Finance Corp.,
10.00%, 5/1/16		4/13/06-4/12/07		6,105

(3) When - Issued Security

At September 30, 2007, the credit quality distribution for the High Yield Fixed Income Fund as a percentage of investments including cash was:


QUALITY DISTRIBUTION *	%
BB		22.1	%

B		52.6

CCC		16.4

Not Rated		1.6

Cash and Equivalents		7.3



Total		100.0	%

Standard & Poor’s Rating Services

See Notes to the Financial Statements.

FIXED INCOME FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT

fixed income funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

SHORT – INTERMEDIATE U.S. GOVERNMENT FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
U.S. GOVERNMENT AGENCIES - 50.1%⁽¹⁾

Fannie Mae - 19.3%

5.08%, 5/14/10	$	1,500	$	1,513

4.38%, 9/13/10		10,000		9,982

5.63%, 5/19/11		6,000		6,114

5.75%, 2/13/17		4,000		4,028

Pool #555649,

7.50%, 10/1/32		189		198

Pool #869217,

5.46%, 2/1/36		3,048		3,061

Pool #893082,

5.84%, 9/1/36		1,193		1,203

Pool TBA, ⁽²⁾

5.50%, 10/15/33		8,725		8,545

6.00%, 10/15/33		6,812		6,821



				41,465


Federal Farm Credit Bank - 2.2%

4.50%, 10/17/12		4,700		4,675



Federal Home Loan Bank - 7.8%

5.00%, 10/16/09		6,510		6,541

5.20%, 9/10/10		10,100		10,154



				16,695



Freddie Mac - 16.9%

5.00%, 6/11/09		16,000		16,147

5.25%, 10/6/11		8,175		8,231

5.30%, 1/9/12		6,700		6,760

5.60%, 9/26/13		775		781

Pool #1J0365,

5.93%, 4/1/37		1,988		2,008

Pool #410092,

7.13%, 11/1/24		19		20

Series 2944, Class WD,

5.50%, 11/15/28		2,365		2,369



				36,316



Freddie Mac Gold - 0.8%

Pool #E91020,

5.50%, 8/1/17		1,769		1,769



Small Business Administration - 3.1%

Participation Certificates,

Series 2005-20L, Class 1,

5.39%, 12/1/25		1,427		1,436


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
U.S. GOVERNMENT AGENCIES - 50.1%⁽¹⁾ – CONTINUED

Small Business Administration - 3.1% - (continued)

Participation Certificates,

Series 2006-20B, Class 1,

5.35%, 2/1/26	$	1,305	$	1,315

Participation Certificates,

Series 2006-20D, Class 1,

5.64%, 4/1/26		1,962		1,995

Series 2005-P10B, Class 1,

4.94%, 8/10/15		1,861		1,835



				6,581



Total U.S. Government Agencies



(Cost $107,239)				107,501


U.S. GOVERNMENT OBLIGATIONS - 26.9%

U.S. Treasury Inflation Indexed Bond - 2.3%

3.00%, 7/15/12		4,076		4,915


U.S. Treasury Notes - 24.6%

4.00%, 8/31/09		20,206		20,220

4.13%, 8/31/12		32,637		32,504



				52,724


Total U.S. Government Obligations



(Cost $57,382)				57,639


SHORT-TERM INVESTMENT - 29.1%

FHLB Discount Note,

4.06%, 10/1/07		62,325		62,325



Total Short-Term Investment



(Cost $62,325)				62,325




Total Investments - 106.1%


(Cost $226,946)				227,465

Liabilities less Other Assets- (6.1)%				(13,105	)



NET ASSETS - 100.0%			$	214,360

(1)		The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.

(2)		When-Issued Security

Percentages shown are based on Net Assets.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 FIXED INCOME FUNDS

fixed income funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)
U.S. GOVERNMENT FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
U.S. GOVERNMENT AGENCIES - 65.4%⁽¹⁾

Fannie Mae - 27.9%

5.08%, 5/14/10		$1,500		$1,513

6.00%, 8/22/16		7,200		7,278

5.75%, 2/13/17		4,000		4,028

5.00%, 5/11/17		6,500		6,505

Pool #555649,

7.50%, 10/1/32		310		325

Pool #869217,

5.46%, 2/1/36		3,472		3,487

Pool #893082,

5.84%, 9/1/36		1,308		1,318

Pool TBA, ⁽²⁾

5.50%, 10/15/33		8,800		8,618

6.00%, 10/15/33		6,417		6,425



				39,497



Federal Farm Credit Bank - 6.2%

4.50%, 10/17/12		8,800		8,754



Federal Home Loan Bank - 6.0%

5.20%, 9/10/10		8,500		8,545



Freddie Mac - 18.0%

5.00%, 6/11/09		5,000		5,046

5.40%, 7/16/09		2,500		2,517

5.25%, 9/3/10		2,300		2,314

5.25%, 10/6/11		2,000		2,014

5.60%, 9/26/13		800		806

5.30%, 1/9/12		7,200		7,265

Pool #1J0365,

5.93%, 4/1/37		2,236		2,259

Pool #410092,

7.13%, 11/1/24		81		83

Series 2944, Class WD,

5.50%, 11/15/28		3,125		3,130



				25,434



Government National Mortgage Association - 0.0%

Pool #268360,

10.00%, 4/15/19		24		27

Pool #270288,

10.00%, 6/15/19		25		29



				56


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

U.S. GOVERNMENT AGENCIES - 65.4%⁽¹⁾ – CONTINUED


Small Business Administration - 7.3%

Participation Certificates,

Series 2005-20L, Class 1,

5.39%, 12/1/25		$1,752		$1,763

Participation Certificates,

Series 2006-20B, Class 1,

5.35%, 2/1/26		1,584		1,597

Participation Certificates,

Series 2006-20D, Class 1,

5.64%, 4/1/26		1,775		1,805

Participation Certificates,

Series 2006-20G, Class 1,

6.07%, 7/1/26		2,832		2,928

Series 2005-P10B, Class 1,

4.94%, 8/10/15		2,279		2,247



				10,340


Total U.S. Government Agencies


(Cost $92,331)				92,626


U.S. GOVERNMENT OBLIGATIONS - 28.7%

U.S. Treasury Inflation Indexed Notes - 18.4%

3.00%, 7/15/12		17,175		20,709

2.63%, 7/15/17		5,267		5,457



				26,166



U.S. Treasury Note - 10.3%

4.13%, 8/31/12		14,602		14,542


Total U.S. Government Obligations


(Cost $40,231)				40,708


SHORT-TERM INVESTMENT - 14.8%

FHLB Discount Note,

4.06%, 10/1/07		21,022		21,022


Total Short-Term Investment


(Cost $21,022)				21,022




Total Investments - 108.9%


(Cost $153,584)				154,356


Liabilities less Other Assets — (8.9)%				(12,599	)


NET ASSETS - 100.0%				$141,757

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 FIXED INCOME FUNDS

fixed income funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

U.S. GOVERNMENT FUND (continued)

(1)		The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury.

(2)		When-Issued Security

Percentages shown are based on Net Assets.

At September 30, 2007, the credit quality distribution for the U.S. Government Fund as a percentage of investments including cash was:


QUALITY DISTRIBUTION *	%

AAA	100.0	%





Total	100.0	%

Standard & Poor’s Rating Services

See Notes to the Financial Statements.

FIXED INCOME FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of September 30, 2007 the Trust includes 37 portfolios, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Bond Index, Fixed Income, Global Fixed Income, High Yield Fixed Income, Short-Intermediate U.S. Government and U.S. Government Funds (collectively, the “Funds”) are separate investment portfolios of the Trust, all of which are diversified portfolios except for the Global Fixed Income Fund, which is a non-diversified portfolio of the Trust. Non-diversified portfolios may invest a relatively high percentage of their net assets in obligations of a limited number of issuers. Each of the Funds is presented herein.

Northern Trust Investments, N.A. (“NTI”) and Northern Trust Global Investments Limited (“NTGIL”), each a direct subsidiary of The Northern Trust Company (“Northern Trust”), serve jointly as the investment advisers of the Global Fixed Income Fund. NTI serves as the investment adviser for each of the other Funds. Northern Trust also serves as the custodian, fund accountant and transfer agent for the Trust. NTI and PFPC Inc. (“PFPC”) serve as the Trust’s co-administrators, and Northern Fund Distributors, LLC is the Trust’s distributor.

A) VALUATION OF SECURITIES – Securities are valued at their fair value. Securities traded on U.S. securities exchanges or in the Nasdaq Stock Market, Inc. are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the Nasdaq Stock Market, Inc. are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair market value of such securities. Such prices may be determined taking into account securities prices, yields, maturities, call features, ratings, institutional size trading in similar groups of securities and developments related to specific securities.

other unaffiliated investment companies and investors to price the same investments.

B) FOREIGN CURRENCY TRANSLATIONS – Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the New York exchange normally at approximately 3:00 P.M. Central time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. The gains or losses, if any, on investments resulting from changes in foreign exchange rates are included in the Statements of Operations with net realized and unrealized gains (losses) on investments. The realized gains or losses, if any, on translations of other assets and liabilities denominated in foreign currencies are included in foreign currency transactions on the Statements of Operations.

C) MORTGAGE DOLLAR ROLLS – The Funds may enter into mortgage “dollar rolls” in which a Fund sells securities for delivery in the future (generally within 30 days) and simultaneously contracts with the same counterparty to repurchase other mortgage securities on a specified future date. During the roll period, a Fund loses the right to receive principal and interest paid on the securities sold. However, a Fund would benefit to the extent of any difference between the price received for the securities sold and the lower forward price for the future purchase.

For financial reporting and tax purposes, the Funds treat mortgage dollar rolls as two separate transactions; one involving the purchase of a security and a separate transaction involving a sale.

D) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS – Certain Funds are authorized to enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge against either specific transactions or portfolio positions, or as a cross-hedge transaction or for speculative purposes. The objective of a Fund’s foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of a Fund’s foreign currency denominated securities will decline in value due to changes in foreign currency exchange rates. All forward foreign currency exchange contracts are “marked-to-market” daily at the applicable exchange rates and any resulting unrealized gains or losses are recorded in the financial statements. The Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction or is extinguished by delivery of the currency.

E) WHEN-ISSUED/ DELAYED DELIVERY SECURITIES – Certain Funds may purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time the Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the security is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to the Fund until settlement takes place. At the time the Fund enters into this type of transaction, it is required to segregate cash or other liquid assets at least equal to the amount of the commitment. When-issued securities at September 30, 2007, if any, are noted in each of the Funds’ Schedules of Investments and Statements of Assets and Liabilities.

F) INVESTMENT TRANSACTIONS AND INCOME – Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. Cost of investments includes amortization of premiums and accretion of discounts.

G) EXPENSES – Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among the Funds in proportion to each Fund’s relative net assets.

H) REDEMPTION FEES – The High Yield Fixed Income Fund charges a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Fund uses a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Fund, and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Fund. The redemption fee may be collected by deduction from the redemption proceeds or, if assessed after the

redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Fund’s prospectus.

Redemption fees for the six months ended September 30, 2007, were approximately $12,000 for the High Yield Fixed Income Fund. This amount is included in “Proceeds from Shares Sold” in Note 6 – Capital Share Transactions. The impact from redemption fees paid to the Fund was less than $0.001 per share.

I) DISTRIBUTIONS TO SHAREHOLDERS – Distributions of dividends from net investment income are declared and paid as follows:

J) FEDERAL INCOME TAXES – No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

For the period subsequent to October 31, 2006, through the fiscal year ended March 31, 2007, the following Funds incurred net capital losses and/or net currency losses for which each Fund intends to treat as having been incurred in the next fiscal year:

At March 31, 2007, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:

The Funds in the above table may offset future capital gains with these capital loss carryforwards.

At March 31, 2007, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains (losses) were as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

The tax character of distributions paid during the fiscal year ended March 31, 2007, was as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

The tax character of distributions paid during the fiscal year ended March 31, 2006, was as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

In July 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes”. This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. FIN 48 is effective as of the beginning of the first fiscal year beginning after December 15, 2006, with early application permitted if no interim financial statements have been issued. At adoption, companies must adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained as of the adoption date. As of September 30, 2007, management has evaluated the application of FIN 48 to the Funds, and has determined that there is no material impact resulting from the adoption of this Interpretation on the Funds’ financial statements.

Interest expense for the six months ended September 30, 2007, was less than $1,000 for the Global Fixed Income Fund. When utilized, the average dollar amount of the Fund’s borrowings was $200,000 and the weighted average interest rate on these borrowings was 5.82 percent.

The reimbursements described above are voluntary and may be modified or terminated at any time.

monthly, at the annual rate of 0.15 percent of each Fund’s average daily net assets.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds, although the Trust’s secretary also serves as legal counsel to the Trust and the independent Trustees and receives legal fees from the funds for those services. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are included in “Trustee fees” on the Statements of Assets and Liabilities. The Trustee’s account shall be deemed to be invested in a money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the Investment Company Act of 1940, as amended. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

For the six months ended September 30, 2007, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

Transactions in capital shares for the six months ended September 30, 2007, were as follows:

Transactions in capital shares for the fiscal year ended March 31, 2007, were as follows:

Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds’ financial statements and financial disclosures, if any.

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, including redemption fees on certain exchanges and redemptions in the High Yield Fixed Income Fund; and (2) ongoing costs, including advisory fees; distribution (12b-1) fees, if any; and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2007, through September 30, 2007.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 52), if any, in the High Yield Fixed Income Fund. If these fees were included, your costs would have been higher. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Expenses are calculated using the Funds’ annualized expense ratios, which represents ongoing expenses as a percentage of net assets for the six months ended September 30, 2007. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).


**	Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5% per year before expenses.

With respect to the Schedules of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets.

Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discounted notes, for floating rate securities, the current reset rate or, for interest-only or principal-only securities, the current effective yield.

Maturity dates represent the stated date on the security or the next interest reset/puttable date for floating and variable rate securities.


	Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 is available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.

tax - exempt fixed income funds


STATEMENTS OF ASSETS AND LIABILITIES


			CALIFORNIA
	ARIZONA		INTERMEDIATE
Amounts in thousands, except per share data	TAX-EXEMPT FUND		TAX-EXEMPT FUND



ASSETS:

Investments, at cost		$58,861		$128,555

Investments, at value		$60,399		$130,437

Cash		9		4,679

Interest income receivable		744		1,422

Dividend income receivable		1		-

Receivable for securities sold		-		-

Receivable for fund shares sold		256		-

Receivable from investment adviser		2		3

Prepaid and other assets		5		6

Total Assets		61,416		136,547



LIABILITIES:

Payable for securities purchased		-		5,137

Payable for when-issued securities		-		2,623

Payable for fund shares redeemed		-		66

Distributions to shareholders		39		77

Payable to affiliates:

Investment advisory fees		6		12

Co-administration fees		1		3

Custody and accounting fees		1		-

Transfer agent fees		1		2

Trustee fees		1		2

Accrued other liabilities		14		14

Total Liabilities		63		7,936


Net Assets		$61,353		$128,611



ANALYSIS OF NET ASSETS:

Capital stock		$59,661		$127,049

Accumulated undistributed net investment income (loss)		-		-

Accumulated undistributed net realized gain (loss)		154		(320	)

Net unrealized appreciation (depreciation)		1,538		1,882

Net Assets		$61,353		$128,611



Shares Outstanding ($.0001 par value, unlimited authorization)		6,009		12,740

Net Asset Value, Redemption and Offering Price Per Share:		$10.21		$10.09

See Notes to the Financial Statements.

tax-exempt income funds 2 northern funds semiannual report



		SEPTEMBER 30, 2007 (UNAUDITED)


								SHORT-
CALIFORNIA		HIGH YIELD			INTERMEDIATE			INTERMEDIATE
TAX-EXEMPT		MUNICIPAL			TAX-EXEMPT			TAX-EXEMPT		TAX-EXEMPT
FUND		FUND			FUND			FUND		FUND



	$130,813		$353,023			$658,455			$79,518		$644,793

	$134,549		$350,957			$665,991			$79,777		$662,454

	853		-			10,799			2,286		5,742

	1,620		5,373			8,217			716		8,111

	-		40			37			1		33

	-		-			16,681			-		19,296

	202		357			940			797		1,220

	3		5			10			3		11

	5		5			10			16		11

	137,232		356,737			702,685			83,596		696,878


	3,825		313			15,674			-		10,683

	3,684		2,784			17,612			5,857		21,639

	96		220			947			4		684

	83		258			395			42		415

	13		38			60			6		60

	3		9			17			2		16

	-		-			-			1		-

	2		6			11			1		11

	1		1			4			1		3

	18		35			33			5		45

	7,725		3,664			34,753			5,919		33,556


	$129,507		$353,073			$667,932			$77,677		$663,322


	$125,131		$359,320			$663,332			$77,418		$647,817

	-		-			77			-		(67	)

	640		(4,181	)		(3,013	)		-		(2,089	)

	3,736		(2,066	)		7,536			259		17,661

	$129,507		$353,073			$667,932			$77,677		$663,322


	11,972		37,120			65,974			7,733		63,994

	$10.82		$9.51			$10.12			$10.04		$10.37

See Notes to the Financial Statements.

northern funds semiannual report 3 tax - exempt fixed in come funds

tax - exempt fixed income funds


STATEMENTS OF OPERATIONS



				CALIFORNIA
	ARIZONA			INTERMEDIATE
	TAX-EXEMPT			TAX-EXEMPT
Amounts in thousands	FUND			FUND



INVESTMENT INCOME:

Interest income		$1,312			$2,684

Dividend income		25			-

Total Investment Income		1,337			2,684


EXPENSES:

Investment advisory fees		157			334

Co-administration fees		43			91

Custody fees		12			12

Accounting fees		13			15

Transfer agent fees		28			61

Registration fees		6			4

Printing fees		11			11

Professional fees		7			7

Trustee fees and expenses		3			3

Shareholder servicing fees		-			-

Other		4			4

Total Expenses		284			542

Less expenses reimbursed by investment adviser		(69	)		(85	)

Less custodian credits		(1	)		(2	)

Net Expenses		214			455



Net Investment Income		1,123			2,229



NET REALIZED AND UNREALIZED GAINS (LOSSES):

Net realized losses on investments		(142	)		(375	)

Net change in unrealized appreciation (depreciation) on investments		(185	)		(632	)

Net Gains (Losses) on Investments		(327	)		(1,007	)



Net Increase (Decrease) in Net Assets Resulting from Operations		$796			$1,222

(1) Commenced investment operations on August 23, 2007.

See Notes to the Financial Statements.

tax - exempt fixed income funds 4 northern funds semiannual report




		SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)


									SHORT-
CALIFORNIA			HIGH YIELD			INTERMEDIATE			INTERMEDIATE
TAX-EXEMPT			MUNICIPAL			TAX-EXEMPT			TAX-EXEMPT			TAX-EXEMPT
FUND			FUND			FUND			FUND ⁽¹⁾			FUND



	$2,911			$8,649			$14,131			$270			$14,269

	-			192			322			1			266

	2,911			8,841			14,453			271			14,535



	335			1,102			1,807			33			1,713

	92			254			493			10			467

	12			24			42			3			40

	15			25			41			3			38

	61			170			328			7			311

	4			10			11			4			11
	11			10			23			3			23

	7			7			13			2			13

	3			3			6			1			6

	3			24			5			-			14

	4			4			8			-			8


	547			1,633			2,777			66			2,644

	(89	)		(189	)		(307	)		(19	)		(304	)

	(1	)		(3	)		(6	)		-			(5	)

	457			1,441			2,464			47			2,335


	2,454			7,400			11,989			224			12,200



	(75	)		(1,801	)		(4,527	)		-			(4,037	)

	(883	)		(11,612	)		1,791			259			(483	)


	(958	)		(13,413	)		(2,736	)		259			(4,520	)



	$1,496			$(6,013	)		$9,253			$483			$7,680

See Notes to the Financial Statements.

northern funds semiannual report 5 tax - exempt fixed in come funds

tax - exempt fixed income funds


STATEMENTS OF CHANGES IN NET ASSETS



							CALIFORNIA
	ARIZONA						INTERMEDIATE
	TAX-EXEMPT						TAX-EXEMPT
	FUND						FUND

	SEPT. 30,			MARCH 31,			SEPT. 30,			MARCH 31,
Amounts in thousands	2007			2007			2007			2007



OPERATIONS:

Net investment income		$1,123			$2,079			$2,229			$3,184

Net realized gains (losses)		(142	)		505			(375	)		112

Net change in unrealized appreciation (depreciation)		(185	)		(305	)		(632	)		113

Net Increase (Decrease) in Net Assets Resulting from Operations		796			2,279			1,222			3,409



CAPITAL SHARE TRANSACTIONS:

Net increase in net assets resulting from capital share transactions		8,444			1,072			16,933			38,099

Net Increase in Net Assets Resulting from Capital Share Transactions		8,444			1,072			16,933			38,099



DISTRIBUTIONS PAID:

From net investment income		(1,123	)		(2,079	)		(2,229	)		(3,184	)

From net realized gains		-			(269	)		-			(73	)

Total Distributions Paid		(1,123	)		(2,348	)		(2,229	)		(3,257	)




Total Increase in Net Assets		8,117			1,003			15,926			38,251

NET ASSETS:

Beginning of period		53,236			52,233			112,685			74,434

End of period		$61,353			$53,236			$128,611			$112,685



Accumulated Undistributed Net Investment Income (Loss)		$-			$-			$-			$-

(1) Commenced investment operations on August 23, 2007.

See Notes to the Financial Statements.

tax - exempt fixed in come funds 6 northern funds semiannual report



		SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED) OR FISCAL YEAR ENDED MARCH 31, 2007



																		SHORT-
CALIFORNIA						HIGH YIELD						INTERMEDIATE						INTERMEDIATE
TAX-EXEMPT						MUNICIPAL						TAX-EXEMPT						TAX-EXEMPT			TAX-EXEMPT
FUND						FUND						FUND						FUND			FUND

SEPT. 30,			MARCH 31,			SEPT. 30,			MARCH 31,			SEPT. 30,			MARCH 31,			SEPT. 30,			SEPT. 30,			MARCH 31 ,
2007			2007			2007			2007			2007			2007			2007⁽¹⁾			2007			2007



	$2,454			$4,101			$7,400			$11,669			$11,989			$20,681			$224			$12,200			$20,645

	(75	)		949			(1,801	)		(170	)		(4,527	)		5,907			-			(4,037	)		6,355

	(883	)		(742	)		(11,612	)		5,349			1,791			(2,380	)		259			(483	)		(2,550	)

	1,496			4,308			(6,013	)		16,848			9,253			24,208			483			7,680			24,450



	18,983			19,918			44,695			82,320			30,714			81,224			77,418			87,255			104,805

	18,983			19,918			44,695			82,320			30,714			81,224			77,418			87,255			104,805



	(2,454	)		(4,101	)		(7,400	)		(11,669	)		(11,989	)		(20,681	)		(224	)		(12,200	)		(20,645	)

	-			(404	)		-			-			-			(5,289	)		-			-			(5,318	)

	(2,454	)		(4,505	)		(7,400	)		(11,669	)		(11,989	)		(25,970	)		(224	)		(12,200	)		(25,963	)



	18,025			19,721			31,282			87,499			27,978			79,462			77,677			82,735			103,292


	111,482			91,761			321,791			234,292			639,954			560,492			-			580,587			477,295
	$129,507			111,482			$353,073			321,791			$667,932			639,954			$77,677			$663,322			$580,587



	$-			$-			$-			$-			$77			$77			$-			$(67	)		$(67	)

See Notes to the Financial Statements.

northern funds semiannual report 7 tax - exempt fixed in come funds

tax - exempt fixed income funds


FINANCIAL HIGHLIGHTS



	ARIZONA TAX-EXEMPT FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$10.28			$10.29			$10.51			$10.86			$10.88			$10.46

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.20			0.41			0.41			0.41			0.44			0.42
Net realized and unrealized gains (losses)		(0.07	)		0.04			(0.13	)		(0.26	)		0.02			0.60

Total from Investment Operations		0.13			0.45			0.28			0.15			0.46			1.02



LESS DISTRIBUTIONS PAID:

From net investment income		(0.20	)		(0.41	)		(0.41	)		(0.41	)		(0.44	)		(0.42	)

From net realized gains		-			(0.05	)		(0.09	)		(0.09	)		(0.04	)		(0.18	)

Total Distributions Paid		(0.20	)		(0.46	)		(0.50	)		(0.50	)		(0.48	)		(0.60	)


Net Asset Value, End of Period		$10.21			$10.28			$10.29			$10.51			$10.86			$10.88


Total Return ⁽¹⁾		1.30	%		4.50	%		2.70	%		1.44	%		4.28	%		9.87	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$61,353			$53,236			$52,233			$65,037			$77,803			$82,177

Ratio to average net assets of: ⁽²⁾

Expenses, net of waivers, reimbursements and credits		0.75	%		0.75	%		0.85	%		0.85	%		0.85	%		0.85	%

Expenses, before waivers, reimbursements and credits		0.99	%		1.01	%		1.11	%		1.11	%		1.12	%		1.12	%

Net investment income, net of waivers, reimbursements and credits		3.93	%		4.00	%		3.88	%		3.87	%		4.04	%		3.85	%

Net investment income, before waivers, reimbursements and credits		3.69	%		3.74	%		3.62	%		3.61	%		3.77	%		3.58	%

Portfolio Turnover Rate		99.64	%		67.02	%		28.99	%		36.84	%		61.67	%		115.89	%

(1) Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2) Annualized for periods less than one year.

See Notes to the Financial Statements.

tax - exempt fixed income funds 8 northern funds semiannual report



	CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$10.19			$10.15			$10.29			$10.61			$10.62			$10.26

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.18			0.38			0.39			0.38			0.36			0.37
Net realized and unrealized gains (losses)		(0.10	)		0.05			(0.11	)		(0.26	)		0.07			0.54

Total from Investment Operations		0.08			0.43			0.28			0.12			0.43			0.91



LESS DISTRIBUTIONS PAID:

From net investment income		(0.18	)		(0.38	)		(0.39	)		(0.38	)		(0.36	)		(0.37	)

From net realized gains		-			(0.01	)		(0.03	)		(0.06	)		(0.08	)		(0.18	)

Total Distributions Paid		(0.18	)		(0.39	)		(0.42	)		(0.44	)		(0.44	)		(0.55	)


Net Asset Value, End of Period		$10.09			$10.19			$10.15			$10.29			$10.61			$10.62



Total Return ⁽¹⁾		0.86	%		4.29	%		2.70	%		1.09	%		4.13	%		9.06	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$128,611			$112,685			$74,434			$70,277			$74,824			$82,430

Ratio to average net assets of: ⁽²⁾

Expenses, net of waivers, reimbursements and credits		0.75	%		0.75	%		0.85	%		0.85	%		0.85	%		0.85	%

Expenses, before waivers, reimbursements and credits		0.89	%		0.93	%		1.08	%		1.10	%		1.11	%		1.10	%

Net investment income, net of waivers, reimbursements and credits		3.67	%		3.72	%		3.76	%		3.62	%		3.42	%		3.50	%

Net investment income, before waivers, reimbursements and credits		3.53	%		3.54	%		3.53	%		3.37	%		3.16	%		3.25	%

Portfolio Turnover Rate		40.58	%		41.71	%		31.34	%		86.88	%		108.29	%		136.67	%

(2) Annualized for periods less than one year.

See Notes to the Financial Statements.

northern funds semiannual report 9 tax - exempt fixed income funds

tax - exempt fixed income funds


FINANCIAL HIGHLIGHTS (continued)


							CALIFORNIA TAX-EXEMPT FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$10.92			$10.93			$11.01			$11.30			$11.32			$10.79

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.22			0.46			0.45			0.46			0.45			0.44

Net realized and unrealized gains (losses)		(0.10	)		0.03			(0.03	)		(0.18	)		0.13			0.71

Total from Investment Operations		0.12			0.49			0.42			0.28			0.58			1.15



LESS DISTRIBUTIONS PAID:

From net investment income		(0.22	)		(0.46	)		(0.45	)		(0.46	)		(0.45	)		(0.44	)

From net realized gains		-			(0.04	)		(0.05	)		(0.11	)		(0.15	)		(0.18	)

Total Distributions Paid		(0.22	)		(0.50	)		(0.50	)		(0.57	)		(0.60	)		(0.62	)

Net Asset Value, End of Period		$10.82			$10.92			$10.93			$11.01			$11.30			$11.32



Total Return ⁽¹⁾		1.10	%		4.54	%		3.93	%		2.56	%		5.24	%		10.88	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$129,507			$111,482			$91,761			$95,360			$113,845			$125,574

Ratio to average net assets of: ⁽²⁾

Expenses, net of waivers, reimbursements and credits		0.75	%		0.75	%		0.85	%		0.85	%		0.85	%		0.85	%

Expenses, before waivers, reimbursements and credits		0.90	%		0.92	%		1.05	%		1.08	%		1.08	%		1.08	%

Net investment income, net of waivers, reimbursements and credits		4.02	%		4.14	%		4.09	%		4.11	%		3.95	%		3.97	%

Net investment income, before waivers, reimbursements and credits		3.87	%		3.97	%		3.89	%		3.88	%		3.72	%		3.74	%

Portfolio Turnover Rate		28.78	%		48.72	%		21.04	%		70.99	%		144.30	%		166.17	%

(2) Annualized for periods less than one year.

See Notes to the Financial Statements.

tax - exempt fixed in come funds 10 northern funds semiannual report


	HIGH YIELD MUNICIPAL FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$9.89			$9.69			$9.63			$9.61			$9.36			$9.16


INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.21			0.42			0.42			0.42			0.44			0.46

Net realized and unrealized gains (losses)		(0.38	)		0.20			0.06			0.02			0.25			0.20

Total from Investment Operations		(0.17	)		0.62			0.48			0.44			0.69			0.66



LESS DISTRIBUTIONS PAID:

From net investment income		(0.21	)		(0.42	)		(0.42	)		(0.42	)		(0.44	)		(0.46	)

Total Distributions Paid		(0.21	)		(0.42	)		(0.42	)		(0.42	)		(0.44	)		(0.46	)


Net Asset Value, End of Period		$9.51			$9.89			$9.69			$9.63			$9.61			$9.36



Total Return ⁽¹⁾		(1.71	)%		6.53	%		5.00	%		4.75	%		7.53	%		7.36	%


SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$353,073			$321,791			$234,292			$124,859			$89,919			$52,245
Ratio to average net assets of: ⁽²⁾

Expenses, net of waivers, reimbursements and credits		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%		0.85	% ⁽³⁾

Expenses, before waivers, reimbursements and credits		0.96	%		0.98	%		1.05	%		1.07	%		1.12	%		1.20	%

Net investment income, net of waivers, reimbursements and credits		4.36	%		4.29	%		4.27	%		4.43	%		4.63	%		4.95	%

Net investment income, before waivers, reimbursements and credits		4.25	%		4.16	%		4.07	%		4.21	%		4.36	%		4.60	%

Portfolio Turnover Rate		13.32	%		13.20	%		12.95	%		19.34	%		16.56	%		29.13	%


(1)	Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)	Annualized for periods less than one year.
(3)	The net expense ratio includes custodian credits of approximately $23,000 or 0.05% of average net assets for the fiscal year ended March 31, 2003. Absent the custodian credit arrangement, expense reimbursement would have been increased by a corresponding amount.

See Notes to the Financial Statements.

northern funds semiannual report 11 tax - exempt fixed in come funds

tax - exempt fixed income funds


FINANCIAL HIGHLIGHTS (continued)


							INTERMEDIATE TAX-EXEMPT FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003


Net Asset Value, Beginning of Period		$10.16			$10.18			$10.30			$10.57			$10.64			$10.26

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.18			0.37			0.34			0.33			0.33			0.36

Net realized and unrealized gains (losses)		(0.04	)		0.07			(0.08	)		(0.18	)		0.14			0.61

Total from Investment Operations		0.14			0.44			0.26			0.15			0.47			0.97



LESS DISTRIBUTIONS PAID:

From net investment income		(0.18	)		(0.37	)		(0.34	)		(0.33	)		(0.33	)		(0.36	)

From net realized gains		-			(0.09	)		(0.04	)		(0.09	)		(0.21	)		(0.23	)

Total Distributions Paid		(0.18	)		(0.46	)		(0.38	)		(0.42	)		(0.54	)		(0.59	)


Net Asset Value, End of Period		$10.12			$10.16			$10.18			$10.30			$10.57			$10.64



Total Return ⁽¹⁾		1.44	%		4.36	%		2.56	%		1.48	%		4.50	%		9.61	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$667,932			$639,954			$560,492			$578,274			$631,627			$668,777

Ratio to average net assets of: ⁽²⁾

Expenses, net of waivers, reimbursements and credits		0.75	%		0.75	%		0.85	%		0.85	%		0.85	%		0.85	%

Expenses, before waivers, reimbursements and credits		0.85	%		0.85	%		0.99	%		1.01	%		1.04	%		1.04	%

Net investment income, net of waivers, reimbursements and credits		3.65	%		3.60	%		3.32	%		3.21	%		3.10	%		3.36	%

Net investment income, before waivers, reimbursements and credits		3.55	%		3.50	%		3.18	%		3.05	%		2.91	%		3.17	%

Portfolio Turnover Rate		165.70	%		281.30	%		192.60	%		194.77	%		274.17	%		278.90	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT


	SHORT
	INTERMEDIATE
	TAX-EXEMPT
	FUND

	PERIOD
	ENDED
	SEPT. 30,
	2007 ⁽³⁾
Selected per share data	(UNAUDITED)



Net Asset Value, Beginning of Period		$10.00

INCOME FROM INVESTMENT OPERATIONS:

Net investment income		0.03

Net realized and unrealized gain		0.04

Total from Investment Operations		0.07



LESS DISTRIBUTIONS PAID:

From net investment income		(0.03	)

Total Distributions Paid		(0.03	)


Net Asset Value, End of Period		$10.04



Total Return ⁽¹⁾		0.76	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$77,677

Ratio to average net assets of: ⁽²⁾

Expenses, net of reimbursements and credits		0.70	%

Expenses, before reimbursements and credits		0.99	%

Net investment income, net of reimbursements and credits		3.36	%

Net investment income, before reimbursements and credits		3.07	%

Portfolio Turnover Rate		0.00	%



(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.
(3)		Commenced investment operations on August 23, 2007.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 TAX - EXEMPT FIXED INCOME FUNDS

tax-exempt fixed income funds


FINANCIAL HIGHLIGHTS (continued)


							TAX-EXEMPT FUND
	SIX MONTHS
	ENDED			YEAR			YEAR			YEAR			YEAR			YEAR
	SEPT. 30,			ENDED			ENDED			ENDED			ENDED			ENDED
	2007			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,			MARCH 31,
Selected per share data	(UNAUDITED)			2007			2006			2005			2004			2003



Net Asset Value, Beginning of Period		$10.45			$10.47			$10.59			$10.98			$10.91			$10.49

INCOME (LOSS) FROM INVESTMENT OPERATIONS:

Net investment income		0.20			0.42			0.43			0.44			0.44			0.46

Net realized and unrealized gains (losses)		(0.08	)		0.08			(0.06	)		(0.21	)		0.17			0.59

Total from Investment Operations		0.12			0.50			0.37			0.23			0.61			1.05



LESS DISTRIBUTIONS PAID:

From net investment income		(0.20	)		(0.42	)		(0.43	)		(0.44	)		(0.44	)		(0.46	)



From net realized gains		-			(0.10	)		(0.06	)		(0.18	)		(0.10	)		(0.17	)

Total Distributions Paid		(0.20	)		(0.52	)		(0.49	)		(0.62	)		(0.54	)		(0.63	)


Net Asset Value, End of Period		$10.37			$10.45			$10.47			$10.59			$10.98			$10.91



Total Return ⁽¹⁾		1.20	%		4.88	%		3.50	%		2.18	%		5.67	%		10.17	%

SUPPLEMENTAL DATA AND RATIOS:

Net assets, in thousands, end of period		$663,322			$580,587			$477,295			$468,179			$522,221			$549,211

Ratio to average net assets of: ⁽²⁾

Expenses, net of waivers, reimbursements and credits		0.75	%		0.75	%		0.85	%		0.85	%		0.85	%		0.85	%

Expenses, before waivers, reimbursements and credits		0.85	%		0.86	%		1.00	%		1.01	%		1.05	%		1.05	%

Net investment income, net of waivers, reimbursements and credits		3.92	%		3.97	%		4.04	%		4.12	%		3.98	%		4.23	%

Net investment income, before waivers, reimbursements and credits		3.82	%		3.86	%		3.89	%		3.96	%		3.78	%		4.03	%

Portfolio Turnover Rate		161.57	%		260.99	%		163.06	%		150.48	%		230.83	%		208.04	%



(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.
(2)		Annualized for periods less than one year.

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT

tax-exempt fixed income funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

ARIZONA TAX-EXEMPT FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 94.9%

Arizona - 86.1%

Arizona State Transportation Board
Highway Revenue Bonds,

5.00%, 7/1/20		$35		$37

Arizona State Transportation Board
Highway Revenue Bonds,
Prerefunded,

5.75%, 7/1/09		2,040		2,118


Arizona State University COP,
Research Infrastructure Project
(AMBAC Insured),

5.00%, 9/1/30		2,000		2,055

Arizona State University Revenue
Bonds (FGIC Insured), Prerefunded,

5.50%, 7/1/12		2,160		2,340

Chandler Water & Sewerage Revenue
Bonds (MBIA Insured),

7.25%, 7/1/09		240		255

Downtown Phoenix Hotel Corp.
Revenue Bonds, Series B (FGIC Insured),

5.00%, 7/1/36		1,500		1,539

Glendale G.O. Unlimited Bonds,

2.00%, 7/1/18		2,600		2,082

5.00%, 7/1/21		1,250		1,332

Glendale IDA Revenue Bonds, Series A,
Midwestern University,

4.75%, 5/15/08		425		428

Goodyear G.O. Unlimited Bonds
(MBIA Insured),

5.00%, 7/1/16		1,300		1,413

Maricopa County Elementary School
District No. 8 Osborn G.O. Unlimited
Bonds, Series A, School
Improvement Project 2006 (FSA Insured),

4.50%, 7/1/20		700		715

Maricopa County School District No. 8
Osborn G.O. Unlimited Refunding
Bonds, Bank Qualified (FGIC Insured),

4.70%, 7/1/14		1,000		1,064

Maricopa County Unified School District
No. 80 Chandler Capital Appreciation
G.O. Unlimited Refunding Bonds
(FGIC Insured),

0.00%, 7/1/09		1,000		937


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 94.9% – CONTINUED

Arizona - 86.1% – (continued)

Maricopa County Unified School District
No. 89 Dysart G.O. Unlimited Bonds,
Series B, School Improvement
Project of 2002 (FSA Insured),

5.25%, 7/1/15		$1,600		$1,741

Mesa Utilities System Revenue Bonds
(FGIC Insured), Prerefunded,

5.00%, 7/1/09		30		31

Northern Arizona University COP,
Northern Arizona University
Research Projects (AMBAC Insured),

5.00%, 9/1/26		400		415

Phoenix Civic Improvement Corp. Excise
TRB, Series A, Senior Lien, Municipal
Courthouse Project, Prerefunded,

5.75%, 7/1/09		1,325		1,388

Phoenix Civic Improvement Corp. Excise
TRB, Sub Lien Series B
(MBIA Insured),

5.00%, 7/1/22		1,000		1,060

Phoenix Civic Improvement Corp. Excise
TRB, Subseries A (MBIA Insured),

5.00%, 7/1/18		1,030		1,112

4.75%, 7/1/24		1,250		1,285

Phoenix Civic Improvement Corp.
Municipal Facilities Subordinate
Excise TRB (FGIC Insured),
Prerefunded,

5.75%, 7/1/10		1,000		1,067

Phoenix Civic Improvement Corp.
Transit Excise TRB, Light Rail Project
(AMBAC Insured),

5.00%, 7/1/17		1,000		1,072

5.00%, 7/1/20		1,000		1,050

Phoenix Civic Improvement Corp.
Wastewater System Revenue Bonds,
Junior Lien (FGIC Insured),
Prerefunded,

6.25%, 7/1/10		1,000		1,080

Phoenix Civic Improvement Corp.
Wastewater System Revenue Bonds,
Junior Lien (MBIA Insured),

5.00%, 7/1/28		1,300		1,345

5.00%, 7/1/29		400		414

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 TAX - EXEMPT FIXED INCOME FUNDS

tax-exempt fixed income funds


SCHEDULE OF INVESTMENTS

ARIZONA TAX - EXEMPT FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 94.9% – CONTINUED

Arizona - 86.1% – (continued)

Phoenix Civic Improvement Corp. Water
System Revenue Bonds, Junior Lien
(FGIC Insured),

5.50%, 7/1/17		$3,500		$3,760

Phoenix G.O. Limited Refunding Bonds,
Series A,

4.50%, 7/1/15		1,500		1,519

Phoenix G.O. Limited Refunding Bonds,
Series B,

4.50%, 7/1/20		1,100		1,106

Phoenix G.O. Unlimited Bonds,

4.50%, 7/1/22		1,000		1,003

Phoenix G.O. Unlimited Bonds,
Series B, Various Purpose,

5.38%, 7/1/20		1,000		1,070

Pima County G.O. Unlimited Bonds
(FSA Insured),

4.00%, 7/1/14		750		757

Pima County Unified School District No. 6 Marana G.O. Unlimited Refunding Bonds (FGIC Insured),

5.40%, 7/1/14		1,300		1,370

Pima County Unified School District No. 12 Sunnyside G.O. Unlimited Bonds (FGIC Insured), Prerefunded,

5.75%, 7/1/09		2,000		2,077

Pinal County Unified School District No. 43 Apache Junction G.O. Unlimited Refunding Bonds (FSA Insured), ⁽¹⁾

5.00%, 7/1/22		1,000		1,083

Salt River Project Agricultural Improvement & Power District Electrical Systems Revenue Refunding Bonds, Series C,

4.90%, 1/1/08		470		471

Scottsdale Municipal Property Corp. Excise Tax Revenue Bonds, Prerefunded,

5.00%, 7/1/16		1,000		1,087

Scottsdale Preservation Authority

Excise TRB (FGIC Insured), Prerefunded,

6.00%, 7/1/08		370		381
Tempe Excise Refunding TRB,

4.50%, 7/1/21		1,220		1,240


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 94.9% – CONTINUED

Arizona - 86.1% – (continued)

Tucson G.O. Unlimited, Series A,

7.25%, 7/1/12		$550		$636

Tucson Water Revenue Bonds,

Series 2005-B (FSA Insured),

5.00%, 7/1/25		1,590		1,674

Yuma County Library District G.O. Unlimited Bonds (XLCA Insured),

5.00%, 7/1/23		1,000		1,057

5.00%, 7/1/24		1,090		1,149

5.00%, 7/1/28		1,945		2,037



				52,852



Puerto Rico - 8.8%

Puerto Rico Commonwealth Highway & Transportation Authority Revenue Refunding Bonds, Series CC (FSA Insured),

5.25%, 7/1/32		2,000		2,223

Puerto Rico Commonwealth Infrastructure Financing Authority Special Obligation Bonds, Series A, Escrowed to Maturity,

5.50%, 10/1/20		2,500		2,647

5.50%, 10/1/40		500		527


				5,397


Total Municipal Bonds


(Cost $56,711)				58,249


	NUMBER		VALUE
	OF SHARES		(000S)
INVESTMENT COMPANIES - 3.5%

AIM Tax-Free Cash Reserve Portfolio		2,147,492		2,147

Dreyfus Tax-Exempt Cash Management Fund		2,602		3



Total Investment Companies


(Cost $2,150)				2,150


Total Investments - 98.4%


(Cost $58,861)				60,399

Other Assets less Liabilities - 1.6%				954


NET ASSETS - 100.0%				$61,353

(1) When-Issued Security

Percentages shown are based on Net Assets.

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)

At September 30, 2007, the industry sectors for the Arizona Tax-Exempt
Fund were:


INDUSTRY SECTOR	% OF INVESTMENTS
Facilities		6.6	%

General		13.7

General Obligation		25.1

Higher Education		8.7

School District		14.9

Special Obligation		5.3

Transportation		7.2

Utilities		5.2

Water		9.0

All other sectors less than 5%		4.3



Total		100.0	%

At September 30, 2007, the credit quality distribution for the Arizona Tax-Exempt Fund as a percentage of investments including cash was:


QUALITY DISTRIBUTION *	%
AAA		80.5	%

AA		15.3

A		0.7

Cash and Equivalents		3.5


Total		100.0	%


*		Standard & Poor’s Rating Services

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 TAX - EXEMPT FIXED INCOME FUNDS

tax-exempt fixed income funds


SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX - EXEMPT FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 79.8%

California - 78.4%

Antelope Valley Community College
District G.O. Unlimited Bonds, Series B,
Election 2004 (MBIA Insured),

5.25%, 8/1/39		$1,000		$1,062

Arcade Water District Revenue COP
(FGIC Insured), Prerefunded,

5.00%, 11/1/07		1,000		1,021

Bay Area Governments Association
Infrastructure Financing Authority
Revenue Bonds, Payment Acceleration
Notes (FGIC Insured),

5.00%, 8/1/17		2,430		2,611

Beverly Hills PFA Lease Revenue Bonds,
Capital Improvement Project,

4.50%, 6/1/28		1,000		975

California Health Facilities Financing
Authority Revenue Bonds, Series A,
Sutter Health,

5.25%, 11/15/46		2,500		2,557

California Health Facilities Financing
Authority Revenue Refunding Bonds,
Cedars-Sinai Medical Center,

5.00%, 11/15/13		1,000		1,052

California Infrastructure & Economic
Development Bank Revenue Bonds,
Series A, Scripps Research Institute,

5.75%, 7/1/30		1,000		1,022

California State Department of Water
Resources Power Supply Revenue
Bonds, Series A (AMBAC Insured),

5.50%, 5/1/13		1,500		1,636

5.50%, 5/1/15		2,500		2,715

California State Department of Water
Resources Power Supply Revenue
Bonds, Series A, Prerefunded,

5.38%, 5/1/12		1,745		1,899

California State G.O. Unlimited Bonds,

5.00%, 2/1/20		710		735

5.25%, 2/1/25		1,500		1,577

California State G.O. Unlimited Bonds
(FGIC Insured),

4.75%, 2/1/19		85		87

California State G.O. Unlimited Bonds
(FGIC Insured), Prerefunded,

4.75%, 2/1/09		915		940


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 79.8% – CONTINUED

California - 78.4% – (continued)
California State G.O. Unlimited Refunding
Bonds,

5.00%, 6/1/15		$1,700		$1,831

5.00%, 12/1/16		3,000		3,246

5.00%, 9/1/20		2,055		2,167

5.00%, 3/1/21		1,500		1,563

5.00%, 8/1/22		920		956

California State Public Works Board
Lease Revenue Refunding Bonds,
Series A, Department of Corrections
State Prisons (AMBAC Insured),

5.25%, 12/1/13		1,350		1,439

California State Public Works Board
Lease Revenue Refunding Bonds,
Series H, Department of
Corrections & Rehabilitation,

5.00%, 6/1/19		2,000		2,103

California State Public Works Board
Lease Revenue Refunding Bonds,
Series A, Trustees California State
University,

5.25%, 10/1/14		3,545		3,630

California State Various Purpose
G.O. Unlimited Bonds,

5.25%, 11/1/16		1,450		1,567

5.00%, 12/1/21		2,000		2,101

5.25%, 11/1/24		1,000		1,055

4.75%, 3/1/34		1,000		991

California Statewide Communities
Development Authority Revenue COP,
John Muir/Mount Diablo Health System
(MBIA Insured),

5.50%, 8/15/12		4,030		4,224

California Statewide Communities
Development Authority Student
Housing Revenue Bonds, Series A, East
Campus Apartments LLC
(ACA Insured),

5.00%, 8/1/12		1,775		1,821

Carlsbad Unified School District
G.O. Unlimited Bonds, Election 2006,
Series A (MBIA Insured),

5.25%, 8/1/32		1,500		1,603

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 79.8% – CONTINUED

California - 78.4% – (continued)
Contra Costa County Home Mortgage
Revenue Bonds, GNMA Mortgage
Backed Securities Program
(Colld. by GNMA),
Escrowed to Maturity,

7.50%, 5/1/14		$1,000		$1,224

Duarte Redevelopment Agency SFM
Revenue Refunding Bonds, Series B,
Mortgage Backed Securities Program
(Colld. by FNMA), Escrowed to
Maturity,

6.88%, 10/1/11		950		1,068

East Bay Regional Park District G.O.
Unlimited Refunding Bonds,

5.00%, 9/1/17		250		253

Fremont-Newark Community College
District G.O. Unlimited Bonds, Series A
(MBIA Insured),

5.38%, 8/1/18		1,350		1,440

5.38%, 8/1/19		625		667

Glendale Unified School District G.O.
Unlimited Bonds, Series D
(MBIA Insured),

5.38%, 9/1/18		1,000		1,060

Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Bonds, Series A, Enhanced Asset
Backed (AMBAC Insured),

5.00%, 6/1/21		1,000		1,034

Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Bonds, Series B, Enhanced Asset
Backed, Escrowed to Maturity,

5.00%, 6/1/10		2,000		2,072

Imperial Irrigation District COP,
Electric Systems Project,

6.50%, 11/1/07		1,030		1,033

Long Beach Bond Finance Authority
Natural Gas Purpose Revenue Bonds,
Series A, ⁽¹⁾

5.25%, 11/15/20		2,500		2,618

Los Angeles Community College
District G.O. Unlimited Bonds,
Series E, 2003 Election (FSA Insured),

5.00%, 8/1/17		300		326


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 79.8% – CONTINUED

California - 78.4% – (continued)
Los Angeles County Metropolitan
Transportation Authority Sales Tax
Revenue Refunding Bonds, Proposition
C, 2nd Series, Series A (FSA Insured),

4.50%, 7/1/26		$1,000		$1,001

4.50%, 7/1/30		750		738

Los Angeles County Metropolitan
Transportation Authority Sales TRB,
Series B, Property A-First Tier
(FSA Insured),

4.75%, 7/1/15		1,250		1,284

Los Angeles County Metropolitan
Transportation Authority Sales TRB,
Series B, Property A-First Tier
(FSA Insured), Prerefunded,

4.75%, 7/1/09		850		877

Los Angeles Department of Water &
Power Waterworks Revenue Bonds,
Series C (MBIA Insured),

5.00%, 7/1/29		1,300		1,346

Los Angeles Unified School District G.O.
Unlimited Bonds, Election of 1997,
Series F (FGIC Insured), Prerefunded,

5.00%, 7/1/13		545		587

Lucia Mar Unified School District G.O.
Unlimited Refunding Bonds
(FGIC Insured),

5.25%, 8/1/22		1,300		1,445

Metropolitan Water District of Southern
California Waterworks Revenue Bonds,
Series A, Prerefunded,

5.50%, 7/1/09		1,350		1,410

Modesto Wastewater Revenue Refunding
Bonds, Series A (FSA Insured),

5.25%, 11/1/18		1,000		1,088

Newark Unified School District Capital
Appreciation G.O. Unlimited Bonds,
Series D, Election of 1997
(FSA Insured),

0.00%, 8/1/24		2,430		1,128

Orange County Water District COP,
Series B (MBIA Insured),

5.38%, 8/15/18		1,000		1,072

Palomar Community College
District G.O. Unlimited Bonds,
Series A, Election of 2006
(FSA Insured),

4.50%, 5/1/25		1,500		1,505

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 TAX - EXEMPT FIXED INCOME FUNDS

tax-exempt fixed income funds


SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX - EXEMPT FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 79.8% – CONTINUED

California - 78.4% – (continued)
Poway Unified School District Public
Financing Authority Special TRB
(AMBAC Insured),

5.00%, 9/15/31		$1,000		$1,034

Ross Elementary School District G.O.
Unlimited Bonds, Election 2006
(MBIA Insured),

5.25%, 8/1/27		455		483

Sacramento County COP, Animal
Healthcare/Youth Detention
(AMBAC Insured),

5.00%, 10/1/26		1,490		1,562

Sacramento County Sanitation District
Financing Authority Revenue Bonds,
Series A,

5.60%, 12/1/16		915		917

San Diego Unified School District G.O.
Unlimited Refunding Bonds,
Election 1998, Series C-2 (FSA Insured),

5.50%, 7/1/19		1,220		1,377

San Francisco Bay Area Transit Financing
Authority G.O. Unlimited Bonds,
Series B, Election of 2004,

4.75%, 8/1/37		1,000		1,007

San Francisco City & County Airport
Commission International Airport
Revenue Refunding Bonds, Second
Series Issue 20 (MBIA Insured),

4.75%, 5/1/15		500		508

San Francisco City & County Airports
Commission International Airport
Revenue Refunding Bonds, Second
Series - Issue 32F (FGIC Insured),

5.00%, 5/1/15		775		842

San Francisco City & County G.O.
Unlimited Bonds, Series A, Educational
Facilities Community College Project,
Prerefunded,

5.75%, 6/15/08		700		725

San Gabriel Unified School District G.O.
Unlimited Bonds, Series A
(FSA Insured),

5.38%, 8/1/18		180		193

San Joaquin County COP, County
Administration Building
(MBIA Insured),

4.75%, 11/15/33		1,000		998


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 79.8% – CONTINUED

California - 78.4% – (continued)
San Jose Airport Revenue Bonds,
Series A (FGIC Insured),

5.25%, 3/1/16		$1,000		$1,046

San Juan Unified School District G.O.
Unlimited Bonds, Election of 2002
(FGIC Insured),

5.00%, 8/1/25		925		966

San Marcos PFA Capital Appreciation
Custom Receipts Revenue Bonds,
Escrowed to Maturity,

0.00%, 7/1/11		1,000		871

San Mateo County Community College
District G.O. Unlimited Bonds,
Series A, Election of 2001
(FGIC Insured),

5.00%, 9/1/21		1,000		1,051

San Mateo County Transit District
Revenue Bonds, Series A
(MBIA Insured), Prerefunded,

5.00%, 6/1/10		575		587

Southern California Public Power
Authority Capital Appreciation
Subordinate Revenue Refunding
Bonds, Southtran Transmission
Project,

0.00%, 7/1/14		1,000		763

Southern California Public Power
Authority Power Project Revenue
Bonds,

6.75%, 7/1/12		2,100		2,372

University of California Revenue Bonds,
Series A, Limited Project
(MBIA Insured),

4.75%, 5/15/26		1,900		1,927

University of California Revenue Bonds,
Series B, Limited Project,

4.75%, 5/15/38		1,750		1,747

University of California Revenue Bonds,
Series C (MBIA Insured),

4.75%, 5/15/31		2,000		2,014

University of California Revenue Bonds,
Series F (FSA Insured),

4.75%, 5/15/24		1,080		1,101

Washington Township Healthcare District
Revenue Bonds,

5.00%, 7/1/09		250		255



				100,808

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT



		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 79.8% – CONTINUED

Puerto Rico - 0.9%
Puerto Rico Commonwealth Highway &
Transportation Authority
Revenue Refunding Bonds,
Series CC (FSA Insured),

5.25%, 7/1/32		$1,000		$1,111


Virgin Islands - 0.5%

Virgin Islands PFA Revenue Bonds, Series
A, Gross Receipts Tax Lien Note,

5.63%, 10/1/10		705		718



Total Municipal Bonds


(Cost $100,755)				102,637

SHORT-TERM INVESTMENTS - 21.6%
Bay Area Toll Authority Revenue VRDB,
Series C, San Francisco Bay Area
(AMBAC Insured),

3.70%, 10/4/07		2,300		2,300

California Health Facilities Financing
Authority Revenue VRDB, Series J,
Health Facilities-Catholic
(Bank of America N.A. LOC),

3.76%, 10/3/07		100		100

California Infrastructure & Economic
Development Bank Revenue VRDB,
Series B, J Paul Getty Trust,

3.83%, 10/1/07		300		300

California Pollution Control Financing
Authority PCR Refunding VRDB,
Series C, Pacific Gas & Electric
(JP Morgan Chase Bank LOC),

3.93%, 10/1/07		800		800

California State Department of Water
Resources Power Supply Revenue
VRDB, Series B-2 (BNP Paribas LOC),

3.97%, 10/1/07		100		100

California State Department of Water
Resources Power Supply
Revenue VRDB, Series C-5
(Dexia Credit Local LOC),

3.73%, 10/4/07		900		900

California State Department of Water
Resources Power Supply Revenue
VRDB, Series C-7 (FSA Insured),

3.73%, 10/4/07		4,050		4,050


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 21.6% – CONTINUED
California State Department of Water
Resources Power Supply
Revenue VRDB, Subseries F-4
(Bank Of America N.A. LOC),

3.80%, 10/1/07		$300		$300

California State Department of Water
Resources Power Supply
Revenue VRDB, Subseries G-1
(Bank of Nova Scotia LOC),

3.68%, 10/4/07		1,400		1,400

California State Department of Water
Resources Power Supply Revenue
VRDB, Subseries G-3 (FSA Insured),

3.73%, 10/4/07		100		100

California State VRDB G.O. Unlimited
VRDB, Series A, Subseries A-3
(Bank Of America N.A. LOC),

3.79%, 10/3/07		100		100

California State G.O. Unlimited VRDB,
Series B - Subseries B-6
(KBC Bank N.V. LOC),

3.90%, 10/1/07		200		200

California State G.O. Unlimited VRDB,
Kindergarten University Public,
Series A-8, (Citibank N.A. LOC),

3.73%, 10/4/07		600		600

California State G.O. Unlimited VRDB,
Kindergarten University Public,
Series A-9 (Citibank N.A. LOC),

3.76%, 10/4/07		500		500

California State G.O. Unlimited VRDB,
Series B4 (BNP Paribas LOC),

3.73%, 10/3/07		3,100		3,100

California Statewide Communities
Development Authority Revenue VRBD,
Series J,

3.80%, 10/3/07		3,200		3,200

California Statewide Communities
Development Authority Revenue VRDB,
Series L,

3.80%, 10/3/07		2,000		2,000

California Statewide Communities
Development Authority Revenue VRDB,
University of San Diego
(BNP Paribas LOC),

3.78%, 10/3/07		800		800

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

CALIFORNIA INTERMEDIATE TAX - EXEMPT FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 21.6% – CONTINUED
Los Angeles Convention & Exhibit Center
Authority Lease Revenue Refunding
VRDB, Series D (AMBAC Insured),

3.73%, 10/3/07		$200		$200

Los Angeles Department of Water &
Power Waterworks Revenue VRDB,
Subseries B-1,

3.78%, 10/4/07		3,450		3,450

Metropolitan Water District of
Southern California Waterworks
Revenue Ajustable VRDB, Series B,

3.73%, 10/4/07		200		200

Orange County Water District Adjustable
COP, Series A,

3.74%, 10/3/07		2,100		2,100

Oxnard Financing Authority Lease
Revenue VRDB, Civic Center Phase 2
Project (AMBAC Insured),

3.73%, 10/4/07		600		600

San Francisco City & County
Redevelopment Agency Multifamily
Revenue VRDB, Series A,
Housing - Bayside Village Project D
(Bank One Arizona N.A. LOC),

3.76%, 10/3/07		200		200

San Francisco City & County
Redevelopment Agency Multifamily
Revenue VRDB, Series B,
Housing - Bayside Village Project D
(Bank One Arizona N.A. LOC),

3.76%, 10/3/07		200		200


Total Short-Term Investments


(Cost $27,800)				27,800


Total Investments - 101.4%

(Cost $128,555)				130,437

Liabilities less Other Assets - (1.4)%				(1,826	)


NET ASSETS - 100.0%				$128,611

(1) When-Issued Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the California Intermediate Tax-Exempt Fund were:


INDUSTRY SECTOR	% OF INVESTMENTS
General		8.5	%
General Obligation		21.0
Higher Education		12.2
Medical		6.3
Power		13.2
School District		6.8
Transportation		6.8
Utilities		6.2
Water		7.1
All other sectors less than 5%		11.9


Total		100.0	%

At September 30, 2007, the credit quality distribution for the California
Intermediate Tax-Exempt Fund as a percentage of investments including cash was:



QUALITY DISTRIBUTION *	%
AAA		47.3	%
AA		9.9
A		22.8
BBB		0.6
Cash and Equivalents		19.4


Total		100.0	%

* Standard & Poor’s Rating Services

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

CALIFORNIA TAX - EXEMPT FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 95.8%

California - 88.7%

Alameda County Unified School
District Capital Appreciation G.O.
Unlimited Bonds, Series A
(FSA Insured),

0.00%, 8/1/29		$2,000		$711

Alameda County Water District Revenue
Refunding Bonds (MBIA Insured),

4.75%, 6/1/20		2,000		2,028

Anaheim PFA Revenue Bonds, Electric
System Distributing Facilities
(MBIA Insured), Prerefunded,

5.00%, 10/1/08		2,000		2,051

Anaheim PFA Tax Allocation Revenue
Bonds, Series A, Redevelopment
Project (MBIA Insured),

5.25%, 2/1/18		250		255

Anaheim Union High School District
Capital Appreciation G.O. Unlimited
Bonds, Election 2002 (MBIA Insured),

0.00%, 8/1/28		575		216

Antelope Valley Community College
District Capital Appreciation G.O.
Unlimited Bonds, Series C, Election
2004 (MBIA Insured),

0.00%, 08/01/29		6,000		1,885

Arcadia Unified School District Capital
Appreciation G.O. Unlimited Bonds,
Series A, Election 2006 (FSA Insured),

0.00%, 08/01/25		2,710		1,127

Aztec Shops Ltd. Auxiliary Organization
Student Housing Revenue Bonds,
San Diego State University,

6.00%, 9/1/31		2,000		2,055

Bay Area Governments Association
Infrastructure Financing Authority
Revenue Bonds, Payment Acceleration
Notes (FGIC Insured),

5.00%, 8/1/17		5,000		5,372

Beverly Hills PFA Lease Revenue Bonds,
Capital Improvement Project,

4.50%, 6/1/28		1,000		975

California Educational Facilities Authority
Capital Appreciation Revenue Bonds,
Loyola Marymount (MBIA Insured),
Prerefunded,

0.00%, 10/1/09		3,435		849

0.00%, 10/1/09		4,435		1,248


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 95.8% – CONTINUED

California - 88.7% - (continued)

California Educational Facilities
Authority Revenue Bonds,
University of the Pacific,

5.00%, 11/1/30		$1,500		$1,525

California Health Facilities Finance
Authority Revenue Bonds, Series A,
Cedars-Sinai Medical Center,
Prerefunded,

6.13%, 12/1/09		3,350		3,565

California Health Facilities Financing
Authority Revenue Bonds, Series A,
Sutter Health,

5.25%, 11/15/46		2,500		2,557

California Infrastructure & Economic
Development Bank Revenue Bonds,
Series A, Bay Area Toll Bridges - First
Lien (AMBAC Insured), Prerefunded,

5.13%, 7/1/26		1,000		1,100

California Infrastructure & Economic
Development Bank Revenue Bonds,
Series A, Scripps Research Institute,

5.75%, 7/1/30		250		255

California State Department of Water
Resources Power Supply Revenue
Bonds, Series A (AMBAC Insured),

5.50%, 5/1/15		2,500		2,715

California State G.O. Unlimited Bonds,

5.00%, 2/1/20		840		870

5.13%, 6/1/24		25		26

5.25%, 2/1/25		1,500		1,577

California State G.O. Unlimited Bonds,
Prerefunded,

5.13%, 6/1/11		1,975		2,088

California State G.O. Unlimited Refunding
Bonds,

5.00%, 6/1/15		1,500		1,616

5.00%, 12/1/16		2,000		2,164

4.38%, 10/1/17		1,390		1,399

4.00%, 12/1/18		2,650		2,615

5.00%, 9/1/20		650		685

5.00%, 3/1/21		1,000		1,042

5.00%, 8/1/22		500		520

California State G.O. Unlimited Refunding
Bonds (FGIC Insured),

4.75%, 2/1/29		1,000		1,003

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX - EXEMPT FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 95.8% – CONTINUED

California - 88.7% – (continued)
California State G.O. Unlimited Refunding
Bonds (MBIA Insured), ⁽¹⁾

4.25%, 8/1/33		$1,000		$923

California State Public Works Board
Lease Revenue Bonds, Series H,
Department of Corrections &
Rehabilitation,

5.00%, 6/1/19		500		526

California State Public Works Board
Lease Revenue Refunding Bonds,
Series B, Various Community College
Project (AMBAC Insured),

5.63%, 3/1/16		1,000		1,009

California State University Foundation
Revenue Bonds, Series A, Sacramento
Auxiliary (MBIA Insured), Prerefunded,

5.50%, 10/1/12		500		546

5.50%, 10/1/12		500		546

California State Various Purpose G.O.
Bonds,

4.75%, 3/1/34		1,000		991

California Statewide Communities
Development Authority Student
Housing Revenue Bonds, Series A, East
Campus Apartments LLC
(ACA Insured),

5.63%, 8/1/34		1,000		1,014

Dry Creek Joint Elementary School
District Capital Appreciation G.O.
Unlimited Bonds, Series A
(FSA Insured),

0.00%, 8/1/09		400		374

East Bay Municipal Utilities District Water
System Revenue Bonds
(MBIA Insured), Prerefunded,

5.00%, 6/1/11		1,000		1,053

East Bay Regional Park District G.O.
Unlimited Refunding Bonds,

5.00%, 9/1/17		2,250		2,279

Escondido Union School District G.O.
Unlimited Refunding Bonds, Series B
(FGIC Insured),

4.50%, 8/1/25		1,000		1,003

Folsom G.O. Unlimited Bonds, Series D,
School Facilities Project
(FGIC Insured),

5.70%, 8/1/13		200		204


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 95.8% – CONTINUED

California - 88.7% – (continued)

Fremont-Newark Community College
District G.O. Unlimited Bonds, Series A
(MBIA Insured),

5.38%, 8/1/19		$750		$800

Glendale Unified School District G.O.
Bonds, Series D (MBIA Insured),

5.38%, 9/1/18		665		705

Golden State Tobacco Securitization
Corp. Revenue Bonds, Series B,
Enhanced Asset Backed, Prerefunded,

5.38%, 6/1/10		2,220		2,325

5.63%, 6/1/13		2,000		2,204

Huntington Beach Unified High School
District G.O. Unlimited Bonds,
Election 2004 (FSA Insured),

5.00%, 8/1/29		1,155		1,196

Imperial Irrigation District COP,
Electric Systems Project,

6.50%, 11/1/07		825		827

Imperial Irrigation District Refunding COP,
Electric Systems Project
(MBIA Insured),

5.20%, 11/1/09		175		179

Lemoore Union High School District G.O.
Unlimited Bonds (AMBAC Insured),

6.00%, 1/1/12		200		219

Long Beach Bond Finance Authority
Natural Gas Purpose Revenue Bonds,
Series A, (1)

5.50%, 11/15/28		1,000		1,062

5.50%, 11/15/30		2,500		2,645

Los Angeles County Metropolitan
Transportation Authority Sales Tax
Revenue Refunding Bonds, Series A,
Proposition C-2nd Senior
(FSA Insured),

4.50%, 7/1/30		1,250		1,231

Los Angeles County Metropolitan
Transportation Authority Sales TRB,
Series B, Property A-First Tier
(FSA Insured),

4.75%, 7/1/15		1,750		1,798

Los Angeles County Metropolitan
Transportation Authority Sales TRB,
Series B, Property A-First Tier
(FSA Insured), Prerefunded,

4.75%, 7/1/09		1,150		1,187

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 95.8% – CONTINUED

California - 88.7% – (continued)

Los Angeles Department of Water &
Power Waterworks Revenue Bonds,
Series C (MBIA Insured),

5.00%, 7/1/29		$1,500		$1,553

Los Angeles Harbor Department Revenue
Bonds, Escrowed to Maturity,

7.60%, 10/1/18		35		42

Lucia Mar Unified School District G.O.
Unlimited Refunding Bonds
(FGIC Insured),

5.25%, 8/1/22		700		778

Modesto Irrigation District
Refunding COP, Series B,
Capital Improvements Projects,

5.30%, 7/1/22		1,585		1,586

Monterey Regional Water Pollution
Control Agency Wastewater Revenue
Bonds (AMBAC Insured),

5.00%, 6/1/24		1,025		1,078

Natomas Unified School District G.O.
Unlimited Bonds, Series B, Election
2002 (FGIC Insured),

5.00%, 9/1/27		1,000		1,038

New Haven Unified School District G.O.
Unlimited Refunding Bonds
(FSA Insured),

5.75%, 8/1/20		320		349

Palomar Community College
District G.O. Unlimited Bonds, Series A,
Election of 2006 (FSA Insured),

4.50%, 5/1/25		1,250		1,254

Paramount Unified School District G.O.
Unlimited, Election 2006 (FSA Insured),

5.25%, 8/1/22		1,000		1,087

Perris Unified High School District
Capital Appreciation G.O. Unlimited
Bonds, Series B (FGIC Insured),

0.00%, 9/1/26		1,000		425

Poway Unified School District Public
Financing Authority Special TRB
(AMBAC Insured),

5.00%, 9/15/31		1,000		1,034

Rio Hondo Community College District
G.O. Unlimited Bonds, Series A, School
Facilities Construction & Improvement
(MBIA Insured), Prerefunded,

5.25%, 8/1/14		2,000		2,203


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 95.8% – CONTINUED

California - 88.7% – (continued)
Ross Elementary School District G.O.
Unlimited Bonds, Election 2006
(MBIA Insured),

5.25%, 8/1/27		$850		$902

Sacramento County Sanitation District
Financing Authority Revenue Bonds,
Series A,

5.60%, 12/1/16		305		305

San Diego Unified School District G.O.
Unlimited Refunding Bonds, Election
1998, Series C-2 (FSA Insured),

5.50%, 7/1/19		1,000		1,129

San Francisco Bay Area Transit Financing
Authority G.O. Unlimited Bonds,
Series B, Election of 2004,

4.75%, 8/1/37		1,280		1,289

San Francisco City & County Airport
Commission International Airport
Revenue Refunding Bonds, Second
Series Issue 20 (MBIA Insured),

4.75%, 5/1/15		1,000		1,016

San Francisco City & County G.O.
Unlimited Bonds, Series A, Educational
Facilities Community College Project,
Prerefunded,

5.75%, 6/15/08		1,200		1,243

San Francisco State Building Authority
Lease Revenue Bonds, Series A,
Department of General Services,

5.00%, 10/1/13		4,250		4,436

San Gabriel Unified School District G.O.
Unlimited Bonds, Series A
(FSA Insured),

5.38%, 8/1/19		200		214

5.38%, 8/1/20		225		241

San Joaquin County COP, County
Administration Building
(MBIA Insured),

4.75%, 11/15/33		1,000		998

San Jose Airport Revenue Bonds,
Series A (FGIC Insured),

5.25%, 3/1/16		440		460

San Jose G.O. Unlimited Bonds, Libraries
& Public Safety Project,

4.25%, 9/1/23		770		757

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS

CALIFORNIA TAX - EXEMPT FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 95.8% – CONTINUED

California - 88.7% – (continued)
San Jose Unified School District Santa
Clara County G.O. Unlimited Bonds,
Series A (FSA Insured),

5.38%, 8/1/19		$500		$533

San Juan Unified School District G.O.
Unlimited Bonds, Election of 2002
(FGIC Insured),

5.00%, 8/1/25		1,000		1,044

San Mateo County Transit District
Revenue Bonds, Series A (MBIA
Insured), Prerefunded,

4.50%, 6/1/10		1,225		1,245

5.00%, 6/1/10		500		510

Santa Margarita-Dana Point Authority
Revenue Bonds, Series B, California
Improvements Districts 3, 3a, 4, & 4a
(MBIA Insured),

7.25%, 8/1/09		1,150		1,226

Santa Rosa Wastewater Revenue
Refunding Bonds, Series A
(FGIC Insured),

5.25%, 9/1/16		35		38

Torrance Hospital Revenue Bonds,
Series A, Torrance Memorial
Medical Center,

6.00%, 6/1/22		500		533

University of California Revenue Bonds,
Series A, Limited Project
(MBIA Insured),

4.75%, 5/15/26		1,000		1,014

University of California Revenue Bonds,
Series B, Limited Project,

4.75%, 5/15/38		2,525		2,521

University of California Revenue Bonds,
Series C (MBIA Insured),

4.75%, 5/15/31		1,000		1,007

University of California Revenue Bonds,
Series J (FSA Insured),

4.50%, 5/15/26		2,505		2,502

Vista Unified School District G.O.
Unlimited Bonds, Series A
(FSA Insured),

5.38%, 8/1/16		100		108

5.38%, 8/1/17		190		204


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 95.8% – CONTINUED

California - 88.7% – (continued)

Walnut Valley Unified School
District G.O. Unlimited Refunding
Bonds, Series A (MBIA Insured),

7.20%, 2/1/16		$1,000		$1,155

Washington Township Healthcare District
Revenue Bonds,

5.00%, 7/1/09		405		413

5.00%, 7/1/11		500		513

5.00%, 7/1/12		1,270		1,302

West Kern Community College District
Capital Appreciation G.O. Unlimited
Bonds, Series B, Election 2004
(XLCA Insured),

0.00%, 11/1/21		1,280		654



				114,879



Puerto Rico - 6.3%

Puerto Rico Commonwealth Highway &
Transportation Authority Revenue
Bonds, Series B (MBIA Insured),
Prerefunded,

5.75%, 7/1/10		1,600		1,709

Puerto Rico Commonwealth
Highway & Transportation Authority
Revenue Refunding Bonds,
Series CC (FSA Insured),

5.25%, 7/1/32		2,000		2,223

Puerto Rico Commonwealth
Infrastructure Financing Authority
Special Obligation Bonds, Series A,
Escrowed to Maturity,

5.50%, 10/1/40		4,000		4,218



				8,150



Virgin Islands - 0.8%

Virgin Islands PFA Revenue Bonds,
Series A, Gross Receipts Tax Lien Note,

5.63%, 10/1/10		1,050		1,070


Total Municipal Bonds


(Cost $120,363)				124,099

SHORT-TERM INVESTMENTS - 8.1%
Bay Area Toll Authority Revenue VRDB,
Series C, San Francisco Bay Area
(AMBAC Insured),

3.70%, 10/4/07		400		400

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 8.1% – CONTINUED

California Pollution Control Financing
Authority PCR Refunding VRDB,
Series C, Pacific Gas & Electric
(JP Morgan Chase Bank LOC),

3.93%, 10/1/07		$750		$750

California State Department of Water
Resources Power Supply Revenue
VRDB, Series B-2 (BNP Paribas LOC),

3.97%, 10/1/07		500		500

California State Department of Water
Resources Power Supply Revenue
VRDB, Series C-7 (FSA Insured),

3.73%, 10/4/07		100		100

California State Department of Water
Resources Power Supply Revenue
VRDB, Subseries G-3 (FSA Insured),

3.73%, 10/4/07		500		500

California State Economic Recovery
Revenue VRDB, Series C-4,

3.80%, 10/1/07		200		200

California State Economic Recovery
Revenue VRDB, Series C-8
(Lloyds TSB Bank PLC LOC),

3.90%, 10/1/07		300		300

California State G.O. Unlimited VRDB,
Series A, Subseries A-3
(Bank Of America N.A. LOC),

3.79%, 10/3/07		100		100

California State G.O. Unlimited VRDB,
Series B4 (BNP Paribas LOC),

3.73%, 10/3/07		100		100

California Statewide Communities
Development Authority Revenue VRBD,
Series J,

3.80%, 10/3/07		6,400		6,400

Metropolitan Water District of Southern
California Waterworks Revenue
VRDB Adjustable, Series B,

3.73%, 10/4/07		200		200

Metropolitan Water District of Southern
California Waterworks Revenue VRDB,
Series B-3,

3.86%, 10/1/07		300		300

Orange County Housing Authority
Apartment Development Revenue
Refunding VRDB, Series I, Oasis
Martinique (Fannie Mae Insured),

3.75%, 10/4/07		300		300


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS- 8.1% – CONTINUED

Oxnard Financing Authority Lease
Revenue VRDB, Civic Center Phase 2
Project (AMBAC Insured),

3.73%, 10/4/07		$300		$300


Total Short-Term Investments


(Cost $10,450)				10,450


Total Investments - 103.9%


(Cost $130,813)				134,549

Liabilities less Other Assets - (3.9)%				(5,042	)


NET ASSETS - 100.0%				$129,507

(1) When-Issued Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the California Tax-Exempt Fund were:


INDUSTRY SECTOR	% OF INVESTMENTS
General		11.2	%
General Obligation		17.1
Higher Education		14.7
Medical		6.6
Power		6.3
School District		11.0
Transportation		8.6
All other sectors less than 5%		24.5


Total		100.0	%

At September 30, 2007, the credit quality distribution for the California Tax-Exempt Fund as a percentage of investments including cash was:


QUALITY DISTRIBUTION *	%
AAA		58.4	%
AA		12.1
A		24.2
BBB		2.4
Cash and Equivalents		2.9


Total		100.0	%

* Standard & Poor’s Rating Services

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9%

Alabama - 0.6%

Butler Industrial Development Board
Solid Waste Disposal Revenue
Refunding Bonds (AMT),
Georgia-Pacific Corp. Project,

5.75%, 9/1/28		$1,000		$957

Camden Industrial Development Board
Revenue Refunding Bonds, Series A,
Weyerhaeuser Company,

6.13%, 12/1/24		1,000		1,071


				2,028



Alaska - 0.4%

Alaska Industrial Development & Export
Authority Revenue Bonds,
Boys & Girls Home,

5.88%, 12/1/27		1,500		1,507



Arizona - 3.9%

Arizona Health Facilities Authority Health
Care Facilities Revenue Bonds,
Beatitudes Campus Project,

5.20%, 10/1/37		2,000		1,802

Arizona Health Facilities Authority
Hospital System Revenue Bonds,
John C. Lincoln Health Network,
Prerefunded,

6.88%, 12/1/10		1,000		1,115

Coconino County PCR Bonds, Series A
(AMT), Tucson Electric Power Co.,

7.13%, 10/1/32		1,000		1,029

Flagstaff IDA Revenue Refunding Bonds,
Northern Arizona Senior Living
Community Project,

5.70%, 7/1/42		4,445		4,333

Glendale IDA Revenue Refunding Bonds,
Midwestern University,

5.00%, 5/15/31		2,000		2,023

Navajo County IDA Revenue Bonds
(AMT), Stone Container Corp. Project,

7.40%, 4/1/26		2,300		2,320

Peoria IDA Revenue Refunding Bonds,
Series A, Sierra Winds Life,

6.25%, 8/15/20		500		511

Yavapai County IDA Hospital Facilities
Revenue Bonds, Series A, Yavapai
Regional Medical Center,

6.00%, 8/1/33		500		514



				13,647


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Arkansas - 1.2%

Independence County PCR Refunding
Bonds, Entergy Ark, Inc. Project,

5.00%, 1/1/21		$3,770		$3,781

Little Rock Hotel & Restaurant Gross

Receipts Refunding TRB,

7.38%, 8/1/15		500		575


				4,356



California - 6.8%

California Educational Facilities Authority
Revenue Bonds, Dominican University,

5.00%, 12/1/25		890		881

5.00%, 12/1/36		2,000		1,934

California Pollution Control Financing
Authority Solid Waste Disposal PCR
Refunding Bonds, Series A (AMT),
U.S.A. Waste Services, Inc.,

5.10%, Mandatory Put 6/1/08		2,300		2,314

California State Department of Water
Resources Power Supply
Revenue Bonds, Series A,

6.00%, 5/1/14		500		551

California State Public Works Board
Lease Revenue Bonds, Series C,
Department of Corrections,

5.50%, 6/1/15		1,000		1,096

California Statewide Communities
Development Authority
Revenue Bonds, Series A,
California Baptist University,

5.50%, 11/1/38		2,000		1,968

Golden State Tobacco Securitization
Corp. Tobacco Settlement
Revenue Bonds, Series A,
Enhanced Asset Backed,

5.00%, 6/1/45		2,000		1,997

Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Bonds, Series A-5, Asset Backed,
Prerefunded,

7.88%, 6/1/13		500		607

Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Bonds, Series A1, Asset Backed,

5.75%, 6/1/47		3,000		2,861

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 28 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

California - 6.8% – (continued)

Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Bonds, Series B, Enhanced Asset
Backed, Prerefunded,

5.50%, 6/1/13		$1,000		$1,094

Irvine Unified School District Financing
Authority Special Tax Bonds, Series A,

5.13%, 9/1/36		2,000		1,857

Laguna Beach Unified School District
G.O. Unlimited Bonds, Election of 2001
(FSA Insured),

5.00%, 8/1/28		1,000		1,032

Northstar Community Services District
No. 1 Special Tax Bonds,

5.55%, 9/1/36		1,400		1,405

5.00%, 9/1/37		3,000		2,789

Tobacco Securitization Authority of
Southern California Tobacco
Settlement Asset Backed Bonds,
San Diego County Tobacco Asset
Securitization Corp.,
Series A1-Senior,

5.00%, 6/1/37		2,000		1,728


				24,114



Colorado - 1.9%

Colorado Health Facilities Authority
Revenue Bonds, Portercare Adventist
Health Hospital, Prerefunded,

6.50%, 11/15/11		500		560

Copperleaf Metropolitan District No. 2
G.O. Limited Bonds,

5.85%, 12/1/26		2,000		1,926

5.95%, 12/1/36		2,000		1,888

Prairie Center Metropolitan District No. 3
Limited Property Tax Supported
Primary Improvements Revenue
Bonds, Series A,

5.40%, 12/15/31		2,700		2,450



				6,824



Connecticut - 0.3%
Connecticut State Development Authority
PCR Refunding Bonds, Series B (AMT),
Connecticut Light & Power,

5.95%, 9/1/28		1,000		1,030


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

District of Columbia - 0.1%

District of Columbia Revenue Bonds,
Methodist Home of the District of
Columbia Issue,

6.00%, 1/1/20		$400		$403



Florida - 11.6%
Belmont Community Development District
Capital Improvement Special
Assessment Revenue Bonds, Series B,

5.13%, 11/1/14		2,000		1,896

Broward County Airport Exempt Facility
Revenue Bonds (AMT), Learjet, Inc.
Project,

7.50%, 11/1/20		3,430		3,855

Capital Projects Finance Authority
Continuing Care Retirement Community
Revenue Bonds, Series A, The
Glenridge on Palmer Ranch Project,
Prerefunded,

8.00%, 6/1/12		750		892

Capital Trust Agency Revenue Bonds
(AMT), Fort Lauderdale Project, Cargo
Acquisition Companies Obligated
Group,

5.75%, 1/1/32		525		526

Crossings at Fleming Island Community
Development District Special
Assessment Revenue Refunding
Bonds, Series C,

7.05%, 5/1/15		400		416

Gateway Services Community
Development District Special
Assessment Bonds, Series B, Sun City
Center - Fort Meyers Project,

5.50%, 5/1/10		385		380

Halifax Hospital Medical Center
Refunding & Improvement Revenue
Bonds, Series A,

5.38%, 6/1/46		2,000		2,003

Heritage Harbor South Community
Development District Capital
Improvement Special
Assessment Bonds, Series B,

5.40%, 11/1/08		5		5

Highlands County Health Facilities
Authority Revenue Bonds, Series A,
Adventist Health System/Sunbelt,
Prerefunded,

6.00%, 11/15/11		1,250		1,371

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 29 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Florida - 11.6% – (continued)
Islands at Doral III Community District
Special Assessment Bonds,
Series 2004-A,

5.90%, 5/1/35		$975		$964

Jacksonville Econonomic Development
Commission Common Health Care
Facilities Revenue Refunding Bonds,
Series A, Florida Proton Therapy
Institution,

6.00%, 9/1/17		3,250		3,296

Lee County IDA IDR Bonds, Series A,
County Community Charter
Foundation, ⁽¹⁾

5.25%, 6/15/27		2,000		1,872

5.38%, 6/15/37		3,000		2,752

Miami Beach Health Facilities Authority
Revenue Refunding Bonds,
Mount Sinai Medical Center,

6.75%, 11/15/29		1,000		1,068

Midtown Miami Community Development
District Special Assessment Bonds,
Series A,

6.25%, 5/1/37		1,000		1,013

Orange County Health Facilities Authority
Revenue Bonds, Series B,
Orlando Regional Healthcare,

5.13%, 11/15/39		1,000		993

Old Palm Community Development
District Special Assessment Bonds,
Series B, Palm Beach Gardens,

5.38%, 5/1/14		940		919

Palm Glades Community Development
District Special Assessment Bonds,
Series B,

4.85%, 8/1/11		1,500		1,459

Poinciana Community Development
District Special Assessment Bonds,
Series A,

7.13%, 5/1/31		400		418

Reunion East Community Development
District Special Assessment Bonds,

5.80%, 5/1/36		1,000		966

Reunion West Community Development
District Special Assessment Bonds,

6.25%, 5/1/36		990		1,001


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Florida - 11.6% – (continued)

Seminole Indian Tribe of Florida Special
Obligation Revenue Bonds,
Series A-144A,

5.75%, 10/1/22		$1,000		$1,050

5.25%, 10/1/27		1,000		998

South Village Community Development
District Capital Improvement Revenue
Bonds, Series A,

5.70%, 5/1/35		970		926

Sterling Hill Community Development
District Capital Improvement Special
Assessment Revenue Bonds, Series B,

5.50%, 11/1/10		310		309

Tern Bay Community Development
District Capital Improvement Special
Assessment Revenue Bonds, Series B,

5.00%, 5/1/15		2,475		2,271

Verano Center Community Development
District Special Assessment Bonds,
Series B, District No. 1 Infrastructure
Project,

5.00%, 11/1/12		1,995		1,952

Watergrass Community Development
District Special Assessment
Revenue Bonds, Series B,
Watergrass Development,

4.88%, 11/1/10		1,570		1,542

Westchester Community Development
District No. 1 Special Assessment
Bonds, Community Infrastructure,

6.00%, 5/1/23		2,335		2,326

Winter Garden Village at Fowler Groves
Community Development District
Special Assessment Bonds,

5.65%, 5/1/37		1,500		1,437


				40,876



Georgia - 2.5%

Atlanta Tax Allocation Bonds,
Princeton Lakes Project,

5.50%, 1/1/31		1,235		1,177

Chatham County Hospital Authority
Revenue Bonds, Series A, Memorial
Health University Medical Center, Inc.,

5.50%, 1/1/34		3,000		3,011

Georgia State G.O. Unlimited Bonds,
Series D, Prerefunded,

5.75%, 10/1/10		705		750

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 30 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Georgia - 2.5% – (continued)

Milledgeville-Baldwin County
Development Authority Revenue
Bonds, Georgia College & State
University Foundation, Prerefunded,

6.00%, 9/1/14		$3,500		$4,028


				8,966



Idaho - 0.8%

Madison County Hospital Revenue COP,

5.25%, 9/1/26		1,500		1,461

5.25%, 9/1/30		1,500		1,435



				2,896



Illinois - 6.6%

Illinois Development Finance Authority
Revenue Bonds, Series B, Midwestern
University, Prerefunded,

6.00%, 5/15/11		500		546

Illinois Educational Facilities Authority
Student Housing Revenue Bonds,
Educational Advancement Fund
University Center Project, Prerefunded,

6.25%, 5/1/12		750		840

Illinois Finance Authority Revenue Bonds,
Series A, Illinois Institute of
Technology,

5.00%, 4/1/20		3,000		3,039

Illinois Finance Authority Revenue Bonds,
Series A, Landing at Plymouth Place
Project,

6.00%, 5/15/37		1,250		1,265

Illinois Finance Authority Revenue Bonds,
Series A, Montgomery Place Project,

5.75%, 5/15/38		1,600		1,568

Illinois Finance Authority Revenue Bonds,
Series A, Smith Village Project,

6.25%, 11/15/35		3,000		3,074

Illinois Finance Authority Revenue Bonds,
Series A, Three Crowns Park Project,

5.88%, 2/15/38		1,500		1,497

Illinois Finance Authority Revenue
Refunding Bonds, Chicago Charter
School Project,

5.00%, 12/1/36		4,000		3,689

Illinois Finance Authority Student Housing
Revenue Bonds, Series A, MJH
Education Assistance IV,

5.13%, 6/1/35		2,000		1,703


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Illinois - 6.6% – (continued)

Illinois Finance Authority Student Housing
Revenue Refunding Bonds, Series A,
Educational Advancement Fund,

5.25%, 5/1/34		$4,500		$4,319

Illinois Health Facilities Authority
Revenue Bonds, Riverside Health
System, Prerefunded,

6.00%, 11/15/12		1,000		1,111

Illinois Health Facilities Authority
Revenue Bonds, Series A, Lutheran
Senior Ministries Obligation,
Prerefunded,

7.38%, 8/15/11		500		572



				23,223



Indiana - 1.8%

Indiana Health & Educational Facilities
Financing Authority Hospital Revenue
Bonds, Community Foundation
Northwest Indiana,

5.50%, 3/1/37		2,000		1,971

Indiana Health Facility Financing
Authority Hospital Revenue Bonds ,
Series A, Community Foundation,

6.38%, 8/1/31		125		129

Indiana Health Facility Financing
Authority Hospital Revenue Bonds,
Series A, Community Foundation of
Northwest Indiana,

6.00%, 3/1/34		1,000		1,029

Indiana Health Facility Financing
Authority Hospital Revenue Bonds,
Series A, Community Foundation,
Prerefunded,

6.38%, 8/1/11		375		415

North Manchester Revenue Bonds,
Series A, Peabody Retirement
Community Project,

7.25%, 7/1/33		750		764

Petersburg PCR Bonds (AMT),
Indianapolis Power & Light,

6.38%, 11/1/29		1,000		1,062

Vigo County Hospital Authority Revenue
Bonds, Union Hospital, Inc., ⁽¹⁾

5.75%, 9/1/42		1,000		993



				6,363

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 31 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Iowa - 4.7%

Bremer County Healthcare & Residential
Facilities Revenue Bonds, Bartels
Lutheran Home Project, Prerefunded,

7.25%, 11/15/09		$500		$542

Bremer County Retirement Facility
Revenue Bonds, Series A, Bartels
Lutheran Home Project,

5.13%, 11/15/20		400		387

5.38%, 11/15/27		750		729

Coralville COP, Series D,

5.25%, 6/1/26		2,200		2,246

Iowa Finance Authority Senior Housing
Revenue Bonds, Series A, Wedum
Walnut Ridge LLC Project,

5.63%, 12/1/45		5,000		4,784

Iowa Higher Education Loan Authority
Revenue Bonds, Series B, Wartburg
Private College Facilities,

5.55%, 10/1/37		3,000		2,919

Iowa Higher Education Loan Authority
Revenue Refunding Bonds, Grand View
College Project,

5.10%, 10/1/36		2,500		2,356

Washington County Hospital Revenue
Bonds, Washington County Hospital
Project,

5.38%, 7/1/26		1,525		1,484

5.50%, 7/1/32		1,275		1,233



				16,680



Kansas - 0.4%

Olathe Senior Living Facility Revenue
Bonds, Series A, Aberdeen Village,
Inc., Prerefunded,

8.00%, 5/15/10		500		563

Wyandotte County-Kansas City Unified
Government Special Obligation
Revenue Refunding Bonds, Series B,
Sales Tax Second Lien,

5.00%, 12/1/20		1,000		1,008



				1,571



Maine - 0.3%

Maine Finance Authority Solid Waste
Recycling Facilities Revenue Bonds,
(AMT), Great Northern Paper Project,
Bowater Inc.,

7.75%, 10/1/22		1,000		1,013


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Maryland - 1.9%

Annapolis Special Obligation Revenue
Bonds, Series A, Park Place Project,

5.35%, 7/1/34		$1,000		$964

Anne Arundel County Special Obligation
Bonds, National Business Park Project,
Prerefunded,

7.38%, 7/1/10		500		557

Maryland Industrial Development
Financing Authority Revenue Bonds,
Series A, Our Lady of Good Counsel
School,

6.00%, 5/1/35		1,000		1,012

Maryland State Economic Development
Corp. Student Housing Revenue Bonds,
University of Maryland, College Park
Project, Prerefunded,

5.63%, 6/1/13		1,000		1,098

Maryland State Health & Higher
Educational Facilities Authority
Revenue Bonds, Series A,
Mercy Ridge, Prerefunded,

6.00%, 4/1/13		1,000		1,122

Maryland State Health & Higher
Educational Facilities Authority
Revenue Bonds, Washington
Christian Academy,

5.50%, 7/1/38		1,170		1,131

Prince Georges County Special Obligation
Bonds, National Harbor Project,
5.20%, 7/1/34		1,000		950



				6,834



Massachusetts - 1.9%

Massachusetts State Development
Finance Agency Revenue Bonds
(AMT), Waste Management Project,

5.50%, Mandatory Put 5/1/14		1,000		1,041

Massachusetts State Development
Finance Agency Revenue Bonds,
Hampshire College,

5.70%, 10/1/34		1,000		1,040

Massachusetts State Development
Finance Agency Revenue Bonds,
Series B, Briarwood, Prerefunded,

8.25%, 12/1/10		500		573

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 32 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Massachusetts - 1.9% – (continued)

Massachusetts State Health &
Educational Facilities Authority
Revenue Bonds, Series A, Northern
Berkshire Health System,

6.38%, 7/1/34		$1,000		$1,038

Massachusetts State Health &
Educational Facilities Authority
Revenue Bonds, Series B,
Northern Berkshire Health System,

6.38%, 7/1/34		500		519

Massachusetts State Health &
Educational Facilities Authority
Revenue Bonds, Series D,
Milton Hospital,

5.25%, 7/1/30		2,150		2,043

Massachusetts State Health &
Educational Facilities Authority
Revenue Bonds, Series E, Berkshire
Health System (G.O. of Institution),

6.25%, 10/1/31		500		520



				6,774



Michigan - 2.1%

Flint Hospital Building Authority
Revenue Refunding Bonds,
Hurley Medical Center,

6.00%, 7/1/20		1,000		1,025

Michigan State Strategic Fund Ltd.
Obligation Revenue Refunding Bonds
(AMT), Dow Chemical Project,

5.50%, Mandatory Put 6/1/13		3,825		3,994

Michigan Strategic Fund PCR
Refunding Bonds,
General Motors Corp.,

6.20%, 9/1/20		2,500		2,504



				7,523



Minnesota - 1.5%

Duluth Economic Development Authority
Health Care Facilities Revenue Bonds,
St. Luke’s Hospital,

7.25%, 6/15/32		750		802

North Oaks Senior Housing Revenue
Bonds, Presbyterian Homes North
Oaks,

6.13%, 10/1/39		2,585		2,627


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Minnesota - 1.5% – (continued)

St. Paul Housing & Redevelopment
Authority Revenue Bonds, Series A,
Rossy & Richard Shaller Sholom
Home East Inc.,

5.25%, 10/1/42		$2,000		$1,864


				5,293




Mississippi - 2.1%

Lowndes County Solid Waste Disposal &
PCR Refunding Bonds, Series B,
Weyerhaeuser Co. Project,

6.70%, 4/1/22		3,000		3,451

Mississippi Business Finance Corp. PCR
Refunding Bonds, Systems Energy
Resources, Inc. Project,

5.90%, 5/1/22		630		630

Mississippi Development Bank Special
Obligation Revenue Bonds, Harrison
County Highway Construction
(FGIC Insured),

5.00%, 1/1/16		3,000		3,226



				7,307



Missouri - 0.9%

Saint Louis IDA Senior Living Facilities
Revenue Bonds, Series A, Saint
Andrews Residence for Seniors,

6.38%, 12/1/41		3,005		3,071



Nevada - 0.9%

Henderson Healthcare Facility
Revenue Bonds, Series B,
Catholic Healthcare West,

5.25%, 7/1/31		3,000		3,055



New Hampshire - 0.1%

New Hampshire Business Finance
Authority PCR Refunding Bonds,
Series D (AMT), Public Service Co. of
New Hampshire,

6.00%, 5/1/21		500		515



New Jersey - 1.6%

Middlesex County Improvement Authority
Revenue Bonds, Series A, George
Street Student Housing Project,

5.00%, 8/15/35		1,000		936

New Jersey Economic Development
Authority Revenue Bonds,
Cigarette Tax,

5.75%, 6/15/34		1,000		1,042

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 33 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

New Jersey - 1.6% – (continued)

New Jersey Economic Development
Authority Revenue Bonds, Series A,
First Mortgage-Lions Gate Project,

5.88%, 1/1/37		$1,000		$1,012

New Jersey Health Care Facilities
Financing Authority Revenue Bonds,
Series A, Capital Health Systems
Obligation Group,

5.38%, 7/1/33		1,000		1,002

New Jersey State Educational Facilities
Authority Revenue Bonds, Series D,
Fairleigh Dickinson University,

6.00%, 7/1/25		1,000		1,043

Tobacco Settlement Financing Corp.
Revenue Bonds, Prerefunded,

6.75%, 6/1/13		500		577


				5,612



New York - 3.8%

Long Island Power Authority Electric
Systems Revenue Bonds, Series B,

5.25%, 12/1/14		3,000		3,274

Metropolitan Transportation Authority
Dedicated Tax Fund Revenue Bonds,
Series A (FGIC Insured),

5.25%, 11/15/14		1,695		1,865

Monroe County Industrial Development
Agency Civic Facilities
Revenue Refunding Bonds,
Highland Hospital Rochester,

5.00%, 8/1/22		1,000		994

New York City G.O. Unlimited Bonds,
Series B,

6.50%, 8/15/09		1,500		1,582

New York City Industrial Development
Agency Special Facilities Revenue
Bonds (AMT), Terminal One Group
Association Project,

5.50%, 1/1/24		1,000		1,062

New York City Transitional Finance
Authority Revenue Refunding Bonds,
Series A-1, Future Tax Secured,

5.00%, 11/1/14		2,000		2,159

New York Liberty Development Corp.
Revenue Bonds, Series A, National
Sports Museum Project,

6.13%, 8/15/19		2,500		2,553



				13,489


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

North Carolina - 1.9%

Gaston County Industrial Facilities &
Pollution Control Financing Authority
Revenue Bonds (AMT), Exempt
Facilities-National Gypsum Co. Project,

5.75%, 8/1/35		$1,500		$1,510

North Carolina Eastern Municipal Power
Agency Power System Revenue Bonds,
Series D,

6.45%, 1/1/14		385		407

North Carolina Eastern Municipal Power
Agency Power System Revenue
Refunding Bonds, Series B,

6.13%, 1/1/09		500		514

5.70%, 1/1/17		1,500		1,554

North Carolina Eastern Municipal Power
Agency Power System Revenue
Refunding Bonds, Series F,

5.38%, 1/1/13		1,000		1,064

North Carolina Municipal Power Agency
No. 1 Catawba Electric Revenue
Bonds, Series A,

5.50%, 1/1/13		1,000		1,070

North Carolina Municipal Power Agency
No. 1 Catawba Electric Revenue
Bonds, Series B,

6.38%, 1/1/13		500		530



				6,649



Ohio - 1.2%

Ohio State Water Development Authority
Solid Waste Revenue Bonds, Series A
(AMT), Allied Waste, Inc. Project,

5.15%, 7/15/15		1,000		995

Toledo-Lucas County Port Authority
Revenue Refunding Bonds, CSX
Transportation, Inc. Project,

6.45%, 12/15/21		2,750		3,062



				4,057



Oklahoma - 1.3%

Langston Economic Development
Authority Student Housing Revenue
Bonds, Series A, Langston Community
Development Corp., Prerefunded,

7.75%, 8/1/10		500		564

Norman Regional Hospital Authority
Revenue Bonds,

5.38%, 9/1/36		2,000		1,981

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 34 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Oklahoma - 1.3% – (continued)

Oklahoma Development Finance
Authority Hospital Revenue Bonds,
Great Plains Regional Medical Center
Project,

5.13%, 12/1/36		$2,000		$1,859



				4,404



Pennsylvania - 7.2%

Allegheny County Redevelopment
Authority Tax Allocation Revenue
Bonds, Pittsburgh Mills Project,

5.60%, 7/1/23		2,000		2,023

Bucks County IDA Retirement Community
Revenue Bonds, Ann’s Choice Inc.,
Facility, Series A

6.25%, 1/1/35		2,600		2,660

Carbon County IDA Resource Recovery
Refunding Bonds (AMT), Panther Creek
Partners Project,

6.65%, 5/1/10		1,375		1,403

Fulton County IDA Hospital Revenue
Bonds, Fulton County Medical Center
Project,

5.90%, 7/1/40		2,000		2,001

Montgomery County Higher Education &
Health Authority Revenue Bonds,
Series A, Philadelphia Geriatric Center,
Prerefunded,

7.25%, 12/1/09		500		548

Pennsylvania Economic Development
Financing Authority Exempt Facilities
Revenue Bonds, Series A (AMT),
Amtrak Project,

6.13%, 11/1/21		1,400		1,469

Pennsylvania Economic Development
Financing Authority Exempt Facilities
Revenue Bonds, Series A (AMT),
National Gypsum Co., Shippingport
Project,

6.25%, 11/1/27		1,400		1,440

Pennsylvania Economic Development
Financing Authority Exempt Facilities
Revenue Bonds, Series A (AMT),
Reliant Energy,

6.75%, 12/1/36		1,750		1,900

Pennsylvania Higher Educational Facilities
Authority Revenue Bonds, Series A,
LaSalle University, ⁽¹⁾

5.00%, 5/1/37		1,500		1,482


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 92.9% – CONTINUED

Pennsylvania - 7.2% – (continued)

Pennsylvania State Higher Educational
Facilities Authority Revenue Bonds,
LaSalle University,

5.50%, 5/1/34		$1,000		$1,024

Pennsylvania State Higher Educational
Facilities Authority Revenue Bonds,
Series A, Philadelphia University,

5.25%, 6/1/32		1,250		1,251

Pennsylvania State Higher Educational
Facilities Authority Revenue Bonds,
Widener University,

5.40%, 7/15/36		750		762

Pennsylvania State Higher Educational
Facilities Authority Student Housing
Revenue Bonds, Series A, Student
Association, Inc. Project,

6.75%, 9/1/32		490		514

Philadelphia Hospitals & Higher
Education Facilities Authority Hospital
Revenue Refunding Bonds, Series A,
Temple University Health Systems,

5.50%, 7/1/30		5,000		5,022

Philadelphia School District G.O.
Unlimited Bonds, Series A (FSA - State
Aid Withholding), Prerefunded,

5.50%, 2/1/12		1,000		1,076

Washington County Redevelopment
Authority Revenue Bonds, Series A,
Victory Centre Project - Tanger Outlet
Development,

5.45%, 7/1/35		1,000		967



				25,542



Puerto Rico - 0.3%

Puerto Rico Highway & Transportation
Authority Transportation Revenue
Bonds,

5.00%, 7/1/09		1,000		1,016



South Carolina - 1.2%

Georgetown County Environmental
Improvement Revenue Refunding
Bonds, Series A, International Paper
Co. Project,

5.70%, 4/1/14		2,200		2,347

Lancaster County Special Assessment
Revenue Bonds, Series B, Edenmoor
Improvement District,

5.38%, 12/1/16		2,000		2,006



				4,353

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 35 TAX - EXEMPT FIXED INCOME FUNDS

tax-exempt fixed income funds


SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND (continued)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 92.9% – CONTINUED


Tennessee - 2.7%

Johnson City Health & Educational
Facilities Board Revenue Bonds,
Series A, First Mortgage-Mountain
States Health,

5.50%, 7/1/36		$2,000		$2,023

Shelby County Health Educational &
Housing Facilities Board
Revenue Bonds, Series A,
Trezevant Manor Project,

5.75%, 9/1/37		2,700		2,683

Sumner County Health Educational &
Housing Facilities Board Revenue
Refunding & Improvement Bonds,
Series A, Regional Health,

5.50%, 11/1/37		5,000		4,971



				9,677



Texas - 8.7%

Austin City Convention Center Revenue
Bonds, Series A, Convention
Enterprise, Inc., First Tier, Prerefunded,

6.70%, 1/1/11		700		765

Brazos County Health Facilities
Development Corp. Franciscan
Services Corp. Revenue Bonds,

5.38%, 1/1/32		2,545		2,612

Brazos River Authority Refunding PCR
Bonds, Series A (AMT), Texas Utilities
Electric Co. Project,

7.70%, 4/1/33		1,000		1,087

Comal County Health Facilities
Development Revenue Bonds,
Series A, McKenna Memorial Project,

6.13%, 2/1/22		3,000		3,119

Corpus Christi G.O. Certificates
(FSA Insured), Prerefunded,

5.75%, 3/1/11		1,000		1,070

Dallas County Flood Control District No. 1
G.O. Unlimited Refunding Bonds,

7.25%, 4/1/32		1,000		1,060

Gulf Coast Waste Disposal Authority
Revenue Bonds (AMT), Valero Energy
Corp. Project,

6.65%, 4/1/32		1,000		1,052

Gulf Coast Waste Disposal Authority
Revenue Refunding Bonds,
Series A (AMT), International Paper Co.
Project,

6.10%, 8/1/24		3,000		3,100



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 92.9% – CONTINUED


Texas - 8.7% – (continued)

HFDC of Central Texas, Inc. Retirement
Facilities Revenue Bonds, Series A,

5.75%, 11/1/36		$1,000		$954

Houston Industrial Development Corp.
Revenue Bonds (AMT), Air Cargo,

6.38%, 1/1/23		500		526

Houston Water & Sewer System Junior
Lien Revenue Bonds, Series A
(FSA Insured), Prerefunded,

5.50%, 12/1/11		1,535		1,649

Lufkin Health Facilities Development
Corp. Health Systems Revenue Bonds,
Memorial Health Systems East Texas, ⁽¹⁾

5.50%, 2/15/37		1,320		1,329

Matagorda County Navigation District No.
1 Collateralized Revenue Refunding
Bonds, Centerpoint Energy Houston
Electric, LLC Project,

5.60%, 3/1/27		500		506

Mission Economic Development Corp.
Solid Waste Disposal Revenue Bonds,
Series A (AMT), Allied Waste N.A., Inc.
Project,

5.20%, 4/1/18		1,000		975

Port Corpus Christi Industrial
Development Corp. Environmental
Facilities Revenue Bonds (AMT),
Citgo Petroleum Corp.,

8.25%, 11/1/31		1,000		1,014

Sabine River Authority PCR Refunding
Bonds, Series B, TXU Energy
Co. LLC Project,

6.15%, 8/1/22		500		508

Sam Rayburn Municipal Power Agency
Revenue Refunding Bonds,

6.00%, 10/1/21		500		520

Tarrant County Cultural Education
Facilities Finance Corp. Retirement
Facilities Revenue Bonds, Series A,
Edgemere Project,

6.00%, 11/15/26		750		775

6.00%, 11/15/36		1,265		1,292

Tarrant County Cultural Education
Facilities Finance Corp. Retirement
Revenue Bonds, Air Force Village
Obligated Group Project,

5.13%, 5/15/37		3,000		2,874

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 36 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 92.9% – CONTINUED

Texas - 8.7% – (continued)

Texas State Turnpike Authority Central
Texas Turnpike Systems Revenue
Bonds, Series A, First Tier
(AMBAC Insured),

5.50%, 8/15/39		$1,000		$1,059

Travis County Health Facilities
Development Corp. Retirement Facility
Revenue Bonds, Querencia Barton
Creek Project,

5.65%, 11/15/35		2,750		2,723


				30,569



Virgin Islands - 0.2%

University of the Virgin Islands General
Improvement Bonds, Series A
(G.O. of University),

5.38%, 6/1/34		750		756



Virginia - 4.3%

Amherst IDA Revenue Refunding Bonds,
Educational Facilities - Sweet Briar,

5.00%, 9/1/26		1,000		990

Charles City & County IDA Solid Waste
Disposal Facilities Revenue Bonds
(AMT), Waste Management, Inc.
Project,

6.25%, Mandatory Put 4/1/12		500		533

Chesapeake Hospital Authority Facilities
Revenue Refunding Bonds,
Chesapeake General Hospital,
Series A,

5.25%, 7/1/18		1,500		1,575

Fairfax County Economic Development
Authority Residential Care Facilities
Mortgage Revenue Bonds,
Goodwin House, Inc.,

5.13%, 10/1/37		2,000		1,927

Tobacco Settlement Financing Corp.
Revenue Bonds, Asset Backed,
Prerefunded,

5.63%, 6/1/15		4,530		5,072

Tobacco Settlement Financing Corp.
Tobacco Settlement Asset Backed
Bonds, Series B1-Senior,

5.00%, 6/1/47		1,750		1,471

West Point IDA Solid Waste Disposal
Revenue Bonds, Series A (AMT),
Chesapeake Corp. Project,
6.38%, 3/1/19		2,000		1,969



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 92.9% – CONTINUED

Virginia - 4.3% – (continued)

West Point IDA Solid Waste Disposal
Revenue Bonds, Series B,
Chesapeake Corp. Project,

6.25%, 3/1/19		$1,680		$1,657


				15,194



Washington - 0.9%

Washington State Housing Finance
Commission Nonprofit Revenue Bonds,
Series A, Skyline at First Hill Project,

5.25%, 1/1/17		1,000		1,013

5.63%, 1/1/27		1,000		998

5.63%, 1/1/38		1,000		978


				2,989



Wisconsin - 1.7%

Wisconsin Health & Educational Facilities
Authority Revenue Bonds, Series A,
Beaver Dam Community Hospitals,

6.75%, 8/15/34		1,000		1,052

Wisconsin Health & Educational Facilities
Authority Revenue Bonds, Vernon
Memorial Healthcare Project,

5.10%, 3/1/25		1,000		959

Wisconsin Health & Educational Facilities
Authority Revenue Refunding Bonds,
Divine Savior Healthcare,

5.00%, 5/1/32		3,155		2,947

Wisconsin Health & Educational Facilities
Authority Revenue Refunding Bonds,
Vernon Memorial Healthcare Project,

5.25%, 3/1/35		1,000		942


				5,900



Wyoming - 0.6%

Sweetwater County Solid Waste Disposal
Revenue Refunding Bonds (AMT),
FMC Corp. Project,

5.60%, 12/1/35		2,000		1,969


Total Municipal Bonds

(Cost $330,111)				328,045

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 37 TAX-EXEMPT FIXED INCOME FUNDS

tax-exempt fixed income funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

HIGH YIELD MUNICIPAL FUND (continued)



	NUMBER		VALUE
	OF SHARES		(000S)
INVESTMENT COMPANY - 3.9%


AIM Tax-Free Cash Reserve Portfolio		13,777,143		$13,777


Total Investment Company


(Cost $13,777)				13,777


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 2.6%

Clarksville Tennessee Public Building
Authority Revenue VRDB, Pooled
Financing - Tennessee Municipal Bond
Fund (Bank of America LOC),

4.10%, 10/1/07		$865		865

4.10%, 10/1/07		400		400

Connecticut State Health & Educational
Facility Authority Revenue VRDB,
Series Y-2, Yale University,

4.00%, 10/1/07		490		490

Kansas Development Finance Authority
Revenue VRDB, Series BB,
VLG Shalom Obligation Group
(Sovereign Bank FSB LOC),

3.87%, 10/4/07		1,000		1,000

Las Vegas Valley Water District G.O.
Limited Adjustable Bonds, Series B,
Water Improvement,

4.05%, 10/1/07		700		700

Lower Neches Valley Authority Industrial
Development Corp. Exempt Facilities
Revenue Refunding VRDB, Series A,
Exxonmobil Project,

3.93%, 10/1/07		2,900		2,900

Mississippi Medical Center Educational
Building Corp. Revenue VRDB, Adult
Hospital Project (AMBAC Insured),

3.86%, 10/4/07		2,180		2,180

Texas Water Development Board
Revenue Refunding VRDB, Sub Lien
Series A, State Revolving,

4.00%, 10/1/07		600		600


Total Short-Term Investments


(Cost $9,135)				9,135



Total Investments - 99.4%


(Cost $353,023)				350,957


Other Assets less Liabilities - 0.6%				2,116


NET ASSETS - 100.0%				$353,073

(1) When-Issued Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the High Yield Municipal Fund were:



INDUSTRY SECTOR	% OF INVESTMENTS

Development		23.1	%

General		7.4

Medical		22.9

Pollution		9.7

All other sectors less than 5%		36.9


Total		100.0	%

At September 30, 2007, the credit quality distribution for the High Yield Municipal Fund as a percentage of investments including cash was:


QUALITY DISTRIBUTION *	%

AAA		8.5	%

AA		0.5

A		11.2

BBB		33.5

BB		4.5

B		2.4

Not Rated		33.8

Cash and Equivalents		5.6


Total		100.0	%

* Standard & Poor’s Rating Services

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 38 NORTHERN FUNDS SEMIANNUAL REPORT

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS		SEPTEMBER 30, 2007 (UNAUDITED)

INTERMEDIATE TAX - EXEMPT FUND



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5%


Alabama - 0.8%

Alabama Agricultural & Mechanical
University Revenue Refunding Bonds,
Capital Improvement,
(AMBAC Insured),

5.00%, 11/1/22		$5,000		$5,273



Arizona - 0.8%

Phoenix Civic Improvement Corp. Transit
Excise TRB, (AMBAC Insured),
Light Rail Project,

5.00%, 7/1/17		5,000		5,362



California - 9.3%
Anaheim PFA Revenue Bonds, Electric
System Distributing Facilities
(MBIA Insured), Prerefunded,

5.00%, 10/1/08		2,000		2,051

Bay Area Governments Association
Infrastructure Financing Authority
Revenue Bonds, Payment Acceleration
Notes (FGIC Insured),

5.00%, 8/1/17		5,000		5,281

5.00%, 8/1/17		5,000		5,372

Bay Area Governments Association
Infrastructure Financing Authority
Revenue Bonds, Payment Acceleration
Notes (XLCA Insured),

5.00%, 8/1/13		5,000		5,191

California State Economic Recovery G.O.
Unlimited Bonds, Series A
(FGIC-TCRS Insured),

5.00%, 7/1/17		5,000		5,251

California State G.O. Unlimited Bonds,

5.25%, 2/1/25		3,500		3,679

5.75%, 5/1/30		135		143

California State G.O. Unlimited Bonds
(AMBAC Insured),

5.00%, 10/1/18		235		238

California State G.O. Unlimited Bonds,
Prerefunded,

5.75%, 5/1/10		390		416

5.75%, 5/1/10		50		53

California State G.O. Unlimited Bonds
(AMBAC Insured), Prerefunded,

5.00%, 10/1/07		2,620		2,646

5.00%, 10/1/07		255		258

California State G.O. Unlimited Refunding
Bonds (MBIA Insured), ⁽¹⁾

4.25%, 8/1/33		5,000		4,616



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED


California - 9.3% – (continued)

Colton Joint Unified School District G.O.
Unlimited Bonds, Series A
(FGIC Insured),

5.38%, 8/1/26		$2,500		$2,682

Golden State Tobacco Securitization
Corp. Tobacco Settlement Revenue
Bonds, Series A, Enhanced Asset
Backed (AMBAC Insured),

5.00%, 6/1/21		3,000		3,101

Long Beach Bond Finance Authority
Natural Gas Purpose Revenue Bonds,
Series A, ⁽¹⁾

5.50%, 11/15/37		2,500		2,625

Los Angeles Unified School District G.O.
Unlimited Bonds, Series A
(FSA Insured), Prerefunded,

5.25%, 7/1/13		10,000		10,894

Menlo Park G.O. Unlimited Bonds,

5.25%, 8/1/27		1,000		1,059

Moreland School District G.O. Unlimited
Bonds, Series C, Election of 2002
(FGIC Insured),

0.00%, 8/1/29		3,500		1,143

San Mateo Union High School District
COP Convertible Capital Appreciation,
Series B, Phase I Projects
(AMBAC Insured),

0.00%, 12/15/43		7,370		4,091

University of California Revenue Bonds,
Series Q (FSA Insured), Multiple
Purpose Projects, Prerefunded,

5.00%, 9/1/11		1,000		1,065



				61,855



Colorado - 1.1%

Metro Wastewater Reclamation District
Gross Revenue Refunding Bonds,
Sewer Project,

5.45%, 4/1/12		2,000		2,018

Regional Transportation District Sales Tax
Revenue Bonds, Series A, Fastracks
Project (AMBAC Insured),
Prerefunded,

5.00%, 11/1/16		5,000		5,451



				7,469

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 39 TAX-EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX - EXEMPT FUND (continued)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED


Connecticut - 0.6%

Connecticut State Refunding G.O.
Unlimited, Series C,

5.00%, 6/1/15		$3,000		$3,257

Connecticut State Special Obligation Rate
Reduction Revenue Bonds, Series A,

5.00%, 6/30/09		1,000		1,026



				4,283



District of Columbia - 1.2%

District of Columbia Revenue Bonds,
Gains-Georgetown University
(AMBAC Insured),

0.00%, 4/1/40		14,000		8,158



Florida - 5.1%

Crossings at Fleming Island Community
Development District Special
Assessment Revenue Refunding
Bonds, Series C,

7.05%, 5/1/15		300		312

Dade County G.O. Unlimited Refunding
Bonds (MBIA Insured),

6.50%, 10/1/10		400		433

Florida State Department Environmental
Protection Revenue Bonds, Series B,
(MBIA Insured),

5.25%, 7/1/16		2,380		2,560

Gainesville Utility Systems Revenue
Bonds, Series A,

5.25%, 10/1/15		1,065		1,151

5.25%, 10/1/16		1,120		1,211

JEA St. Johns River Revenue Refunding
Bonds, Series 17-2,

5.25%, 10/1/13		2,000		2,116

Lee County Transportation Revenue
Refunding Bonds, Series A
(AMBAC Insured),

5.50%, 10/1/14		900		961

Marco Island Utility System Revenue
Bonds (MBIA Insured),

5.25%, 10/1/15		2,520		2,711

Miami-Dade County Aviation Revenue
Bonds, Series A (AMT) (FSA Insured),

5.00%, 10/1/33		5,000		5,015

Miami-Dade County Aviation Revenue
Refunding Bonds, Series D (AMT),
Miami Intl. Airport (MBIA Insured),

5.25%, 10/1/18		1,645		1,721



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED


Florida - 5.1% – (continued)
Miami-Dade County Expressway
Authority Toll System Revenue Bonds,
Series B (FGIC Insured),

5.25%, 7/1/25		$2,525		$2,688

Miami-Dade County School District G.O.
Unlimited Refunding Bonds
(FSA Insured),

5.38%, 8/1/14		1,000		1,100

Osceola County Infrastructure Sales
Surtax Revenue Bonds
(AMBAC Insured), Prerefunded,

5.38%, 10/1/12		1,000		1,082

Palm Beach County Criminal Justice
Facilities Revenue Bonds
(FGIC Insured),

5.75%, 6/1/13		1,550		1,712

Palm Beach County G.O. Unlimited
Refunding Bonds, Series B,

6.50%, 7/1/10		250		269

Palm Coast Utility System Revenue Bonds
(MBIA Insured),

5.25%, 10/1/21		1,000		1,069

South Florida Water Management District
Special Obligation Limited Acquisition
Revenue Refunding Bonds
(AMBAC Insured),

5.25%, 10/1/13		1,250		1,358

Sunrise Utility System Revenue Refunding
Bonds, Series A (AMBAC Insured),

5.50%, 10/1/15		5,950		6,504



				33,973



Georgia - 4.2%

Fulton County Facilities Corp. COP, Fulton
County Public Purpose Project
(AMBAC Insured),

5.50%, 11/1/18		6,500		6,889

Georgia State G.O. Unlimited, Series E,

5.00%, 8/1/22		5,000		5,357

Georgia State Refunding G.O. Unlimited
Bonds, Series B,

5.00%, 7/1/18		10,000		10,702

Main Street Natural Gas Project, Inc.,
Series A, ⁽¹⁾

5.50%, 9/15/23		4,000		4,241

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 40 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED


Georgia - 4.2% – (continued)

Milledgeville-Baldwin County
Development Authority Revenue
Bonds, College & State University
Funding, Prerefunded,

5.50%, 9/1/14		$1,000		$1,117



				28,306



Illinois - 5.4%

Chicago Board of Education G.O.
Unlimited Refunding, Series A
(MBIA Insured),

5.00%, 12/1/19		5,000		5,413

Chicago O’Hare International Airport
Revenue Bonds, Series A, Passenger
Facilities Charge (AMBAC Insured),

5.60%, 1/1/09		5,000		5,024

Chicago Wastewater Transmission
Second Lien Revenue Bonds
(MBIA Insured), Prerefunded,

6.00%, 1/1/10		1,000		1,062

6.00%, 1/1/10		1,000		1,062

Cook County Capital Improvement G.O.
Unlimited Bonds, Series C
(AMBAC Insured),

5.00%, 11/15/25		2,500		2,591

Illinois Development Finance Authority
Economic Development Revenue
Bonds, Latin School of Chicago Project,
Prerefunded,

5.60%, 8/1/08		500		508

Illinois Development Finance Authority
Revenue Bonds, Series B, Midwestern
University Project, Prerefunded,

5.75%, 5/15/11		500		541

Illinois Educational Facilities Authority
Adjustable Revenue Bonds, Field
Museum of Natural History Project,

4.60%, Mandatory Put 11/1/15		4,250		4,312

Illinois Educational Facilities Authority
Student Housing Revenue Bonds,
Educational Advancement Fund
University Center Project, Prerefunded,

6.00%, 5/1/12		750		832

Illinois Health Facilities Authority
Revenue Bonds, Riverside Health
System, Prerefunded,

6.00%, 11/15/12		1,000		1,111



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED


Illinois - 5.4% – (continued)

Illinois State G.O. Unlimited Bonds,
1st Series (MBIA Insured),

5.70%, 6/1/19		$4,000		$4,201

Metropolitan Pier & Exposition Authority
TRB, Series A, McCormick Place
Expansion (MBIA Insured),

5.25%, 6/15/42		9,045		9,388



				36,045



Indiana - 0.8%

Indiana Municipal Power Agency Power
Supply Systems Revenue Bonds,
Series A (MBIA Insured),

5.00%, 1/1/42		5,000		5,119



Iowa - 1.4%

Iowa Finance Authority Hospital Facility
Revenue Bonds, Mercy Medical Center
Project (FSA Insured), Prerefunded,

6.00%, 8/15/09		3,610		3,805

Tobacco Settlement Authority of Iowa
Tobacco Settlement Revenue Bonds,
Series B, Asset Backed, Prerefunded,

5.60%, 6/1/11		5,000		5,381



				9,186



Kansas - 1.1%

Wichita Hospital Improvement Facilities
Revenue Refunding Bonds, Series III,

5.25%, 11/15/15		1,385		1,450

6.25%, 11/15/18		1,600		1,725

Wichita Water & Sewer Utility Revenue
Bonds (FGIC Insured),

5.25%, 10/1/18		4,000		4,284



				7,459



Maryland - 1.9%

Maryland State G.O. Unlimited Bonds,
State and Local Facilities, 2nd Series,

5.00%, 8/1/10		5,000		5,207

Maryland State G.O. Unlimited Refunding
Bonds,

5.00%, 2/1/09		1,000		1,020

Montgomery Improvement G.O. Unlimited
Bonds, Series A, Consolidated Public
Improvement,

5.00%, 5/1/18		5,700		6,210



				12,437

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 41 TAX-EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX - EXEMPT FUND (continued)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED


Massachusetts - 7.8%

Lawrence G.O. Limited Bonds (AMBAC
Insured - State Aid Withholding),
Prerefunded,

5.50%, 2/1/11		$2,625		$2,786

Massachusetts Health & Educational
Facilities Authority Revenue Bonds,
Series N, Harvard University
(G.O. of Institution Insured),

6.25%, 4/1/20		11,050		13,442

Massachusetts School Building Authority
Dedicated Sales Tax Revenue Bonds,
Series A (AMBAC Insured),

5.00%, 8/15/19		5,000		5,377

Massachusetts State G.O. Limited Bonds,
Series D (FGIC-TCRS Insured),

5.50%, 8/1/19		10,000		11,316

Massachusetts State Health &
Educational Facilities Authority
Revenue Bonds, Series B,
Partners Healthcare System,

5.25%, 7/1/12		3,450		3,562

Massachusetts State Housing Finance
Agency Revenue Bonds, Series III
(AMT), Single Family,

3.45%, 12/1/09		1,050		1,044

Massachusetts State Water Pollution
Abatement Revenue Refunding,
Series A, Pool PG,

5.25%, 8/1/17		10,115		11,246

Massachusetts State Water Resources
Authority Revenue Refunding Bonds,
Series D (MBIA Insured G.O. of
Authority),

5.00%, 8/1/24		3,200		3,260



				52,033



Michigan - 0.4%

Wayne Charter County Airport Revenue
Bonds, Series B (MBIA Insured),

4.88%, 12/1/23		2,500		2,533



Minnesota - 1.7%

Minnesota Public Facilities Authority
Water PCR Refunding Bonds, Series B,

5.00%, 3/1/18		5,000		5,441

Minnesota State G.O. Unlimited,

5.00%, 10/1/09		5,000		5,149



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED


Minnesota - 1.7% – (continued)

Minnesota State Housing Finance
Agency SFM Revenue Bonds, Series A
(MBIA Insured),

5.35%, 7/1/17		$470		$483



				11,073



Missouri - 0.4%

Metro Development Agency District
Revenue Bonds, Series B, Metrolink
Cross Country Project (FSA Insured),

5.25%, 10/1/17		2,620		2,834



Nevada - 0.9%

Clark County IDR Bonds, Series A (AMT),
Southwest Gas Corp. Project
(AMBAC Insured),

5.25%, 7/1/34		5,000		5,088

North Las Vegas G.O. Limited Bonds,
Wastewater Reclamation System
(MBIA Insured),

4.50%, 10/1/36		1,250		1,209



				6,297



New Jersey - 3.1%

New Jersey Economic Development
Authority Revenue Bonds,
Cigarette Tax,

5.63%, 6/15/19		3,985		4,049

New Jersey Health Care Facilities
Financing Authority Revenue Bonds,
Atlantic City Medical, Prerefunded,

6.25%, 7/1/12		445		496

New Jersey Health Care Facilities
Financing Authority Revenue Bonds,
Unrefunded - Atlantic City Medical,

6.25%, 7/1/17		555		601

New Jersey Transportation Trust Fund
Authority Revenue Bonds, Series A,
Transportation System, (FSA Insured),

4.00%, 12/15/17		5,000		4,967

4.25%, 12/15/22		5,000		4,917

New Jersey Transportation Trust Fund
Authority Revenue Bonds, Series A,
Transportation System,
(FSA-CR Insured),

5.25%, 12/15/20		5,000		5,544



				20,574

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 42 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED


New Mexico - 0.8%

Santa Fe City Gross Receipts TRB,

6.00%, 6/1/11		$5,250		$5,333



New York - 16.9%

Metropolitan Transportation Authority
Dedicated Tax Fund Revenue Bonds,
Series A (FGIC Insured), Prerefunded,

6.13%, 4/1/10		3,815		4,054

Metropolitan Transportation Authority
Revenue Bonds, Series A
(FGIC Insured),

4.75%, 11/15/37		3,880		3,898

Metropolitan Transportation Authority
Revenue Bonds, Series B
(MBIA Insured),

5.25%, 11/15/20		10,000		11,115

New York City G.O. Unlimited Bonds,
Series A,

6.00%, 5/15/19		30		32

New York City G.O. Unlimited Bonds,
Series A, Prerefunded,

6.00%, 5/15/10		305		327

New York City Transitional Finance
Authority Building Aid Revenue Bonds,
Series S-2 (FSA State Aid Withholding
Insured),

5.00%, 1/15/18		5,000		5,393

New York G.O. Unlimited, Subseries C1, ⁽¹⁾

5.00%, 10/1/20		5,000		5,295

New York Liberty Development Corp.
Revenue Bonds, Goldman Sachs
Headquarters,

5.50%, 10/1/37		5,000		5,571

New York Local Government Assistance
Corp. Revenue Refunding Bonds,
Series C (MBIA-IBC G.O. of Corp.
Insured),

5.50%, 4/1/17		2,500		2,792

New York Municipal Bond Bank Agency
Revenue Bonds, Series C
(State-Aid Withholding),

5.25%, 6/1/17		10,000		10,712

New York State Environmental Facilities
Corp. Clean Water & Drinking Revenue
Bonds, Series A, Municipal Water
Finance Authority,

5.00%, 6/15/20		5,245		5,596



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED


New York - 16.9% – (continued)

New York State Environmental Facilities
Corp. Clean Water & Drinking Revenue
Bonds, Series C, Revolving Funds -
Municipal Water Finance,

5.00%, 6/15/25		$5,000		$5,227

New York State Environmental Facilities
Corp. Revenue Bonds, Series A, State
Clean Water & Drinking Revolving
Funds,

6.00%, 6/15/16		1,330		1,383

New York State Environmental Facilities
Corp. Revenue Bonds, Series A, State
Clean Water & Drinking Revolving
Funds, Prerefunded,

6.00%, 6/15/09		170		177

New York State Thruway Authority
Revenue Bonds, Series A, Highway and
Bridge Trust Fund (FSA Insured),
Prerefunded,

6.00%, 4/1/10		1,000		1,069

New York State Thruway Authority State
Personal Income Tax Revenue Bonds,
Series A,
5.25%, 3/15/21		8,000		8,746

New York State Urban Development Corp.
Personal Income Tax Revenue Bonds,
State Facilities, Series A, Prerefunded,

5.13%, 3/15/12		5,000		5,331

New York State Urban Development Corp.
Subordinate Lien Revenue Bonds
(G.O. of Corp.),

5.50%, 7/1/16		1,250		1,264

Sales Tax Asset Receivables Corp.
Revenue Bonds, Series A
(MBIA Insured),

5.25%, 10/15/19		5,100		5,540

Tobacco Settlement Financing Corp.
Revenue Bonds, Series B-1C,

5.25%, 6/1/13		5,000		5,046

5.50%, 6/1/15		5,000		5,208

5.50%, 6/1/18		5,000		5,319

5.50%, 6/1/19		2,500		2,678

5.50%, 6/1/20		5,000		5,343

Triborough Bridge & Tunnel Authority
Revenue Refunding Bonds
(MBIA Insured),

5.50%, 11/15/19		5,000		5,674



				112,790

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 43 TAX-EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX - EXEMPT FUND (continued)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED

North Carolina - 2.7%

North Carolina Eastern Municipal Power
Agency Power System Revenue
Refunding Bonds, Series A,

5.20%, 1/1/10		$2,505		$2,571

North Carolina State G.O. Unlimited
Refunding Bonds, Series B,

5.00%, 4/1/11		10,000		10,495

North Carolina State G.O. Unlimited
Refunding Bonds, Series E,

5.00%, 2/1/10		5,000		5,170



				18,236



Ohio - 0.8%

Akron G.O. Limited Bonds, Prerefunded,

5.75%, 12/1/10		1,000		1,075

Cleveland Airport Systems Revenue
Bonds, Series A (AMBAC Insured),

5.00%, 1/1/24		2,500		2,609

Ohio Housing Finance Agency Mortgage
Revenue Bonds, Series C (AMT),
Residential Mortgage-Backed
Securities (Colld. by GNMA Securities),

5.15%, 3/1/13		630		645

River Valley Local School District G.O.
Unlimited Bonds, School Facilities
Construction & Improvement
(FSA Insured),

5.25%, 11/1/20		1,235		1,302



				5,631



Oregon - 0.5%

Portland City Airport Way Urban Renewal
& Redevelopment Tax Increment
Bonds, Series A (AMBAC Insured),
Prerefunded,

6.00%, 6/15/10		3,450		3,699



Pennsylvania - 3.6%

Pennsylvania Economic Development
Financing Authority Exempt Facilities
Revenue Bonds, Series A (AMT),
Amtrak Project,

6.13%, 11/1/21		1,200		1,259

Pennsylvania Housing Finance
Agency SFM Revenue Bonds,
Series 72A (AMT),

4.80%, 4/1/12		750		766

Pennsylvania State G.O. Unlimited Bonds,
Second Series (FGIC Insured),

5.00%, 7/1/09		5,000		5,130



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 87.5% – CONTINUED

Pennsylvania - 3.6% – (continued)

Pennsylvania State G.O. Unlimited,
Second Series,

5.00%, 1/1/19		$5,000		$5,330

Pennsylvania State Higher Education
Revenue Bonds, Capital Acquisition
(MBIA Insured - G.O. of Agency),
Prerefunded,

6.00%, 12/15/10		1,815		1,949

6.13%, 12/15/10		1,925		2,075

Pennsylvania State Higher Educational
Facilities Authority Revenue Bonds,
Series A, UPMC Health System,

6.00%, 1/15/22		2,000		2,142

Pennsylvania State Turnpike Commission
Oil Franchise Refunding TRB, Series A
(AMBAC Insured),

5.00%, 12/1/19		5,075		5,426



				24,077



Puerto Rico - 2.7%

Puerto Rico Commonwealth Highway &
Transportation Authority
Transportation Revenue Bonds,
Series D, Prerefunded,

5.25%, 7/1/12		10,000		10,729

Puerto Rico Infrastructure Financing
Authority Special Tax Refunding Bonds,
Series C (AMBAC Insured),

5.50%, 7/1/24		5,500		6,246

Puerto Rico Municipal Financing Agency
G.O. Unlimited Bonds, Series A
(FSA Insured), Prerefunded,

6.00%, 8/1/09		1,000		1,055



				18,030



South Carolina - 0.6%

Charleston Educational Excellence
Finance Corp. Revenue Bonds,
Charleston County School District,

5.25%, 12/1/19		3,500		3,727



Tennessee - 0.3%

Memphis-Shelby County Airport Authority
Revenue Bonds, Series D (AMT)
(AMBAC Insured),

6.25%, 3/1/15		2,000		2,117



Texas - 5.1%

Austin City Utilities System Revenue
Refunding Bonds (FSA Insured),

5.13%, 11/15/17		3,000		3,006

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 44 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 87.5% – CONTINUED

Texas - 5.1% – (continued)

Ennis Independent School District Capital
Appreciation G.O. Unlimited Refunding
Bonds (PSF Gtd.), Prerefunded,

0.00%, 8/15/10		$2,225		$705

Ennis Independent School District Capital
Appreciation G.O. Unlimited Refunding
Bonds (PSF Gtd.),

0.00%, 8/15/26		1,140		356

Frisco Independent School District
Building G.O. Unlimited Bonds
(PSF Gtd.),
6.50%, 8/15/14		1,535		1,725

Houston Water & Sewer System Revenue
Refunding Bonds, Series D, Junior Lien
(FGIC Insured), Prerefunded,

5.00%, 12/1/07		3,500		3,577

Lewisville Independent School District
G.O. Unlimited Refunding Bonds
(PSF Gtd.),

5.25%, 8/15/18		5,000		5,449

Panhandle Regional Housing Finance
Agency Revenue Bonds, Series A
(Colld. by GNMA Securities),

6.50%, 7/20/21		500		541

Sam Rayburn Municipal Power Agency
Revenue Refunding Bonds,

6.00%, 10/1/16		1,000		1,045

6.00%, 10/1/21		1,250		1,299

San Antonio Electric & Gas Revenue
Bonds, Series A,

5.25%, 2/1/16		6,490		6,687

San Antonio Electric & Gas Revenue
Bonds, Series A, Prerefunded,

5.25%, 2/1/09		3,510		3,624

5.25%, 2/1/09		875		903

Texas Municipal Power Agency
Revenue Refunding Bonds,
Sub Lien (FGIC Insured),

4.40%, 9/1/11		5,000		5,003



				33,920



Virgin Islands - 0.1%

Virgin Islands PFA Revenue Bonds,
Series A, Gross Receipts Tax Lien Note,

5.63%, 10/1/10		700		713


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 87.5% – CONTINUED

Virginia - 1.9%

Virginia Housing Development Authority
Commonwealth Mortgage Revenue
Bonds (AMT), Series C,

4.50%, 7/1/15		$3,000		$3,022

Virginia Housing Development Authority
Commonwealth Mortgage Revenue
Bonds, Series E - Subseries E-1 (AMT)
(G.O. of Authority Insured),

4.00%, 4/1/10		5,100		5,151

Virginia Housing Development Authority
Commonwealth Mortgage Revenue
Bonds, Series F - Subseries F-1
(G.O. of Authority Insured),

4.00%, 4/1/12		2,000		2,032

Virginia Housing Development Authority
Commonwealth Mortgage Revenue
Bonds, Subseries D-3 (AMT)
(G.O. of Authority Insured),

4.55%, 4/1/23		2,500		2,407



				12,612



Washington - 3.5%

King County School District No. 1 Seattle
G.O. Limited Bonds, Series A
(School Board Guaranty Insured),

4.00%, 6/1/11		5,000		5,073

Snohomish County School District No. 15
Edmonds G.O. Unlimited Refunding
Bonds, Series B (FSA School Board
Guaranty Insured),

5.00%, 12/1/07		1,000		1,003

Washington State G.O. Unlimited Bonds,
Series C (AMBAC Insured),

5.00%, 1/1/18		6,490		6,977

Washington State G.O. Unlimited Bonds,
Series S-4,

5.75%, 1/1/12		10,000		10,440



				23,493


Total Municipal Bonds


(Cost $577,111)				584,647

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 45 TAX-EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX - EXEMPT FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)

INVESTMENT COMPANIES - 0.2%


AIM Tax-Free Cash Reserve Portfolio		21,693		$22

Dreyfus Tax-Exempt Cash
Management Fund		1,321,732		1,322



Total Investment Companies

(Cost $1,344)				1,344


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 12.0%

California Statewide Communities
Development Authority Revenue VRDB,
University of San Diego
(BNP Paribas LOC),

3.78%, 10/3/07		$2,200		2,200

Collier County Health Facilities Authority
Revenue VRDB, Cleveland Health
Clinic, Series C-1
(JP Morgan Chase & Co. LOC),

4.04%, 10/1/07		1,600		1,600

Connecticut State Health & Educational
Facility Authority Revenue VRDB,
Series V1, Yale University,

4.00%, 10/1/07		1,000		1,000

Highlands County Health Facilities
Authority Revenue VRDB, Series A,
Adventist/Sunbelt (Suntrust Bank LOC),

3.86%, 10/4/07		100		100

Indiana Health & Educational Facilities
Financing Authority Hospital
Revenue VRDB Adjustable,
Harrison County Hospital Project
(JP Morgan Chase Bank LOC),

4.05%, 10/1/07		5,200		5,200

Jacksonville Health Facilities Authority
Hospital Revenue VRDB, Baptist
Medical Center Project
(Wachovia Bank N.A. LOC),

4.00%, 10/1/07		600		600

Las Vegas Valley Water District G.O.
Limited Adjustable Bonds, Series B,
Water Improvement,

4.05%, 10/1/07		1,700		1,700

Lee County Housing Finance Authority
Multifamily Housing Revenue
Refunding VRDB Adjustable, Series A,
Forestwood Apartments Project A
(FNMA Insured),

3.84%, 10/3/07		300		300


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

SHORT-TERM INVESTMENTS - 12.0% – CONTINUED


Los Angeles Department of Water &
Power Waterworks Revenue VRDB,
Subseries B-1,

3.78%, 10/4/07		$4,050		$4,050

Louisiana Offshore Terminal Authority
Deepwater Port Revenue Refunding
VRDB, Series A, Loop LLC Project
(SunTrust Bank LOC),

4.02%, 10/1/07		200		200

Massachusetts State Health &
Educational Facilities Authority
Revenue VRDB, Series GG-1,
Harvard University,

3.82%, 10/4/07		5,000		5,000

Michigan State Hospital Finance
Authority Revenue Refunding VRDB,
Series A, Crittenton Hospital
(Comerica Bank LOC),

4.08%, 10/1/07		600		600

Mississippi Medical Center Educational
Building Corp. Revenue VRDB, Adult
Hospital Project (AMBAC Insured),

3.86%, 10/4/07		835		835

Missouri Development Finance Board
Cultural Facilities Revenue VRDB,
Series B, Nelson Gallery Foundation
(MBIA Insured),

4.04%, 10/1/07		900		900

New Jersey Economic Development
Authority Revenue Refunding VRDB,
Series B, Cedar Crest Village, Inc.
(Sovereign Bank FSB LOC),

3.81%, 10/4/07		500		500

Ohio State Air Quality Development
Authority Revenue Refunding VRDB,
Series A, Polution Control - Firstenergy
(KeyBank N.A. LOC),

3.85%, 10/1/07		10,000		10,000

Palm Beach County Health Facilities
Authority Revenue VRDB, Bethesda
Healthcare Systems Project
(Suntrust Bank LOC),

4.02%, 10/1/07		4,100		4,100

Pennsylvania Turnpike Commission
Turnpike Revenue VRDB, Series C
(AMBAC Insured),

3.86%, 10/4/07		10,000		10,000

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 46 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

SHORT-TERM INVESTMENTS - 12.0% – CONTINUED

Pima County IDA Revenue VRDB,
Series A, Senior Living Facilities -
La Posada (LaSalle Bank N.A. LOC),

3.86%, 10/4/07		$5,300		$5,300

Sublette County PCR Floating Rate
Revenue VRDB, Exxon Project,

3.94%, 10/1/07		2,400		2,400

University of Kansas Hospital Authority
Health Facilities Revenue VRDB,
Kansas University Health System
(G.O. of Authority Insured)
(Harris Trust & Savings Bank LOC),

4.05%, 10/1/07		975		975

Utah Transit Authority Sales Tax
Revenue VRDB, Subseries B
(Fortis Bank S.A./N.V. LOC),

4.00%, 10/1/07		3,800		3,800

Valdez Marine Term Revenue
Refunding VRDB, Series B,
Exxon Pipeline Co. Project,

3.93%, 10/1/07		1,100		1,100

Valdez Marine Term Revenue Refunding
VRDB, Series B, BP Pipelines Project,

4.05%, 10/1/07		12,410		12,410

Wisconsin Health & Educational Facilities
Authority Adjustable Revenue VRDB,
Meriter Hospital, Inc. Project
(M&I Marshall Ilsley LOC),

4.10%, 10/1/07		1,200		1,200

Wisconsin Health & Educational
Facilities Authority Adjustable
Revenue VRDB, Saint Mary’s School
(M&I Marshall and Ilsley LOC),

3.94%, 10/4/07		1,830		1,830

Wisconsin State Health & Educational
Facilities Authority Revenue VRDB,
Series C, Froedtert & Community
Health (AMBAC Insured),

3.90%, 10/4/07		2,100		2,100


Total Short-Term Investments


(Cost $80,000)				80,000



Total Investments - 99.7%


(Cost $658,455)				665,991
Other Assets less Liabilities - 0.3%				1,941


NET ASSETS - 100.0%				$667,932

(1) When-Issued Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Intermediate Tax-Exempt Fund were:



INDUSTRY SECTOR	% OF INVESTMENTS

Development		7.7	%

General		6.2

General Obligation		19.3

Higher Education		6.2

Medical		5.1

School District		5.5

Transportation		13.4

Utilities		5.3

Water		5.9

All other sectors less than 5%		25.4


Total		100.0	%

At September 30, 2007, the credit quality distribution for the Intermediate Tax-Exempt Fund as a percentage of investments including cash was:


QUALITY DISTRIBUTION *	%

AAA		65.1	%

AA		14.5

A		4.6

BBB		3.3

SP1/MIG1		4.9

Cash and Equivalents		7.6


Total		100.0	%

* Standard & Poor’s Rating Services

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 47 TAX-EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS

SHORT - INTERMEDIATE TAX - EXEMPT FUND


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 66.5%

Alabama - 2.8%

Jefferson County Sewer Capital
Improvement Revenue Bonds, Series A
(FGIC Insured), Prerefunded,

5.50%, 2/1/11		$2,000		$2,139



Alaska - 1.0%

Alaska Municipal Bond Bank Authority
Revenue Bonds, Series C
(MBIA Insured), Prerefunded,

5.75%, 9/15/10		750		796



Arizona - 4.3%

Arizona School Facilities Board Revenue
Bonds, State School Improvement,
Prerefunded,

5.25%, 7/1/12		1,125		1,206

Phoenix Civic Improvement Corp. Transit
Excise TRB, (AMBAC Insured),
Light Rail Project

5.00%, 7/1/17		2,000		2,145



				3,351



California - 2.0%

Long Beach Bond Finance Authority
Natural Gas Purpose Revenue Bonds,
Series A, ⁽¹⁾

5.25%, 11/15/19		500		525

5.25%, 11/15/20		1,000		1,047



				1,572



Colorado - 5.5%

Boulder Valley School District No. Re-2
Refunding G.O. Unlimited Bonds, Series
B (State Aid Withholding), ⁽¹⁾

5.00%, 12/1/09		1,000		1,032

Colorado Department of Transportation
Revenue Anticipation Notes, Series A
(MBIA Insured),

5.50%, 6/15/12		1,000		1,083

Regional Transportation District Sales Tax
Revenue Bonds, Series A, Fastracks
Project (AMBAC Insured),
Prerefunded, ⁽¹⁾

5.00%, 11/1/16		2,000		2,180



				4,295



Florida - 2.1%

Polk County Transportation Improvement
Revenue Bonds (FSA Insured),
Prerefunded,

5.25%, 12/1/10		1,000		1,060


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 66.5% – CONTINUED

Florida - 2.1% – (continued)
Tallahassee Blueprint 2000
Intergovernmental Agency
Revenue Bonds (MBIA Insured),

5.00%, 10/1/14		$500		$538



				1,598



Georgia - 2.7%

De Kalb County School District G.O.
Unlimited (State Aid Withholding),

5.00%, 2/1/11		1,000		1,046

Gwinnett County Water & Sewerage
Authority Revenue Bonds
(County Gtd.), Prerefunded,

5.00%, 8/1/12		1,000		1,063



				2,109



Illinois - 3.6%

Illinois State G.O. Unlimited Bonds, First
Series (FGIC Insured), Prerefunded,

6.00%, 1/1/10		1,600		1,685

Kendall-Grundy Etc. Counties High School
District No. 18 G.O. Unlimited Bonds,
Series B, Kendall Etc. USD 308
(FGIC Insured), Prerefunded,

5.25%, 10/1/12		1,000		1,076



				2,761



Indiana - 0.7%

Mount Vernon of Posey County Multi-
School Building Corp. Revenue Bonds,
First Mortgage (AMBAC Insured-
State Aid Withholding),

4.00%, 1/15/13		500		508



Kentucky - 1.4%

Kentucky State Property & Buildings
Commission Revenue Bonds, Series A
(MBIA Insured), Project #66,
Prerefunded,

5.75%, 5/1/10		1,000		1,054



Louisiana - 3.0%

Louisiana State G.O. Unlimited Bonds,
Series A (FGIC Insured), Prerefunded,

5.25%, 11/15/10		1,250		1,313

5.00%, 4/1/12		1,000		1,058


				2,371

Maryland - 1.4%

Montgomery County Public Improvement
G.O. Unlimited Bonds, Series A,

5.00%, 5/1/12		1,000		1,063

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 48 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 66.5% – CONTINUED

Michigan - 2.7%

Detroit Water Supply Systems Revenue
Bonds, Senior Lien, Series A
(MBIA Insured), Prerefunded,

5.25%, 7/1/13		$1,000		$1,084

East Lansing School District G.O.
Unlimited Bonds, School Building &
Site (Qualified-School Bond Loan Fund
Insured), Prerefunded,

5.50%, 5/1/10		1,000		1,049



				2,133



Minnesota - 4.0%

Minneapolis-St Paul Metropolitan
Airports Commission Airport Revenue
Refunding Bonds, Subseries B (FGIC
Insured),

5.00%, 1/1/20		1,000		1,058

Minnesota Public Facilities Authority
Water Pollution Control Revenue
Bonds, Series A,

5.00%, 3/1/12		1,000		1,058

Minnesota State G.O. Unlimited,

5.00%, 8/1/09		1,000		1,028



				3,144



New Jersey - 3.3%

New Jersey State G.O. Unlimited
Refunding Bonds, Series J (FGIC-TCRS
Insured),

5.00%, 7/15/11		1,000		1,052

New Jersey Transportation Trust Fund
Authority Revenue Bonds,
Transportation System, Series A (FSA
Insured),

3.75%, 12/15/12		1,500		1,500



				2,552



New Mexico - 1.7%

Albuquerque Water and Sewer System
Improvement Revenue Refunding
Bonds, Series A,

5.25%, 7/1/09		1,275		1,313



New York - 1.4%

Triborough Bridge & Tunnel Authority
Revenue Bonds, Series A, General
Purpose (G.O. of Authority Insured),
Prerefunded,

5.00%, 1/1/12		1,055		1,117


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 66.5% – CONTINUED

Ohio - 2.7%

Chillicothe City School District G.O.
Unlimited Bonds, School Improvement
(FGIC Insured), Prerefunded,

5.00%, 12/1/14		$1,000		$1,084

Ohio State Building Authority Revenue
Refunding Bonds, Series A, State
Facilities Administration Building
Project (FSA Insured),

5.00%, 4/1/09		1,000		1,022



				2,106



Oregon - 4.0%

Clackamas County School District
No. 86 G.O. Unlimited Bonds
(School Board Gtd.), Prerefunded,

5.25%, 6/15/10		1,000		1,044

Multnomah Clackamas Counties School
District No. 10JT Gresham-Barlow G.O.
Unlimited Bonds (FSA Insured)
(School Bond Gtd.), Prerefunded,

5.11%, 6/15/11		1,000		1,067

Umatilla County School District No. 8R
Hermiston G.O. Unlimited Bonds
(MBIA Insured), Prerefunded,

5.20%, 6/15/09		1,000		1,028



				3,139



Pennsylvania - 3.9%

Allegheny County Port Authority
Transportation Special Revenue Bonds
(MBIA Insured), Prerefunded,

6.00%, 3/1/09		1,900		1,983

Pennsylvania State G.O. Unlimited,
Third Series,

4.50%, 12/1/12		1,000		1,020



				3,003



South Carolina - 1.3%

South Carolina Transportation
Infrastructure Bank Revenue Bonds,
Series A (AMBAC Insured),
Prerefunded,

5.50%, 10/1/09		1,000		1,048



Tennessee - 1.4%

Putnam County Schools G.O. Unlimited
(FGIC Insured), Prerefunded,

5.88%, 4/1/10		1,000		1,056

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 49 TAX-EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS

SHORT - INTERMEDIATE TAX - EXEMPT FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 66.5% – CONTINUED

Texas - 4.0%

Harris County Revenue Refunding Bonds
Senior Lien, Toll Road (FSA Insured),

5.38%, 8/15/09		$1,000		$1,034

Irving Improvement Refunding
G.O. Limited Bonds,

5.00%, 9/15/11		1,000		1,053

Texas State Transportation Commission,
First Tier, ⁽¹⁾

5.00%, 4/1/09		1,000		1,020



				3,107



Utah - 1.4%

Utah State G.O. Unlimited Refunding
Bonds, Series B,

5.38%, 7/1/12		1,000		1,079



Virginia - 1.4%

Loudoun County G.O. Unlimited Bonds,
Series B, Public Improvement
(State Aid Withholding),

5.00%, 12/1/13		1,000		1,080



Washington - 1.4%

Franklin County Public Utility District NO
001 Electric Revenue Bonds (MBIA
Insured), Prerefunded,

5.63%, 9/1/12		1,000		1,092



Wisconsin - 1.4%

Wisconsin State G.O. Unlimited, Series F
(FSA Insured), Prerefunded,

5.50%, 5/1/12		1,000		1,081


Total Municipal Bonds


(Cost $51,408)				51,667


	NUMBER		VALUE
	OF SHARES		(000S)
INVESTMENT COMPANY - 0.8%
AIM Tax-Free Cash Reserve Portfolio		635,000		635


Total Investment Company


(Cost $635)				635


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

SHORT-TERM INVESTMENTS - 35.4%

Arizona Health Facilities Authority
Revenue VRDB, Banner Healther,
Series A (MBIA Insured),

3.87%, 10/3/07		$300		300


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

SHORT-TERM INVESTMENTS - 35.4% – CONTINUED

Beaver County IDA PCR Refunding VRDB,
Firstenergy Generation
(Barclays Bank PLC LOC),

4.06%, 10/1/07		$1,900		$1,900

Everett Public Facilities District Project
Revenue VRDB,

4.10%, 10/1/07		2,000		2,000

Gainesville Utilities Systems Revenue
VRDB, Series A,

3.88%, 10/3/07		1,100		1,100

Iowa Finance Authority Health Care
Facilities VRDB, Care Initiatives Project
(KBC Bank N.V. LOC),

4.10%, 10/1/07		2,070		2,070

Jackson County PCR Adjustable
Refunding Bonds, Gulf Power Co.
Project,

4.07%, 10/1/07		2,000		2,000

Jacksonville PCR Daily Refunding
Revenue VRDB, Florida Power and
Light Co. Project,

4.04%, 10/1/07		600		600

Metropolitan Transportation Authority
Revenue VRDB, Subseries E-2
(Fortis Bank S.A./N.V. LOC),

3.80%, 10/4/07		1,300		1,300

Michigan State Hospital Finance
Authority Revenue Refunding VRDB,
Series A, Crittenton Hospital (Comerica
Bank LOC),

4.08%, 10/1/07		2,000		2,000

Missouri State Health & Educational
Facilities Authority Educational
Facilities VRDB, Series B, Saint Louis
University,

4.08%, 10/1/07		400		400

Missouri State Health & Educational
Facilities Authority Health Facilities
Revenue VRDB, Series A,
Saint Francis Medical Center
(Bank Of America N.A. LOC),

4.05%, 10/1/07		1,005		1,005

New Jersey Economic Development
Authority Revenue Refunding VRDB,
Series B, Cedar Crest Village, Inc.
(Sovereign Bank FSB LOC),

3.81%, 10/4/07		2,000		2,000

See Notes to the Financial Statements.

TAX-EXEMPT FIXED INCOME FUNDS 50 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

SHORT-TERM INVESTMENTS - 35.4% – CONTINUED

Oregon State Department of
Transportation Highway User Tax
Revenue VRDB,
Sub Lien, Series B1,

3.82%, 10/4/07		$200		$200

Parma Hospital Improvement
Revenue VRDB, Series C, Parma
Community General Hospital
(JP Morgan Chase Bank LOC),

3.88%, 10/4/07		2,000		2,000

Platte County PCR Adjustable Rate
Revenue VRDB, Series A, Tri-State G&T
(National Rural Utilities Finance LOC),

4.05%, 10/1/07		2,000		2,000

Rockford Adjustable Revenue VRDB,
Wesley Willows Obligation
(M&I Marshall Ilsley LOC),

4.03%, 10/1/07		2,000		2,000

Sevier County Public Building Authority
Adjustable Revenue VRDB, Series IV-3,
Local Government Public Improvement
(FSA Insured),

4.10%, 10/1/07		2,000		2,000

University of Kansas Hospital Authority
Health Facilities Revenue VRDB,
Kansas University Health System
(G.O. of Authority Insured)
(Harris Trust & Savings Bank LOC),

4.05%, 10/1/07		2,000		2,000

Wayne Charter County Economic
Development Corp. Revenue VRDB,
University Detroit Jesuit Project
(Allied Irish Bank PLC LOC),

3.88%, 10/4/07		600		600


Total Short-Term Investments

(Cost $27,475)				27,475



Total Investments - 102.7%

(Cost $79,518)				79,777

Liabilities less Other Assets - (2.7)%				(2,100	)

NET ASSETS - 100.0%				$77,677

At September 30, 2007, the industry sectors for the Short-Intermediate Tax-Exempt Fund were:



INDUSTRY SECTOR	% OF INVESTMENTS

Facilities		7.6	%

General		5.9

General Obligation		18.3

Medical		11.8

Pollution		9.5

School District		10.5

Transportation		14.4

Utilities		9.0

All other sectors less than 5%		13.0


Total		100.0	%

At September 30, 2007, the credit quality distribution for the Short-Intermediate Tax-Exempt Fund as a percentage of investments including cash was:



QUALITY DISTRIBUTION *	%

AAA		55.6	%

AA		12.1

Cash and Equivalents		32.3



Total		100.0	%

* Standard & Poor’s Rating Services

(1) When-Issued Security

Percentages shown are based on Net Assets.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 51 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS
TAX - EXEMPT FUND



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 89.1%


Arizona - 2.0%

Arizona Student Loan Acquisition
Authority Revenue Refunding Bonds,
Series A-1 (AMT) (Student Loans Gtd.),

5.90%, 5/1/24		$1,000		$1,049

Arizona Tourism & Sports Authority
Revenue Bonds, Series A,
Multipurpose Stadium Facility
(MBIA Insured),

5.00%, 7/1/31		2,250		2,305

Maricopa County Unified School District
No. 41 Gilbert G.O. Unlimited Bonds,
Unrefunded Balance,

6.25%, 7/1/15		235		239

Maricopa County Unified School District
No. 41 Gilbert G.O. Unlimited Bonds,
Prerefunded,

6.25%, 7/1/08		2,765		2,821

Phoenix Civic Improvement Corp. District
Capital Appreciation Revenue Bonds,
Series B (FGIC Insured),

0.00%, 7/1/20		2,045		1,704

Phoenix Civic Improvement Corp. Transit
Excise TRB, Light Rail Project
(AMBAC Insured),

5.00%, 7/1/17		5,000		5,362



				13,480



California - 12.3%

Anaheim PFA Revenue Bonds, Electric
System Distributing Facilities
(MBIA Insured), Prerefunded,

5.00%, 10/1/08		2,345		2,405

Antelope Valley Community College
District G.O. Unlimited Bond, Series B,
Election 2004 (MBIA Insured),

5.25%, 8/1/39		2,000		2,125

Bay Area Governments Association
Infrastructure Financing Authority
Revenue Bonds, Payment
Acceleration Notes (FGIC Insured),

5.00%, 8/1/17		5,000		5,281

5.00%, 8/1/17		5,000		5,372

Bay Area Governments Association
Infrastructure Financing Authority
Revenue Bonds, Payment
Acceleration Notes (XLCA Insured),

5.00%, 8/1/13		5,000		5,191



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 89.1% - CONTINUED


California - 12.3% - (continued)

California Housing Finance Agency
Revenue Bonds, Series E (AMT),
Home Mortgage (FGIC Insured),

5.00%, 2/1/24		$3,245		$3,265

California State Department of Water
Resources Power Supply Revenue
Bonds, Series A,

6.00%, 5/1/14		12,000		13,227

California State G.O. Unlimited Bonds,

5.25%, 2/1/25		3,500		3,679

California State G.O. Unlimited Bonds,
Prerefunded,

5.75%, 5/1/10		50		53

5.75%, 5/1/10		400		426

California State G.O. Unlimited Bonds,
Unrefunded Balance,

5.75%, 5/1/30		130		138

California State G.O. Unlimited Refunding
Bonds (MBIA Insured),

4.25%, 8/1/33		5,000		4,616

Colton Joint Unified School District
Capital Appreciation G.O. Unlimited
Bonds, Series C, Election of 2001
(FGIC Insured),

0.00%, 2/1/32		5,800		1,629

Kern High School District G.O. Unlimited
Refunding Bonds, Series A
(MBIA Insured),

6.60%, 2/1/17		1,845		2,021

6.60%, 8/1/17		1,825		1,999

Long Beach Bond Finance Authority
Natural Gas Purpose Revenue Bonds,
Series A, ⁽¹⁾

5.50%, 11/15/37		2,500		2,625

Los Angeles Department of Water &
Power Waterworks Revenue Bonds,
Series C (MBIA Insured),

5.00%, 7/1/29		2,500		2,588

Menlo Park G.O. Unlimited Bonds,

5.25%, 8/1/27		1,000		1,059

Moreland School District G.O. Unlimited
Bonds, Series C, Election of 2002
(FGIC Insured),

0.00%, 8/1/28		3,000		1,040

Orange County Sanitation District COP
(FGIC Insured), Prerefunded,

5.25%, 8/1/13		10,000		10,906

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 52 NORTHERN FUNDS SEMIANNUAL REPORT


		SEPTEMBER 30, 2007 (UNAUDITED)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 89.1% – CONTINUED


California - 12.3% – (continued)

San Francisco Bay Area Transit Financing
Authority G.O. Unlimited Bonds,
Series B, Election of 2004,

4.75%, 8/1/37	$	5,000	$	5,035

San Mateo Union High School District
COP Convertible Capital Appreciation,
Series B, Phase I Projects
(AMBAC Insured),

0.00%, 12/15/43		10,000		5,551

Walnut Valley Unified School District G.O.
Unlimited Bonds, Series A
(MBIA Insured), Escrowed to Maturity,

6.00%, 8/1/13		1,000		1,130


				81,361



Colorado - 0.7%

Colorado Health Facilities Authority
Revenue Bonds, Portercare Adventist
Health Hospital, Prerefunded,

6.50%, 11/15/11		1,000		1,120

Denver City & County Special Facilities
Airport Revenue Bonds, Series A
(AMT), Rental Car Project
(MBIA Insured),

6.00%, 1/1/14		3,360		3,474


				4,594



Connecticut - 2.4%

Connecticut State Higher Education
Supplement Loan Authority Revenue
Refunding Bonds, Series A (AMT),
Family Education Loan Program
(MBIA Insured),

4.75%, 11/15/18		1,000		1,051

Connecticut State Refunding G.O.
Unlimited Bonds, Series C,

5.00%, 6/1/15		5,000		5,428

Connecticut State Special Tax Obligation
Revenue Bonds, Series A,
Transportation Infrastructure,
Partially Prerefunded,

7.13%, 6/1/10		8,625		9,159


				15,638



District of Columbia - 1.7%

District of Columbia Revenue Bonds,
Gains-Georgetown University
(AMBAC Insured),

0.00%, 4/1/40		19,610		11,427



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 89.1% – CONTINUED


Florida - 6.8%

Crossings at Fleming Island Community
Development District Special
Assessment Revenue Refunding
Bonds, Series C,

7.05%, 5/1/15	$	1,300	$	1,352

Florida State Board of Education Capital
Outlay G.O. Unlimited Bonds,
Unrefunded Balance,

9.13%, 6/1/14		2,090		2,454

Florida State Board of Education Capital
Outlay G.O. Unlimited Refunding Bonds,
Escrowed to Maturity,

9.13%, 6/1/14		325		424

Florida State Broward County G.O.
Unlimited Bonds,
Escrowed to Maturity,

10.00%, 7/1/14		15,950		20,192

Miami-Dade County Aviation Revenue
Bonds, Series A (AMT) (FSA Insured),

5.00%, 10/1/33		5,000		5,015

Orlando Utilities Commission Water &
Electric Revenue Refunding Bonds,
Series D, Escrowed to Maturity,

6.75%, 10/1/17		7,700		9,061

Poinciana Community Development
District Special Assessment Bonds,
Series A,

7.13%, 5/1/31		900		940

Sunrise Utility System Revenue Refunding
Bonds, Series A (AMBAC Insured),

5.50%, 10/1/15		4,945		5,406



				44,844



Georgia - 2.4%

Forsyth County G.O. Unlimited Bonds,
Prerefunded,

6.00%, 3/1/10		3,290		3,506

Gainesville & Hall County Development
Authority Revenue Bonds, Series C,
Senior Living Facilities — Lanier Village,

7.25%, 11/15/29		2,000		2,142

Georgia Municipal Electric Authority
Power Revenue Bonds, Series B
(FGIC-TCRS Insured),

6.38%, 1/1/16		2,300		2,711

Georgia State G.O. Unlimited Bonds,
Series E,

5.00%, 8/1/22		5,000		5,357

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 53 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS
TAX - EXEMPT FUND (continued)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 89.1% – CONTINUED


Georgia - 2.4% – (continued)

Georgia State Housing & Finance
Authority Revenue Bonds, Series B
(AMT), SFM (G.O. of Authority Insured),

5.00%, 12/1/26		$1,500		$1,500

Private Colleges & Universities Authority
Student Housing Revenue Bonds,
Series A, Mercer Housing Corp.
Project,

6.00%, 6/1/21		1,000		1,052



				16,268



Illinois - 5.7%

Bolingbrook Capital Appreciation G.O.
Unlimited Bonds, Series B
(MBIA Insured),

0.00%, 1/1/33		1,400		359

Chicago Board of Education Refunding
G.O. Unlimited Bonds, Series A
(MBIA Insured),

5.00%, 12/1/19		5,000		5,413

Chicago O’Hare International Airport
Third Lien Revenue Bonds, Series B-2
(AMT) (XLCA Insured),

6.00%, 1/1/29		11,000		11,897

Cook County Capital Improvement G.O.
Unlimited Bonds, Series C
(AMBAC Insured),

5.00%, 11/15/25		2,500		2,591

Illinois Development Finance Authority
Economic Development Revenue
Bonds, Latin School of Chicago Project,
Prerefunded,

5.60%, 8/1/08		350		356

Illinois Educational Facilities Authority
Student Housing Revenue Bonds,
Educational Advancement Fund
University Center Project, Prerefunded,

6.00%, 5/1/12		750		831

Illinois Health Facilities Authority
Revenue Bonds, Riverside Health
System, Prerefunded,

6.00%, 11/15/12		1,000		1,111

Illinois State G.O. Unlimited Bonds,
1st Series,

5.60%, 8/1/21		5,000		5,229



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)

MUNICIPAL BONDS - 89.1% – CONTINUED


Illinois - 5.7% - (continued)

Metropolitan Pier & Exposition Authority
Revenue Bonds, Series A, McCormick
Place Expansion (MBIA Insured),

5.25%, 6/15/42		$10,000		$10,379



				38,166



Indiana - 4.5%

Franklin Township Independent School
Building Corp. Marion County First
Mortgage Revenue Bonds,
Prerefunded,

6.50%, 7/15/10		5,000		5,481

Hamilton County Independent Public
Building Corp. First Mortgage G.O.
Unlimited Bonds,

7.25%, 8/1/13		4,200		4,885

Indiana Municipal Power Agency Power
Supply Systems Revenue Bonds,
Series A (MBIA Insured),

5.00%, 1/1/42		5,000		5,119

Indiana Office Building Commission
Capital Complex Revenue Bonds,
Series B (MBIA Insured),

7.40%, 7/1/15		5,620		6,789

Indianapolis Industrial Utilities District
Revenue Refunding Bonds, Series B
(FGIC Insured),

3.50%, 6/1/18		3,280		3,106

Indianapolis Industrial Utilities District
Revenue Refunding Bonds, Series B
(FGIC Insured), Escrowed to Maturity,

4.00%, 6/1/08		2,275		2,283

Monroe County Hospital Authority
Revenue Bonds, Series B, Bloomington
Hospital Obligation Group
(FSA Insured),

6.00%, 5/1/29		2,000		2,079



				29,742



Iowa - 0.8%

Tobacco Settlement Authority of Iowa
Tobacco Settlement Revenue Bonds,
Series B, Asset Backed, Prerefunded,

5.60%, 6/1/11		5,000		5,381



Kansas - 0.3%

Wichita Hospital Improvement Facilities
Revenue Refunding Bonds, Series III,

6.25%, 11/15/18		1,685		1,816

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 54 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 89.1% – CONTINUED

Kentucky - 1.6%
Louisville & Jefferson County
Metropolitan Sewer District Sewer &
Drain System Revenue Bonds,
Series A (MBIA Insured),

5.50%, 5/15/34		$10,000		$10,635



Maryland - 2.4%

Maryland State G.O. Unlimited Bonds,
State and Local Facilities, 2nd Series,

5.00%, 8/1/10		5,000		5,206

Montgomery Improvement G.O. Unlimited
Bonds, Series A, Consolidated
Public Improvement,

5.00%, 5/1/18		5,000		5,448

Prince Georges County G.O. Limited
Refunding Limited Bonds, Series B,
Consolidated Public Improvement,

5.00%, 7/15/23		5,000		5,318


				15,972



Massachusetts - 5.5%

Massachusetts Bay Transportation
Authority Mass Sales Tax Revenue
Bonds, Series A,

5.00%, 7/1/24		10,000		10,829

Massachusetts Health & Educational
Facilities Authority Revenue Bonds,
Series A, Berklee College Music,

5.00%, 10/1/37		5,000		5,071

Massachusetts Health & Educational
Facilities Authority Revenue Bonds,
Series N, Harvard University
(G.O. of Institution Insured),

6.25%, 4/1/20		10,000		12,164

Massachusetts State Water Pollution
Abatement Revenue Bonds, Series A,
MWRA Program,

6.00%, 8/1/19		3,000		3,538

Massachusetts State Water Resources
Authority Revenue Refunding
Bonds, Series D
(MBIA Insured G.O. of Authority),

5.00%, 8/1/24		5,000		5,095



				36,697



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 89.1% – CONTINUED

Michigan - 0.8%

Michigan State Trunk Line Revenue
Refunding Bonds (FSA Insured),

5.00%, 11/1/18		$1,500		$1,632

Wayne Charter County Airport Revenue
Bonds, Series B (MBIA Insured),

4.88%, 12/1/23		2,500		2,533

Wayne Charter County Revenue
Refunding Bonds,
Series C (FGIC Insured),

5.38%, 12/1/15		1,000		1,071



				5,236



Minnesota - 3.4%
Minnesota Public Facilities Authority
Water PCR Refunding Bonds, Series B,

5.00%, 3/1/18		5,000		5,440

Minnesota State G.O. Unlimited Bonds,

5.00%, 10/1/09		5,000		5,149

5.00%, 6/1/11		10,000		10,513

Minnesota State Housing Finance
Agency SFM Revenue Bonds,
Series A (MBIA Insured),

5.35%, 7/1/17		475		488

Minnesota State Housing Finance
Agency SFM Revenue Bonds, Series F,

5.70%, 1/1/17		825		831


				22,421


Missouri - 0.4%

Metro Development Agency District
Revenue Bonds, Series B, Metrolink
Cross Country Project (FSA Insured),

5.25%, 10/1/17		2,500		2,704



Nevada - 1.0%

Clark County IDR Bonds (AMT), Series A,
Southwest Gas Corp. Project
(AMBAC Insured),

5.25%, 7/1/34		5,570		5,668

North Las Vegas G.O. Limited Bonds,
Wastewater Reclamation System
(MBIA Insured),

4.50%, 10/1/36		1,250		1,209



				6,877

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 55 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS
TAX - EXEMPT FUND (continued)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 89.1% – CONTINUED

New Jersey - 4.7%

New Jersey Economic Development
Authority Revenue Bonds,
Cigarette Tax,

5.75%, 6/15/29		$5,000		$5,231

New Jersey Economic Development
Authority Revenue Refunding Bonds,
Series K, School Facilities Construction
(AMBAC Insured),

5.25%, 12/15/20		10,000		11,099

New Jersey Health Care Facilities
Financing Authority Revenue Bonds,
Atlantic City Medical, Prerefunded,

6.25%, 7/1/12		445		496

New Jersey Health Care Facilities
Financing Authority Revenue Bonds,
Unrefunded - Atlantic City Medical,

6.25%, 7/1/17		555		601

New Jersey State Turnpike Authority
Growth & Income Securities Revenue
Bonds, Series B (AMBAC Insured),

0.00%, 1/1/35		5,000		3,580

New Jersey Transportation Trust Fund
Authority Revenue Bonds, Series A
(FSA Insured),

4.00%, 12/15/17		5,000		4,967

New Jersey Transportation Trust Fund
Authority Revenue Bonds, Series A
(FSA Insured),

5.25%, 12/15/20		5,000		5,544


				31,518



New York - 11.1%

Dutchess County IDA Civic Facilities
Revenue Bonds, Bard College
Civic Facilities, Prerefunded,

5.75%, 8/1/10		2,000		2,139

Metropolitan Transportation
Authority Revenue Bonds, Series A
(FGIC Insured),

4.75%, 11/15/37		4,060		4,079

New York City G.O. Unlimited Bonds,
Series A, Unrefunded Balance,

6.00%, 5/15/30		50		53

New York City Municipal Water Finance
Authority Water & Sewer System
Revenue Bonds, Series B,
Prerefunded,

6.00%, 6/15/10		1,940		2,082



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 89.1% – CONTINUED

New York - 11.1% – (continued)

New York City Municipal Water Finance
Authority Water & Sewer System
Revenue Crossover Refunding Bonds,
Series B, Unrefunded Balance,

6.00%, 6/15/33		$1,160		$1,239

New York City Transitional Finance
Authority Revenue Bonds, Series B,
Future Tax Secured, Prerefunded,

6.00%, 5/15/10		4,000		4,284

New York City Transitional Finance
Authority Revenue Bonds, Series E,
Future Tax Secured (FGIC Insured),

5.25%, 2/1/17		5,000		5,370

New York G.O. Unlimited Bonds,
Subseries C1, ⁽¹⁾

5.00%, 10/1/20		5,000		5,295

New York Liberty Development Corp.
Revenue Bonds, Goldman Sachs
Headquarters,

5.50%, 10/1/37		5,000		5,571

New York State Dormitory Authority
Lease Revenue Bonds, Series A,
University Dormitory Facilities,
Prerefunded,

6.25%, 7/1/10		1,115		1,205

New York State Thruway Authority
State Personal Income Tax
Revenue Bonds, Series A,

5.25%, 3/15/21		5,000		5,466

New York State Urban Development Corp.
Revenue Refunding Bonds, Series A,
Service Contract (FSA Insured), ⁽¹⁾

5.25%, 1/1/19		10,000		11,052

Port Authority of New York & New Jersey
Revenue Bonds, Series 109
(G.O. of Authority),

5.38%, 1/15/32		2,000		2,022

Sales Tax Asset Receivables Corp.
Revenue Bonds, Series A
(MBIA Insured),

5.25%, 10/15/19		5,000		5,432

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 56 NORTHERN FUNDS SEMIANNUAL REPORT


SEPTEMBER 30, 2007 (UNAUDITED)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 89.1% – CONTINUED

New York - 11.1% – (continued)

Tobacco Settlement Financing Corp.

Revenue Bonds, Series B-1C,

5.50%, 6/1/16		$10,000		$10,549

5.50%, 6/1/18		5,000		5,319

5.50%, 6/1/19		2,500		2,678



				73,835



North Carolina - 3.0%

North Carolina State Eastern Municipal
Power Agency Power System Revenue
Bonds, Series A, Escrowed to Maturity,

6.50%, 1/1/18		2,655		3,211

North Carolina State Eastern Municipal
Power Agency Power System
Revenue Bonds, Series D,

6.75%, 1/1/26		1,250		1,325

North Carolina State Eastern Municipal
Power Agency Power System
Revenue Refunding Bonds, Series B,

7.00%, 1/1/08		10,000		10,078

North Carolina State G.O. Unlimited
Refunding Bonds, Series E,

5.00%, 2/1/10		5,000		5,171



				19,785



Ohio - 0.7%

Cleveland Airport Systems Revenue
Bonds, Series A (AMBAC Insured),

5.00%, 1/1/24		2,500		2,609

Ohio Housing Finance Agency Mortgage
Revenue Bonds, Series C (AMT),
Residential Mortgage-Backed
Securities (Colld. by GNMA Securities),

5.15%, 3/1/13		640		656

Plain Local School District G.O. Unlimited
Bonds (FGIC Insured), Prerefunded,

6.00%, 6/1/11		810		877

Plain Local School District G.O.
Unlimited Bonds (FGIC Insured),
Unrefunded Balance

6.00%, 12/1/25		190		203



				4,345



Oklahoma - 1.3%
McGee Creek Authority Water Revenue
Bonds (MBIA Insured),

6.00%, 1/1/13		6,000		6,342



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 89.1% – CONTINUED

Oklahoma - 1.3% – (continued)

Payne County Economic Development
Authority Student Housing Revenue
Bonds, Series A, Collegiate Housing
Foundation, Prerefunded,

6.38%, 6/1/11		$2,000		$2,189



				8,531



Oregon - 0.8%

Oregon State Housing & Community
Services Department Mortgage
Revenue Bonds, Series D (AMT),

5.00%, 7/1/26		3,505		3,505

Oregon State Housing & Community
Services Department Mortgage
Revenue Bonds, Series E,
SFM Program (FHA Insured),
6.15%, 7/1/30		350		356

Oregon State Housing & Community
Services Department Mortgage
Revenue Bonds, Series F, SFM Project,

5.55%, 7/1/30		1,160		1,186



				5,047


Pennsylvania - 2.1%

Montgomery County Higher Education &
Health Authority Revenue Bonds,
Series A, Philadelphia Geriatric Center,
Prerefunded,

7.38%, 12/1/09		3,000		3,273

Pennsylvania Housing Finance Agency
SFM Revenue Bonds,
Series 72A (AMT),

4.80%, 4/1/12		750		766

Pennsylvania State G.O. Unlimited Bonds,
Second Series (FGIC Insured),

5.00%, 7/1/09		5,000		5,130

Pennsylvania State Higher Educational
Facilities Authority Revenue Bonds,
LaSalle University,

5.50%, 5/1/34		1,330		1,362
Pennsylvania State Higher Educational
Facilities Authority Revenue Bonds,
Series A, UPMC Health System,

6.00%, 1/15/22		1,750		1,874

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 57 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS
TAX - EXEMPT FUND (continued)


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 89.1% – CONTINUED

Pennsylvania - 2.1% – (continued)

Pennsylvania State Higher Educational
Facilities Authority Student Housing
Revenue Bonds, Series A, Student
Association, Inc. Project,

6.75%, 9/1/32		$1,475		$1,546


				13,951



Puerto Rico - 3.7%

Puerto Rico Commonwealth Highway &
Transportation Authority
Transportation Revenue Bonds,
Series B, Prerefunded,

6.00%, 7/1/10		2,000		2,148

Puerto Rico Commonwealth Highway &
Transportation Authority
Transportation Revenue Bonds,
Series D, Prerefunded,

5.25%, 7/1/12		11,260		12,080

Puerto Rico Electric Power Authority
Power Revenue Refunding Bonds,
Series V V (FSA Insured),

5.50%, 7/1/20		3,350		3,794

Puerto Rico Infrastructure Financing
Authority Special Tax Refunding Bonds,
Series C (AMBAC Insured),

5.50%, 7/1/24		5,500		6,247



				24,269


Rhode Island - 0.5%

Rhode Island State Economic
Development Corp. Airport Revenue
Bonds, Series B (FGIC Insured),
Prerefunded,

6.50%, 7/1/10		3,000		3,258


Texas - 4.2%

Birdville Independent School District
Capital Appreciation G.O. Unlimited
Bonds (PSF Gtd.), Prerefunded,

0.00%, 2/15/10		1,795		906

Dallas-Fort Worth International Airport
Facilities Improvement Corp. Revenue
Bonds, Series A (AMT)
(AMBAC Insured),

5.00%, 11/1/32		1,110		1,112

Harris County Health Facilities
Development Corp. Revenue Bonds,
Series A, Christus Health (MBIA
Insured), Escrowed to Maturity,

5.50%, 7/1/09		180		186

PRINCIPAL

AMOUNT

VALUE

(000S)

MUNICIPAL BONDS - 89.1% – CONTINUED

Texas - 4.2% – (continued)

Harris County Revenue Refunding Bonds,

Series A, Senior Lien - Toll Road

(FSA Insured), Prerefunded,

5.25%, 8/15/10

$10,000

$10,464

Lewisville Independent School District

G.O. Unlimited Refunding Bonds

(PSF Gtd.),

5.25%, 8/15/18

5,000

5,449

Parker County Hospital District Revenue

Bonds, Campbell Health System,

Prerefunded,

6.25%, 8/15/09

1,000

1,067

Pflugerville Certificates G.O. Limited

Bonds (AMBAC Insured),

5.00%, 8/1/33

3,075

3,142

Sam Rayburn Municipal Power Agency

Revenue Refunding Bonds,

6.00%, 10/1/16

1,000

1,045

6.00%, 10/1/21

1,250

1,299

Texas State Veterans Housing

Assistance G.O. Unlimited Bonds,

Series C (AMT), Fund II,

6.10%, 6/1/21

3,000

3,119

Waxahachie Independent School District

Capital Appreciation G.O. Unlimited

Bonds (PSF Gtd.), Unrefunded Balance,

0.00%, 8/15/16

240

145

0.00%, 8/15/23

190

0.00%, 8/15/28

305

0.00%, 8/15/30

320

28,161

Virginia - 0.4%

Virginia Housing Development Authority

Commonwealth Mortgage Revenue

Bonds, Subseries D-3 (AMT)

(G.O. of Authority),

4.55%, 4/1/23

2,500

2,407

Washington - 1.9%

Snohomish County School District No. 15

Edmonds G.O. Unlimited Refunding

Bonds, Series B (FSA Insured),

5.00%, 12/1/07

1,000

1,003

Washington State G.O. Unlimited Bonds,

Series B & AT-7,

6.40%, 6/1/17

5,200

6,082

See Notes to the Financial Statements.

TAX - EXEMPT FIXED INCOME FUNDS 58 NORTHERN FUNDS SEMIANNUAL REPORT

SEPTEMBER 30, 2007 (UNAUDITED)



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
MUNICIPAL BONDS - 89.1% - CONTINUED

Washington - 1.9% – (continued)

Washington State G.O. Unlimited Bonds,
Series C (AMBAC Insured),

5.00%, 1/1/18		$5,000		$5,375



				12,460


Total Municipal Bonds

(Cost $573,165)				590,826



	NUMBER		VALUE
	OF SHARES		(000S)
INVESTMENT COMPANIES - 0.8%

AIM Tax-Free Cash Reserve Portfolio		5,515,972		5,516

Dreyfus Tax-Exempt Cash
Management Fund		32,039		32


Total Investment Companies

(Cost $5,548)				5,548



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 10.0%

Connecticut State Health & Educational
Facility Authority Revenue VRDB,
Series Y-2, Yale University,

4.00%, 10/1/07		$3,400		3,400

Indiana Health & Educational Facilities
Financing Authority Hospital Revenue
VRDB Adjustable, Harrison County
Hospital Project
(JP Morgan Chase Bank LOC),

4.05%, 10/1/07		2,300		2,300

Louisiana Offshore Terminal Authority
Deepwater Port Revenue Refunding
VRDB, Series A, Loop LLC Project
(SunTrust Bank LOC),

4.02%, 10/1/07		1,000		1,000

Massachusetts State Health &
Educational Facilities Authority
Revenue VRDB, Series GG-1,
Harvard University,

3.82%, 10/4/07		5,000		5,000

McAllister Academic Village LLC VRDB,
Series A, Arizona State University
Project (AMBAC Insured),

3.83%, 10/3/07		10,000		10,000



	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 10.0% - CONTINUED

Michigan State Hospital Finance
Authority Revenue Refunding VRDB,
Series A, Crittenton Hospital
(Comerica Bank LOC),

4.08%, 10/1/07		$100		$100

Montana Facility Finance Authority
Revenue VRDB, Series A,
Sister of Charity,

4.04%, 10/1/07		11,680		11,680

New Jersey Economic Development
Authority Revenue Refunding VRDB,
Series B, Cedar Crest Village, Inc.
(Sovereign Bank FSB LOC),

3.81%, 10/4/07		4,100		4,100

Ohio State Air Quality Development
Authority Revenue Refunding VRDB,
Series A, Pollution Control - Firstenergy
(KeyBank N.A. LOC),

3.85%, 10/1/07		10,000		10,000

Pima County IDA Revenue VRDB,
Series A, Senior Living Facilities -
La Posada (LaSalle Bank N.A. LOC),

3.86%, 10/4/07		5,700		5,700

Sunshine State Governmental Financing
Commission Revenue VRDB
(AMBAC Insured),

4.08%, 10/1/07		2,900		2,900

Tarrant County Health Facilities
Development Corp. Revenue VRDB,
Series A, Adventist/Sunbelt
(SunTrust Bank LOC),

3.86%, 10/4/07		400		400

Texas State Transportation Commission
Revenue VRDB, Series B, First Tier,

3.87%, 10/3/07		200		200

Utah Transit Authority Sales Tax
Revenue VRDB, Subseries B
(Fortis Bank S.A./N.V. LOC),

4.00%, 10/1/07		2,500		2,500

Valdez Marine Term Revenue
Refunding Bonds, Series B,
Exxon Pipeline Co. Project,

3.93%, 10/1/07		6,700		6,700

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 59 TAX - EXEMPT FIXED INCOME FUNDS

tax - exempt fixed income funds


SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)
TAX - EXEMPT FUND (continued)

PRINCIPAL

AMOUNT

VALUE

(000S)

SHORT-TERM INVESTMENTS - 10.0% – CONTINUED

Washington State Housing Finance

Commission Nonprofit Housing

Revenue Refunding VRDB,

Emerald Heights Project

(Bank of America N.A. LOC),

4.00%, 10/1/07

$100

Total Short-Term Investments

(Cost $66,080)

66,080

Total Investments - 99.9%

(Cost $644,793)

662,454

Other Assets less Liabilities - 0.1%

868

NET ASSETS - 100.0%

$663,322

(1) When-Issued Security

Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Tax-Exempt Fund were:


INDUSTRY SECTOR	% OF INVESTMENTS
Development		9.8	%

General		6.3

General Obligation		19.5

Higher Education		8.2

Power		6.7

Transportation		10.6

Utilities		7.5

All other sectors less than 5%		31.4



Total		100.0	%

At September 30, 2007, the credit quality distribution for the Tax-Exempt Fund as a percentage of investments including cash was:


QUALITY DISTRIBUTION *	%
AAA		63.1	%

AA		14.3

A		5.7

BBB		6.1

Not Rated		0.8

SP1/MIG1		3.8


Other		0.2

Cash and Equivalents		6.0



Total		100.0	%

* Standard & Poor’s Rating Services

See Notes to the Financial Statements.

TAX — EXEMPT FIXED INCOME FUNDS 60 NORTHERN FUNDS SEMIANNUAL REPORT

Northern Funds (the “Trust”) is a Delaware statutory trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. As of September 30, 2007, the Trust currently includes 37 portfolios, each with its own investment objective (e.g., long-term capital appreciation, total return or income consistent with preservation of capital). The Arizona Tax-Exempt, California Intermediate Tax-Exempt, California Tax-Exempt, High Yield Municipal, Intermediate Tax-Exempt, Short-Intermediate Tax-Exempt, and Tax-Exempt Funds (collectively, the “Funds”) are separate investment portfolios of the Trust, all of which are diversified portfolios except for the Arizona Tax-Exempt, California Intermediate Tax-Exempt and California Tax-Exempt Funds, which are non-diversified portfolios of the Trust. Non-diversified portfolios may invest a relatively high percentage of their net assets in obligations of a limited number of issuers. The Short-Intermediate Tax-Exempt Fund commenced investment operations on August 23, 2007. Each of the Funds is presented herein.

Northern Trust Investments, N.A. (“NTI”), a subsidiary of The Northern Trust Company (“Northern Trust”), serves as the investment adviser for each of the Funds. Northern Trust serves as the custodian, fund accountant and transfer agent for the Trust. NTI and PFPC Inc. (“PFPC”) serve as the Trust’s co-administrators, and Northern Fund Distributors, LLC is the Trust’s distributor.

Shares of open-end investment companies are valued at net asset value (“NAV”). Spot and forward foreign currency exchange contracts are generally valued using an independent pricing service. Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options are valued at broker-provided prices, as are swaps, caps, collars and floors. The foregoing prices may be obtained from one or more independent pricing services or, as needed or applicable, independent broker-dealers. Short-term investments are valued at amortized cost, which the investment adviser have determined, pursuant to Board of Trustees authorization, approximates fair value.

Any securities for which market quotations are not readily available or are believed to be incorrect are valued at fair value as determined in good faith by the investment adviser under the supervision of the Board of Trustees. The Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of market values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance. This may occur particularly with respect to certain foreign securities held by a Fund, in which case the Trust may use adjustment factors obtained from an independent evaluation service that are intended to reflect more accurately the fair value of those securities as of the time the Fund’s NAV is calculated. The use of fair valuation involves

the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other unaffiliated investment companies and investors to price the same investments.

B) CREDIT ENHANCEMENTS – The Funds’ income may be subject to certain state and local taxes and, depending on an individual shareholder’s tax status, the federal alternative minimum tax. Certain investments owned by the Funds are covered by insurance issued by private insurers, are backed by an escrow or trust containing U.S. Government securities or U.S. Government agency securities, or are otherwise supported by letters of credit, standby purchase agreements or other liquidity facilities. Such enhancements may ensure the timely payment of the security’s principal and interest or may shorten the security’s maturity. However, such enhancements do not guarantee the market value of the securities or the value of a Fund’s shares.

C) WHEN-ISSUED/ DELAYED DELIVERY SECURITIES – Certain Funds may purchase securities with delivery or payment to occur at a later date beyond the normal settlement period. At the time the Fund enters into the commitment to purchase a security, the transaction is recorded and the value of the commitment is reflected in the NAV. The value of the commitment may vary with market fluctuations. No interest accrues to the Fund until settlement takes place. At the time the Fund enters into this type of transaction, it is required to segregate cash or other liquid assets at least equal to the amount of the commitment. When-issued securities at September 30, 2007, if any, are noted in each of the Funds’ Schedules of Investments and Statements of Assets and Liabilities.

D) INVESTMENT TRANSACTIONS AND INCOME – Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. Certain Funds received dividend income from investments in investment companies during the six months ended September 30, 2007. Dividend income is recognized on the ex-dividend date. Cost of investments includes amortization of premiums and accretion of discounts.

E) EXPENSES – Each Fund is charged for those expenses that are directly attributable to that Fund. Expenses incurred which do not specifically relate to an individual Fund are allocated among the Funds in proportion to each Fund’s relative net assets.

F) DISTRIBUTIONS TO SHAREHOLDERS – Distributions of dividends from net investment income are declared and paid as follows:

For the period subsequent to October 31, 2006, through the fiscal year ended March 31, 2007, the High Yield Municipal Fund incurred net capital loss of approximately $47,000 for which the Fund intends to treat as having been incurred in the next fiscal year.

At March 31, 2007, the capital loss carryforwards for U.S. federal income tax purposes and their respective years of expiration were as follows:

The Funds in the above table may offset future capital gains with these capital loss carryforwards.

At March 31, 2007, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

The tax character of distributions paid during the fiscal year ended March 31, 2007, was as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

The tax character of distributions paid during the fiscal year ended March 31, 2006, was as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

In July 2006, the Financial Accounting Standards Board (“FASB”) issued FASB interpretation 48 (“FIN 48”), “Accounting for Uncertainty in Income Taxes”. This standard defines the threshold for recognizing the benefits of tax-return positions in the financial statements as “more-likely-than-not” to be sustained by the taxing authority and requires measurement of a tax position meeting the more-likely-than-not criterion, based on the largest benefit that is more than 50 percent likely to be realized. FIN 48 is effective as of the beginning of the first fiscal year beginning after December 15, 2006, with early application permitted if no interim financial statements have been issued. At adoption, companies must adjust their financial statements to reflect only those tax positions that are more-likely-than-not to be sustained as of the adoption date. As of September 30, 2007, management has evaluated the application of FIN 48 to the Funds, and has determined that there is no material impact resulting from the adoption of this Interpretation on the Funds’ financial statements.

The Funds did not incur any interest expense during the six months ended September 30, 2007.

The reimbursements described above are voluntary and may be modified or terminated at any time.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds, although the Trust’s secretary also serves as legal counsel to the Trust and the independent Trustees and receives legal fees from the Funds for those services. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are included in “Trustee fees” on the Statements of Assets and Liabilities. The Trustee’s account shall be deemed to be invested in a money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the Investment Company Act of 1940, as amended. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

For the six months ended September 30, 2007, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

Transactions in capital shares for the six months ended September 30, 2007, were as follows:

Transactions in capital shares for the fiscal year ended March 31, 2007, were as follows:


*	Due to the acquisition of the Florida Intermediate Tax-Exempt Fund by the Intermediate Tax-Exempt Fund, these numbers include assets received in connection with the fund’s acquisition of approximately 3,865,000 in shares sold and $39,846,000 in proceeds from shares sold.

Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds’ financial statements and financial disclosures, if any.

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any; and (2) ongoing costs, including advisory fees; distribution (12b-1) fees, if any; and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2007, through September 30, 2007.

The first line of the tables below provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid 4/1/07 -9/30/07” to estimate the expenses you paid on your account during this period.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. If these fees were included, your costs would have been higher. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.


(1)	The Short-Intermediate Tax-Exempt Fund commenced operations on 8/23/07. Thus, to calculate account values and expenses paid, the 39 day rate of return was used (as opposed to the 6 month rate of return).

*	Expenses are calculated using the Funds’ annualized expense ratios, which represent ongoing expenses as a percentage of net assets for the six months ended September 30, 2007. Expenses are calculated by multiplying the annualized expense ratio by the average account value over the period; then multiplying the result by the number of days in the most recent fiscal half year (183); and then dividing that result by the number of days in the current fiscal year (365).


**	Hypothetical expenses are based on the Funds’ actual annualized expense ratios and an assumed rate of return of 5 percent before expenses.

With respect to the Schedules of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of total net assets.

Maturity dates represent the stated date on the security, the next interest reset/puttable date for floating and variable rate securities or the prerefunded date for these types of securities.


	The Trustees oversee the management of Northern Funds (the “Trust”), and review the investment performance and expenses of the Short-Intermediate Tax-Exempt Fund (the “Fund”). In addition, the Trustees determine annually whether to approve and continue the Trust’s investment advisory agreement (the “Advisory Agreement”) for the Fund with Northern Trust Investments, N.A. (“NTI” or the “Investment Adviser”).

	The Advisory Agreement was initially approved with respect to the Fund by the Trustees, including all of the Trustees who are not parties to the Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”), at a meeting held on August 3, 2007 (the “Meeting”).

	In connection with the Meeting, the Trustees received written materials and oral presentations relating to the Trustees’ consideration of the Advisory Agreement, and at that Meeting, the Trustees also considered the Investment Adviser’s oral presentations and discussed the information that had been provided. In connection with their deliberations, the Trustees were advised by their independent legal counsel regarding their responsibilities under applicable law, and met in executive sessions at the Meeting without employees of the Investment Adviser present.

	In evaluating the Advisory Agreement, the Trustees relied upon their knowledge, resulting from their meetings and other interactions, of NTI and its services. The Trustees reviewed and discussed, among other things, information relating to: (i) the terms of the Advisory Agreement; (ii) the contractual investment advisory fees and the total expenses (after voluntary reimbursements) borne by the Fund in comparison to those borne by mutual fund peer groups and categories selected by Lipper Analytical Services, Inc. (“Lipper”), including other similar funds; (iii) the investment advisory fees charged by NTI to its certain other accounts; (iv) the nature, quality and extent of the investment advisory services, including the scope and depth of NTI’s resources, NTI’s staffing for the Fund and the experience of the portfolio manager who would be managing the Fund; (v) NTI’s financial resources and its ability to attract and retain talent; (vi) the fees paid by the Fund to NTI and its affiliates for services, and NTI’s profitability and the expenses incurred by it in connection with the provision of those services; (vii) the Fund’s expense ratios; (viii) other benefits received by NTI and its affiliates from its relationships with the Fund; and (ix) NTI’s brokerage and trade allocation policies and other matters.

	In connection with their approvals of the Advisory Agreement for the Fund, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision. As part of their review, the Trustees considered the nature, extent and quality of the services to be provided by NTI to the Fund and the services provided to other current Funds of the Trust. In this regard, the Trustees considered both the investment advisory services, and the other nonadvisory services, that would be provided to the Fund by NTI and its affiliates and the quality of services that are currently provided to the Trust’s other Funds. The nonadvisory services include services as the Funds’ custodian, transfer agent and co-administrator. The Trustees also considered that many of the Fund’s shareholders were likely to have other client relationships with The Northern Trust Company. The Trustees concluded that NTI was able to commit substantial financial and other resources to the operations of the Fund and was able to provide quality services to the Fund. The Trustees also believed that NTI had made significant commitments to address regulatory compliance requirements that would be applicable to the Fund. The Trustees also considered NTI’s willingness to provide information requested by the Trustees.

	The Trustees also considered the Fund’s contractual advisory fee rates (which do not include breakpoints); the Fund’s projected total operating expense ratio; NTI’s voluntary expense reimbursements with respect to the Fund; and whether a consistent methodology was in place in determining the fees and expenses of the Fund. In addition, the Trustees considered the fees paid by the Fund to NTI and its affiliates for custodial, transfer agency and co-administration services, and reviewed information as to whether NTI was likely to pass benefits from its economies of scale to shareholders. In this regard, the Trustees considered NTI’s view that the Fund would be sharing in economies of scale through the level at which the Fund’s advisory fees are set (i.e., below the Lipper category median) and through NTI’s voluntary expense caps for the Fund. In addition, the Trustees considered the projected assets in the Fund and the net advisory fees at those levels; the information provided by NTI relating to the projected costs of the services to be provided by NTI and its affiliates and the projected profits that may be realized by them; and information comparing the fee rates charged by NTI with


	the fee rates charged by other, unaffiliated investment managers to their clients. Many of the comparisons of the Funds’ fee rates and total operating expenses were prepared by Lipper. All of these comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Fund. In addition, the Trustees noted NTI’s voluntary undertaking to limit the Fund’s total expense ratios to specified levels.

	The Trustees did not consider the investment performance of the Fund because it had no performance history.

	After deliberation, the Trustees concluded that the investment advisory fees to be paid by the Fund were reasonable in light of the services provided by NTI, its projected costs and profitability and the Fund’s projected asset levels, and that the Advisory Agreement should be approved.


	Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.


MULTI-MANAGER FUNDS

	STATEMENTS OF ASSETS AND LIABILITIES	SEPTEMBER 30, 2007 (UNAUDITED)


Amounts in thousands, except per share data	MULTI-MANAGER INTERNATIONAL EQUITY FUND		MULTI-MANAGER MID CAP FUND		MULTI-MANAGER SMALL CAP FUND


ASSETS:
Investments, at cost		$1,210,368		$390,393		$272,335
Investments, at value		$1,364,167		$430,122		$286,683
Foreign currencies, at Value (Cost $10,338)		10,605		-		-
Interest income receivable		224		1		1
Dividend income receivable		2,448		408		266
Receivable for foreign tax reclaimable		364		-		-
Receivable for securities sold		4,319		1,221		19,982
Receivable for fund shares sold		2,231		759		543
Receivable from investment adviser		-		-		2
Unrealized gain on forward foreign currency exchange contracts		23		-		-
Prepaid and other assets		153		7		6
Total Assets		1,384,534		432,518		307,483

LIABILITIES:
Unrealized loss on forward foreign currency exchange contracts		26		-		-
Cash Overdraft		-		-		11
Payable for securities purchased		10,032		3,237		23,541
Payable for fund shares redeemed		334		907		582
Payable to affiliates:
Investment advisory fees		245		63		51
Co-administration fees		33		11		7
Custody and accounting fees		-		7		-
Transfer agent fees		22		7		5
Trustee fees		1		1		1
Accrued other liabilities		49		39		39
Total Liabilities		10,742		4,272		24,237

Net Assets		$1,373,792		$428,246		$283,246

ANALYSIS OF NET ASSETS:
Capital stock		$1,159,138		$376,853		$254,329
Undistributed net investment income (loss)		9,753		323		(595	)
Accumulated undistributed net realized gain		50,835		11,341		15,164
Net unrealized appreciation		154,066		39,729		14,348
Net Assets		$1,373,792		$428,246		$283,246

Shares Outstanding ($.0001 par value, unlimited authorization)		105,296		35,685		24,121
Net Asset Value, Redemption and Offering Price Per Share		$13.05		$12.00		$11.74

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 2 NORTHERN FUNDS SEMIANNUAL REPORT


	MULTI-MANAGER FUNDS

STATEMENTS OF OPERATIONS	SIX MONTHS ENDED SEPTEMBER 30, 2007 (UNAUDITED)


	MULTI-MANAGER
	INTERNATIONAL			MULTI-MANAGER			MULTI-MANAGER
Amounts in thousands	EQUITY FUND			MID CAP FUND			SMALL CAP FUND


INVESTMENT INCOME:
Dividend income ⁽¹⁾		$16,811	⁽²⁾		$2,557			$1,202
Interest income		1,268			41			28
Total Investment Income		18,079			2,598			1,230

EXPENSES:
Investment advisory fees		6,800			1,764			1,434
Co-administration fees		927			294			195
Custody and accounting fees		490			83			74
Transfer agent fees		618			196			130
Registration fees		15			13			13
Printing fees		27			9			9
Professional fees		20			7			7
Trustee fees and expenses		9			3			3
Other		8			3			3

Total Expenses		8,914			2,372			1,868
Less expenses reimbursed by investment adviser		-			(20	)		(43	)
Net Expenses		8,914			2,352			1,825

Net Investment Income (Loss)		9,165			246			(595	)

NET REALIZED AND UNREALIZED GAINS (LOSSES):
Net realized gains (losses) on:
Investments		45,067			10,661			11,978
Foreign currency transactions		(163	)		-			-
Net change in unrealized appreciation (depreciation) on:
Investments		60,451			13,390			(6,291	)
Forward foreign currency exchange contracts		6			-			-
Translation of other assets and liabilities denominated in foreign currencies		226			-			-
Net Gains on Investments and Foreign Currency		105,587			24,051			5,687

Net Increase in Net Assets Resulting from Operations		$114,752			$24,297			$5,092


(1)		Amounts include dividend income from the Diversified Assets Portfolio of the Northern Institutional Funds of $1,244, $202 and $315, respectively.

(2)		Net of $2,295 in non-reclaimable foreign withholding taxes.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 3 MULTI-MANAGER FUNDS


	MULTI-MANAGER FUNDS

		STATEMENTS OF CHANGES IN NET ASSETS


	MULTI-MANAGER
	INTERNATIONAL					MULTI-MANAGER					MULTI-MANAGER
	EQUITY FUND					MID CAP FUND					SMALL CAP FUND


	SIX MONTHS					SIX MONTHS					SIX MONTHS
	ENDED		PERIOD			ENDED		PERIOD			ENDED			PERIOD
	SEPT. 30,		ENDED			SEPT. 30,		ENDED			SEPT. 30,			ENDED
	2007		MARCH 31,			2007		MARCH 31,			2007			MARCH 31,
Amounts in thousands	(UNAUDITED)		2007 ⁽¹⁾			( UNAUDITED)		2007 ⁽¹⁾			(UNAUDITED)			2007 ⁽¹⁾


OPERATIONS:
Net investment income (loss)		$9,165		$2,358			$246		$478			$(595	)		$(644	)
Net realized gains		44,904		5,961			10,661		649			11,978			4,719
Net change in unrealized appreciation (depreciation)		60,683		93,383			13,390		26,339			(6,291	)		20,639
Net Increase in Net Assets Resulting from Operations		114,752		101,702			24,297		27,466			5,092			24,714

CAPITAL SHARE TRANSACTIONS:
Net increase in net assets resulting from capital share transactions		170,949		988,189			59,978		316,875			51,401			202,928
Net Increase in Net Assets Resulting from Capital Share Transactions		170,949		988,189			59,978		316,875			51,401			202,928

DISTRIBUTIONS PAID:
From net investment income		-		(1,800	)		-		(370	)		-			-
From net realized gains		-		-			-		-			-			(889	)
Total Distributions Paid		-		(1,800	)		-		(370	)		-			(889	)

Total Increase in Net Assets		285,701		1,088,091			84,275		343,971			56,493			226,753
NET ASSETS:
Beginning of period		1,088,091		-			343,971		-			226,753			-
End of period		$1,373,792		$1,088,091			$428,246		$343,971			$283,246			$226,753

Accumulated Undistributed Net Investment Income (Loss)		$9,753		$588			$323		$77			$(595	)		$ -


(1)		Commenced investment operations on June 22, 2006.

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 4 NORTHERN FUNDS SEMIANNUAL REPORT


	MULTI-MANAGER FUNDS

FINANCIAL HIGHLIGHTS


	MULTI-MANAGER
	INTERNATIONAL
	EQUITY FUND
	SIX MONTHS
	ENDED		PERIOD
	SEPT. 30,		ENDED
	2007		MARCH 31,
Selected per share data	(UNAUDITED)		2007 ⁽⁴⁾

Net Asset Value, Beginning of Period		$11.89		$10.00

INCOME FROM INVESTMENT OPERATIONS:
Net investment income		0.09		0.03
Net realized and unrealized gains		1.07		1.89
Total from Investment Operations		1.16		1.92

LESS DISTRIBUTIONS PAID:
From net investment income ⁽¹⁾		-		(0.03	)
Total Distributions Paid		-		(0.03	)

Net Asset Value, End of Period		$13.05		$11.89

Total Return ⁽²⁾		9.76%		19.19%

SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$1,373,792		$1,088,091
Ratio to average net assets of: ⁽³⁾
Expenses, net of reimbursements		1.44%		1.45%
Expenses, before reimbursements		1.44%		1.48%
Net investment income, net of reimbursements		1.48%		0.47%
Net investment income, before reimbursements		1.48%		0.44%
Portfolio Turnover Rate		28.80%		40.59%


(1)		Distributions to shareholders from net investment income include amounts relating to foreign currency transactions which are treated as ordinary income for federal income tax purposes.

(2)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(3)		Annualized for periods less than one year.

(4)		Commenced investment operations on June 22, 2006.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 5 MULTI-MANAGER FUNDS


	MULTI-MANAGER FUNDS

		FINANCIAL HIGHLIGHTS (continued)


	MULTI-MANAGER
	MID CAP FUND
	SIX MONTHS
	ENDED			PERIOD
	SEPT. 30,			ENDED
	2007			MARCH 31,
Selected per share data	(UNAUDITED)			2007 ⁽³⁾

Net Asset Value, Beginning of Period		$11.25			$10.00

INCOME FROM INVESTMENT OPERATIONS:
Net investment income		0.01			0.02
Net realized and unrealized gains		0.74			1.25
Total from Investment Operations		0.75			1.27

LESS DISTRIBUTIONS PAID:
From net investment income		-			(0.02	)
Total Distributions Paid		-			(0.02	)

Net Asset Value, End of Period		$12.00			$11.25

Total Return ⁽¹⁾		6.67	%		12.67	%

SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$428,246			$343,971
Ratio to average net assets of: ⁽²⁾
Expenses, net of reimbursements		1.20	%		1.20	%
Expenses, before reimbursements		1.21	%		1.29	%
Net investment income, net of reimbursements		0.13	%		0.29	%
Net investment income, before reimbursements		0.12	%		0.20	%
Portfolio Turnover Rate		18.90	%		16.59	%


(1)	Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2)	Annualized for periods less than one year.

(3)	Commenced investment operations on June 22, 2006.

See Notes to the Financial Statements.

MULTI - MANAGER FUNDS 6 NORTHERN FUNDS SEMIANNUAL REPORT


	MULTI-MANAGER
	SMALL CAP FUND
	SIX MONTHS
	ENDED			PERIOD
	SEPT. 30,			ENDED
	2007			MARCH 31,
Selected per share data	(UNAUDITED)			2007 ⁽³⁾

Net Asset Value, Beginning of Period		$11.47			$10.00
INCOME (LOSS) FROM INVESTMENT OPERATIONS:
Net investment loss		(0.02	)		(0.03	)
Net realized and unrealized gains		0.29			1.55
Total from Investment Operations		0.27			1.52

LESS DISTRIBUTIONS PAID:
From net realized gains		-			(0.05	)
Total Distributions Paid		-			(0.05	)

Net Asset Value, End of Period		$11.74			$11.47

Total Return ⁽¹⁾		2.44	%		15.25	%
SUPPLEMENTAL DATA AND RATIOS:
Net assets, in thousands, end of period		$283,246			$226,753
Ratio to average net assets of: ⁽²⁾
Expenses, net of reimbursements and credits		1.40	%		1.40	%
Expenses, before reimbursements and credits		1.43	%		1.54	%
Net investment loss, net of reimbursements and credits		(0.45	)%		(0.51	)%
Net investment loss, before reimbursements and credits		(0.48	)%		(0.65	)%
Portfolio Turnover Rate		98.26	%		70.83	%


(1)		Assumes investment at net asset value at the beginning of the period, reinvestment of all dividends and distributions, and a complete redemption of the investment at net asset value at the end of the period. Total return is not annualized for periods less than one year.

(2)		Annualized for periods less than one year.

(3)		Commenced investment operations on June 22, 2006.

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 7 MULTI - MANAGER FUNDS


	MULTI-MANAGER FUNDS

		SCHEDULE OF INVESTMENTS

		MULTI-MANAGER INTERNATIONAL EQUITY FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6%
Australia - 3.0%
Alumina Ltd.		1,114,100		$7,067
AMP Ltd.		271,016		2,538
CSL Ltd.		80,724		7,695
Dyno Nobel Ltd.		3,776,400		9,059
Incitec Pivot Ltd.		58,053		4,412
National Australia Bank Ltd.		76,470		2,698
Newcrest Mining Ltd.		171,350		4,262
Rio Tinto Ltd.		34,703		3,337

				41,068


Belgium - 1.4%
Belgacom S.A.		199,620		9,271
Fortis		82,897		2,443
InBev N.V.		46,740		4,240
UCB S.A.		57,523		3,397

				19,351


Bermuda - 0.6%
Aquarius Platinum Ltd.		62,432		2,196
Credicorp Ltd.		46,300		3,135
SeaDrill Ltd. *		147,500		3,317

				8,648


Brazil - 1.1%
Centrais Eletricas Brasileiras S.A. ADR		294,000		4,124
Centrais Eletricas Brasileiras S.A.		300,432		4,409
Cia Vale do Rio Doce ADR		110,800		3,759
Unibanco - Uniao de Bancos Brasileiros S.A. GDR		25,500		3,355

				15,647


Canada - 4.6%
Barrick Gold Corp.		498,840		20,093
Gammon Gold, Inc. *		161,301		1,927
HudBay Minerals, Inc. *		54,300		1,407
Inmet Mining Corp.		15,100		1,516
Ivanhoe Mines Ltd. *		281,600		3,675
Kinross Gold Corp. *		192,670		2,881
Novagold Resources, Inc. *		394,150		6,507
OPTI Canada, Inc. *		285,850		5,356
Patheon, Inc. *		387,000		1,207
Petro-Canada		72,050		4,135
Rogers Communications, Inc., Class B		131,900		6,011
Suncor Energy, Inc.		65,600		6,220
Teck Cominco Ltd., Class B		35,600		1,692

				62,627


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% — CONTINUED
China - 0.8%
China Coal Energy Co., H Shares		2,042,000		$6,070
China Communications Construction Co. Ltd., H Shares		1,630,000		3,876
Synear Food Holdings Ltd.		1,177,000		1,640

				11,586


Colombia - 0.2%
BanColombia S.A. ADR		72,300		2,505

Denmark - 0.8%
FLSmidth & Co. A/S		64,850		6,902
Novo-Nordisk A/S, Class B		28,170		3,403

				10,305


Egypt - 0.2%
Orascom Construction Industries GDR		14,673		2,486
Orascom Construction Industries GDR (London Exchange)		4,950		838

				3,324


Finland - 2.4%
Nokia OYJ		348,539		13,262
Outokumpu Technology OYJ		89,888		6,350
Stora Enso OYJ (Registered)		579,100		11,290
Wartsila OYJ, Class B		30,444		2,088

				32,990


France - 10.5%
Alcatel-Lucent		1,258,054		12,928
Alcatel-Lucent ADR		419,000		4,265
Alstom		45,641		9,287
Areva S.A.		3,410		3,452
BNP Paribas		40,093		4,391
Business Objects S.A. ADR *		80,125		3,595
Carrefour S.A.		125,244		8,782
Casino Guichard Perrachon S.A.		17,886		1,877
Cie de Saint-Gobain		36,418		3,804
Compagnie Generale de Geophysique-Veritas *		16,407		5,366
France Telecom S.A.		55,107		1,848
Gemalto N.V. *		469,450		13,615
L’Oreal S.A.		35,026		4,599
Neopost S.A.		16,691		2,356
PPR		20,510		3,862
Sanofi-Aventis		88,685		7,516
Suez S.A.		117,432		6,922
Technip S.A.		35,300		3,159
Thales S.A.		167,520		9,829

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 8 NORTHERN FUNDS SEMIANNUAL REPORT




SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% — CONTINUED
France - 10.5% — (continued)
Total S.A., Class B *		166,402		$13,542
Total S.A. ADR		47,900		3,881
Veolia Environment		40,322		3,475
Vivendi		264,904		11,191

				143,542


Germany - 7.0%
Allianz S.E. (Registered)		53,160		12,431
BASF A.G.		12,300		1,703
Bayer A.G.		52,526		4,185
Deutsche Bank A.G. (Registered)		36,330		4,686
Deutsche Postbank A.G.		39,672		2,915
Deutsche Telekom A.G. (Registered)		161,720		3,181
GEA Group A.G. *		76,315		2,687
Infineon Technologies A.G. *		66,984		1,156
Merck KGaA		12,105		1,462
Metro A.G.		107,930		9,757
Muenchener Rueckversicherungs A.G. (Registered)		18,474		3,553
Premiere A.G. *		484,100		10,460
SAP A.G.		206,662		12,108
SGL Carbon A.G. *		51,599		2,960
Siemens A.G. (Registered)		85,264		11,733
Solarworld A.G.		51,157		2,948
Stada Arzneimittel A.G.		42,946		2,803
United Internet A.G. (Registered)		139,993		3,155
Wacker Chemie A.G.		10,300		2,413

				96,296


Greece - 0.5%
Hellenic Telecommunications Organization S.A.		119,623		4,439
National Bank of Greece S.A.		41,994		2,679

				7,118


Hong Kong - 0.2%
Cheung Kong Holdings Ltd.		189,828		3,132

India - 0.1%
Infosys Technologies Ltd. ADR		26,200		1,268

Italy - 4.9%
Alleanza Assicurazioni S.p.A.		306,640		4,085
Ansaldo STS S.p.A. *		228,610		3,194
Arnoldo Mondadori Editore S.p.A.		346,220		3,353
Assicurazioni Generali S.p.A.		86,284		3,800
Enel S.p.A.		306,397		3,472
ENI S.p.A.		316,917		11,756


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% — CONTINUED
Italy - 4.9% — (continued)
Mediaset S.p.A.		605,916		$6,261
Telecom Italia S.p.A. (RNC)		8,387,680		20,243
UniCredito Italiano S.p.A.		1,299,530		11,128

				67,292


Japan - 21.4%
Acom Co. Ltd.		89,200		1,991
Bank of Yokohama (The) Ltd.		370,000		2,558
Bridgestone Corp.		109,200		2,418
Canon, Inc.		43,850		2,397
Coca-Cola West Holdings Co. Ltd.		259,800		6,116
Dai Nippon Printing Co. Ltd.		645,000		9,234
Daiichi Sankyo Co. Ltd.		265,900		7,998
Daiwa House Industry Co. Ltd.		233,224		3,048
Daiwa Securities Group, Inc.		425,592		4,060
East Japan Railway Co.		461		3,642
Fanuc Ltd.		40,300		4,115
Fast Retailing Co. Ltd.		33,900		1,960
Fuji Television Network, Inc.		1,820		3,666
FUJIFILM Holdings Corp.		237,500		10,996
Hosiden Corp.		166,500		2,494
Ibiden Co. Ltd.		56,300		4,747
Japan Steel Works Ltd.		112,000		1,862
Japan Tobacco, Inc.		1,000		5,502
Joyo Bank (The) Ltd.		891,450		4,982
JS Group Corp.		123,000		2,143
JSR Corp.		102,000		2,504
Keyence Corp.		16,000		3,557
Kirin Brewery Co. Ltd.		653,000		8,654
Komatsu Ltd.		108,700		3,658
Kose Corp.		191,478		5,092
Marui Co. Ltd.		115,500		1,277
Matsushita Electric Industrial Co. Ltd.		163,000		3,063
MID REIT, Inc.		485		2,313
Millea Holdings, Inc. *		99,000		3,988
Mitsubishi Corp.		104,800		3,326
Mitsubishi Estate Co. Ltd.		249,000		7,143
Mitsubishi UFJ Financial Group, Inc.		533		4,694
Mitsui Engineering & Shipbuilding Co. Ltd.		568,000		3,224
Mitsui-Soko Co. Ltd.		377,587		1,758
NEC Electronics Corp. *		100,000		2,877
New City Residence Investment Corp.		300		1,648
Nippon Commercial Investment Corp.		525		2,284

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 9 MULTI-MANAGER FUNDS


	MULTI-MANAGER FUNDS

		SCHEDULE OF INVESTMENTS

		MULTI-MANAGER INTERNATIONAL EQUITY FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED
Japan - 21.4% – (continued)
Nippon Electric Glass Co. Ltd.		152,000		$2,452
Nippon Oil Corp.		852,000		7,926
Nippon Residential Investment Corp.		312		1,809
Nippon Telegraph & Telephone Corp. ADR		709,450		16,509
Nipponkoa Insurance Co. Ltd.		788,852		6,871
Nomura Holdings, Inc.		512,159		8,601
NTT Data Corp.		942		4,205
NTT DoCoMo, Inc.		1,360		1,945
Pioneer Corp.		173,400		2,130
Promise Co. Ltd.		84,650		2,067
Secom Co. Ltd.		45,500		2,194
Sega Sammy Holdings, Inc.		519,700		6,933
Sekisui House Ltd.		319,000		4,022
Seven & I Holdings Co. Ltd.		332,169		8,558
Sharp Corp.		182,000		3,309
Shin-Etsu Chemical Co. Ltd.		29,000		2,008
Shiseido Co. Ltd.		269,000		5,981
SMC Corp. of Japan		12,218		1,676
Sugi Pharmacy Co. Ltd.		145,510		3,552
Sumco Corp.		54,400		2,220
Sumitomo Bakelite Co. Ltd.		525,836		3,031
Sumitomo Heavy Industries Ltd.		205,000		2,644
Sumitomo Mitsui Financial Group, Inc.		540		4,214
Sumitomo Trust & Banking (The) Co. Ltd.		1,072,757		8,128
Suzuki Motor Corp.		117,422		3,481
T&D Holdings, Inc.		44,650		2,752
Taiheiyo Cement Corp.		394,000		1,501
Takeda Pharmaceutical Co. Ltd.		67,520		4,757
Takefuji Corp.		196,400		3,904
TDK Corp.		19,800		1,740
Tokuyama Corp.		117,000		1,778
Tokyu Land Corp.		288,000		2,895
Toppan Printing Co. Ltd.		349,000		3,600
Toyota Motor Corp.		61,000		3,606
United Urban Investment Corp.		84		579
Wacoal Holdings Corp.		276,000		3,396

				293,963


Mexico - 0.3%
America Movil SAB de C.V. ADR, Series L		58,000		3,712


Netherlands - 5.5%
Aegon N.V.		118,718		2,275
Akzo Nobel N.V.		41,706		3,440


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED
Netherlands - 5.5% – (continued)
Corporate Express		278,372		$3,035
European Aeronautic Defence & Space Co. N.V.		50,624		1,558
Heineken N.V.		132,774		8,721
ING Groep N.V.		192,019		8,531
Koninklijke BAM Groep N.V.		32,798		875
Koninklijke Philips Electronics N.V. (New York Shares)		120,400		5,411
Koninklijke Philips Electronics N.V. *		126,577		5,718
Royal Dutch Shell PLC ADR		144,680		11,878
Royal Dutch Shell PLC, Class A (Amsterdam Exchange)		158,774		6,562
Royal Dutch Shell PLC, Class B		85,529		3,520
Royal KPN N.V.		469,467		8,154
SBM Offshore N.V.		58,451		2,300
Unilever N.V. CVA		128,180		3,961

				75,939


Norway - 1.0%
Renewable Energy Corp. A/S *		54,250		2,500
Statoil ASA		231,397		7,887
Yara International ASA		90,200		2,853

				13,240


Papua New Guinea - 0.3%
Lihir Gold Ltd. *		1,095,100		3,833


Portugal - 0.4%
Energias de Portugal S.A.		334,883		1,960
Energias de Portugal S.A. ADR		49,050		2,860

				4,820


Russia - 0.2%
Evraz Group S.A. GDR (Registered)		45,537		2,883
Evraz Group S.A. GDR (Registered) (London Exchange)		7,950		503

				3,386


Singapore - 0.5%
DBS Group Holdings Ltd.		450,725		6,552


South Africa - 2.3%
AngloGold Ashanti Ltd. ADR		260,700		12,224
Gold Fields Ltd.		507,300		9,162
Impala Platinum Holdings Ltd.		282,079		9,849

				31,235


South Korea - 2.7%
Hyundai Engineering & Construction Co. Ltd. *		30,503		2,913

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 10 NORTHERN FUNDS SEMIANNUAL REPORT




SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED
South Korea - 2.7% – (continued)
Hyundai Motor Co. Ltd.		35,170		$2,840
Kookmin Bank ADR		46,270		3,794
Korea Electric Power Corp. ADR		325,010		7,524
KT Corp. ADR		492,090		12,327
Samsung Electronics Co. Ltd. GDR ⁽¹⁾		9,470		2,971
Samsung Heavy Industries Co. Ltd.		9,160		487
Samsung SDI Co. Ltd. GDR ⁽¹⁾		271,100		4,547

				37,403


Spain - 1.2%
Gamesa Corp. Tecnologica S.A.		67,078		2,743
Repsol YPF S.A.		218,084		7,797
Tecnicas Reunidas S.A.		36,941		2,728
Telefonica S.A.		135,621		3,800

				17,068


Sweden - 1.7%
Nordea Bank AB		497,583		8,680
Ssab Svenskt Stal AB, Class A		118,300		4,383
Telefonaktiebolaget LM Ericsson, Class B		2,576,165		10,325

				23,388


Switzerland - 3.2%
ABB Ltd. (Registered)		108,362		2,856
Credit Suisse Group		56,492		3,754
Julius Baer Holding A.G. (Registered)		58,869		4,405
Nestle S.A. (Registered)		20,154		9,061
Novartis A.G. (Registered)		110,297		6,091
Roche Holding A.G. (Genusschein)		41,368		7,507
Swatch Group A.G. (Registered)		76,448		4,899
Swiss Reinsurance (Registered)		14,639		1,305
Syngenta A.G. (Registered)		6,368		1,374
Zurich Financial Services A.G. (Registered)		6,426		1,929

				43,181


Taiwan - 0.9%
Chunghwa Telecom Co. Ltd. ADR		692,174		12,791


Thailand - 0.1%
Bangkok Bank PCL (Registered)		568,846		1,909


United Kingdom - 13.0%
Anglo American PLC		37,528		2,524
Autonomy Corp. PLC *		168,064		2,960
BAE Systems PLC		562,960		5,682
Benfield Group Ltd.		452,241		2,682
Berkeley Group Holdings PLC *		63,785		1,871
BP PLC		977,750		11,349


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 94.6% – CONTINUED
United Kingdom - 13.0% – (continued)
BP PLC ADR		70,940		$4,920
BT Group PLC		380,953		2,392
Cadbury Schweppes PLC		893,854		10,366
Carnival PLC		27,736		1,324
Dawnay Day Treveria PLC		1,638,537		2,333
Diageo PLC		393,140		8,636
GlaxoSmithKline PLC		563,823		14,958
Imperial Chemical Industries PLC		347,408		4,633
International Power PLC		956,837		8,831
J Sainsbury PLC		434,617		5,133
John Wood Group PLC		400,497		3,246
Kingfisher PLC		2,665,312		9,747
Land Securities Group PLC		62,779		2,160
Lloyds TSB Group PLC		301,158		3,341
Lonmin PLC		48,140		3,593
Prudential PLC		271,475		4,173
Reckitt Benckiser PLC		45,986		2,701
Rio Tinto PLC		83,550		7,225
Rolls-Royce Group PLC *		290,103		3,100
Royal Bank of Scotland Group PLC		409,987		4,402
Scottish & Southern Energy PLC		87,490		2,704
Smiths Group PLC		84,047		1,838
Standard Chartered PLC		206,146		6,746
Vodafone Group PLC		2,268,900		8,191
Vodafone Group PLC ADR		296,971		10,780
Whitbread PLC		101,569		3,369
WM Morrison Supermarkets PLC		426,110		2,460
Woolworths Group PLC		1,142,972		415
WPP Group PLC		586,080		7,935

				178,720


United States - 1.6%
Apex Silver Mines Ltd. *		338,600		6,586
Newmont Mining Corp.		271,650		12,151
NII Holdings, Inc. *		30,500		2,505

				21,242


Total Common Stocks


(Cost $1,145,632)				1,299,081

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 11 MULTI-MANAGER FUNDS


	MULTI-MANAGER FUNDS

		SCHEDULE OF INVESTMENTS

		MULTI-MANAGER INTERNATIONAL EQUITY FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
PREFERRED STOCKS - 0.5%
Germany - 0.4%
Henkel KgaA		120,326		$6,198


South Korea - 0.1%
Samsung SDI Co. Ltd.		18,390		713


Total Preferred Stocks


(Cost $6,561)				6,911


INVESTMENT COMPANY - 3.7%
Northern Institutional Funds - Diversified Assets Portfolio ⁽²⁾		51,241,896		51,242



Total Investment Company

(Cost $51,242)				51,242


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 0.5%
ABN-Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$6,933		6,933


Total Short-Term Investment


(Cost $6,933)				6,933



Total Investments - 99.3%


(Cost $1,210,368)				1,364,167

Other Assets less Liabilities - 0.7%				9,625


NET ASSETS - 100.0%			$	1,373,792




(1)		Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly sold without registration under the Securities Act of 1933. The value of these securities is determined by valuations supplied by a pricing service or brokers, or if not available, in accordance with procedures established by the Trustees of Northern Funds.

(2)		Northern Trust Investments, N.A. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds - Diversified Assets Portfolio.

*		Non-Income Producing Security

		Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Multi-Manager International Equity Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		9.7	%
Consumer Staples		8.6
Energy		8.4
Financials		13.3
Health Care		4.1
Industrials		22.0
Information Technology		7.9
Materials		14.2
Telecommunication Services		8.0
Utilities		3.8


Total		100.0	%

At September 30, 2007, the Multi-Manager International Equity Fund’s investments were denominated in the following currencies:


	% OF LONG-TERM
CONCENTRATION BY CURRENCY	INVESTMENTS
U.S. Dollar		47.8	%
Euro		21.2
Japanese Yen		14.9
British Pound		7.4
All other currencies less than 5%		8.7


Total		100.0	%

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 12 NORTHERN FUNDS SEMIANNUAL REPORT




SEPTEMBER 30, 2007 (UNAUDITED)

At September 30, 2007, the Multi-Manager International Equity Fund had outstanding forward foreign currency exchange contracts as follows:


	AMOUNT		IN	AMOUNT
CONTRACTS	(LOCAL		EXCHANGE	(LOCAL			UNREALIZED
TO DELIVER	CURRENCY)		FOR	CURRENCY)		SETTLEMENT	GAIN (LOSS)
CURRENCY	(000S)		CURRENCY	(000S)		DATE	(000S)
British Pound		148	U.S. Dollar		304	10/1/07		$ -
Euro		1,231	U.S. Dollar		1,757	10/1/07		(1	)
Euro		296	U.S. Dollar		418	10/1/07		(4	)
U.S. Dollar		1,937	British Pound		947	10/1/07		(1	)
U.S. Dollar		3,982	Japanese Yen		459,019	10/1/07		20
Australian Dollar		9	U.S. Dollar		8	10/2/07	-
Euro		2,990	U.S. Dollar		4,247	10/2/07		(20	)
U.S. Dollar		2,198	South African Rand		15,130	10/2/07		3


Total								$(3	)

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 13 MULTI-MANAGER FUNDS


	MULTI-MANAGER FUNDS

		SCHEDULE OF INVESTMENTS

		MULTI-MANAGER MID CAP FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.6%
Advertising - 0.4%
Focus Media Holding Ltd. ADR *		32,200		$1,868


Aerospace/Defense - 1.6%
L-3 Communications Holdings, Inc.		57,275		5,850
Spirit Aerosystems Holdings, Inc., Class A *		29,700		1,157

				7,007


Apparel - 1.1%
Coach, Inc. *		71,120		3,362
Jones Apparel Group, Inc.		42,900		907
Kellwood Co.		24,600		419

				4,688


Auto Parts & Equipment - 0.9%
American Axle & Manufacturing Holdings, Inc.		78,300		1,977
ArvinMeritor, Inc.		33,600		565
Goodyear Tire & Rubber (The) Co. *		20,400		620
TRW Automotive Holdings Corp. *		21,300		675

				3,837


Banks - 3.4%
Associated Banc-Corp		25,800		764
BancorpSouth, Inc.		28,200		685
Comerica, Inc.		59,800		3,067
Commerce Bancorp, Inc. of New Jersey		67,055		2,600
East-West Bancorp, Inc.		51,760		1,861
First Horizon National Corp.		15,600		416
FirstMerit Corp.		55,400		1,095
Huntington Bancshares, Inc. of Ohio		75,100		1,275
KeyCorp		43,200		1,397
UnionBanCal Corp.		24,500		1,431

				14,591


Beverages - 1.5%
Coca-Cola Enterprises, Inc.		52,600		1,274
Hansen Natural Corp. *		39,600		2,245
Molson Coors Brewing Co., Class B		9,600		957
Pepsi Bottling Group, Inc.		50,100		1,862

				6,338


Biotechnology - 0.6%
InterMune, Inc. *		15,500		297
Vertex Pharmaceuticals, Inc. *		28,000		1,075
WuXi PharmaTech Cayman, Inc. *		46,200		1,303

				2,675


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.6% – CONTINUED
Building Materials - 0.8%
Lennox International, Inc.		63,800		$2,157
Masco Corp.		47,400		1,098

				3,255


Chemicals - 3.6%
Cytec Industries, Inc.		12,700		869
Lubrizol Corp.		26,900		1,750
Lyondell Chemical Co.		45,400		2,104
Olin Corp.		87,900		1,967
PolyOne Corp. *		60,300		450
PPG Industries, Inc.		29,500		2,229
RPM International, Inc.		43,800		1,049
Schulman (A.), Inc.		30,200		596
Sensient Technologies Corp.		55,300		1,597
Sherwin-Williams (The) Co.		21,000		1,380
Spartech Corp.		39,600		676
Valspar Corp.		23,900		650

				15,317


Commercial Services - 2.5%
Advisory Board (The) Co. *		24,000		1,403
Corporate Executive Board Co.		24,500		1,819
Donnelley (R.R.) & Sons Co.		48,800		1,784
Manpower, Inc.		25,935		1,669
Resources Connection, Inc.		57,900		1,340
Strayer Education, Inc.		12,700		2,142
TravelCenters of America LLC *		2,470		81
United Rentals, Inc. *		18,800		605

				10,843


Computers - 4.8%
Brocade Communications Systems, Inc. *		188,700		1,615
Cognizant Technology Solutions Corp., Class A *		68,765		5,485
Computer Sciences Corp. *		43,800		2,449
Factset Research Systems, Inc.		36,245		2,485
Lexmark International, Inc., Class A *		42,400		1,761
Micros Systems, Inc. *		18,380		1,196
Research In Motion Ltd. *		30,300		2,986
Seagate Technology		105,200		2,691

				20,668


Cosmetics/Personal Care - 0.3%
Bare Escentuals, Inc. *		51,400		1,278

Distribution/Wholesale - 1.6%
Fastenal Co.		77,045		3,499
Grainger (W.W.), Inc.		15,400		1,404

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 14 NORTHERN FUNDS SEMIANNUAL REPORT




SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.6% – CONTINUED
Distribution/Wholesale - 1.6% – (continued)
LKQ Corp. *		58,690		$2,043

				6,946


Diversified Financial Services - 3.9%
Affiliated Managers Group, Inc. *		35,060		4,471
AmeriCredit Corp. *		41,200		724
CIT Group, Inc.		59,100		2,376
CME Group, Inc.		3,942		2,315
Eaton Vance Corp.		39,890		1,594
Financial Federal Corp.		59,000		1,653
GFI Group, Inc. *		11,500		990
IntercontinentalExchange, Inc. *		5,400		820
MF Global Ltd. *		28,200		818
Price (T. Rowe) Group, Inc.		16,500		919

				16,680


Electric - 4.0%
Alliant Energy Corp.		39,700		1,521
American Electric Power Co., Inc.		40,500		1,866
Centerpoint Energy, Inc.		50,400		808
DTE Energy Co.		24,200		1,172
Energy East Corp.		82,900		2,243
OGE Energy Corp.		10,100		334
Pepco Holdings, Inc.		84,500		2,288
Pinnacle West Capital Corp.		35,100		1,387
Puget Energy, Inc.		37,000		906
TECO Energy, Inc.		65,900		1,083
Westar Energy, Inc.		68,400		1,680
Xcel Energy, Inc.		85,900		1,850

				17,138


Electronics - 2.3%
Amphenol Corp., Class A		72,595		2,886
Flir Systems, Inc. *		35,610		1,972
Kemet Corp. *		123,100		905
Sanmina-SCI Corp. *		58,200		123
Technitrol, Inc.		33,600		906
Trimble Navigation Ltd. *		50,715		1,989
Vishay Intertechnology, Inc. *		76,700		999

				9,780


Engineering & Construction - 0.4%
Foster Wheeler Ltd. *		12,383		1,626


Environmental Control - 0.9%
Stericycle, Inc. *		68,710		3,927


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.6% – CONTINUED
Food - 0.9%
Del Monte Foods Co.		36,900		$388
Seaboard Corp.		900		1,764
SUPERVALU, Inc.		46,200		1,802

				3,954


Forest Products & Paper - 0.6%
International Paper Co.		74,800		2,683
MeadWestvaco Corp.		1,600		47

				2,730

Gas - 0.8%
AGL Resources, Inc.		39,800		1,577
Nicor, Inc.		21,000		901
WGL Holdings, Inc.		21,600		732

				3,210


Hand/Machine Tools - 0.9%
Black & Decker Corp.		26,400		2,199
Lincoln Electric Holdings, Inc.		18,815		1,460

				3,659


Healthcare - Products - 5.7%
Bard (C.R.), Inc.		24,000		2,116
Datascope Corp.		19,600		663
Dentsply International, Inc.		58,945		2,454
Hologic, Inc. *		42,145		2,571
IDEXX Laboratories, Inc. *		31,710		3,475
Intuitive Surgical, Inc. *		12,400		2,852
Palomar Medical Technologies, Inc. *		22,400		638
Resmed, Inc. *		68,585		2,940
Stryker Corp.		48,060		3,305
Thoratec Corp. *		43,000		890
Varian Medical Systems, Inc. *		59,295		2,484

				24,388


Healthcare - Services - 2.0%
athenahealth, Inc. *		1,720		58
Covance, Inc. *		46,165		3,596
Coventry Health Care, Inc. *		31,615		1,967
Healthways, Inc. *		52,400		2,828
Universal Health Services, Inc., Class B		3,400		185

				8,634


Home Furnishings - 0.8%
Ethan Allen Interiors, Inc.		53,500		1,749
Whirlpool Corp.		17,900		1,595

				3,344

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 15 MULTI-MANAGER FUNDS


	MULTI-MANAGER FUNDS

		SCHEDULE OF INVESTMENTS

		MULTI-MANAGER MID CAP FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.6% – CONTINUED
Household Products/Wares - 1.0%
American Greetings Corp., Class A		31,900		$842
Blyth, Inc.		32,700		669
Church & Dwight, Inc.		31,355		1,475
Jarden Corp. *		1,679		52
Tupperware Brands Corp.		45,300		1,426

				4,464


Insurance - 6.7%
Assurant, Inc.		23,500		1,257
CIGNA Corp.		20,700		1,103
Cincinnati Financial Corp.		32,800		1,421
Commerce Group, Inc.		72,100		2,125
eHealth, Inc. *		58,400		1,618
Everest Re Group Ltd.		30,600		3,373
Genworth Financial, Inc., Class A		63,972		1,966
LandAmerica Financial Group, Inc.		20,100		783
Lincoln National Corp.		34,900		2,302
MBIA, Inc.		26,700		1,630
MGIC Investment Corp.		25,800		834
National Interstate Corp.		45,200		1,392
Nationwide Financial Services, Inc., Class A		40,200		2,164
PMI Group (The), Inc.		17,800		582
Presidential Life Corp.		19,600		332
Radian Group, Inc.		15,100		351
SAFECO Corp.		53,300		3,263
XL Capital Ltd., Class A		29,200		2,313

				28,809


Internet - 3.1%
Akamai Technologies, Inc. *		102,895		2,956
Baidu.com ADR *		6,400		1,854
Cogent Communications Group, Inc. *		52,300		1,221
Ctrip.com International Ltd. ADR		55,800		2,890
Digital River, Inc. *		47,665		2,133
Mercadolibre, Inc. *		28,176		1,032
NetFlix, Inc. *		49,000		1,015

				13,101


Iron/Steel - 1.3%
Allegheny Technologies, Inc.		18,800		2,067
Steel Dynamics, Inc.		30,200		1,411
United States Steel Corp.		21,600		2,288

				5,766


Leisure Time - 0.6%
Brunswick Corp.		30,600		700


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.6% – CONTINUED
Leisure Time - 0.6% – (continued)
Polaris Industries, Inc.		44,300		$1,932

				2,632


Lodging - 0.8%
Home Inns & Hotels Management, Inc. ADR *		29,900		1,041
Wynn Resorts Ltd.		15,900		2,505

				3,546


Machinery - Construction & Mining - 1.1%
Joy Global, Inc.		91,220		4,639


Machinery - Diversified - 1.3%
Applied Industrial Technologies, Inc.		61,900		1,908
Flowserve Corp.		16,700		1,272
IDEX Corp.		59,615		2,170

				5,350


Media - 0.5%
Belo Corp., Class A		43,800		760
Gannett Co., Inc.		20,200		883
Tribune Co.		10,107		276

				1,919


Metal Fabrication/Hardware - 0.8%
Precision Castparts Corp.		12,700		1,879
Timken (The) Co.		40,800		1,516

				3,395


Miscellaneous Manufacturing - 2.4%
Donaldson Co., Inc.		48,335		2,019
Leggett & Platt, Inc.		70,200		1,345
Parker Hannifin Corp.		30,700		3,433
Roper Industries, Inc.		51,790		3,392

				10,189


Office Furnishings - 0.6%
Steelcase, Inc., Class A		134,100		2,411


Office/Business Equipment - 0.6%
IKON Office Solutions, Inc.		55,700		716
Xerox Corp. *		103,900		1,801

				2,517


Oil & Gas - 3.4%
Apache Corp.		19,490		1,755
Hess Corp.		23,400		1,557
Patterson-UTI Energy, Inc.		102,000		2,302
Sunoco, Inc.		39,800		2,817
Tesoro Corp.		51,800		2,384

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 16 NORTHERN FUNDS SEMIANNUAL REPORT




SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.6% – CONTINUED
Oil & Gas - 3.4% – (continued)
XTO Energy, Inc.		58,590		$3,623

				14,438


Oil & Gas Services - 4.9%
Compagnie Generale de Geophysique-Veritas ADR *		36,775		2,394
Core Laboratories N.V. *		14,500		1,847
FMC Technologies, Inc. *		102,360		5,902
Oceaneering International, Inc. *		31,000		2,350
SEACOR Holdings, Inc. *		15,600		1,483
Smith International, Inc.		100,740		7,193

				21,169


Packaging & Containers - 0.2%
Sonoco Products Co.		21,700		655


Pharmaceuticals - 0.8%
CV Therapeutics, Inc. *		32,400		291
King Pharmaceuticals, Inc. *		123,800		1,451
Mylan Laboratories, Inc.		47,300		755
Watson Pharmaceuticals, Inc. *		29,000		939

				3,436


Real Estate - 0.4%
Jones Lang LaSalle, Inc.		17,325		1,780


Real Estate Investment Trusts - 2.2%
American Home Mortgage Investment Corp.		25,700		9
Anthracite Capital, Inc.		52,100		474
Capital Trust, Inc. of New York, Class A		22,400		795
Entertainment Properties Trust		14,000		711
Equity Inns, Inc.		22,700		513
FelCor Lodging Trust, Inc.		26,600		530
Hospitality Properties Trust		49,500		2,012
HRPT Properties Trust		122,500		1,212
Newcastle Investment Corp.		25,100		442
Parkway Properties, Inc. of Maryland		14,800		653
RAIT Financial Trust		24,700		204
Sunstone Hotel Investors, Inc.		68,300		1,751

				9,306


Retail - 5.9%
Borders Group, Inc.		10,300		137
Brinker International, Inc.		49,100		1,347
Chipotle Mexican Grill, Inc., Class B *		21,700		2,322
Darden Restaurants, Inc.		29,300		1,227
Dick’s Sporting Goods, Inc. *		57,790		3,881
Dillard’s, Inc., Class A		6,700		146


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.6% – CONTINUED
Retail - 5.9% – (continued)
Family Dollar Stores, Inc.		34,300		$911
O’Reilly Automotive, Inc. *		108,035		3,610
P.F. Chang’s China Bistro, Inc. *		54,300		1,607
Panera Bread Co., Class A *		48,335		1,972
PetSmart, Inc.		85,815		2,738
Ruby Tuesday, Inc.		71,600		1,313
Tractor Supply Co. *		39,175		1,806
Urban Outfitters, Inc. *		39,100		852
Zumiez, Inc. *		32,800		1,455

				25,324


Savings & Loans - 0.1%
Washington Federal, Inc.		22,000		578


Semiconductors - 1.5%
Cavium Networks, Inc. *		35,500		1,154
Hittite Microwave Corp. *		24,600		1,086
Marvell Technology Group Ltd. *		108,200		1,771
MKS Instruments, Inc. *		47,754		908
Novellus Systems, Inc. *		22,100		603
Photronics, Inc. *		15,400		176
Zoran Corp. *		40,500		818

				6,516


Software - 6.9%
Adobe Systems, Inc. *		69,045		3,014
Ansys, Inc. *		130,720		4,467
Cerner Corp. *		68,295		4,085
Citrix Systems, Inc. *		84,420		3,404
Electronic Arts, Inc. *		41,840		2,343
Fiserv, Inc. *		49,760		2,531
Global Payments, Inc.		56,005		2,476
Intuit, Inc. *		83,005		2,515
Salesforce.com, Inc. *		38,000		1,950
SYNNEX Corp. *		28,000		576
Take-Two Interactive Software, Inc. *		62,500		1,067
VMware, Inc., Class A *		11,302		961

				29,389


Telecommunications - 1.4%
Amdocs Ltd. *		86,095		3,202
Clearwire Corp., Class A *		39,500		965
Infinera Corp. *		76,503		1,541
USA Mobility, Inc. *		26,300		444

				6,152

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 17 MULTI-MANAGER FUNDS


MULTI - MANAGER FUNDS

	SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)

	MULTI-MANAGER MID CAP FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 98.6% – CONTINUED
Toys, Games & Hobbies - 0.7%
Hasbro, Inc.		64,700		$1,804
Mattel, Inc.		53,100		1,246

				3,050


Transportation - 3.1%
C.H. Robinson Worldwide, Inc.		50,800		2,758
Con-way, Inc.		28,400		1,306
Expeditors International Washington, Inc.		62,295		2,947
Laidlaw International, Inc.		28,600		1,007
Overseas Shipholding Group		27,200		2,090
Ryder System, Inc.		17,100		838
Tidewater, Inc.		30,700		1,929
YRC Worldwide, Inc. *		21,000		574

				13,449


Total Common Stocks


(Cost $382,632)				422,361


INVESTMENT COMPANY - 1.4%
Northern Institutional Funds - Diversified Assets Portfolio ⁽¹⁾		6,036,000		6,036

Total Investment Company


(Cost $6,036)				6,036


	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 0.4%
ABN-Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$1,725		1,725

Total Short-Term Investment


(Cost $1,725)				1,725



Total Investments - 100.4%


(Cost $390,393)				430,122
Liabilities less Other Assets - (0.4)%				(1,876	)


NET ASSETS - 100.0%				$428,246




(1)		Northern Trust Investments, N.A. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds - Diversified Assets Portfolio.

*		Non-Income Producing Security

		Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Multi-Manager Mid Cap Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		15.7	%
Consumer Staples		3.1
Energy		9.4
Financials		16.7
Health Care		10.5
Industrials		15.5
Information Technology		18.2
Materials		5.5
Telecommunication Services		0.6
Utilities		4.8


Total		100.0	%

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 18 NORTHERN FUNDS SEMIANNUAL REPORT


	MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


MULTI-MANAGER SMALL CAP FUND


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0%
Advertising - 0.2%
Greenfield Online, Inc. *		18,100		$276
ValueVision Media, Inc., Class A *		20,200		150

				426


Aerospace/Defense - 0.4%
Aerovironment, Inc. *		5,600		129
Curtiss-Wright Corp.		4,400		209
Kaman Corp.		5,600		193
Triumph Group, Inc.		2,700		221
United Industrial Corp. of New York		3,500		263

				1,015


Agriculture - 0.6%
Alliance One International, Inc. *		91,869		601
Andersons (The), Inc.		8,215		395
Universal Corp. of Virginia		12,100		592
Vector Group Ltd.		8,480		190

				1,778


Airlines - 0.1%
Allegiant Travel Co. *		4,400		133
Pinnacle Airlines Corp. *		16,800		269

				402


Apparel - 1.0%
CROCS, Inc. *		35,380		2,379
Deckers Outdoor Corp. *		900		99
Kellwood Co.		3,120		53
Perry Ellis International, Inc. *		7,571		210

				2,741


Auto Manufacturers - 0.0%
Wabash National Corp.		3,100		35


Auto Parts & Equipment - 1.2%
Accuride Corp. *		7,400		90
Aftermarket Technology Corp. *		40,000		1,269
Amerigon, Inc. *		7,200		125
ArvinMeritor, Inc.		19,000		319
Cooper Tire & Rubber Co.		32,900		803
Exide Technologies *		21,700		141
Hayes Lemmerz International, Inc. *		39,094		163
Lear Corp. *		10,800		347
Modine Manufacturing Co.		4,200		112
Standard Motor Products, Inc.		8,400		79
Superior Industries International, Inc.		3,100		67

				3,515


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Banks - 5.8%
Banco Latinoamericano de Exportaciones S.A., Class E		12,800		$233
Bank Mutual Corp.		28,300		334
Bank of the Ozarks, Inc.		2,400		73
Boston Private Financial Holdings, Inc.		50,000		1,392
Cathay General Bancorp		65,100		2,097
City National Corp. of California		3,900		271
Community Bancorp of Nevada *		5,800		146
CVB Financial Corp.		126,500		1,480
East-West Bancorp, Inc.		2,100		75
First BanCorp of Puerto Rico		7,400		70
First Community Bancorp, Inc. of California		1,300		71
FirstMerit Corp.		32,900		650
Fremont General Corp.		23,000		90
Greater Bay Bancorp		1,725		48
Green Bankshares, Inc.		3,500		128
Hanmi Financial Corp.		29,288		454
Home Bancshares, Inc.		3,200		70
International Bancshares Corp.		67,000		1,454
Pacific Capital Bancorp		8,200		216
Preferred Bank of California		6,972		274
Prosperity Bancshares, Inc.		34,500		1,144
Signature Bank of New York *		22,870		806
South Financial Group (The), Inc.		10,700		243
Superior Bancorp *		61,800		546
Susquehanna Bancshares, Inc.		3,300		66
SVB Financial Group *		18,100		857
Texas Capital Bancshares, Inc. *		15,200		330
Trustco Bank Corp. of New York		153,900		1,682
Umpqua Holdings Corp.		25,720		515
W. Holding Co., Inc.		277,000		620

				16,435


Beverages - 0.1%
Boston Beer Co., Inc., Class A *		5,600		272


Biotechnology - 2.0%
American Oriental Bioengineering, Inc. *		5,000		56
Applera Corp. - Celera Group *		25,920		364
Arqule, Inc. *		14,300		102
Cambrex Corp.		10,600		115
Exelixis, Inc. *		18,300		194
Genomic Health, Inc. *		4,200		81
Integra LifeSciences Holdings Corp. *		45,330		2,202

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 19 MULTI - MANAGER FUNDS


	MULTI-MANAGER FUNDS

		SCHEDULE OF INVESTMENTS

		MULTI-MANAGER SMALL CAP FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Biotechnology - 2.0% – (continued)
Invitrogen Corp. *		1,200		$98
Kosan Biosciences, Inc. *		12,800		64
Lifecell Corp. *		30,260		1,137
Martek Biosciences Corp. *		9,300		270
Millennium Pharmaceuticals, Inc. *		60,019		609
Omrix Biopharmaceuticals, Inc. *		4,228		149
Savient Pharmaceuticals, Inc. *		15,497		226

				5,667


Building Materials - 0.2%
Apogee Enterprises, Inc.		8,000		207
Goodman Global, Inc. *		9,100		217
NCI Building Systems, Inc. *		3,000		130

				554


Chemicals - 2.9%
Airgas, Inc.		34,350		1,774
Arch Chemicals, Inc.		2,400		113
CF Industries Holdings, Inc.		24,232		1,839
Ferro Corp.		3,900		78
Innophos Holdings, Inc.		3,900		59
Innospec, Inc.		16,168		368
Metabolix, Inc. *		2,300		56
Minerals Technologies, Inc.		5,000		335
OM Group, Inc. *		6,468		342
Penford Corp.		900		34
Rockwood Holdings, Inc. *		11,300		405
RPM International, Inc.		57,500		1,377
Terra Industries, Inc. *		21,608		675
UAP Holding Corp.		26,140		820

				8,275


Coal - 0.1%
Alpha Natural Resources, Inc. *		9,600		223


Commercial Services - 8.2%
ABM Industries, Inc.		11,100		222
Albany Molecular Research, Inc. *		14,807		224
AMN Healthcare Services, Inc. *		10		-
Arbitron, Inc.		1,300		59
Avis Budget Group, Inc. *		8,900		204
Bowne & Co., Inc.		38,200		636
Career Education Corp. *		8,900		249
CDI Corp.		2,400		67
Chemed Corp.		19,600		1,218
Coinstar, Inc. *		56,480		1,817


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Commercial Services - 8.2% – (continued)
Corinthian Colleges, Inc. *		76,850		$1,223
Corvel Corp. *		2,616		61
CPI Corp.		2,729		105
Deluxe Corp.		2,800		103
DeVry, Inc.		12,800		474
DynCorp International, Inc., Class A *		28,834		666
Electro Rent Corp.		4,900		69
Emergency Medical Services Corp. *		2,600		79
Euronet Worldwide, Inc. *		38,810		1,155
FirstService Corp. *		48,060		1,494
Gartner, Inc. *		3,100		76
Geo Group (The), Inc. *		44,790		1,326
Healthspring, Inc. *		7,300		142
Heartland Payment Systems, Inc.		44,820		1,152
Huron Consulting Group, Inc. *		16,770		1,218
Integrated Electrical Services, Inc. *		11,600		297
ITT Educational Services, Inc. *		500		61
Kforce, Inc. *		84,740		1,090
Labor Ready, Inc. *		17,776		329
MPS Group, Inc. *		12,300		137
Navigant Consulting, Inc. *		93,000		1,177
On Assignment, Inc. *		55,880		522
PharmaNet Development Group, Inc. *		7,900		229
PHH Corp. *		6,700		176
Pre-Paid Legal Services, Inc. *		9,400		521
Premier Exhibitions, Inc. *		13,200		199
Resources Connection, Inc.		28,740		665
Sotheby’s		5,800		277
Spherion Corp. *		45,011		372
Stewart Enterprises, Inc., Class A		8,500		65
TeleTech Holdings, Inc. *		12,180		291
TNS, Inc.		17,900		287
VistaPrint Ltd. *		31,940		1,194
WNS Holdings Ltd. ADR *		73,400		1,263

				23,191


Computers - 3.9%
Agilysys, Inc.		13,120		222
Ansoft Corp. *		6,231		205
CACI International, Inc., Class A *		55,620		2,842
CIBER, Inc. *		17,013		133
Diebold, Inc.		1,300		59
Electronics for Imaging, Inc. *		61,500		1,652

See Notes to the Financial Statements.

MULTI - MANAGER FUNDS 20 NORTHERN FUNDS SEMIANNUAL REPORT




SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS – 96.0% – CONTINUED
Computers - 3.9% – (continued)
Hutchinson Technology, Inc. *		17,100		$421
iGate Corp. *		14,900		128
Immersion Corp. *		33,824		554
Lexmark International, Inc., Class A *		4,700		195
Magma Design Automation, Inc. *		34,400		484
Manhattan Associates, Inc. *		13,100		359
Quantum Corp. *		58,799		200
Radiant Systems, Inc. *		50,220		795
Sigma Designs, Inc. *		13,900		670
Silicon Storage Technology, Inc. *		47,700		153
Stratasys, Inc. *		3,000		83
Synopsys, Inc. *		12,780		346
Syntel, Inc.		2,400		100
Unisys Corp. *		226,000		1,496

				11,097


Cosmetics/Personal Care - 0.1%
Elizabeth Arden, Inc. *		8,200		221

Distribution/Wholesale - 0.8%
Bell Microproducts, Inc. *		15,800		98
Building Material Holding Corp.		6,900		73
Core-Mark Holding Co., Inc. *		4,100		144
Huttig Building Products, Inc. *		74,500		401
LKQ Corp. *		3,730		130
United Stationers, Inc. *		26,200		1,455

				2,301


Diversified Financial Services - 2.1%
Affiliated Managers Group, Inc. *		15,850		2,021
AmeriCredit Corp. *		16,134		284
Delta Financial Corp.		23,400		115
Financial Federal Corp.		3,000		84
GAMCO Investors, Inc., Class A		800		44
International Securities Exchange Holdings, Inc.		2,900		193
Merrill Lynch & Co., Inc.		420		30
National Financial Partners Corp.		29,660		1,571
Ocwen Financial Corp. *		9,100		86
Portfolio Recovery Associates, Inc.		25,900		1,374

				5,802


Electric - 1.5%
Aquila, Inc. *		100		-
Central Vermont Public Service Corp.		7,550		276
El Paso Electric Co. *		13,600		315
Idacorp, Inc.		800		26


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Electric - 1.5% – (continued)
ITC Holdings Corp.		26,500		$1,313
Otter Tail Corp.		8,300		296
Pike Electric Corp. *		59,700		1,120
Portland General Electric Co.		22,030		613
Westar Energy, Inc.		15,035		369

				4,328


Electrical Components & Equipment - 1.2%
Ametek, Inc.		28,300		1,223
Belden, Inc.		11,922		559
Encore Wire Corp.		6,900		173
GrafTech International Ltd. *		52,789		942
Greatbatch, Inc. *		6,712		179
Powell Industries, Inc. *		4,100		155
Superior Essex, Inc. *		4,000		149

				3,380


Electronics - 3.6%
Analogic Corp.		6,430		410
Benchmark Electronics, Inc. *		61,500		1,468
Coherent, Inc. *		53,500		1,716
Cubic Corp.		9,900		417
Dionex Corp. *		4,900		389
Flir Systems, Inc. *		31,730		1,758
Methode Electronics, Inc.		14,100		212
Plexus Corp. *		64,400		1,765
Tektronix, Inc.		1,500		42
TTM Technologies, Inc. *		36,610		424
Varian, Inc. *		9,922		631
Watts Water Technologies, Inc., Class A		27,800		853

				10,085


Engineering & Construction - 0.4%
Dycom Industries, Inc. *		10,000		306
EMCOR Group, Inc. *		4,340		136
Perini Corp. *		11,031		617
Stanley, Inc. *		5,000		138

				1,197


Entertainment - 1.2%
Lions Gate Entertainment Corp. *		114,390		1,180
Macrovision Corp. *		63,100		1,554
Shuffle Master, Inc. *		45,090		674

				3,408

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 21 MULTI - MANAGER FUNDS


	MULTI-MANAGER FUNDS

		SCHEDULE OF INVESTMENTS

		MULTI – MANAGER SMALL CAP FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% - CONTINUED
Environmental Control - 0.1%
Calgon Carbon Corp. *		12,800		$179
Metal Management, Inc.		2,500		135

				314

Food - 1.8%
Cal-Maine Foods, Inc.		16,300		411
Chiquita Brands International, Inc. *		8,318		132
Flowers Foods, Inc.		16,500		360
Fresh Del Monte Produce, Inc.		27,500		790
Ingles Markets, Inc., Class A		6,560		188
J & J Snack Foods Corp.		32,500		1,132
Nash Finch Co.		3,000		119
Performance Food Group Co. *		51,930		1,565
Sanderson Farms, Inc.		2,400		100
TreeHouse Foods, Inc. *		6,100		165

				4,962

Forest Products & Paper - 1.3%
Glatfelter		97,000		1,439
Neenah Paper, Inc.		37,500		1,241
Potlatch Corp.		22,000		991
Rayonier, Inc.		2,600		125

				3,796

Gas - 0.4%
New Jersey Resources Corp.		20,500		1,017

Hand/Machine Tools - 0.2%
Baldor Electric Co.		15,100		603
Hardinge, Inc.		2,100		73

				676

Healthcare - Products - 5.8%
Advanced Medical Optics, Inc. *		59,000		1,805
Align Technology, Inc. *		14,300		362
American Medical Systems Holdings, Inc. *		70,750		1,199
Conmed Corp. *		21,300		596
Cooper Cos., Inc.		25,500		1,337
Cynosure, Inc., Class A *		3,000		111
Dentsply International, Inc.		1,978		82
DJO, Inc. *		36,390		1,787
Hillenbrand Industries, Inc.		4,100		225
ICU Medical, Inc. *		40,000		1,550
Immucor, Inc. *		4,090		146
Invacare Corp.		20,000		468
Kinetic Concepts, Inc. *		8,900		501
Kyphon, Inc. *		34,336		2,403


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Healthcare - Products - 5.8% – (continued)
Mentor Corp.		5,100		$ 235
NuVasive, Inc. *		47,910		1,721
Osteotech, Inc. *		5,400		41
PolyMedica Corp.		2,300		121
STERIS Corp.		12,300		336
SurModics, Inc. *		4,400		216
TomoTherapy, Inc. *		30,600		711
Ventana Medical Systems, Inc. *		3,300		283
Zoll Medical Corp. *		4,000		104

				16,340

Healthcare - Services - 2.7%
Air Methods Corp. *		26,000		1,201
AMERIGROUP Corp. *		3,600		124
Apria Healthcare Group, Inc. *		16,200		421
Centene Corp. *		8,300		179
Healthways, Inc. *		40,060		2,162
Magellan Health Services, Inc. *		38,300		1,554
Molina Healthcare, Inc. *		4,000		145
Psychiatric Solutions, Inc. *		47,940		1,883
RehabCare Group, Inc. *		4,800		85

				7,754

Holding Companies - Diversified - 0.0%
NTR Acquisition Co. *		8,500		81

Home Builders - 0.6%
MDC Holdings, Inc.		2,200		90
Meritage Homes Corp. *		21,000		297
Thor Industries, Inc.		29,500		1,327

				1,714

Home Furnishings - 1.0%
American Woodmark Corp.		4,000		99
DTS, Inc. *		67,960		2,064
Tempur-Pedic International, Inc.		17,800		636

				2,799

Household Products/Wares - 0.2%
American Greetings Corp., Class A		6,804		180
Blyth, Inc.		12,600		258
CSS Industries, Inc.		4,600		165

				603

Insurance - 3.8%
American Physicians Capital, Inc.		4,576		178
Amerisafe, Inc. *		6,300		104

See Notes to the Financial Statements.

MULTI - MANAGER FUNDS 22 NORTHERN FUNDS SEMIANNUAL REPORT




SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Insurance - 3.8% – (continued)
Aspen Insurance Holdings Ltd.		17,871		$499
Assured Guaranty Ltd.		41,290		1,122
Flagstone Reinsurance Holdings Ltd.		7,900		105
IPC Holdings Ltd.		6,400		185
Max Capital Group Ltd.		3,200		90
NYMAGIC, Inc.		6,100		170
Platinum Underwriters Holdings Ltd.		13,150		473
PMI Group (The), Inc.		5,400		176
Primus Guaranty Ltd. *		138,450		1,456
ProAssurance Corp. *		14,990		807
SeaBright Insurance Holdings, Inc. *		5,500		94
Security Capital Assurance Ltd.		88,700		2,026
Selective Insurance Group, Inc.		93,000		1,979
StanCorp Financial Group, Inc.		24,300		1,203
Stewart Information Services Corp.		5,600		192

				10,859

Internet - 3.4%
1-800-FLOWERS.COM, Inc., Class A *		21,400		248
AsiaInfo Holdings, Inc. *		53,300		483
Authorize.Net Holdings, Inc. *		3,690		65
Blue Nile, Inc. *		7,508		707
Chordiant Software, Inc. *		38,300		531
Cogent Communications Group, Inc. *		7,400		173
CyberSource Corp. *		120,410		1,408
Earthlink, Inc. *		28,200		223
eResearch Technology, Inc. *		6,800		77
Imergent, Inc.		32,750		735
Infospace, Inc.		8,293		146
Interwoven, Inc. *		23,576		335
iPass, Inc. *		28,200		118
j2 Global Communications, Inc. *		67,560		2,211
RealNetworks, Inc. *		16,060		109
S1 Corp. *		26,190		237
Shutterfly, Inc. *		10,500		335
ValueClick, Inc. *		27,410		616
Vasco Data Security International, Inc. *		12,500		441
Vignette Corp. *		25,060		503

				9,701

Investment Companies - 0.2%
Apollo Investment Corp.		22,454		467
Capital Southwest Corp.		905		111

				578


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Iron/Steel - 0.2%
Ryerson, Inc.		4,160		$140
Schnitzer Steel Industries, Inc., Class A		3,826		281

				421

Leisure Time - 0.1%
Multimedia Games, Inc. *		19,000		162

Machinery - Construction & Mining - 0.1%
Astec Industries, Inc. *		5,600		322

Machinery - Diversified - 0.5%
AGCO Corp. *		2,697		137
Applied Industrial Technologies, Inc.		9,600		296
Cascade Corp.		1,300		85
Chart Industries, Inc. *		2,900		93
Gorman-Rupp (The) Co.		2,100		70
Hurco Cos., Inc. *		2,200		119
NACCO Industries, Inc., Class A		1,810		187
Robbins & Myers, Inc.		2,900		166
Tecumseh Products Co., Class A *		5,100		98
Tennant Co.		2,352		115

				1,366

Media - 1.1%
Belo Corp., Class A		67,694		1,175
Central European Media Enterprises Ltd., Class A *		17,800		1,632
Journal Communications, Inc., Class A		17,100		162
Lin TV Corp., Class A *		4,200		55

				3,024

Metal Fabrication/Hardware - 0.4%
Ampco-Pittsburgh Corp.		4,390		173
Lawson Products, Inc.		2,300		80
Mueller Industries, Inc.		6,100		220
Quanex Corp.		3,400		160
Sun Hydraulics, Inc.		8,050		256
Worthington Industries, Inc.		4,600		108

				997

Mining - 0.1%
USEC, Inc. *		19,680		202

Miscellaneous Manufacturing - 1.8%
Acuity Brands, Inc.		6,000		303
Blount International, Inc. *		4,300		49
EnPro Industries, Inc. *		6,177		251
Griffon Corp. *		4,500		68
Hexcel Corp. *		54,500		1,238

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 23 MULTI - MANAGER FUNDS


	MULTI-MANAGER FUNDS

		SCHEDULE OF INVESTMENTS

		MULTI-MANAGER SMALL CAP FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Miscellaneous Manufacturing - 1.8% – (continued)
Koppers Holdings, Inc.		6,500	$	251
Matthews International Corp., Class A		47,250		2,069
Raven Industries, Inc.		2,500		100
Roper Industries, Inc.		2,050		134
Smith (A.O.) Corp.		4,500		197
Sturm Ruger & Co., Inc. *		11,400		204
Tredegar Corp.		9,949		172
Trimas Corp. *		14,600		194

				5,230

Office Furnishings - 0.0%
HNI Corp.		2,100		76

Office/Business Equipment - 0.1%
IKON Office Solutions, Inc.		29,869		384

Oil & Gas - 1.8%
Atlas America, Inc.		3,300		170
ATP Oil & Gas Corp. *		1,800		85
Berry Petroleum Co., Class A		3,100		123
Bois d’Arc Energy, Inc. *		11,300		216
Brigham Exploration Co. *		15,100		89
Delek US Holdings, Inc.		4,500		113
Grey Wolf, Inc. *		24,400		160
Mariner Energy, Inc. *		11,300		234
Patterson-UTI Energy, Inc.		9,600		217
Petroquest Energy, Inc. *		17,400		187
Quicksilver Resources, Inc. *		37,500		1,764
Rosetta Resources, Inc. *		12,100		222
Stone Energy Corp. *		14,400		576
Swift Energy Co. *		10,600		434
Western Refining, Inc.		1,300		53
Whiting Petroleum Corp. *		9,300		413

				5,056

Oil & Gas Services - 1.8%
Dawson Geophysical Co. *		2,300		178
Exterran Holdings, Inc. *		900		72
Gulf Island Fabrication, Inc.		2,000		77
Lufkin Industries, Inc.		14,640		805
Newpark Resources, Inc. *		21,000		113
Oceaneering International, Inc. *		20,000		1,516
Tetra Technologies, Inc. *		75,000		1,586
Trico Marine Services, Inc. *		1,100		33
W-H Energy Services, Inc. *		5,900		435


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Oil & Gas Services - 1.8% – (continued)
Willbros Group, Inc. *		5,100	$	173

				4,988

Pharmaceuticals - 2.1%
Alkermes, Inc. *		7,200		133
Array Biopharma, Inc. *		7,900		89
Caraco Pharmaceutical Laboratories Ltd. *		13,080		200
Cephalon, Inc. *		3,200		234
Cubist Pharmaceuticals, Inc. *		23,200		490
Express Scripts, Inc. *		25,420		1,419
Isis Pharmaceuticals, Inc. *		35,031		524
MGI Pharma, Inc. *		4,800		133
Neurocrine Biosciences, Inc. *		14,600		146
Perrigo Co.		12,800		273
Pharmion Corp. *		7,905		365
Poniard Pharmaceuticals, Inc. *		11,638		66
Santarus, Inc. *		57,400		152
Sciele Pharma, Inc. *		32,300		840
United Therapeutics Corp. *		7,000		466
Vanda Pharmaceuticals, Inc. *		9,200		128
Viropharma, Inc. *		6,500		58
Watson Pharmaceuticals, Inc. *		6,300		204
Xenoport, Inc. *		3,400		160

				6,080

Real Estate - 0.2%
Jones Lang LaSalle, Inc.		5,335		548

Real Estate Investment Trusts - 2.2%
Agree Realty Corp.		4,100		128
Alesco Financial, Inc.		121,300		597
Anworth Mortgage Asset Corp.		18,934		102
Arbor Realty Trust, Inc.		15,360		290
BRT Realty Trust		4,500		78
Cousins Properties, Inc.		39,000		1,145
Duke Realty Corp.		3,833		130
Entertainment Properties Trust		8,200		417
Equity Lifestyle Properties, Inc.		5,100		264
Federal Realty Investment Trust		3,000		266
Franklin Street Properties Corp.		7,600		131
Gramercy Capital Corp. of New York		6,350		160
HCP, Inc.		10,300		342
iStar Financial, Inc.		4,537		154
Medical Properties Trust, Inc.		22,032		293
MFA Mortgage Investments, Inc.		3,700		30

See Notes to the Financial Statements.

MULTI - MANAGER FUNDS 24 NORTHERN FUNDS SEMIANNUAL REPORT




SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Real Estate Investment Trusts - 2.2% – (continued)
National Health Investors, Inc.		18,200		$563
Post Properties, Inc.		4,800		186
Quadra Realty Trust, Inc.		14,000		133
Regency Centers Corp.		3,400		261
Senior Housing Properties Trust		14,343		316
Taubman Centers, Inc.		4,400		241

				6,227


Retail - 6.6%
AC Moore Arts & Crafts, Inc. *		79,820		1,258
Aeropostale, Inc. *		5,100		97
Asbury Automotive Group, Inc.		7,657		152
AutoNation, Inc. *		3,240		57
Bob Evans Farms, Inc.		18,400		555
Borders Group, Inc.		118,000		1,573
Brinker International, Inc.		5,900		162
Buffalo Wild Wings, Inc. *		4,400		166
California Pizza Kitchen, Inc. *		29,700		522
CEC Entertainment, Inc. *		8,112		218
Children’s Place Retail Stores (The), Inc. *		63,600		1,544
Chipotle Mexican Grill, Inc., Class B *		2,100		225
Domino’s Pizza, Inc.		12,100		201
Duckwall-ALCO Stores, Inc. *		14,960		551
Fred’s, Inc.		48,000		506
GameStop Corp., Class A *		10,030		565
Group 1 Automotive, Inc.		43,500		1,460
Jack in the Box, Inc. *		3,810		247
Jo-Ann Stores, Inc. *		10,000		211
Jos. A. Bank Clothiers, Inc. *		5,910		198
Landry’s Restaurants, Inc.		15,700		415
Longs Drug Stores Corp.		2,300		114
McCormick & Schmick’s Seafood Restaurants, Inc. *		36,230		682
O’Charleys, Inc.		29,730		451
P.F. Chang’s China Bistro, Inc. *		5,000		148
Papa John’s International, Inc. *		46,700		1,141
PC Connection, Inc. *		11,700		146
Regis Corp.		5,800		185
Ruby Tuesday, Inc.		6,700		123
Rush Enterprises, Inc., Class A *		9,800		249
School Specialty, Inc. *		42,300		1,465
Select Comfort Corp. *		98,900		1,380
Sonic Automotive, Inc., Class A		4,464		107


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Retail - 6.6% – (continued)
Systemax, Inc.		11,700		$239
Tractor Supply Co. *		28,250		1,302
West Marine, Inc. *		9,800		113

				18,728


Savings & Loans - 1.1%
BankFinancial Corp.		5,000		79
BankUnited Financial Corp., Class A		12,900		201
Brookline Bancorp, Inc.		9,900		115
Downey Financial Corp.		7,601		439
First Niagara Financial Group, Inc.		30,400		430
Flagstar Bancorp, Inc.		27,700		270
KNBT Bancorp, Inc.		11,000		182
NewAlliance Bancshares, Inc.		19,100		280
Partners Trust Financial Group, Inc.		7,829		95
Provident Financial Services, Inc.		27,044		443
Provident New York Bancorp		16,700		219
Washington Federal, Inc.		9,900		260

				3,013


Semiconductors - 3.1%
Actel Corp. *		9,174		98
Advanced Analogic Technologies, Inc. *		14,700		156
Cohu, Inc.		3,400		64
Credence Systems Corp. *		35,500		110
DSP Group, Inc. *		5,400		85
Emulex Corp. *		4,400		84
Entegris, Inc. *		193,200		1,677
Exar Corp. *		20,882		273
Intersil Corp., Class A		2,400		80
IXYS Corp. *		4,600		48
Micrel, Inc.		20,300		219
Monolithic Power Systems, Inc. *		15,500		394
Novellus Systems, Inc. *		5,200		142
ON Semiconductor Corp. *		4,745		60
Photronics, Inc. *		13,800		157
PMC - Sierra, Inc. *		14,100		118
Semtech Corp. *		18,900		387
Silicon Laboratories, Inc. *		44,480		1,858
Skyworks Solutions, Inc. *		37,000		335
TriQuint Semiconductor, Inc. *		8,030		39
Ultra Clean Holdings *		35,977		529
Volterra Semiconductor Corp. *		137,400		1,687

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 25 MULTI-MANAGER FUNDS


	MULTI-MANAGER FUNDS

		SCHEDULE OF INVESTMENTS

		MULTI-MANAGER SMALL CAP FUND (continued)


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Semiconductors - 3.1% – (continued)
Zoran Corp. *		14,000		$283

				8,883


Software - 6.3%
Acxiom Corp.		6,300		125
Avid Technology, Inc. *		62,600		1,695
Business Objects S.A. ADR *		41,000		1,840
CSG Systems International, Inc. *		12,400		263
Double-Take Software, Inc. *		7,700		147
Fair Isaac Corp.		4,400		159
Global Payments, Inc.		19,580		866
Innerworkings, Inc. *		89,500		1,542
Lawson Software, Inc. *		34,900		349
MSC.Software Corp. *		119,500		1,628
Nuance Communications, Inc. *		95,600		1,846
Omniture, Inc. *		14,200		431
Pegasystems, Inc.		8,200		98
Phase Forward, Inc. *		9,804		196
Phoenix Technologies Ltd. *		7,200		77
Schawk, Inc.		43,000		970
Synchronoss Technologies, Inc. *		10,600		446
Taleo Corp., Class A *		14,100		358
THQ, Inc. *		70,550		1,762
Ultimate Software Group, Inc. *		87,680		3,060

				17,858


Telecommunications - 4.1%
Adtran, Inc.		5,300		122
Alaska Communications Systems Group, Inc.		7,400		107
Aruba Networks, Inc. *		24,800		496
Atlantic Tele-Network, Inc.		7,100		258
C-COR, Inc. *		70,580		811
Cbeyond, Inc. *		6,200		253
Cincinnati Bell, Inc. *		20,500		101
Consolidated Communications Holdings, Inc.		10,900		214
CPI International, Inc. *		2,000		38
Ditech Networks, Inc. *		14,804		78
EMS Technologies, Inc. *		1,900		47
Foundry Networks, Inc. *		42,240		751
General Communication, Inc., Class A *		140,000		1,700
IDT Corp., Class B		22,000		184
Iowa Telecommunications Services, Inc.		10,400		206
iPCS, Inc.		40,000		1,376
Loral Space & Communications, Inc. *		4,600		183


	NUMBER		VALUE
	OF SHARES		(000S)
COMMON STOCKS - 96.0% – CONTINUED
Telecommunications - 4.1% – (continued)
Network Equipment Technologies, Inc. *		16,200		$235
Novatel Wireless, Inc. *		29,616		671
NTELOS Holdings Corp.		20,400		601
PAETEC Holding Corp. *		13,600		169
Plantronics, Inc.		6,500		185
Polycom, Inc. *		5,840		157
Premiere Global Services, Inc. *		8,700		110
RF Micro Devices, Inc. *		82,100		552
SureWest Communications		13,300		333
Switch & Data Facilities Co., Inc. *		23,500		383
Syniverse Holdings, Inc. *		74,420		1,183
USA Mobility, Inc. *		4,258		72
UTStarcom, Inc. *		23,014		84

				11,660


Textiles - 0.8%
G&K Services, Inc., Class A		23,500		945
Unifirst Corp. of Massachusetts		36,000		1,348

				2,293


Toys, Games & Hobbies - 0.4%
RC2 Corp. *		38,000		1,052


Transportation - 2.0%
Atlas Air Worldwide Holdings, Inc. *		4,565		236
Genco Shipping & Trading Ltd.		3,000		197
General Maritime Corp.		18,900		528
Gulfmark Offshore, Inc. *		3,200		156
HUB Group, Inc., Class A *		1,800		54
Knight Transportation, Inc.		81,370		1,400
Knightsbridge Tankers Ltd.		6,300		169
Landstar System, Inc.		23,000		965
Overseas Shipholding Group		1,900		146
Ship Finance International Ltd.		4,000		105
TBS International Ltd., Class A *		12,200		503
Tsakos Energy Navigation Ltd.		18,500		1,303

				5,762


Trucking & Leasing - 0.0%
TAL International Group, Inc.		3,000		75


Total Common Stocks


(Cost $257,651)				271,949

See Notes to the Financial Statements.

MULTI-MANAGER FUNDS 26 NORTHERN FUNDS SEMIANNUAL REPORT




SEPTEMBER 30, 2007 (UNAUDITED)


	NUMBER		VALUE
	OF SHARES		(000S)
INVESTMENT COMPANIES - 4.7%
iShares Russell 2000 Index Fund		57,500		$4,602
Northern Institutional Funds - Diversified Assets Portfolio ⁽¹⁾		8,793,253		8,794

Total Investment Companies


(Cost $13,346)				13,396

RIGHTS - 0.0%
Exide Technologies		8,600		-

Total Rights


(Cost $ -)				-

	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENT - 0.5%
ABN-Amro Bank, Amsterdam, Eurodollar Time Deposit, 5.50%, 10/1/07		$1,338		1,338

Total Short-Term Investment


(Cost $1,338)				1,338


Total Investments - 101.2%


(Cost $272,335)				286,683
Liabilities less Other Assets - (1.2)%				(3,437	)

NET ASSETS - 100.0%			$	283,246




(1)		Northern Trust Investments, N.A. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds - Diversified Assets Portfolio.

*		Non-Income Producing Security

		Percentages shown are based on Net Assets.

At September 30, 2007, the industry sectors for the Multi-Manager Small Cap Fund were:


	% OF LONG-TERM
INDUSTRY SECTOR	INVESTMENTS
Consumer Discretionary		15.3	%
Consumer Staples		2.7
Energy		4.7
Financials		18.3
Health Care		14.4
Industrials		12.9
Information Technology		23.5
Materials		4.1
Telecommunication Services		2.6
Utilities		1.5


Total		100.0	%

See Notes to the Financial Statements.

NORTHERN FUNDS SEMIANNUAL REPORT 27 MULTI-MANAGER FUNDS

Northern Trust Global Advisors, Inc. (“NTGA”) is a direct subsidiary of Northern Trust Corporation and Northern Trust Investments, N.A. (“NTI”) is a direct subsidiary of The Northern Trust Company (“Northern Trust”). NTGA and NTI serve jointly as the investment advisers of the Funds. Northern Trust serves as the custodian, fund accountant and transfer agent for the Trust. NTI and PFPC Inc. (“PFPC”) serve as the Trust’s co-administrators, and Northern Fund Distributors, LLC is the Trust’s distributor.

A) VALUATION OF SECURITIES – Securities are valued at their fair value. Securities traded on U.S. securities exchanges or in the Nasdaq Stock Market, Inc. are principally valued at the regular trading session closing price (generally, 3:00 P.M. Central time) on the exchange or market in which such securities are principally traded. If any such security is not traded on a valuation date, it is valued at the most recent quoted bid price. Over-the-counter securities not reported in the Nasdaq Stock Market, Inc. are also generally valued at the most recent quoted bid price. Fixed income securities, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair market value of such securities. Such prices may be determined taking into account securities prices, yields, maturities, call features, ratings, institutional size trading in similar groups of securities and developments related to specific securities.

B) FOREIGN CURRENCY TRANSLATIONS – Values of investments denominated in foreign currencies are converted into U.S. dollars using the spot rates on the New York exchange normally at approximately 3:00 p.m. Central time. The cost of purchases and proceeds from sales of investments, interest and dividend income are translated into U.S. dollars using the spot market rate of exchange prevailing on the respective dates of such transactions. The gains or losses on investments resulting from changes in foreign exchange rates are included in the Statements of Operations with net realized and unrealized gains (losses) on investments. The realized gains or losses, if any, on translations of other assets and liabilities denominated in foreign currencies are included in foreign currency transactions on the Statements of Operations.

C) FORWARD FOREIGN CURRENCY EXCHANGE CONTRACTS – Certain Funds are authorized to enter into forward foreign currency exchange contracts for the purchase or sale of a specific foreign currency at a fixed price on a future date as a hedge against either specific transactions or portfolio positions, or as a cross-hedge transaction or for speculative purposes. The objective of a Fund’s foreign currency hedging transactions is to reduce the risk that the U.S. dollar value of a Fund’s foreign currency denominated securities will decline in value due to changes in foreign currency exchange rates. All forward foreign currency exchange contracts are “marked-to-market” daily at the applicable exchange rates and any resulting unrealized gains or losses are recorded in the financial statements. The Fund records realized gains or losses at the time the forward foreign currency exchange contract is offset by entering into a closing transaction or extinguished by delivery of the currency.

D) INVESTMENT TRANSACTIONS AND INCOME – Investment transactions are recorded as of the trade date. The Funds determine the gain or loss realized from investment transactions by using an identified cost basis method. Interest income is recognized on an accrual basis and includes amortization of premiums and accretion of discounts using the effective yield method. The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities or, for interest-only or principal-only securities, the current effective yield. Dividend income is recognized on the ex-dividend date. Dividends from foreign securities are recorded on the ex-dividend date, or as soon as the information is available.

F) REDEMPTION FEES – The Multi-Manager International Equity Fund charges a 2 percent redemption fee on the redemption of shares (including by exchange) held for 30 days or less. For the purpose of applying the fee, the Fund uses a first-in, first-out (“FIFO”) method so that shares held longest are treated as being redeemed first and shares held shortest are treated as being redeemed last. The redemption fee is paid to the Fund and is intended to offset the trading, market impact and other costs associated with short-term money movements in and out of the Fund. The redemption fee is collected by deduction from the redemption proceeds or, if assessed after the redemption transaction, through a separate billing. The redemption fee does not apply to certain types of redemptions as described in the Fund’s prospectus.

There were no redemption fees for the six months ended September 30, 2007, for the Multi-Manager International Equity Fund.

G) DISTRIBUTIONS TO SHAREHOLDERS – Distribution of dividends from net investment income, if any, are declared and paid as follows:

recognition of income and capital gains for federal income tax purposes, which are permanent, may result in periodic reclassifications in the Funds’ capital accounts.

H) FEDERAL INCOME TAXES – No provision for federal income taxes has been made since each Fund’s policy is to comply with the requirements of Subchapter M of the Internal Revenue Code applicable to regulated investment companies and to distribute, each year, substantially all of its taxable income and capital gains to its shareholders.

At March 31, 2007, the tax components of undistributed net investment income, undistributed realized gains and unrealized gains were as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

The taxable character of distributions paid during the period ended March 31, 2007, was as follows:


*	Ordinary income includes taxable market discount income and short-term capital gains, if any.

The Funds did not incur any interest expense during the six months ended September 30, 2007.

As compensation for advisory services and assumption of related expenses, the investment advisers are entitled to receive a joint advisory fee, calculated daily and payable monthly, at annual rates set forth in the following table (expressed as a percentage of each Fund’s average daily net assets). For the six months ended September 30, 2007, the investment advisers agreed to reimburse the Funds for certain expenses as shown on the accompanying Statements of Operations to adhere to the expense limitations set forth below. The annual advisory fees and expense limitations for the Funds during the six months ended September 30, 2007 were as follows:

The reimbursements described above are voluntary and may be modified or terminated at any time.

Pursuant to the Investment Advisory Agreement with the Trust, each of NTI and NTGA is responsible for performing and overseeing investment management services to the Funds. In addition to selecting the overall investment strategies of the Funds, NTI and NTGA oversee and monitor the selection and performance of Sub-Advisers and allocate resources among the Sub-Advisers. The Sub-Advisers manage each Fund’s investment portfolio pursuant to Sub-Advisory Agreements with NTI and NTGA.

As of September 30, 2007, Altrinsic Global Advisors, LLC, Oechsle International Advisors, LLC, Tradewinds Global Investors, LLC and UBS Global Asset Management (Americas) Inc. are the sub-advisers for the Multi-Manager International Equity Fund. Effective August 30, 2007, Nicholas Applegate Capital Management, LLC is no longer a sub-adviser for the Multi-Manager International Equity Fund and its assets were transferred to UBS Global Asset Management (Americas) Inc.

As of September 30, 2007, Geneva Capital Management Ltd., LSV Asset Management and TCW Investment Management Company are the sub-advisers for the Multi-Manager Mid Cap Fund.

As of September 30, 2007, Goldman Sachs Asset Management, L.P., Metropolitan West Capital Management, LLC and William Blair & Company, LLC are the sub-advisers for the Multi-Manager Small Cap Fund. Effective August 22, 2007, NorthPointe Capital, LLC is no longer a sub-adviser for the Multi-Manager Small Cap Fund and its assets were transferred to Goldman Sachs Asset Management, L.P.

The Investment Advisers are responsible for payment of sub-advisory fees to these sub-advisers.

Certain officers of the Trust are also officers of Northern Trust and NTI. All officers serve without compensation from the Funds, although the Trust’s secretary also serves as legal counsel to the Trust and the independent Trustees and receives legal fees from the Funds for those services. The Trust provides a deferred compensation plan for its Trustees who are not officers of Northern Trust or NTI. Under the deferred compensation plan, Trustees may elect to defer all or a portion of their compensation. Amounts deferred are included in “Trustee fees” on the Statements of Assets and Liabilities. The Trustee’s account shall be deemed to be invested in a money market fund selected by the Trust that complies with the provisions of Rule 2a-7 under the Investment Company Act of 1940, as amended. The net investment income, gains and losses achieved by such deemed investment shall be credited to the Trustee’s account as provided in the plan.

Each Fund currently invests uninvested cash in the Diversified Assets Portfolio (the “Portfolio”) of Northern Institutional Funds, an investment company which is advised by NTI, pursuant to the terms of an exemptive order issued by the SEC. Each Fund bears indirectly a proportionate share of the Portfolio’s operating expenses. These operating expenses include the advisory, administrative, transfer agency and custody fees that the Portfolio pays to NTI and/or its affiliates. Currently, the aggregate annual rate of advisory, administration, transfer agency and custodial fees payable to NTI and/or its affiliates on the uninvested cash invested in the Portfolio are 0.35 percent. NTI is currently reimbursing each of the Funds invested in the Portfolio for the advisory fees received by NTI from the Portfolio in respect of each Fund’s assets invested in the Portfolio. The exemptive order requires the Funds’ Board to determine before a vote on the Advisory Agreement that the advisory fees incurred in connection with the investment of uninvested cash in affiliated money market funds are not for duplicative services.

For the six months ended September 30, 2007, the aggregate costs of purchases and proceeds from sales of securities (excluding short-term investments) for the Funds were as follows:

Transactions in capital shares for the six months ended September 30, 2007, were as follows:

Transactions in capital shares for the period ended March 31, 2007, were as follows:

Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds’ financial statements and financial disclosures, if any.

Effective October 17, 2007, the Multi-Manager Large Cap Fund was funded. Delaware Management Company, Inc., Jennison Associates LLC, Marsico Capital Management, LLC and Metropolitan West Capital Management, LLC are the sub-advisers for the Multi-Manager Large Cap Fund.

As a shareholder of the Funds, you incur two types of costs: (1) transaction costs, if any, including redemption fees on certain exchanges and redemptions in the Multi-Manager International Equity Fund; and (2) ongoing costs, including advisory fees; distribution (12b-1) fees, if any; and other fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period, April 1, 2007, through September 30, 2007.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), redemption fees, or exchange fees, but shareholders of other funds may incur such costs. For example, the information does not reflect redemption fees (as described on page 29) in the Multi-Manager International Equity Fund. If these fees were included, your costs would have been higher. Therefore, the hypothetical information is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.


	The Multi-Manager Board of Trustees (“Trustees”) oversee the management of the Multi-Manager International Equity, Large Cap, Mid Cap and Small Cap Funds (together, the “Multi-Manager Funds” or “Funds”) and review the investment performance and expenses of the Funds. In addition, the Trustees determine annually whether to re-approve and continue the Trust’s investment advisory agreement (the “Multi-Manager Advisory Agreement”) for the Multi-Manager Funds with the Investment Advisers, and sub-advisory agreements (the “Sub-Advisory Agreements”) with each of the sub-advisers (together, “Sub-Advisers”) to the Multi-Manager Funds.

	The Multi-Manager Advisory Agreement was most recently re-approved with respect to the Multi-Manager International Equity, Mid Cap and Small Cap Funds (the “Current Multi-Manager Funds”) by the Trustees, including all of the Trustees who are not parties to the Multi-Manger Advisory Agreement or “interested persons” (as defined in the Investment Company Act of 1940, as amended) of any party thereto (the “Independent Trustees”), at a meeting held on August 3, 2007 (the “August Meeting”). In addition, the Multi-Manager Advisory Agreement for the Multi-Manager Large Cap Fund (which commenced operations on October 17, 2007) was initially approved by the Trustees at the August Meeting.

	In preparation for the Trustees’ consideration of the Multi-Manager Advisory Agreement at the August Meeting, the Trustees reviewed information on the following topics for the Current Multi-Manager Funds at a meeting held on May 4, 2007 (the “May Meeting” and together with the August Meeting, referred to as the “Meetings”): the Investment Advisers’ profitability on a Fund-by-Fund basis; the qualifications of the Investment Advisers, the Sub-Advisers and their affiliates to provide services to the Funds; and policies adopted by the Investment Advisers and Sub-Advisers regarding compliance, including brokerage, trade allocations and other matters.

	In connection with the Meetings and their evaluation of the Multi-Manager Advisory Agreement, the Trustees considered the Investment Advisers’ written and oral presentations and discussed the information that had been provided at each of the Meetings. In connection with their deliberations, the Trustees were advised by their independent legal counsel regarding their responsibilities under applicable law, and met in executive sessions at the Meetings without employees of the Investment Advisers present.

	In evaluating whether to continue or approve, as the case may be, the Multi-Manager Advisory Agreement for the Current Multi-Manager Funds and the new Multi-Manager Large Cap Fund, the Trustees considered that the Investment Advisers engage Sub-Advisers, subject to the Trustees’ approval, to manage the assets of the Funds. They also discussed that the Investment Advisers provide general investment management services to the Multi-Manager Funds and have ultimate responsibility to oversee the Sub-Advisers, and to recommend their hiring, termination and replacement, subject to the Trustees’ approval. The Trustees considered that the Investment Advisers are also responsible for selecting each Multi-Manager Fund’s investment strategies; allocating and reallocating assets among the Sub-Advisers consistent with each Fund’s investment objective and strategies; monitoring and evaluating Sub-Adviser performance; and implementing procedures relating to the Sub-Advisers’ compliance with the relevant Fund’s investment objectives, policies and restrictions. In addition to providing these services, the Investment Advisers manage the cash portion of each Multi-Manager Fund.

	The Board considered that the Investment Advisers select the Sub-Advisers to manage the Funds on the basis of both qualitative and quantitative analyses that assess, among other things, each Sub-Adviser’s investment style, historical performance and the characteristics of each Sub-Adviser’s allocated assets (including capitalization, growth and profitability measures, valuation metrics, economic sector exposures and earnings and volatility statistics). The Investment Advisers then allocate assets to a Sub-Adviser selected through this process on the basis of a particular strategy assigned to it with the goal that the investment styles of the Sub-Advisers for each Fund are complementary. Thus, the Sub-Advisers are chosen not only based on their performance but also for their anticipated investment synergy with the other Sub-Advisers managing assets of the same Fund. The Trustees considered the Investment Advisers’ selection and allocation methodology in evaluating their services under the Multi-Manager Advisory Agreement.

	The Trustees also considered that the prospectuses for the Multi-Manager Funds disclose the Investment Advisers’ role in selecting the Sub-Advisers and that shareholders may consider this factor in determining whether to invest in a Multi-Manager Fund.


	In evaluating the Multi-Manager Advisory Agreement, generally the Trustees relied upon their knowledge of the Investment Advisers and their services resulting from their meetings and interactions with management throughout the year. The Trustees reviewed and discussed, among other things, information relating to: (i) the terms of the Multi-Manager Advisory Agreement; (ii) the contractual investment advisory fees and the total expenses (after voluntary reimbursements) borne by the Multi-Manager Funds in comparison to those borne by mutual fund peer groups and categories selected by Lipper Analytical Services, Inc. (“Lipper”), including other multi-manager funds that operate similarly to the Funds; (iii) Lipper and benchmark information with respect to the Current Multi-Manager Funds’ performance, such information not being available for the Multi-Manager Large Cap Fund; (iv) the nature, quality and extent of the investment advisory services, including the scope and depth of the Investment Advisers’ resources, the Investment Advisers’ staffing for the Funds and the experience of the persons who supervise the Sub-Advisers; (v) the Investment Advisers’ financial resources and their ability to attract and retain talent; (vi) the fees paid by the Funds to the Investment Advisers and their affiliates for services, and the expenses incurred by them in connection with the provision of those services; (vii) the Funds’ expense ratios; (viii) other benefits received by the Investment Advisers and their affiliates from their relationships with the Funds; and (ix) potential economies of scale at various projected Fund asset levels. The Trustees reviewed the sub-advisory fees (which are based on breakpoints) and the investment advisory fees (which do not use breakpoints) and the spread between the aggregate sub-advisory fees and the investment advisory fees at these different levels. The Trustees also reviewed these spreads in comparison to fee spreads among investment advisers and sub-advisers to other similarly-managed mutual funds.

	The Trustees also reviewed and considered materials relating to the Investment Advisers’ investment management services. These materials included: (i) information with respect to the proprietary model for selecting Sub-Advisers for the Funds; (ii) the due diligence process used by the Investment Advisers to evaluate the Sub-Advisers; (iii) the program developed by the Investment Advisers to monitor the Sub-Advisers’ compliance with the Funds’ investment objectives, strategies and restrictions; (iv) the systems used by the Investment Advisers to monitor the Sub-Advisers’ investment performance; and (v) safeguards for addressing potential conflicts of interest.

	In connection with their approvals of the Multi-Manager Advisory Agreement for each of the Funds, the Trustees gave weight to various factors, but did not identify any single factor as controlling their decision. As part of their review, the Trustees considered the nature, extent and quality of the services provided by the Investment Advisers. In this regard, the Trustees considered both the investment advisory services, and the other nonadvisory services, provided to the Funds by the Investment Advisers and their affiliates. The advisory services included the Investment Advisers’ development of and expertise with a multi-manager platform, including the resources it had invested in the program and the proprietary model for selection and monitoring of money managers. In addition, the Trustees considered that the Investment Advisers were responsible for monitoring 11 different Sub-Advisers for the Current Multi-Manager Funds and four additional Sub-Advisers for the Multi-Manager Large Cap Fund. The nonadvisory services include services as the Funds’ custodian, transfer agent and co-administrator. The Trustees also considered that many of the Funds’ shareholders were likely to have other client relationships with The Northern Trust Company. The Trustees concluded that the Investment Advisers both committed substantial financial and other resources to the operations of the Multi-Manager Funds and provided quality services to the Funds. The Trustees also believed that the Investment Advisers had made significant commitments to address regulatory compliance requirements applicable to the Multi-Manager Funds and had established a program to monitor the Sub-Advisers’ compliance policies and procedures. The Trustees also considered the Investment Advisers’ willingness to provide information requested by the Trustees.

	The Trustees also discussed the Multi-Manager Funds’ contractual advisory fee rates; the Funds’ total operating expense ratios; the Investment Advisers’ voluntary expense reimbursements with respect to the Funds; and whether a consistent methodology was in place in determining the fees and expenses of the Funds. In addition, the Trustees considered the fees paid by the Multi-Manager Funds to the Investment Advisers and their affiliates for custodial, transfer agency and co-administration services, and the fees payable to the Investment Advisers and/or their affiliates under the cash sweep program, and reviewed information as to whether the Investment Advisers were likely to pass benefits from their economies of scale to shareholders. In this regard, the Trustees considered the Investment Advisers’ view that the Current Multi-Manager Funds were sharing, and the Multi-Manager Large Cap Fund may be sharing, in


	economies of scale through the level at which the Funds’ advisory fees are set (i.e., below the Lipper category median) and through the Investment Advisers’ voluntary expense caps for the Funds. In addition, the Trustees considered the current and projected assets in the Funds and the net advisory fees at those levels after the Investment Advisers’ payment of the sub-advisory fees; the information provided by the Investment Advisers relating to the current and projected costs of the services to be provided by the Investment Advisers and their affiliates, and the current and projected profits that may be realized by them; and information comparing the fee rates charged by the Investment Advisers with the fee rates charged by other, unaffiliated investment managers to their clients. Regarding profitability, the Trustees noted that the Investment Advisers had presented quarterly profitability reports to the Trustees on a Fund-by-Fund basis, as required by the Funds’ exemptive order. With respect to the Investment Advisers’ costs, the Trustees considered that the Investment Advisers had borne costs related to research and compliance with respect to the Multi-Manager Funds. All of these comparisons assisted the Trustees in evaluating the reasonableness of the investment advisory fees paid by the Funds. Information was also provided on the fee rates charged by the Investment Advisers to private accounts managed by them. In addition, the Trustees noted the Investment Advisers’ voluntary undertaking to limit the Funds’ total expense ratios to specified levels and that they would be paying the Sub-Advisers from their investment advisory fees.

	The Trustees did not consider the investment performance of the Multi-Manager Large Cap Fund because it had no performance history. The Trustees, however, considered and evaluated the performance of the Current Multi-Manager Funds and each Sub-Adviser over the one-year period. The Trustees believed that the Investment Advisers were carefully monitoring each Sub-Adviser’s performance and making asset allocation changes and otherwise conferring with the Sub-Advisers when necessary to improve performance.

	After deliberation, the Trustees concluded that the investment advisory fees paid by Multi-Manager Funds, including the Multi-Manager Large Cap Fund, were reasonable on a Fund-by-Fund basis in light of the services provided by the Investment Advisers, their costs and profitability and the Funds’ current and projected asset levels, and that the Multi-Manager Advisory Agreement should be approved and re-approved, as the case may be.

	With respect to the Sub-Advisory Agreements, the Trustees reviewed information and written materials from the Investment Advisers and Sub-Advisers regarding (i) the nature and quality of the investment advisory services provided, or to be provided, by each Sub-Adviser including the experience and qualifications of the personnel providing such services; (ii) each Sub-Adviser’s financial condition, history of operations and ownership structure; (iii) each Sub-Adviser’s brokerage and soft dollar practices; (iv) each Sub-Adviser’s investment strategies and style of investing; (v) the performance history of the Sub-Advisers with respect to accounts or funds managed similarly to the Multi-Manager Funds; (vi) each Sub-Adviser’s compliance policies and procedures (including their Codes of Ethics) and the Investment Advisers’ and the Trust’s Chief Compliance Officer’s evaluations of such policies and procedures; (vii) the Sub-Advisers’ anticipated conflicts of interest in managing the Funds; and (viii) the terms of the Sub-Advisory Agreements. With respect to two of the Sub-Advisers, Marsico Capital Management, LLC and Tradewinds Global Investors, LLC, the Trustees reviewed information regarding pending changes of control of the Sub-Advisers that were anticipated to occur in the fall of 2007.

	The Trustees also reviewed the Investment Advisers’ proprietary methodology for allocating assets among the various Sub-Advisers, the current and proposed allocations to each Sub-Adviser within each Multi-Manager Fund and the recommended mix of Sub-Advisers for each Fund based on their investment styles and strategies.

	In connection with the approvals of the Sub-Advisory Agreements for each of the Multi-Manager Funds, the Trustees gave weight to various factors but did not identify any single factor as controlling their decision. However, the Trustees relied upon the recommendations and evaluations of the Investment Advisers with respect to each of the Sub-Advisers.

	With respect to the nature, extent and quality of the services to be provided by each Sub-Adviser, the Trustees considered the information provided by the Investment Advisers with respect to each Sub-Adviser’s qualifications and experience in managing the type of strategies for which the Sub-Adviser was being engaged in connection with a Multi-Manager Fund. With respect to UBS Global Asset Management, the Trustees considered that the proposed portfolio management team was the same team that had previously managed the assets of the Multi-Manager International Equity Fund when they were employed by


	Nicholas-Applegate Capital Management. The Trustees considered the performance of the portfolio management team while at Nicholas-Applegate Capital Management in evaluating whether to approve the Sub-Advisory Agreement with UBS Global Asset Management. Finally, the Trustees considered the information provided with respect to the Sub-Advisers’ management of potential conflicts of interest that might result from their management of the Multi-Manager Funds and other accounts.

	The Trustees also considered and evaluated performance information presented with respect to each existing Sub-Adviser’s allocated assets and the Investment Advisers’ evaluation of their performance. This information was compared to performance information for other peers supplied by Lipper. The Trustees also considered overall Multi-Manager Fund performance, which indicated that the Multi-Manager Small Cap Fund had generally outperformed or was competitive with its benchmark and Lipper peers for the periods since inception. The Multi-Manager International Equity and Mid Cap Funds had not performed as well, but the Trustees considered the short time period in which the existing Multi-Manager Funds had been operating.

	With respect to the sub-advisory fees, the Trustees considered that the Sub-Advisers were each paid by the Investment Advisers out of their advisory fees and not by the Funds. The Trustees also believed, based on representations of the Investment Advisers, that each Sub-Advisory Agreement had been negotiated at arms length among the Investment Advisers and Sub-Advisers. The Trustees also reviewed and considered information prepared by Lipper that compared each Fund’s aggregate sub-advisory fees with the aggregate sub-advisory fees of other multi-manager mutual funds. The Trustees also considered information prepared by the Investment Advisers that showed the levels of aggregate sub-advisory fees rates as the Funds’ assets increased. Finally, the Trustees also considered the Investment Advisers’ representations that the fees to be paid to the Sub-Advisers were reasonable in light of the anticipated quality of the services to be performed by them.

	Based on the Trustee’s deliberations and the recommendations of the Investment Advisers, the Trustees concluded that the fees paid to the Sub-Advisers on a Fund-by-Fund basis were reasonable in light of the services provided by them and that the Sub-Advisory Agreements should be approved and re-approved, as the case may be.


	Northern Funds’ Proxy Voting Policies and Procedures and each Fund’s portfolio securities voting record for the 12-month period ended June 30 are available upon request and without charge by visiting Northern Funds’ Web site at northernfunds.com or the SEC’s Web site at sec.gov or by calling the Northern Funds Center at 800-595-9111.

Item 2. Code of Ethics.

Not applicable for the reporting period.

Item 3. Audit Committee Financial Expert.

Not applicable for the reporting period.

Item 4. Principal Accountant Fees and Services.

Not applicable for the reporting period.

Item 5. Audit Committee of Listed Registrants.

Not applicable.

Item 6. Schedule of Investments.

The registrant has elected to include the schedule of investments in securities of unaffiliated issuers as part of the report to shareholders filed under Item 1 of this report on Form N-CSR.

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s Board of Trustees.

Item 11. Controls and Procedures.

(a)

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and

		procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended, as of a date within 90 days of the filing date of this report.

(b)		There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12. Exhibits.

(a)(1)		Not applicable for the reporting period.

(a)(2)		Exhibit 99.CERT: Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

(b)		Exhibit 99.906 CERT: Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


(Registrant)		Northern Funds


By (Signature and Title)		/s/ Lloyd A. Wennlund

		Lloyd A. Wennlund, President
		(Principal Executive Officer)

Date: December 5, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By (Signature and Title)		/s/ Lloyd A. Wennlund

		Lloyd A. Wennlund, President
		(Principal Executive Officer)

Date: December 5, 2007


By (Signature and Title)		/s/ Randal Rein

		Randal Rein, Assistant Treasurer
		(Principal Financial and Accounting Officer)

Date: December 5, 2007


2	STATEMENTS OF ASSETS AND LIABILITIES
4	STATEMENTS OF OPERATIONS
6	STATEMENTS OF CHANGES IN NET ASSETS
8	FINANCIAL HIGHLIGHTS
19	SCHEDULES OF INVESTMENTS
	19	EMERGING MARKETS EQUITY FUND
	32	ENHANCED LARGE CAP FUND
	36	GROWTH EQUITY FUND
	38	INCOME EQUITY FUND
	41	INTERNATIONAL GROWTH EQUITY FUND
	43	LARGE CAP VALUE FUND
	45	MID CAP GROWTH FUND
	47	SELECT EQUITY FUND
	49	SMALL CAP GROWTH FUND
	52	SMALL CAP VALUE FUND
	62	TECHNOLOGY FUND
64	NOTES TO THE FINANCIAL STATEMENTS
72	FUND EXPENSES




76	FOR MORE INFORMATION


		DECLARATION AND
		PAYMENT FREQUENCY


Emerging Markets Equity		ANNUALLY
Enhanced Large Cap		QUARTERLY
Growth Equity		QUARTERLY
Income Equity		MONTHLY
International Growth Equity		ANNUALLY
Large Cap Value		ANNUALLY
Mid Cap Growth		QUARTERLY
Select Equity		ANNUALLY
Small Cap Growth		ANNUALLY
Small Cap Value		ANNUALLY
Technology		ANNUALLY



	UNDISTRIBUTED

	ORDINARY		LONG-TERM		UNREALIZED
Amounts in thousands	INCOME*		CAPITAL GAINS		GAINS


Emerging Markets Equity	$	4,361	$	–	$	29,114
Enhanced Large Cap		3,104		386		4,519
Growth Equity		3,281		9,208		73,602
Income Equity		1,056		15,504		54,697
International Growth Equity		36,230		91,078		213,004
Large Cap Value		11,007		61,079		149,106
Mid Cap Growth		–		–		14,653
Select Equity		211		–		15,610
Small Cap Growth		–		–		7,286
Small Cap Value		2,681		11,870		159,709
Technology		–		–		13,511



	DISTRIBUTIONS FROM

	ORDINARY		LONG-TERM
Amounts in thousands	INCOME*		CAPITAL GAINS


Emerging Markets Equity		$1,397	$	–
Enhanced Large Cap		1,992		94
Growth Equity		9,806		35,483
Income Equity		13,295		11,604
International Growth Equity		34,403		98,366
Large Cap Value		24,511		98,670
Select Equity		700		–
Small Cap Value		6,319		65,349


	ANNUAL
	ADVISORY		EXPENSE
	FEES		LIMITATIONS


Emerging Markets Equity		0.35%		0.80%
Enhanced Large Cap		0.30%		0.60%
Growth Equity		0.85%		1.00%
Income Equity		0.85%		1.00%
International Growth Equity		1.00%		1.25%
Large Cap Value		0.85%		1.10%
Mid Cap Growth		0.85%		1.00%
Select Equity		0.85%		1.00%
Small Cap Growth		1.00%		1.25%
Small Cap Value		0.85%		1.00%
Technology		1.00%		1.25%


	UNREALIZED		UNREALIZED					COST BASIS
Amounts in thousands	APPRECIATION		DEPRECIATION			NET APPRECIATION		OF SECURITIES


Emerging Markets Equity		$179,988		$(8,177	)		$171,811		$513,153
Enhanced Large Cap		14,238		(4,686	)		9,552		163,745
Growth Equity		90,367		(16,471	)		73,896		530,915
Income Equity		75,282		(16,262	)		59,020		489,500
International Growth Equity		231,903		(14,181	)		217,722		996,721
Large Cap Value		152,994		(30,044	)		122,950		1,059,666
Mid Cap Growth		23,922		(1,603	)		22,319		174,568
Select Equity		32,480		(247	)		32,233		154,801
Small Cap Growth		7,242		(740	)		6,502		44,961
Small Cap Value		126,060		(59,469	)		67,061		961,591
Technology		31,103		(760	)		30,343		119,535


NOTES TO THE FINANCIAL STATEMENTS (continued)	SEPTEMBER 30, 2007 (UNAUDITED)


															NET			NET
			PROCEEDS		SHARES FROM							PAYMENTS			INCREASE			INCREASE
	SHARES		FROM		REINVESTED		REINVESTMENT		SHARES			FOR SHARES			(DECREASE)			(DECREASE)
Amounts in thousands	SOLD		SHARES SOLD		DIVIDENDS		OF DIVIDENDS		REDEEMED			REDEEMED			IN SHARES			IN NET ASSETS


Emerging Markets Equity		14,171		$176,894		–		$–		(6,992	)		$(90,503	)		7,179			$86,391
Enhanced Large Cap		6,088		71,072		18		209		(3,772	)		(43,865	)		2,334			27,416
Growth Equity		2,747		46,762		34		593		(3,924	)		(66,859	)		(1,143	)		(19,504	)
Income Equity		10,160		138,759		362		4,926		(4,495	)		(60,795	)		6,027			82,890
International Growth Equity		2,573		36,808		–		–		(7,374	)		(105,748	)		(4,801	)		(68,940	)
Large Cap Value		6,841		98,520		–		–		(9,294	)		(132,835	)		(2,453	)		(34,315	)
Mid Cap Growth		368		6,262		–		–		(1,140	)		(19,292	)		(772	)		(13,030	)
Select Equity		282		6,322		–		–		(1,198	)		(26,701	)		(916	)		(20,379	)
Small Cap Growth		238		3,425		–		–		(457	)		(6,490	)		(219	)		(3,065	)
Small Cap Value		20,689		346,576		–		–		(13,495	)		(224,547	)		7,194			122,029
Technology		281		3,759		–		–		(1,609	)		(21,291	)		(1,328	)		(17,532	)


NOTES TO THE FINANCIAL STATEMENTS	SEPTEMBER 30, 2007 (UNAUDITED)


		DECLARATION AND
		PAYMENT FREQUENCY


Global Real Estate Index		QUARTERLY
International Equity Index		ANNUALLY
Mid Cap Index		ANNUALLY
Small Cap Index		ANNUALLY
Stock Index		QUARTERLY



	PURCHASES				SALES
Amounts in thousands	U.S. GOVERNMENT		OTHER		U.S. GOVERNMENT		OTHER


Global Real Estate Index	$	—		$499,018	$	—		$55,869
International Equity Index		—		213,979		—		35,602
Mid Cap Index		—		74,619		—		26,629
Small Cap Index		—		49,292		—		53,882
Stock Index		—		141,639		—		16,842


	ACQUISITION
	AND		ACQUISITION
	ENFORCEABLE		COST
SECURITY	DATE		(000S)

Golden West Schools Financing Authority G.O. (CA), 3.90%, 10/9/07		7/8/05		$5,755


INDUSTRY SECTOR	% OF NET ASSETS


Administration of Environment and Housing and Real Estate		14.9	%
Air, Water Services and Solid Waste Management		9.3
Educational Services		8.9
Electric Services, Gas and Combined Utilities		7.6
Executive, Legislative and General Government		35.8
Health Services and Residential Care		6.5
Urban and Community Development and Social Services		5.0
All other sectors less than 5%		12.0

Total		100.0	%


MATURITY ANALYSIS	%

0 - 14 Days		87.9	%
61 - 90 Days		2.8
181 - 364 Days		9.3

Total		100.0	%


	ACQUISITION AND		ACQUISITION
	ENFORCEABLE		COST
SECURITY	DATE		(000S)

Danske Bank, FRN, 5.47%, 10/22/07		3/16/07		$38,996
Goldman Sachs, FRN, 5.36%, 10/25/07		7/26/07		40,000
Westpac Banking Corp., New York, FRN, 5.78%, 10/9/07		11/21/06		60,000


	COUPON	MATURITY
NAME	RATES	DATES

U.S. Treasury Bonds	2.00% - 12.50%	8/15/14 - 4/15/29
U.S. Treasury Notes	1.88% - 2.00%	1/15/14 - 7/15/15


MATURITY ANALYSIS	%

0 - 14 Days		48.1	%
15 - 30 Days		24.1
31 - 60 Days		4.8
61 - 90 Days		10.6
91 - 180 Days		7.2
181 - 364 Days		5.2

Total		100.0	%


INDUSTRY SECTOR	% OF NET ASSETS

Air, Water Services & Solid Waste Management		7.3	%
Educational Services		12.0
Electric Services, Gas and Combined Utilities		7.4
Executive, Legislative & General Government		26.8
General Medical & Surgical, Nursing and Personal Care		7.9
Health Services and Residential Care		14.6
Urban & Community Development, Housing Programs & Social Services		7.7
All other sectors less than 5%		16.3

Total		100.0	%


MATURITY ANALYSIS	%

0 - 14 Days		88.3	%
31 - 60 Days		0.5
61 - 90 Days		0.7
91 - 180 Days		3.9
181 - 364 Days		6.6

Total		100.0	%


MATURITY ANALYSIS	%

0 - 14 Days		53.4	%
15 - 30 Days		9.2
31 - 60 Days		16.0
61 - 90 Days		12.4
91 - 180 Days		6.5
181 - 364 Days		2.5

Total		100.0	%


MATURITY ANALYSIS	%

0 - 14 Days		43.8	%
15 - 30 Days		20.3
31 - 60 Days		17.9
61 - 90 Days		6.8
91 - 180 Days		10.3
181 - 364 Days		0.9

Total		100.0	%


Amounts in thousands	MARCH 31, 2011


U.S. Government Money Market		$15


					PAYMENTS FOR			NET INCREASE
	PROCEEDS FROM		REINVESTMENT		SHARES			(DECREASE) IN
Amounts in thousands*	SHARES SOLD		OF DIVIDENDS		REDEEMED			NET ASSETS


California Municipal Money Market		$3,200,843		$5,407		$(3,250,597	)		$(44,347	)
Money Market		22,738,434		101,463		(23,141,789	)		(301,892	)
Municipal Money Market		12,657,918		17,812		(13,058,506	)		(382,776	)
U.S. Government Money Market		2,765,678		8,862		(2,648,002	)		126,538
U.S. Government Select Money Market		2,515,540		8,257		(2,434,876	)		88,921


ABBREVIATIONS AND OTHER INFORMATION	SEPTEMBER 30, 2007 (UNAUDITED)



ABAG		Association of Bay Area Governments

AMBAC		American Municipal Bond Assurance Corp.

AMT		Alternative Minimum Tax

BANS		Bond Anticipation Notes

Colld.		Collateralized

COPS		Certificates of Participation

CP		Commercial Paper

EDA		Economic Development Authority

FFCB		Federal Farm Credit Bank

FGIC		Financial Guaranty Insurance Corp.

FHLB		Federal Home Loan Bank

FHLMC		Freddie Mac

FNMA		Fannie Mae

FRCD		Floating Rate Certificates of Deposit

FRCP		Floating Rate Commercial Paper

FRN		Floating Rate Notes

FSA		Financial Security Assurance

FSB		Federal Savings Bank

GNMA		Government National Mortgage Association

G.O.		General Obligation

Gtd.		Guaranteed

IDA		Industrial Development Authority

IDB		Industrial Development Board

IDR		Industrial Development Revenue

LOC		Letter of Credit

MBIA		Municipal Bond Insurance Association

MERLOTS		Municipal Exempt Receipts - Liquidity Optional Tender

MTN		Medium Term Notes

P-Floats		Puttable Floating Rate Securities

PCR		Pollution Control Revenue

PSF		Permanent School Fund

ROCS		Reset Option Certificates

SFM		Single Family Mortgage

SGB		Societe Generale Bank

Soc Gen		Societe Generale

STARS		Short Term Adjustable Rate Securities

TANS		Tax Anticipation Notes

TRANS		Tax and Revenue Anticipation Notes

TRB		Tax Revenue Bonds

TSB		Trustee Savings Bank

VRDB		Variable Rate Demand Bonds

XLCA		XL Capital Assurance


	DECLARATION	PAYMENT
	FREQUENCY	FREQUENCY


Bond Index	DAILY	MONTHLY
Fixed Income	DAILY	MONTHLY
Global Fixed Income	ANNUALLY	ANNUALLY
High Yield Fixed Income	DAILY	MONTHLY
Short-Intermediate U.S. Government	DAILY	MONTHLY
U.S. Government	DAILY	MONTHLY


Amounts in thousands


Fixed Income			$139
Short-Intermediate U.S. Government			142
U.S. Government			172



	PURCHASES				SALES
Amounts in thousands	U.S. GOVERNMENT		OTHER		U.S. GOVERNMENT		OTHER


Bond Index		$372,746		$46,002		$219,243		$450
Fixed Income		3,452,911		271,532		3,069,578		527,159
Global Fixed Income		2,898		2,179		2,014		3,440
High Yield Fixed Income		–		538,776		–		493,384
Short-Intermediate U.S. Government		767,765		–		692,768		–
U.S. Government		878,717		–		857,236		–


	MAR. 31,		MAR. 31,		MAR. 31,		MAR. 31,		MAR. 31,		MAR. 31,		MAR. 31,
Amounts in thousands	2008		2009		2010		2011		2013		2014		2015


High Yield Municipal	$	106	$	531	$	535	$	107	$	513	$	184	$	358



ACA		American Capital Access

AMBAC		American Municipal Bond Assurance Corporation

AMT		Alternative Minimum Tax

Colld.		Collateralized

COP		Certificate of Participation

FGIC		Financial Guaranty Insurance Corporation

FHA		Federal Housing Authority

FNMA		Fannie Mae

FSA		Financial Security Assurance

FSB		Federal Savings Bank

GNMA		Government National Mortgage Association

G.O.		General Obligation

Gtd.		Guaranteed

IBC		Insured Bond Certificates

IDA		Industrial Development Authority

IDR		Industrial Development Revenue

LOC		Letter of Credit

MBIA		Municipal Bond Insurance Association

PCR		Pollution Control Revenue

PFA		Public Finance Authority

PSF		Permanent School Fund

SFM		Single Family Mortgage

TCRS		Transferable Custodial Receipts

TRB		Tax Revenue Bonds

TSB		Trustee Saving Bank

VRDB		Variable Rate Demand Bonds

XLCA		XL Capital Assurance