UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-08236

                                     Northern Funds                                    

(Exact name of registrant as specified in charter)

50 South LaSalle Street

                             Chicago, IL 60603                            

(Address of principal executive offices) (Zip code)

Lloyd A. Wennlund, President

Northern Funds

50 South LaSalle Street

                            Chicago, IL 60603                             

(Name and address of agent for service)

Registrant’s telephone number, including area code: (312) 557-2790

Date of fiscal year end: March 31

Date of reporting period: June 30, 2012

Item 1. Schedule of Investments.

The registrant’s schedule of investments pursuant to Rule 30b1-5 under the Investment Company Act of 1940, as amended (the “1940 Act”), is as follows:

SCHEDULE OF INVESTMENTS

ENHANCED LARGE CAP FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.2%
Advertising - 1.3%
Interpublic Group of (The) Cos., Inc.		5,849	$	64
Omnicom Group, Inc.		2,349		114
				178
Aerospace/Defense - 3.3%
General Dynamics Corp.		1,002		66
Lockheed Martin Corp.		1,449		126
Northrop Grumman Corp.		1,821		116
Raytheon Co.		2,196		125
				433
Agriculture - 3.1%
Altria Group, Inc.		5,132		177
Archer-Daniels-Midland Co.		4,015		119
Philip Morris International, Inc.		1,226		107
				403
Banks - 8.0%
Bank of New York Mellon (The) Corp.		2,319		51
Capital One Financial Corp.		2,501		137
Citigroup, Inc.		5,073		139
Fifth Third Bancorp.		184		2
Goldman Sachs Group (The), Inc.		1,565		150
JPMorgan Chase & Co.		6,104		218
PNC Financial Services Group, Inc.		950		58
Regions Financial Corp.		16,425		111
SunTrust Banks, Inc.		4,360		106
Wells Fargo & Co.		2,608		87
				1,059
Beverages - 2.0%
Coca-Cola (The) Co.		1,063		83
Constellation Brands, Inc., Class A*		2,533		68
PepsiCo, Inc.		1,625		115
				266
Biotechnology - 1.2%
Amgen, Inc.		2,225		162
Chemicals - 2.8%
CF Industries Holdings, Inc.		599		116
Dow Chemical (The) Co.		886		28
Eastman Chemical Co.		2,159		109
PPG Industries, Inc.		1,132		120
				373
Commercial Services - 1.8%
Apollo Group, Inc., Class A*		2,906		105
H&R Block, Inc.		98		2
Total System Services, Inc.		1,570		38
Western Union (The) Co.		5,420		91
				236
Computers - 9.1%
Accenture PLC, Class A		2,366		142
Apple, Inc.*		967		565
Dell, Inc.*		9,542		119
International Business Machines Corp.		1,744		341
Western Digital Corp.*		877		27
				1,194
Cosmetics/Personal Care - 0.6%
Procter & Gamble (The) Co.		1,307		80
Distribution/Wholesale - 0.8%
Genuine Parts Co.		1,672		101
Diversified Financial Services - 0.1%
SLM Corp.		782		12
Electric - 3.7%
AES (The) Corp.*		2,916		37
Ameren Corp.		3,279		110
American Electric Power Co., Inc.		726		29
DTE Energy Co.		1,772		105
Entergy Corp.		1,435		97
FirstEnergy Corp.		1,296		64
Public Service Enterprise Group, Inc.		1,490		49
				491
Electrical Components & Equipment - 1.0%
Emerson Electric Co.		2,688		125
Electronics - 0.3%
Agilent Technologies, Inc.		858		34
Food - 1.9%
Campbell Soup Co.		3,130		104
ConAgra Foods, Inc.		3,072		80
Kroger (The) Co.		2,896		67
				251
Healthcare - Products - 1.7%
Baxter International, Inc.		1,196		64
Medtronic, Inc.		3,726		144
Stryker Corp.		287		16
				224

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

ENHANCED LARGE CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.2% continued
Healthcare - Services - 1.2%
Aetna, Inc.		2,500	$	97
UnitedHealth Group, Inc.		1,075		63
				160
Household Products/Wares - 1.0%
Kimberly-Clark Corp.		1,641		137
Insurance - 3.7%
Allstate (The) Corp.		1,407		49
American International Group, Inc.*		653		21
Assurant, Inc.		2,851		99
Berkshire Hathaway, Inc., Class B*		637		53
Hartford Financial Services Group, Inc.		6,211		110
Lincoln National Corp.		4,911		107
MetLife, Inc.		1,765		55
				494
Internet - 1.4%
Expedia, Inc.		41		2
Google, Inc., Class A*		252		146
priceline.com, Inc.*		41		27
TripAdvisor, Inc.*		219		10
				185
Iron/Steel - 0.6%
Nucor Corp.		2,138		81
Lodging - 0.8%
Marriott International, Inc., Class A		2,788		109
Machinery - Diversified - 0.0%
Cummins, Inc.		47		5
Media - 2.2%
Gannett Co., Inc.		7,371		109
McGraw-Hill (The) Cos., Inc.		2,501		113
Viacom, Inc., Class B		1,349		63
				285
Miscellaneous Manufacturing - 4.8%
3M Co.		1,872		168
Dover Corp.		1,867		100
General Electric Co.		6,198		129
Illinois Tool Works, Inc.		2,342		124
Parker Hannifin Corp.		1,448		111
				632
Office/Business Equipment - 0.3%
Pitney Bowes, Inc.		2,624		39
Oil & Gas - 10.2%
Chevron Corp.		3,054		322
ConocoPhillips		3,167		177
Exxon Mobil Corp.		6,177		528
Helmerich & Payne, Inc.		1,326		58
Marathon Oil Corp.		2,509		64
Phillips 66*		654		22
Tesoro Corp.*		1,987		50
Valero Energy Corp.		4,869		117
				1,338
Oil & Gas Services - 0.9%
National Oilwell Varco, Inc.		1,919		124
Pharmaceuticals - 7.3%
Abbott Laboratories		1,650		106
Bristol-Myers Squibb Co.		4,690		169
Eli Lilly & Co.		3,492		150
Forest Laboratories, Inc.*		62		2
Johnson & Johnson		1,410		95
McKesson Corp.		1,339		126
Merck & Co., Inc.		3,066		128
Pfizer, Inc.		8,167		188
				964
Real Estate Investment Trusts - 2.2%
HCP, Inc.		1,384		61
Health Care REIT, Inc.		1,910		111
Host Hotels & Resorts, Inc.		7,045		112
Ventas, Inc.		28		2
				286
Retail - 7.0%
Bed Bath & Beyond, Inc.*		1,103		68
Best Buy Co., Inc.		1,304		27
Big Lots, Inc.*		934		38
CVS Caremark Corp.		3,562		167
Gap (The), Inc.		4,040		111
Home Depot (The), Inc.		3,098		164
Macy’s, Inc.		3,214		110
McDonald’s Corp.		567		50
Wal-Mart Stores, Inc.		2,597		181
				916
Semiconductors - 2.7%
Intel Corp.		9,084		242
KLA-Tencor Corp.		2,252		111

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.2% continued
Semiconductors - 2.7% continued
QUALCOMM, Inc.		59	$	3
				356
Software - 4.5%
CA, Inc.		4,009		109
Microsoft Corp.		11,282		345
Oracle Corp.		4,520		134
				588
Telecommunications - 4.9%
AT&T, Inc.		9,082		324
CenturyLink, Inc.		2,338		92
Cisco Systems, Inc.		11,334		195
Verizon Communications, Inc.		851		38
				649
Transportation - 0.8%
FedEx Corp.		636		58
Norfolk Southern Corp.		180		13
United Parcel Service, Inc., Class B		419		33
				104
Total Common Stocks (Cost $11,682)				13,074
INVESTMENT COMPANIES - 0.5%
Northern Institutional Funds - Diversified Assets Portfolio(1) (2)		59,273		59
Total Investment Companies (Cost $59)				59
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.4%
U.S. Treasury Bill,
0.14%, 11/1/12(3)	$	50	$	50
Total Short-Term Investments (Cost $50)				50
Total Investments - 100.1% (Cost $11,791)				13,183
Liabilities less Other Assets - (0.1)%				(7	)
NET ASSETS - 100.0%			$	13,176

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $377,000 with net sales of approximately $318,000 during the three months ended June 30, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the Enhanced Large Cap Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
E-mini S&P 500		1	$	68		Long		9/12	$	2

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	11,959
Gross tax appreciation of investments	$	1,517
Gross tax depreciation of investments		(293	)
Net tax appreciation of investments	$	1,224

At June 30, 2012, the industry sectors for the Enhanced Large Cap Fund were :

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		10.6	%
Consumer Staples		11.4
Energy		11.2
Financials		14.2
Health Care		11.8
Industrials		10.2
Information Technology		19.9
Materials		3.5
Telecommunication Services		3.5
Utilities		3.7
Total		100.0	%

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

ENHANCED LARGE CAP FUND continued

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Enhanced Large Cap Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	13,074	(1)	$	—	$	—	$	13,074
Investment Companies		59			—		—		59
Short-Term Investments		—			50		—		50
Total Investments	$	13,133		$	50	$	—	$	13,183
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	2		$	—	$	—	$	2

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

INCOME EQUITY FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 58.7%
Banks - 2.2%
Banco Santander S.A. ADR		252,218	$	1,655
JPMorgan Chase & Co.		84,300		3,012
Morgan Stanley		217,500		3,173
				7,840
Beverages - 1.0%
Coca-Cola (The) Co.		48,210		3,770
Chemicals - 1.4%
Dow Chemical (The) Co.		161,750		5,095
Computers - 1.2%
Accenture PLC, Class A		70,680		4,247
Cosmetics/Personal Care - 1.8%
Avon Products, Inc.		185,215		3,002
Procter & Gamble (The) Co.		58,000		3,553
				6,555
Electric - 2.6%
Great Plains Energy, Inc.		282,739		6,054
NextEra Energy, Inc.		46,290		3,185
				9,239
Electrical Components & Equipment - 0.9%
Emerson Electric Co.		74,250		3,459
Food - 3.9%
B&G Foods, Inc.		149,105		3,966
Kellogg Co.		91,700		4,523
Kraft Foods, Inc., Class A		144,500		5,581
				14,070
Household Products/Wares - 1.6%
Kimberly-Clark Corp.		70,600		5,914
Insurance - 2.8%
Chubb (The) Corp.		75,400		5,490
Travelers (The) Cos., Inc.		70,000		4,469
				9,959
Media - 3.3%
Comcast Corp., Class A		180,700		5,777
Walt Disney (The) Co.		127,000		6,159
				11,936
Miscellaneous Manufacturing - 4.0%
3M Co.		62,050		5,560
Eaton Corp.		115,840		4,591
General Electric Co.		205,000		4,272
				14,423
Office/Business Equipment - 1.4%
Xerox Corp.		630,000		4,958
Oil & Gas - 8.8%
Cenovus Energy, Inc.		110,000		3,498
Chevron Corp.		34,400		3,629
ConocoPhillips		66,220		3,700
Devon Energy Corp.		79,160		4,591
Encana Corp.		203,000		4,229
Marathon Oil Corp.		124,000		3,171
Marathon Petroleum Corp.		62,000		2,785
Occidental Petroleum Corp.		60,000		5,146
Phillips 66*		32,500		1,080
				31,829
Pharmaceuticals - 9.0%
Abbott Laboratories		74,530		4,805
Bristol-Myers Squibb Co.		137,450		4,941
GlaxoSmithKline PLC ADR		119,000		5,423
Johnson & Johnson		85,000		5,742
Merck & Co., Inc.		141,866		5,923
Pfizer, Inc.		243,300		5,596
				32,430
Real Estate Investment Trusts - 3.0%
Healthcare Realty Trust, Inc.		193,800		4,620
Rayonier, Inc.		135,750		6,095
				10,715
Retail - 1.6%
Target Corp.		98,000		5,703
Savings & Loans - 1.6%
New York Community Bancorp, Inc.		450,000		5,638
Software - 1.4%
Activision Blizzard, Inc.		427,200		5,122
Telecommunications - 3.7%
Cisco Systems, Inc.		257,500		4,421
Verizon Communications, Inc.		136,355		6,060
Vodafone Group PLC ADR		100,000		2,818
				13,299
Toys, Games & Hobbies - 1.5%
Mattel, Inc.		165,000		5,353
Total Common Stocks (Cost $178,539)				211,554

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INCOME EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
CONVERTIBLE PREFERRED STOCKS - 6.0%
Auto Manufacturers - 0.3%
General Motors Co., 4.75%		35,000	$	1,162
Banks - 1.0%
Bank of America Corp., 7.25%		3,775		3,681
Computers - 1.0%
Unisys Corp., 6.25%		61,600		3,649
Insurance - 1.0%
Hartford Financial Services Group, Inc., 7.25%		199,097		3,723
Oil & Gas - 1.9%
Apache Corp., 6.00%		68,000		3,417
Chesapeake Energy Corp. 5.75%(1)		3,850		3,277
				6,694
Pharmaceuticals - 0.8%
Omnicare Capital Trust II, 4.00%		66,900		2,851
Total Convertible Preferred Stocks (Cost $24,904)				21,760
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CONVERTIBLE BONDS - 32.3%
Aerospace/Defense - 0.8%
Alliant Techsystems, Inc.,
3.00%, 8/15/24	$	3,000	$	3,038
Beverages - 0.9%
Molson Coors Brewing Co.,
2.50%, 7/30/13		3,000		3,079
Coal - 1.0%
Peabody Energy Corp.,
4.75%, 12/15/41		4,400		3,558
Commercial Services - 0.8%
United Rentals, Inc.,
4.00%, 11/15/15		907		2,826
Computers - 3.4%
CACI International, Inc.,
2.13%, 5/1/14		6,000		6,818
SanDisk Corp.,
1.50%, 8/15/17		5,300		5,505
				12,323
Diversified Financial Services - 0.5%
Jefferies Group, Inc.,
3.88%, 11/1/29		2,172		1,955
Electrical Components & Equipment - 2.4%
EnerSys,
3.38%, 6/1/38		3,350		3,840
General Cable Corp.,
0.88%, 11/15/13		2,000		1,910
4.50%, 11/15/29		3,000		2,940
				8,690
Electronics - 1.5%
TTM Technologies, Inc.,
3.25%, 5/15/15		5,409		5,382
Food - 1.9%
Tyson Foods, Inc.,
3.25%, 10/15/13		5,750		6,936
Healthcare - Products - 1.5%
Hologic, Inc.,
2.00%, 12/15/37		3,725		3,674
2.00%, 3/1/42		1,895		1,757
				5,431
Healthcare - Services - 1.5%
LifePoint Hospitals, Inc.,
3.50%, 5/15/14		5,000		5,337
Home Builders - 1.7%
D.R. Horton, Inc.,
2.00%, 5/15/14		4,125		6,048
Internet - 1.0%
Symantec Corp.,
1.00%, 6/15/13		3,700		3,760
Investment Companies - 2.3%
Fifth Street Finance Corp.,
5.38%, 4/1/16		8,582		8,325
Iron/Steel - 0.9%
ArcelorMittal,
5.00%, 5/15/14		2,965		3,054
Mining - 3.0%
Kaiser Aluminum Corp.,
4.50%, 4/1/15		3,447		4,266
Newmont Mining Corp.,
1.63%, 7/15/17		5,000		6,581
				10,847

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CONVERTIBLE BONDS - 32.3% continued
Retail - 2.7%
Regis Corp.,
5.00%, 7/15/14	$	6,060	$	7,848
Sonic Automotive, Inc.,
5.00%, 10/1/29		1,350		1,782
				9,630
Semiconductors - 3.4%
Intel Corp.,
2.95%, 12/15/35		6,000		6,743
Lam Research Corp.,
1.25%, 5/15/18		5,650		5,572
				12,315
Telecommunications - 1.1%
Comtech Telecommunications Corp.,
3.00%, 5/1/29		3,875		4,122
Total Convertible Bonds (Cost $109,274)				116,656
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2.6%
Northern Institutional Funds - Diversified Assets Portfolio(2) (3)		9,361,579	$	9,362
Total Investment Companies (Cost $9,362)				9,362
Total Investments - 99.6% (Cost $322,079)				359,332
Other Assets less Liabilities - 0.4%				1,481
NET ASSETS - 100.0%			$	360,813

(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) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(3) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $537,000 with net purchases of approximately $8,825,000 during the three months ended June 30, 2012.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	325,569
Gross tax appreciation of investments	$	50,628
Gross tax depreciation of investments		(16,865	)
Net tax appreciation of investments	$	33,763

At June 30, 2012, the industry sectors for the Income Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.4	%
Consumer Staples		11.5
Energy		12.0
Financials		14.8
Health Care		13.2
Industrials		9.3
Information Technology		17.2
Materials		5.4
Telecommunication Services		2.6
Utilities		2.6
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Income Equity Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	211,554	(1)	$	—	$	—	$	211,554
Convertible Preferred Stocks
Auto Manufacturers		1,162			—		—		1,162
Banks		3,681			—		—		3,681
Computers		3,649			—		—		3,649
Insurance		3,723			—		—		3,723
Oil & Gas		3,417			3,277		—		6,694
Pharmaceuticals		—			2,851		—		2,851

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INCOME EQUITY FUND continued

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Convertible Bonds	$	—	$	116,656	$	—	$	116,656
Investment Companies		9,362		—		—		9,362
Total Investments	$	236,548	$	122,784	$	—	$	359,332

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, the Fund had transfers from Level 1 to Level 2 in the Pharmaceuticals sector of Convertible Preferred Stocks of $2,851,000 due to valuations at a bid price. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.8%
Australia - 2.1%
Alumina Ltd.		1,393,393	$	1,144
Woodside Petroleum Ltd.		61,861		1,980
WorleyParsons Ltd.		51,448		1,336
				4,460
Belgium - 2.4%
Anheuser-Busch InBev N.V.		63,343		4,925
Brazil - 2.9%
Petroleo Brasileiro S.A., ADR		116,381		2,184
Vale S.A., ADR		189,469		3,761
				5,945
China - 1.5%
Bank of China Ltd., Class H		8,309,845		3,180
Denmark - 1.0%
Novo Nordisk A/S, Class B		14,891		2,155
France - 9.1%
ArcelorMittal		222,520		3,438
BNP Paribas S.A.		60,693		2,343
Bouygues S.A.		129,162		3,481
Danone S.A.		52,237		3,243
Legrand S.A.		616		21
Societe Generale S.A.*		84,334		1,988
Total S.A.		45,860		2,070
Wendel S.A.		30,157		2,231
				18,815
Germany - 11.6%
Adidas A.G.		31,957		2,292
Allianz S.E. (Registered)		27,028		2,718
Bayer A.G. (Registered)		31,451		2,268
Deutsche Bank A.G. (Registered)		72,931		2,651
E.ON A.G.		31,203		672
GEA Group A.G.		101,342		2,691
Infineon Technologies A.G.		301,921		2,047
SAP A.G.		84,528		4,992
Siemens A.G. (Registered)		46,177		3,882
				24,213
Hong Kong - 0.7%
AIA Group Ltd.		428,850		1,479
Ireland - 1.6%
WPP PLC		268,628		3,265
Japan - 12.4%
Canon, Inc.		90,279		3,615
Kansai Electric Power (The) Co., Inc.		97,200		1,164
Kawasaki Heavy Industries Ltd.		735,500		2,013
Kubota Corp.		256,200		2,365
Mitsubishi UFJ Financial Group, Inc.		985,848		4,718
Mitsui & Co. Ltd.		198,000		2,938
NTT DoCoMo, Inc.		1,760		2,929
Shimano, Inc.		39,648		2,594
Tokio Marine Holdings, Inc.		132,900		3,342
				25,678
Netherlands - 5.5%
ASML Holding N.V.		57,463		2,928
Koninklijke Vopak N.V.		52,112		3,342
Royal Dutch Shell PLC, Class B		145,875		5,091
				11,361
Norway - 0.6%
TGS Nopec Geophysical Co. ASA		50,016		1,348
Portugal - 1.3%
Jeronimo Martins SGPS S.A.		164,361		2,774
Singapore - 1.5%
DBS Group Holdings Ltd.		292,181		3,225
South Korea - 3.5%
Hyundai Motor Co.		23,307		4,781
Samsung Electronics Co. Ltd.		2,300		2,439
				7,220
Spain - 1.2%
Banco Santander S.A.		367,494		2,455
Sweden - 2.5%
Husqvarna AB, Class B		559,851		2,650
Telefonaktiebolaget LM Ericsson, Class B		283,382		2,586
				5,236
Switzerland - 9.1%
ABB Ltd. (Registered)		60,542		988
Credit Suisse Group A.G. (Registered)		107,231		1,959
Givaudan S.A. (Registered)*		2,317		2,276
Novartis A.G. (Registered)		80,548		4,493
Roche Holding A.G. (Genusschein)		25,351		4,377
Syngenta A.G. (Registered)		6,457		2,205
Xstrata PLC		200,017		2,525
				18,823
United Kingdom - 20.2%
BAE Systems PLC		319,324		1,445

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.8% continued
United Kingdom - 20.2% continued
Barclays PLC		1,476,001	$	3,778
BP PLC		529,856		3,550
Compass Group PLC		395,592		4,150
GlaxoSmithKline PLC		170,022		3,855
Man Group PLC		1,937,095		2,316
Pearson PLC		213,892		4,248
Prudential PLC		383,177		4,440
Rolls-Royce Holdings PLC*		124,148		1,675
Standard Chartered PLC		177,218		3,864
Vodafone Group PLC		1,939,160		5,449
Weir Group (The) PLC		131,754		3,178
				41,948
United States - 4.1%
Mead Johnson Nutrition Co.		39,932		3,215
Schlumberger Ltd.		48,638		3,157
Virgin Media, Inc.		91,679		2,236
				8,608
Total Common Stocks(1) (Cost $194,566)(1)				197,113
PREFERRED STOCKS - 3.7%
Brazil - 1.7%
Itau Unibanco Holding S.A., ADR		255,820		3,561
Germany - 2.0%
Volkswagen A.G.		25,703		4,075
Total Preferred Stocks(1) (Cost $10,135)(1)				7,636
INVESTMENT COMPANIES - 0.7%
Northern Institutional Funds - Diversified Assets Portfolio(2) (3)		1,504,861		1,505
Total Investment Companies (Cost $1,505)				1,505
Total Investments - 99.2% (Cost $206,206)				206,254
Other Assets less Liabilities - 0.8%				1,593
NET ASSETS - 100.0%			$	207,847

(1) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $3,881,000 with net sales of approximately $2,376,000 during the three months ended June 30, 2012.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the industry sectors for the International Equity Fund were:

INDUSTRY SECTOR	% OF LONG TERM INVESTMENTS
Consumer Discretionary		14.8	%
Consumer Staples		6.9
Energy		10.1
Financials		24.5
Health Care		8.4
Industrials		13.7
Information Technology		9.1
Materials		7.5
Telecommunication Services		4.1
Utilities		0.9
Total		100.0	%

At June 30, 2012, the International Equity Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
Euro		31.0	%
British Pound		25.8
Japanese Yen		12.5
United States Dollar		8.9
Swiss Franc		8.0
All other currencies less than 5%		13.8
Total		100.0	%

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	211,384
Gross tax appreciation of investments	$	30,114
Gross tax depreciation of investments		(35,244	)
Net tax depreciation of investments	$	(5,130	)

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on June 30, 2012 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the International Equity Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	2,236	$	23,981	$	—	$	26,217
Consumer Staples		3,215		10,941		—		14,156
Energy		5,341		15,376		—		20,717
Financials		—		46,687		—		46,687
Health Care		—		17,148		—		17,148
Industrials		—		28,018		—		28,018
Information Technology		—		18,607		—		18,607
Materials		3,761		11,587		—		15,348
Telecommunication Services		—		8,378		—		8,378
Utilities		—		1,837		—		1,837
Preferred Stocks
Consumer Discretionary		—		4,075		—		4,075
Financials		3,561		—				3,561
Investment Companies		1,505		—		—		1,505
Total Investments	$	19,619	$	186,635	$	—	$	206,254

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP EQUITY FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.0%
Agriculture - 2.7%
Philip Morris International, Inc.		41,738	$	3,642
Apparel - 1.1%
VF Corp.		10,669		1,424
Auto Parts & Equipment - 0.5%
Johnson Controls, Inc.		26,650		738
Banks - 9.9%
Capital One Financial Corp.		42,195		2,306
Citigroup, Inc.		37,644		1,032
JPMorgan Chase & Co.		99,199		3,544
U.S. Bancorp		90,285		2,904
Wells Fargo & Co.		105,264		3,520
				13,306
Beverages - 1.9%
Anheuser-Busch InBev N.V. ADR		32,039		2,552
Biotechnology - 1.0%
Celgene Corp.*		20,781		1,333
Chemicals - 1.3%
Monsanto Co.		20,834		1,725
Commercial Services - 0.3%
Global Payments, Inc.		9,102		393
Computers - 9.5%
Apple, Inc.*		13,100		7,650
EMC Corp.*		96,297		2,468
International Business Machines Corp.		7,121		1,393
Teradata Corp.*		17,348		1,249
				12,760
Cosmetics/Personal Care - 1.4%
Procter & Gamble (The) Co.		31,587		1,935
Diversified Financial Services - 2.2%
Discover Financial Services		36,215		1,252
IntercontinentalExchange, Inc.*		12,984		1,766
				3,018
Electric - 3.3%
Dominion Resources, Inc.		40,891		2,208
Southern (The) Co.		47,092		2,180
				4,388
Electronics - 1.2%
Honeywell International, Inc.		29,449		1,644
Healthcare - Products - 3.8%
Baxter International, Inc.		32,876		1,747
Covidien PLC		29,299		1,568
St. Jude Medical, Inc.		44,898		1,792
				5,107
Healthcare - Services - 2.0%
Aetna, Inc.		46,472		1,802
Humana, Inc.		11,041		855
				2,657
Insurance - 1.6%
CNO Financial Group, Inc.		227,716		1,776
MGIC Investment Corp.*		116,137		335
				2,111
Internet - 1.6%
F5 Networks, Inc.*		7,483		745
Google, Inc., Class A*		2,322		1,347
				2,092
Media - 3.2%
Comcast Corp., Class A		68,069		2,176
Walt Disney (The) Co.		44,580		2,162
				4,338
Metal Fabrication/Hardware - 1.2%
Precision Castparts Corp.		9,474		1,558
Mining - 0.6%
BHP Billiton Ltd. ADR		11,478		750
Miscellaneous Manufacturing - 4.9%
Dover Corp.		31,350		1,681
General Electric Co.		232,742		4,850
				6,531
Oil & Gas - 8.8%
Apache Corp.		10,759		946
Chevron Corp.		33,415		3,525
Exxon Mobil Corp.		54,677		4,679
Noble Energy, Inc.		17,757		1,506
Suncor Energy, Inc.		42,290		1,224
				11,880
Oil & Gas Services - 2.7%
National Oilwell Varco, Inc.		23,012		1,483
Schlumberger Ltd.		33,695		2,187
				3,670

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.0% continued
Pharmaceuticals - 9.1%
BioMarin Pharmaceutical, Inc.*		16,878	$	668
Cardinal Health, Inc.		47,951		2,014
Express Scripts Holding Co.*		47,917		2,675
Mead Johnson Nutrition Co.		12,748		1,026
Merck & Co., Inc.		56,304		2,351
Pfizer, Inc.		149,465		3,438
				12,172
Pipelines - 0.9%
Spectra Energy Corp.		42,084		1,223
Retail - 10.1%
CVS Caremark Corp.		47,839		2,235
Darden Restaurants, Inc.		37,499		1,899
Dick’s Sporting Goods, Inc.		27,872		1,338
Nordstrom, Inc.		23,023		1,144
Target Corp.		30,277		1,762
TJX Cos., Inc.		55,152		2,368
Walgreen Co.		54,868		1,623
Wal-Mart Stores, Inc.		17,976		1,253
				13,622
Semiconductors - 3.2%
Intel Corp.		81,908		2,183
QUALCOMM, Inc.		38,882		2,165
				4,348
Software - 3.2%
Citrix Systems, Inc.*		14,561		1,222
Oracle Corp.		102,310		3,039
				4,261
Telecommunications - 4.8%
AT&T, Inc.		55,057		1,963
CenturyLink, Inc.		52,049		2,056
Cisco Systems, Inc.		143,994		2,472
				6,491
Transportation - 1.0%
Kansas City Southern		19,580		1,362
Total Common Stocks (Cost $109,523)				133,031
INVESTMENT COMPANIES - 1.0%
Northern Institutional Funds - Diversified Assets Portfolio(1) (2)		1,420,758		1,421
Total Investment Companies (Cost $1,421)				1,421
Total Investments - 100.0% (Cost $110,944)				134,452
Liabilities less Other Assets - 0.0%				(23	)
NET ASSETS - 100.0%			$	134,429

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $1,177,000 with net purchases of approximately $244,000 during the three months ended June 30, 2012.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	112,983
Gross tax appreciation of investments	$	25,671
Gross tax depreciation of investments		(4,202	)
Net tax appreciation of investments	$	21,469

At June 30, 2012, the industry sectors for the Large Cap Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.3	%
Consumer Staples		10.7
Energy		12.6
Financials		13.9
Health Care		15.2
Industrials		8.3
Information Technology		19.8
Materials		1.9
Telecommunication Services		3.0
Utilities		3.3
Total		100.0	%

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Large Cap Equity Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	133,031	(1)	$	—	$	—	$	133,031
Investment Companies		1,421			—		—		1,421
Total Investments	$	134,452		$	—	$	—	$	134,452

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

Transactions in options written by the Large Cap Equity Fund during the three months ended June 30, 2012, were as follows:

	NUMBER OF CONTRACTS			PREMIUMS RECEIVED (000’S)
Options outstanding at March 31, 2012		60		$	13
Options Written		24			3
Options expired and closed		(84	)		(16	)
Options outstanding at June 30, 2012		—		$	—

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP GROWTH FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6%
Aerospace/Defense - 2.1%
Boeing (The) Co.		13,775	$	1,023
United Technologies Corp.		11,557		873
				1,896
Apparel - 2.3%
Coach, Inc.		12,665		740
NIKE, Inc., Class B		14,818		1,301
				2,041
Auto Parts & Equipment - 1.0%
Johnson Controls, Inc.		31,998		887
Beverages - 1.6%
PepsiCo, Inc.		20,503		1,449
Biotechnology - 5.0%
Alexion Pharmaceuticals, Inc.*		13,675		1,358
Biogen Idec, Inc.*		9,959		1,438
Celgene Corp.*		25,658		1,646
				4,442
Chemicals - 3.3%
E.I. du Pont de Nemours & Co.		31,093		1,573
Monsanto Co.		16,565		1,371
				2,944
Commercial Services - 2.1%
Mastercard, Inc., Class A		4,224		1,817
Computers - 14.4%
Apple, Inc.*		11,800		6,891
Cognizant Technology Solutions Corp., Class A*		21,826		1,310
EMC Corp.*		64,420		1,651
International Business Machines Corp.		8,750		1,711
Teradata Corp.*		15,730		1,133
				12,696
Cosmetics/Personal Care - 1.2%
Estee Lauder (The) Cos., Inc., Class A		19,684		1,065
Distribution/Wholesale - 1.0%
W.W. Grainger, Inc.		4,537		868
Diversified Financial Services - 3.0%
American Express Co.		27,225		1,585
IntercontinentalExchange, Inc.*		7,550		1,026
				2,611
Electronics - 1.1%
Trimble Navigation Ltd.*		20,700		952
Environmental Control - 1.2%
Stericycle, Inc.*		11,575		1,061
Food - 1.9%
Whole Foods Market, Inc.		17,920		1,708
Healthcare - Products - 3.2%
Covidien PLC		16,225		868
Intuitive Surgical, Inc.*		3,614		2,001
				2,869
Internet - 8.9%
Amazon.com, Inc.*		9,150		2,089
F5 Networks, Inc.*		10,320		1,028
Google, Inc., Class A*		5,561		3,226
priceline.com, Inc.*		2,271		1,509
				7,852
Machinery - Diversified - 2.4%
Cummins, Inc.		11,712		1,135
Deere & Co.		12,584		1,018
				2,153
Media - 2.8%
DIRECTV, Class A*		18,305		894
Walt Disney (The) Co.		32,030		1,553
				2,447
Metal Fabrication/Hardware - 1.3%
Precision Castparts Corp.		7,126		1,172
Miscellaneous Manufacturing - 2.0%
Danaher Corp.		33,265		1,733
Oil & Gas - 1.2%
Noble Energy, Inc.		12,099		1,026
Oil & Gas Services - 3.1%
National Oilwell Varco., Inc.		20,173		1,300
Schlumberger Ltd.		22,635		1,469
				2,769
Pharmaceuticals - 5.1%
Abbott Laboratories		20,050		1,293
Allergan, Inc.		11,737		1,087
Express Scripts Holding Co.*		19,028		1,062
Perrigo Co.		9,026		1,064
				4,506
Real Estate Investment Trusts - 1.3%
American Tower Corp.		15,985		1,118

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP GROWTH FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
Retail - 11.2%
Costco Wholesale Corp.		12,650	$	1,202
Dick’s Sporting Goods, Inc.		17,583		844
Dollar Tree, Inc.*		20,020		1,077
Home Depot (The), Inc.		18,300		970
Lululemon Athletica, Inc.*		14,306		853
McDonald’s Corp.		13,555		1,200
Panera Bread Co., Class A*		3,172		442
Starbucks Corp.		32,330		1,724
Tractor Supply Co.		5,237		435
Ulta Salon Cosmetics & Fragrance, Inc.		11,863		1,108
				9,855
Semiconductors - 2.9%
ARM Holdings PLC ADR		30,305		721
QUALCOMM, Inc.		33,518		1,866
				2,587
Software - 7.3%
Autodesk, Inc.*		23,300		815
Cerner Corp.*		13,916		1,150
Citrix Systems, Inc.*		24,050		2,019
Red Hat, Inc.*		17,610		995
Salesforce.com, Inc.*		8,971		1,240
VeriFone Systems, Inc.*		5,565		184
				6,403
Transportation - 1.7%
Kansas City Southern		21,075		1,466
Total Common Stocks (Cost $68,475)				84,393
INVESTMENT COMPANIES - 4.8%
Northern Institutional Funds - Diversified Assets Portfolio(1) (2)		4,177,819		4,178
Total Investment Companies (Cost $4,178)				4,178
Total Investments - 100.4% (Cost $72,653)				88,571
Liabilities less Other Assets - (0.4)%				(323	)
NET ASSETS - 100.0%			$	88,248

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $3,386,000 with net purchases of approximately $792,000 during the three months ended June 30, 2012.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the industry sectors for the Large Cap Growth Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		20.9	%
Consumer Staples		6.4
Energy		4.5
Financials		4.4
Health Care		15.4
Industrials		12.3
Information Technology		32.6
Materials		3.5
Total		100.0	%

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amount in thousands)

Federal tax cost of investments	$	72,798
Gross tax appreciation of investments	$	16,746
Gross tax depreciation of investments		(973	)
Net tax appreciation of investments	$	15,773

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Large Cap Growth Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	84,393	(1)	$	—	$	—	$	84,393
Investment Companies		4,178			—		—		4,178
Total Investments	$	88,571		$	—	$	—	$	88,571

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP VALUE FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.4%
Advertising - 2.5%
Omnicom Group, Inc.		56,640	$	2,753
Aerospace/Defense - 2.9%
Boeing (The) Co.		43,345		3,220
Agriculture - 1.4%
Philip Morris International, Inc.		17,430		1,521
Auto Parts & Equipment - 0.4%
Johnson Controls, Inc.		18,110		502
Banks - 8.7%
Bank of New York Mellon (The) Corp.		68,580		1,505
Goldman Sachs Group (The), Inc.		23,335		2,237
JPMorgan Chase & Co.		73,400		2,623
Wells Fargo & Co.		101,105		3,381
				9,746
Beverages - 1.8%
Coca-Cola (The) Co.		9,685		757
PepsiCo, Inc.		18,675		1,320
				2,077
Building Materials - 0.3%
Masco Corp.		24,155		335
Chemicals - 1.6%
Dow Chemical (The) Co.		57,135		1,800
Computers - 2.5%
Hewlett-Packard Co.		90,890		1,828
SanDisk Corp.*		27,810		1,014
				2,842
Diversified Financial Services - 5.8%
BlackRock, Inc.		12,984		2,205
CME Group, Inc.		6,915		1,854
Invesco Ltd.		106,570		2,408
				6,467
Electrical Components & Equipment - 1.0%
Energizer Holdings, Inc.*		14,480		1,090
Food - 0.6%
Kraft Foods, Inc., Class A		18,015		696
Healthcare - Products - 1.9%
Medtronic, Inc.		54,410		2,107
Housewares - 2.3%
Newell Rubbermaid, Inc.		142,245		2,580
Insurance - 7.2%
Allstate (The) Corp.		81,345		2,854
MetLife, Inc.		86,545		2,670
Prudential Financial, Inc.		51,715		2,505
				8,029
Investment Companies - 1.8%
KKR & Co. L.P.		155,570		2,005
Mining - 1.0%
Freeport-McMoRan Copper & Gold, Inc.		14,125		481
Newmont Mining Corp.		13,800		670
				1,151
Miscellaneous Manufacturing - 5.8%
3M Co.		15,860		1,421
General Electric Co.		126,185		2,630
Siemens A.G. ADR		28,685		2,411
				6,462
Oil & Gas - 8.3%
Chevron Corp.		32,375		3,415
Ensco PLC, Class A		45,050		2,116
Exxon Mobil Corp.		43,575		3,729
				9,260
Oil & Gas Services - 4.3%
Baker Hughes, Inc.		66,675		2,740
Schlumberger Ltd.		31,500		2,045
				4,785
Pharmaceuticals - 12.0%
Abbott Laboratories		34,865		2,248
Johnson & Johnson		25,370		1,714
Merck & Co., Inc.		66,075		2,758
Pfizer, Inc.		135,855		3,125
Sanofi ADR		45,525		1,720
Teva Pharmaceutical Industries Ltd. ADR		48,105		1,897
				13,462
Retail - 4.5%
Target Corp.		41,650		2,423
Wal-Mart Stores, Inc.		38,265		2,668
				5,091
Savings & Loans - 1.8%
New York Community Bancorp, Inc.		164,395		2,060
Semiconductors - 4.5%
Applied Materials, Inc.		81,780		937
Intel Corp.		101,575		2,707

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.4% continued
Semiconductors - 4.5% continued
QUALCOMM, Inc.		25,225	$	1,405
				5,049
Software - 2.4%
Microsoft Corp.		87,025		2,662
Telecommunications - 8.1%
AT&T, Inc.		96,090		3,427
Cisco Systems, Inc.		163,580		2,809
Vodafone Group PLC ADR		99,765		2,811
				9,047
Total Common Stocks (Cost $93,301)				106,799
INVESTMENT COMPANIES - 3.1%
Northern Institutional Funds - Diversified Assets Portfolio(1) (2)		3,447,933		3,448
Total Investment Companies (Cost $3,448)				3,448
Total Investments - 98.5% (Cost $96,749)				110,247
Other Assets less Liabilities - 1.5%				1,629
NET ASSETS - 100.0%			$	111,876

(1) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $2,058,000 with net purchases of approximately $1,390,000 during the three months ended June 30, 2012.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

Federal tax cost of investments	$	97,303
Gross tax appreciation of investments	$	16,721
Gross tax depreciation of investments		(3,777	)
Net tax appreciation of investments	$	12,944

At June 30, 2012, the industry sectors for the Large Cap Value Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		7.7	%
Consumer Staples		7.5
Energy		13.2
Financials		26.5
Health Care		14.6
Industrials		9.4
Information Technology		12.5
Materials		2.8
Telecommunication Services		5.8
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Large Cap Value Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	106,799	(1)	$	—	$	—	$	106,799
Investment Companies		3,448			—		—		3,448
Total Investments	$	110,247		$	—	$	—	$	110,247

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6%
Advertising - 0.0%
Harte-Hanks, Inc.		7,184	$	66
Marchex, Inc., Class B		3,371		12
				78
Aerospace/Defense - 1.5%
AAR Corp.		4,086		55
Aerovironment, Inc.*		1,213		32
Alliant Techsystems, Inc.		4,400		223
Astronics Corp.*		3,044		86
Astronics Corp., Class B*		126		3
Breeze-Eastern Corp.*		6,755		41
Cubic Corp.		4,053		195
Curtiss-Wright Corp.		5,543		172
Ducommun, Inc.*		2,979		29
Esterline Technologies Corp.*		3,270		204
GenCorp, Inc.*		13,200		86
HEICO Corp.		7,012		277
Kaman Corp.		4,166		129
Kratos Defense & Security Solutions, Inc.*		557		3
LMI Aerospace, Inc.*		1,714		30
Moog, Inc., Class A*		6,136		254
National Presto Industries, Inc.		937		65
Orbital Sciences Corp.*		6,353		82
SIFCO Industries, Inc.		522		12
Teledyne Technologies, Inc.*		5,467		337
Triumph Group, Inc.		4,856		273
				2,588
Agriculture - 0.4%
Adecoagro S.A.*		1,025		9
Alico, Inc.		1,147		35
Alliance One International, Inc.*		10,293		36
Andersons (The), Inc.		3,343		143
Cadiz, Inc.*		4,335		31
Griffin Land & Nurseries, Inc.		153		4
Tejon Ranch Co.*		2,858		82
Universal Corp.		3,527		164
Vector Group Ltd.		7,120		121
				625
Airlines - 0.6%
Alaska Air Group, Inc.*		9,783		351
Allegiant Travel Co.*		2,868		200
Hawaiian Holdings, Inc.*		1,883		12
JetBlue Airways Corp.*		24,705		131
Republic Airways Holdings, Inc.*		1,618		9
SkyWest, Inc.		7,999		52
US Airways Group, Inc.*		18,928		253
				1,008
Apparel - 1.3%
Carter’s, Inc.*		5,981		315
Cherokee, Inc.		554		8
Columbia Sportswear Co.		2,590		139
Crocs, Inc.*		11,002		178
Delta Apparel, Inc.*		1,398		19
Ennis, Inc.		5,021		77
G-III Apparel Group Ltd.*		4,590		109
Iconix Brand Group, Inc.*		9,764		170
Jones Group (The), Inc.		8,951		85
K-Swiss, Inc., Class A*		2,442		7
Maidenform Brands, Inc.*		554		11
Oxford Industries, Inc.		2,859		128
Perry Ellis International, Inc.*		2,702		56
Quiksilver, Inc.*		21,001		49
Skechers U.S.A., Inc., Class A*		4,070		83
Steven Madden Ltd.*		3,684		117
Superior Uniform Group, Inc.		3,836		47
True Religion Apparel, Inc.		4,454		129
Unifi, Inc.*		2,442		28
Warnaco Group (The), Inc.*		4,726		201
Weyco Group, Inc.		665		15
Wolverine World Wide, Inc.		7,727		300
				2,271
Auto Manufacturers - 0.0%
Wabash National Corp.*		8,018		53
Auto Parts & Equipment - 0.7%
American Axle & Manufacturing
Holdings, Inc.*		2,964		31
Amerigon, Inc.*		934		11
Cooper Tire & Rubber Co.		8,555		150
Dana Holding Corp.		20,430		262
Dorman Products, Inc.*		4,308		108
Exide Technologies*		6,620		22
Fuel Systems Solutions, Inc.*		5,193		87
Meritor, Inc.*		2,183		11
Miller Industries, Inc.		3,568		57
Modine Manufacturing Co.*		7,414		51
Spartan Motors, Inc.		1,367		7
Standard Motor Products, Inc.		4,184		59

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Auto Parts & Equipment - 0.7% continued
Superior Industries International, Inc.		4,878	$	80
Tenneco, Inc.*		6,820		183
Titan International, Inc.		4,971		122
				1,241
Banks - 5.5%
1st Source Corp.		5,711		129
Alliance Bancorp, Inc. of Pennsylvania		567		7
Alliance Financial Corp.		150		5
American National Bankshares, Inc.		2,719		64
Ameris Bancorp*		827		10
Ames National Corp.		2,691		62
Arrow Financial Corp.		2,783		67
Bancorp, Inc.*		1,480		14
BancorpSouth, Inc.		10,536		153
Bank of Kentucky Financial Corp.		1,025		27
Bank of Marin Bancorp		430		16
Bank of South Carolina Corp.		200		2
Bank of the Ozarks, Inc.		2,961		89
Banner Corp.		193		4
Bar Harbor Bankshares		1,851		67
BBCN Bancorp, Inc.*		941		10
BCB Bancorp, Inc.		665		7
Berkshire Bancorp, Inc.*		321		3
Boston Private Financial Holdings, Inc.		2,708		24
Bryn Mawr Bank Corp.		3,324		70
Camden National Corp.		832		31
Capital City Bank Group, Inc.		4,080		30
Cardinal Financial Corp.		1,202		15
Cass Information Systems, Inc.		167		7
Cathay General Bancorp		7,885		130
Center Bancorp, Inc.		5,717		64
Centerstate Banks, Inc.		671		5
Century Bancorp, Inc., Class A		2,620		78
Chemical Financial Corp.		4,682		101
Citizens & Northern Corp.		688		13
City Holding Co.		2,720		92
CoBiz Financial, Inc.		1,644		10
Columbia Banking System, Inc.		3,382		64
Commercial National Financial Corp.		121		3
Community Bank System, Inc.		3,236		88
Community Trust Bancorp, Inc.		2,557		86
CVB Financial Corp.		13,772		161
Eagle Bancorp, Inc.*		4,080		64
Enterprise Bancorp, Inc.		657		11
Enterprise Financial Services Corp.		803		9
Farmers Capital Bank Corp.*		663		4
Fidelity Southern Corp.		1,690		15
Financial Institutions, Inc.		3,794		64
First Bancorp		1,578		14
First Bancorp, Inc.		3,247		55
First Busey Corp.		15,652		76
First Citizens BancShares, Inc., Class A		372		62
First Community Bancshares, Inc.		4,626		67
First Financial Bancorp		7,296		117
First Financial Bankshares, Inc.		3,052		106
First Financial Corp.		2,863		83
First Horizon National Corp. -
(Fractional Shares)*		38,609		—
First Merchants Corp.		1,221		15
First Midwest Bancorp, Inc.		7,990		88
First of Long Island (The) Corp.		2,638		76
First South Bancorp, Inc.*		522		2
FirstMerit Corp.		12,611		208
FNB Corp.		14,475		157
German American Bancorp, Inc.		411		8
Glacier Bancorp, Inc.		8,017		124
Great Southern Bancorp, Inc.		5,851		161
Guaranty Bancorp*		4,886		10
Hancock Holding Co.		7,751		236
Hanmi Financial Corp.*		151		2
Hawthorn Bancshares, Inc.		612		6
Heartland Financial USA, Inc.		663		16
Heritage Financial Corp.		657		10
Home BancShares, Inc.		372		11
Hudson Valley Holding Corp.		186		3
IBERIABANK Corp.		3,411		172
Independent Bank Corp.		3,525		103
International Bancshares Corp.		5,441		106
Jeffersonville Bancorp		214		2
Lakeland Bancorp, Inc.		7,490		79
Lakeland Financial Corp.		1,080		29
MainSource Financial Group, Inc.		1,204		14
MB Financial, Inc.		6,237		134
Merchants Bancshares, Inc.		2,461		68
Metro Bancorp, Inc.*		814		10
Middleburg Financial Corp.		2,590		44
MidSouth Bancorp, Inc.		798		11
MidWestOne Financial Group, Inc.		525		11
National Bankshares, Inc.		1,900		57

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Banks - 5.5% continued
National Penn Bancshares, Inc.		15,172	$	145
NBT Bancorp, Inc.		4,871		105
Northrim BanCorp, Inc.		3,051		66
Norwood Financial Corp.		2,047		58
Ohio Valley Banc Corp.		758		15
Old National Bancorp		9,483		114
Oriental Financial Group, Inc.		7,671		85
Orrstown Financial Services, Inc.		1,758		14
Pacific Capital Bancorp*		173		8
Pacific Continental Corp.		814		7
PacWest Bancorp		4,845		115
Park National Corp.		2,051		143
Peapack Gladstone Financial Corp.		671		10
Peoples Bancorp, Inc.		832		18
Peoples Financial Corp.		421		4
Pinnacle Financial Partners, Inc.*		4,626		90
Popular, Inc.*		10,937		182
Porter Bancorp, Inc.*		723		1
Premier Financial Bancorp, Inc.*		951		7
PrivateBancorp, Inc.		5,012		74
Prosperity Bancshares, Inc.		5,559		234
QCR Holdings, Inc.		716		9
Renasant Corp.		2,163		34
Republic Bancorp, Inc., Class A		1,964		44
Republic First Bancorp, Inc.*		1,490		3
S&T Bancorp, Inc.		4,885		90
S.Y. Bancorp, Inc.		2,809		67
Sandy Spring Bancorp, Inc.		4,070		73
Savannah Bancorp (The), Inc.*		663		3
SCBT Financial Corp.		4,036		142
Seacoast Banking Corp. of Florida*		4,325		7
Shore Bancshares, Inc.		832		5
Sierra Bancorp		832		8
Signature Bank*		4,664		284
Simmons First National Corp., Class A		2,728		64
Southern National Bancorp of
Virginia, Inc.		712		5
Southside Bancshares, Inc.		3,005		68
Southwest Bancorp, Inc.*		827		8
StellarOne Corp.		1,236		15
Sterling Bancorp		942		9
Sterling Financial Corp.*		3,636		69
Suffolk Bancorp*		665		9
Sun Bancorp, Inc.*		1,750		5
Susquehanna Bancshares, Inc.		19,743		203
SVB Financial Group*		4,614		271
Synovus Financial Corp.		79,816		158
Texas Capital Bancshares, Inc.*		4,704		190
Tompkins Financial Corp.		2,525		95
TowneBank		1,547		22
Trico Bancshares		3,113		48
TrustCo Bank Corp. NY		9,086		50
Trustmark Corp.		6,523		160
UMB Financial Corp.		4,886		250
Umpqua Holdings Corp.		14,521		191
Union First Market Bankshares Corp.		832		12
United Bancorp, Inc.		665		6
United Bankshares, Inc.		5,701		148
United Community Bancorp		1,021		6
United Community Banks, Inc.*		5,944		51
Univest Corp. of Pennsylvania		554		9
Valley National Bancorp		696		7
Washington Banking Co.		657		9
Washington Trust Bancorp, Inc.		3,652		89
Webster Financial Corp.		6,384		138
WesBanco, Inc.		2,578		55
West Bancorporation, Inc.		1,095		10
Westamerica Bancorporation		3,391		160
Western Alliance Bancorp*		1,743		16
Wilshire Bancorp, Inc.*		693		4
Wintrust Financial Corp.		2,858		102
Yadkin Valley Financial Corp.*		2,176		6
				9,510
Beverages - 0.3%
Boston Beer (The) Co., Inc., Class A*		832		101
Central European Distribution Corp.*		9,231		26
Coca-Cola Bottling Co. Consolidated		1,745		112
Craft Brew Alliance, Inc.*		7,645		63
Farmer Bros. Co.*		6,889		55
National Beverage Corp.*		3,106		46
Peet’s Coffee & Tea, Inc.*		2,079		125
				528
Biotechnology - 1.9%
Acorda Therapeutics, Inc.*		6,615		156
Aegerion Pharmaceuticals, Inc.*		2,517		37
Affymax, Inc.*		1,783		23
Arena Pharmaceuticals, Inc.*		5,157		51
Ariad Pharmaceuticals, Inc.*		20,564		354

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Biotechnology - 1.9% continued
Arqule, Inc.*		2,150	$	13
Astex Pharmaceuticals*		1,890		4
BioCryst Pharmaceuticals, Inc.*		1,097		4
Cambrex Corp.*		21,932		206
Celldex Therapeutics, Inc.*		7,623		40
Charles River Laboratories International, Inc.*		6,899		226
Chelsea Therapeutics International Ltd.*		2,431		4
Cubist Pharmaceuticals, Inc.*		7,970		302
Curis, Inc.*		2,168		12
Cytokinetics, Inc.*		3,516		2
Emergent Biosolutions, Inc.*		3,516		53
Enzo Biochem, Inc.*		1,638		3
Enzon Pharmaceuticals, Inc.*		13,696		94
Exelixis, Inc.*		14,397		80
Geron Corp.*		7,865		13
GTx, Inc.*		1,780		6
Harvard Bioscience, Inc.*		2,297		9
Idera Pharmaceuticals, Inc.*		1,758		2
Immunogen, Inc.*		5,542		93
Immunomedics, Inc.*		17,772		63
Incyte Corp. Ltd.*		10,190		231
InterMune, Inc.*		6,630		79
Lexicon Pharmaceuticals, Inc.*		2,047		5
Ligand Pharmaceuticals, Inc., Class B*		3,623		61
Maxygen, Inc.*		3,129		19
Medicines (The) Co.*		8,366		192
Momenta Pharmaceuticals, Inc.*		5,713		77
Myriad Genetics, Inc.*		2,331		55
Nanosphere, Inc.*		1,900		4
Novavax, Inc.*		2,970		5
NPS Pharmaceuticals, Inc.*		8,446		73
OncoGenex Pharmaceutical, Inc.*		5,496		74
PDL BioPharma, Inc.		21,339		141
Protalix BioTherapeutics, Inc.*		14,345		82
Repligen Corp.*		4,118		18
RTI Biologics, Inc.*		4,208		16
Sangamo Biosciences, Inc.*		3,803		21
Seattle Genetics, Inc.*		8,266		210
Sequenom, Inc.*		4,903		20
Spectrum Pharmaceuticals, Inc.*		8,005		125
Vical, Inc.*		2,180		8
				3,366
Building Materials - 1.1%
AAON, Inc.		4,016		76
Apogee Enterprises, Inc.		7,262		117
Builders FirstSource, Inc.*		2,171		10
Comfort Systems USA, Inc.		7,176		72
Drew Industries, Inc.*		6,385		178
Eagle Materials, Inc.		7,527		281
Gibraltar Industries, Inc.*		1,648		17
Griffon Corp.		6,914		59
Headwaters, Inc.*		4,903		25
Interline Brands, Inc.*		6,229		156
Louisiana-Pacific Corp.*		19,595		213
LSI Industries, Inc.		1,228		9
NCI Building Systems, Inc.*		271		3
Nortek, Inc.*		100		5
Quanex Building Products Corp.		4,304		77
Simpson Manufacturing Co., Inc.		4,903		145
Texas Industries, Inc.		4,195		164
Trex Co., Inc.*		3,531		106
Universal Forest Products, Inc.		3,252		127
USG Corp.*		7,272		138
				1,978
Chemicals - 1.9%
A. Schulman, Inc.		5,305		105
Aceto Corp.		15,563		141
American Vanguard Corp.		4,028		107
Balchem Corp.		2,313		75
Chemtura Corp.*		13,054		189
Codexis, Inc.*		556		2
Ferro Corp.*		16,374		79
Georgia Gulf Corp.		4,737		122
H.B. Fuller Co.		7,193		221
Hawkins, Inc.		2,627		100
Innophos Holdings, Inc.		3,574		202
Innospec, Inc.*		5,960		177
Intrepid Potash, Inc.*		7,400		168
KMG Chemicals, Inc.		2,590		50
Kraton Performance Polymers, Inc.*		2,610		57
Landec Corp.*		1,615		14
Minerals Technologies, Inc.		2,186		139
Oil-Dri Corp. of America		285		6
Olin Corp.		8,292		173
OM Group, Inc.*		3,239		62
Omnova Solutions, Inc.*		4,626		35
PolyOne Corp.		10,455		143

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Chemicals - 1.9% continued
Quaker Chemical Corp.		3,657	$	169
Sensient Technologies Corp.		6,849		252
Solutia, Inc.		6,503		182
Spartech Corp.*		3,135		16
Stepan Co.		2,042		192
TPC Group, Inc.*		2,144		79
Zep, Inc.		3,913		54
Zoltek Cos., Inc.*		2,555		23
				3,334
Coal - 0.3%
Arch Coal, Inc.		28,800		198
Cloud Peak Energy, Inc.*		7,272		123
James River Coal Co.*		3,676		10
Patriot Coal Corp.*		13,520		16
SunCoke Energy, Inc.*		9,600		141
Westmoreland Coal Co.*		689		6
				494
Commercial Services - 6.2%
Aaron’s, Inc.		1,212		34
ABM Industries, Inc.		5,542		108
Acacia Research Corp.*		5,128		191
Accretive Health, Inc.*		2,610		29
Advisory Board (The) Co.*		5,678		282
Albany Molecular Research, Inc.*		2,987		8
American Public Education, Inc.*		3,252		104
American Reprographics Co.*		3,139		16
Arbitron, Inc.		4,627		162
Ascent Capital Group, Inc., Class A*		2,490		129
AVEO Pharmaceuticals, Inc.*		3,543		43
Barrett Business Services, Inc.		832		18
Bridgepoint Education, Inc.*		2,983		65
Brink’s (The) Co.		5,128		119
Capella Education Co.*		1,351		47
Cardtronics, Inc.*		5,151		156
Career Education Corp.*		6,993		47
CBIZ, Inc.*		9,230		55
CDI Corp.		1,559		26
Cenveo, Inc.*		3,537		7
Chemed Corp.		4,052		245
Collectors Universe		3,729		55
Consolidated Graphics, Inc.*		1,855		54
Convergys Corp.		15,353		227
CoreLogic, Inc.*		12,214		224
Corinthian Colleges, Inc.*		6,902		20
Corporate Executive Board (The) Co.		3,899		159
Corvel Corp.*		2,594		127
CoStar Group, Inc.*		4,018		326
CPI Corp.		4,128		1
CRA International, Inc.*		3,136		46
Cross Country Healthcare, Inc.*		2,693		12
Deluxe Corp.		5,959		149
Dollar Thrifty Automotive Group, Inc.*		2,868		232
Electro Rent Corp.		6,278		102
Euronet Worldwide, Inc.*		7,739		132
ExlService Holdings, Inc.*		4,347		107
Forrester Research, Inc.		4,470		151
Franklin Covey Co.*		1,076		11
FTI Consulting, Inc.*		5,035		145
Geo Group (The), Inc.*		9,918		225
Global Cash Access Holdings, Inc.*		5,013		36
Great Lakes Dredge & Dock Corp.		3,918		28
H&E Equipment Services, Inc.*		2,285		34
Hackett Group (The), Inc.*		2,585		14
Healthcare Services Group, Inc.		9,100		176
Heartland Payment Systems, Inc.		5,097		153
Hill International, Inc.*		1,354		4
HMS Holdings Corp.*		10,142		338
Huron Consulting Group, Inc.*		2,952		93
ICF International, Inc.*		1,386		33
Information Services Group, Inc.*		2,979		4
Insperity, Inc.		4,236		115
Integramed America, Inc.*		1,554		22
Intersections, Inc.		1,238		20
ITT Educational Services, Inc.*		3,449		210
K12, Inc.*		3,345		78
Kelly Services, Inc., Class A		5,273		68
Kenexa Corp.*		2,890		84
Kforce, Inc.*		5,830		78
Korn/Ferry International*		5,594		80
Landauer, Inc.		1,643		94
Learning Tree International, Inc.*		663		3
Live Nation Entertainment, Inc.*		15,684		144
Mac-Gray Corp.		938		13
Matthews International Corp., Class A		4,590		149
MAXIMUS, Inc.		7,349		380
McGrath RentCorp		4,359		116
Medifast, Inc.*		554		11

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Commercial Services - 6.2% continued
MoneyGram International, Inc.*		234	$	3
Monro Muffler Brake, Inc.		4,196		139
Monster Worldwide, Inc.*		12,308		105
Multi-Color Corp.		3,073		68
National Research Corp.		2,630		138
Navigant Consulting, Inc.*		7,340		93
Net 1 UEPS Technologies, Inc.*		6,662		56
Odyssey Marine Exploration, Inc.*		3,782		14
On Assignment, Inc.*		1,217		19
PAREXEL International Corp.*		8,446		238
PDI, Inc.*		1,116		9
Pendrell Corp.*		40,851		46
PHH Corp.*		7,199		126
Providence Service (The) Corp.*		5,881		81
QC Holdings, Inc.		1,359		6
Rent-A-Center, Inc.		7,312		247
Resources Connection, Inc.		6,635		82
Rollins, Inc.		13,139		294
Sotheby’s		7,783		260
Standard Parking Corp.*		4,892		105
StarTek, Inc.*		1,080		3
Steiner Leisure Ltd.*		1,498		70
Stewart Enterprises, Inc., Class A		11,450		82
Strayer Education, Inc.		1,585		173
Team, Inc.*		3,511		109
TeleTech Holdings, Inc.*		7,326		117
TNS, Inc.*		2,699		48
TrueBlue, Inc.*		5,035		78
United Rentals, Inc.*		1,700		58
Universal Technical Institute, Inc.		1,645		22
Valassis Communications, Inc.*		6,223		135
Viad Corp.		4,623		92
VistaPrint N.V.*		4,781		154
Volt Information Sciences, Inc.*		2,331		16
Wright Express Corp.*		6,662		411
				10,671
Computers - 2.1%
3D Systems Corp.*		4,548		155
Agilysys, Inc.*		9,102		79
Astro-Med, Inc.		863		7
CACI International, Inc., Class A*		3,889		214
CIBER, Inc.*		6,513		28
Cogo Group, Inc.*		10,955		19
Computer Services, Inc.		2,424		78
Computer Task Group, Inc.*		3,597		54
Cray, Inc.*		1,359		16
Datalink Corp.*		1,503		14
Digimarc Corp.		2,590		66
Dynamics Research Corp.*		832		5
iGATE Corp.*		2,859		49
Imation Corp.*		2,848		17
Immersion Corp.*		2,174		12
Insight Enterprises, Inc.*		7,605		128
j2 Global, Inc.		5,702		151
Jack Henry & Associates, Inc.		10,099		349
Lexmark International, Inc., Class A		9,400		250
LivePerson, Inc.*		7,428		142
Manhattan Associates, Inc.*		3,945		180
Mattersight Corp.*		1,758		14
Mentor Graphics Corp.*		11,612		174
Mercury Computer Systems, Inc.*		2,285		30
MTS Systems Corp.		4,320		167
Netscout Systems, Inc.*		6,786		147
PAR Technology Corp.*		4,019		20
Quantum Corp.*		15,730		32
Radisys Corp.*		949		6
Rimage Corp.		412		3
Silicon Graphics International Corp.*		1,751		11
Spansion, Inc., Class A*		4,195		46
STEC, Inc.*		4,348		34
Stratasys, Inc.*		3,587		178
Super Micro Computer, Inc.*		5,039		80
Sykes Enterprises, Inc.*		5,164		82
Synaptics, Inc.*		5,008		143
Syntel, Inc.		4,333		263
Transact Technologies, Inc.*		951		7
Unisys Corp.*		4,615		90
Virtusa Corp.*		940		13
				3,553
Cosmetics/Personal Care - 0.1%
Elizabeth Arden, Inc.*		3,943		153
Inter Parfums, Inc.		5,096		88
Physicians Formula Holdings, Inc.*		239		1
Revlon, Inc., Class A*		554		8
				250

EQUITY FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Distribution/Wholesale - 1.1%
Beacon Roofing Supply, Inc.*		7,187	$	181
BlueLinx Holdings, Inc.*		2,586		6
Brightpoint, Inc.*		13,520		73
Core-Mark Holding Co., Inc.		1,023		49
Houston Wire & Cable Co.		2,044		22
MWI Veterinary Supply, Inc.*		2,007		206
Owens & Minor, Inc.		8,397		257
Pool Corp.		6,791		275
Rentrak Corp.*		2,707		56
ScanSource, Inc.*		4,903		150
School Specialty, Inc.*		3,802		13
Titan Machinery, Inc.*		832		25
United Stationers, Inc.		7,364		199
Watsco, Inc.		3,819		282
WESCO International, Inc.*		1,990		115
				1,909
Diversified Financial Services - 2.1%
Aircastle Ltd.		4,604		55
Asset Acceptance Capital Corp.*		1,082		7
BGC Partners, Inc., Class A		2,030		12
Calamos Asset Management, Inc., Class A		1,913		22
California First National Bancorp		1,506		24
Cohen & Steers, Inc.		3,159		109
CompuCredit Holdings Corp.*		4,502		16
Credit Acceptance Corp.*		3,242		274
DFC Global Corp.*		5,062		93
Diamond Hill Investment Group, Inc.		277		22
Doral Financial Corp.*		2,441		4
Duff & Phelps Corp., Class A		4,347		63
Edelman Financial Group, Inc.		1,767		15
Encore Capital Group, Inc.*		4,471		132
Epoch Holding Corp.		2,781		63
Evercore Partners, Inc., Class A		2,435		57
FBR & Co.*		4,622		13
Financial Engines, Inc.*		2,797		60
First Marblehead (The) Corp.*		1,639		2
GAMCO Investors, Inc., Class A		2,567		114
GFI Group, Inc.		10,594		38
Gleacher & Co., Inc.*		2,171		2
Harris & Harris Group, Inc.*		1,480		6
Hercules Technology Growth Capital, Inc.		2,849		32
Higher One Holdings, Inc.*		5,408		66
Institutional Financial Markets, Inc.		894		1
Interactive Brokers Group, Inc., Class A		7,896		116
INTL. FCStone, Inc.*		4,185		81
Investment Technology Group, Inc.*		9,852		91
Janus Capital Group, Inc.		21,912		171
JMP Group, Inc.		944		6
KBW, Inc.		4,195		69
Knight Capital Group, Inc., Class A*		8,697		104
MarketAxess Holdings, Inc.		4,876		130
MicroFinancial, Inc.		2,182		18
National Financial Partners Corp.*		6,902		92
Nelnet, Inc., Class A		6,123		141
NewStar Financial, Inc.*		1,744		23
Ocwen Financial Corp.*		13,184		248
Penson Worldwide, Inc.*		2,187		—
Piper Jaffray Cos.*		2,691		63
Portfolio Recovery Associates, Inc.*		1,606		147
Pzena Investment Management, Inc., Class A		4,321		19
SeaCube Container Leasing Ltd.		3,170		54
Siebert Financial Corp.*		858		1
Stifel Financial Corp.*		5,916		183
SWS Group, Inc.*		2,590		14
U.S. Global Investors, Inc., Class A		1,202		5
Virtus Investment Partners, Inc.*		2,556		207
Walter Investment Management Corp.		6,208		146
Westwood Holdings Group, Inc.		522		19
World Acceptance Corp.*		3,239		213
				3,663
Electric - 2.1%
ALLETE, Inc.		5,101		213
Avista Corp.		9,471		253
Black Hills Corp.		5,845		188
CH Energy Group, Inc.		2,331		153
Cleco Corp.		8,527		357
El Paso Electric Co.		6,761		224
Empire District Electric (The) Co.		5,545		117
Genie Energy Ltd., Class B		1,025		8
GenOn Energy, Inc.*		117,679		201
IDACORP, Inc.		7,890		332
MGE Energy, Inc.		2,827		134
NorthWestern Corp.		4,903		180
Ormat Technologies, Inc.		1,491		32
Otter Tail Corp.		4,195		96
Pike Electric Corp.*		2,174		17
PNM Resources, Inc.		10,290		201

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Electric - 2.1% continued
Portland General Electric Co.		11,515	$	307
UIL Holdings Corp.		7,366		264
Unitil Corp.		3,648		97
UNS Energy Corp.		6,042		232
				3,606
Electrical Components & Equipment - 0.8%
Advanced Energy Industries, Inc.*		9,510		128
American Superconductor Corp.*		4,070		19
Belden, Inc.		5,683		190
Encore Wire Corp.		1,471		39
EnerSys*		5,949		209
Generac Holdings, Inc.		2,797		67
General Cable Corp.*		7,086		184
GrafTech International Ltd.*		4,373		42
Graham Corp.		2,421		45
Insteel Industries, Inc.		1,900		21
Littelfuse, Inc.		2,308		131
Orion Energy Systems, Inc.*		1,350		3
Powell Industries, Inc.*		2,881		108
Power-One, Inc.*		5,683		26
PowerSecure International, Inc.*		1,480		7
SL Industries, Inc.*		839		11
SunPower Corp.*		7,256		35
Ultralife Corp.*		2,321		9
Universal Display Corp.*		3,794		136
Vicor Corp.		2,566		18
				1,428
Electronics - 2.5%
American Science & Engineering, Inc.		1,960		111
Analogic Corp.		2,439		151
Badger Meter, Inc.		3,510		132
Bel Fuse, Inc., Class B		1,614		28
Benchmark Electronics, Inc.*		6,499		91
Brady Corp., Class A		5,972		164
Checkpoint Systems, Inc.*		6,369		55
Coherent, Inc.*		3,449		149
CTS Corp.		7,065		67
CyberOptics Corp.*		4,153		35
Cymer, Inc.*		3,516		207
Daktronics, Inc.		3,656		25
Electro Scientific Industries, Inc.		5,947		70
ESCO Technologies, Inc.		3,532		129
FARO Technologies, Inc.*		2,144		90
FEI Co.*		5,282		253
Identive Group, Inc.*		3,378		3
II-VI, Inc.*		6,271		105
Image Sensing Systems, Inc.*		800		4
InvenSense, Inc.*		9,790		111
Itron, Inc.*		4,561		188
LGL Group (The), Inc.*		4,137		27
Measurement Specialties, Inc.*		3,113		101
MEMSIC, Inc.*		2,294		6
Mesa Laboratories, Inc.		1,769		82
Methode Electronics, Inc.		7,609		65
MOCON, Inc.		6,720		104
Multi-Fineline Electronix, Inc.*		3,570		88
Newport Corp.*		6,917		83
NVE Corp.*		1,530		82
OSI Systems, Inc.*		2,704		171
Park Electrochemical Corp.		3,087		80
Plexus Corp.*		4,745		134
Pulse Electronics Corp.		2,191		4
Rofin-Sinar Technologies, Inc.*		5,165		98
Rogers Corp.*		3,400		135
Sanmina-SCI Corp.*		5,967		49
Sparton Corp.*		952		9
SRS Labs, Inc.*		951		9
Stoneridge, Inc.*		1,103		8
Taser International, Inc.*		4,063		21
Transcat, Inc.*		283		2
TTM Technologies, Inc.*		9,466		89
Viasystems Group, Inc.*		3,543		60
Vishay Intertechnology, Inc.*		17,806		168
Vishay Precision Group, Inc.*		265		4
Watts Water Technologies, Inc., Class A		4,455		149
Williams Controls, Inc.		1,011		12
Woodward, Inc.		7,865		310
Zygo Corp.*		1,202		21
				4,339
Energy - Alternate Sources - 0.1%
Clean Energy Fuels Corp.*		5,072		79
Green Plains Renewable Energy, Inc.*		663		4
Plug Power, Inc.*		14,452		16
REX American Resources Corp.*		5,573		109
				208

EQUITY FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Engineering & Construction - 0.9%
Aegion Corp.*		3,815	$	68
Argan, Inc.		6,182		86
Dycom Industries, Inc.*		7,139		133
EMCOR Group, Inc.		9,335		260
ENGlobal Corp.*		2,849		4
Exponent, Inc.*		3,126		165
Granite Construction, Inc.		7,031		184
Integrated Electrical Services, Inc.*		1,638		5
Layne Christensen Co.*		3,503		73
MasTec, Inc.*		7,875		118
Michael Baker Corp.*		4,073		106
MYR Group, Inc.*		2,405		41
National Technical Systems, Inc.*		7,075		44
Orion Marine Group, Inc.*		1,217		9
Shaw Group (The), Inc.*		8,800		240
Sterling Construction Co., Inc.*		554		6
VSE Corp.		1,611		38
				1,580
Entertainment - 1.1%
Bluegreen Corp.*		1,625		8
Carmike Cinemas, Inc.*		1,105		16
Churchill Downs, Inc.		2,305		136
Cinemark Holdings, Inc.		11,417		261
Dover Downs Gaming & Entertainment, Inc.		1,777		5
DreamWorks Animation SKG, Inc., Class A*		9,324		178
International Speedway Corp., Class A		4,755		124
Isle of Capri Casinos, Inc.*		9,582		59
Lakes Entertainment, Inc.*		3,801		11
Madison Square Garden (The) Co., Class A*		2,983		112
Multimedia Games Holding Co., Inc.*		1,638		23
National CineMedia, Inc.		4,895		74
Pinnacle Entertainment, Inc.*		6,270		60
Reading International, Inc., Class A*		1,223		7
Rick’s Cabaret International, Inc.*		6,433		56
Scientific Games Corp., Class A*		8,648		74
Shuffle Master, Inc.*		4,177		58
Six Flags Entertainment Corp.		6,154		333
Speedway Motorsports, Inc.		2,315		39
Vail Resorts, Inc.		4,173		209
				1,843
Environmental Control - 0.7%
Calgon Carbon Corp.*		8,913		127
Clean Harbors, Inc.*		6,290		355
Darling International, Inc.*		16,515		272
EnergySolutions, Inc.*		3,411		6
Fuel Tech, Inc.*		1,364		7
Heritage-Crystal Clean, Inc.*		665		11
Metalico, Inc.*		1,362		3
Met-Pro Corp.		832		8
Mine Safety Appliances Co.		3,781		152
Perma-Fix Environmental Services*		3,943		5
Sharps Compliance Corp.*		2,237		7
Tetra Tech, Inc.*		7,987		208
TRC Cos., Inc.*		2,048		12
US Ecology, Inc.		4,513		80
				1,253
Food - 2.1%
Amcon Distributing Co.		515		29
Arden Group, Inc., Class A		1,151		100
B&G Foods, Inc.		9,174		244
Bridgford Foods Corp.*		542		4
Calavo Growers, Inc.		554		14
Cal-Maine Foods, Inc.		2,968		116
Chiquita Brands International, Inc.*		6,510		33
Dean Foods Co.*		2,051		35
Diamond Foods, Inc.		3,085		55
Feihe International, Inc.*		277		2
Fresh Del Monte Produce, Inc.		5,035		118
Fresh Market (The), Inc.*		3,729		200
Golden Enterprises, Inc.		624		2
Hain Celestial Group (The), Inc.*		5,572		307
Harris Teeter Supermarkets, Inc.		6,910		283
Ingles Markets, Inc., Class A		3,934		63
J&J Snack Foods Corp.		3,118		184
Lancaster Colony Corp.		2,572		183
Lifeway Foods, Inc.		277		3
Nash Finch Co.		3,252		70
Sanderson Farms, Inc.		2,838		130
Seaboard Corp.*		63		134
Seneca Foods Corp., Class A*		277		8
Smart Balance, Inc.*		1,610		15
Snyders-Lance, Inc.		6,360		161
Spartan Stores, Inc.		2,427		44
SUPERVALU, Inc.		28,345		147
Tootsie Roll Industries, Inc.		5,464		130

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Food - 2.1% continued
TreeHouse Foods, Inc.*		4,603	$	287
United Natural Foods, Inc.*		6,867		377
Village Super Market, Inc., Class A		1,364		44
Weis Markets, Inc.		3,663		163
				3,685
Forest Products & Paper - 0.7%
Boise, Inc.		12,538		82
Buckeye Technologies, Inc.		6,274		179
Clearwater Paper Corp.*		3,274		112
Deltic Timber Corp.		932		57
KapStone Paper and Packaging Corp.*		1,063		17
Neenah Paper, Inc.		6,550		175
Orchids Paper Products Co.		554		10
P.H. Glatfelter Co.		9,386		154
Potlatch Corp.		5,574		178
Resolute Forest Products*		4,941		57
Schweitzer-Mauduit International, Inc.		3,129		213
Wausau Paper Corp.		3,932		38
				1,272
Gas - 1.1%
Chesapeake Utilities Corp.		3,056		134
Delta Natural Gas Co., Inc.		284		6
Laclede Group (The), Inc.		2,787		111
New Jersey Resources Corp.		5,711		249
Northwest Natural Gas Co.		4,423		210
Piedmont Natural Gas Co., Inc.		8,969		289
RGC Resources, Inc.		643		11
South Jersey Industries, Inc.		4,077		208
Southwest Gas Corp.		6,870		300
WGL Holdings, Inc.		7,414		295
				1,813
Hand/Machine Tools - 0.1%
Franklin Electric Co., Inc.		3,393		173
Healthcare - Products - 4.0%
Abaxis, Inc.*		3,396		126
ABIOMED, Inc.*		7,327		167
Accuray, Inc.*		738		5
Affymetrix, Inc.*		6,925		32
Alere, Inc.*		10,800		210
Align Technology, Inc.*		9,712		325
Allied Healthcare Products*		428		1
Alphatec Holdings, Inc.*		1,744		3
AngioDynamics, Inc.*		3,263		39
ArthroCare Corp.*		3,170		93
AtriCure, Inc.*		2,466		24
Atrion Corp.		608		125
BioMimetic Therapeutics, Inc.*		5,624		15
Bovie Medical Corp.*		1,560		4
Bruker Corp.*		8,513		113
Cantel Medical Corp.		5,704		155
CardioNet, Inc.*		1,610		3
Cardiovascular Systems, Inc.*		5,962		58
Cepheid, Inc.*		7,869		352
Chindex International, Inc.*		5,273		52
Conceptus, Inc.*		5,281		105
CONMED Corp.		4,626		128
Cooper (The) Cos., Inc.		643		51
CryoLife, Inc.*		1,223		6
Cutera, Inc.*		5,310		38
Cyberonics, Inc.*		3,825		172
Cynosure, Inc., Class A*		6,730		142
Daxor Corp.		522		5
DexCom, Inc.*		2,438		32
Digirad Corp.*		2,144		5
Endologix, Inc.*		4,740		73
Exactech, Inc.*		2,172		36
Female Health (The) Co.		1,073		6
Greatbatch, Inc.*		5,090		116
Haemonetics Corp.*		4,292		318
Hanger, Inc.*		5,295		136
Hansen Medical, Inc.*		2,020		5
ICU Medical, Inc.*		3,081		164
Insulet Corp.*		2,176		47
Integra LifeSciences Holdings Corp.*		3,683		137
Invacare Corp.		5,551		86
Iridex Corp.*		200		1
IRIS International, Inc.*		5,276		60
LCA-Vision, Inc.*		7,587		33
Luminex Corp.*		6,097		149
MAKO Surgical Corp.*		676		17
Masimo Corp.*		8,098		181
Medical Action Industries, Inc.*		6,784		24
MELA Sciences, Inc.*		1,913		6
Merge Healthcare, Inc.*		2,163		6
Meridian Bioscience, Inc.		5,029		103
Merit Medical Systems, Inc.*		8,086		112
Natus Medical, Inc.*		4,382		51

EQUITY FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Healthcare - Products - 4.0% continued
NuVasive, Inc.*		5,598	$	142
NxStage Medical, Inc.*		5,160		86
OraSure Technologies, Inc.*		13,034		147
Orthofix International N.V.*		4,635		191
Palomar Medical Technologies, Inc.*		3,051		26
PSS World Medical, Inc.*		7,726		162
Quidel Corp.*		6,517		102
Rochester Medical Corp.*		1,344		14
Rockwell Medical Technologies, Inc.*		1,217		11
Sirona Dental Systems, Inc.*		3,030		136
Span-America Medical Systems, Inc.		392		7
Spectranetics Corp.*		1,573		18
Stereotaxis, Inc.*		2,481		1
STERIS Corp.		7,709		242
SurModics, Inc.*		2,742		47
Symmetry Medical, Inc.*		3,543		30
Thoratec Corp.*		7,645		257
TranS1, Inc.*		2,286		6
United-Guardian, Inc.		560		10
Utah Medical Products, Inc.		2,564		86
Vascular Solutions, Inc.*		5,603		70
Volcano Corp.*		6,773		194
West Pharmaceutical Services, Inc.		5,438		275
Wright Medical Group, Inc.*		4,382		94
Young Innovations, Inc.		2,421		84
				6,891
Healthcare - Services - 2.1%
Addus HomeCare Corp.*		1,212		6
Air Methods Corp.*		2,287		225
Alliance HealthCare Services, Inc.*		5,409		5
Almost Family, Inc.*		5,230		117
Amedisys, Inc.*		5,080		63
Amsurg Corp.*		5,147		154
Assisted Living Concepts, Inc., Class A		7,657		109
Bio-Reference Labs, Inc.*		6,224		164
Capital Senior Living Corp.*		1,609		17
Centene Corp.*		6,773		204
Emeritus Corp.*		6,206		104
Ensign Group (The), Inc.		2,319		66
Gentiva Health Services, Inc.*		4,086		28
Health Management Associates, Inc., Class A*		34,400		270
HealthSouth Corp.*		9,915		231
IPC The Hospitalist Co., Inc.*		3,242		147
Kindred Healthcare, Inc.*		7,816		77
LHC Group, Inc.*		3,393		57
LifePoint Hospitals, Inc.*		6,500		266
Magellan Health Services, Inc.*		4,885		221
Medcath Corp.		7,953		59
Metropolitan Health Networks, Inc.*		4,032		39
Molina Healthcare, Inc.*		4,858		114
National Healthcare Corp.		1,460		66
RadNet, Inc.*		32,899		87
Skilled Healthcare Group, Inc., Class A*		15,064		95
Sun Healthcare Group, Inc.*		1,484		12
Sunrise Senior Living, Inc.*		3,508		26
Triple-S Management Corp., Class B*		3,808		70
U.S. Physical Therapy, Inc.		4,076		104
Universal American Corp.*		7,587		80
WellCare Health Plans, Inc.*		5,918		314
				3,597
Holding Companies - Diversified - 0.1%
Compass Diversified Holdings		4,820		67
Harbinger Group, Inc.*		12,836		100
Resource America, Inc., Class A		2,029		13
				180
Home Builders - 0.6%
AMREP Corp.*		6,493		39
Beazer Homes USA, Inc.*		1,780		6
Brookfield Residential Properties, Inc.*		618		7
Cavco Industries, Inc.*		2,961		152
Hovnanian Enterprises, Inc., Class A*		1,750		5
KB Home		8,407		82
M/I Homes, Inc.*		810		14
MDC Holdings, Inc.		7,179		235
Meritage Homes Corp.*		5,314		180
Nobility Homes, Inc.*		858		5
Ryland Group (The), Inc.		4,903		125
Skyline Corp.		2,443		12
Thor Industries, Inc.		4,991		137
Winnebago Industries, Inc.*		4,594		47
				1,046
Home Furnishings - 0.4%
American Woodmark Corp.*		3,546		61
DTS, Inc.*		1,884		49
Emerson Radio Corp.*		3,292		7
Ethan Allen Interiors, Inc.		5,408		108

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Home Furnishings - 0.4% continued
Flexsteel Industries, Inc.		1,402	$	28
Furniture Brands International, Inc.*		3,243		4
Hooker Furniture Corp.		5,713		67
Kimball International, Inc., Class B		3,671		28
La-Z-Boy, Inc.*		8,279		102
Sealy Corp.*		4,622		8
Select Comfort Corp.*		5,035		105
Stanley Furniture Co., Inc.*		1,505		6
TiVo, Inc.*		9,763		81
Universal Electronics, Inc.*		1,081		14
VOXX International Corp.*		1,063		10
				678
Household Products/Wares - 0.4%
ACCO Brands Corp.*		10,998		114
American Greetings Corp., Class A		4,767		70
Blyth, Inc.		2,536		88
Central Garden and Pet Co., Class A*		4,349		47
CSS Industries, Inc.		1,391		28
Helen of Troy Ltd.*		3,146		107
Prestige Brands Holdings, Inc.*		2,849		45
Standard Register (The) Co.		20,498		12
WD-40 Co.		3,811		190
				701
Insurance - 3.1%
Alterra Capital Holdings Ltd.		10,938		255
American Equity Investment Life Holding Co.		9,241		102
American Safety Insurance Holdings Ltd.*		6,306		118
AMERISAFE, Inc.*		2,131		55
Amtrust Financial Services, Inc.		4,483		133
Argo Group International Holdings Ltd.		2,161		63
Baldwin & Lyons, Inc., Class B		3,646		85
Citizens, Inc.*		11,848		116
CNO Financial Group, Inc.		27,270		213
Crawford & Co., Class B		16,644		68
Donegal Group, Inc., Class A		1,646		22
Eastern Insurance Holdings, Inc.		1,202		20
eHealth, Inc.*		5,009		81
EMC Insurance Group, Inc.		5,619		114
Employers Holdings, Inc.		6,433		116
Endurance Specialty Holdings Ltd.		5,310		204
FBL Financial Group, Inc., Class A		1,889		53
First Acceptance Corp.*		3,114		4
First American Financial Corp.		11,133		189
Flagstone Reinsurance Holdings S.A.		9,207		74
GAINSCO, Inc.		714		6
Global Indemnity PLC*		559		11
Greenlight Capital Re Ltd., Class A*		4,200		107
Hallmark Financial Services, Inc.*		940		7
Hanover Insurance Group (The), Inc.		4,755		186
Hilltop Holdings, Inc.*		2,853		29
Horace Mann Educators Corp.		3,912		68
Independence Holding Co.		1,046		10
Infinity Property & Casualty Corp.		466		27
Investors Title Co.		2,022		115
Kansas City Life Insurance Co.		1,895		67
Kemper Corp.		5,408		166
Life Partners Holdings, Inc.		15,996		34
Maiden Holdings Ltd.		264		2
Meadowbrook Insurance Group, Inc.		3,683		32
MGIC Investment Corp.*		21,580		62
Montpelier Re Holdings Ltd.		9,501		202
National Interstate Corp.		3,245		86
National Western Life Insurance Co., Class A		563		80
OneBeacon Insurance Group Ltd., Class A		4,195		55
Phoenix (The) Cos., Inc.*		7,069		13
Platinum Underwriters Holdings Ltd.		5,003		191
Presidential Life Corp.		2,322		23
Primerica, Inc.		3,574		96
Primus Guaranty Ltd.*		2,024		15
ProAssurance Corp.		3,854		343
Protective Life Corp.		10,070		296
Radian Group, Inc.		14,359		47
RLI Corp.		3,128		213
Safety Insurance Group, Inc.		2,423		99
SeaBright Holdings, Inc.		1,202		11
Selective Insurance Group, Inc.		5,829		102
StanCorp Financial Group, Inc.		5,314		198
Stewart Information Services Corp.		5,172		79
Symetra Financial Corp.		4,941		62
Tower Group, Inc.		4,486		94
Unico American Corp.		214		2
United Fire Group, Inc.		5,020		107
Universal Insurance Holdings, Inc.		1,637		6
				5,434

EQUITY FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Internet - 2.2%
1-800-FLOWERS.COM, Inc., Class A*		3,508	$	12
AboveNet, Inc.*		3,170		266
Ancestry.com, Inc.*		4,009		110
AOL, Inc.*		7,645		215
AsiaInfo-Linkage, Inc.*		8,767		103
Blucora, Inc.*		3,110		38
Blue Nile, Inc.*		3,422		102
BroadSoft, Inc.*		1,678		49
Cogent Communications Group, Inc.*		7,712		148
comScore, Inc.*		2,989		49
Crexendo, Inc.		1,588		6
DealerTrack Holdings, Inc.*		7,186		216
Digital River, Inc.*		4,348		72
EarthLink, Inc.		18,165		135
ePlus, Inc.*		4,070		132
Global Sources Ltd.*		4,222		28
HealthStream, Inc.*		2,890		75
ICG Group, Inc.*		1,476		14
Internap Network Services Corp.*		3,914		25
Ipass, Inc.*		1,989		5
Keynote Systems, Inc.		6,770		101
Lionbridge Technologies, Inc.*		2,708		9
Liquidity Services, Inc.*		4,321		221
ModusLink Global Solutions, Inc.*		7,603		23
Move, Inc.*		1,186		11
Move, Inc. - (Fractional Shares)*		25,000		—
NIC, Inc.		5,274		67
Nutrisystem, Inc.		2,868		33
Online Resources Corp.*		1,889		5
OpenTable, Inc.*		1,746		79
Orbitz Worldwide, Inc.*		3,162		12
Overstock.com, Inc.*		832		6
PC-Tel, Inc.		1,358		9
Perficient, Inc.*		3,136		35
RealNetworks, Inc.		2,944		25
Saba Software, Inc.*		1,350		12
Safeguard Scientifics, Inc.*		3,008		47
Sapient Corp.		10,292		104
Shutterfly, Inc.*		3,862		118
Sourcefire, Inc.*		4,990		256
Stamps.com, Inc.*		5,028		124
support.com, Inc.*		2,849		9
TeleCommunication Systems, Inc., Class A*		6,107		7
Travelzoo, Inc.*		3,539		80
United Online, Inc.		18,732		79
Unwired Planet, Inc.*		3,125		7
ValueClick, Inc.*		9,921		163
VASCO Data Security International, Inc.*		3,130		26
VirnetX Holding Corp.*		2,704		95
Vocus, Inc.*		2,590		48
Web.com Group, Inc.*		1,902		35
Websense, Inc.*		6,391		120
Zix Corp.*		3,388		9
				3,775
Investment Companies - 0.6%
American Realty Capital Trust, Inc.		22,000		240
Apollo Investment Corp.		22,090		170
Arlington Asset Investment Corp., Class A		554		12
BlackRock Kelso Capital Corp.		10,855		106
Capital Southwest Corp.		797		82
Gladstone Investment Corp.		1,218		9
Kohlberg Capital Corp.		1,628		12
MCG Capital Corp.		4,736		22
Medallion Financial Corp.		936		10
NGP Capital Resources Co.		960		7
PennantPark Investment Corp.		1,202		13
Prospect Capital Corp.		9,759		111
Solar Capital Ltd.		2,704		60
Steel Excel, Inc.*		2,778		75
TICC Capital Corp.		1,480		14
Triangle Capital Corp.		3,263		74
				1,017
Iron/Steel - 0.3%
AK Steel Holding Corp.		11,655		68
Commercial Metals Co.		15,664		198
Great Northern Iron Ore Properties		277		21
Schnitzer Steel Industries, Inc., Class A		2,424		68
Shiloh Industries, Inc.		1,618		19
Universal Stainless & Alloy*		2,719		112
				486
Leisure Time - 0.6%
Ambassadors Group, Inc.		832		5
Arctic Cat, Inc.*		3,543		130
Bowl America, Inc., Class A		560		7
Brunswick Corp.		12,120		269
Callaway Golf Co.		11,136		66
Interval Leisure Group, Inc.		3,229		61

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Leisure Time - 0.6% continued
Johnson Outdoors, Inc., Class A*		3,672	$	76
Life Time Fitness, Inc.*		5,472		254
Marine Products Corp.		2,710		16
Town Sports International Holdings, Inc.*		3,268		43
WMS Industries, Inc.*		7,459		149
				1,076
Lodging - 0.3%
Ameristar Casinos, Inc.		7,059		125
Boyd Gaming Corp.*		1,235		9
Gaylord Entertainment Co.*		4,348		168
Marcus Corp.		2,441		34
Monarch Casino & Resort, Inc.*		942		9
Morgans Hotel Group Co.*		8,091		38
Orient-Express Hotels Ltd., Class A*		6,620		55
Red Lion Hotels Corp.*		1,220		10
				448
Machinery - Construction & Mining - 0.1%
Astec Industries, Inc.*		3,263		100
Machinery - Diversified - 1.7%
Alamo Group, Inc.		1,114		35
Altra Holdings, Inc.		6,661		105
Applied Industrial Technologies, Inc.		6,529		241
Briggs & Stratton Corp.		6,391		112
Cascade Corp.		1,919		90
Chart Industries, Inc.*		3,409		234
Cognex Corp.		4,195		133
Columbus McKinnon Corp.*		1,341		20
DXP Enterprises, Inc.*		3,723		155
Flow International Corp.*		6,211		20
Global Power Equipment Group, Inc.		4,136		90
Gorman-Rupp (The) Co.		4,011		120
Hollysys Automation Technologies Ltd.*		4,102		35
Hurco Cos., Inc.*		1,080		22
Intermec, Inc.*		7,038		44
iRobot Corp.*		3,438		76
Kadant, Inc.*		800		19
Key Technology, Inc.*		4,860		49
Lindsay Corp.		1,480		96
Manitowoc (The) Co., Inc.		17,554		205
Middleby Corp.*		2,700		269
NACCO Industries, Inc., Class A		1,207		140
Robbins & Myers, Inc.		4,251		178
Sauer-Danfoss, Inc.		2,097		73
Tecumseh Products Co., Class A*		1,236		6
Tennant Co.		2,890		115
Twin Disc, Inc.		2,717		50
Zebra Technologies Corp., Class A*		6,800		234
				2,966
Media - 0.6%
Courier Corp.		9,638		128
Crown Media Holdings, Inc., Class A*		4,197		7
Daily Journal Corp.*		700		60
Digital Generation, Inc.*		3,390		42
Dolan (The) Co.*		832		6
Entercom Communications Corp., Class A*		6,247		38
Fisher Communications, Inc.*		524		16
Journal Communications, Inc., Class A*		4,328		22
Knology, Inc.*		2,566		50
LIN TV Corp., Class A*		3,658		11
LodgeNet Interactive Corp.*		1,758		2
Martha Stewart Living Omnimedia, Class A		2,829		10
Meredith Corp.		3,521		112
New York Times (The) Co., Class A*		13,427		105
Nexstar Broadcasting Group, Inc., Class A*		1,900		13
Outdoor Channel Holdings, Inc.		8,322		61
Saga Communications, Inc., Class A*		522		19
Scholastic Corp.		3,781		107
Sinclair Broadcast Group, Inc., Class A		5,851		53
Value Line, Inc.		2,839		34
World Wrestling Entertainment, Inc.,
Class A		7,341		57
				953
Metal Fabrication/Hardware - 1.0%
A.M. Castle & Co.*		5,410		57
Ampco-Pittsburgh Corp.		1,855		34
CIRCOR International, Inc.		2,729		93
Dynamic Materials Corp.		3,280		57
Eastern (The) Co.		4,034		65
Furmanite Corp.*		9,081		44
Haynes International, Inc.		2,529		129
Kaydon Corp.		3,801		81
L.B. Foster Co., Class A		4,499		129
Lawson Products, Inc.		2,523		23
Mueller Industries, Inc.		5,551		236
Mueller Water Products, Inc., Class A		18,167		63

EQUITY FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Metal Fabrication/Hardware - 1.0% continued
Northwest Pipe Co.*		4,321	$	105
Olympic Steel, Inc.		2,590		42
Omega Flex, Inc.*		555		7
RBC Bearings, Inc.*		4,211		199
RTI International Metals, Inc.*		4,941		112
Sun Hydraulics Corp.		3,449		84
Worthington Industries, Inc.		8,824		181
				1,741
Mining - 0.7%
AMCOL International Corp.		2,421		68
Century Aluminum Co.*		4,382		32
Coeur d’Alene Mines Corp.*		12,121		213
General Moly, Inc.*		3,101		10
Globe Specialty Metals, Inc.		9,697		130
Gold Resource Corp.		4,755		123
Hecla Mining Co.		30,117		143
Horsehead Holding Corp.*		8,828		88
Kaiser Aluminum Corp.		1,753		91
Materion Corp.		1,769		41
McEwen Mining, Inc.*		2,189		7
Stillwater Mining Co.*		14,019		120
United States Lime & Minerals, Inc.*		1,480		69
Uranerz Energy Corp.*		9,067		13
Uranium Energy Corp.*		2,051		5
USEC, Inc.*		79,734		79
				1,232
Miscellaneous Manufacturing - 2.4%
A.O. Smith Corp.		4,881		239
Actuant Corp., Class A		8,708		237
Acuity Brands, Inc.		5,870		299
American Railcar Industries, Inc.*		3,463		94
AZZ, Inc.		2,709		166
Barnes Group, Inc.		6,233		151
Blount International, Inc.*		5,912		87
Ceradyne, Inc.		4,734		121
Chase Corp.		526		7
CLARCOR, Inc.		6,849		330
Colfax Corp.*		2,592		71
Eastman Kodak Co.*		28,500		6
EnPro Industries, Inc.*		2,313		86
Federal Signal Corp.*		14,051		82
FreightCar America, Inc.		4,186		96
GP Strategies Corp.*		947		18
Harsco Corp.		10,700		218
Hexcel Corp.*		11,809		305
Hillenbrand, Inc.		9,137		168
Koppers Holdings, Inc.		2,160		73
LSB Industries, Inc.*		2,977		92
Metabolix, Inc.*		2,174		4
Movado Group, Inc.		1,774		44
Myers Industries, Inc.		3,540		61
NL Industries, Inc.		3,507		44
PMFG, Inc.*		3,288		26
Polypore International, Inc.*		6,194		250
Raven Industries, Inc.		2,867		200
Smith & Wesson Holding Corp.*		1,496		12
Standex International Corp.		3,033		129
STR Holdings, Inc.*		5,314		24
Sturm Ruger & Co., Inc.		7,168		288
Tredegar Corp.		6,433		94
Trimas Corp.*		3,596		72
				4,194
Multi-National - 0.1%
Banco Latinoamericano de Comercio Exterior S.A., Class E		3,734		80
Office Furnishings - 0.3%
Compx International, Inc.		101		1
Herman Miller, Inc.		5,851		109
HNI Corp.		5,707		147
Interface, Inc.		8,289		113
Knoll, Inc.		7,443		100
Steelcase, Inc., Class A		11,935		108
Virco Manufacturing Corp.*		2,033		3
				581
Oil & Gas - 3.1%
Alon USA Energy, Inc.		3,386		29
Apco Oil and Gas International, Inc.		1,297		23
Approach Resources, Inc.*		3,533		90
ATP Oil & Gas Corp.*		4,866		16
Berry Petroleum Co., Class A		6,369		253
Bill Barrett Corp.*		4,748		102
Callon Petroleum Co.*		6,642		28
Carrizo Oil & Gas, Inc.*		5,352		126
Cheniere Energy, Inc.*		11,754		173
Clayton Williams Energy, Inc.*		1,087		53
Comstock Resources, Inc.*		4,848		80

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Oil & Gas - 3.1% continued
Contango Oil & Gas Co.*		2,180	$	129
CREDO Petroleum Corp.*		7,645		111
CVR Energy, Inc.*		12,890		343
Delek US Holdings, Inc.		3,523		62
Double Eagle Petroleum Co.*		5,687		25
Endeavour International Corp.*		1,100		9
Energy Partners Ltd.*		4,009		68
Energy XXI Bermuda Ltd.		8,671		271
Evolution Petroleum Corp.*		7,552		63
FX Energy, Inc.*		7,400		44
GeoResources, Inc.*		2,607		95
GMX Resources, Inc.*		19,683		16
Gran Tierra Energy, Inc.*		40,356		198
Gulfport Energy Corp.*		7,741		160
Harvest Natural Resources, Inc.*		10,542		90
Hercules Offshore, Inc.*		5,683		20
Houston American Energy Corp.*		1,335		1
Isramco, Inc.*		566		62
Kodiak Oil & Gas Corp.*		28,718		236
Magnum Hunter Resources Corp.*		15,851		66
McMoRan Exploration Co.*		11,282		143
Northern Oil and Gas, Inc.*		8,697		139
Oasis Petroleum, Inc.*		8,391		203
Panhandle Oil and Gas, Inc., Class A		3,629		109
PDC Energy, Inc.*		3,794		93
Penn Virginia Corp.		8,083		59
Petroquest Energy, Inc.*		10,570		53
PrimeEnergy Corp.*		4,608		120
Quicksilver Resources, Inc.*		13,147		71
Rex Energy Corp.*		5,904		66
Rosetta Resources, Inc.*		6,209		227
SandRidge Energy, Inc.*		11,772		79
Stone Energy Corp.*		7,258		184
Swift Energy Co.*		5,381		100
Texas Pacific Land Trust		1,480		85
Triangle Petroleum Corp.*		3,861		22
Vaalco Energy, Inc.*		11,811		102
Vanguard Natural Resources LLC		7,056		183
W&T Offshore, Inc.		6,247		96
Warren Resources, Inc.*		2,978		7
Western Refining, Inc.		8,597		191
ZaZa Energy Corp.*		4,371		20
Zion Oil & Gas, Inc.*		1,221		2
				5,396
Oil & Gas Services - 1.7%
Basic Energy Services, Inc.*		6,256		64
Bolt Technology Corp.		6,555		98
Cal Dive International, Inc.*		13,818		40
Dawson Geophysical Co.*		2,976		71
Dril-Quip, Inc.*		5,432		356
Exterran Holdings, Inc.*		12,681		162
Geokinetics, Inc.*		9,456		3
Global Geophysical Services, Inc.*		2,722		17
Gulf Island Fabrication, Inc.		2,693		76
Helix Energy Solutions Group, Inc.*		13,450		221
Hornbeck Offshore Services, Inc.*		4,326		168
ION Geophysical Corp.*		21,620		142
Key Energy Services, Inc.*		18,606		141
Lufkin Industries, Inc.		4,546		247
Matrix Service Co.*		4,435		50
Mitcham Industries, Inc.*		3,077		52
Natural Gas Services Group, Inc.*		5,187		77
Newpark Resources, Inc.*		14,512		86
OYO Geospace Corp.*		1,264		114
Pioneer Drilling Co.*		8,707		69
RPC, Inc.		14,401		171
Superior Energy Services, Inc.*		6,925		140
T.G.C. Industries, Inc.*		6,758		66
Targa Resources Corp.		5,035		215
TETRA Technologies, Inc.*		8,951		64
Union Drilling, Inc.*		1,087		5
Willbros Group, Inc.*		10,160		66
				2,981
Packaging & Containers - 0.1%
AEP Industries, Inc.*		2,289		100
Graphic Packaging Holding Co.*		10,460		57
				157
Pharmaceuticals - 3.0%
Acura Pharmaceuticals, Inc.*		24,508		77
Akorn, Inc.*		11,357		179
Alimera Sciences, Inc.*		3,791		11
Alkermes PLC*		8,140		138
Allos Therapeutics, Inc.*		7,039		13
Amicus Therapeutics, Inc.*		2,204		12
Anika Therapeutics, Inc.*		1,398		19
Array BioPharma, Inc.*		2,730		10
Auxilium Pharmaceuticals, Inc.*		3,794		102
AVANIR Pharmaceuticals, Inc., Class A*		37,562		147

EQUITY FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Pharmaceuticals - 3.0% continued
BioDelivery Sciences International, Inc.*		2,164	$	10
BioScrip, Inc.*		5,572		41
Biospecifics Technologies Corp.*		277		5
Clovis Oncology, Inc.*		2,097		45
Cumberland Pharmaceuticals, Inc.*		100		1
Cytori Therapeutics, Inc.*		1,102		3
Depomed, Inc.*		1,630		9
Durect Corp.*		3,795		3
Dyax Corp.*		2,589		6
Heska Corp.		3,729		41
Hi-Tech Pharmacal Co., Inc.*		2,051		66
Idenix Pharmaceuticals, Inc.*		2,318		24
Impax Laboratories, Inc.*		8,904		181
Infinity Pharmaceuticals, Inc.*		1,341		18
Isis Pharmaceuticals, Inc.*		14,266		171
Jazz Pharmaceuticals PLC*		4,229		190
Lannett Co., Inc.*		1,609		7
MAP Pharmaceuticals, Inc.*		7,772		116
Medicis Pharmaceutical Corp., Class A		7,574		259
Nabi Biopharmaceuticals*		5,952		9
Natural Alternatives International, Inc.*		867		7
Nature’s Sunshine Products, Inc.		7,472		113
Nektar Therapeutics*		8,017		65
Neogen Corp.*		2,299		106
Neurocrine Biosciences, Inc.*		1,918		15
Nutraceutical International Corp.*		1,885		29
Obagi Medical Products, Inc.*		7,163		109
Omega Protein Corp.*		1,069		8
Onyx Pharmaceuticals, Inc.*		6,846		455
Opko Health, Inc.*		10,455		48
Optimer Pharmaceuticals, Inc.*		1,642		26
Orexigen Therapeutics, Inc.*		40,037		222
Osiris Therapeutics, Inc.*		2,590		28
Pain Therapeutics, Inc.*		4,335		20
Par Pharmaceutical Cos., Inc.*		4,608		167
Pharmacyclics, Inc.*		7,300		399
PharMerica Corp.*		7,698		84
Pozen, Inc.*		1,341		8
Progenics Pharmaceuticals, Inc.*		1,504		15
Questcor Pharmaceuticals, Inc.*		6,899		367
Salix Pharmaceuticals Ltd.*		7,792		424
Santarus, Inc.*		2,290		16
Schiff Nutrition International, Inc.*		1,372		25
Sciclone Pharmaceuticals, Inc.*		2,305		16
SIGA Technologies, Inc.*		6,664		19
Sucampo Pharmaceuticals, Inc., Class A*		11,315		80
Synageva BioPharma Corp.*		621		25
Synta Pharmaceuticals Corp.*		1,913		10
Targacept, Inc.*		2,704		12
USANA Health Sciences, Inc.*		1,480		61
Vanda Pharmaceuticals, Inc.*		832		4
ViroPharma, Inc.*		11,592		275
				5,171
Pipelines - 0.2%
Crosstex Energy, Inc.		3,525		49
Niska Gas Storage Partners LLC, Class U		8,112		98
SemGroup Corp., Class A*		5,874		188
				335
Real Estate - 0.5%
Alexander & Baldwin, Inc.*		5,830		311
American Realty Investors, Inc.*		665		2
AV Homes, Inc.*		6,532		95
Consolidated-Tomoka Land Co.		1,887		54
Forestar Group, Inc.*		7,008		90
Kennedy-Wilson Holdings, Inc.		2,162		30
Sovran Self Storage, Inc.		4,475		224
St. Joe (The) Co.*		6,713		106
Stratus Properties, Inc.*		214		2
				914
Real Estate Investment Trusts - 6.7%
Acadia Realty Trust		5,267		122
Agree Realty Corp.		5,051		112
Alexander’s, Inc.		563		243
American Assets Trust, Inc.		1,707		41
Anworth Mortgage Asset Corp.		13,427		95
Apollo Commercial Real Estate Finance, Inc.		6,806		109
Arbor Realty Trust, Inc.		3,264		17
ARMOUR Residential REIT, Inc.		18,928		135
Ashford Hospitality Trust, Inc.		17,886		151
Associated Estates Realty Corp.		5,299		79
Brandywine Realty Trust		18,617		230
BRT Realty Trust*		3,541		23
Capital Trust, Inc., Class A*		2,797		8
CapLease, Inc.		17,256		72
Capstead Mortgage Corp.		11,855		165
Cedar Realty Trust, Inc.		15,982		81

NORTHERN FUNDS QUARTERLY REPORT    17    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Real Estate Investment Trusts - 6.7% continued
Chesapeake Lodging Trust		4,102	$	71
Colonial Properties Trust		11,841		262
Colony Financial, Inc.		6,340		110
CommonWealth REIT		10,548		202
Coresite Realty Corp.		186		5
Cousins Properties, Inc.		11,946		93
CreXus Investment Corp.		3,543		36
CubeSmart		16,109		188
CYS Investments, Inc.		16,162		223
DCT Industrial Trust, Inc.		30,583		193
DiamondRock Hospitality Co.		27,358		279
DuPont Fabros Technology, Inc.		9,883		282
Dynex Capital, Inc.		7,584		79
EastGroup Properties, Inc.		4,470		238
Education Realty Trust, Inc.		14,835		164
Entertainment Properties Trust		6,305		259
Equity Lifestyle Properties, Inc.		4,274		295
Equity One, Inc.		6,663		141
Excel Trust, Inc.		2,517		30
FelCor Lodging Trust, Inc.*		14,915		70
First Industrial Realty Trust, Inc.*		12,352		156
First Potomac Realty Trust		4,867		57
Franklin Street Properties Corp.		7,739		82
Getty Realty Corp.		4,644		89
Gladstone Commercial Corp.		3,781		63
Glimcher Realty Trust		14,820		151
Gramercy Capital Corp.*		2,428		6
Gyrodyne Co. of America, Inc.*		353		40
Healthcare Realty Trust, Inc.		10,951		261
Hersha Hospitality Trust		14,466		76
Highwoods Properties, Inc.		9,669		325
Hudson Pacific Properties, Inc.		740		13
Inland Real Estate Corp.		12,028		101
Invesco Mortgage Capital, Inc.		3,790		70
Investors Real Estate Trust		12,587		99
iStar Financial, Inc.*		9,644		62
Kite Realty Group Trust		1,919		10
LaSalle Hotel Properties		12,720		371
Lexington Realty Trust		20,233		171
LTC Properties, Inc.		3,405		124
Medical Properties Trust, Inc.		15,060		145
MHI Hospitality Corp.		643		2
Mission West Properties, Inc.		1,085		9
Monmouth Real Estate Investment Corp., Class A		8,132		95
MPG Office Trust, Inc.*		9,039		18
National Health Investors, Inc.		3,270		167
New York Mortgage Trust, Inc.		1,025		7
Newcastle Investment Corp.		14,647		98
NorthStar Realty Finance Corp.		15,722		82
Omega Healthcare Investors, Inc.		15,920		358
One Liberty Properties, Inc.		2,598		49
Parkway Properties, Inc.		8,296		95
Pebblebrook Hotel Trust		4,475		104
Pennsylvania Real Estate Investment Trust		8,798		132
PennyMac Mortgage Investment Trust		6,340		125
PMC Commercial Trust		935		7
Post Properties, Inc.		7,419		363
PS Business Parks, Inc.		2,322		157
RAIT Financial Trust		20,396		94
Ramco-Gershenson Properties Trust		4,748		60
Redwood Trust, Inc.		8,670		108
Resource Capital Corp.		7,715		41
Retail Opportunity Investments Corp.		10,349		125
Sabra Health Care REIT, Inc.		5,027		86
Saul Centers, Inc.		2,402		103
Starwood Property Trust, Inc.		13,551		289
Strategic Hotels & Resorts, Inc.*		24,367		157
Sun Communities, Inc.		5,685		252
Sunstone Hotel Investors, Inc.*		18,182		200
Terreno Realty Corp.		3,170		48
Two Harbors Investment Corp.		29,735		308
UMH Properties, Inc.		2,231		24
Universal Health Realty Income Trust		1,367		57
Urstadt Biddle Properties, Inc., Class A		3,660		72
Washington Real Estate Investment Trust		10,276		292
Whitestone REIT		1,864		26
Winthrop Realty Trust		8,989		109
				11,694
Retail - 6.2%
Aeropostale, Inc.*		9,231		165
AFC Enterprises, Inc.*		3,856		89
America’s Car-Mart, Inc.*		2,580		100
ANN, Inc.*		1,456		37
Asbury Automotive Group, Inc.*		5,297		126
Benihana, Inc.		4,995		80
Big 5 Sporting Goods Corp.		1,909		14
Biglari Holdings, Inc.*		279		108
BJ’s Restaurants, Inc.*		3,144		120

EQUITY FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Retail - 6.2% continued
Bob Evans Farms, Inc.		4,409	$	177
Books-A-Million, Inc.*		2,579		8
Brown Shoe Co., Inc.		7,887		102
Buckle (The), Inc.		3,794		150
Buffalo Wild Wings, Inc.*		2,868		249
Build-A-Bear Workshop, Inc.*		1,894		9
Cabela’s, Inc.*		7,465		282
Carrols Restaurant Group, Inc.*		1,358		8
Casey’s General Stores, Inc.		7,197		425
Cash America International, Inc.		3,809		168
Cato (The) Corp., Class A		3,371		103
CEC Entertainment, Inc.		5,410		197
Cheesecake Factory (The), Inc.*		7,601		243
Children’s Place Retail Stores (The), Inc.*		3,794		189
Christopher & Banks Corp.		2,713		3
Citi Trends, Inc.*		1,202		19
Coinstar, Inc.*		3,540		243
Collective Brands, Inc.*		7,199		154
Conn’s, Inc.*		2,704		40
Cracker Barrel Old Country Store, Inc.		2,156		135
Denny’s Corp.*		2,152		10
Destination Maternity Corp.		839		18
DineEquity, Inc.*		1,641		73
Domino’s Pizza, Inc.		7,062		218
Duckwall-ALCO Stores, Inc.*		800		7
Einstein Noah Restaurant Group, Inc.		3,826		67
Express, Inc.*		12,186		221
Ezcorp, Inc., Class A*		5,874		138
Famous Dave’s of America, Inc.*		2,317		26
Fiesta Restaurant Group, Inc.*		1,358		18
Finish Line (The), Inc., Class A		6,764		141
First Cash Financial Services, Inc.*		4,053		163
Fred’s, Inc., Class A		6,159		94
Frisch’s Restaurants, Inc.		3,450		98
Gaiam, Inc., Class A*		800		3
Genesco, Inc.*		2,704		163
GNC Holdings, Inc., Class A		820		32
Golfsmith International Holdings, Inc.*		698		4
Group 1 Automotive, Inc.		2,590		118
Haverty Furniture Cos., Inc.		2,174		24
hhgregg, Inc.*		2,321		26
Hibbett Sports, Inc.*		4,744		274
Hot Topic, Inc.		3,249		32
HSN, Inc.		6,154		248
Jack in the Box, Inc.*		6,928		193
Jos. A. Bank Clothiers, Inc.*		4,882		207
Kenneth Cole Productions, Inc., Class A*		1,502		23
Kirkland’s, Inc.*		4,290		48
Kona Grill, Inc.*		6,247		56
Krispy Kreme Doughnuts, Inc.*		10,325		66
Lithia Motors, Inc., Class A		1,492		34
Luby’s, Inc.*		1,473		10
Lumber Liquidators Holdings, Inc.*		2,377		80
Men’s Wearhouse (The), Inc.		5,829		164
New York & Co., Inc.*		2,296		8
Nu Skin Enterprises, Inc., Class A		6,772		318
Office Depot, Inc.*		31,609		68
OfficeMax, Inc.*		16,520		84
P.F. Chang’s China Bistro, Inc.		3,540		182
Pacific Sunwear of California, Inc.*		7,723		14
Pantry (The), Inc.*		793		12
Papa John’s International, Inc.*		2,459		117
PC Connection, Inc.		1,235		13
PC Mall, Inc.*		1,094		6
Penske Automotive Group, Inc.		9,345		199
Pep Boys - Manny, Moe & Jack (The)		7,872		78
PetMed Express, Inc.		2,849		35
Pier 1 Imports, Inc.		12,056		198
Pricesmart, Inc.		2,969		200
RadioShack Corp.		12,028		46
Red Robin Gourmet Burgers, Inc.*		6,292		192
Regis Corp.		9,345		168
Rite Aid Corp.*		17,921		25
Ruby Tuesday, Inc.*		13,714		93
rue21, Inc.*		1,118		28
Rush Enterprises, Inc., Class A*		5,297		87
Ruth’s Hospitality Group, Inc.*		3,239		21
Saks, Inc.*		13,038		139
Shoe Carnival, Inc.		3,909		84
Sonic Automotive, Inc., Class A		7,670		105
Sonic Corp.*		12,087		121
Stage Stores, Inc.		6,624		121
Stein Mart, Inc.*		3,270		26
Steinway Musical Instruments, Inc.*		2,701		66
Susser Holdings Corp.*		819		30
Syms Corp.*		1,013		7
Systemax, Inc.*		7,179		85
Texas Roadhouse, Inc.		9,746		180

NORTHERN FUNDS QUARTERLY REPORT    19    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Retail - 6.2% continued
Tuesday Morning Corp.*		1,360	$	6
Vera Bradley, Inc.*		559		12
Vitamin Shoppe, Inc.*		2,797		154
Wendy’s (The) Co.		38,000		179
West Marine, Inc.*		936		11
Wet Seal (The), Inc., Class A*		2,589		8
World Fuel Services Corp.		8,537		325
Zale Corp.*		2,567		7
Zumiez, Inc.*		2,072		82
				10,780
Savings & Loans - 1.5%
Astoria Financial Corp.		10,909		107
Bank Mutual Corp.		5,430		24
BankFinancial Corp.		1,890		14
Beacon Federal Bancorp, Inc.		5,221		103
Beneficial Mutual Bancorp, Inc.*		9,347		81
Berkshire Hills Bancorp, Inc.		6,310		139
Brookline Bancorp, Inc.		5,840		52
Cape Bancorp, Inc.*		1,086		9
Capitol Federal Financial, Inc.		19,674		234
Cheviot Financial Corp.		692		6
Chicopee Bancorp, Inc.*		832		12
Clifton Savings Bancorp, Inc.		2,869		30
Dime Community Bancshares, Inc.		2,844		38
ESB Financial Corp.		626		8
ESSA Bancorp, Inc.		832		9
First Clover Leaf Financial Corp.		267		2
First Defiance Financial Corp.		692		12
First Financial Holdings, Inc.		5,028		54
First Financial Northwest, Inc.*		940		8
First Niagara Financial Group, Inc.		13,150		100
First Pactrust Bancorp, Inc.		932		11
Flushing Financial Corp.		1,760		24
Fox Chase Bancorp, Inc.		5,993		86
Heritage Financial Group, Inc.		3,800		49
HF Financial Corp.		665		8
Hingham Institution for Savings		64		4
Home Federal Bancorp, Inc.		3,409		36
Investors Bancorp, Inc.*		3,239		49
Kaiser Federal Financial Group, Inc.		685		10
Kearny Financial Corp.		8,796		85
Kentucky First Federal Bancorp		862		7
Lake Shore Bancorp, Inc.		267		3
Meridian Interstate Bancorp, Inc.*		698		10
Meta Financial Group, Inc.		450		9
MutualFirst Financial, Inc.		546		6
NASB Financial, Inc.*		4,779		95
Newport Bancorp, Inc.*		149		2
Northeast Community Bancorp, Inc.		1,021		5
Northfield Bancorp, Inc.		5,840		83
Northwest Bancshares, Inc.		9,904		116
OceanFirst Financial Corp.		5,309		76
Oritani Financial Corp.		9,192		132
Provident Financial Services, Inc.		9,044		139
Provident New York Bancorp		3,790		29
Prudential Bancorp, Inc. of Pennsylvania*		1,290		7
Pulaski Financial Corp.		797		6
Rockville Financial, Inc.		1,234		14
Roma Financial Corp.		5,711		49
Severn Bancorp, Inc.*		1,582		5
SI Financial Group, Inc.		983		11
Teche Holding Co.		142		5
TF Financial Corp.		299		7
United Financial Bancorp, Inc.		3,912		56
ViewPoint Financial Group, Inc.		1,770		28
Washington Federal, Inc.		9,977		168
Waterstone Financial, Inc.*		3,370		13
Westfield Financial, Inc.		2,304		17
WSFS Financial Corp.		2,856		115
				2,617
Semiconductors - 3.0%
Aeroflex Holding Corp.*		7,832		47
Amkor Technology, Inc.*		15,175		74
ANADIGICS, Inc.*		4,619		8
ATMI, Inc.*		6,154		127
Brooks Automation, Inc.		9,861		93
BTU International, Inc.*		3,981		11
Cabot Microelectronics Corp.		3,136		92
Cascade Microtech, Inc.*		559		3
Cavium, Inc.*		4,102		115
Ceva, Inc.*		2,780		49
Cirrus Logic, Inc.*		11,129		333
Cohu, Inc.		5,331		54
Diodes, Inc.*		5,428		102
DSP Group, Inc.*		2,563		16
Emulex Corp.*		11,817		85
Entegris, Inc.*		14,243		122
Entropic Communications, Inc.*		6,556		37

EQUITY FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Semiconductors - 3.0% continued
Exar Corp.*		11,394	$	93
Fairchild Semiconductor International, Inc.*		13,427		189
FormFactor, Inc.*		5,829		38
GT Advanced Technologies, Inc.*		7,739		41
Hittite Microwave Corp.*		4,386		224
Integrated Device Technology, Inc.*		16,818		95
International Rectifier Corp.*		8,052		161
Intersil Corp., Class A		12,608		134
IXYS Corp.*		2,459		27
Kopin Corp.*		6,783		23
Kulicke & Soffa Industries, Inc.*		5,874		52
Lattice Semiconductor Corp.*		15,851		60
LTX-Credence Corp.*		15,291		102
Micrel, Inc.		10,178		97
Microsemi Corp.*		11,929		221
MIPS Technologies, Inc.*		5,608		37
MKS Instruments, Inc.		7,739		224
Monolithic Power Systems, Inc.*		4,478		89
OmniVision Technologies, Inc.*		6,564		88
Pericom Semiconductor Corp.*		2,160		19
Photronics, Inc.*		4,555		28
PLX Technology, Inc.*		1,236		8
PMC - Sierra, Inc.*		29,464		181
Power Integrations, Inc.		4,348		162
QLogic Corp.*		11,655		160
Rambus, Inc.*		7,272		42
Rubicon Technology, Inc.*		3,112		32
Rudolph Technologies, Inc.*		2,444		21
Semtech Corp.*		7,576		184
Silicon Image, Inc.*		2,844		12
Silicon Laboratories, Inc.*		5,594		212
Standard Microsystems Corp.*		3,310		122
Supertex, Inc.*		3,516		66
Tessera Technologies, Inc.		7,032		108
TriQuint Semiconductor, Inc.*		15,067		83
Ultratech, Inc.*		4,324		136
Veeco Instruments, Inc.*		4,728		162
Volterra Semiconductor Corp.*		3,525		83
				5,184
Software - 4.2%
Accelrys, Inc.*		3,370		27
ACI Worldwide, Inc.*		5,271		233
Actuate Corp.*		1,351		9
Acxiom Corp.*		7,751		117
Advent Software, Inc.*		6,251		170
American Software, Inc., Class A		15,036		120
Aspen Technology, Inc.*		11,371		263
athenahealth, Inc.*		4,625		366
Avid Technology, Inc.*		6,256		47
Blackbaud, Inc.		5,308		136
Bottomline Technologies, Inc.*		5,314		96
Callidus Software, Inc.*		2,038		10
CommVault Systems, Inc.*		5,698		282
Computer Programs & Systems, Inc.		3,783		217
Concur Technologies, Inc.*		5,062		345
CSG Systems International, Inc.*		5,544		96
Deltek, Inc.*		3,542		41
Digi International, Inc.*		5,395		55
Ebix, Inc.		6,765		135
EPIQ Systems, Inc.		2,182		27
Fair Isaac Corp.		5,712		242
FalconStor Software, Inc.*		1,628		4
Geeknet, Inc.*		2,323		46
GSE Systems, Inc.*		1,480		3
inContact, Inc.*		7,858		39
InnerWorkings, Inc.*		1,228		17
Innodata Isogen, Inc.*		1,900		13
Interactive Intelligence Group, Inc.*		1,082		31
JDA Software Group, Inc.*		5,728		170
Mantech International Corp., Class A		3,794		89
Market Leader, Inc.*		3,371		17
Marlborough Software Development Holdings, Inc.*		1,004		1
MedAssets, Inc.*		2,308		31
Medidata Solutions, Inc.*		3,263		107
Mediware Information Systems*		9,143		134
MicroStrategy, Inc., Class A*		1,202		156
NetSuite, Inc.*		3,356		184
Official Payments Holdings, Inc.*		1,064		4
Omnicell, Inc.*		5,763		84
Opnet Technologies, Inc.		4,348		116
Parametric Technology Corp.*		14,639		307
Pegasystems, Inc.		3,378		111
Pervasive Software, Inc.*		1,502		11
Progress Software Corp.*		9,090		190
PROS Holdings, Inc.*		4,714		79
QAD, Inc., Class B		942		13
QLIK Technologies, Inc.*		11,213		248

NORTHERN FUNDS QUARTERLY REPORT    21    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Software - 4.2% continued
Quality Systems, Inc.		5,133	$	141
Quest Software, Inc.*		10,456		291
RealPage, Inc.*		8,951		207
Schawk, Inc.		5,418		69
Seachange International, Inc.*		1,480		12
Smith Micro Software, Inc.*		7,032		13
SolarWinds, Inc.*		6,340		276
Sonic Foundry, Inc.*		4,382		31
SS&C Technologies Holdings, Inc.*		2,704		68
Synchronoss Technologies, Inc.*		5,274		97
SYNNEX Corp.*		3,655		126
Take-Two Interactive Software, Inc.*		7,645		72
Tyler Technologies, Inc.*		5,681		229
Ultimate Software Group, Inc.*		3,543		316
Verint Systems, Inc.*		1,958		58
Wayside Technology Group, Inc.		745		9
				7,254
Storage/Warehousing - 0.0%
Mobile Mini, Inc.*		5,358		77
Telecommunications - 2.8%
8x8, Inc.*		14,915		63
Acme Packet, Inc.*		7,700		144
ADTRAN, Inc.		8,678		262
Alaska Communications Systems Group, Inc.		7,946		17
Anaren, Inc.*		5,105		100
Anixter International, Inc.		4,187		222
Arris Group, Inc.*		13,972		194
Aruba Networks, Inc.*		10,733		162
Atlantic Tele-Network, Inc.		1,210		41
Aviat Networks, Inc.*		29,949		84
Aware, Inc.		738		5
Black Box Corp.		2,448		70
Cbeyond, Inc.*		2,868		19
Ciena Corp.*		9,243		151
Cincinnati Bell, Inc.*		30,363		113
Communications Systems, Inc.		3,131		35
Comtech Telecommunications Corp.		3,393		97
Comverse Technology, Inc.*		22,844		133
Consolidated Communications Holdings, Inc.		2,454		36
DigitalGlobe, Inc.*		4,848		73
Extreme Networks, Inc.*		5,948		20
Finisar Corp.*		9,510		142
General Communication, Inc., Class A*		4,082		34
GeoEye, Inc.*		3,439		53
Globecomm Systems, Inc.*		1,625		16
Harmonic, Inc.*		11,935		51
HickoryTech Corp.		5,491		61
IDT Corp., Class B		2,051		20
Infinera Corp.*		10,349		71
InterDigital, Inc.		5,713		169
Ixia*		9,234		111
KVH Industries, Inc.*		3,394		42
Leap Wireless International, Inc.*		7,388		48
LogMeIn, Inc.*		2,035		62
Loral Space & Communications, Inc.		932		63
Lumos Networks Corp.		1,287		12
Meru Networks, Inc.*		4,475		8
NETGEAR, Inc.*		4,344		150
Network Equipment Technologies, Inc.*		2,973		4
NeuStar, Inc., Class A*		7,127		238
Neutral Tandem, Inc.*		2,028		27
Novatel Wireless, Inc.*		8,953		22
NTELOS Holdings Corp.		2,499		47
Numerex Corp., Class A*		2,038		19
Oclaro, Inc.*		5,687		17
Oplink Communications, Inc.*		4,632		63
Opnext, Inc.*		1,480		2
Plantronics, Inc.		6,291		210
Powerwave Technologies, Inc.*		671		—
Preformed Line Products Co.		798		46
Premiere Global Services, Inc.*		14,619		123
R.F. Micro Devices, Inc.*		33,513		142
RigNet, Inc.*		372		6
Shenandoah Telecommunications Co.		1,904		26
ShoreTel, Inc.*		7,670		34
Sonus Networks, Inc.*		18,555		40
SureWest Communications		6,432		136
Sycamore Networks, Inc.*		2,174		32
Symmetricom, Inc.*		15,138		91
Telestone Technologies Corp.*		2,313		4
Tellabs, Inc.		40,467		135
Tessco Technologies, Inc.		1,474		32
USA Mobility, Inc.		3,917		50
UTStarcom Holdings Corp.*		5,954		7

EQUITY FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.6% continued
Telecommunications - 2.8% continued
ViaSat, Inc.*		3,780	$	143
Warwick Valley Telephone Co.		298		4
				4,854
Textiles - 0.2%
G&K Services, Inc., Class A		3,647		114
Hallwood Group (The), Inc.*		100		1
UniFirst Corp.		2,721		173
				288
Toys, Games & Hobbies - 0.1%
JAKKS Pacific, Inc.		3,130		50
LeapFrog Enterprises, Inc.*		4,055		42
				92
Transportation - 1.9%
Air Transport Services Group, Inc.*		3,510		18
Arkansas Best Corp.		4,195		53
Atlas Air Worldwide Holdings, Inc.*		3,529		154
Bristow Group, Inc.		4,967		202
CAI International, Inc.*		2,851		57
Celadon Group, Inc.		797		13
Con-way, Inc.		7,377		266
Covenant Transportation Group, Inc., Class A*		1,878		7
Eagle Bulk Shipping, Inc.*		310		1
Forward Air Corp.		4,733		153
Frozen Food Express Industries, Inc.*		7,846		9
Genesee & Wyoming, Inc., Class A*		4,600		243
Golar LNG Ltd.		4,626		174
Gulfmark Offshore, Inc., Class A*		2,471		84
Heartland Express, Inc.		9,621		138
Horizon Lines, Inc., Class A*		80		—
HUB Group, Inc., Class A*		4,731		171
International Shipholding Corp.		419		8
Knight Transportation, Inc.		8,660		139
Knightsbridge Tankers Ltd.		4,485		37
Marten Transport Ltd.		4,584		98
Nordic American Tankers Ltd.		3,239		44
Old Dominion Freight Line, Inc.*		6,106		264
Overseas Shipholding Group, Inc.		3,543		39
P.A.M. Transportation Services, Inc.		7,200		70
Pacer International, Inc.*		2,437		13
Patriot Transportation Holding, Inc.*		1,579		37
PHI, Inc. (Non Voting)*		4,070		113
Providence and Worcester Railroad Co.		2,107		28
Saia, Inc.*		2,298		50
Ship Finance International Ltd.		7,032		110
Teekay Tankers Ltd., Class A		949		4
Ultrapetrol Bahamas Ltd.*		1,646		2
Universal Truckload Services, Inc.		4,513		68
USA Truck, Inc.*		688		3
UTi Worldwide, Inc.		13,800		202
Werner Enterprises, Inc.		6,664		159
				3,231
Trucking & Leasing - 0.3%
AMERCO		826		74
GATX Corp.		6,873		265
Greenbrier Cos., Inc.*		1,084		19
TAL International Group, Inc.		3,409		114
Textainer Group Holdings Ltd.		2,847		105
Willis Lease Finance Corp.*		808		10
				587
Water - 0.2%
Artesian Resources Corp., Class A		554		12
California Water Service Group		5,948		110
Connecticut Water Service, Inc.		692		20
Consolidated Water Co. Ltd.		4,764		40
Middlesex Water Co.		4,686		89
SJW Corp.		3,098		74
York Water Co.		3,816		68
				413
Total Common Stocks (Cost $159,688)				167,521
OTHER - 0.0%
Escrow Adolor Corp.		1,241		—
Total Other (Cost $ — )				—
RIGHTS - 0.0%
Biotechnology - 0.0%
Omni Special Ltd.†*		3,326		—
Healthcare - Products - 0.0%
Span-America Medical Systems, Inc.†*		13,109		—
Total Rights (Cost $ — )				—

NORTHERN FUNDS QUARTERLY REPORT    23    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF WARRANTS		VALUE (000S)
WARRANTS - 0.0%
Magnum Hunter Resources Corp. Exp. 10/14/13, Strike $10.50*		1,700	$	—
Total Warrants (Cost $ — )				—
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2.7%
Northern Institutional Funds - Diversified Assets Portfolio(1) (2)		4,650,016	$	4,650
Total Investment Companies (Cost $4,650)				4,650
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.5%
U.S. Treasury Bill,
0.14%, 11/1/12(3)	$	930	$	930
Total Short-Term Investments (Cost $930)				930
Total Investments - 99.8% (Cost $165,268)				173,101
Other Assets less Liabilities - 0.2%				333
NET ASSETS - 100.0%			$	173,434

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $9,851,000 with net sales of approximately $5,201,000 during the three months ended June 30, 2012.

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

† Level 3 asset that is worthless, bankrupt or has been delisted.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	165,028
Gross tax appreciation of investments	$	25,227
Gross tax depreciation of investments		(17,154	)
Net tax appreciation of investments	$	8,073

At June 30, 2012, the Small Cap Core Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
Russell 2000 Mini		70	$	5,568		Long		9/12	$	291

At June 30, 2012, the industry sectors for the Small Cap Core Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		13.3	%
Consumer Staples		4.0
Energy		6.2
Financials		21.2
Health Care		13.1
Industrials		16.0
Information Technology		17.2
Materials		4.7
Telecommunication Services		0.8
Utilities		3.5
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

EQUITY FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Small Cap Core Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Advertising	$	78	$	—	$	—	$	78
Aerospace/Defense		2,547		41		—		2,588
Agriculture		625		—		—		625
Airlines		1,008		—		—		1,008
Apparel		2,271		—		—		2,271
Auto Manufacturers		53		—		—		53
Auto Parts & Equipment		1,241		—		—		1,241
Banks		9,508		2		—		9,510
Beverages		528		—		—		528
Biotechnology		3,366		—		—		3,366
Building Materials		1,978		—		—		1,978
Chemicals		3,334		—		—		3,334
Coal		494		—		—		494
Commercial Services		10,671		—		—		10,671
Computers		3,553		—		—		3,553
Cosmetics/Personal Care		250		—		—		250
Distribution/Wholesale		1,909		—		—		1,909
Diversified Financial Services		3,663		—		—		3,663
Electric		3,606		—		—		3,606
Electrical Components & Equipment		1,428		—		—		1,428
Electronics		4,339		—		—		4,339
Energy - Alternative Sources		208		—		—		208
Engineering & Construction		1,580		—		—		1,580
Entertainment		1,843		—		—		1,843
Environmental Control		1,253		—		—		1,253
Food		3,653		32		—		3,685
Forest Products & Paper		1,272		—		—		1,272
Gas		1,813		—		—		1,813
Hand/Machine Tools		173		—		—		173
Healthcare - Products		6,886		5		—		6,891
Healthcare - Services		3,597		—		—		3,597
Holding Companies - Diversified		180		—		—		180
Home Builders		1,046		—		—		1,046
Home Furnishings		678		—		—		678
Household Products/Wares		701		—		—		701
Insurance		5,434		—		—		5,434
Internet		3,775		—		—		3,775
Investment Companies		1,017		—		—		1,017
Iron/Steel		486		—		—		486
Leisure Time		1,069		7		—		1,076
Lodging		448		—		—		448
Machinery - Construction & Mining		100		—		—		100
Machinery - Diversified		2,966		—		—		2,966
Media		953		—		—		953
Metal Fabrication/Hardware		1,741		—		—		1,741
Mining		1,232		—		—		1,232
Miscellaneous Manufacturing		4,194		—		—		4,194
Multi-National		80		—		—		80
Office Furnishings		581		—		—		581
Oil & Gas		5,276		120		—		5,396
Oil & Gas Services		2,981		—		—		2,981
Packaging & Containers		157		—		—		157
Pharmaceuticals		5,171		—		—		5,171
Pipelines		335		—		—		335
Real Estate		913		1		—		914
Real Estate Investment Trusts		11,694		—		—		11,694
Retail		10,780		—		—		10,780
Savings & Loans		2,608		9		—		2,617
Semiconductors		5,184		—		—		5,184
Software		7,254		—		—		7,254
Storage/Warehousing		77		—		—		77
Telecommunications		4,854		—		—		4,854
Textiles		287		1		—		288
Toys, Games & Hobbies		92		—		—		92
Transportation		3,231		—		—		3,231
Trucking & Leasing		587		—		—		587
Water		413		—		—		413
Investment Companies		4,650		—		—		4,650
Short-Term Investments		—		930		—		930
Total Investments	$	171,953	$	1,148	$	—	$	173,101
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	291	$	—	$	—	$	291

NORTHERN FUNDS QUARTERLY REPORT    25    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, the Fund had transfers from Level 1 to Level 2 and transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 1 to Level 2
Industry	Value (000S)		Reason
Common Stocks
Aerospace/Defense	$	41	Valuations at bid price
Banks		2	Valuations at bid price
Food		4	Valuations at bid price
Healthcare-Products		5	Valuations at bid price
Investment Companies		1	Valuations at bid price
Leisure Time		7	Valuations at bid price
Total	$	60
Transfers from Level 2 to Level 1
Industry	Value (000S)		Reason
Common Stocks
Aerospace/Defense	$	3	Valuations at official close price
Banks		15	Valuations at official close price
Diversified Financial Services		2	Valuations at official close price
Insurance		6	Valuations at last trade price
Savings & Loans		104	Valuations at official close price
Total	$	130

U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EQUITY FUNDS    26    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9%
Advertising - 0.1%
Harte-Hanks, Inc.		162,838	$	1,488
Aerospace/Defense - 2.2%
AAR Corp.		164,189		2,213
Cubic Corp.		50,091		2,408
Curtiss-Wright Corp.		148,375		4,607
Ducommun, Inc.*		94,453		927
Esterline Technologies Corp.*		155,679		9,707
Kaman Corp.		24,690		764
Moog, Inc., Class A*		235,473		9,737
Orbital Sciences Corp.*		53,511		691
Triumph Group, Inc.		95,876		5,395
				36,449
Agriculture - 0.5%
Andersons (The), Inc.		60,735		2,591
Universal Corp.		105,174		4,873
				7,464
Airlines - 0.5%
JetBlue Airways Corp.*		1,087,076		5,762
SkyWest, Inc.		458,196		2,992
				8,754
Apparel - 1.1%
Columbia Sportswear Co.		120,692		6,471
Ennis, Inc.		214,988		3,307
Iconix Brand Group, Inc.*		256,304		4,478
Jones Group (The), Inc.		137,367		1,313
Perry Ellis International, Inc.*		40,607		843
Steven Madden Ltd.*		18,276		580
Unifi, Inc.*		38,317		434
Warnaco Group (The), Inc.*		17,286		736
				18,162
Auto Parts & Equipment - 0.7%
Cooper Tire & Rubber Co.		118,261		2,074
Dana Holding Corp.		324,500		4,157
Exide Technologies*		141,626		476
Miller Industries, Inc.		89,896		1,432
Standard Motor Products, Inc.		63,130		889
Superior Industries International, Inc.		116,901		1,914
				10,942
Banks - 12.9%
Bancfirst Corp.		24,406		1,023
BancorpSouth, Inc.		216,403		3,142
Bank of the Ozarks, Inc.		56,027		1,685
BBCN Bancorp, Inc.*		194,300		2,116
Capital City Bank Group, Inc.		40,126		296
Cardinal Financial Corp.		98,346		1,208
Cathay General Bancorp		191,500		3,162
Chemical Financial Corp.		224,318		4,823
City Holding Co.		84,828		2,858
Columbia Banking System, Inc.		64,440		1,213
Community Bank System, Inc.		283,657		7,693
Community Trust Bancorp, Inc.		103,425		3,464
CVB Financial Corp.		317,951		3,704
East West Bancorp, Inc.		158,065		3,708
Financial Institutions, Inc.		20,970		354
First Bancorp		124,583		1,108
First Commonwealth Financial Corp.		518,753		3,491
First Community Bancshares, Inc.		125,544		1,812
First Financial Bancorp		241,114		3,853
First Financial Corp.		84,281		2,444
First Merchants Corp.		109,298		1,362
First Midwest Bancorp, Inc.		325,861		3,578
FirstMerit Corp.		381,011		6,294
FNB Corp.		633,029		6,881
Fulton Financial Corp.		144,573		1,444
Glacier Bancorp, Inc.		62,112		962
Hancock Holding Co.		80,600		2,453
Hanmi Financial Corp.*		25,991		272
Heartland Financial USA, Inc.		68,416		1,642
Home BancShares, Inc.		85,704		2,621
Iberiabank Corp.		75,890		3,829
Independent Bank Corp.		117,899		3,444
International Bancshares Corp.		393,395		7,679
Lakeland Bancorp, Inc.		204,999		2,157
Lakeland Financial Corp.		58,225		1,562
MainSource Financial Group, Inc.		29,376		347
National Bankshares, Inc.		20,919		630
National Penn Bancshares, Inc.		301,900		2,889
NBT Bancorp, Inc.		162,043		3,498
Old National Bancorp		421,384		5,061
Park National Corp.		48,879		3,409
Peoples Bancorp, Inc.		17,600		387
Pinnacle Financial Partners, Inc.*		99,188		1,935
PrivateBancorp, Inc.		186,067		2,746
Prosperity Bancshares, Inc.		259,221		10,895
Renasant Corp.		188,913		2,968
S&T Bancorp, Inc.		131,511		2,429

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Banks - 12.9% continued
Sandy Spring Bancorp, Inc.		65,524	$	1,179
SCBT Financial Corp.		78,075		2,752
Sierra Bancorp		127,072		1,258
Simmons First National Corp., Class A		168,632		3,921
StellarOne Corp.		142,230		1,775
Sterling Bancorp		92,146		920
Susquehanna Bancshares, Inc.		863,296		8,892
SVB Financial Group*		122,838		7,213
Texas Capital Bancshares, Inc.*		110,746		4,473
Trico Bancshares		107,111		1,649
Trustmark Corp.		343,776		8,416
UMB Financial Corp.		160,039		8,199
Umpqua Holdings Corp.		275,600		3,627
Union First Market Bankshares Corp.		119,499		1,727
United Bankshares, Inc.		203,969		5,279
Washington Banking Co.		42,395		589
Washington Trust Bancorp, Inc.		117,644		2,868
Webster Financial Corp.		240,638		5,212
WesBanco, Inc.		81,985		1,743
Wilshire Bancorp, Inc.*		190,904		1,046
Wintrust Financial Corp.		115,623		4,105
				213,374
Biotechnology - 0.2%
InterMune, Inc.*		104,160		1,245
PDL BioPharma, Inc.		261,311		1,732
				2,977
Building Materials - 1.9%
Apogee Enterprises, Inc.		163,401		2,626
Comfort Systems USA, Inc.		220,457		2,209
Drew Industries, Inc.*		141,903		3,952
Gibraltar Industries, Inc.*		237,188		2,462
Griffon Corp.		215,125		1,846
Interline Brands, Inc.*		191,948		4,812
LSI Industries, Inc.		142,052		1,011
Quanex Building Products Corp.		190,879		3,413
Simpson Manufacturing Co., Inc.		136,776		4,036
Texas Industries, Inc.		26,445		1,032
Universal Forest Products, Inc.		104,781		4,084
				31,483
Chemicals - 2.0%
A. Schulman, Inc.		108,059		2,145
Aceto Corp.		249,668		2,254
Cabot Corp.		72,996		2,971
Cytec Industries, Inc.		23,014		1,350
H.B. Fuller Co.		150,947		4,634
Innophos Holdings, Inc.		52,784		2,980
Minerals Technologies, Inc.		60,427		3,854
Olin Corp.		284,500		5,943
OM Group, Inc.*		157,524		2,993
Sensient Technologies Corp.		127,135		4,670
				33,794
Coal - 0.2%
Cloud Peak Energy, Inc.*		188,977		3,195
James River Coal Co.*		218,314		592
				3,787
Commercial Services - 3.9%
ABM Industries, Inc.		186,015		3,639
Arbitron, Inc.		11,602		406
Barrett Business Services, Inc.		25,910		548
Brink’s (The) Co.		20,020		464
CDI Corp.		113,614		1,863
Convergys Corp.		367,623		5,430
Corporate Executive Board (The) Co.		14,206		581
CRA International, Inc.*		38,022		559
Electro Rent Corp.		150,916		2,449
Euronet Worldwide, Inc.*		126,000		2,157
Geo Group (The), Inc.*		191,873		4,359
Great Lakes Dredge & Dock Corp.		158,679		1,130
Heidrick & Struggles International, Inc.		146,424		2,562
Kelly Services, Inc., Class A		99,640		1,286
Kforce, Inc.*		76,176		1,025
Korn/Ferry International*		180,287		2,587
MAXIMUS, Inc.		55,150		2,854
Multi-Color Corp.		83,767		1,863
PHH Corp.*		449,059		7,850
Rent-A-Center, Inc.		359,044		12,114
Stewart Enterprises, Inc., Class A		707,577		5,052
Viad Corp.		182,376		3,648
VistaPrint N.V.*		16,429		531
				64,957
Computers - 1.5%
Brocade Communications Systems, Inc.*		301,971		1,489
CACI International, Inc., Class A*		99,069		5,451
Cray, Inc.*		275,891		3,333
Electronics for Imaging, Inc.*		188,518		3,063
Insight Enterprises, Inc.*		328,911		5,535

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Computers - 1.5% continued
Mentor Graphics Corp.*		198,990	$	2,985
Synaptics, Inc.*		13,751		394
Xyratex Ltd.		208,836		2,362
				24,612
Cosmetics/Personal Care - 0.2%
Elizabeth Arden, Inc.*		62,006		2,407
Inter Parfums, Inc.		71,513		1,235
				3,642
Distribution/Wholesale - 0.5%
Core-Mark Holding Co., Inc.		63,982		3,080
Owens & Minor, Inc.		64,297		1,970
United Stationers, Inc.		99,269		2,675
				7,725
Diversified Financial Services - 1.9%
Aircastle Ltd.		151,286		1,823
Calamos Asset Management, Inc., Class A		57,029		653
Encore Capital Group, Inc.*		104,080		3,083
GFI Group, Inc.		133,886		477
Investment Technology Group, Inc.*		187,079		1,721
Janus Capital Group, Inc.		115,488		903
JMP Group, Inc.		5,196		32
KBW, Inc.		54,103		890
Knight Capital Group, Inc., Class A*		322,018		3,845
National Financial Partners Corp.*		158,959		2,130
Nelnet, Inc., Class A		163,823		3,768
NewStar Financial, Inc.*		72,428		939
Ocwen Financial Corp.*		260,283		4,888
Oppenheimer Holdings, Inc., Class A		31,755		499
Piper Jaffray Cos.*		19,695		461
Stifel Financial Corp.*		91,739		2,835
World Acceptance Corp.*		46,877		3,084
				32,031
Electric - 4.8%
Allete, Inc.		164,084		6,859
Avista Corp.		301,804		8,058
Black Hills Corp.		112,400		3,616
Cleco Corp.		210,789		8,817
El Paso Electric Co.		292,473		9,698
Empire District Electric (The) Co.		105,200		2,220
IDACORP, Inc.		281,887		11,862
NorthWestern Corp.		144,145		5,290
Otter Tail Corp.		142,550		3,260
PNM Resources, Inc.		197,700		3,863
Portland General Electric Co.		263,876		7,035
UNS Energy Corp.		203,540		7,818
				78,396
Electrical Components & Equipment - 0.7%
Advanced Energy Industries, Inc.*		39,695		533
Encore Wire Corp.		127,282		3,408
EnerSys*		56,734		1,990
Littelfuse, Inc.		83,238		4,735
Power-One, Inc.*		269,896		1,220
				11,886
Electronics - 3.4%
Analogic Corp.		37,689		2,337
Bel Fuse, Inc., Class B		74,053		1,304
Benchmark Electronics, Inc.*		240,669		3,357
Brady Corp., Class A		263,561		7,251
Coherent, Inc.*		109,410		4,738
CTS Corp.		261,501		2,463
Cymer, Inc.*		85,722		5,053
FEI Co.*		84,329		4,034
Newport Corp.*		104,631		1,258
OSI Systems, Inc.*		78,679		4,984
Park Electrochemical Corp.		80,881		2,093
Plexus Corp.*		97,499		2,750
Rofin-Sinar Technologies, Inc.*		140,532		2,660
Rogers Corp.*		86,649		3,432
Sanmina-SCI Corp.*		211,200		1,730
Watts Water Technologies, Inc., Class A		165,310		5,511
Woodward, Inc.		29,472		1,162
				56,117
Energy - Alternate Sources - 0.1%
REX American Resources Corp.*		60,411		1,179
Engineering & Construction - 1.1%
Aegion Corp.*		18,298		328
Dycom Industries, Inc.*		242,550		4,514
EMCOR Group, Inc.		255,071		7,096
Granite Construction, Inc.		139,718		3,648
Layne Christensen Co.*		119,485		2,472
				18,058
Entertainment - 0.6%
Churchill Downs, Inc.		131,784		7,748
International Speedway Corp., Class A		39,803		1,042

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Entertainment - 0.6% continued
Vail Resorts, Inc.		34,513	$	1,728
				10,518
Environmental Control - 0.2%
Darling International, Inc.*		205,300		3,385
Mine Safety Appliances Co.		15,694		632
				4,017
Food - 0.7%
Chiquita Brands International, Inc.*		406,698		2,034
Dole Food Co., Inc.*		56,157		493
Fresh Del Monte Produce, Inc.		217,653		5,108
Nash Finch Co.		70,969		1,524
Sanderson Farms, Inc.		13,900		637
Seneca Foods Corp., Class A*		40,487		1,089
TreeHouse Foods, Inc.*		5,373		335
				11,220
Forest Products & Paper - 0.9%
Boise, Inc.		347,148		2,284
Buckeye Technologies, Inc.		32,769		934
Domtar Corp.		42,211		3,238
KapStone Paper and Packaging Corp.*		89,575		1,420
Mercer International, Inc.*		221,514		1,265
Neenah Paper, Inc.		10,161		271
P.H. Glatfelter Co.		338,986		5,549
Schweitzer-Mauduit International, Inc.		6,905		470
				15,431
Gas - 1.2%
AGL Resources, Inc.		60,297		2,337
Laclede Group (The), Inc.		71,062		2,829
South Jersey Industries, Inc.		59,900		3,053
Southwest Gas Corp.		277,943		12,132
				20,351
Healthcare - Products - 1.3%
AngioDynamics, Inc.*		149,335		1,794
Cantel Medical Corp.		148,160		4,037
CONMED Corp.		235,850		6,526
CryoLife, Inc.*		219,005		1,145
Greatbatch, Inc.*		142,352		3,233
Hanger Orthopedic Group, Inc.*		82,300		2,110
Invacare Corp.		118,211		1,824
				20,669
Healthcare - Services - 2.4%
Amedisys, Inc.*		81,348		1,013
Amsurg Corp.*		109,331		3,278
Capital Senior Living Corp.*		82,366		873
Centene Corp.*		53,489		1,613
Community Health Systems, Inc.*		259,681		7,279
Five Star Quality Care, Inc.*		350,794		1,077
Kindred Healthcare, Inc.*		501,829		4,933
LifePoint Hospitals, Inc.*		124,241		5,091
Magellan Health Services, Inc.*		62,800		2,847
Medcath Corp.		106,845		798
Molina Healthcare, Inc.*		189,451		4,445
RadNet, Inc.*		117,735		313
Triple-S Management Corp., Class B*		157,343		2,876
Universal American Corp.*		185,452		1,953
WellCare Health Plans, Inc.*		27,311		1,447
				39,836
Holding Companies - Diversified - 0.2%
Compass Diversified Holdings		182,783		2,552
Home Builders - 0.3%
Cavco Industries, Inc.*		4,860		249
MDC Holdings, Inc.		32,085		1,048
Meritage Homes Corp.*		77,801		2,641
Ryland Group (The), Inc.		19,273		493
				4,431
Home Furnishings - 0.3%
Ethan Allen Interiors, Inc.		77,695		1,549
Hooker Furniture Corp.		68,276		805
La-Z-Boy, Inc.*		159,514		1,960
VOXX International Corp.*		125,729		1,172
				5,486
Household Products/Wares - 1.3%
American Greetings Corp., Class A		305,856		4,472
Avery Dennison Corp.		48,738		1,333
Blyth, Inc.		123,532		4,269
CSS Industries, Inc.		61,469		1,263
Helen of Troy Ltd.*		127,061		4,306
Prestige Brands Holdings, Inc.*		336,889		5,326
				20,969
Insurance - 5.9%
Alterra Capital Holdings Ltd.		343,644		8,024
American Equity Investment Life Holding Co.		292,018		3,215
AMERISAFE, Inc.*		59,993		1,557
Argo Group International Holdings Ltd.		23,289		682

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Insurance - 5.9% continued
Assured Guaranty Ltd.		192,700	$	2,717
CNO Financial Group, Inc.		1,234,510		9,629
Donegal Group, Inc., Class A		152,830		2,030
EMC Insurance Group, Inc.		55,697		1,125
Employers Holdings, Inc.		143,032		2,580
Endurance Specialty Holdings Ltd.		33,987		1,302
FBL Financial Group, Inc., Class A		205,531		5,757
First American Financial Corp.		240,700		4,082
Hallmark Financial Services, Inc.*		65,007		507
Horace Mann Educators Corp.		262,352		4,586
Kemper Corp.		40,755		1,253
Meadowbrook Insurance Group, Inc.		374,083		3,288
Montpelier Re Holdings Ltd.		171,340		3,648
National Western Life Insurance Co., Class A		2,792		396
Navigators Group (The), Inc.*		114,733		5,742
Old Republic International Corp.		86,227		715
Platinum Underwriters Holdings Ltd.		97,100		3,699
Primerica, Inc.		116,000		3,101
RLI Corp.		57,095		3,894
Safety Insurance Group, Inc.		21,229		863
Selective Insurance Group, Inc.		398,209		6,933
StanCorp Financial Group, Inc.		115,383		4,288
State Auto Financial Corp.		53,710		755
Symetra Financial Corp.		340,765		4,300
United Fire Group, Inc.		80,106		1,709
Validus Holdings Ltd.		127,484		4,083
				96,460
Internet - 0.9%
AsiaInfo-Linkage, Inc.*		14,408		170
Blucora, Inc.*		236,522		2,914
DealerTrack Holdings, Inc.*		17,704		533
Digital River, Inc.*		76,908		1,278
EarthLink, Inc.		483,548		3,598
PC-Tel, Inc.		98,758		639
Sapient Corp.		59,768		602
United Online, Inc.		442,875		1,869
WebMD Health Corp.*		127,600		2,617
				14,220
Investment Companies - 0.8%
Apollo Investment Corp.		557,259		4,280
Ares Capital Corp.		109,328		1,745
Arlington Asset Investment Corp., Class A		12,981		282
BlackRock Kelso Capital Corp.		183,704		1,793
Gladstone Capital Corp.		36,175		285
Hercules Technology Growth Capital, Inc.		257,265		2,917
MVC Capital, Inc.		160,779		2,082
Steel Excel, Inc.*		23,533		639
				14,023
Leisure Time - 0.2%
Arctic Cat, Inc.*		30,400		1,111
WMS Industries, Inc.*		139,700		2,787
				3,898
Lodging - 0.2%
Marcus Corp.		189,931		2,613
Machinery - Construction & Mining - 0.0%
Astec Industries, Inc.*		3,335		102
Machinery - Diversified - 1.5%
Albany International Corp., Class A		142,043		2,658
Briggs & Stratton Corp.		359,810		6,293
Cascade Corp.		78,999		3,717
Cognex Corp.		111,567		3,531
Intevac, Inc.*		158,225		1,190
Kadant, Inc.*		19,974		468
NACCO Industries, Inc., Class A		36,050		4,191
Robbins & Myers, Inc.		74,964		3,135
				25,183
Media - 0.8%
Digital Generation, Inc.*		39,832		493
Gannett Co., Inc.		122,603		1,806
Journal Communications, Inc., Class A*		407,426		2,102
Meredith Corp.		89,400		2,856
Scholastic Corp.		209,448		5,898
				13,155
Metal Fabrication/Hardware - 1.1%
A.M. Castle & Co.*		110,087		1,169
Ampco-Pittsburgh Corp.		17,689		324
CIRCOR International, Inc.		55,150		1,880
Mueller Industries, Inc.		184,796		7,871
Northwest Pipe Co.*		41,645		1,010
Olympic Steel, Inc.		53,352		876
Worthington Industries, Inc.		278,460		5,700
				18,830
Mining - 0.8%
Coeur d’Alene Mines Corp.*		222,212		3,902
Hecla Mining Co.		365,952		1,738

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Mining - 0.8% continued
Kaiser Aluminum Corp.		32,935	$	1,708
Materion Corp.		181,730		4,185
Thompson Creek Metals Co., Inc.*		418,216		1,334
				12,867
Miscellaneous Manufacturing - 1.9%
A.O. Smith Corp.		35,105		1,716
Barnes Group, Inc.		221,053		5,369
Ceradyne, Inc.		233,319		5,985
EnPro Industries, Inc.*		127,685		4,772
Federal Signal Corp.*		281,255		1,643
Hexcel Corp.*		42,030		1,084
Myers Industries, Inc.		272,609		4,678
Raven Industries, Inc.		7,707		536
Standex International Corp.		92,166		3,923
Tredegar Corp.		119,934		1,746
				31,452
Oil & Gas - 1.9%
Approach Resources, Inc.*		14,551		372
Bill Barrett Corp.*		162,228		3,475
Clayton Williams Energy, Inc.*		27,220		1,317
GeoResources, Inc.*		131,898		4,829
Gran Tierra Energy, Inc.*		249,307		1,224
Gulfport Energy Corp.*		94,900		1,958
Parker Drilling Co.*		704,381		3,177
PDC Energy, Inc.*		145,729		3,573
Rex Energy Corp.*		64,640		725
Stone Energy Corp.*		121,800		3,086
Swift Energy Co.*		190,032		3,537
Vaalco Energy, Inc.*		304,572		2,628
Venoco, Inc.*		72,352		724
Warren Resources, Inc.*		78,890		189
				30,814
Oil & Gas Services - 1.8%
Cal Dive International, Inc.*		855,160		2,480
Dril-Quip, Inc.*		17,118		1,123
Helix Energy Solutions Group, Inc.*		262,200		4,303
Hornbeck Offshore Services, Inc.*		206,956		8,026
Key Energy Services, Inc.*		484,170		3,680
Lufkin Industries, Inc.		13,034		708
Natural Gas Services Group, Inc.*		117,784		1,745
Newpark Resources, Inc.*		563,210		3,323
Oil States International, Inc.*		19,027		1,259
OYO Geospace Corp.*		2,196		197
Superior Energy Services, Inc.*		19,759		400
TETRA Technologies, Inc.*		236,006		1,683
				28,927
Packaging & Containers - 0.3%
Graphic Packaging Holding Co.*		560,861		3,085
Rock-Tenn Co., Class A		33,892		1,849
				4,934
Pharmaceuticals - 0.8%
Neurocrine Biosciences, Inc.*		37,546		297
Nutraceutical International Corp.*		82,980		1,265
ViroPharma, Inc.*		456,241		10,813
				12,375
Pipelines - 0.3%
Crosstex Energy, Inc.		213,851		2,994
Enbridge Energy Management LLC*		45,901		1,467
Enbridge Energy Management LLC - (Fractional Shares)*		2,357,717		—
Kinder Morgan Management LLC - (Fractional Shares)*		21,957		—
				4,461
Real Estate - 0.1%
W.P. Carey & Co. LLC		50,011		2,302
Real Estate Investment Trusts - 9.8%
Acadia Realty Trust		99,985		2,318
Agree Realty Corp.		86,233		1,908
Alexandria Real Estate Equities, Inc.		22,332		1,624
Anworth Mortgage Asset Corp.		450,971		3,179
ARMOUR Residential REIT, Inc.		193,700		1,377
Capstead Mortgage Corp.		363,968		5,063
CBL & Associates Properties, Inc.		272,593		5,327
Cedar Realty Trust, Inc.		363,208		1,834
Colonial Properties Trust		213,093		4,718
Corporate Office Properties Trust		35,703		839
DiamondRock Hospitality Co.		512,872		5,231
Duke Realty Corp.		202,712		2,968
DuPont Fabros Technology, Inc.		86,350		2,466
Dynex Capital, Inc.		149,583		1,553
Entertainment Properties Trust		175,973		7,234
Equity One, Inc.		275,083		5,832
First Industrial Realty Trust, Inc.*		181,470		2,290
First Potomac Realty Trust		240,218		2,827
Franklin Street Properties Corp.		258,686		2,737
Gladstone Commercial Corp.		35,950		599

EQUITY FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Real Estate Investment Trusts - 9.8% continued
Government Properties Income Trust		94,100	$	2,129
Hatteras Financial Corp.		209,005		5,978
Healthcare Realty Trust, Inc.		177,410		4,229
Highwoods Properties, Inc.		215,942		7,266
Invesco Mortgage Capital, Inc.		346,338		6,352
Investors Real Estate Trust		218,495		1,726
Kite Realty Group Trust		307,179		1,533
LaSalle Hotel Properties		254,635		7,420
LTC Properties, Inc.		171,114		6,208
Medical Properties Trust, Inc.		703,421		6,767
MFA Financial, Inc.		1,026,019		8,095
National Health Investors, Inc.		124,132		6,321
NorthStar Realty Finance Corp.		705,137		3,681
One Liberty Properties, Inc.		38,703		729
Pennsylvania Real Estate Investment Trust		187,407		2,807
PS Business Parks, Inc.		42,900		2,905
Ramco-Gershenson Properties Trust		190,221		2,391
Redwood Trust, Inc.		453,423		5,659
Resource Capital Corp.		198,962		1,061
Starwood Property Trust, Inc.		288,900		6,156
Strategic Hotels & Resorts, Inc.*		389,053		2,513
Washington Real Estate Investment Trust		146,606		4,171
Weingarten Realty Investors		115,597		3,045
				161,066
Retail - 5.8%
Aeropostale, Inc.*		38,156		680
Bob Evans Farms, Inc.		144,841		5,823
Casey’s General Stores, Inc.		95,423		5,629
Cash America International, Inc.		194,811		8,579
Coinstar, Inc.*		6,600		453
Cracker Barrel Old Country Store, Inc.		86,337		5,422
Domino’s Pizza, Inc.		24,833		768
DSW, Inc., Class A		99,011		5,386
Einstein Noah Restaurant Group, Inc.		40,877		718
Fifth & Pacific Cos., Inc.*		255,900		2,746
Fred’s, Inc., Class A		298,806		4,569
Group 1 Automotive, Inc.		70,158		3,200
Haverty Furniture Cos., Inc.		87,788		981
Kenneth Cole Productions, Inc., Class A*		60,454		910
Men’s Wearhouse (The), Inc.		323,162		9,094
Pantry (The), Inc.*		132,263		1,944
PC Connection, Inc.		153,769		1,633
Penske Automotive Group, Inc.		178,768		3,797
Pep Boys-Manny, Moe & Jack (The)		171,272		1,696
Pricesmart, Inc.		12,393		837
Regis Corp.		454,893		8,170
Ruby Tuesday, Inc.*		144,881		987
Rush Enterprises, Inc., Class A*		241,823		3,954
Saks, Inc.*		379,015		4,036
Shoe Carnival, Inc.		74,001		1,590
Sonic Automotive, Inc., Class A		509,985		6,971
Stage Stores, Inc.		197,504		3,618
Texas Roadhouse, Inc.		51,073		941
Wet Seal (The), Inc., Class A*		210,780		666
World Fuel Services Corp.		13,125		499
				96,297
Savings & Loans - 2.2%
Astoria Financial Corp.		255,377		2,503
BankFinancial Corp.		59,331		447
Berkshire Hills Bancorp, Inc.		37,326		821
Dime Community Bancshares		257,722		3,425
First Financial Holdings, Inc.		43,720		469
First Niagara Financial Group, Inc.		469,357		3,591
Flushing Financial Corp.		316,376		4,312
Northwest Bancshares, Inc.		193,306		2,264
OceanFirst Financial Corp.		74,173		1,065
Provident Financial Holdings, Inc.		17,548		202
Provident Financial Services, Inc.		359,444		5,517
Provident New York Bancorp		245,821		1,866
United Financial Bancorp, Inc.		151,569		2,180
Washington Federal, Inc.		329,310		5,562
WSFS Financial Corp.		58,439		2,361
				36,585
Semiconductors - 3.1%
Amkor Technology, Inc.*		118,070		576
ATMI, Inc.*		120,528		2,479
Brooks Automation, Inc.		430,116		4,060
Cabot Microelectronics Corp.		17,312		506
Cohu, Inc.		150,672		1,531
Emulex Corp.*		248,676		1,790
Entegris, Inc.*		460,319		3,931
Fairchild Semiconductor International, Inc.*		188,200		2,654
GSI Technology, Inc.*		130,455		618
Integrated Device Technology, Inc.*		45,903		258
Intersil Corp., Class A		314,200		3,346
Kulicke & Soffa Industries, Inc.*		176,143		1,571
Lattice Semiconductor Corp.*		197,331		744

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Semiconductors - 3.1% continued
LTX-Credence Corp.*		79,792	$	535
MEMC Electronic Materials, Inc.*		142,712		310
MKS Instruments, Inc.		277,835		8,038
Nanometrics, Inc.*		42,095		647
OmniVision Technologies, Inc.*		172,567		2,305
Pericom Semiconductor Corp.*		204,698		1,842
Photronics, Inc.*		200,734		1,224
Power Integrations, Inc.		12,032		449
QLogic Corp.*		43,025		589
Rubicon Technology, Inc.*		13,849		141
Semtech Corp.*		28,286		688
Silicon Image, Inc.*		279,752		1,158
Standard Microsystems Corp.*		21,441		791
Tessera Technologies, Inc.		120,991		1,860
TriQuint Semiconductor, Inc.*		525,084		2,888
Veeco Instruments, Inc.*		97,221		3,341
				50,870
Software - 1.7%
Acxiom Corp.*		193,600		2,925
Advent Software, Inc.*		21,666		588
Blackbaud, Inc.		18,465		474
Digi International, Inc.*		248,116		2,541
Ebix, Inc.		47,834		954
Fair Isaac Corp.		21,026		889
JDA Software Group, Inc.*		158,707		4,712
MicroStrategy, Inc., Class A*		4,598		597
Parametric Technology Corp.*		49,954		1,047
Progress Software Corp.*		79,975		1,669
Quest Software, Inc.*		93,360		2,600
Schawk, Inc.		156,905		1,993
SS&C Technologies Holdings, Inc.*		34,009		850
SYNNEX Corp.*		144,859		4,996
Take-Two Interactive Software, Inc.*		135,759		1,284
				28,119
Storage/Warehousing - 0.2%
Mobile Mini, Inc.*		215,249		3,100
Telecommunications - 1.9%
ADTRAN, Inc.		27,197		821
Arris Group, Inc.*		243,200		3,383
Black Box Corp.		125,682		3,607
Comtech Telecommunications Corp.		49,000		1,400
Extreme Networks, Inc.*		303,705		1,045
Finisar Corp.*		230,900		3,454
General Communication, Inc., Class A*		204,297		1,698
NETGEAR, Inc.*		73,844		2,548
Oplink Communications, Inc.*		136,559		1,848
Plantronics, Inc.		112,242		3,749
Premiere Global Services, Inc.*		327,421		2,747
RF Micro Devices, Inc.*		617,614		2,625
SureWest Communications		15,531		327
Telephone & Data Systems, Inc.		97,050		2,066
				31,318
Textiles - 0.7%
G&K Services, Inc., Class A		116,874		3,645
UniFirst Corp.		116,658		7,437
				11,082
Toys, Games & Hobbies - 0.2%
JAKKS Pacific, Inc.		193,759		3,102
Transportation - 1.6%
Atlas Air Worldwide Holdings, Inc.*		68,088		2,962
Bristow Group, Inc.		157,717		6,414
Genco Shipping & Trading Ltd.*		160,834		491
Gulfmark Offshore, Inc., Class A*		182,771		6,221
Nordic American Tankers Ltd.		101,898		1,383
Overseas Shipholding Group, Inc.		98,170		1,091
PHI, Inc. (Non Voting)*		76,287		2,122
Saia, Inc.*		77,412		1,695
Ship Finance International Ltd.		232,848		3,639
Universal Truckload Services, Inc.		19,373		293
				26,311
Trucking & Leasing - 0.6%
AMERCO		72,446		6,518
TAL International Group, Inc.		73,412		2,459
Willis Lease Finance Corp.*		28,049		345
				9,322
Total Common Stocks (Cost $1,423,100)				1,596,545
CONVERTIBLE PREFERRED STOCKS - 0.0%
Healthcare - Products - 0.0%
Alere, Inc. 3.00%		3,306		684
Total Convertible Preferred Stocks (Cost $723)				684

EQUITY FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
OTHER - 0.0%
Escrow DLB Oil & Gas(1) *		2,100	$	—
Escrow Gerber Scientific, Inc.(1) *		264,734		—
Total Other (Cost $ — )				—
INVESTMENT COMPANIES - 2.5%
Northern Institutional Funds - Diversified Assets Portfolio(2) (3)		40,555,323		40,556
Total Investment Companies (Cost $40,556)				40,556
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.5%
U.S. Treasury Bill,
0.14%, 11/1/12(4)	$	8,444	$	8,441
Total Short-Term Investments (Cost $8,440)				8,441
Total Investments - 99.9% (Cost $1,472,819)				1,646,226
Other Assets less Liabilities - 0.1%				1,917
NET ASSETS - 100.0%			$	1,648,143

(1) Security listed as escrow is considered to be worthless.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $100,617,000 with net sales of approximately $60,061,000 during the three months ended June 30, 2012.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the Small Cap Value Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
E-mini S&P 500		114	$	7,731		Long		9/12	$	508
E-mini S&P MidCap 400		93		8,737		Long		9/12		305
Russell 2000 Mini		423		33,645		Long		9/12		2,028
Total									$	2,841

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,467,220
Gross tax appreciation of investments	$	281,465
Gross tax depreciation of investments		(102,459	)
Net tax appreciation of investments	$	179,006

At June 30, 2012, the industry sectors for the Small Cap Value Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.4	%
Consumer Staples		2.6
Energy		5.7
Financials		35.6
Health Care		5.0
Industrials		15.2
Information Technology		12.9
Materials		5.0
Telecommunication Services		0.4
Utilities		6.2
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Valuations based on inputs that are unobservable and significant. The Fund utilized the following techniques on Level 3 investments: The Fund valued a security using a price provided by NTGI PVC.

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND continued

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Small Cap Value Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	1,596,545	(1)	$	—	$	—	$	1,596,545
Convertible Preferred Stocks		684			—		—		684
Investment Companies		40,556			—		—		40,556
Short-Term Investments		—			8,441		—		8,441
Total Investments	$	1,637,785		$	8,441	$	—	$	1,646,226
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	2,841		$	—	$	—	$	2,841

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

The following is a reconcilation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	BALANCE AS OF 3/31/12 (000S)		REALIZED GAINS (000S)		REALIZED LOSSES (000S)			CHANGE IN UNREA LIZED APPRE CIATION (000S)		CHANGE IN UNREA LIZED DEPRE CIATION (000S)		PURCHASES (000S)		SALES (000S)			TRANS FERS INTO LEVEL 3 (000S)		TRANS FERS OUT OF LEVEL 3 (000S)		BALANCE AS OF 6/30/12 (000S)
Common Stock
Biotechnology	$	173	$	—	$	(1,161	)	$	1,033	$	—	$	—	$	(45	)	$	—	$	—	$	—

There was no change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at June 30, 2012.

EQUITY FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

TECHNOLOGY FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 98.1%
Biotechnology - 3.7%
Biogen Idec, Inc.*		11,313	$	1,633
Celgene Corp.*		12,933		830
Dynavax Technologies Corp.*		106,395		460
				2,923
Commercial Services - 1.7%
Global Payments, Inc.		12,350		534
Western Union (The) Co.		48,656		819
				1,353
Computers - 23.2%
Accenture PLC, Class A		19,735		1,186
Apple, Inc.*		6,937		4,051
Cognizant Technology Solutions Corp., Class A*		36,185		2,171
EMC Corp.*		66,893		1,715
Fortinet, Inc.*		53,452		1,241
Fusion-io, Inc.*		28,092		587
Hewlett-Packard Co.		29,124		586
International Business Machines Corp.		5,764		1,127
MICROS Systems, Inc.*		17,802		911
NetApp, Inc.*		22,558		718
Riverbed Technology, Inc.*		48,887		790
SanDisk Corp.*		37,855		1,381
Teradata Corp.*		28,002		2,016
				18,480
Electronics - 1.5%
FEI Co.*		24,173		1,156
Healthcare - Products - 1.5%
Intuitive Surgical, Inc.*		2,087		1,156
Internet - 12.1%
Amazon.com, Inc.*		3,300		754
F5 Networks, Inc.*		13,564		1,350
Google, Inc., Class A*		6,946		4,029
LinkedIn Corp., Class A*		6,108		649
OpenTable, Inc.*		18,986		855
Rackspace Hosting, Inc.*		17,639		775
TIBCO Software, Inc.*		40,707		1,218
				9,630
Pharmaceuticals - 2.4%
Allergan, Inc.		10,121		937
BioMarin Pharmaceutical, Inc.*		25,382		1,004
				1,941
Real Estate Investment Trusts - 1.4%
American Tower Corp.		16,200		1,132
Semiconductors - 18.8%
Altera Corp.		40,832		1,382
Analog Devices, Inc.		27,104		1,021
ARM Holdings PLC ADR		59,904		1,425
ASML Holding N.V. (Registered)		22,373		1,150
Broadcom Corp., Class A*		37,439		1,265
Intel Corp.		35,305		941
KLA-Tencor Corp.		20,850		1,027
Linear Technology Corp.		27,358		857
Marvell Technology Group Ltd.		44,911		507
Microchip Technology, Inc.		37,242		1,232
ON Semiconductor Corp.*		131,665		935
QUALCOMM, Inc.		24,205		1,348
Texas Instruments, Inc.		27,608		792
Xilinx, Inc.		32,627		1,095
				14,977
Software - 20.4%
Activision Blizzard, Inc.		118,452		1,420
AVG Technologies N.V.*		49,300		641
Check Point Software Technologies Ltd.*		34,161		1,694
Citrix Systems, Inc.*		26,020		2,184
Informatica Corp.*		19,401		822
Microsoft Corp.		21,231		650
Nuance Communications, Inc.*		35,521		846
Oracle Corp.		68,743		2,042
QLIK Technologies, Inc.*		37,965		840
Red Hat, Inc.*		26,300		1,485
Salesforce.com, Inc.*		7,526		1,041
SolarWinds, Inc.*		26,391		1,150
VMware, Inc., Class A*		15,866		1,444
				16,259
Telecommunications - 11.4%
Amdocs Ltd.*		29,809		886
Aruba Networks, Inc.*		45,377		683
Cisco Systems, Inc.		111,359		1,912
Finisar Corp.*		33,506		501
JDS Uniphase Corp.*		51,199		563
Juniper Networks, Inc.*		49,701		811
LogMeIn, Inc.*		35,313		1,078
NICE Systems Ltd. ADR*		25,067		917
Polycom, Inc.*		90,762		955

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

TECHNOLOGY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 98.1% continued
Telecommunications - 11.4% continued
Procera Networks, Inc.*		32,405	$	788
				9,094
Total Common Stocks (Cost $75,328)				78,101
INVESTMENT COMPANIES - 2.0%
Northern Institutional Funds - Diversified Assets Portfolio(1) (2)		1,584,761		1,585
Total Investment Companies (Cost $1,585)				1,585
Total Investments - 100.1% (Cost $76,913)				79,686
Liabilities less Other Assets - (0.1)%				(59	)
NET ASSETS - 100.0%			$	79,627

(1) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $2,314,000 with net sales of approximately $729,000 during the three months ended June 30, 2012.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	77,825
Gross tax appreciation of investments	$	9,270
Gross tax depreciation of investments		(7,409	)
Net tax appreciation of investments	$	1,861

At June 30, 2012, the industry sectors for the Technology Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		1.0	%
Financials		1.4
Health Care		7.7
Information Technology		89.9
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Technology Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	78,101	(1)	$	—	$	—	$	78,101
Investment Companies		1,585			—		—		1,585
Total Investments	$	79,686		$	—	$	—	$	79,686

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5%
Brazil - 5.8%
All America Latina Logistica S.A.		202,528	$	855
Amil Participacoes S.A.		58,059		569
Anhanguera Educacional Participacoes S.A.		56,405		716
Banco Bradesco S.A. ADR		21,716		323
Banco do Brasil S.A.		259,444		2,512
Banco Santander Brasil S.A.		224,636		1,720
Banco Santander Brasil S.A. ADR		119,510		926
BM&FBovespa S.A.		805,061		4,060
BR Malls Participacoes S.A.		184,115		2,085
BR Properties S.A.		84,000		983
BRF - Brasil Foods S.A.		295,520		4,451
CCR S.A.		399,800		3,243
Centrais Eletricas Brasileiras S.A.		122,551		865
CETIP S.A. - Mercados Organizados		92,156		1,151
Cia de Saneamento Basico do Estado de Sao Paulo		51,257		1,942
Cia de Saneamento de Minas Gerais-COPASA		26,000		564
Cia Hering		62,761		1,192
Cia Siderurgica Nacional S.A.		328,290		1,858
Cielo S.A.		133,193		3,896
Cosan S.A. Industria e Comercio		55,147		844
CPFL Energia S.A.		108,520		1,360
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		133,572		984
Diagnosticos da America S.A.		105,942		693
Duratex S.A.		113,606		606
EcoRodovias Infraestrutura e Logistica S.A.		75,870		612
Embraer S.A.		250,562		1,649
Energias do Brasil S.A.		108,105		699
Fibria Celulose S.A.*		112,017		835
HRT Participacoes em Petroleo S.A.*		112,800		354
Hypermarcas S.A.*		155,758		917
JBS S.A.*		187,536		563
Light S.A.		27,500		337
Localiza Rent a Car S.A.		59,176		890
Lojas Renner S.A.		55,339		1,547
MMX Mineracao e Metalicos S.A.*		84,303		246
MPX Energia S.A.*		18,500		282
MRV Engenharia e Participacoes S.A.		141,793		653
Multiplan Empreendimentos Imobiliarios S.A.		33,920		828
Multiplus S.A.		21,800		520
Natura Cosmeticos S.A.		77,714		1,791
Obrascon Huarte Lain Brasil S.A.		53,900		475
Odontoprev S.A.		121,950		615
OGX Petroleo e Gas Participacoes S.A.*		585,323		1,603
Oi S.A.		108,332		513
Oi S.A. ADR		870		11
PDG Realty S.A. Empreendimentos e Participacoes		506,924		891
Petroleo Brasileiro S.A.		1,344,278		12,583
Petroleo Brasileiro S.A. ADR		18,373		333
Porto Seguro S.A.		52,608		448
Raia Drogasil S.A.		89,507		896
Redecard S.A.		152,524		2,495
Souza Cruz S.A.		173,140		2,515
Sul America S.A.		50,252		393
Tim Participacoes S.A.		381,036		2,087
Totvs S.A.		50,455		972
Tractebel Energia S.A.		73,638		1,350
Vale S.A.		571,362		11,365
Vale S.A. ADR		17,008		338
				91,004
Chile - 1.8%
AES Gener S.A.		1,107,946		638
Aguas Andinas S.A., Class A		1,047,150		648
Banco de Chile		7,966,366		1,118
Banco de Credito e Inversiones		14,183		882
Banco Santander Chile		29,669,684		2,212
CAP S.A.		33,858		1,247
Cencosud S.A.		407,687		2,244
Cia Cervecerias Unidas S.A.		50,608		636
Colbun S.A.*		3,558,512		988
Corpbanca		47,226,117		595
E.CL S.A.		241,078		575
Empresa Nacional de Electricidad S.A. ADR		3,800		194
Empresa Nacional de Electricidad S.A.		1,366,958		2,319
Empresas CMPC S.A.		502,367		1,996
Empresas COPEC S.A.		204,779		3,022
Enersis S.A.		5,432,903		2,045
Enersis S.A. ADR		9,024		169
ENTEL Chile S.A.		53,361		1,012
Latam Airlines Group S.A.		76,193		1,993
Latam Airlines Group S.A. ADR		8,335		218
Latam Airlines Group S.A. BDR*		30,812		804
S.A.C.I. Falabella		217,671		1,989
Sociedad Quimica y Minera de Chile S.A. ADR		3,193		178

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
Chile - 1.8% continued
Vina Concha y Toro S.A.		187,100	$	366
				28,088
China - 17.5%
Agile Property Holdings Ltd.		630,000		818
Agricultural Bank of China Ltd., Class H		9,711,367		3,921
Air China Ltd., Class H		818,705		485
Aluminum Corp. of China Ltd., Class H*		1,787,435		771
Angang Steel Co. Ltd., Class H*		478,798		265
Anhui Conch Cement Co. Ltd., Class H		559,575		1,535
Anta Sports Products Ltd.		407,432		248
AviChina Industry & Technology Co. Ltd., Class H		918,313		306
Bank of China Ltd., Class H		33,986,652		13,005
Bank of Communications Co. Ltd., Class H		3,283,117		2,223
BBMG Corp., Class H		486,841		342
Beijing Capital International Airport Co. Ltd., Class H		864,000		528
Beijing Enterprises Holdings Ltd.		231,271		1,396
Belle International Holdings Ltd.		2,099,000		3,590
Bosideng International Holdings Ltd.		1,265,677		327
Brilliance China Automotive Holdings Ltd.*		1,129,944		995
Byd Co. Ltd., Class H*		237,199		454
China Agri-Industries Holdings Ltd.		737,917		406
China BlueChemical Ltd., Class H		784,851		449
China Citic Bank Corp. Ltd., Class H		3,353,286		1,730
China Coal Energy Co. Ltd., Class H		1,857,232		1,542
China Communications Construction Co. Ltd., Class H		1,998,287		1,770
China Communications Services Corp. Ltd., Class H*		1,065,035		528
China Construction Bank Corp., Class H		32,570,410		22,457
China COSCO Holdings Co. Ltd., Class H*		1,189,721		533
China Everbright Ltd.		393,110		560
China Gas Holdings Ltd.		1,399,495		699
China International Marine Containers Group Co. Ltd., Class B		284,800		365
China Life Insurance Co. Ltd., Class H		3,359,544		8,822
China Longyuan Power Group Corp., Class H		978,473		644
China Mengniu Dairy Co. Ltd.		556,000		1,470
China Merchants Bank Co. Ltd., Class H		1,761,357		3,327
China Merchants Holdings International Co. Ltd.		504,601		1,543
China Minsheng Banking Corp. Ltd., Class H		2,336,927		2,090
China Mobile Ltd.		2,719,712		29,891
China National Building Material Co. Ltd., Class H		1,298,000		1,413
China Oilfield Services Ltd., Class H		695,558		1,008
China Overseas Land & Investment Ltd.		1,840,475		4,318
China Pacific Insurance Group Co. Ltd., Class H		782,937		2,552
China Petroleum & Chemical Corp., Class H		7,569,835		6,786
China Railway Construction Corp. Ltd., Class H		890,000		746
China Railway Group Ltd., Class H		1,770,827		746
China Resources Cement Holdings Ltd.		894,720		524
China Resources Enterprise Ltd.		541,628		1,619
China Resources Gas Group Ltd.		328,000		566
China Resources Land Ltd.		919,756		1,899
China Resources Power Holdings Co. Ltd.		856,900		1,764
China Rongsheng Heavy Industries Group Holdings Ltd.		1,420,000		332
China Shanshui Cement Group Ltd.		824,907		568
China Shenhua Energy Co. Ltd., Class H		1,535,136		5,424
China Shipping Container Lines Co. Ltd., Class H*		1,693,695		411
China Shipping Development Co. Ltd., Class H		570,095		268
China Southern Airlines Co. Ltd., Class H		809,995		359
China State Construction International Holdings Ltd.		636,534		602
China Taiping Insurance Holdings Co. Ltd.*		384,660		624
China Telecom Corp. Ltd., Class H		6,252,339		2,743
China Unicom Hong Kong Ltd.		2,128,494		2,674
China Vanke Co. Ltd., Class B*		597,172		791
China Yurun Food Group Ltd.		619,148		545
China ZhengTong Auto Services Holdings Ltd.*		384,500		204
China Zhongwang Holdings Ltd.*		722,000		278
Chongqing Rural Commercial Bank, Class H		1,078,434		438
Citic Pacific Ltd.		579,363		882
CITIC Securities Co. Ltd., Class H		265,500		562
CNOOC Ltd.		8,062,433		16,264
COSCO Pacific Ltd.		738,000		1,011
Country Garden Holdings Co. Ltd.*		2,067,472		818
CSG Holding Co. Ltd., Class B		336,300		226
CSR Corp. Ltd., Class H		875,669		685
Dah Chong Hong Holdings Ltd.		365,000		327

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
China - 17.5% continued
Daphne International Holdings Ltd.		409,100	$	417
Datang International Power Generation Co. Ltd., Class H		1,329,875		524
Dongfang Electric Corp. Ltd., Class H		148,800		304
Dongfeng Motor Group Co. Ltd., Class H		1,223,169		1,907
Dongyue Group		479,499		225
ENN Energy Holdings Ltd.		337,279		1,186
Evergrande Real Estate Group Ltd.		2,350,116		1,215
Far East Horizon Ltd.		594,000		421
Fosun International Ltd.		708,660		370
Franshion Properties China Ltd.		1,445,791		439
GCL-Poly Energy Holdings Ltd.		3,490,675		769
Geely Automobile Holdings Ltd.		1,708,423		605
Golden Eagle Retail Group Ltd.		308,675		633
GOME Electrical Appliances Holding Ltd.		4,567,874		609
Great Wall Motor Co. Ltd. Class H		468,432		941
Guangdong Investment Ltd.		1,132,514		818
Guangzhou Automobile Group Co. Ltd., Class H*		1,005,760		847
Guangzhou R&F Properties Co. Ltd., Class H		441,214		586
Haier Electronics Group Co. Ltd.*		381,000		460
Hengan International Group Co. Ltd.		333,898		3,247
Hengdeli Holdings Ltd.		981,279		315
Huabao International Holdings Ltd.		928,000		457
Huaneng Power International, Inc., Class H		1,450,501		1,096
Industrial & Commercial Bank of China, Class H		29,394,515		16,437
Inner Mongolia Yitai Coal Co., Class B*		271,488		1,535
Intime Department Store Group Co. Ltd.		457,635		455
Jiangsu Expressway Co. Ltd., Class H		542,000		509
Jiangxi Copper Co. Ltd., Class H		628,000		1,394
Kingboard Chemical Holdings Ltd.		270,757		527
Kunlun Energy Co. Ltd.		1,447,230		2,323
Lee & Man Paper Manufacturing Ltd.		846,248		342
Lenovo Group Ltd.		2,810,000		2,398
Longfor Properties Co. Ltd.		583,231		916
Lonking Holdings Ltd.		848,873		205
Metallurgical Corp. of China Ltd., Class H*		1,258,284		270
Minmetals Resources Ltd.*		699,488		295
Nine Dragons Paper Holdings Ltd.		722,923		408
Parkson Retail Group Ltd.		638,500		571
PetroChina Co. Ltd., Class H		9,523,438		12,393
PICC Property & Casualty Co. Ltd., Class H		1,225,733		1,389
Ping An Insurance Group Co., Class H		777,453		6,274
Poly Hong Kong Investments Ltd.*		881,842		479
Sany Heavy Equipment International Holdings Co. Ltd.		417,877		225
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		732,116		812
Shanghai Electric Group Co. Ltd., Class H		1,292,000		532
Shanghai Industrial Holdings Ltd.		245,043		651
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		217,000		272
Shimao Property Holdings Ltd.		625,903		969
Shougang Fushan Resources Group Ltd.		1,305,933		339
Shui On Land Ltd.		1,149,348		470
Sihuan Pharmaceutical Holdings Group Ltd.		811,063		295
Sino-Ocean Land Holdings Ltd.		1,328,038		663
Sinopec Shanghai Petrochemical Co. Ltd., Class H		1,020,670		300
Sinopharm Group Co. Ltd., Class H		355,983		986
Soho China Ltd.		950,278		728
Sun Art Retail Group Ltd.		861,000		946
Tencent Holdings Ltd.		456,914		13,493
Tingyi Cayman Islands Holding Corp.		880,435		2,270
Tsingtao Brewery Co. Ltd., Class H		133,767		765
Uni-President China Holdings Ltd.		487,000		454
Want Want China Holdings Ltd.		2,692,870		3,331
Weichai Power Co. Ltd., Class H*		184,128		736
Wumart Stores, Inc., Class H		238,470		484
Yanzhou Coal Mining Co. Ltd., Class H*		883,138		1,355
Yingde Gases		402,700		367
Yuexiu Property Co. Ltd.		2,273,826		558
Zhaojin Mining Industry Co. Ltd., Class H		397,774		524
Zhejiang Expressway Co. Ltd., Class H		627,294		415
Zhongsheng Group Holdings Ltd.		254,500		310
Zhuzhou CSR Times Electric Co. Ltd., Class H		202,930		556
Zijin Mining Group Co. Ltd., Class H		2,732,162		926
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H*		612,147		787

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
China - 17.5% continued
ZTE Corp., Class H		282,898	$	552
				274,594
Colombia - 1.0%
Almacenes Exito S.A.		90,803		1,504
Bancolombia S.A.		103,362		1,564
Bancolombia S.A. ADR		8,252		510
Bolsa de Valores de Colombia		368,721		507
Cementos Argos S.A.		182,058		715
Corp. Financiera Colombiana S.A.		33,327		566
Ecopetrol S.A.		2,227,905		6,229
Grupo de Inversiones Suramericana S.A.		105,644		1,831
Interconexion Electrica S.A. ESP		175,066		1,139
Inversiones Argos S.A.		131,186		1,214
				15,779
Czech Republic - 0.3%
CEZ A.S.		73,077		2,525
Komercni Banka A.S.		6,885		1,196
Telefonica Czech Republic A.S.		50,825		971
				4,692
Egypt - 0.3%
Commercial International Bank Egypt S.A.E.		256,433		1,098
Egyptian Financial Group-Hermes Holding S.A.E.*		158,509		266
Egyptian Kuwaiti Holding Co. S.A.E.		296,586		344
National Societe Generale Bank S.A.E.		43,517		208
Orascom Construction Industries		42,653		1,750
Orascom Telecom Holding S.A.E.*		1,187,439		596
Orascom Telecom Media And Technology Holding S.A.E.*		1,158,515		283
Talaat Moustafa Group*		405,263		293
Telecom Egypt Co.		150,599		330
				5,168
Hungary - 0.3%
Magyar Telekom Telecommunications PLC		217,336		427
MOL Hungarian Oil and Gas PLC		18,831		1,363
OTP Bank PLC		101,198		1,610
Richter Gedeon Nyrt.		6,312		1,041
				4,441
India - 6.3%
ACC Ltd.		23,065		527
Adani Enterprises Ltd.		97,102		390
Adani Ports and Special Economic Zone		185,049		403
Aditya Birla Nuvo Ltd.		18,052		262
Ambuja Cements Ltd.		278,581		874
Asian Paints Ltd.		13,014		908
Axis Bank Ltd.		102,354		1,880
Bajaj Auto Ltd.*		39,238		1,111
Bank of Baroda		35,542		470
Bank of India		52,083		326
Bharat Heavy Electricals Ltd.		265,663		1,115
Bharat Petroleum Corp. Ltd.		39,606		529
Bharti Airtel Ltd.		257,236		1,414
Cairn India Ltd.*		103,251		572
Canara Bank		38,828		288
Cipla Ltd.		155,996		887
Coal India Ltd.		227,736		1,417
Dabur India Ltd.		194,883		400
DLF Ltd.		185,478		665
Dr. Reddy’s Laboratories Ltd.		33,772		1,000
Dr. Reddy’s Laboratories Ltd. ADR		12,305		365
GAIL India Ltd.		172,357		1,091
GMR Infrastructure Ltd.*		424,599		191
Godrej Consumer Products Ltd.		53,763		561
HCL Technologies Ltd.		36,565		312
HDFC Bank Ltd.		592,353		6,007
HDFC Bank Ltd. ADR		31,500		1,027
Hero Motocorp Ltd.		17,714		686
Hindalco Industries Ltd.		467,488		1,014
Hindustan Unilever Ltd.		399,971		3,264
Housing Development Finance Corp.		491,767		5,782
ICICI Bank Ltd.		146,549		2,381
ICICI Bank Ltd. ADR		22,771		738
Idea Cellular Ltd.*		294,283		402
Infosys Ltd.		167,213		7,575
Infosys Ltd. ADR		27,237		1,227
Infrastructure Development Finance Co. Ltd.		463,379		1,141
ITC Ltd.		986,238		4,589
Jaiprakash Associates Ltd.		435,520		582
Jindal Steel & Power Ltd.		168,762		1,430
JSW Steel Ltd.		35,362		434
Kotak Mahindra Bank Ltd.		123,914		1,323
Larsen & Toubro Ltd.		93,787		2,366
LIC Housing Finance Ltd.		136,916		660
Lupin Ltd.		65,461		632
Mahindra & Mahindra Ltd.		138,584		1,766
Maruti Suzuki India Ltd.		15,582		328

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
India - 6.3% continued
NTPC Ltd.		262,631	$	753
Oil & Natural Gas Corp. Ltd.		347,139		1,779
Piramal Healthcare Ltd.		29,579		281
Power Finance Corp. Ltd.		115,520		370
Power Grid Corp. of India Ltd.		504,834		1,030
Ranbaxy Laboratories Ltd.*		57,496		508
Reliance Capital Ltd.		43,663		283
Reliance Communications Ltd.		225,503		256
Reliance Industries Ltd.		476,558		6,332
Reliance Industries Ltd. GDR(1) (2)		57,426		1,526
Reliance Infrastructure Ltd.		47,241		477
Reliance Power Ltd.*		247,612		477
Rural Electrification Corp. Ltd.		131,490		451
Satyam Computer Services Ltd.*		292,427		414
Sesa Goa Ltd.		153,478		532
Shriram Transport Finance Co. Ltd.		56,763		538
Siemens Ltd.		29,690		394
State Bank of India		60,329		2,353
Sterlite Industries India Ltd.		607,935		1,132
Sun Pharmaceutical Industries Ltd.		139,628		1,594
Tata Consultancy Services Ltd.		212,251		4,878
Tata Motors Ltd.		668,143		2,914
Tata Power Co. Ltd.		441,468		834
Tata Steel Ltd.		138,964		1,100
Titan Industries Ltd.		94,140		379
Ultratech Cement Ltd.		32,702		895
Unitech Ltd.*		576,586		230
United Phosphorus Ltd.		101,953		231
United Spirits Ltd.		38,995		482
Wipro Ltd.		199,203		1,433
Wipro Ltd. ADR		22,616		208
Zee Entertainment Enterprises Ltd.		214,284		564
				98,940
Indonesia - 2.6%
Adaro Energy Tbk PT		6,531,720		1,021
Astra Agro Lestari Tbk PT		182,037		390
Astra International Tbk PT		9,135,760		6,678
Bank Central Asia Tbk PT		5,520,192		4,307
Bank Danamon Indonesia Tbk PT		1,507,443		968
Bank Mandiri Persero Tbk PT		4,160,455		3,219
Bank Negara Indonesia Persero Tbk PT		3,334,409		1,370
Bank Rakyat Indonesia Persero Tbk PT		4,945,158		3,383
Bumi Resources Tbk PT		6,574,712		792
Charoen Pokphand Indonesia Tbk PT		3,338,935		1,220
Gudang Garam Tbk PT		217,415		1,439
Indo Tambangraya Megah Tbk PT		180,278		694
Indocement Tunggal Prakarsa Tbk PT		664,803		1,231
Indofood Sukses Makmur Tbk PT		1,990,371		1,031
Indosat Tbk PT		599,347		277
Jasa Marga Persero Tbk PT		929,000		537
Kalbe Farma Tbk PT		2,067,416		832
Perusahaan Gas Negara Persero Tbk PT		4,916,612		1,856
Semen Gresik Persero Tbk PT		1,336,255		1,613
Tambang Batubara Bukit Asam Persero Tbk PT		367,500		580
Telekomunikasi Indonesia Persero Tbk PT		4,538,673		3,950
Unilever Indonesia Tbk PT		687,528		1,682
United Tractors Tbk PT		756,071		1,740
Vale Indonesia Tbk PT		1,096,623		314
XL Axiata Tbk PT		758,360		495
				41,619
Malaysia - 3.5%
AirAsia Bhd.		571,700		647
Alliance Financial Group Bhd.		451,500		594
AMMB Holdings Bhd.		750,637		1,491
Axiata Group Bhd.		1,147,025		1,980
Berjaya Corp. Bhd.		1,125,342		279
Berjaya Sports Toto Bhd.		328,157		446
British American Tobacco Malaysia Bhd.		51,600		913
Bumi Armada Bhd.		525,800		665
CIMB Group Holdings Bhd.		2,182,400		5,222
DiGi.Com Bhd.		1,403,100		1,883
Gamuda Bhd.		751,200		830
Genting Bhd.		920,500		2,777
Genting Malaysia Bhd.		1,338,200		1,524
Genting Plantations Bhd.		101,600		299
Hong Leong Bank Bhd.		255,440		1,003
Hong Leong Financial Group Bhd.		93,500		365
IJM Corp. Bhd.		534,020		848
IOI Corp. Bhd.		1,449,940		2,378
Kuala Lumpur Kepong Bhd.		216,850		1,573
Lafarge Malayan Cement Bhd.		187,600		432
Malayan Banking Bhd.		1,534,884		4,215
Malaysia Airports Holdings Bhd.		249,913		446
Malaysia Marine and Heavy Engineering Holdings Bhd.		211,547		354
Maxis Bhd.		841,851		1,698
MISC Bhd.		509,560		742

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
Malaysia - 3.5% continued
MMC Corp. Bhd.		335,875	$	276
Parkson Holdings Bhd.		267,543		389
Petronas Chemicals Group Bhd.		1,261,600		2,579
Petronas Dagangan Bhd.		112,100		751
Petronas Gas Bhd.		267,100		1,517
PPB Group Bhd.		215,000		1,082
Public Bank Bhd.		9,913		43
Public Bank Bhd. (Registered)		466,700		2,025
RHB Capital Bhd.		297,297		695
Sapurakencana Petroleum Bhd.*		1,011,600		701
Sime Darby Bhd.		1,218,315		3,802
SP Setia Bhd.		213,600		256
Telekom Malaysia Bhd.		486,700		867
Tenaga Nasional Bhd.		1,229,450		2,618
UEM Land Holdings Bhd.*		680,217		448
UMW Holdings Bhd.		239,000		692
YTL Corp. Bhd.		2,293,280		1,465
YTL Power International Bhd.		968,199		538
				54,348
Mexico - 4.9%
Alfa S.A.B. de C.V., Series A		128,818		2,059
America Movil S.A.B. de C.V., Series L		17,834,921		23,315
Arca Continental S.A.B. de C.V.		146,484		850
Cemex S.A.B. de C.V., Series CPO*		4,763,877		3,207
Coca-Cola Femsa S.A.B. de C.V., Series L		184,922		2,421
Compartamos S.A.B. de C.V.		462,772		541
El Puerto de Liverpool S.A.B. de C.V., Series C1		87,400		734
Fomento Economico Mexicano S.A.B. de C.V., Series UBD		878,267		7,842
Grupo Aeroportuario del Pacifico S.A.B. de C.V., Series B		139,252		552
Grupo Bimbo S.A.B. de C.V., Series A		741,628		1,823
Grupo Carso S.A.B. de C.V., Series A1		259,706		845
Grupo Financiero Banorte S.A.B. de C.V., Series O		840,259		4,342
Grupo Financiero Inbursa S.A., Series O		899,884		2,023
Grupo Mexico S.A.B. de C.V., Series B		1,728,036		5,136
Grupo Modelo S.A.B. de C.V., Series C		285,905		2,529
Grupo Televisa S.A.B., Series CPO		1,162,835		5,007
Industrias Penoles S.A.B. de C.V.		62,524		2,681
Kimberly-Clark de Mexico S.A.B. de C.V., Series A		704,127		1,379
Mexichem S.A.B. de C.V.		330,406		1,421
Minera Frisco S.A.B. de C.V., Series A1*		286,906		1,211
Wal-Mart de Mexico S.A.B. de C.V., Series V		2,403,588		6,430
				76,348
Morocco - 0.1%
Attijariwafa Bank		13,241		508
Douja Promotion Groupe Addoha S.A.		55,606		427
Maroc Telecom S.A.		39,636		502
				1,437
Peru - 0.5%
Cia de Minas Buenaventura S.A. ADR		85,706		3,255
Credicorp Ltd.		30,552		3,846
Volcan Cia Minera SAA, Class B		923,861		1,040
				8,141
Philippines - 0.9%
Aboitiz Equity Ventures, Inc.		874,249		1,023
Aboitiz Power Corp.		837,544		681
Alliance Global Group, Inc.		1,880,424		520
Ayala Corp.		78,707		882
Ayala Land, Inc.		2,359,680		1,214
Bank of the Philippine Islands		314,852		559
BDO Unibank, Inc.		647,076		978
DMCI Holdings, Inc.		359,080		486
Energy Development Corp.		3,442,250		493
Globe Telecom, Inc.		14,615		388
International Container Terminal Services, Inc.		352,120		617
Jollibee Foods Corp.		190,573		473
Manila Electric Co.		101,730		614
Metropolitan Bank & Trust		186,652		411
Philippine Long Distance Telephone Co.		19,460		1,225
San Miguel Corp.		209,680		568
SM Investments Corp.		96,897		1,684
SM Prime Holdings, Inc.		3,146,313		979
Universal Robina Corp.		374,610		564
				14,359
Poland - 1.4%
Asseco Poland S.A.		31,669		465
Bank Handlowy w Warszawie S.A.		15,134		368
Bank Millennium S.A.*		185,589		206
Bank Pekao S.A.		53,084		2,421
BRE Bank S.A.*		6,681		596
Cyfrowy Polsat S.A.*		90,837		399
Enea S.A.		48,135		229

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
Poland - 1.4% continued
Eurocash S.A.		31,203	$	384
Grupa Lotos S.A.*		28,594		240
Jastrzebska Spolka Weglowa S.A.*		16,305		491
KGHM Polska Miedz S.A.		62,972		2,751
PGE S.A.		336,535		1,965
Polski Koncern Naftowy Orlen S.A.*		144,731		1,629
Polskie Gornictwo Naftowe i Gazownictwo S.A.		796,842		994
Powszechna Kasa Oszczednosci Bank Polski S.A.		281,100		2,922
Powszechny Zaklad Ubezpieczen S.A.		25,240		2,536
Synthos S.A.		240,849		430
Tauron Polska Energia S.A.		477,316		657
Telekomunikacja Polska S.A.		330,676		1,546
TVN S.A.		69,645		183
				21,412
Russia - 5.6%
Federal Grid Co. Unified Energy System JSC*		141,364,477		854
Federal Hydrogenerating Co. JSC		29,821,745		726
Federal Hydrogenerating Co. JSC ADR		225,569		541
Gazprom OAO		1,284,773		6,100
Gazprom OAO ADR (London Exchange)		1,747,410		16,541
Gazprom OAO ADR (OTC Exchange)		15,600		148
IDGC Holding JSC*		7,786,000		424
Inter Rao Ues OAO*		822,164,281		711
LSR Group OJSC GDR (Registered)		93,140		400
Lukoil OAO		67,473		3,754
Lukoil OAO ADR (London Exchange)		147,985		8,273
Lukoil OAO ADR (OTC Exchange)		14,973		840
Magnit OJSC		2,111		259
Magnit OJSC GDR (Registered)		108,591		3,274
Mechel		1,951		12
Mechel ADR		62,356		402
MMC Norilsk Nickel OJSC		13,129		2,179
MMC Norilsk Nickel OJSC ADR (London Exchange)		3,947		65
MMC Norilsk Nickel OJSC ADR (OTC Exchange)		80,388		1,336
Mobile Telesystems OJSC ADR		233,650		4,019
NovaTek OAO GDR (Registered)		41,147		4,381
Novolipetsk Steel OJSC GDR (Registered)		29,094		479
Rosneft Oil Co.		326,745		2,061
Rosneft Oil Co. GDR (Registered)		391,021		2,454
Rostelecom OJSC		531,804		1,913
Sberbank of Russia		3,844,860		10,256
Sberbank of Russia (OTC Exchange)		56,000		149
Severstal OAO		19,603		229
Severstal OAO GDR (Registered)		71,249		840
Sistema JSFC GDR (Registered)		54,497		1,020
Surgutneftegaz OJSC		1,288,823		1,064
Surgutneftegaz OJSC ADR (London Exchange)		74,644		620
Surgutneftegaz OJSC ADR (OTC Exchange)		120,622		1,006
Tatneft		263,154		1,464
Tatneft ADR (Frankfurt Exchange)		1,663		55
Tatneft ADR (London Exchange)		61,329		2,067
TMK OAO GDR (Registered)		25,900		312
Uralkali OJSC		515,219		3,952
Uralkali OJSC GDR (Registered)		22,790		879
VTB Bank OJSC		846,000,422		1,492
VTB Bank OJSC GDR(1) (2)		11,036		39
VTB Bank OJSC GDR (Registered)		154,552		548
				88,138
South Africa - 7.7%
ABSA Group Ltd.		130,046		2,254
African Bank Investments Ltd.		327,278		1,455
African Rainbow Minerals Ltd.		48,426		986
Anglo American Platinum Ltd.		30,424		1,811
AngloGold Ashanti Ltd.		172,593		5,913
ArcelorMittal South Africa Ltd.		78,878		506
Aspen Pharmacare Holdings Ltd.*		127,805		1,972
Assore Ltd.		15,714		575
Aveng Ltd.		181,343		795
Barloworld Ltd.		99,138		983
Bidvest Group Ltd.		132,899		2,968
Discovery Holdings Ltd.		133,564		851
Exxaro Resources Ltd.		56,511		1,319
FirstRand Ltd.		1,400,174		4,535
Foschini Group (The) Ltd.		92,191		1,446
Gold Fields Ltd.		327,220		4,177
Growthpoint Properties Ltd.		731,434		2,055
Harmony Gold Mining Co. Ltd.		174,493		1,637
Impala Platinum Holdings Ltd.		238,628		3,967
Imperial Holdings Ltd.		80,185		1,691
Investec Ltd.		107,246		631
Kumba Iron Ore Ltd.		36,489		2,460

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
South Africa - 7.7% continued
Liberty Holdings Ltd.		50,652	$	538
Life Healthcare Group Holdings Ltd.		422,648		1,610
Massmart Holdings Ltd.		48,647		1,007
MMI Holdings Ltd.		439,744		969
Mr Price Group Ltd.		106,987		1,465
MTN Group Ltd.		765,916		13,233
Naspers Ltd., Class N		176,099		9,413
Nedbank Group Ltd.		92,047		1,962
Netcare Ltd.		394,686		772
Northam Platinum Ltd.		109,616		314
Pick n Pay Stores Ltd.		107,574		578
Pretoria Portland Cement Co. Ltd.		233,245		765
Redefine Properties Ltd.		1,210,188		1,269
Remgro Ltd.		195,870		3,159
Reunert Ltd.		81,894		682
RMB Holdings Ltd.		318,169		1,363
RMI Holdings		301,353		641
Sanlam Ltd.		807,210		3,539
Sappi Ltd.*		243,586		819
Sasol Ltd.		247,101		10,390
Shoprite Holdings Ltd.		193,182		3,568
Spar Group (The) Ltd.		77,578		1,080
Standard Bank Group Ltd.		538,249		7,299
Steinhoff International Holdings Ltd.*		518,651		1,569
Tiger Brands Ltd.		73,442		2,205
Truworths International Ltd.		197,135		2,161
Vodacom Group Ltd.		167,085		1,904
Woolworths Holdings Ltd.		338,083		2,082
				121,343
South Korea - 14.3%
Amorepacific Corp.		1,449		1,348
BS Financial Group, Inc.		78,792		879
Celltrion, Inc.		47,300		1,264
Cheil Industries, Inc.		21,287		1,874
CJ CheilJedang Corp.		3,537		1,010
CJ Corp.		6,643		464
Daelim Industrial Co. Ltd.		12,552		1,004
Daewoo Engineering & Construction Co. Ltd.*		45,850		353
Daewoo International Corp.		15,898		460
Daewoo Securities Co. Ltd.		74,158		690
Daewoo Shipbuilding & Marine Engineering Co. Ltd.		43,190		1,004
DGB Financial Group, Inc.		60,670		739
Dongbu Insurance Co. Ltd.		19,206		709
Dongkuk Steel Mill Co. Ltd.		16,380		221
Doosan Corp.		3,940		449
Doosan Heavy Industries & Construction Co. Ltd.		21,570		1,095
Doosan Infracore Co. Ltd.*		45,800		745
E-Mart Co. Ltd.		9,412		2,067
GS Engineering & Construction Corp.		16,100		1,087
GS Holdings		23,093		1,064
Hana Financial Group, Inc.		104,320		3,330
Hankook Tire Co. Ltd.		41,180		1,636
Hanwha Chem Corp.		38,152		713
Hanwha Corp.		19,845		494
Honam Petrochemical Corp.		6,459		1,355
Hyosung Corp.		10,466		505
Hyundai Department Store Co. Ltd.		6,866		858
Hyundai Development Co.		25,660		547
Hyundai Engineering & Construction Co. Ltd.		30,144		1,733
Hyundai Glovis Co. Ltd.		5,924		1,139
Hyundai Heavy Industries Co. Ltd.		18,903		4,308
Hyundai Hysco Co. Ltd.		14,228		512
Hyundai Marine & Fire Insurance Co. Ltd.		28,310		737
Hyundai Merchant Marine Co. Ltd.*		19,170		423
Hyundai Mipo Dockyard		5,012		524
Hyundai Mobis		30,770		7,449
Hyundai Motor Co.		69,622		14,283
Hyundai Securities Co. Ltd.		52,320		393
Hyundai Steel Co.		25,018		1,858
Hyundai Wia Corp.		6,972		1,039
Industrial Bank of Korea		74,010		833
Kangwon Land, Inc.		43,550		928
KB Financial Group, Inc.		165,894		5,403
KCC Corp.		1,935		473
Kia Motors Corp.		118,949		7,835
Korea Aerospace Industries Ltd.		15,470		400
Korea Electric Power Corp.*		115,596		2,588
Korea Exchange Bank*		116,670		833
Korea Gas Corp.		10,656		378
Korea Investment Holdings Co. Ltd.		17,360		582
Korea Life Insurance Co. Ltd.		79,790		448
Korea Zinc Co. Ltd.		3,828		1,299
Korean Air Lines Co. Ltd.*		16,455		728
KP Chemical Corp.		21,690		255
KT Corp.		11,689		309

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
South Korea - 14.3% continued
KT Corp. ADR		6,526	$	86
KT&G Corp.		49,721		3,526
Kumho Petro chemical Co. Ltd.		6,202		661
LG Chem Ltd.		20,957		5,420
LG Corp.		42,745		2,076
LG Display Co. Ltd.*		104,780		1,980
LG Electronics, Inc.		48,065		2,593
LG Household & Health Care Ltd.		4,218		2,273
LG Innotek Co. Ltd.*		4,565		361
LG Uplus Corp.		102,682		500
Lotte Confectionery Co. Ltd.		327		447
Lotte Shopping Co. Ltd.		4,586		1,252
LS Corp.		8,152		615
LS Industrial Systems Co. Ltd.		6,623		378
Mando Corp.		5,790		862
Mirae Asset Securities Co. Ltd.		10,175		278
NCSoft Corp.		6,886		1,650
NHN Corp.		18,505		4,058
OCI Co. Ltd.		6,988		1,396
Orion Corp.		1,613		1,339
POSCO		28,961		9,248
POSCO ADR		2,328		187
S1 Corp.		7,541		379
Samsung C&T Corp.		56,309		3,249
Samsung Card Co. Ltd.		18,992		531
Samsung Electro-Mechanics Co. Ltd.		26,924		2,523
Samsung Electronics Co. Ltd.		49,886		52,890
Samsung Engineering Co. Ltd.		13,513		2,145
Samsung Fire & Marine Insurance Co. Ltd.		15,994		3,167
Samsung Heavy Industries Co. Ltd.		72,810		2,412
Samsung Life Insurance Co. Ltd.		27,124		2,211
Samsung SDI Co. Ltd.		15,410		2,076
Samsung Securities Co. Ltd.		27,680		1,198
Samsung Techwin Co. Ltd.		16,858		1,150
Shinhan Financial Group Co. Ltd.		192,850		6,712
Shinsegae Co. Ltd.		3,121		576
SK C&C Co. Ltd.		10,180		954
SK Holdings Co. Ltd.		11,658		1,368
SK Hynix, Inc.*		235,120		4,970
SK Innovation Co. Ltd.		27,219		3,332
SK Networks Co. Ltd.		56,530		431
SK Telecom Co. Ltd.		3,253		355
SK Telecom Co. Ltd. ADR		10,300		125
S-Oil Corp.		20,280		1,631
STX Pan Ocean Co. Ltd.		45,220		181
Woongjin Coway Co. Ltd.		24,550		765
Woori Finance Holdings Co. Ltd.		163,390		1,794
Woori Investment & Securities Co. Ltd.		58,907		578
Yuhan Corp.		3,696		432
				224,975
Taiwan - 10.8%
Acer, Inc.		1,101,796		1,152
Advanced Semiconductor Engineering, Inc.		2,400,568		1,958
Advantech Co. Ltd.		121,285		404
Airtac International Group		37,000		214
Asia Cement Corp.		855,599		1,078
Asustek Computer, Inc.		305,546		2,826
AU Optronics Corp.		3,387,215		1,386
Capital Securities Corp.		798,602		269
Catcher Technology Co. Ltd.		253,111		1,713
Cathay Financial Holding Co. Ltd.		3,032,548		3,003
Chang Hwa Commercial Bank		1,847,230		982
Cheng Shin Rubber Industry Co. Ltd.		725,847		1,836
Cheng Uei Precision Industry Co. Ltd.		168,205		334
Chicony Electronics Co. Ltd.		198,560		368
Chimei Innolux Corp.*		2,315,416		967
China Airlines Ltd.		1,176,307		530
China Development Financial Holding Corp.		5,884,868		1,405
China Life Insurance Co. Ltd.		792,880		749
China Motor Corp.		251,000		230
China Petrochemical Development Corp.		624,700		529
China Steel Corp.		5,099,379		4,797
Chinatrust Financial Holding Co. Ltd.		4,672,999		2,690
Chunghwa Telecom Co. Ltd.		1,675,493		5,277
Chunghwa Telecom Co. Ltd. ADR		4,048		127
Clevo Co.		196,782		286
Compal Electronics, Inc.		1,882,759		1,733
CTCI Corp.		256,000		478
Delta Electronics, Inc.		812,521		2,517
E Ink Holdings, Inc.		357,095		394
E.Sun Financial Holding Co. Ltd.		1,652,897		856
Epistar Corp.		329,351		736
Eternal Chemical Co. Ltd.		310,207		233
Eva Airways Corp.		749,271		457
Evergreen Marine Corp. Taiwan Ltd.		753,795		411
Everlight Electronics Co. Ltd.		157,568		272

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
Taiwan - 10.8% continued
Far Eastern Department Stores Co. Ltd.		405,894	$	385
Far Eastern New Century Corp.		1,328,548		1,415
Far EasTone Telecommunications Co. Ltd.		720,345		1,561
Farglory Land Development Co. Ltd.		156,000		278
Feng Hsin Iron & Steel Co.*		192,160		323
First Financial Holding Co. Ltd.		2,766,806		1,624
Formosa Chemicals & Fibre Corp.		1,413,320		3,740
Formosa International Hotels Corp.		15,805		170
Formosa Petrochemical Corp.		514,487		1,400
Formosa Plastics Corp.		1,797,349		4,833
Formosa Taffeta Co. Ltd.		335,827		302
Foxconn Technology Co. Ltd.		317,728		1,164
Fubon Financial Holding Co. Ltd.		2,441,123		2,464
Giant Manufacturing Co. Ltd.		126,483		589
Highwealth Construction Corp.		179,000		282
Hiwin Technologies Corp.		74,860		769
Hon Hai Precision Industry Co. Ltd.		4,102,414		12,370
Hotai Motor Co. Ltd.		110,900		722
HTC Corp.		329,220		4,329
Hua Nan Financial Holdings Co. Ltd.		2,225,267		1,235
Inotera Memories, Inc.*		819,246		191
Inventec Corp.		995,473		325
Kinsus Interconnect Technology Corp.		118,587		328
Largan Precision Co. Ltd.		45,835		962
LCY Chemical Corp.		193,010		311
Lite-On Technology Corp.		939,858		1,186
Macronix International		1,500,975		476
MediaTek, Inc.		440,549		4,083
Mega Financial Holding Co. Ltd.		3,557,608		2,637
Motech Industries, Inc.		137,229		190
MStar Semiconductor, Inc.		179,317		1,211
Nan Kang Rubber Tire Co. Ltd.		208,722		293
Nan Ya Plastics Corp.		2,130,695		3,846
Nan Ya Printed Circuit Board Corp.		84,925		145
Novatek Microelectronics Corp.		232,850		721
Pegatron Corp.		713,594		945
Phison Electronics Corp.		55,608		455
Pou Chen Corp.		996,093		852
Powertech Technology, Inc.		326,568		638
President Chain Store Corp.		258,220		1,378
Quanta Computer, Inc.		1,123,576		3,025
Radiant Opto-Electronics Corp.*		189,000		958
Realtek Semiconductor Corp.		198,841		367
Richtek Technology Corp.		63,849		380
Ruentex Development Co. Ltd.		258,940		400
Ruentex Industries Ltd.		204,781		342
Shin Kong Financial Holding Co. Ltd.*		2,699,463		786
Siliconware Precision Industries Co.		1,338,480		1,392
Simplo Technology Co. Ltd.		114,120		790
Sino-American Silicon Products, Inc.		179,550		283
SinoPac Financial Holdings Co. Ltd.		2,654,257		1,009
Standard Foods Corp.		92,000		265
Synnex Technology International Corp.		561,086		1,372
Taishin Financial Holding Co. Ltd.		2,302,212		884
Taiwan Business Bank*		1,263,834		367
Taiwan Cement Corp.		1,414,055		1,687
Taiwan Cooperative Financial Holding*		1,805,349		1,072
Taiwan Fertilizer Co. Ltd.		336,000		777
Taiwan Glass Industry Corp.		398,447		338
Taiwan Mobile Co. Ltd.*		755,076		2,496
Taiwan Semiconductor Manufacturing Co. Ltd.*		11,116,193		30,427
Teco Electric and Machinery Co. Ltd.*		787,000		514
TPK Holding Co. Ltd.		76,003		962
Transcend Information, Inc.		84,442		236
Tripod Technology Corp.		186,082		530
TSRC Corp.		219,902		543
Tung Ho Steel Enterprise Corp.		328,271		320
U-Ming Marine Transport Corp.		188,000		300
Unimicron Technology Corp.		596,418		682
Uni-President Enterprises Corp.		1,739,435		2,794
United Microelectronics Corp.		5,599,043		2,450
Walsin Lihwa Corp.		1,436,770		403
Wan Hai Lines Ltd.		489,825		242
Wintek Corp.		660,162		366
Wistron Corp.		895,217		1,102
WPG Holdings Ltd.		611,316		721
Ya Hsin Industrial Co. Ltd.†*		121,548		—
Yang Ming Marine Transport Corp.		620,356		279
Yuanta Financial Holding Co. Ltd.*		3,629,647		1,665
Yulon Motor Co. Ltd.		394,257		701
Zhen Ding Technology Holding Ltd.*		76,000		240
				168,792
Thailand - 2.1%
Advanced Info Service PCL (Registered)		194,000		1,127
Advanced Info Service PCL NVDR		211,099		1,232
Bangkok Bank PCL		25,275		153
Bangkok Bank PCL (Registered)		356,625		2,333

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 89.5% continued
Thailand - 2.1% continued
Bangkok Bank PCL NVDR		249,500	$	1,510
Bank of Ayudhya PCL (Registered)		518,654		494
Bank of Ayudhya PCL NVDR		309,868		291
Banpu PCL (Registered)		23,350		326
Banpu PCL NVDR		25,958		368
BEC World PCL (Registered)		196,500		312
BEC World PCL NVDR		247,207		395
Charoen Pokphand Foods PCL NVDR		1,358,857		1,655
CP ALL PCL (Registered)		905,200		1,012
CP ALL PCL NVDR		1,078,736		1,213
Glow Energy PCL (Registered)		100,200		196
Glow Energy PCL NVDR		127,602		250
Indorama Ventures PCL NVDR		654,447		574
IRPC PCL (Registered)		1,860,900		210
IRPC PCL NVDR		2,734,681		312
Kasikornbank PCL		50,000		256
Kasikornbank PCL (Registered)		280,600		1,465
Kasikornbank PCL NVDR		513,797		2,634
Krung Thai Bank PCL (Registered)		559,800		284
Krung Thai Bank PCL NVDR		716,955		365
PTT Exploration & Production PCL NVDR		275,443		1,462
PTT Exploration & Production PCL (Registered)		248,300		1,313
PTT Global Chemical PCL (Registered)		206,614		361
PTT Global Chemical PCL NVDR		544,976		960
PTT PCL (Registered)		186,500		1,896
PTT PCL NVDR		201,800		2,063
Siam Cement PCL (Registered)		51,000		583
Siam Cement PCL NVDR		134,698		1,344
Siam Commercial Bank PCL (Registered)		232,700		1,077
Siam Commercial Bank PCL NVDR		474,676		2,218
Thai Oil PCL (Registered)		112,300		202
Thai Oil PCL NVDR		260,995		476
				32,922
Turkey - 1.6%
Akbank T.A.S.		633,335		2,324
Anadolu Efes Biracilik Ve Malt Sanayii A.S.		91,408		1,172
Arcelik A.S.		106,779		541
Asya Katilim Bankasi A.S.*		218,730		220
BIM Birlesik Magazalar A.S.		47,999		1,980
Coca-Cola Icecek A.S.		29,247		454
Dogan Yayin Holding A.S.*		1		—
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.		274,278		338
Enka Insaat ve Sanayi A.S.		161,939		435
Eregli Demir ve Celik Fabrikalari T.A.S.		523,425		584
Ford Otomotiv Sanayi A.S.		31,229		284
Haci Omer Sabanci Holding A.S.		369,265		1,557
Is Gayrimenkul Yatirim Ortakligi A.S.		1		—
KOC Holding A.S.		287,696		1,099
Koza Altin Isletmeleri A.S.		17,248		334
TAV Havalimanlari Holding A.S.		73,053		393
Tupras Turkiye Petrol Rafinerileri A.S.		56,475		1,210
Turk Hava Yollari*		211,239		372
Turk Telekomunikasyon A.S.		237,281		970
Turkcell Iletisim Hizmetleri A.S.*		347,574		1,755
Turkiye Garanti Bankasi A.S.		1,045,303		4,119
Turkiye Halk Bankasi A.S.		141,484		1,110
Turkiye Is Bankasi, Class C		712,505		1,899
Turkiye Sise ve Cam Fabrikalari A.S.		171,449		281
Turkiye Vakiflar Bankasi Tao, Class D		341,968		713
Yapi ve Kredi Bankasi A.S.*		396,939		817
				24,961
Ukraine - 0.0%
Kernel Holding S.A.*		23,577		432
United States - 0.2%
Southern Copper Corp.		76,827		2,421
Total Common Stocks(3) (Cost $1,288,996)(3)				1,404,354
PREFERRED STOCKS - 8.0%
Brazil - 6.9%
AES Tiete S.A.		46,253		659
Banco Bradesco S.A.		841,963		12,488
Banco do Estado do Rio Grande do Sul, Class B		81,418		576
Bradespar S.A.		102,401		1,674
Braskem S.A., Class A		69,641		463
Centrais Eletricas Brasileiras S.A., Class B		101,741		981
Cia Brasileira de Distribuicao Grupo Pao de Acucar		43,860		1,733
Cia de Bebidas das Americas		337,799		12,937
Cia de Transmissao de Energia Eletrica Paulista		15,846		506
Cia Energetica de Minas Gerais		217,152		4,003
Cia Energetica de Sao Paulo, Class B		71,108		1,293
Cia Paranaense de Energia, Class B		46,344		1,003

NORTHERN FUNDS QUARTERLY REPORT     11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
PREFERRED STOCKS - 8.0% continued
Brazil - 6.9% continued
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.		43,377	$	546
Gerdau S.A.		389,361		3,416
Itau Unibanco Holding S.A.		1,030,500		14,402
Itausa - Investimentos Itau S.A.		1,162,322		4,890
Klabin S.A.		203,321		901
Lojas Americanas S.A.		182,295		1,195
Metalurgica Gerdau S.A.		124,299		1,361
Oi S.A.		376,199		1,549
Petroleo Brasileiro S.A.		1,860,395		16,830
Telefonica Brasil S.A.		131,591		3,262
Telefonica Brasil S.A. ADR		2,945		73
Ultrapar Participacoes S.A.		147,724		3,360
Usinas Siderurgicas de Minas Gerais S.A., Class A		172,444		549
Vale S.A.		904,630		17,597
				108,247
Chile - 0.1%
Sociedad Quimica y Minera de Chile S.A., Class B		37,634		2,103
Colombia - 0.2%
Banco Davivienda S.A.		39,811		492
Bancolombia S.A.		113,341		1,767
Grupo Aval Acciones y Valores		644,800		414
Grupo de Inversiones Suramericana S.A.		28,909		527
Inversiones Argos S.A.		39,345		353
				3,553
Russia - 0.3%
AK Transneft OAO		701		1,017
Sberbank of Russia		448,894		867
Surgutneftegaz OJSC		1,720,024		989
Surgutneftegaz OJSC ADR		140,161		799
				3,672
South Korea - 0.5%
Hyundai Motor Co.		10,759		630
Hyundai Motor Co., Class 2		17,001		1,116
LG Chem Ltd.		3,369		262
Samsung Electronics Co. Ltd.		9,282		6,143
				8,151
Total Preferred Stocks(3) (Cost $127,936)(3)				125,726
RIGHTS - 0.0%
Chile - 0.0%
Cencosud S.A.*		43,756		14
Total Rights(3) (Cost $ — )(3)				14
INVESTMENT COMPANIES - 1.3%
Northern Institutional Funds - Diversified Assets Portfolio(4) (5)		5,381,644		5,381
Vanguard MSCI Emerging Markets ETF		365,650		14,608
Total Investment Companies (Cost $19,051)				19,989
Total Investments - 98.8% (Cost $1,435,983)				1,550,083
Other Assets less Liabilities - 1.2%				18,111
NET ASSETS - 100.0%			$	1,568,194

(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 June 30, 2012, the value of these restricted illiquid securities amounted to approximately $1,565,000 or 0.1% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000S)
Reliance Industries Ltd. GDR		11/1/06-12/22/06	$	1,617
VTB Bank OJSC GDR		5/11/07-10/28/09		80

(3) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.

(4) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $5,496,000 with net sales of approximately $115,000 during the three months ended June 30, 2012.

(5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

† Level 3 asset that is worthless, bankrupt or has been delisted.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

At June 30, 2012, the Emerging Markets Equity Index Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
Dax Index (Euro)		11	$	2,231		Long		9/12	$	55
FTSE/JSE Top 40 (South African Rand)		104		3,757		Long		9/12		(121	)
Hang Seng Index (Hong Kong Dollar)		46		5,766		Long		7/12		128
MSCI Taiwan Index (United States Dollar)		164		4,156		Long		7/12		112
S&P CNX Nifty (United States Dollar)		262		2,774		Long		7/12		82
S&P/TSX 60 (Canadian Dollar)		19		2,468		Long		9/12		60
SPI 200 (Australian Dollar)		24		2,491		Long		9/12		(32	)
Total									$	284

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,460,443
Gross tax appreciation of investments	$	256,236
Gross tax depreciation of investments		(166,596	)
Net tax appreciation of investments	$	89,640

At June 30, 2012, the Emerging Markets Equity Index Fund had outstanding foreign currency exchange contracts as follows:

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
Hong Kong Dollar		4,655	United States Dollar		600		7/3/2012	$	—	*
United States Dollar		59	Russian Ruble		1,742		7/12/2012		(6	)
Brazilian Real		1,002	United States Dollar		475		9/19/12		(17	)
Hong Kong Dollar		13,962	United States Dollar		1,800		9/19/12		—	*
Hong Kong Dollar		11,635	United States Dollar		1,500		9/19/12		—	*
United States Dollar		1,100	Hong Kong Dollar		8,532		9/19/12		—	*
United States Dollar		93	Hong Kong Dollar		720		9/19/12		—	*
United States Dollar		496	Hong Kong Dollar		3,847		9/19/12		—	*
United States Dollar		1,335	Korean Won		1,564,353		9/19/12		30
United States Dollar		850	Korean Won		984,872		9/19/12		9
United States Dollar		300	Mexican Peso		4,130		9/19/12		7
United States Dollar		200	Mexican Peso		2,746		9/19/12		4
United States Dollar		15	Mexican Peso		200		9/19/12		—	*
United States Dollar		17	Polish Zloty		60		9/19/12		1
United States Dollar		1,063	Russian Ruble		35,195		9/19/12		8
United States Dollar		250	South African Rand		2,128		9/19/12		7
United States Dollar		600	South African Rand		5,021		9/19/12		7
United States Dollar		500	South African Rand		4,189		9/19/12		6
United States Dollar		37	South African Rand		320		9/19/12		1
United States Dollar		2,400	Taiwan Dollar		71,665		9/19/12		—	*
United States Dollar		150	Turkish Lira		279		9/19/12		2
United States Dollar		38	Turkish Lira		70		9/19/12		—	*
United States Dollar		828	Indian Rupee		46,997		9/20/12		—	*
Total								$	59

* Amount rounds to less than one thousand.

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

At June 30, 2012, the industry sectors for the Emerging Markets Equity Index Fund were:

INDUSTRY SECTOR	% OF LONG- TERM INVESTMENTS
Consumer Discretionary		7.8	%
Consumer Staples		8.4
Energy		12.6
Financials		25.5
Health Care		1.1
Industrials		6.7
Information Technology		13.7
Materials		12.2
Telecommunication Services		8.1
Utilities		3.9
Total		100.0	%

At June 30, 2012, the Emerging Markets Equity Index Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG- TERM INVESTMENTS
Hong Kong Dollar		17.7	%
Korean Won		15.1
Brazilian Real		12.8
Taiwan Dollar		10.9
United States Dollar		8.2
South African Rand		7.8
Indian Rupee		6.1
All other currencies less than 5%		21.4
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three levels listed below.

Level 1 - Unadjusted quoted market prices in active markets for indentical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indicies). The Fund adjusted the price of certain foreign equity securities held in its portfolio on June 30, 2012 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Emerging Markets Equity Index Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	—		$	117,373		$	—	$	117,373
Consumer Staples		1,505			112,620			—		114,125
Energy		8,556			162,874			—		171,430
Financials		11,988			331,305			—		343,293
Health Care		365			17,067			—		17,432
Industrials		218			103,929			—		104,147
Information Technology		1,435			204,683			—		206,118
Materials		11,085			149,179			—		160,264
Telecommunication Services		4,367			115,905			—		120,272
Utilities		1,697			48,203			—		49,900
Preferred Stocks
Consumer Discretionary		—			2,941			—		2,941
Consumer Staples		—			14,670			—		14,670
Energy		799			22,197			—		22,996
Financials		3,199			33,222			—		36,421
Information Technology		—			6,143			—		6,143
Materials		353			28,327			—		28,680
Telecommunication Services		73			4,811			—		4,884
Utilities		—			8,991			—		8,991
Rights
Consumer Staples		—			14			—		14
Investment Companies		19,989			—			—		19,989
Total Investments	$	65,629		$	1,484,454		$	—	$	1,550,083
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	437		$	—		$	—	$	437
Foreign Currency Exchange Contracts		—			82			—		82
Liabilities
Futures Contracts		(153	)		—			—		(153	)
Foreign Currency Exchange Contracts		—			(23	)		—		(23	)
Total Other Financial Instruments	$	284		$	59		$	—	$	343

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1 and Level 2 based on levels assigned to the securities on March 31, 2012. At June 30, 2012, the Fund had a transfer in the Materials sector of Common Stock from Level 3 to Level 2 of $3,952,000 due to a valuation at a mid price. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	BALANCE AS OF 3/31/12 (000S)		REALIZED GAINS (000S)		REALIZED LOSSES (000S)		CHANGE IN UNREALIZED APPRECIATION (000S)		CHANGE IN UNREALIZED DEPRECIATION (000S)		PURC- HASES (000S)		SALES (000S)		TRAN- SFERS INTO LEVEL 3 (000S) (1)		TRAN- SFERS OUT OF LEVEL 3 (000S) (1)			BALANCE AS OF 6/30/12 (000S)
Common Stock
Materials	$	3,887	$	—	$	—	$	45	$	—	$	20	$	—	$	—	$	(3,952	)(2)	$	—

(1) The value of Transfers Into and/or Out of Level 3 are measured using the fair value as of the end of the period, June 30, 2012.

(2) Transferred out of Level 3 and into Level 2 due to security being valued based on a mid price from a primary pricing service.

There was no change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at June 30, 2012.

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6%
Australia - 7.1%
BGP Holdings PLC - (Fractional Shares)*		6,535,576	$	—
BWP Trust		466,187		893
Centro Retail Australia		1,190,781		2,419
CFS Retail Property Trust		1,879,024		3,736
Charter Hall Retail REIT		269,112		915
Commonwealth Property Office Fund		2,114,854		2,204
Dexus Property Group		4,299,294		4,111
FKP Property Group		812,640		318
Goodman Group		1,368,391		5,185
GPT Group		1,610,273		5,446
Investa Office Fund		545,648		1,523
Mirvac Group		3,034,760		3,973
Stockland		1,981,364		6,272
Westfield Group		2,050,420		19,971
Westfield Retail Trust		2,713,277		7,952
				64,918
Austria - 0.6%
Atrium European Real Estate Ltd.		165,866		779
CA Immobilien Anlagen A.G.		78,397		783
Conwert Immobilien Invest S.E.		75,797		832
Immofinanz A.G.*		972,610		3,097
				5,491
Belgium - 0.4%
Befimmo SCA Sicafi		16,146		923
Cofinimmo		13,774		1,535
Intervest Offices & Warehouses		6,263		154
Leasinvest Real Estate SCA		1,376		113
Warehouses De Pauw SCA		9,151		489
Wereldhave Belgium N.V.		2,207		211
				3,425
Brazil - 2.3%
Aliansce Shopping Centers S.A.		93,379		796
BR Malls Participacoes S.A.		399,429		4,524
BR Properties S.A.		275,315		3,221
Brookfield Incorporacoes S.A.		196,079		328
Camargo Correa Desenvolvimento Imobiliario S.A.*		41,258		111
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		281,552		2,075
Even Construtora e Incorporadora S.A.		208,575		706
Ez Tec Empreendimentos e Participacoes S.A.		51,740		531
Gafisa S.A.*		378,000		493
General Shopping Brasil S.A.*		21,504		102
Helbor Empreendimentos S.A.		131,448		568
Iguatemi Empresa de Shopping Centers S.A.		35,424		729
JHSF Participacoes S.A.		77,116		231
MRV Engenharia e Participacoes S.A.		321,003		1,478
Multiplan Empreendimentos Imobiliarios S.A.		73,694		1,798
PDG Realty S.A. Empreendimentos e Participacoes		998,382		1,755
Rodobens Negocios Imobiliarios S.A.		20,943		115
Rossi Residencial S.A.		176,039		432
Sonae Sierra Brasil S.A.		26,962		389
Tecnisa S.A.		122,408		454
Viver Incorporadora e Construtora S.A.*		189,785		140
				20,976
Canada - 4.3%
Allied Properties Real Estate Investment Trust		49,532		1,411
Artis Real Estate Investment Trust		96,517		1,555
Boardwalk Real Estate Investment Trust		42,565		2,450
Calloway Real Estate Investment Trust		94,963		2,612
Canadian Apartment Properties REIT		82,761		1,933
Canadian Real Estate Investment Trust		60,106		2,400
Chartwell Seniors Housing Real Estate Investment Trust		151,257		1,441
Cominar Real Estate Investment Trust		98,257		2,316
Crombie Real Estate Investment Trust		41,081		593
Dundee Real Estate Investment Trust		85,469		3,206
Extendicare Real Estate Investment Trust		74,078		530
First Capital Realty, Inc.		63,995		1,153
Granite Real Estate, Inc.		41,700		1,423
H&R Real Estate Investment Trust		160,621		3,865
InnVest Real Estate Investment Trust		82,208		379
Killam Properties, Inc.		43,504		561
Morguard Real Estate Investment Trust		38,656		645
Northern Property Real Estate Investment Trust		27,951		904
NorthWest Healthcare Properties Real Estate Investment Trust		30,876		397
Primaris Retail Real Estate Investment Trust		77,900		1,803
RioCan Real Estate Investment Trust		254,320		6,919
Transglobe Apartment Real Estate Investment Trust		51,490		721
				39,217

EQUITY INDEX FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Chile - 0.1%
Parque Arauco S.A.		470,597	$	837
China - 1.9%
Agile Property Holdings Ltd.		1,233,979		1,603
Beijing North Star Co. Ltd., Class H		637,662		117
China Merchants Property Development Co. Ltd., Class B		224,108		438
China Vanke Co. Ltd., Class B*		1,169,956		1,549
Country Garden Holdings Co. Ltd.*		3,241,233		1,282
Evergrande Real Estate Group Ltd.		5,331,000		2,756
Fantasia Holdings Group Co. Ltd.		1,816,500		196
Greentown China Holdings Ltd.		699,000		734
Guangzhou R&F Properties Co. Ltd., Class H		859,002		1,140
Hui Xian Real Estate Investment Trust		1,777,000		1,029
Longfor Properties Co. Ltd.		915,000		1,437
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B		448,631		495
Shui On Land Ltd.		2,590,272		1,058
Sino-Ocean Land Holdings Ltd.		3,752,435		1,873
Soho China Ltd.		1,843,756		1,412
				17,119
Egypt - 0.0%
Six of October Development & Investment Co.*		82,598		231
Finland - 0.2%
Citycon OYJ		186,748		528
Sponda OYJ		251,835		944
Technopolis OYJ		67,089		275
				1,747
France - 2.7%
Affine S.A.		3,747		51
ANF Immobilier		9,763		411
Fonciere Des Regions		24,409		1,759
Gecina S.A.		16,271		1,456
ICADE		19,297		1,464
Klepierre		84,247		2,776
Mercialys S.A.		40,871		761
Orco Property Group*		15,289		49
Societe de la Tour Eiffel		5,101		255
Societe Immobiliere de Location pour I’Industrie et le Commerce		11,559		1,101
Unibail-Rodamco S.E.		81,130		14,969
				25,052
Germany - 1.0%
Alstria Office REIT-A.G.		70,372		744
Colonia Real Estate A.G.*		19,353		67
Deutsche Euroshop A.G.		45,831		1,623
Deutsche Wohnen A.G. (Bearer)		129,689		2,186
DIC Asset A.G.		30,637		264
GAGFAH S.A.*		79,238		756
GSW Immobilien A.G.		44,875		1,533
Hamborner REIT A.G.		29,942		263
IVG Immobilien A.G.*		137,231		273
Patrizia Immobilien A.G.*		23,956		134
Prime Office REIT-A.G.		35,013		144
TAG Immobilien A.G.		85,859		807
				8,794
Greece - 0.0%
Eurobank Properties Real Estate Investment Co.		16,797		81
Hong Kong - 10.4%
C C Land Holdings Ltd.		1,130,000		274
Champion REIT		2,193,846		911
China Overseas Land & Investment Ltd.		3,626,542		8,507
China Resources Land Ltd.		2,071,218		4,277
Franshion Properties China Ltd.		3,262,000		991
Hang Lung Properties Ltd.		1,983,452		6,752
Henderson Land Development Co. Ltd.		1,043,441		5,797
Hongkong Land Holdings Ltd.		1,547,618		8,912
Hysan Development Co. Ltd.		700,386		2,664
Kerry Properties Ltd.		634,599		2,719
Link REIT (The)		1,998,800		8,172
Mingfa Group International Co. Ltd.		1,071,000		284
New World China Land Ltd.		2,307,899		945
New World Development Ltd.		4,066,741		4,801
Poly Hong Kong Investments Ltd.*		1,606,000		873
Qualipak International Holdings Ltd.*		56,500		—
Shenzhen Investment Ltd.		2,436,014		577
Shimao Property Holdings Ltd.		1,231,869		1,908
Sino Land Co. Ltd.		2,617,427		3,973
Sun Hung Kai Properties Ltd.		1,742,619		20,679
Swire Properties Ltd.		571,600		1,722
Wharf Holdings Ltd.		1,345,317		7,479
Yuexiu Property Co. Ltd.		6,167,400		1,514
				94,731
India - 0.3%
Anant Raj Industries Ltd.		105,351		91

NORTHERN FUNDS QUARTERLY REPORT    17    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
India - 0.3% continued
DLF Ltd.		454,043	$	1,629
Orbit Corp. Ltd.		79,936		81
Parsvnath Developers Ltd.*		114,070		126
Prestige Estates Projects Ltd.		57,589		121
Sunteck Realty Ltd.		16,546		104
Unitech Ltd.*		1,755,440		699
				2,851
Indonesia - 0.7%
Agung Podomoro Land Tbk PT		5,323,696		197
Alam Sutera Realty Tbk PT		13,163,640		693
Bakrieland Development Tbk PT*		38,355,643		287
Bumi Serpong Damai PT		6,227,500		787
Ciputra Development Tbk PT		10,157,290		706
Ciputra Property Tbk PT		2,663,938		185
Ciputra Surya Tbk PT		690,500		142
Intiland Development Tbk PT*		6,852,500		251
Kawasan Industri Jababeka Tbk PT*		17,678,500		353
Lippo Karawaci Tbk PT		15,392,031		1,314
Pakuwon Jati Tbk PT*		12,800,140		265
Sentul City Tbk PT*		20,763,517		515
Summarecon Agung Tbk PT		4,604,000		800
				6,495
Israel - 0.1%
Azrieli Group		32,466		717
Italy - 0.0%
Beni Stabili S.p.A.		841,517		365
Immobiliare Grande Distribuzione		115,331		94
				459
Japan - 8.2%
Activia Properties, Inc.*		181		1,038
Advance Residence Investment Corp.		733		1,424
Aeon Mall Co. Ltd.		80,397		1,710
Japan Prime Realty Investment Corp.		635		1,789
Japan Real Estate Investment Corp.		488		4,487
Japan Retail Fund Investment Corp.		1,666		2,642
Kenedix Realty Investment Corp.		254		822
Mitsubishi Estate Co. Ltd.		926,480		16,622
Mitsui Fudosan Co. Ltd.		783,562		15,201
Mori Trust Sogo Reit, Inc.		107		940
Nippon Accommodations Fund, Inc.		129		836
Nippon Building Fund, Inc.		541		5,239
Nomura Real Estate Holdings, Inc.		67,700		1,240
Nomura Real Estate Office Fund, Inc.		269		1,519
NTT Urban Development Corp.		1,174		949
Orix JREIT, Inc.		190		855
Premier Investment Corp.		176		619
Sumitomo Realty & Development Co. Ltd.		423,425		10,419
Tokyo Tatemono Co. Ltd.*		289,201		1,089
Tokyu Land Corp.		354,556		1,760
Tokyu REIT, Inc.		112		550
Top REIT, Inc.		137		767
United Urban Investment Corp.		1,869		2,017
				74,534
Malaysia - 0.4%
Eastern & Oriental Bhd.		758,200		336
Glomac Bhd.		270,100		73
IGB Corp. Bhd.		995,154		843
IJM Land Bhd.		494,550		344
KLCC Property Holdings Bhd.		418,848		613
Land & General Bhd.*		516,827		63
LBS Bina Group Bhd.*		267,800		67
Pavilion Real Estate Investment Trust		797,600		307
SP Setia Bhd.		510,735		611
Tebrau Teguh Bhd.*		443,900		105
YTL Land & Development Bhd.*		219,300		69
				3,431
Mexico - 0.2%
Consorcio ARA S.A.B. de C.V.*		880,117		294
Corp. GEO S.A.B. de C.V., Series B*		359,534		404
Desarrolladora Homex S.A.B. de C.V.*		221,885		569
Sare Holding S.A.B. de C.V., Class B*		584,105		60
Urbi Desarrollos Urbanos S.A.B. de C.V.*		431,026		415
				1,742
Netherlands - 0.8%
Corio N.V.		82,000		3,612
Eurocommercial Properties N.V. - CVA		36,235		1,256
Nieuwe Steen Investments N.V.		56,312		481
Vastned Retail N.V.		16,529		644
Wereldhave N.V.		19,263		1,236
				7,229
New Zealand - 0.1%
Kiwi Income Property Trust		868,190		727
Norway - 0.1%
Norwegian Property ASA		446,546		613

EQUITY INDEX FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Philippines - 0.7%
Ayala Land, Inc.		4,596,451	$	2,365
Filinvest Land, Inc.		8,708,989		266
Megaworld Corp.		9,027,101		472
Robinsons Land Corp.		1,476,875		614
SM Development Corp.		1,649,600		241
SM Prime Holdings, Inc.		6,174,253		1,921
Vista Land & Lifescapes, Inc.		2,995,661		299
				6,178
Poland - 0.0%
Globe Trade Centre S.A.*		96,640		185
LC Corp. S.A.*		186,319		74
				259
Singapore - 4.0%
Ascendas India Trust		517,000		310
Ascendas Real Estate Investment Trust		1,848,753		3,157
CapitaCommercial Trust		1,879,014		1,889
CapitaLand Ltd.		2,817,915		6,083
CapitaMall Trust		2,217,715		3,359
CapitaMalls Asia Ltd.		1,380,000		1,721
CDL Hospitality Trusts		638,610		988
City Developments Ltd.		606,000		5,416
First Real Estate Investment Trust		415,000		300
Global Logistic Properties Ltd.*		2,041,793		3,401
Keppel Land Ltd.		662,027		1,702
Mapletree Commercial Trust		1,238,000		961
Mapletree Industrial Trust		1,085,948		1,040
Mapletree Logistics Trust		1,615,722		1,254
Suntec Real Estate Investment Trust		1,982,291		2,120
UOL Group Ltd.		512,000		2,007
Wing Tai Holdings Ltd.		524,380		555
Yanlord Land Group Ltd.*		515,000		505
				36,768
South Africa - 1.5%
Arrowhead Properties Ltd., Class A		73,698		56
Arrowhead Properties Ltd., Class B		76,484		48
Capital Property Fund		1,427,963		1,738
Emira Property Fund		454,174		708
Fountainhead Property Trust		1,035,847		939
Growthpoint Properties Ltd.		1,548,279		4,350
Hyprop Investments Ltd.		162,092		1,231
Redefine Properties Ltd.		2,389,756		2,505
Resilient Property Income Fund Ltd.		249,395		1,311
SA Corporate Real Estate Fund Nominees Pty Ltd.		1,823,453		761
				13,647
Sweden - 0.9%
Castellum AB		152,834		1,852
Fabege AB		147,046		1,154
Fastighets AB Balder, Class B*		99,838		453
Hufvudstaden AB, Class A		135,192		1,451
Klovern AB		110,648		361
Kungsleden AB		122,250		621
Wallenstam AB, Class B		103,144		1,004
Wihlborgs Fastigheter AB		68,460		922
				7,818
Switzerland - 1.1%
Allreal Holding A.G. (Registered)		7,080		1,032
Mobimo Holding A.G. (Registered)		5,462		1,262
PSP Swiss Property A.G. (Registered)		41,078		3,625
Swiss Prime Site A.G. (Registered)		48,279		4,030
				9,949
Taiwan - 0.0%
Hung Poo Real Estate Development Corp.		144,585		121
Thailand - 0.3%
Amata Corp. PCL (Registered)		204,186		100
Amata Corp. PCL NVDR		261,071		129
Asian Property Development PCL NVDR		232,804		53
Asian Property Development PCL (Registered)		527,278		123
Central Pattana PCL (Registered)		401,563		588
Central Pattana PCL NVDR		180,749		265
Land and Houses PCL		483,804		120
Land and Houses PCL (Registered)		1,714,380		414
Land and Houses PCL NVDR		489,800		121
LPN Development PCL (Registered)		67,575		37
LPN Development PCL NVDR		414,401		226
Property Perfect PCL (Registered)		3,411,102		120
Property Perfect PCL NVDR		1,204,484		43
Pruksa Real Estate PCL (Registered)		3,200		2
Pruksa Real Estate PCL NVDR		581,500		291
SC Asset Corp PCL (Registered)		182,800		82
SC Asset Corp. PCL NVDR		43,278		20
Siam Future Development PCL NVDR		412,225		105
Supalai PCL (Registered)		281,056		154
Supalai PCL NVDR		252,400		136

NORTHERN FUNDS QUARTERLY REPORT    19    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Thailand - 0.3% continued
Ticon Industrial Connection PCL NVDR		340,300	$	138
				3,267
Turkey - 0.2%
Akfen Gayrimenkul Yatirim Ortakligi A.S.*		43,280		38
Akmerkez Gayrimenkul Yatirim Ortakligi A.S.		24,974		268
Alarko Gayrimenkul Yatirim Ortakligi A.S.		4,257		41
Dogus Gayrimenkul Yatirim Ortakligi A.S.*		38,418		31
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.		671,238		826
Is Gayrimenkul Yatirim Ortakligi A.S.		212,327		134
Sinpas Gayrimenkul Yatirim Ortakligi A.S.		220,803		152
Torunlar Gayrimenkul Yatirim Ortakligi A.S.		60,675		186
				1,676
United Arab Emirates - 0.3%
Aldar Properties PJSC		1,450,763		445
Emaar Properties PJSC		2,652,747		2,044
				2,489
United Kingdom - 4.2%
A&J Mucklow Group PLC		53,303		308
Big Yellow Group PLC		114,947		525
British Land Co. PLC		786,260		6,299
Capital & Counties Properties PLC		607,265		2,000
Capital Shopping Centres Group PLC		572,431		2,895
Daejan Holdings PLC		4,407		185
Derwent London PLC		90,310		2,624
Development Securities PLC		108,151		240
Grainger PLC		369,061		527
Great Portland Estates PLC		277,894		1,720
Hammerson PLC		628,794		4,383
Hansteen Holdings PLC		571,353		645
Helical Bar PLC		104,060		301
Land Securities Group PLC		691,859		8,024
London & Stamford Property PLC		486,363		852
Primary Health Properties PLC		66,193		332
Quintain Estates & Development PLC*		460,399		274
Safestore Holdings PLC		164,809		263
Schroder Real Estate Investment Trust Ltd.		317,079		161
Segro PLC		659,224		2,247
Shaftesbury PLC		222,180		1,796
St. Modwen Properties PLC		133,802		353
Unite Group PLC		140,230		424
Workspace Group PLC		126,263		463
				37,841
United States - 42.5%
Acadia Realty Trust		38,944		903
Agree Realty Corp.		10,093		223
Alexander’s, Inc.		1,757		757
Alexandria Real Estate Equities, Inc.		54,929		3,994
American Assets Trust, Inc.		35,059		850
American Campus Communities, Inc.		66,255		2,980
American Realty Capital Trust, Inc.		140,800		1,538
Apartment Investment & Management Co., Class A		118,291		3,197
Ashford Hospitality Trust, Inc.		59,870		505
Associated Estates Realty Corp.		37,287		557
AvalonBay Communities, Inc.		84,520		11,958
BioMed Realty Trust, Inc.		136,731		2,554
Boston Properties, Inc.		133,061		14,420
Brandywine Realty Trust		126,884		1,566
BRE Properties, Inc.		68,171		3,410
Brookfield Office Properties, Inc.		333,648		5,839
Camden Property Trust		71,334		4,827
Campus Crest Communities, Inc.		28,002		291
CapLease, Inc.		59,469		247
CBL & Associates Properties, Inc.		131,890		2,577
Cedar Realty Trust, Inc.		61,754		312
Chesapeake Lodging Trust		28,379		489
Colonial Properties Trust		77,472		1,715
CommonWealth REIT		74,347		1,422
CommonWealth REIT - (Fractional Shares)*		75,000		—
Corporate Office Properties Trust		63,767		1,499
Cousins Properties, Inc.		92,632		718
CubeSmart		109,007		1,272
DCT Industrial Trust, Inc.		220,401		1,389
DDR Corp.		250,869		3,673
DiamondRock Hospitality Co.		148,464		1,514
Digital Realty Trust, Inc.		97,920		7,351
Douglas Emmett, Inc.		93,034		2,149
Duke Realty Corp.		236,808		3,467
DuPont Fabros Technology, Inc.		56,199		1,605
EastGroup Properties, Inc.		25,124		1,339
Education Realty Trust, Inc.		84,216		933
Entertainment Properties Trust		41,302		1,698
Equity Lifestyle Properties, Inc.		36,647		2,528

EQUITY INDEX FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
United States - 42.5% continued
Equity One, Inc.		50,955	$	1,080
Equity Residential		267,048		16,653
Essex Property Trust, Inc.		31,251		4,810
Extra Space Storage, Inc.		91,584		2,802
Federal Realty Investment Trust		56,403		5,871
FelCor Lodging Trust, Inc.*		109,604		515
First Industrial Realty Trust, Inc.*		78,775		994
First Potomac Realty Trust		45,345		534
Forest City Enterprises, Inc., Class A*		133,403		1,948
Franklin Street Properties Corp.		74,020		783
General Growth Properties, Inc.		416,826		7,540
Getty Realty Corp.		22,189		425
Glimcher Realty Trust		123,881		1,266
Government Properties Income Trust		31,523		713
HCP, Inc.		372,653		16,453
Health Care REIT, Inc.		189,144		11,027
Healthcare Realty Trust, Inc.		69,082		1,647
Hersha Hospitality Trust		176,769		933
Highwoods Properties, Inc.		65,693		2,211
Home Properties, Inc.		42,915		2,633
Hospitality Properties Trust		109,603		2,715
Host Hotels & Resorts, Inc.		639,111		10,111
Inland Real Estate Corp.		79,343		665
Investors Real Estate Trust		76,378		603
Kilroy Realty Corp.		60,722		2,940
Kimco Realty Corp.		360,676		6,864
Kite Realty Group Trust		56,038		280
LaSalle Hotel Properties		76,120		2,218
Lexington Realty Trust		137,316		1,163
Liberty Property Trust		104,249		3,841
LTC Properties, Inc.		27,059		982
Macerich (The) Co.		117,193		6,920
Mack-Cali Realty Corp.		78,025		2,268
Medical Properties Trust, Inc.		119,460		1,149
Mid-America Apartment Communities, Inc.		36,174		2,469
National Health Investors, Inc.		24,697		1,258
National Retail Properties, Inc.		95,018		2,688
Omega Healthcare Investors, Inc.		94,021		2,115
Parkway Properties, Inc.		19,146		219
Pebblebrook Hotel Trust		46,627		1,087
Pennsylvania Real Estate Investment Trust		49,741		745
Piedmont Office Realty Trust, Inc., Class A		153,357		2,639
Post Properties, Inc.		47,330		2,317
ProLogis, Inc.		407,860		13,553
PS Business Parks, Inc.		16,103		1,090
Public Storage		113,392		16,375
Ramco-Gershenson Properties Trust		41,557		522
Realty Income Corp.		118,295		4,941
Regency Centers Corp.		79,877		3,800
Retail Opportunity Investments Corp.		44,673		539
RLJ Lodging Trust		94,500		1,713
Rouse Properties, Inc.*		21,527		292
Sabra Healthcare REIT, Inc.		32,500		556
Saul Centers, Inc.		13,005		558
Senior Housing Properties Trust		144,492		3,225
Simon Property Group, Inc.		269,305		41,920
SL Green Realty Corp.		79,633		6,390
Sovran Self Storage, Inc.		25,770		1,291
Strategic Hotels & Resorts, Inc.*		181,610		1,173
Sun Communities, Inc.		23,524		1,041
Sunstone Hotel Investors, Inc.*		120,390		1,323
Tanger Factory Outlet Centers		82,282		2,637
Taubman Centers, Inc.		52,163		4,025
TravelCenters of America LLC - (Fractional Shares)*		50,000		—
UDR, Inc.		235,573		6,087
Universal Health Realty Income Trust		11,218		466
Urstadt Biddle Properties, Inc., Class A		18,439		365
Ventas, Inc.		261,396		16,499
Vornado Realty Trust		163,717		13,749
Washington Real Estate Investment Trust		58,584		1,667
Weingarten Realty Investors		107,420		2,829
Winthrop Realty Trust		22,052		268
				386,254
Total Common Stocks(1) (Cost $807,177)(1)				887,684
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CONVERTIBLE BONDS - 0.0%
YTL Land & Development Bhd., 3.00%, 10/31/21	$	114	$	17
Total Convertible Bonds (Cost $18)				17

NORTHERN FUNDS QUARTERLY REPORT    21    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

	NUMBER OF WARRANTS		VALUE (000S)
WARRANTS - 0.0%
Netherlands - 0.0%
Vastned Offices, Exp. 4/1/13*		13,213	$	—
Thailand - 0.0%
Property Perfect PCL, Exp. 6/28/14*		243,648		—
Total Warrants (Cost $ — )				—
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 1.4%
F&C Commercial Property Trust Ltd.(1)		471,365	$	770
IRP Property Investments Ltd.(1)		100,008		104
Northern Institutional Funds - Diversified Assets Portfolio(2) (3)		11,155,416		11,155
Picton Property Income Ltd.(1)		301,615		189
Standard Life Investment Property Income Trust PLC(1)		121,017		120
UK Commercial Property Trust Ltd.(1)		421,114		466
Total Investment Companies (Cost $12,951)				12,804
Total Investments - 99.0% (Cost $820,146)				900,505
Other Assets less Liabilities - 1.0%				8,651
NET ASSETS - 100.0%			$	909,156

(1) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $8,343,000 with net purchases of approximately $2,812,000 during the three months ended June 30, 2012.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	875,830
Gross tax appreciation of investments	$	105,003
Gross tax depreciation of investments		(80,328	)
Net tax appreciation of investments	$	24,675

At June 30, 2012, the Global Real Estate Index Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
E-Mini S&P MidCap 400 (U.S. Dollar)		108	$	10,147		Long		9/12	$	383
Euro Stoxx 50 (Euro)		63		1,798		Long		9/12		97
Hang Seng Index (Hong Kong Dollar)		24		3,008		Long		7/12		77
Nikkei 225 (Japanese Yen)		40		2,278		Long		9/12		163
SPI 200 (Australian Dollar)		29		3,010		Long		9/12		2
TOPIX Index (Japanese Yen)		3		289		Long		9/12		27
Total									$	749

At June 30, 2012, the Global Real Estate Index Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG- TERM INVESTMENTS
United States Dollar		43.8	%
Hong Kong Dollar		11.4
Japanese Yen		8.4
Australian Dollar		7.3
Euro		5.9
Canadian Dollar		5.1
All other currencies less than 5%		18.1
Total		100.0	%

EQUITY INDEX FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

At June 30, 2012, the industry sectors for the Global Real Estate Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Diversified Real Estate Activity		14.4	%
Diversified REITs		10.2
Office REITs		10.7
Real Estate Development		6.0
Real Estate Operating Companies		9.9
Residential REITs		8.7
Retail REITs		22.8
Specialized REITs		12.2
Other industries less than 5%		5.1
Total		100.0	%

At June 30, 2012, the Global Real Estate Index Fund had outstanding foreign currency exchange contracts as follows:

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
United States Dollar		550	Hong Kong Dollar		4,267		7/3/12	$	—	*
Australian Dollar		141	United States Dollar		140		9/19/12		(3	)
Australian Dollar		131	United States Dollar		130		9/19/12		(3	)
Australian Dollar		440	United States Dollar		440		9/19/12		(7	)
Australian Dollar		4,476	United States Dollar		4,465		9/19/12		(81	)
British Pound		96	United States Dollar		150		9/19/12		(1	)
British Pound		174	United States Dollar		270		9/19/12		(2	)
British Pound		972	United States Dollar		1,520		9/19/12		(2	)
Canadian Dollar		612	United States Dollar		600		9/19/12		—	*
Canadian Dollar		319	United States Dollar		310		9/19/12		(2	)
Canadian Dollar		1,866	United States Dollar		1,820		9/19/12		(10	)
Euro		136	United States Dollar		170		9/19/12		(2	)
Euro		1,504	United States Dollar		1,900		9/19/12		(5	)
Euro		273	United States Dollar		340		9/19/12		(5	)
Hong Kong Dollar		38,002	United States Dollar		4,900		9/19/12		—	*
Hong Kong Dollar		1,784	United States Dollar		230		9/19/12		—	*
Hong Kong Dollar		5,352	United States Dollar		690		9/19/12		—	*
Japanese Yen		309,814	United States Dollar		3,940		9/19/12		60
Japanese Yen		39,077	United States Dollar		490		9/19/12		—	*
Singapore Dollar		319	United States Dollar		250		9/19/12		(2	)
Singapore Dollar		6,157	United States Dollar		4,840		9/19/12		(21	)
Swiss Franc		218	United States Dollar		230		9/19/12		—	*
United States Dollar		2,406	Australian Dollar		2,430		9/19/12		62
United States Dollar		3,030	Australian Dollar		2,997		9/19/12		14
United States Dollar		1,016	British Pound		653		9/19/12		7
United States Dollar		170	British Pound		110		9/19/12		2
United States Dollar		240	British Pound		153		9/19/12		—	*
United States Dollar		750	British Pound		476		9/19/12		(4	)
United States Dollar		1,269	Canadian Dollar		1,303		9/19/12		9
United States Dollar		300	Canadian Dollar		308		9/19/12		2
United States Dollar		910	Canadian Dollar		930		9/19/12		1
United States Dollar		1,891	Euro		1,500		9/19/12		9
United States Dollar		300	Euro		240		9/19/12		4
United States Dollar		720	Euro		566		9/19/12		(3	)
United States Dollar		580	Hong Kong Dollar		4,499		9/19/12		—	*
United States Dollar		2,680	Hong Kong Dollar		20,786		9/19/12		—	*
United States Dollar		3,393	Hong Kong Dollar		26,314		9/19/12		—	*
United States Dollar		150	Japanese Yen		11,887		9/19/12		(1	)
United States Dollar		370	Japanese Yen		29,373		9/19/12		(2	)
United States Dollar		920	Japanese Yen		72,828		9/19/12		(8	)
United States Dollar		1,530	Japanese Yen		121,500		9/19/12		(8	)
United States Dollar		2,051	Japanese Yen		162,474		9/19/12		(16	)
United States Dollar		998	Singapore Dollar		1,280		9/19/12		12
United States Dollar		3,470	Singapore Dollar		4,400		9/19/12		4
United States Dollar		160	Singapore Dollar		205		9/19/12		2
United States Dollar		150	Singapore Dollar		191		9/19/12		1
United States Dollar		100	Swiss Franc		95		9/19/12		—	*

NORTHERN FUNDS QUARTERLY REPORT    23    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
United States Dollar		150	Swiss Franc		142		9/19/12	$	—	*
Total								$	1

* Amount rounds to less than one thousand.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summerized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on June 30, 2012 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.

Level 3 - Valuations based on inputs that are unobservable and significant. The Fund utilized the following techniques on Level 3 investments: The Fund valued certain securities using prices provided by NTGI PVC.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Global Real Estate Index Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	—	$	10,928		$	—	$	10,928
Financials		423,316		452,189			721		876,226
Health Care		530		—			—		530
Convertible Bonds
Financials		—		17			—		17
Investment Companies		11,155		1,649			—		12,804
Total Investments	$	435,001	$	464,783		$	721	$	900,505
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	749	$	—		$	—	$	749
Foreign Currency Exchange Contracts		—		189			—		189
Liabilities
Foreign Currency Exchange Contracts		—		(188	)		—		(188	)
Total Other Financial Instruments	$	749	$	1		$	—	$	750

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were transfers between Level 1 and Level 2 and Level 1 to Level 3 classifications based on levels assigned to the securities on March 31, 2012. At June 30, 2012, the Fund had a transfer in the Financials sector of Common Stock from Level 1 to Level 2 of approximately $904,000 due to the security being priced at its net asset value. At June 30, 2012 the Fund had a transfer in the Financial sector of Common Stock from Level 1 to Level 3 of approximately $721,000 as a result of using a fair valued price provided by NTGI PVC. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EQUITY INDEX FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	BALANCE AS OF 3/31/12 (000S)		REALIZED GAINS (000S)		REALIZED LOSSES (000S)		CHANGE IN UNREALIZED APPRECIATION (000S)		CHANGE IN UNREALIZED DEPRECIATION (000S)		PURC- HASES (000S)		SALES (000S)		TRAN- SFERS INTO LEVEL 3 (000S) (1)			TRAN- SFERS OUT OF LEVEL 3 (000S) (1)		BALANCE AS OF 6/30/12 (000S)
Common Stock
Financials	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	721	(2)	$	—	$	721

(1) The value of Transfers Into and/or Out of Level 3 are measured using the fair value as of the end of the period, June 30, 2012.

(2) Transferred into Level 3 and out of Level 1 due to security being fair valued by NTGI PVC.

There was no change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at June 30, 2012.

NORTHERN FUNDS QUARTERLY REPORT    25    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6%
Australia - 4.3%
AGL Energy Ltd.		4,876	$	74
Alumina Ltd.		20,321		17
Amcor Ltd.		11,090		81
AMP Ltd.		25,785		102
Australia & New Zealand Banking Group Ltd.		23,882		542
Bendigo and Adelaide Bank Ltd.		3,278		25
Boral Ltd.		7,360		22
Brambles Ltd.		14,070		89
CFS Retail Property Trust Group		16,286		32
Coca-Cola Amatil Ltd.		5,085		70
Commonwealth Bank of Australia		14,087		771
Computershare Ltd.		4,257		33
Dexus Property Group		42,770		41
Fortescue Metals Group Ltd.		13,116		67
Goodman Group		13,248		50
GPT Group		11,999		41
Insurance Australia Group Ltd.		18,484		66
Lend Lease Group		5,182		38
Metcash Ltd.		6,611		23
Mirvac Group		32,665		43
National Australia Bank Ltd.		19,979		485
Newcrest Mining Ltd.		6,544		152
Orica Ltd.		3,302		84
Origin Energy Ltd.		9,850		124
OZ Minerals Ltd.		2,931		24
Santos Ltd.		8,536		94
Sonic Healthcare Ltd.		3,137		41
SP AusNet		14,728		15
Stockland		20,394		65
Sydney Airport		3,479		10
Toll Holdings Ltd.		5,792		24
Transurban Group		11,693		68
Westpac Banking Corp.		26,991		587
Woolworths Ltd.		10,740		295
				4,295
Austria - 0.1%
OMV A.G.		1,425		45
Telekom Austria A.G.		3,247		32
Verbund A.G.		553		12
				89
Belgium - 0.2%
Colruyt S.A.		727		32
Delhaize Group S.A.		956		35
KBC Groep N.V.		1,509		32
Solvay S.A., Class A		526		52
Umicore S.A.		1,079		50
				201
Canada - 5.3%
Agnico-Eagle Mines Ltd.		1,608		65
Agrium, Inc.		1,390		123
ARC Resources Ltd.		2,654		60
Bank of Nova Scotia		9,718		503
BCE, Inc.		2,349		97
Canadian National Railway Co.		3,948		334
Canadian Tire Corp. Ltd., Class A		729		49
Canadian Utilities Ltd., Class A		496		32
Cenovus Energy, Inc.		6,532		208
CGI Group, Inc., Class A*		2,100		50
Crescent Point Energy Corp.		2,566		96
Empire Co. Ltd., Class A		300		16
Enbridge, Inc.		6,702		268
Enerplus Corp.		1,721		22
Franco-Nevada Corp.		1,195		54
Gildan Activewear, Inc.		1,013		28
Kinross Gold Corp.		10,243		84
Loblaw Cos. Ltd.		1,072		34
Metro, Inc.		874		45
Nexen, Inc.		4,663		79
Open Text Corp.*		500		25
Osisko Mining Corp.*		3,117		21
Pacific Rubiales Energy Corp.		2,414		51
Penn West Petroleum Ltd.		4,451		60
Potash Corp. of Saskatchewan, Inc.		7,595		332
Rogers Communications, Inc., Class B		3,305		120
Royal Bank of Canada		12,807		656
Saputo, Inc.		1,114		46
Silver Wheaton Corp.		3,200		86
Suncor Energy, Inc.		13,947		403
Talisman Energy, Inc.		9,377		107
Teck Resources Ltd., Class B		4,944		153
Tim Hortons, Inc.		1,400		74
Toronto-Dominion Bank (The)		8,045		630
TransAlta Corp.		2,043		35
Valeant Pharmaceuticals International, Inc.*		2,600		117
Viterra, Inc.		2,717		43

EQUITY INDEX FUNDS    26    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Canada - 5.3% continued
Yamana Gold, Inc.		6,808	$	105
				5,311
Denmark - 0.7%
Danske Bank A/S*		5,869		82
Novo Nordisk A/S, Class B		3,616		523
Novozymes A/S, Class B		2,093		54
Tryg A/S		208		12
				671
Finland - 0.2%
Kesko OYJ, Class B		585		15
Metso OYJ		1,212		42
Neste Oil OYJ		1,226		14
Nokia OYJ		33,905		70
Stora Enso OYJ, Class R		5,009		31
UPM-Kymmene OYJ		4,846		55
				227
France - 2.5%
Accor S.A.		1,277		40
Air Liquide S.A.		2,747		314
Bouygues S.A.		1,751		47
Bureau Veritas S.A.		505		45
Carrefour S.A.		5,185		96
Casino Guichard Perrachon S.A.		531		47
Christian Dior S.A.		493		68
Cie de Saint-Gobain		3,382		125
Cie Generale de Geophysique-Veritas*		961		25
CNP Assurances		1,523		18
Danone S.A.		5,136		319
France Telecom S.A.		16,062		211
Gecina S.A.		210		19
Imerys S.A.		274		14
JCDecaux S.A.		637		14
Lagardere S.C.A.		1,022		28
L’Oreal S.A.		2,179		255
Peugeot S.A.*		2,191		22
Renault S.A.		1,739		70
Schneider Electric S.A.		4,613		257
Societe BIC S.A.		277		29
Suez Environnement Co.		2,686		29
Technip S.A.		897		94
Unibail-Rodamco S.E.		776		143
Veolia Environnement S.A.		2,646		33
Vinci S.A.		3,860		181
				2,543
Germany - 2.5%
Adidas A.G.		1,897		136
BASF S.E.		8,164		567
Bayerische Motoren Werke A.G.		2,876		208
Beiersdorf A.G.		894		58
Deutsche Boerse A.G.		1,765		95
Deutsche Lufthansa A.G. (Registered)		1,912		22
Deutsche Post A.G. (Registered)		7,675		136
Fraport A.G. Frankfurt Airport Services Worldwide		323		17
GEA Group A.G.		1,646		44
HeidelbergCement A.G.		1,246		60
Henkel A.G. & Co. KGaA		1,162		64
Hochtief A.G.*		347		17
K+S A.G. (Registered)		1,538		70
Linde A.G.		1,486		232
Merck KGaA		601		60
Metro A.G.		1,195		35
Muenchener Rueckversicherungs A.G. (Registered)		1,552		219
Salzgitter A.G.		322		13
SAP A.G.		8,180		483
Suedzucker A.G.		557		20
Wacker Chemie A.G.		152		11
				2,567
Greece - 0.0%
Coca Cola Hellenic Bottling Co. S.A.*		1,587		28
Hong Kong - 0.5%
Cathay Pacific Airways Ltd.		10,000		16
CLP Holdings Ltd.		15,599		133
Hang Seng Bank Ltd.		6,778		93
Hong Kong & China Gas Co. Ltd.		47,316		100
Li & Fung Ltd.		52,000		101
MTR Corp. Ltd.		12,791		44
				487
Ireland - 0.3%
CRH PLC		6,510		125
Experian PLC		9,113		129
Kerry Group PLC, Class A		1,234		54
				308

NORTHERN FUNDS QUARTERLY REPORT    27    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Israel - 0.0%
Delek Group Ltd.		44	$	7
Italy - 1.4%
Assicurazioni Generali S.p.A.		10,573		143
Atlantia S.p.A.		2,816		36
Autogrill S.p.A.		1,118		10
Enel Green Power S.p.A.		16,590		26
ENI S.p.A.		21,275		454
Fiat Industrial S.p.A.		7,107		70
Intesa Sanpaolo S.p.A.		91,240		131
Intesa Sanpaolo S.p.A. (RSP)		6,396		7
Pirelli & C. S.p.A.		2,308		24
Saipem S.p.A.		2,397		107
Snam S.p.A.		14,215		63
Telecom Italia S.p.A.		84,852		84
Tenaris S.A.		4,266		75
Terna Rete Elettrica Nazionale S.p.A.		11,270		41
UniCredit S.p.A.*		36,615		139
				1,410
Japan - 10.4%
Aeon Co. Ltd.		5,400		67
Aeon Credit Service Co. Ltd.		790		15
Aeon Mall Co. Ltd.		600		13
Air Water, Inc.		1,000		12
Aisin Seiki Co. Ltd.		1,800		60
Ajinomoto Co., Inc.		6,000		83
All Nippon Airways Co. Ltd.		7,000		20
Amada Co. Ltd.		3,000		18
Asahi Glass Co. Ltd.		9,000		61
Asahi Kasei Corp.		11,000		60
Asics Corp.		1,500		19
Astellas Pharma, Inc.		4,000		175
Benesse Holdings, Inc.		600		27
Brother Industries Ltd.		2,100		24
Canon, Inc.		10,000		400
Casio Computer Co. Ltd.		1,800		12
Central Japan Railway Co.		13		103
Chiyoda Corp.		1,000		12
Chugai Pharmaceutical Co. Ltd.		2,110		40
Chugoku Electric Power (The) Co., Inc.		2,600		43
Cosmo Oil Co. Ltd.		5,000		13
Dai Nippon Printing Co. Ltd.		5,000		39
Daicel Corp.		3,000		18
Daido Steel Co. Ltd.		2,000		12
Daikin Industries Ltd.		2,100		59
Dainippon Sumitomo Pharma Co. Ltd.		1,535		16
Daiwa House Industry Co. Ltd.		4,000		57
Denki Kagaku Kogyo K.K.		4,000		14
Denso Corp.		4,400		150
East Japan Railway Co.		3,100		195
Eisai Co. Ltd.		2,305		101
FamilyMart Co. Ltd.		600		27
Fast Retailing Co. Ltd.		500		100
Fuji Heavy Industries Ltd.		5,608		45
FUJIFILM Holdings Corp.		4,200		79
Fujitsu Ltd.		17,000		81
Furukawa Electric Co. Ltd.		5,000		12
GS Yuasa Corp.		3,000		14
Hino Motors Ltd.		2,000		14
Hitachi Chemical Co. Ltd.		1,017		16
Hitachi Construction Machinery Co. Ltd.		1,000		19
Hitachi High-Technologies Corp.		443		11
Hitachi Metals Ltd.		1,000		12
Honda Motor Co. Ltd.		14,500		505
Ibiden Co. Ltd.		1,200		22
Idemitsu Kosan Co. Ltd.		200		18
Inpex Corp.		20		112
Isetan Mitsukoshi Holdings Ltd.		3,600		38
Japan Steel Works (The) Ltd.		3,000		17
JS Group Corp.		2,500		53
JSR Corp.		1,600		28
JTEKT Corp.		2,200		23
Jupiter Telecommunications Co. Ltd.		17		17
Kaneka Corp.		2,000		11
Kansai Paint Co. Ltd.		2,000		21
Kao Corp.		4,800		132
Kawasaki Kisen Kaisha Ltd.*		7,000		14
KDDI Corp.		24		155
Keikyu Corp.		4,000		36
Keio Corp.		5,000		36
Kikkoman Corp.		1,000		12
Kobe Steel Ltd.		24,551		29
Komatsu Ltd.		8,200		197
Konica Minolta Holdings, Inc.		4,500		35
Kubota Corp.		10,000		92
Kuraray Co. Ltd.		3,300		43
Kurita Water Industries Ltd.		900		21
Kyocera Corp.		1,400		121
Kyowa Hakko Kirin Co. Ltd.		2,000		21

EQUITY INDEX FUNDS    28    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Japan - 10.4% continued
Lawson, Inc.		500	$	35
Makita Corp.		1,000		35
Marubeni Corp.		15,123		101
Marui Group Co. Ltd.		1,700		13
McDonald’s Holdings Co. Japan Ltd.		500		14
Mitsubishi Chemical Holdings Corp.		12,000		53
Mitsubishi Electric Corp.		17,000		142
Mitsubishi Gas Chemical Co., Inc.		3,000		17
Mitsubishi Motors Corp.*		35,910		36
Mitsubishi UFJ Financial Group, Inc.		113,100		541
Mitsubishi UFJ Lease & Finance Co. Ltd.		483		20
Mitsui Chemicals, Inc.		8,000		20
Mitsui Fudosan Co. Ltd.		7,000		136
Mitsui O.S.K. Lines Ltd.		8,000		29
Mizuho Financial Group, Inc.		200,273		339
Murata Manufacturing Co. Ltd.		1,815		95
Nabtesco Corp.		900		20
NGK Insulators Ltd.		2,000		22
NGK Spark Plug Co. Ltd.		1,000		13
Nidec Corp.		1,000		76
Nikon Corp.		3,000		91
Nippon Meat Packers, Inc.		2,000		26
Nippon Steel Corp.		46,000		104
Nippon Yusen K.K.		14,000		37
Nissan Motor Co. Ltd.		21,500		204
Nisshin Seifun Group, Inc.		1,500		18
Nisshin Steel Co. Ltd.		6,000		8
Nissin Foods Holdings Co. Ltd.		500		19
Nitto Denko Corp.		1,500		64
Nomura Research Institute Ltd.		866		19
NSK Ltd.		4,000		26
NTN Corp.		5,000		16
NTT Data Corp.		12		37
NTT DOCOMO, Inc.		139		231
Odakyu Electric Railway Co. Ltd.		5,000		50
Omron Corp.		1,800		38
Osaka Gas Co. Ltd.		17,000		71
Panasonic Corp.		20,000		163
Resona Holdings, Inc.		16,000		66
Ricoh Co. Ltd.		6,000		51
Rohm Co. Ltd.		900		35
Santen Pharmaceutical Co. Ltd.		700		29
Secom Co. Ltd.		1,900		87
Seiko Epson Corp.		1,016		10
Sekisui Chemical Co. Ltd.		4,000		37
Sekisui House Ltd.		5,000		47
Seven & I Holdings Co. Ltd.		6,800		205
Sharp Corp.		9,000		46
Shikoku Electric Power Co., Inc.		1,700		36
Shimizu Corp.		6,000		21
Shin-Etsu Chemical Co. Ltd.		3,700		204
Shizuoka Bank (The) Ltd.		5,000		51
Showa Shell Sekiyu K.K.		1,900		12
Softbank Corp.		7,700		286
Sony Corp.		9,100		130
Stanley Electric Co. Ltd.		1,333		21
Sumitomo Chemical Co. Ltd.		14,000		43
Sumitomo Electric Industries Ltd.		6,800		85
Sumitomo Heavy Industries Ltd.		5,000		22
Sumitomo Metal Industries Ltd.		32,000		53
Sumitomo Metal Mining Co. Ltd.		5,000		56
Sumitomo Mitsui Financial Group, Inc.		11,900		393
Sumitomo Rubber Industries Ltd.		1,400		18
Suruga Bank Ltd.		1,170		12
Suzuken Co. Ltd.		653		22
Suzuki Motor Corp.		3,071		63
Sysmex Corp.		671		27
T&D Holdings, Inc.		5,100		54
Taiyo Nippon Sanso Corp.		2,000		12
Takashimaya Co. Ltd.		2,000		15
Takeda Pharmaceutical Co. Ltd.		6,900		313
TDK Corp.		1,100		45
Teijin Ltd.		9,000		27
Tobu Railway Co. Ltd.		9,000		47
Toho Co. Ltd.		800		14
Toho Gas Co. Ltd.		4,000		25
Tokyo Gas Co. Ltd.		22,000		112
Tokyu Corp.		10,000		47
Toppan Printing Co. Ltd.		5,000		33
Toray Industries, Inc.		13,000		89
Tosoh Corp.		4,000		11
TOTO Ltd.		3,000		22
Toyo Seikan Kaisha Ltd.		1,300		16
Toyoda Gosei Co. Ltd.		500		12
Toyota Boshoku Corp.		500		6
Toyota Industries Corp.		1,300		37
Toyota Tsusho Corp.		1,900		36
Tsumura & Co.		500		13

NORTHERN FUNDS QUARTERLY REPORT    29    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Japan - 10.4% continued
Ube Industries Ltd.		10,000	$	23
Ushio, Inc.		800		10
Yakult Honsha Co. Ltd.		900		35
Yamada Denki Co. Ltd.		756		39
Yamaha Corp.		1,500		15
Yamaha Motor Co. Ltd.		2,700		26
Yamato Holdings Co. Ltd.		3,100		50
Yamazaki Baking Co. Ltd.		859		11
Yokogawa Electric Corp.		1,700		18
				10,537
Netherlands - 1.4%
Akzo Nobel N.V.		2,125		100
ASML Holding N.V.		3,702		189
DE Master Blenders 1753 N.V.*		5,100		57
Delta Lloyd N.V.		1,005		14
Fugro N.V. - CVA		590		36
Koninklijke Ahold N.V.		9,142		113
Koninklijke DSM N.V.		1,389		69
Koninklijke Philips Electronics N.V.		8,615		170
Koninklijke Vopak N.V.		619		40
LyondellBasell Industries N.V., Class A		2,845		115
Randstad Holding N.V.		1,167		34
Unilever N.V. - CVA		14,465		484
Wolters Kluwer N.V.		2,634		42
				1,463
New Zealand - 0.1%
Auckland International Airport Ltd.		8,445		17
Contact Energy Ltd.*		3,125		12
Fletcher Building Ltd.		5,780		27
				56
Norway - 0.4%
Aker Solutions ASA		1,622		23
DNB ASA		8,792		87
Norsk Hydro ASA		7,964		36
Orkla ASA		7,150		52
Statoil ASA		9,690		232
Veripos, Inc.*		261		—
				430
Portugal - 0.1%
EDP - Energias de Portugal S.A.		18,344		43
Galp Energia SGPS S.A.		1,929		25
Jeronimo Martins SGPS S.A.		1,861		31
Portugal Telecom SGPS S.A. (Registered)		6,139		27
				126
Singapore - 0.2%
CapitaMall Trust		20,000		30
Flextronics International Ltd.*		6,253		39
SembCorp Industries Ltd.		9,000		37
Singapore Airlines Ltd.		5,000		41
Singapore Press Holdings Ltd.		13,000		40
				187
Spain - 1.7%
Abertis Infraestructuras S.A.		2,836		38
Abertis Infraestructuras S.A.*		141		2
Acciona S.A.		196		12
ACS Actividades de Construccion y Servicios S.A.		1,387		30
Banco Bilbao Vizcaya Argentaria S.A.		42,198		304
Banco de Sabadell S.A.		18,762		37
Banco Santander S.A.		82,849		553
Distribuidora Internacional de Alimentacion S.A.*		4,984		23
Enagas S.A.		1,588		29
Ferrovial S.A.		3,419		39
Gas Natural SDG S.A.		3,421		44
Grifols S.A.*		1,110		28
Grifols S.A., Class B*		111		2
Iberdrola S.A.		34,673		164
Inditex S.A.		1,978		205
International Consolidated Airlines Group S.A.*		8,898		22
Red Electrica Corp. S.A.		1,018		44
Repsol YPF S.A.		7,186		116
Zardoya Otis S.A.		1,177		13
				1,705
Sweden - 1.8%
Alfa Laval AB		3,138		54
Assa Abloy AB, Class B		2,929		82
Atlas Copco AB, Class A		5,770		125
Atlas Copco AB, Class B		3,240		62
Autoliv, Inc.		813		44
Boliden AB		2,301		32
Electrolux AB, Class B		2,292		46
Hennes & Mauritz AB, Class B		8,302		298
Holmen AB, Class B		504		14
Investment AB Kinnevik		1,972		40

EQUITY INDEX FUNDS    30    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Sweden - 1.8% continued
Modern Times Group AB, Class B		496	$	23
Nordea Bank AB		22,549		195
Sandvik AB		9,095		117
Scania AB, Class B		3,009		52
Skandinaviska Enskilda Banken AB, Class A		12,721		83
Skanska AB, Class B		3,448		53
SKF AB, Class B		3,446		68
SSAB AB, Class A		1,306		11
Svenska Cellulosa AB, Class B		5,222		78
Swedbank AB, Class A		7,428		117
TeliaSonera AB		19,636		126
Volvo AB, Class B		12,604		144
				1,864
Switzerland - 3.5%
Adecco S.A. (Registered)		1,253		56
Aryzta A.G.*		824		41
Cie Financiere Richemont S.A., Class A (Bearer)		4,570		251
Geberit A.G. (Registered)*		365		72
Givaudan S.A. (Registered)*		78		76
Lindt & Spruengli A.G. (Registered)		1		37
Lindt & Spruengli A.G. (Participation Certificate)		8		25
Noble Corp.		2,100		68
Novartis A.G. (Registered)		20,426		1,139
Roche Holding A.G. (Genusschein)		6,248		1,079
Sika A.G. (Bearer)		17		33
STMicroelectronics N.V.		6,046		33
Sulzer A.G. (Registered)		197		23
Swiss Re A.G.		3,131		197
Syngenta A.G. (Registered)		828		283
Wolseley PLC		2,540		95
				3,508
United Kingdom - 9.7%
Aggreko PLC		2,417		79
AMEC PLC		3,087		49
Antofagasta PLC		3,571		61
Associated British Foods PLC		3,159		64
Balfour Beatty PLC		5,989		28
Barclays PLC		101,608		260
BG Group PLC		30,122		617
British Land Co. PLC		7,900		63
British Sky Broadcasting Group PLC		9,451		103
Bunzl PLC		2,940		48
Burberry Group PLC		3,892		81
Capita PLC		5,707		59
Capital Shopping Centres Group PLC		5,333		27
Centrica PLC		45,502		227
Compass Group PLC		17,226		181
Fresnillo PLC		1,723		40
GlaxoSmithKline PLC		44,883		1,018
HSBC Holdings PLC		160,222		1,413
Intertek Group PLC		1,416		60
Invensys PLC		7,871		27
J. Sainsbury PLC		11,470		54
Johnson Matthey PLC		1,999		69
Kingfisher PLC		21,447		97
Land Securities Group PLC		7,056		82
Lonmin PLC		1,377		17
Marks & Spencer Group PLC		14,325		73
National Grid PLC		31,360		332
Next PLC		1,491		75
Old Mutual PLC		44,138		105
Pearson PLC		7,397		147
Prudential PLC		22,183		257
Reckitt Benckiser Group PLC		5,851		309
Rexam PLC		8,344		55
RSA Insurance Group PLC		30,907		52
Segro PLC		7,168		24
Smiths Group PLC		3,466		55
SSE PLC		8,508		185
Standard Chartered PLC		21,122		460
Standard Life PLC		21,134		78
Subsea 7 S.A.		2,619		52
Tate & Lyle PLC		4,380		45
TESCO PLC		70,686		344
Tullow Oil PLC		8,194		189
Unilever PLC		11,332		381
United Utilities Group PLC		6,061		64
Vodafone Group PLC		442,884		1,244
Whitbread PLC		1,638		52
WM Morrison Supermarkets PLC		19,681		82
WPP PLC		11,442		139
Xstrata PLC		18,146		229
				9,852
United States - 50.3%
3M Co.		5,816		521

NORTHERN FUNDS QUARTERLY REPORT    31    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
United States - 50.3% continued
Abbott Laboratories		13,900	$	896
Accenture PLC, Class A		5,800		349
ACE Ltd.		2,984		221
Adobe Systems, Inc.*		4,489		145
Advance Auto Parts, Inc.		600		41
Advanced Micro Devices, Inc.*		5,600		32
Aetna, Inc.		3,063		119
Aflac, Inc.		4,045		172
Agilent Technologies, Inc.		3,160		124
Air Products & Chemicals, Inc.		1,822		147
Alcoa, Inc.		9,700		85
Allegheny Technologies, Inc.		900		29
Alliant Energy Corp.		1,000		46
American Express Co.		9,316		542
American Tower Corp.		3,500		245
American Water Works Co., Inc.		1,600		55
Ameriprise Financial, Inc.		1,900		99
AMETEK, Inc.		1,500		75
Analog Devices, Inc.		2,705		102
Annaly Capital Management, Inc.		8,800		148
Apache Corp.		3,399		299
Applied Materials, Inc.		11,091		127
Arch Capital Group Ltd.*		1,200		48
Assurant, Inc.		900		31
Autodesk, Inc.*		2,000		70
AutoZone, Inc.*		313		115
Avery Dennison Corp.		1,000		27
Avon Products, Inc.		3,900		63
Axis Capital Holdings Ltd.		900		29
Ball Corp.		1,440		59
Bank of New York Mellon (The) Corp.		10,538		231
Baxter International, Inc.		4,931		262
BB&T Corp.		6,340		196
Becton, Dickinson and Co.		1,913		143
Bed Bath & Beyond, Inc.*		2,150		133
Berkshire Hathaway, Inc., Class B*		8,097		675
Best Buy Co., Inc.		2,425		51
Biogen Idec, Inc.*		2,030		293
BlackRock, Inc.		1,200		204
BorgWarner, Inc.*		960		63
Boston Properties, Inc.		1,270		138
Bristol-Myers Squibb Co.		14,983		539
Bunge Ltd.		1,300		82
C.H. Robinson Worldwide, Inc.		1,470		86
CA, Inc.		3,000		81
Cablevision Systems Corp. (New York Group), Class A		1,991		26
Calpine Corp.*		2,969		49
Cameron International Corp.*		2,200		94
Campbell Soup Co.		1,800		60
Capital One Financial Corp.		4,500		246
CarMax, Inc.*		2,000		52
CBRE Group, Inc., Class A*		2,723		45
Celanese Corp., Class A		1,400		48
CenterPoint Energy, Inc.		3,680		76
CenturyLink, Inc.		5,396		213
Charles Schwab (The) Corp.		9,813		127
Chesapeake Energy Corp.		5,941		111
Chipotle Mexican Grill, Inc.*		294		112
Chubb (The) Corp.		2,432		177
Cigna Corp.		2,569		113
Cimarex Energy Co.		800		44
Cincinnati Financial Corp.		1,400		53
Cisco Systems, Inc.		47,956		823
Citrix Systems, Inc.*		1,600		134
Cliffs Natural Resources, Inc.		1,300		64
Clorox (The) Co.		1,000		72
CME Group, Inc.		561		150
Coca-Cola Enterprises, Inc.		2,800		79
Cognizant Technology Solutions Corp., Class A*		2,730		164
Colgate-Palmolive Co.		4,264		444
Comerica, Inc.		1,700		52
ConAgra Foods, Inc.		3,800		99
Concho Resources, Inc.*		873		74
Consolidated Edison, Inc.		2,623		163
Continental Resources, Inc.*		357		24
Cooper Industries PLC		1,406		96
Corning, Inc.		13,500		175
Coventry Health Care, Inc.		1,195		38
Crown Castle International Corp.*		2,557		150
CSX Corp.		9,480		212
Cummins, Inc.		1,559		151
Danaher Corp.		5,264		274
Darden Restaurants, Inc.		1,030		52
Deere & Co.		3,354		271
Dell, Inc.*		13,539		170
Denbury Resources, Inc.*		3,500		53
DENTSPLY International, Inc.		1,200		45

EQUITY INDEX FUNDS    32    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
United States - 50.3% continued
Devon Energy Corp.		3,305	$	192
Discover Financial Services		4,690		162
Discovery Communications, Inc., Class A*		1,300		70
Discovery Communications, Inc., Class C*		900		45
Dover Corp.		1,659		89
Dr Pepper Snapple Group, Inc.		1,789		78
DTE Energy Co.		1,500		89
Duke Realty Corp.		2,200		32
Dun & Bradstreet (The) Corp.		423		30
Eastman Chemical Co.		1,300		65
Eaton Corp.		2,900		115
Eaton Vance Corp.		1,000		27
Ecolab, Inc.		2,572		176
Edwards Lifesciences Corp.*		1,000		103
EMC Corp.*		18,100		464
Emerson Electric Co.		6,455		301
Energen Corp.		600		27
Energizer Holdings, Inc.*		600		45
EOG Resources, Inc.		2,389		215
EQT Corp.		1,305		70
Equifax, Inc.		1,100		51
Estee Lauder (The) Cos., Inc., Class A		2,100		114
Expeditors International of Washington, Inc.		1,890		73
Fastenal Co.		2,528		102
Federal Realty Investment Trust		600		62
FMC Technologies, Inc.*		2,200		86
Ford Motor Co.		31,200		299
Franklin Resources, Inc.		1,308		145
Frontier Communications Corp.		9,100		35
GameStop Corp., Class A		1,300		24
Gap (The), Inc.		2,875		79
General Mills, Inc.		5,660		218
Genuine Parts Co.		1,420		86
Genworth Financial, Inc., Class A*		4,672		26
Gilead Sciences, Inc.*		6,762		347
Google, Inc., Class A*		2,293		1,330
Green Mountain Coffee Roasters, Inc.*		1,221		27
H.J. Heinz Co.		2,900		158
Harley-Davidson, Inc.		1,955		89
Hasbro, Inc.		1,100		37
HCP, Inc.		3,700		163
Health Care REIT, Inc.		1,900		111
Henry Schein, Inc.*		833		65
Herbalife Ltd.		1,000		48
Hess Corp.		2,746		119
Hewlett-Packard Co.		17,483		352
Hillshire Brands Co.		1,020		30
Hormel Foods Corp.		1,400		43
Host Hotels & Resorts, Inc.		6,429		102
Hudson City Bancorp, Inc.		4,565		29
Humana, Inc.		1,447		112
IHS, Inc., Class A*		425		46
Illinois Tool Works, Inc.		3,921		207
Ingersoll-Rand PLC		2,580		109
Integrys Energy Group, Inc.		700		40
Intel Corp.		44,495		1,186
IntercontinentalExchange, Inc.*		580		79
International Business Machines Corp.		9,761		1,909
International Flavors & Fragrances, Inc.		700		38
International Paper Co.		3,722		108
Intuit, Inc.		2,400		142
Invesco Ltd.		4,100		93
Iron Mountain, Inc.		1,200		40
J.B. Hunt Transport Services, Inc.		800		48
J.C. Penney Co., Inc.		1,512		35
J.M. Smucker (The) Co.		1,000		76
Johnson & Johnson		24,401		1,649
Johnson Controls, Inc.		6,121		170
Joy Global, Inc.		934		53
Kellogg Co.		2,300		113
KeyCorp		8,619		67
Kimberly-Clark Corp.		3,535		296
Kinder Morgan Management LLC*		780		57
Kinder Morgan Management LLC - (Fractional Shares)*		336,725		—
Kohl’s Corp.		2,200		100
Kraft Foods, Inc., Class A		14,963		578
Kroger (The) Co.		4,700		109
Lam Research Corp.*		1,700		64
Legg Mason, Inc.		1,200		32
Level 3 Communications, Inc.*		1,400		31
Liberty Global, Inc., Class A*		1,300		65
Liberty Global, Inc., Class C*		1,000		48
Liberty Interactive Corp., Class A*		5,100		91
Liberty Media Corp. - Liberty Capital, Class A*		900		79
Liberty Property Trust		1,100		41
Life Technologies Corp.*		1,600		72
Lowe’s Cos., Inc.		11,000		313

NORTHERN FUNDS QUARTERLY REPORT    33    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
United States - 50.3% continued
M&T Bank Corp.		1,041	$	86
Macerich (The) Co.		1,200		71
Macy’s, Inc.		3,800		131
Manpower, Inc.		800		29
Marathon Oil Corp.		6,000		153
Marriott International, Inc. - (Fractional Shares)*		40,652		—
Marriott International, Inc., Class A		2,416		95
Marsh & McLennan Cos., Inc.		4,800		155
Martin Marietta Materials, Inc.		375		30
Masco Corp.		3,140		44
Mattel, Inc.		3,048		99
McCormick & Co., Inc. (Non Voting)		1,100		67
McDonald’s Corp.		9,102		806
MDU Resources Group, Inc.		1,800		39
Mead Johnson Nutrition Co.		1,834		148
MeadWestvaco Corp.		1,638		47
Medtronic, Inc.		9,300		360
Merck & Co., Inc.		27,000		1,127
Microchip Technology, Inc.		1,700		56
Mohawk Industries, Inc.*		565		39
Monster Beverage Corp.*		1,300		93
Motorola Solutions, Inc.		2,308		111
NASDAQ OMX Group (The), Inc.		1,100		25
National Oilwell Varco, Inc.		3,812		246
Netflix, Inc.*		500		34
New York Community Bancorp, Inc.		4,000		50
Newell Rubbermaid, Inc.		2,715		49
Newfield Exploration Co.*		1,300		38
NextEra Energy, Inc.		3,482		240
NIKE, Inc., Class B		3,230		284
NiSource, Inc.		2,500		62
Noble Energy, Inc.		1,600		136
Nordstrom, Inc.		1,557		77
Norfolk Southern Corp.		2,907		209
Northeast Utilities		2,811		109
Northern Trust Corp.(1) (2)		2,000		92
Nuance Communications, Inc.*		2,200		52
Nucor Corp.		2,874		109
NVIDIA Corp.*		5,354		74
NYSE Euronext		2,342		60
ONEOK, Inc.		1,800		76
Oracle Corp.		35,800		1,063
O’Reilly Automotive, Inc.*		1,100		92
Owens-Illinois, Inc.*		1,579		30
PACCAR, Inc.		2,975		117
Pall Corp.		1,000		55
Parker Hannifin Corp.		1,390		107
PartnerRe Ltd.		600		45
Patterson Cos., Inc.		881		30
Pentair, Inc.		900		34
People’s United Financial, Inc.		3,347		39
Pepco Holdings, Inc.		2,000		39
PepsiCo, Inc.		13,928		984
PetSmart, Inc.		1,000		68
PG&E Corp.		3,635		165
Pinnacle West Capital Corp.		1,000		52
Pioneer Natural Resources Co.		1,000		88
Pitney Bowes, Inc.		1,950		29
Plains Exploration & Production Co.*		1,000		35
PNC Financial Services Group, Inc.		4,729		289
Praxair, Inc.		2,644		287
Precision Castparts Corp.		1,300		214
Principal Financial Group, Inc.		2,702		71
Procter & Gamble (The) Co.		24,468		1,499
Progressive (The) Corp.		5,271		110
Prologis, Inc.		3,895		129
Prudential Financial, Inc.		4,072		197
QEP Resources, Inc.		1,649		49
QUALCOMM, Inc.		15,000		835
Quanta Services, Inc.*		1,800		43
Range Resources Corp.		1,300		80
Regency Centers Corp.		800		38
Regions Financial Corp.		12,583		85
RenaissanceRe Holdings Ltd.		418		32
Robert Half International, Inc.		1,200		34
Rock-Tenn Co., Class A		654		36
Rockwell Automation, Inc.		1,267		84
Rockwell Collins, Inc.		1,332		66
Roper Industries, Inc.		889		88
Ross Stores, Inc.		2,102		131
Royal Caribbean Cruises Ltd.		1,200		31
Safeway, Inc.		2,300		42
Salesforce.com, Inc.*		1,100		152
SBA Communications Corp., Class A*		1,000		57
Scripps Networks Interactive, Inc., Class A		800		45
Sealed Air Corp.		1,500		23
Sempra Energy		2,027		140
Sherwin-Williams (The) Co.		800		106

EQUITY INDEX FUNDS    34    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
United States - 50.3% continued
Sigma-Aldrich Corp.		1,100	$	81
Simon Property Group, Inc.		2,641		411
Sims Metal Management Ltd.		1,335		13
Southwest Airlines Co.		1,600		15
Southwestern Energy Co.*		3,200		102
Spectra Energy Corp.		5,900		171
Sprint Nextel Corp.*		26,752		87
Staples, Inc.		6,355		83
Starbucks Corp.		6,712		358
Starwood Hotels & Resorts Worldwide, Inc.		1,780		94
State Street Corp.		4,426		198
Sunoco, Inc.		1,000		48
Superior Energy Services, Inc.*		1,378		28
Symantec Corp.*		6,700		98
Sysco Corp.		5,317		158
T. Rowe Price Group, Inc.		2,129		134
Target Corp.		5,571		324
Teradata Corp.*		1,500		108
Texas Instruments, Inc.		10,072		289
Thomson Reuters Corp.		3,397		97
Tiffany & Co.		1,067		56
Time Warner Cable, Inc.		2,800		230
Time Warner, Inc.		8,600		331
TJX Cos., Inc.		6,636		285
Travelers (The) Cos., Inc.		3,497		223
Tyco International Ltd.		4,000		211
U.S. Bancorp		17,005		547
Ultra Petroleum Corp.*		1,400		32
Union Pacific Corp.		4,300		513
United Parcel Service, Inc., Class B		6,441		507
Ventas, Inc.		2,600		164
Vertex Pharmaceuticals, Inc.*		1,900		106
VF Corp.		811		108
Virgin Media, Inc.		2,300		56
Vornado Realty Trust		1,436		121
W.W. Grainger, Inc.		511		98
Washington Post (The) Co., Class B		50		19
Waste Management, Inc.		3,700		124
Waters Corp.*		800		64
Weatherford International Ltd.*		6,900		87
WellPoint, Inc.		2,905		185
Whirlpool Corp.		660		40
Whiting Petroleum Corp.*		1,042		43
Whole Foods Market, Inc.		1,500		143
Williams (The) Cos., Inc.		5,300		153
Windstream Corp.		5,090		49
Wisconsin Energy Corp.		2,100		83
Xcel Energy, Inc.		4,400		125
Xerox Corp.		11,231		88
Xylem, Inc.		1,600		40
Yahoo!, Inc.*		10,100		160
				50,815
Total Common Stocks(3) (Cost $89,403)(3)				98,687
PREFERRED STOCKS - 0.2%
Germany - 0.2%
Bayerische Motoren Werke A.G.		470		23
Henkel A.G. & Co. KGaA		1,616		107
ProSiebenSat.1 Media A.G.		736		17
				147
Total Preferred Stocks(3) (Cost $111)(3)				147
RIGHTS - 0.0%
France - 0.0%
Air Liquide S.A.*		2		—
Spain - 0.0%
Repsol YPF S.A.*		7,172		5
Zardoya Otis S.A.*		1,177		1
				6
Total Rights(3) (Cost $ — )(3)				6
INVESTMENT COMPANIES - 0.2%
Northern Institutional Funds - Diversified Assets Portfolio(4) (5)		225,393		225
Total Investment Companies (Cost $225)				225
Total Investments - 98.0% (Cost $89,739)				99,065
Other Assets less Liabilities - 2.0%				2,011
NET ASSETS - 100.0%			$	101,076

(1) At March 31, 2012, the value of the Fund’s investment in Northern Trust Corp. was approximately $95,000. There were no purchases or sales during the

NORTHERN FUNDS QUARTERLY REPORT    35    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

three months ended June 30, 2012. The change in net unrealized depreciation during the three months ended June 30, 2012, was approximately $3,000.

(2) Investment in affiliate.

(3) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.

(4) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $2,524,000 with net sales of approximately $2,299,000 during the three months ended June 30, 2012.

(5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	90,516
Gross tax appreciation of investments	$	14,800
Gross tax depreciation of investments		(6,251	)
Net tax appreciation of investments	$	8,549

At June 30, 2012, the Global Sustainability Index Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
E-mini S&P 500 (United States Dollar)		17	$	1,153		Long		9/12	$	71
Euro Stoxx 50 (Euro)		15		428		Long		9/12		24
FTSE 100 Index (British Pound)		4		346		Long		9/12		9
Nikkei 225 (Japenese Yen)		3		171		Long		9/12		14
S&P/TSX 60 (Canadian Dollar)		8		1,039		Long		9/12		17
SGX Mini Nikkei 225 (Japanese Yen)		2		112		Long		9/12		8
Total									$	143

At June 30, 2012, the Global Sustainability Index Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG- TERM INVESTMENTS
United States Dollar		51.6	%
Euro		10.7
Japanese Yen		10.7
British Pound		10.1
Canadian Dollar		5.5
All other currencies less than 5%		11.4
Total		100.0	%

At June 30, 2012, the industry sectors for the Global Sustainability Index Fund were:

INDUSTRY SECTOR	% OF LONG- TERM INVESTMENTS
Consumer Discretionary		11.3	%
Consumer Staples		10.6
Energy		7.0
Financials		20.6
Health Care		11.7
Industrials		11.5
Information Technology		13.1
Materials		7.2
Telecommunication Services		3.3
Utilities		3.7
Total		100.0	%

At June 30, 2012, the Global Sustainability Index Fund had outstanding foreign currency exchange contracts as follows:

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
Australian Dollar		195	United States Dollar		193		9/19/12	$	(5	)
British Pound		23	United States Dollar		36		9/19/12		—	*
Canadian Dollar		103	United States Dollar		100		9/19/12		(1	)
Norwegian Krone		299	United States Dollar		50		9/19/12		—	*
Swedish Krona		860	United States Dollar		122		9/19/12		(2	)
Swiss Franc		217	United States Dollar		228		9/19/12		(1	)
United States Dollar		125	Euro		99		9/19/12		1
United States Dollar		162	Japanese Yen		12,833		9/19/12		(1	)
Total								$	(9	)

* Amount rounds to less than one thousand.

EQUITY INDEX FUNDS    36    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on June 30, 2012 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Global Sustainability Index Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	6,533	$	4,608		$	—	$	11,141
Consumer Staples		6,147		4,209			—		10,356
Energy		4,377		2,521			—		6,898
Financials		10,160		10,198			—		20,358
Health Care		6,910		4,646			—		11,556
Industrials		5,973		5,413			—		11,386
Information Technology		11,020		1,929			—		12,949
Materials		2,708		4,415			—		7,123
Telecommunication Services		839		2,396			—		3,235
Utilities		1,713		1,972			—		3,685
Preferred Stocks
Consumer Discretionary		—		40			—		40
Consumer Staples		—		107			—		107
Rights
Energy		—		5			—		5
Industrials		—		1			—		1
Investment Companies		225		—			—		225
Total Investments	$	56,605	$	42,460		$	—	$	99,065
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	143	$	—		$	—	$	143
Foreign Currency Exchange Contracts		—		1			—		1
Liabilities
Foreign Currency Exchange Contracts		—		(10	)		—		(10	)
Total Other Financial Instruments	$	143	$	(9	)	$	—	$	134

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    37    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8%
Australia - 8.5%
AGL Energy Ltd.		83,420	$	1,265
Alumina Ltd.		381,699		313
Amcor Ltd.		189,064		1,377
AMP Ltd.		440,344		1,748
APA Group		101,390		519
Asciano Ltd.		152,118		684
ASX Ltd.		27,586		846
Australia & New Zealand Banking Group Ltd.		418,678		9,502
Bendigo and Adelaide Bank Ltd.		57,533		438
BGP Holdings PLC - (Fractional Shares)*		980,773		—
BHP Billiton Ltd.		504,772		16,449
Boral Ltd.		116,184		353
Brambles Ltd.		239,917		1,521
Caltex Australia Ltd.		21,625		302
Campbell Brothers Ltd.		10,479		587
Centro Retail Australia		200,432		407
CFS Retail Property Trust		321,164		639
Coca-Cola Amatil Ltd.		89,450		1,228
Cochlear Ltd.		8,958		607
Commonwealth Bank of Australia		247,042		13,516
Computershare Ltd.		69,658		532
Crown Ltd.		63,171		552
CSL Ltd.		81,528		3,306
Dexus Property Group		744,615		712
Echo Entertainment Group Ltd.		94,383		414
Echo Entertainment Group Ltd.*		18,877		64
Fairfax Media Ltd.		352,965		202
Fortescue Metals Group Ltd.		220,312		1,126
Goodman Group		242,457		919
GPT Group		229,172		775
Harvey Norman Holdings Ltd.		83,010		167
Iluka Resources Ltd.		64,540		756
Incitec Pivot Ltd.		257,201		758
Insurance Australia Group Ltd.		328,655		1,177
James Hardie Industries S.E.		68,570		562
Leighton Holdings Ltd.		23,718		400
Lend Lease Group		84,305		626
Lynas Corp. Ltd.*		281,442		249
Macquarie Group Ltd.		51,768		1,393
Metcash Ltd.		136,927		474
Mirvac Group		526,243		689
National Australia Bank Ltd.		349,758		8,492
Newcrest Mining Ltd.		118,950		2,768
Orica Ltd.		56,112		1,428
Origin Energy Ltd.		170,930		2,149
OZ Minerals Ltd.		50,435		409
Qantas Airways Ltd.*		181,746		201
QBE Insurance Group Ltd.		180,912		2,494
QR National Ltd.		269,823		946
Ramsay Health Care Ltd.		20,299		471
Rio Tinto Ltd.		67,800		3,984
Santos Ltd.		146,259		1,606
Sims Metal Management Ltd.		25,916		257
Sonic Healthcare Ltd.		58,154		758
SP AusNet		257,354		269
Stockland		358,945		1,136
Suncorp Group Ltd.		199,526		1,665
Sydney Airport		61,918		184
TABCORP Holdings Ltd.		110,859		334
Tatts Group Ltd.		210,786		568
Telstra Corp. Ltd.		675,592		2,559
Toll Holdings Ltd.		104,955		431
Transurban Group		205,214		1,196
Wesfarmers Ltd.		156,654		4,821
Westfield Group		340,861		3,320
Westfield Retail Trust		455,511		1,335
Westpac Banking Corp.		477,100		10,376
Whitehaven Coal Ltd.		68,853		296
Woodside Petroleum Ltd.		101,240		3,241
Woolworths Ltd.		192,139		5,283
WorleyParsons Ltd.		32,629		847
				131,978
Austria - 0.3%
Andritz A.G.		11,425		588
Erste Group Bank A.G.*		33,479		636
Immofinanz A.G.*		150,035		478
OMV A.G.		23,036		723
Raiffeisen Bank International A.G.		8,048		264
Telekom Austria A.G.		50,566		497
Verbund A.G.		11,305		259
Vienna Insurance Group A.G. Wiener Versicherung Gruppe		6,008		243
Voestalpine A.G.		16,929		449
				4,137
Belgium - 1.1%
Ageas		376,977		747
Anheuser-Busch InBev N.V.		125,549		9,761
Belgacom S.A.		23,786		676

EQUITY INDEX FUNDS    38    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Belgium - 1.1% continued
Colruyt S.A.		11,561	$	515
Delhaize Group S.A.		15,808		579
Groupe Bruxelles Lambert S.A.		12,632		859
KBC Groep N.V.		25,486		541
Mobistar S.A.		4,421		151
Solvay S.A., Class A		9,182		908
Telenet Group Holding N.V.		9,017		394
UCB S.A.		17,280		872
Umicore S.A.		17,800		823
				16,826
Denmark - 1.1%
A.P. Moller - Maersk A/S, Class A		84		525
A.P. Moller - Maersk A/S, Class B		204		1,343
Carlsberg A/S, Class B		16,584		1,307
Coloplast A/S, Class B		3,669		660
Danske Bank A/S*		102,006		1,421
DSV A/S		29,333		582
Novo Nordisk A/S, Class B		63,696		9,216
Novozymes A/S, Class B		38,409		996
TDC A/S		75,044		522
Tryg A/S		3,907		219
William Demant Holding A/S*		4,211		378
				17,169
Finland - 0.7%
Elisa OYJ		22,520		453
Fortum OYJ		68,924		1,310
Kesko OYJ, Class B		10,115		264
Kone OYJ, Class B		24,310		1,472
Metso OYJ		20,092		696
Neste Oil OYJ		20,432		230
Nokia OYJ		584,748		1,205
Nokian Renkaat OYJ		17,314		660
Orion OYJ, Class B		14,311		271
Pohjola Bank PLC, Class A		21,587		252
Sampo OYJ, Class A		65,957		1,715
Stora Enso OYJ, Class R		89,371		552
UPM-Kymmene OYJ		82,726		938
Wartsila OYJ		26,377		867
				10,885
France - 8.7%
Accor S.A.		22,946		722
Aeroports de Paris		4,651		351
Air Liquide S.A.		48,646		5,566
Alcatel-Lucent*		365,654		608
Alstom S.A.		32,545		1,034
ArcelorMittal		146,684		2,266
Arkema S.A.		9,677		634
AtoS		8,586		514
AXA S.A.		276,629		3,703
BNP Paribas S.A.		153,456		5,924
Bouygues S.A.		29,787		803
Bureau Veritas S.A.		8,480		754
Cap Gemini S.A.		23,146		853
Carrefour S.A.		90,296		1,669
Casino Guichard Perrachon S.A.		8,770		770
Christian Dior S.A.		8,644		1,191
Cie de St-Gobain		62,792		2,324
Cie Generale de Geophysique-Veritas*		20,338		526
Cie Generale des Establissements Michelin		29,115		1,904
Cie Generale d’Optique Essilor International S.A.		31,884		2,962
CNP Assurances		23,640		289
Credit Agricole S.A.*		158,194		698
Danone S.A.		90,282		5,605
Dassault Systemes S.A.		9,400		883
Edenred		26,591		755
Electricite de France S.A.		37,532		836
Eurazeo		4,489		173
Eutelsat Communications S.A.		20,515		631
Fonciere Des Regions		3,884		280
France Telecom S.A.		289,145		3,805
GDF Suez		193,688		4,621
Gecina S.A.		3,387		303
Groupe Eurotunnel S.A. (Registered)		90,718		738
ICADE		3,686		280
Iliad S.A.		3,610		522
Imerys S.A.		5,447		278
JC Decaux S.A.		10,462		231
Klepierre		14,800		488
Lafarge S.A.		29,101		1,302
Lagardere S.C.A.		18,314		511
Legrand S.A.		37,181		1,265
L’Oreal S.A.		37,428		4,385
LVMH Moet Hennessy Louis Vuitton S.A.		39,713		6,053
Natixis		145,149		393
Pernod-Ricard S.A.		33,114		3,543
Peugeot S.A.*		36,661		363
PPR		11,911		1,701

NORTHERN FUNDS QUARTERLY REPORT    39    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
France - 8.7% continued
Publicis Groupe S.A.		22,638	$	1,035
Remy Cointreau S.A.		3,553		389
Renault S.A.		30,121		1,208
Rexel S.A.		16,965		290
Safran S.A.		35,941		1,334
Sanofi		188,760		14,315
Schneider Electric S.A.		81,436		4,538
SCOR S.E.		24,929		605
SES S.A.		44,238		1,046
Societe BIC S.A.		4,329		447
Societe Generale S.A.*		109,019		2,570
Sodexo		14,788		1,152
Suez Environnement Co.		43,634		470
Technip S.A.		15,364		1,603
Thales S.A.		13,825		458
Total S.A.		331,475		14,960
Unibail-Rodamco S.E.		14,352		2,648
Vallourec S.A.		16,134		662
Veolia Environnement S.A.		52,802		668
Vinci S.A.		70,469		3,298
Vivendi S.A.		200,977		3,736
Wendel S.A.		5,114		378
Zodiac Aerospace		5,380		547
				134,367
Germany - 7.2%
Adidas A.G.		32,465		2,329
Allianz S.E. (Registered)		71,165		7,156
Axel Springer A.G.		6,071		261
BASF S.E.		143,583		9,978
Bayer A.G. (Registered)		129,036		9,305
Bayerische Motoren Werke A.G.		51,836		3,756
Beiersdorf A.G.		15,883		1,031
Brenntag A.G.		7,113		787
Celesio A.G.		13,212		216
Commerzbank A.G.*		570,149		969
Continental A.G.		12,669		1,056
Daimler A.G. (Registered)		141,699		6,373
Deutsche Bank A.G. (Registered)		145,296		5,281
Deutsche Boerse A.G.		30,401		1,641
Deutsche Lufthansa A.G. (Registered)		35,236		408
Deutsche Post A.G. (Registered)		131,916		2,336
Deutsche Telekom A.G. (Registered)		437,761		4,803
E.ON A.G.		281,203		6,057
Fraport A.G. Frankfurt Airport Services Worldwide		5,546		299
Fresenius Medical Care A.G. & Co. KGaA		32,659		2,312
Fresenius S.E. & Co. KGaA		19,493		2,021
GEA Group A.G.		27,061		719
Hannover Rueckversicherung A.G. (Registered)		9,382		557
HeidelbergCement A.G.		22,185		1,065
Henkel A.G. & Co. KGaA		20,546		1,139
Hochtief A.G.*		4,872		236
Hugo Boss A.G.		3,288		325
Infineon Technologies A.G.		169,204		1,147
K+S A.G. (Registered)		26,677		1,217
Kabel Deutschland Holding A.G.*		14,011		872
Lanxess A.G.		12,939		816
Linde A.G.		26,663		4,153
MAN S.E.		6,654		680
Merck KGaA		10,030		1,001
Metro A.G.		20,394		595
Muenchener Rueckversicherungs A.G. (Registered)		28,070		3,961
RWE A.G.		76,416		3,124
Salzgitter A.G.		5,933		244
SAP A.G.		143,979		8,503
Siemens A.G. (Registered)		128,739		10,822
Suedzucker A.G.		10,248		362
ThyssenKrupp A.G.		59,654		972
United Internet A.G. (Registered)		13,911		239
Volkswagen A.G.		4,715		711
Wacker Chemie A.G.		2,390		164
				111,999
Greece - 0.0%
Coca Cola Hellenic Bottling Co. S.A.*		31,601		560
OPAP S.A.		33,825		213
				773
Hong Kong - 3.0%
AIA Group Ltd.		1,603,113		5,528
ASM Pacific Technology Ltd.		31,400		400
Bank of East Asia Ltd.		214,660		773
BOC Hong Kong Holdings Ltd.		573,000		1,760
Cathay Pacific Airways Ltd.		178,000		288
Cheung Kong Holdings Ltd.		216,000		2,666
Cheung Kong Infrastructure Holdings Ltd.		75,000		452
CLP Holdings Ltd.		286,501		2,437

EQUITY INDEX FUNDS    40    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Hong Kong - 3.0% continued
First Pacific Co. Ltd.		325,126	$	338
Foxconn International Holdings Ltd.*		344,000		125
Galaxy Entertainment Group Ltd.*		230,612		579
Hang Lung Group Ltd.		135,000		832
Hang Lung Properties Ltd.		354,000		1,205
Hang Seng Bank Ltd.		120,300		1,649
Henderson Land Development Co. Ltd.		148,917		827
HKT Trust/HKT Ltd.		1		—
Hong Kong & China Gas Co. Ltd.		807,626		1,716
Hong Kong Exchanges and Clearing Ltd.		159,400		2,287
Hopewell Holdings Ltd.		83,000		237
Hutchison Whampoa Ltd.		331,000		2,863
Hysan Development Co. Ltd.		95,212		362
Kerry Properties Ltd.		116,199		498
Li & Fung Ltd.		881,600		1,711
Lifestyle International Holdings Ltd.		72,000		159
Link REIT (The)		350,073		1,431
MGM China Holdings Ltd.		153,070		235
MTR Corp.		226,852		776
New World Development Co. Ltd.		552,251		652
Noble Group Ltd.		601,618		537
NWS Holdings Ltd.		224,432		327
Orient Overseas International Ltd.		36,200		177
PCCW Ltd.		666,000		245
Power Assets Holdings Ltd.		215,500		1,618
Sands China Ltd.		380,528		1,219
Shangri-La Asia Ltd.		249,000		478
Sino Land Co. Ltd.		452,559		687
SJM Holdings Ltd.		305,683		570
Sun Hung Kai Properties Ltd.		245,708		2,916
Swire Pacific Ltd., Class A		106,500		1,242
Wharf Holdings Ltd.		238,300		1,325
Wheelock & Co. Ltd.		138,000		524
Wing Hang Bank Ltd.		27,307		265
Wynn Macau Ltd.		243,393		572
Yangzijiang Shipbuilding Holdings Ltd.		288,566		232
Yue Yuen Industrial Holdings Ltd.		118,000		371
				46,091
Ireland - 0.7%
CRH PLC		112,438		2,162
Elan Corp. PLC*		78,503		1,144
Experian PLC		155,959		2,203
Irish Bank Resolution Corp. Ltd.(1) †*		93,434		—
Kerry Group PLC, Class A		23,472		1,028
Ryanair Holdings PLC ADR*		5,370		163
Shire PLC		87,416		2,513
WPP PLC		195,973		2,382
				11,595
Israel - 0.6%
Bank Hapoalim B.M.		164,716		510
Bank Leumi Le-Israel B.M.*		201,096		490
Bezeq The Israeli Telecommunication Corp. Ltd.		313,665		332
Delek Group Ltd.		694		103
Elbit Systems Ltd.		3,612		125
Israel (The) Corp. Ltd.		362		204
Israel Chemicals Ltd.		70,122		774
Mizrahi Tefahot Bank Ltd.*		18,872		147
NICE Systems Ltd.*		9,530		348
Teva Pharmaceutical Industries Ltd.		146,833		5,788
				8,821
Italy - 2.1%
Assicurazioni Generali S.p.A.		183,223		2,487
Atlantia S.p.A.		51,654		660
Autogrill S.p.A.		18,014		164
Banca Monte dei Paschi di Siena S.p.A.*		1,001,375		251
Banco Popolare Scarl*		276,332		371
Enel Green Power S.p.A.		268,371		426
Enel S.p.A.		1,027,337		3,315
Eni S.p.A.		375,112		8,006
Exor S.p.A.		10,009		216
Fiat Industrial S.p.A.		133,756		1,318
Fiat S.p.A.*		135,943		688
Finmeccanica S.p.A.*		62,018		251
Intesa Sanpaolo S.p.A.		1,577,674		2,257
Intesa Sanpaolo S.p.A. (RSP)		146,243		167
Luxottica Group S.p.A.		17,984		631
Mediaset S.p.A.		113,054		198
Mediobanca S.p.A.		83,207		368
Pirelli & C. S.p.A.		37,884		400
Prysmian S.p.A.		31,048		464
Saipem S.p.A.		41,110		1,831
Snam S.p.A.		253,200		1,129
Telecom Italia S.p.A.		1,467,228		1,446
Telecom Italia S.p.A. (RSP)		946,404		761
Tenaris S.A.		73,389		1,283
Terna - Rete Elettrica Nazionale S.p.A.		206,888		745
UniCredit S.p.A.*		632,586		2,397

NORTHERN FUNDS QUARTERLY REPORT    41    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Italy - 2.1% continued
Unione di Banche Italiane S.c.p.A.		128,868	$	423
				32,653
Japan - 21.3%
ABC-Mart, Inc.		3,900		146
Advantest Corp.		24,400		382
Aeon Co. Ltd.		93,800		1,169
Aeon Credit Service Co. Ltd.		12,900		239
Aeon Mall Co. Ltd.		10,900		232
Air Water, Inc.		22,569		273
Aisin Seiki Co. Ltd.		29,700		988
Ajinomoto Co., Inc.		101,000		1,404
Alfresa Holdings Corp.		6,000		318
All Nippon Airways Co. Ltd.		134,000		380
Amada Co. Ltd.		59,000		350
Aozora Bank Ltd.		100,000		239
Asahi Glass Co. Ltd.		159,000		1,070
Asahi Group Holdings Ltd.		60,700		1,304
Asahi Kasei Corp.		199,000		1,080
Asics Corp.		22,300		283
Astellas Pharma, Inc.		69,100		3,019
Bank of Kyoto (The) Ltd.		53,000		401
Bank of Yokohama (The) Ltd.		192,000		907
Benesse Holdings, Inc.		10,400		465
Bridgestone Corp.		101,400		2,326
Brother Industries Ltd.		35,300		404
Canon, Inc.		176,800		7,080
Casio Computer Co. Ltd.		36,100		237
Central Japan Railway Co.		233		1,842
Chiba Bank (The) Ltd.		120,000		721
Chiyoda Corp.		23,746		291
Chubu Electric Power Co., Inc.		101,400		1,647
Chugai Pharmaceutical Co. Ltd.		34,755		658
Chugoku Bank (The) Ltd.		27,000		352
Chugoku Electric Power (The) Co., Inc.		46,200		761
Citizen Holdings Co. Ltd.		42,400		249
Coca-Cola West Co. Ltd.		10,300		180
Cosmo Oil Co. Ltd.		88,000		224
Credit Saison Co. Ltd.		25,300		561
Dai Nippon Printing Co. Ltd.		87,000		681
Daicel Corp.		44,000		270
Daido Steel Co. Ltd.		45,000		280
Daihatsu Motor Co. Ltd.		30,000		526
Dai-ichi Life Insurance (The) Co. Ltd.		1,334		1,545
Daiichi Sankyo Co. Ltd.		104,300		1,756
Daikin Industries Ltd.		36,900		1,036
Dainippon Sumitomo Pharma Co. Ltd.		25,000		255
Daito Trust Construction Co. Ltd.		11,500		1,091
Daiwa House Industry Co. Ltd.		82,000		1,164
Daiwa Securities Group, Inc.		257,000		968
Dena Co. Ltd.		17,000		451
Denki Kagaku Kogyo K.K.		73,000		255
Denso Corp.		76,000		2,588
Dentsu, Inc.		28,418		841
East Japan Railway Co.		53,022		3,329
Eisai Co. Ltd.		39,800		1,748
Electric Power Development Co. Ltd.		18,900		496
FamilyMart Co. Ltd.		9,100		417
FANUC Corp.		29,900		4,913
Fast Retailing Co. Ltd.		8,300		1,666
Fuji Electric Co. Ltd.		89,000		217
Fuji Heavy Industries Ltd.		90,000		727
FUJIFILM Holdings Corp.		72,000		1,361
Fujitsu Ltd.		288,000		1,380
Fukuoka Financial Group, Inc.		118,000		461
Furukawa Electric Co. Ltd.		93,000		220
Gree, Inc.		14,519		292
GS Yuasa Corp.		57,000		261
Gunma Bank (The) Ltd.		59,000		279
Hachijuni Bank (The) Ltd.		62,523		325
Hakuhodo DY Holdings, Inc.		3,610		239
Hamamatsu Photonics K.K.		10,894		369
Hankyu Hanshin Holdings, Inc.		182,000		919
Hino Motors Ltd.		41,000		296
Hirose Electric Co. Ltd.		4,600		455
Hisamitsu Pharmaceutical Co., Inc.		9,100		448
Hitachi Chemical Co. Ltd.		15,900		249
Hitachi Construction Machinery Co. Ltd.		16,500		311
Hitachi High-Technologies Corp.		10,500		259
Hitachi Ltd.		704,000		4,330
Hitachi Metals Ltd.		25,000		298
Hokkaido Electric Power Co., Inc.		27,600		357
Hokuriku Electric Power Co.		25,600		398
Honda Motor Co. Ltd.		254,800		8,877
Hoya Corp.		69,200		1,525
Ibiden Co. Ltd.		19,500		352
Idemitsu Kosan Co. Ltd.		3,600		322
IHI Corp.		204,000		435
Inpex Corp.		344		1,929

EQUITY INDEX FUNDS    42    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Japan - 21.3% continued
Isetan Mitsukoshi Holdings Ltd.		57,400	$	609
Isuzu Motors Ltd.		185,000		989
ITOCHU Corp.		233,900		2,455
Itochu Techno-Solutions Corp.		3,900		189
Iyo Bank (The) Ltd.		38,000		303
J. Front Retailing Co. Ltd.		78,200		393
Japan Petroleum Exploration Co.		4,400		168
Japan Prime Realty Investment Corp.		109		307
Japan Real Estate Investment Corp.		83		763
Japan Retail Fund Investment Corp.		283		449
Japan Steel Works (The) Ltd.		50,000		276
Japan Tobacco, Inc.		140,400		4,161
JFE Holdings, Inc.		72,400		1,211
JGC Corp.		33,000		955
Joyo Bank (The) Ltd.		103,000		469
JS Group Corp.		41,300		874
JSR Corp.		27,500		477
JTEKT Corp.		33,200		343
Jupiter Telecommunications Co. Ltd.		335		342
JX Holdings, Inc.		348,270		1,789
Kajima Corp.		129,000		379
Kamigumi Co. Ltd.		39,000		311
Kaneka Corp.		48,000		266
Kansai Electric Power (The) Co., Inc.		116,500		1,396
Kansai Paint Co. Ltd.		33,000		353
Kao Corp.		81,600		2,251
Kawasaki Heavy Industries Ltd.		220,000		602
Kawasaki Kisen Kaisha Ltd.*		114,000		226
KDDI Corp.		423		2,729
Keikyu Corp.		72,000		655
Keio Corp.		90,000		653
Keisei Electric Railway Co. Ltd.		40,000		338
Keyence Corp.		7,096		1,755
Kikkoman Corp.		27,000		334
Kinden Corp.		24,000		158
Kintetsu Corp.		257,000		1,025
Kirin Holdings Co. Ltd.		137,000		1,615
Kobe Steel Ltd.		389,000		467
Koito Manufacturing Co. Ltd.		14,814		207
Komatsu Ltd.		146,000		3,500
Konami Corp.		14,900		338
Konica Minolta Holdings, Inc.		75,000		591
Kubota Corp.		172,000		1,587
Kuraray Co. Ltd.		53,200		689
Kurita Water Industries Ltd.		18,100		419
Kyocera Corp.		23,700		2,047
Kyowa Hakko Kirin Co. Ltd.		42,000		432
Kyushu Electric Power Co., Inc.		67,400		800
Lawson, Inc.		9,400		658
Mabuchi Motor Co. Ltd.		3,700		147
Makita Corp.		17,100		601
Marubeni Corp.		260,000		1,731
Marui Group Co. Ltd.		36,100		276
Maruichi Steel Tube Ltd.		7,100		153
Mazda Motor Corp.*		403,000		547
McDonald’s Holdings Co. Japan Ltd.		10,900		307
Medipal Holdings Corp.		23,400		331
MEIJI Holdings Co. Ltd.		9,712		446
Miraca Holdings, Inc.		8,405		349
Mitsubishi Chemical Holdings Corp.		213,000		938
Mitsubishi Corp.		219,100		4,425
Mitsubishi Electric Corp.		301,000		2,509
Mitsubishi Estate Co. Ltd.		195,000		3,498
Mitsubishi Gas Chemical Co., Inc.		64,000		364
Mitsubishi Heavy Industries Ltd.		471,000		1,913
Mitsubishi Logistics Corp.		19,000		201
Mitsubishi Materials Corp.		179,000		518
Mitsubishi Motors Corp.*		605,000		609
Mitsubishi Tanabe Pharma Corp.		35,200		506
Mitsubishi UFJ Financial Group, Inc.		1,991,865		9,533
Mitsubishi UFJ Lease & Finance Co. Ltd.		9,500		396
Mitsui & Co. Ltd.		270,500		4,014
Mitsui Chemicals, Inc.		133,000		333
Mitsui Fudosan Co. Ltd.		130,000		2,522
Mitsui O.S.K. Lines Ltd.		163,000		587
Mizuho Financial Group, Inc.		3,565,118		6,036
MS&AD Insurance Group Holdings		79,750		1,396
Murata Manufacturing Co. Ltd.		31,497		1,652
Nabtesco Corp.		15,407		343
Namco Bandai Holdings, Inc.		26,800		368
NEC Corp.*		402,000		624
Nexon Co. Ltd.*		17,000		333
NGK Insulators Ltd.		45,000		497
NGK Spark Plug Co. Ltd.		28,000		370
NHK Spring Co. Ltd.		23,300		251
Nidec Corp.		17,300		1,312
Nikon Corp.		53,900		1,638
Nintendo Co. Ltd.		16,700		1,949

NORTHERN FUNDS QUARTERLY REPORT    43    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Japan - 21.3% continued
Nippon Building Fund, Inc.		94	$	910
Nippon Electric Glass Co. Ltd.		60,500		360
Nippon Express Co. Ltd.		132,000		545
Nippon Meat Packers, Inc.		27,000		358
Nippon Paper Group, Inc.		16,158		257
Nippon Steel Corp.		793,000		1,797
Nippon Telegraph & Telephone Corp.		68,052		3,162
Nippon Yusen K.K.		244,000		648
Nishi-Nippon City Bank (The) Ltd.		108,000		263
Nissan Motor Co. Ltd.		387,900		3,674
Nisshin Seifun Group, Inc.		27,500		322
Nisshin Steel Co. Ltd.		112,000		157
Nissin Foods Holdings Co. Ltd.		9,100		347
Nitori Holdings Co. Ltd.		5,150		488
Nitto Denko Corp.		26,200		1,118
NKSJ Holdings, Inc.		58,825		1,254
NOK Corp.		16,600		354
Nomura Holdings, Inc.		566,300		2,115
Nomura Real Estate Holdings, Inc.		14,400		264
Nomura Real Estate Office Fund, Inc.		45		254
Nomura Research Institute Ltd.		15,300		337
NSK Ltd.		65,000		420
NTN Corp.		72,000		226
NTT Data Corp.		195		599
NTT DoCoMo, Inc.		2,378		3,958
NTT Urban Development Corp.		171		138
Obayashi Corp.		106,000		464
Odakyu Electric Railway Co. Ltd.		98,000		975
OJI Paper Co. Ltd.		130,000		499
Olympus Corp.*		34,100		553
Omron Corp.		32,100		678
Ono Pharmaceutical Co. Ltd.		12,700		799
Oracle Corp. Japan		5,800		250
Oriental Land Co. Ltd.		7,800		892
ORIX Corp.		16,440		1,530
Osaka Gas Co. Ltd.		297,000		1,245
Otsuka Corp.		2,300		197
Otsuka Holdings Co. Ltd.		57,458		1,761
Panasonic Corp.		344,300		2,801
Rakuten, Inc.		113,900		1,180
Resona Holdings, Inc.		296,310		1,223
Ricoh Co. Ltd.		99,000		836
Rinnai Corp.		4,900		338
Rohm Co. Ltd.		14,700		565
Sankyo Co. Ltd.		7,500		366
Sanrio Co. Ltd.		6,597		240
Santen Pharmaceutical Co. Ltd.		11,200		459
SBI Holdings, Inc.		3,397		252
Secom Co. Ltd.		33,200		1,524
Sega Sammy Holdings, Inc.		30,000		610
Seiko Epson Corp.		20,200		205
Sekisui Chemical Co. Ltd.		68,000		633
Sekisui House Ltd.		84,000		793
Seven & I Holdings Co. Ltd.		117,200		3,532
Seven Bank Ltd.		89,800		230
Sharp Corp.		156,000		792
Shikoku Electric Power Co., Inc.		26,000		552
Shimadzu Corp.		34,000		293
Shimamura Co. Ltd.		3,600		416
Shimano, Inc.		11,500		752
Shimizu Corp.		94,000		326
Shin-Etsu Chemical Co. Ltd.		63,900		3,516
Shinsei Bank Ltd.		256,000		311
Shionogi & Co. Ltd.		45,900		624
Shiseido Co. Ltd.		56,300		888
Shizuoka Bank (The) Ltd.		86,000		884
Shoei Co. Ltd./Chiyoda-ku*		37,400		206
Showa Denko K.K.		217,000		422
Showa Shell Sekiyu K.K.		28,000		171
SMC Corp.		8,400		1,454
Softbank Corp.		137,900		5,127
Sojitz Corp.		202,600		335
Sony Corp.		156,800		2,232
Sony Financial Holdings, Inc.		26,600		435
Square Enix Holdings Co. Ltd.		10,000		158
Stanley Electric Co. Ltd.		22,900		353
Sumco Corp.*		18,000		163
Sumitomo Chemical Co. Ltd.		233,000		717
Sumitomo Corp.		174,800		2,446
Sumitomo Electric Industries Ltd.		118,100		1,468
Sumitomo Heavy Industries Ltd.		86,000		386
Sumitomo Metal Industries Ltd.		527,000		868
Sumitomo Metal Mining Co. Ltd.		83,000		934
Sumitomo Mitsui Financial Group, Inc.		209,919		6,926
Sumitomo Mitsui Trust Holdings, Inc.		490,920		1,467
Sumitomo Realty & Development Co. Ltd.		56,000		1,378
Sumitomo Rubber Industries Ltd.		26,900		350
Suruga Bank Ltd.		29,000		297

EQUITY INDEX FUNDS    44    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Japan - 21.3% continued
Suzuken Co. Ltd.		11,100	$	374
Suzuki Motor Corp.		57,400		1,177
Sysmex Corp.		11,349		449
T&D Holdings, Inc.		89,200		951
Taiheiyo Cement Corp.		178,000		408
Taisei Corp.		154,000		413
Taisho Pharmaceutical Holdings Co. Ltd.		5,900		499
Taiyo Nippon Sanso Corp.		42,000		245
Takashimaya Co. Ltd.		42,000		322
Takeda Pharmaceutical Co. Ltd.		123,000		5,582
TDK Corp.		19,500		792
Teijin Ltd.		141,000		429
Terumo Corp.		24,200		994
THK Co. Ltd.		18,900		358
Tobu Railway Co. Ltd.		158,000		832
Toho Co. Ltd.		18,500		320
Toho Gas Co. Ltd.		66,000		410
Tohoku Electric Power Co., Inc.*		69,600		699
Tokio Marine Holdings, Inc.		113,000		2,841
Tokyo Electric Power Co., Inc.*		225,700		436
Tokyo Electron Ltd.		26,600		1,244
Tokyo Gas Co. Ltd.		390,000		1,992
Tokyu Corp.		177,000		833
Tokyu Land Corp.		64,000		318
TonenGeneral Sekiyu K.K.		44,000		391
Toppan Printing Co. Ltd.		87,000		582
Toray Industries, Inc.		227,000		1,548
Toshiba Corp.		625,000		2,372
Tosoh Corp.		80,000		217
TOTO Ltd.		41,000		306
Toyo Seikan Kaisha Ltd.		24,200		293
Toyo Suisan Kaisha Ltd.		14,000		374
Toyoda Gosei Co. Ltd.		10,600		244
Toyota Boshoku Corp.		9,800		119
Toyota Industries Corp.		25,800		737
Toyota Motor Corp.		431,100		17,377
Toyota Tsusho Corp.		34,100		650
Trend Micro, Inc.		17,200		508
Tsumura & Co.		8,900		236
Ube Industries Ltd.		165,000		383
Unicharm Corp.		17,700		1,008
Ushio, Inc.		16,200		200
USS Co. Ltd.		3,280		354
West Japan Railway Co.		26,900		1,108
Yahoo Japan Corp.		2,272		735
Yakult Honsha Co. Ltd.		14,900		583
Yamada Denki Co. Ltd.		13,709		700
Yamaguchi Financial Group, Inc.		34,000		300
Yamaha Corp.		24,600		253
Yamaha Motor Co. Ltd.		42,800		408
Yamato Holdings Co. Ltd.		59,000		950
Yamato Kogyo Co. Ltd.		6,500		181
Yamazaki Baking Co. Ltd.		15,000		196
Yaskawa Electric Corp.		33,000		250
Yokogawa Electric Corp.		33,600		347
				329,605
Netherlands - 4.8%
Aegon N.V.		270,472		1,260
Akzo Nobel N.V.		36,526		1,718
ASML Holding N.V.		65,619		3,344
Corio N.V.		10,383		457
DE Master Blenders 1753 N.V.*		74,896		845
Delta Lloyd N.V.		15,858		220
European Aeronautic Defence and Space Co. N.V.		64,048		2,272
Fugro N.V. - CVA		10,876		661
Gemalto N.V.		12,449		895
Heineken Holding N.V.		15,759		705
Heineken N.V.		35,974		1,879
ING Groep N.V. - CVA*		599,087		4,042
Koninklijke Ahold N.V.		163,587		2,027
Koninklijke Boskalis Westminster N.V.		11,260		372
Koninklijke DSM N.V.		23,913		1,180
Koninklijke KPN N.V.		223,708		2,142
Koninklijke Philips Electronics N.V.		157,775		3,120
Koninklijke Vopak N.V.		10,643		683
QIAGEN N.V.*		35,772		597
Randstad Holding N.V.		18,626		550
Reed Elsevier N.V.		106,816		1,222
Royal Dutch Shell PLC, Class A		573,777		19,329
Royal Dutch Shell PLC, Class B		416,359		14,532
SBM Offshore N.V.*		26,882		373
TNT Express N.V.		50,850		595
Unilever N.V. - CVA		254,711		8,526
Wolters Kluwer N.V.		47,243		752
				74,298
New Zealand - 0.1%
Auckland International Airport Ltd.		145,547		286

NORTHERN FUNDS QUARTERLY REPORT    45    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
New Zealand - 0.1% continued
Contact Energy Ltd.*		59,379	$	230
Fletcher Building Ltd.		105,586		499
SKYCITY Entertainment Group Ltd.		89,895		245
Telecom Corp. of New Zealand Ltd.		301,174		578
				1,838
Norway - 0.8%
Aker Solutions ASA		25,848		368
DNB ASA		153,154		1,523
Gjensidige Forsikring ASA		31,528		367
Norsk Hydro ASA		142,393		643
Orkla ASA		120,808		877
Seadrill Ltd.		55,280		1,973
Statoil ASA		174,076		4,162
Telenor ASA		113,022		1,885
Veripos, Inc.*		4,362		—
Yara International ASA		29,145		1,276
				13,074
Portugal - 0.2%
Banco Espirito Santo S.A. (Registered)*		315,931		216
EDP - Energias de Portugal S.A.		303,641		718
Galp Energia SGPS S.A.		36,845		467
Jeronimo Martins SGPS S.A.		34,864		588
Portugal Telecom SGPS S.A. (Registered)		94,257		414
				2,403
Singapore - 1.8%
Ascendas Real Estate Investment Trust		284,213		485
CapitaLand Ltd.		390,500		843
CapitaMall Trust		370,600		561
CapitaMalls Asia Ltd.		207,718		259
City Developments Ltd.		81,000		724
ComfortDelGro Corp. Ltd.		314,000		385
Cosco Corp. Singapore Ltd.		154,000		121
DBS Group Holdings Ltd.		289,803		3,199
Fraser and Neave Ltd.		145,563		811
Genting Singapore PLC		961,380		1,079
Global Logistic Properties Ltd.*		331,238		552
Golden Agri-Resources Ltd.		1,043,787		558
Hutchison Port Holdings Trust, Class U		817,000		586
Jardine Cycle & Carriage Ltd.		16,576		611
Keppel Corp. Ltd.		220,400		1,806
Keppel Land Ltd.		123,611		318
Neptune Orient Lines Ltd.*		135,750		120
Olam International Ltd.		261,381		380
Oversea-Chinese Banking Corp. Ltd.		400,954		2,801
SembCorp Industries Ltd.		149,600		612
SembCorp Marine Ltd.		127,400		486
Singapore Airlines Ltd.		85,067		699
Singapore Exchange Ltd.		136,000		683
Singapore Press Holdings Ltd.		258,000		797
Singapore Technologies Engineering Ltd.		236,000		582
Singapore Telecommunications Ltd.		1,236,600		3,233
StarHub Ltd.		90,000		244
United Overseas Bank Ltd.		200,183		2,975
UOL Group Ltd.		70,700		277
Wilmar International Ltd.		297,000		854
				27,641
Spain - 2.6%
Abertis Infraestructuras S.A.		55,375		750
Abertis Infraestructuras S.A.*		2,768		37
Acciona S.A.		3,243		194
Acerinox S.A.		15,520		174
ACS Actividades de Construccion y Servicios S.A.		22,065		473
Amadeus IT Holding S.A., Class A		49,197		1,042
Banco Bilbao Vizcaya Argentaria S.A.		740,299		5,336
Banco de Sabadell S.A.		334,653		653
Banco Popular Espanol S.A.		167,546		380
Banco Santander S.A.		1,462,911		9,771
Bankia S.A.*		113,528		133
CaixaBank		121,653		398
Distribuidora Internacional de Alimentacion S.A.*		93,947		442
Enagas S.A.		27,740		506
Ferrovial S.A.		64,140		723
Gas Natural SDG S.A.		57,529		739
Grifols S.A.*		21,214		538
Grifols S.A., Class B*		2,305		44
Iberdrola S.A.		612,273		2,899
Inditex S.A.		33,999		3,517
Mapfre S.A.		123,256		251
Red Electrica Corp. S.A.		16,924		738
Repsol YPF S.A.		123,207		1,981
Telefonica S.A.		640,772		8,454
Zardoya Otis S.A.		22,189		247
				40,420
Sweden - 3.0%
Alfa Laval AB		52,438		901

EQUITY INDEX FUNDS    46    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Sweden - 3.0% continued
Assa Abloy AB, Class B		51,655	$	1,444
Atlas Copco AB, Class A		90,599		1,956
Atlas Copco AB, Class B		77,927		1,490
Boliden AB		42,753		598
Electrolux AB, Class B		37,081		740
Elekta AB, Class B		14,328		653
Getinge AB, Class B		31,017		769
Hennes & Mauritz AB, Class B		148,251		5,330
Hexagon AB, Class B		36,851		636
Holmen AB, Class B		8,155		222
Husqvarna AB, Class B		62,523		296
Industrivarden AB, Class C		18,284		236
Investor AB, Class B		70,898		1,356
Kinnevik Investment AB, Class B		31,674		636
Lundin Petroleum AB*		34,562		648
Millicom International Cellular S.A. SDR		9,819		926
Modern Times Group AB, Class B		7,700		357
Nordea Bank AB		412,973		3,575
Ratos AB, Class B		29,121		277
Sandvik AB		157,261		2,025
Scania AB, Class B		50,469		867
Securitas AB, Class B		50,431		392
Skandinaviska Enskilda Banken AB, Class A		220,757		1,439
Skanska AB, Class B		59,125		907
SKF AB, Class B		60,578		1,198
SSAB AB, Class A		25,505		212
Svenska Cellulosa AB, Class B		90,026		1,352
Svenska Handelsbanken AB, Class A		76,588		2,525
Swedbank AB, Class A		128,094		2,026
Swedish Match AB		33,536		1,353
Tele2 AB, Class B		50,240		779
Telefonaktiebolaget LM Ericsson, Class B		469,785		4,287
TeliaSonera AB		336,332		2,152
Volvo AB, Class B		217,380		2,490
				47,050
Switzerland - 8.7%
ABB Ltd. (Registered)		344,872		5,629
Actelion Ltd. (Registered)		17,379		714
Adecco S.A. (Registered)		20,734		923
Aryzta A.G. (Dublin Exchange)*		4,329		215
Aryzta A.G. (SIX Swiss Exchange)*		9,073		451
Baloise Holding A.G. (Registered)		7,224		477
Banque Cantonale Vaudoise (Registered)		463		245
Barry Callebaut A.G. (Registered)*		297		270
Cie Financiere Richemont S.A., Class A (Bearer)		81,485		4,472
Credit Suisse Group A.G. (Registered)		181,430		3,315
GAM Holding A.G.		30,784		343
Geberit A.G. (Registered)*		5,910		1,166
Givaudan S.A. (Registered)*		1,309		1,286
Glencore International PLC		215,586		1,001
Holcim Ltd. (Registered)		35,660		1,976
Julius Baer Group Ltd.		32,550		1,179
Kuehne + Nagel International A.G. (Registered)		8,461		896
Lindt & Spruengli A.G. (Registered)		17		624
Lindt & Spruengli A.G. (Participation Certificate)		138		426
Lonza Group A.G. (Registered)		7,850		327
Nestle S.A. (Registered)		515,780		30,770
Novartis A.G. (Registered)		359,544		20,057
Pargesa Holding S.A. (Bearer)		4,398		262
Partners Group Holding A.G.		2,167		385
Roche Holding A.G. (Genusschein)		109,742		18,946
Schindler Holding A.G. (Registered)		3,289		371
Schindler Holding A.G. (Participation Certificate)		7,694		860
SGS S.A. (Registered)		844		1,582
Sika A.G. (Bearer)		340		655
Sonova Holding A.G. (Registered)		7,768		750
STMicroelectronics N.V.		100,521		553
Straumann Holding A.G. (Registered)		1,220		179
Sulzer A.G. (Registered)		3,695		438
Swatch Group (The) A.G. (Bearer)		4,796		1,898
Swatch Group (The) A.G. (Registered)		6,793		473
Swiss Life Holding A.G. (Registered)		4,693		443
Swiss Prime Site A.G. (Registered)		7,591		634
Swiss Re A.G.		54,906		3,450
Swisscom A.G. (Registered)		3,680		1,479
Syngenta A.G. (Registered)		14,736		5,031
Transocean Ltd.		55,071		2,475
UBS A.G. (Registered)		569,114		6,656
Wolseley PLC		44,157		1,650
Xstrata PLC		323,242		4,080
Zurich Insurance Group A.G.		23,062		5,204
				135,216
United Kingdom - 19.5%
3i Group PLC		149,590		463

NORTHERN FUNDS QUARTERLY REPORT    47    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
United Kingdom - 19.5% continued
Aberdeen Asset Management PLC		135,949	$	554
Admiral Group PLC		31,951		598
Aggreko PLC		41,123		1,338
AMEC PLC		51,761		817
Anglo American PLC		207,941		6,823
Antofagasta PLC		61,066		1,048
ARM Holdings PLC		217,979		1,736
Associated British Foods PLC		56,193		1,131
AstraZeneca PLC		199,962		8,938
Aviva PLC		449,216		1,923
Babcock International Group PLC		55,871		748
BAE Systems PLC		509,624		2,306
Balfour Beatty PLC		104,220		488
Barclays PLC		1,803,776		4,617
BG Group PLC		531,331		10,876
BHP Billiton PLC		329,255		9,403
BP PLC		2,967,276		19,882
British American Tobacco PLC		307,918		15,673
British Land Co. PLC		132,134		1,058
British Sky Broadcasting Group PLC		176,473		1,926
BT Group PLC		1,208,418		4,006
Bunzl PLC		51,003		836
Burberry Group PLC		68,016		1,419
Capita PLC		102,822		1,057
Capital Shopping Centres Group PLC		85,013		430
Carnival PLC		28,779		985
Centrica PLC		803,642		4,006
Cobham PLC		171,009		623
Compass Group PLC		295,009		3,094
Croda International PLC		21,556		765
Diageo PLC		392,012		10,085
Eurasian Natural Resources Corp. PLC		40,025		261
Evraz PLC		53,540		219
Fresnillo PLC		27,756		637
G4S PLC		221,507		969
GKN PLC		246,854		703
GlaxoSmithKline PLC		788,124		17,872
Hammerson PLC		110,614		771
HSBC Holdings PLC		2,813,957		24,813
ICAP PLC		87,252		462
IMI PLC		50,848		664
Imperial Tobacco Group PLC		156,225		6,011
Inmarsat PLC		71,133		547
Intercontinental Hotels Group PLC		45,362		1,096
International Consolidated Airlines Group S.A.*		144,792		364
Intertek Group PLC		25,119		1,056
Invensys PLC		126,685		442
Investec PLC		82,367		481
ITV PLC		577,128		697
J. Sainsbury PLC		191,500		907
Johnson Matthey PLC		33,843		1,173
Kazakhmys PLC		33,350		380
Kingfisher PLC		366,841		1,659
Land Securities Group PLC		123,046		1,427
Legal & General Group PLC		913,622		1,832
Lloyds Banking Group PLC*		6,418,990		3,157
London Stock Exchange Group PLC		23,214		366
Lonmin PLC		25,286		309
Man Group PLC		296,912		355
Marks & Spencer Group PLC		246,687		1,261
Meggitt PLC		122,171		741
National Grid PLC		559,251		5,920
Next PLC		26,716		1,340
Old Mutual PLC		753,311		1,793
Pearson PLC		128,813		2,558
Petrofac Ltd.		40,074		876
Prudential PLC		397,023		4,600
Randgold Resources Ltd.		13,551		1,219
Reckitt Benckiser Group PLC		103,359		5,452
Reed Elsevier PLC		187,544		1,505
Resolution Ltd.		216,910		666
Rexam PLC		137,661		911
Rio Tinto PLC		210,834		10,070
Rolls-Royce Holdings PLC*		290,847		3,924
Royal Bank of Scotland Group PLC*		324,151		1,099
RSA Insurance Group PLC		554,366		940
SABMiller PLC		148,545		5,967
Sage Group (The) PLC		208,830		907
Schroders PLC		17,619		371
Segro PLC		111,412		380
Serco Group PLC		77,026		648
Severn Trent PLC		37,433		970
Smith & Nephew PLC		138,353		1,385
Smiths Group PLC		61,703		982
SSE PLC		145,707		3,177
Standard Chartered PLC		371,352		8,096
Standard Life PLC		361,966		1,327
Subsea 7 S.A.		43,620		866

EQUITY INDEX FUNDS    48    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
United Kingdom - 19.5% continued
Tate & Lyle PLC		73,412	$	746
Tesco PLC		1,259,993		6,125
TUI Travel PLC		75,129		200
Tullow Oil PLC		140,720		3,249
Unilever PLC		199,957		6,721
United Utilities Group PLC		107,609		1,139
Vedanta Resources PLC		15,475		223
Vodafone Group PLC		7,792,388		21,895
Weir Group (The) PLC		32,683		788
Whitbread PLC		27,637		882
WM Morrison Supermarkets PLC		375,389		1,567
				302,768
Total Common Stocks(2) (Cost $1,474,816)(2)				1,501,607
PREFERRED STOCKS - 0.5%
Germany - 0.5%
Bayerische Motoren Werke A.G.		8,318		410
Henkel A.G. & Co. KGaA		27,635		1,835
Porsche Automobil Holding S.E.		23,848		1,188
ProSiebenSat.1 Media A.G.		14,626		326
RWE A.G. (Non Voting)		5,931		220
Volkswagen A.G.		22,649		3,591
				7,570
Total Preferred Stocks(2) (Cost $5,591)(2)				7,570
RIGHTS - 0.0%
Austria - 0.0%
Immoeast A.G.*		58,188		—
Immoeast A.G.*		57,496		—
				—
France - 0.0%
Air Liquide*		4		—
Eurazeo*		21		—
				—
Spain - 0.0%
CaixaBank*		121,616		8
Repsol YPF S.A.*		123,200		87
Zardoya Otis S.A.*		22,189		12
				107
Total Rights(2) (Cost $ — )(2)				107
INVESTMENT COMPANIES - 1.3%
iShares MSCI EAFE Index Fund		383,100		19,140
Northern Institutional Funds - Diversified Assets Portfolio(3) (4)		696,501		697
Total Investment Companies (Cost $19,407)				19,837
Total Investments - 98.6% (Cost $1,499,814)				1,529,121
Other Assets less Liabilities - 1.4%				21,834
NET ASSETS - 100.0%			$	1,550,955

(1) Security has been deemed worthless.

(2) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.

(3) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $2,864,000 with net sales of approximately $2,167,000 during the three months ended June 30, 2012.

(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

† Level 3 asset that is worthless, bankrupt or has been delisted.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the International Equity Index Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
Euro Stoxx 50 (Euro)		265	$	7,563		Long		9/12	$	433
FTSE 100 Index (British Pound)		79		6,834		Long		9/12		156
Hang Seng Index (Hong Kong Dollar)		8		1,003		Long		7/12		25

NORTHERN FUNDS QUARTERLY REPORT    49    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
Nikkei 225 (Japanese Yen)		52	$	2,920		Long		9/12	$	208
SPI 200 (Australian Dollar)		26		2,698		Long		9/12		(36	)
Topix Index (Japanese Yen)		22		2,117		Long		9/12		135
Yen Denom Nikkei (Japanese Yen)		11		627		Long		9/12		50
Total									$	971

At June 30, 2012, the International Equity Index Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG- TERM INVESTMENTS
Euro		26.7	%
British Pound		22.8
Japanese Yen		21.6
Australian Dollar		8.6
Swiss Franc		8.4
All other currencies less than 5%		11.9
Total		100.0	%

At June 30, 2012, the industry sectors for the International Equity Index Fund were:

INDUSTRY SECTOR	% OF LONG- TERM INVESTMENTS
Consumer Discretionary		10.4	%
Consumer Staples		11.8
Energy		8.3
Financials		23.6
Health Care		9.9
Industrials		12.3
Information Technology		4.5
Materials		9.5
Telecommunication Services		5.5
Utilities		4.2
Total		100.0	%

At June 30, 2012, the International Equity Index Fund had outstanding foreign currency exchange contracts as follows:

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
British Pound		838	United States Dollar		1,300		9/19/12	$	(12	)
British Pound		321	United States Dollar		500		9/19/12		(2	)
British Pound		95	United States Dollar		147		9/19/12		(1	)
British Pound		172	United States Dollar		269		9/19/12		—	*
Euro		1,739	United States Dollar		2,192		9/19/12		(11	)
Euro		397	United States Dollar		500		9/19/12		(3	)
Euro		227	United States Dollar		287		9/19/12		—	*
Hong Kong Dollar		225	United States Dollar		29		9/19/12		—	*
Japanese Yen		16,067	United States Dollar		200		9/19/12		(1	)
Japanese Yen		12,484	United States Dollar		157		9/19/12		1
Japanese Yen		9,526	United States Dollar		120		9/19/12		1
Japanese Yen		23,204	United States Dollar		293		9/19/12		2
Swedish Krona		1,593	United States Dollar		226		9/19/12		(4	)
Swiss Franc		1,195	United States Dollar		1,257		9/19/12		(5	)
Swiss Franc		475	United States Dollar		500		9/19/12		(1	)
Swiss Franc		136	United States Dollar		143		9/19/12		(1	)
United States Dollar		100	Australian Dollar		100		9/19/12		2
United States Dollar		583	Australian Dollar		589		9/19/12		15
United States Dollar		232	British Pound		148		9/19/12		(1	)
United States Dollar		300	British Pound		192		9/19/12		—	*
United States Dollar		122	British Pound		78		9/19/12		1
United States Dollar		768	British Pound		494		9/19/12		5
United States Dollar		600	Euro		474		9/19/12		—	*
United States Dollar		161	Euro		129		9/19/12		2
United States Dollar		300	Euro		240		9/19/12		4
United States Dollar		400	Euro		321		9/19/12		7
United States Dollar		4,000	Euro		3,172		9/19/12		17
United States Dollar		312	Japanese Yen		24,620		9/19/12		(4	)
United States Dollar		200	Japanese Yen		15,723		9/19/12		(3	)
United States Dollar		317	Japanese Yen		25,112		9/19/12		(2	)
United States Dollar		300	Japanese Yen		23,813		9/19/12		(2	)

EQUITY INDEX FUNDS    50    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
United States Dollar		184	Japanese Yen		14,581		9/19/12	$	(1	)
United States Dollar		136	Japanese Yen		10,817		9/19/12		(1	)
United States Dollar		15	Singapore Dollar		19		9/19/12		—	*
United States Dollar		137	Singapore Dollar		175		9/19/12		1
United States Dollar		100	Swiss Franc		96		9/19/12		1
United States Dollar		139	Swiss Franc		134		9/19/12		2
Total								$	6

* Amount rounds to less than one thousand.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,583,102
Gross tax appreciation of investments	$	210,907
Gross tax depreciation of investments		(264,888	)
Net tax depreciation of investments	$	(53,981)

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates, maturities, ratings and yield curves, and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on June 30, 2012 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.

Level 3 - Valuations based on inputs that are unobservable and significant. The Fund utilized the following techniques on Level 3 investments: The Fund valued certain securities using an adjusted price deemed to reflect fair value as a result of there being a lack of market activity and data observed for the security.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the International Equity Index Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	—		$	154,102		$	64	$	154,166
Consumer Staples		—			178,153			—		178,153
Energy		—			126,133			—		126,133
Financials		—			341,560			—		341,560
Health Care		—			152,035			—		152,035
Industrials		200			188,015			—		188,215
Information Technology		—			68,014			—		68,014
Materials		—			145,058			—		145,058
Telecommunication
Services		—			84,614			—		84,614
Utilities		—			63,659			—		63,659
Preferred Stocks
Consumer Discretionary		—			5,515			—		5,515
Consumer Staples		—			1,835			—		1,835
Utilities		—			220			—		220
Rights
Energy		—			87			—		87
Financials		—			—			8		8
Industrials		—			12			—		12
Investment Companies		19,837			—			—		19,837
Total Investments	$	20,037		$	1,509,012		$	72	$	1,529,121
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	1,007		$	—		$	—	$	1,007
Foreign Currency
Exchange Contracts		—			61			—		61
Liabilities
Futures Contracts		(36	)		—			—		(36	)
Foreign Currency
Exchange Contracts		—			(55	)		—		(55	)
Total Other Financial Instruments	$	971		$	6		$	—	$	977

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    51    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	BALANCE AS  OF 3/31/12 (000S)		REALIZED GAINS (000S)		REALIZED LOSSES (000S)		CHANGE IN UNREALIZED APPRECIATION (000S)		CHANGE IN UNREALIZED DEPRECIATION (000S)		PURC- HASES (000S)		SALES (000S)		TRAN- SFERS INTO LEVEL 3 (000S)		TRAN- SFERS OUT OF LEVEL 3 (000S)		BALANCE AS OF 6/30/12 (000S)
Common Stocks
Consumer Discretionary	$	—	$	—	$	—	$	1	$	—	$	63	$	—	$	—	$	—	$	64
Rights
Financials		—		—		—		8		—		—		—		—		—		8
Total	$	—	$	—	$	—	$	9	$	—	$	63	$	—	$	—	$	—	$	72

The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at June 30, 2012 was $(9).

EQUITY INDEX FUNDS    52    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2%
Advertising - 0.1%
Lamar Advertising Co., Class A*		33,065	$	946
Aerospace/Defense - 1.1%
Alliant Techsystems, Inc.		18,617		942
BE Aerospace, Inc.*		58,636		2,560
Esterline Technologies Corp.*		17,290		1,078
Exelis, Inc.		105,712		1,042
Triumph Group, Inc.		28,059		1,579
				7,201
Agriculture - 0.1%
Universal Corp.		13,204		612
Airlines - 0.3%
Alaska Air Group, Inc.*		39,967		1,435
JetBlue Airways Corp.*		128,798		682
				2,117
Apparel - 1.1%
Carter’s, Inc.*		28,908		1,521
Deckers Outdoor Corp.*		21,522		947
Hanesbrands, Inc.*		55,028		1,526
Under Armour, Inc., Class A*		20,884		1,973
Warnaco Group (The), Inc.*		23,145		985
				6,952
Auto Manufacturers - 0.2%
Oshkosh Corp.*		51,620		1,081
Banks - 3.8%
Associated Banc-Corp		98,104		1,294
BancorpSouth, Inc.		46,428		674
Bank of Hawaii Corp.		25,461		1,170
Cathay General Bancorp		44,336		732
City National Corp.		26,416		1,283
Commerce Bancshares, Inc.		44,159		1,674
Cullen/Frost Bankers, Inc.		34,591		1,989
East West Bancorp, Inc.		81,379		1,909
FirstMerit Corp.		61,586		1,017
Fulton Financial Corp.		112,977		1,129
Hancock Holding Co.		47,810		1,455
International Bancshares Corp.		29,953		585
Prosperity Bancshares, Inc.		26,640		1,120
Signature Bank*		26,059		1,589
SVB Financial Group*		24,889		1,461
Synovus Financial Corp.		446,837		885
TCF Financial Corp.		91,243		1,047
Trustmark Corp.		36,203		886
Valley National Bancorp		111,094		1,178
Webster Financial Corp.		41,439		898
Westamerica Bancorporation		15,839		747
				24,722
Beverages - 0.2%
Green Mountain Coffee Roasters, Inc.*		73,384		1,598
Biotechnology - 2.4%
Bio-Rad Laboratories, Inc., Class A*		11,135		1,114
Charles River Laboratories
International, Inc.*		27,577		903
Regeneron Pharmaceuticals, Inc.*		43,922		5,017
United Therapeutics Corp.*		30,237		1,493
Vertex Pharmaceuticals, Inc.*		118,929		6,650
				15,177
Building Materials - 1.0%
Fortune Brands Home & Security, Inc.*		89,927		2,003
Lennox International, Inc.		28,681		1,337
Louisiana-Pacific Corp.*		77,337		842
Martin Marietta Materials, Inc.		25,733		2,028
				6,210
Chemicals - 2.8%
Albemarle Corp.		50,176		2,992
Ashland, Inc.		44,175		3,062
Cabot Corp.		35,566		1,448
Cytec Industries, Inc.		25,848		1,516
Intrepid Potash, Inc.*		29,683		676
Minerals Technologies, Inc.		9,993		637
NewMarket Corp.		5,975		1,294
Olin Corp.		45,152		943
RPM International, Inc.		74,069		2,015
Sensient Technologies Corp.		27,941		1,026
Valspar Corp.		51,379		2,697
				18,306
Coal - 0.1%
Arch Coal, Inc.		120,292		829
Commercial Services - 5.3%
Aaron’s, Inc.		42,877		1,214
Alliance Data Systems Corp.*		28,360		3,829
Brink’s (The) Co.		26,527		615
Convergys Corp.		65,321		965
CoreLogic, Inc.*		60,079		1,100
Corporate Executive Board (The) Co.		18,772		767

NORTHERN FUNDS QUARTERLY REPORT    53    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2% continued
Commercial Services - 5.3% continued
Corrections Corp. of America		56,158	$	1,654
Deluxe Corp.		28,691		716
FTI Consulting, Inc.*		23,443		674
Gartner, Inc.*		52,661		2,267
Global Payments, Inc.		44,199		1,911
HMS Holdings Corp.*		48,507		1,616
ITT Educational Services, Inc.*		10,213		620
Korn/Ferry International*		26,351		378
Lender Processing Services, Inc.		47,616		1,204
Manpower, Inc.		45,190		1,656
Matthews International Corp., Class A		16,023		521
Monster Worldwide, Inc.*		67,579		574
Rent-A-Center, Inc.		33,447		1,128
Rollins, Inc.		36,421		815
SEI Investments Co.		80,866		1,608
Service Corp. International		122,267		1,512
Sotheby’s		38,072		1,270
Strayer Education, Inc.		6,684		729
Towers Watson & Co., Class A		28,793		1,725
TravelCenters of America LLC - (Fractional Shares)*		80,000		—
United Rentals, Inc.*		47,533		1,618
Valassis Communications, Inc.*		24,197		526
Wright Express Corp.*		21,821		1,347
				34,559
Computers - 2.3%
Cadence Design Systems, Inc.*		154,533		1,698
Diebold, Inc.		35,259		1,301
DST Systems, Inc.		19,217		1,044
Jack Henry & Associates, Inc.		49,353		1,704
Mentor Graphics Corp.*		52,445		787
MICROS Systems, Inc.*		45,374		2,323
NCR Corp.*		89,294		2,030
Riverbed Technology, Inc.*		88,864		1,435
Synopsys, Inc.*		82,884		2,439
				14,761
Distribution/Wholesale - 1.3%
Arrow Electronics, Inc.*		63,121		2,071
Ingram Micro, Inc., Class A*		85,661		1,497
LKQ Corp.*		83,093		2,775
Owens & Minor, Inc.		35,837		1,098
Watsco, Inc.		16,668		1,230
				8,671
Diversified Financial Services - 1.9%
Affiliated Managers Group, Inc.*		28,902		3,163
CBOE Holdings, Inc.		49,156		1,361
Eaton Vance Corp.		65,231		1,758
Greenhill & Co., Inc.		16,306		581
Janus Capital Group, Inc.		106,212		830
Jefferies Group, Inc.		84,809		1,102
Raymond James Financial, Inc.		62,907		2,154
Waddell & Reed Financial, Inc., Class A		48,801		1,478
				12,427
Electric - 3.5%
Alliant Energy Corp.		62,321		2,840
Black Hills Corp.		24,757		796
Cleco Corp.		34,318		1,436
Great Plains Energy, Inc.		86,164		1,845
Hawaiian Electric Industries, Inc.		54,245		1,547
IDACORP, Inc.		28,154		1,185
MDU Resources Group, Inc.		106,546		2,303
National Fuel Gas Co.		46,856		2,201
NV Energy, Inc.		133,119		2,340
OGE Energy Corp.		55,340		2,866
PNM Resources, Inc.		44,902		877
Westar Energy, Inc.		71,118		2,130
				22,366
Electrical Components & Equipment - 1.8%
Acuity Brands, Inc.		23,749		1,209
AMETEK, Inc.		90,566		4,520
Energizer Holdings, Inc.*		36,806		2,770
General Cable Corp.*		28,061		728
Hubbell, Inc., Class B		33,352		2,599
				11,826
Electronics - 2.4%
Avnet, Inc.*		81,829		2,525
Gentex Corp.		81,281		1,696
Itron, Inc.*		22,464		926
Mettler-Toledo International, Inc.*		17,668		2,754
National Instruments Corp.		52,408		1,408
Tech Data Corp.*		22,451		1,081
Trimble Navigation Ltd.*		70,518		3,245
Vishay Intertechnology, Inc.*		80,645		761
Woodward, Inc.		33,881		1,336
				15,732
Engineering & Construction - 0.9%
AECOM Technology Corp.*		63,589		1,046

EQUITY INDEX FUNDS    54    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2% continued
Engineering & Construction - 0.9% continued
Granite Construction, Inc.		19,442	$	508
KBR, Inc.		83,508		2,064
Shaw Group (The), Inc.*		37,330		1,019
URS Corp.		42,664		1,488
				6,125
Entertainment - 0.6%
Bally Technologies, Inc.*		24,206		1,129
Cinemark Holdings, Inc.		57,322		1,310
DreamWorks Animation SKG, Inc., Class A*		40,273		768
International Speedway Corp., Class A		15,733		412
Scientific Games Corp., Class A*		32,972		282
				3,901
Environmental Control - 0.7%
Clean Harbors, Inc.*		26,717		1,507
Mine Safety Appliances Co.		17,375		699
Waste Connections, Inc.		69,517		2,080
				4,286
Food - 2.0%
Flowers Foods, Inc.		63,671		1,479
Harris Teeter Supermarkets, Inc.		27,789		1,139
Hillshire Brands, Co.		66,827		1,937
Ingredion, Inc.		42,986		2,129
Lancaster Colony Corp.		11,210		798
Post Holdings, Inc.*		15,611		480
Ralcorp Holdings, Inc.*		31,147		2,079
Smithfield Foods, Inc.*		90,755		1,963
SUPERVALU, Inc.		119,721		620
Tootsie Roll Industries, Inc.		14,420		344
				12,968
Forest Products & Paper - 0.2%
Domtar Corp.		20,345		1,561
Gas - 1.3%
Atmos Energy Corp.		50,357		1,766
Questar Corp.		100,434		2,095
UGI Corp.		63,237		1,861
Vectren Corp.		46,227		1,365
WGL Holdings, Inc.		29,054		1,155
				8,242
Hand/Machine Tools - 0.8%
Kennametal, Inc.		44,993		1,491
Lincoln Electric Holdings, Inc.		47,268		2,070
Regal-Beloit Corp.		23,477		1,462
				5,023
Healthcare - Products - 3.6%
Cooper (The) Cos., Inc.		26,648		2,125
Gen-Probe, Inc.*		25,699		2,113
Henry Schein, Inc.*		50,662		3,977
Hill-Rom Holdings, Inc.		34,930		1,078
Hologic, Inc.*		148,804		2,684
IDEXX Laboratories, Inc.*		31,066		2,986
Masimo Corp.*		32,092		718
ResMed, Inc.*		80,371		2,508
STERIS Corp.		32,517		1,020
Techne Corp.		20,797		1,543
Teleflex, Inc.		22,990		1,400
Thoratec Corp.*		32,963		1,107
				23,259
Healthcare - Services - 2.4%
AMERIGROUP Corp.*		27,404		1,806
Community Health Systems, Inc.*		51,187		1,435
Covance, Inc.*		31,285		1,497
Health Management Associates, Inc., Class A*		143,517		1,127
Health Net, Inc.*		46,732		1,134
LifePoint Hospitals, Inc.*		27,274		1,118
Lincare Holdings, Inc.		48,479		1,649
MEDNAX, Inc.*		27,703		1,899
Universal Health Services, Inc., Class B		54,569		2,355
WellCare Health Plans, Inc.*		24,175		1,281
				15,301
Home Builders - 1.0%
KB Home		40,990		402
MDC Holdings, Inc.		21,446		701
NVR, Inc.*		2,853		2,425
Thor Industries, Inc.		23,859		654
Toll Brothers, Inc.*		82,691		2,458
				6,640
Home Furnishings - 0.1%
Tempur-Pedic International, Inc.*		35,463		829
Household Products/Wares - 1.1%
Church & Dwight Co., Inc.		78,122		4,334
Scotts Miracle-Gro (The) Co., Class A		24,365		1,002

NORTHERN FUNDS QUARTERLY REPORT    55    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2% continued
Household Products/Wares - 1.1% continued
Tupperware Brands Corp.		31,381	$	1,718
				7,054
Insurance - 4.5%
Alleghany Corp.*		8,192		2,783
American Financial Group, Inc.		42,459		1,666
Arthur J. Gallagher & Co.		66,568		2,335
Aspen Insurance Holdings Ltd.		40,421		1,168
Brown & Brown, Inc.		65,509		1,786
Everest Re Group Ltd.		29,675		3,071
Fidelity National Financial, Inc., Class A		125,808		2,423
First American Financial Corp.		59,475		1,009
Hanover Insurance Group (The), Inc.		25,374		993
HCC Insurance Holdings, Inc.		56,819		1,784
Kemper Corp.		27,750		853
Mercury General Corp.		20,431		851
Old Republic International Corp.		146,288		1,213
Protective Life Corp.		45,513		1,338
Reinsurance Group of America, Inc.		41,389		2,202
StanCorp Financial Group, Inc.		25,015		930
W.R. Berkley Corp.		63,016		2,453
				28,858
Internet - 1.9%
AOL, Inc.*		52,659		1,479
Equinix, Inc.*		27,076		4,756
Rackspace Hosting, Inc.*		60,139		2,642
TIBCO Software, Inc.*		92,947		2,781
ValueClick, Inc.*		45,309		743
				12,401
Investment Companies - 0.1%
Apollo Investment Corp.		114,139		877
Iron/Steel - 0.9%
Carpenter Technology Corp.		24,798		1,186
Commercial Metals Co.		65,202		824
Reliance Steel & Aluminum Co.		42,327		2,138
Steel Dynamics, Inc.		123,516		1,451
				5,599
Leisure Time - 0.7%
Life Time Fitness, Inc.*		23,974		1,115
Polaris Industries, Inc.		38,619		2,761
WMS Industries, Inc.*		31,200		622
				4,498
Machinery - Construction & Mining - 0.2%
Terex Corp.*		61,931		1,104
Machinery - Diversified - 1.9%
AGCO Corp.*		54,821		2,507
Gardner Denver, Inc.		28,207		1,492
Graco, Inc.		34,092		1,571
IDEX Corp.		47,274		1,843
Nordson Corp.		31,824		1,632
Wabtec Corp.		27,094		2,114
Zebra Technologies Corp., Class A*		29,318		1,007
				12,166
Media - 1.0%
AMC Networks, Inc., Class A*		32,425		1,153
FactSet Research Systems, Inc.		25,287		2,350
John Wiley & Sons, Inc., Class A		26,210		1,284
Meredith Corp.		20,970		670
New York Times (The) Co., Class A*		68,268		532
Scholastic Corp.		14,337		404
				6,393
Metal Fabrication/Hardware - 0.7%
Timken (The) Co.		47,418		2,171
Valmont Industries, Inc.		12,702		1,536
Worthington Industries, Inc.		29,731		609
				4,316
Mining - 0.6%
Compass Minerals International, Inc.		18,626		1,421
Royal Gold, Inc.		33,583		2,633
				4,054
Miscellaneous Manufacturing - 2.5%
Aptargroup, Inc.		37,336		1,906
Carlisle Cos., Inc.		34,852		1,848
CLARCOR, Inc.		28,362		1,366
Crane Co.		27,837		1,013
Donaldson Co., Inc.		83,616		2,790
Harsco Corp.		45,410		925
ITT Corp.		51,988		915
Pentair, Inc.		55,641		2,130
SPX Corp.		28,535		1,864
Trinity Industries, Inc.		45,230		1,130
				15,887
Office Furnishings - 0.2%
Herman Miller, Inc.		32,696		605

EQUITY INDEX FUNDS    56    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2% continued
Office Furnishings - 0.2% continued
HNI Corp.		25,939	$	668
				1,273
Oil & Gas - 2.8%
Atwood Oceanics, Inc.*		31,992		1,211
Bill Barrett Corp.*		27,436		588
Cimarex Energy Co.		48,346		2,665
Energen Corp.		40,669		1,835
Forest Oil Corp.*		66,291		486
HollyFrontier Corp.		116,415		4,125
Northern Oil and Gas, Inc.*		35,801		571
Patterson-UTI Energy, Inc.		88,292		1,285
Plains Exploration & Production Co.*		72,321		2,544
Quicksilver Resources, Inc.*		67,622		366
SM Energy Co.		36,165		1,776
Unit Corp.*		23,398		863
				18,315
Oil & Gas Services - 1.8%
CARBO Ceramics, Inc.		11,199		859
Dresser-Rand Group, Inc.*		42,629		1,899
Dril-Quip, Inc.*		19,523		1,281
Helix Energy Solutions Group, Inc.*		59,571		978
Oceaneering International, Inc.		60,959		2,917
Oil States International, Inc.*		28,964		1,917
Superior Energy Services, Inc.*		88,893		1,798
				11,649
Packaging & Containers - 1.1%
Greif, Inc., Class A		17,316		710
Packaging Corp. of America		55,115		1,557
Rock-Tenn Co., Class A		39,822		2,172
Silgan Holdings, Inc.		27,994		1,195
Sonoco Products Co.		56,714		1,710
				7,344
Pharmaceuticals - 1.4%
Catalyst Health Solutions, Inc.*		28,515		2,664
Endo Pharmaceuticals Holdings, Inc.*		65,835		2,040
Medicis Pharmaceutical Corp., Class A		33,676		1,150
Omnicare, Inc.		63,605		1,986
VCA Antech, Inc.*		49,262		1,083
				8,923
Real Estate - 0.3%
Jones Lang LaSalle, Inc.		24,603		1,731
Real Estate Investment Trusts - 9.5%
Alexandria Real Estate Equities, Inc.		34,994		2,545
American Campus Communities, Inc.		42,075		1,893
BioMed Realty Trust, Inc.		87,017		1,625
BRE Properties, Inc.		43,160		2,159
Camden Property Trust		45,172		3,057
Corporate Office Properties Trust		40,583		954
Duke Realty Corp.		149,938		2,195
Equity One, Inc.		33,662		714
Essex Property Trust, Inc.		19,807		3,049
Federal Realty Investment Trust		35,943		3,741
Highwoods Properties, Inc.		41,515		1,397
Home Properties, Inc.		27,284		1,674
Hospitality Properties Trust		69,690		1,726
Liberty Property Trust		66,192		2,439
Macerich (The) Co.		74,747		4,414
Mack-Cali Realty Corp.		49,489		1,439
National Retail Properties, Inc.		60,243		1,704
Omega Healthcare Investors, Inc.		59,530		1,339
Potlatch Corp.		22,666		724
Rayonier, Inc.		68,604		3,080
Rayonier, Inc. - (Fractional Shares)*		50,000		—
Realty Income Corp.		75,282		3,145
Regency Centers Corp.		50,734		2,413
Senior Housing Properties Trust		91,749		2,048
SL Green Realty Corp.		50,467		4,049
Taubman Centers, Inc.		33,072		2,552
UDR, Inc.		140,915		3,641
Weingarten Realty Investors		68,165		1,795
				61,511
Retail - 7.0%
Advance Auto Parts, Inc.		41,402		2,824
Aeropostale, Inc.*		45,551		812
American Eagle Outfitters, Inc.		110,373		2,178
ANN, Inc.*		27,264		695
Ascena Retail Group, Inc.*		76,072		1,417
Barnes & Noble, Inc.*		22,599		372
Bob Evans Farms, Inc.		16,434		661
Brinker International, Inc.		42,457		1,353
Cheesecake Factory (The), Inc.*		30,322		969
Chico’s FAS, Inc.		94,593		1,404
Collective Brands, Inc.*		34,869		747
Copart, Inc.*		58,582		1,388
Dick’s Sporting Goods, Inc.		53,232		2,555
Foot Locker, Inc.		85,322		2,609

NORTHERN FUNDS QUARTERLY REPORT    57    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2% continued
Retail - 7.0% continued
Guess?, Inc.		36,490	$	1,108
HSN, Inc.		22,208		896
MSC Industrial Direct Co., Inc., Class A		25,998		1,704
Office Depot, Inc.*		158,828		343
Panera Bread Co., Class A*		16,768		2,338
PetSmart, Inc.		61,035		4,161
PVH Corp.		39,661		3,085
RadioShack Corp.		55,041		211
Regis Corp.		31,991		575
Saks, Inc.*		89,771		956
Signet Jewelers Ltd.		47,945		2,110
Tractor Supply Co.		40,580		3,371
Wendy’s (The) Co.		167,143		789
Williams-Sonoma, Inc.		56,100		1,962
World Fuel Services Corp.		40,544		1,542
				45,135
Savings & Loans - 0.9%
Astoria Financial Corp.		47,717		468
First Niagara Financial Group, Inc.		198,453		1,518
New York Community Bancorp, Inc.		247,430		3,100
Washington Federal, Inc.		60,597		1,024
				6,110
Semiconductors - 2.2%
Atmel Corp.*		250,024		1,675
Cree, Inc.*		65,190		1,673
Cypress Semiconductor Corp.*		85,844		1,135
Fairchild Semiconductor International, Inc.*		72,130		1,017
Integrated Device Technology, Inc.*		80,128		450
International Rectifier Corp.*		38,915		778
Intersil Corp., Class A		71,332		760
MEMC Electronic Materials, Inc.*		131,667		286
QLogic Corp.*		54,525		746
Rovi Corp.*		62,536		1,227
Semtech Corp.*		36,702		892
Silicon Laboratories, Inc.*		24,239		919
Skyworks Solutions, Inc.*		106,819		2,924
				14,482
Shipbuilding - 0.2%
Huntington Ingalls Industries, Inc.*		27,934		1,124
Software - 3.6%
ACI Worldwide, Inc.*		22,478		994
Acxiom Corp.*		42,884		648
Advent Software, Inc.*		17,839		484
Allscripts Healthcare Solutions, Inc.*		107,459		1,174
ANSYS, Inc.*		52,340		3,303
Broadridge Financial Solutions, Inc.		70,657		1,503
Compuware Corp.*		123,239		1,145
Concur Technologies, Inc.*		26,441		1,801
Fair Isaac Corp.		19,351		818
Informatica Corp.*		60,982		2,583
Mantech International Corp., Class A		13,381		314
MSCI, Inc.*		68,512		2,331
Parametric Technology Corp.*		66,868		1,401
Quest Software, Inc.*		32,002		891
Solera Holdings, Inc.		39,145		1,636
VeriFone Systems, Inc.*		60,613		2,006
				23,032
Telecommunications - 1.5%
ADTRAN, Inc.		35,995		1,087
Ciena Corp.*		55,633		911
NeuStar, Inc., Class A*		37,550		1,254
Plantronics, Inc.		23,735		793
Polycom, Inc.*		100,108		1,053
RF Micro Devices, Inc.*		155,736		662
Telephone & Data Systems, Inc.		54,429		1,159
Tellabs, Inc.		205,884		685
tw telecom, Inc.*		84,607		2,171
				9,775
Textiles - 0.4%
Mohawk Industries, Inc.*		32,209		2,249
Transportation - 2.4%
Alexander & Baldwin, Inc.*		23,620		1,258
Con-way, Inc.		31,457		1,136
J.B. Hunt Transport Services, Inc.		50,852		3,031
Kansas City Southern		62,022		4,314
Kirby Corp.*		31,508		1,483
Landstar System, Inc.		26,363		1,364
Tidewater, Inc.		28,927		1,341
UTi Worldwide, Inc.		57,978		847
Werner Enterprises, Inc.		25,041		598
				15,372
Trucking & Leasing - 0.2%
GATX Corp.		26,328		1,014

EQUITY INDEX FUNDS    58    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2% continued
Water - 0.3%
Aqua America, Inc.		78,354	$	1,956
Total Common Stocks (Cost $557,014)				628,430
INVESTMENT COMPANIES - 1.7%
Northern Institutional Funds - Diversified Assets Portfolio(1) (2)		10,832,855		10,833
Total Investment Companies (Cost $10,833)				10,833
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.3%
U.S. Treasury Bill, 0.14%, 11/1/12(3)	$	2,115	$	2,114
Total Short-Term Investments (Cost $2,114)				2,114
Total Investments - 99.2% (Cost $569,961)				641,377
Other Assets less Liabilities - 0.8%				4,969
NET ASSETS - 100.0%			$	646,346

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $21,976,000 with net sales of approximately $11,143,000 during the three months ended June 30, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the Mid Cap Index Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
E-Mini S&P MidCap 400		190	$	17,851		Long		9/12	$	600

At June 30, 2012, the industry sectors for the Mid Cap Index Fund were:

INDUSTRY SECTOR	% OF LONG- TERM INVESTMENTS
Consumer Discretionary		13.4	%
Consumer Staples		3.6
Energy		5.4
Financials		22.3
Health Care		11.0
Industrials		16.2
Information Technology		15.5
Materials		6.9
Telecommunication Services		0.5
Utilities		5.2
Total		100.0	%

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	585,653
Gross tax appreciation of investments	$	100,585
Gross tax depreciation of investments		(44,861	)
Net tax appreciation of investments	$	55,724

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Mid Cap Index Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	628,430	(1)	$	—	$	—	$	628,430
Investment Companies		10,833			—		—		10,833
Short-Term Investments		—			2,114		—		2,114
Total Investments	$	639,263		$	2,114	$	—	$	641,377

NORTHERN FUNDS QUARTERLY REPORT    59    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	600	$	—	$	—	$	600

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EQUITY INDEX FUNDS    60    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8%
Advertising - 0.1%
Harte-Hanks, Inc.		18,747	$	171
Marchex, Inc., Class B		10,420		38
MDC Partners, Inc., Class A		10,824		123
Millennial Media, Inc.*		4,853		64
				396
Aerospace/Defense - 1.2%
AAR Corp.		17,153		231
Aerovironment, Inc.*		7,361		194
API Technologies Corp.*		13,727		50
Astronics Corp.*		4,456		126
CPI Aerostructures, Inc.*		2,394		26
Cubic Corp.		6,763		325
Curtiss-Wright Corp.		19,962		620
Esterline Technologies Corp.*		13,037		813
GenCorp, Inc.*		25,338		165
HEICO Corp.		22,398		885
Kaman Corp.		11,231		347
Kratos Defense & Security Solutions, Inc.*		17,060		100
LMI Aerospace, Inc.*		3,793		66
MA-COM Technology Solutions Holdings, Inc.*		2,574		48
Moog, Inc., Class A*		19,251		796
National Presto Industries, Inc.		2,087		146
Orbital Sciences Corp.*		25,072		324
SIFCO Industries, Inc.		1,057		24
Teledyne Technologies, Inc.*		15,628		963
				6,249
Agriculture - 0.4%
Alico, Inc.		1,544		47
Alliance One International, Inc.*		35,826		124
Andersons (The), Inc.		7,939		339
Cadiz, Inc.*		5,502		40
Griffin Land & Nurseries, Inc.		1,233		34
Limoneira Co.		3,511		57
Star Scientific, Inc.*		61,947		282
Tejon Ranch Co.*		5,603		160
Universal Corp.		9,897		459
Vector Group Ltd.		22,491		383
				1,925
Airlines - 0.7%
Alaska Air Group, Inc.*		30,210		1,084
Allegiant Travel Co.*		6,344		442
Hawaiian Holdings, Inc.*		22,289		145
JetBlue Airways Corp.*		99,300		526
Republic Airways Holdings, Inc.*		20,829		116
SkyWest, Inc.		21,397		140
Spirit Airlines, Inc.*		17,682		344
US Airways Group, Inc.*		69,017		920
				3,717
Apparel - 1.2%
Cherokee, Inc.		3,425		48
Columbia Sportswear Co.		5,199		279
Crocs, Inc.*		38,230		617
Delta Apparel, Inc.*		3,100		42
Ennis, Inc.		11,228		173
G-III Apparel Group Ltd.*		6,860		162
Iconix Brand Group, Inc.*		30,424		531
Jones Group (The), Inc.		34,904		334
K-Swiss, Inc., Class A*		12,244		38
Maidenform Brands, Inc.*		10,057		200
Oxford Industries, Inc.		5,944		266
Perry Ellis International, Inc.*		4,869		101
Quiksilver, Inc.*		57,169		133
R.G. Barry Corp.		3,764		51
Skechers U.S.A., Inc., Class A*		16,085		328
Steven Madden Ltd.*		16,687		530
True Religion Apparel, Inc.		10,999		319
Unifi, Inc.*		5,968		68
Warnaco Group (The), Inc.*		17,440		743
Weyco Group, Inc.		2,699		62
Wolverine World Wide, Inc.		20,686		802
				5,827
Auto Manufacturers - 0.0%
Wabash National Corp.*		29,180		193
Auto Parts & Equipment - 0.9%
Accuride Corp.*		20,132		121
American Axle & Manufacturing Holdings, Inc.*		28,372		298
Amerigon, Inc.*		12,787		147
Commercial Vehicle Group, Inc.*		10,197		88
Cooper Tire & Rubber Co.		26,507		465
Dana Holding Corp.		62,850		805
Dorman Products, Inc.*		10,430		262
Douglas Dynamics, Inc.		9,395		134
Exide Technologies*		31,704		106
Federal-Mogul Corp.*		7,925		87

NORTHERN FUNDS QUARTERLY REPORT    61    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Auto Parts & Equipment - 0.9% continued
Fuel Systems Solutions, Inc.*		6,025	$	100
Meritor, Inc.*		41,023		214
Miller Industries, Inc.		4,379		70
Modine Manufacturing Co.*		19,910		138
Spartan Motors, Inc.		13,620		71
Standard Motor Products, Inc.		8,456		119
Superior Industries International, Inc.		9,816		161
Tenneco, Inc.*		25,828		693
Titan International, Inc.		17,971		441
Tower International, Inc.*		2,387		25
				4,545
Banks - 6.4%
1st Source Corp.		6,073		137
1st United Bancorp, Inc.*		12,700		79
Access National Corp.		3,125		41
Alliance Financial Corp.		2,001		69
American National Bankshares, Inc.		3,320		78
Ameris Bancorp*		10,367		131
Ames National Corp.		3,359		77
Arrow Financial Corp.		4,292		104
Bancfirst Corp.		2,774		116
Bancorp (The), Inc.*		11,846		112
BancorpSouth, Inc.		40,161		583
Bank of Kentucky Financial Corp.		2,489		66
Bank of Marin Bancorp		2,226		82
Bank of the Ozarks, Inc.		12,411		373
Banner Corp.		7,779		170
Bar Harbor Bankshares		1,644		59
BBCN Bancorp, Inc.*		33,167		361
Berkshire Bancorp, Inc.*		1,804		16
Boston Private Financial Holdings, Inc.		33,245		297
Bridge Bancorp, Inc.		3,639		86
Bridge Capital Holdings*		3,935		64
Bryn Mawr Bank Corp.		5,008		106
C&F Financial Corp.		1,357		55
Camden National Corp.		3,265		120
Capital Bank Corp.*		5,006		11
Capital City Bank Group, Inc.		4,963		37
Cardinal Financial Corp.		12,421		153
Cascade Bancorp*		2,135		13
Cass Information Systems, Inc.		4,044		163
Cathay General Bancorp		33,490		553
Center Bancorp, Inc.		5,057		57
Centerstate Banks, Inc.		12,187		87
Central Pacific Financial Corp.*		9,193		130
Century Bancorp, Inc., Class A		1,493		44
Chemical Financial Corp.		11,695		251
Citizens & Northern Corp.		4,958		94
Citizens Republic Bancorp, Inc.*		17,010		291
City Holding Co.		6,100		206
CNB Financial Corp.		5,277		86
CoBiz Financial, Inc.		15,584		98
Columbia Banking System, Inc.		16,877		318
Community Bank System, Inc.		16,779		455
Community Trust Bancorp, Inc.		5,875		197
Crescent Financial Bancshares, Inc.*		1,669		8
CVB Financial Corp.		37,733		440
Eagle Bancorp, Inc.*		7,194		113
Encore Bancshares, Inc.*		4,080		84
Enterprise Bancorp, Inc.		2,616		43
Enterprise Financial Services Corp.		7,675		84
Farmers National Banc Corp.		7,962		50
Fidelity Southern Corp.		3,988		34
Financial Institutions, Inc.		5,734		97
First BanCorp*		29,900		118
First Bancorp		6,273		56
First Bancorp, Inc.		3,943		67
First Busey Corp.		30,678		148
First California Financial Group, Inc.*		9,537		66
First Commonwealth Financial Corp.		45,032		303
First Community Bancshares, Inc.		6,915		100
First Connecticut Bancorp, Inc.		7,485		101
First Financial Bancorp		24,881		398
First Financial Bankshares, Inc.		13,419		464
First Financial Corp.		4,701		136
First Interstate Bancsystem, Inc.		6,550		93
First Merchants Corp.		12,166		152
First Midwest Bancorp, Inc.		31,872		350
First of Long Island (The) Corp.		3,446		100
FirstMerit Corp.		46,672		771
FNB Corp.		59,389		646
FNB United Corp.*		4,256		55
Franklin Financial Corp.*		5,948		98
German American Bancorp, Inc.		5,493		113
Glacier Bancorp, Inc.		30,583		474
Great Southern Bancorp, Inc.		4,124		114
Green Bankshares, Inc.*		5,747		10
Guaranty Bancorp*		32,318		68

EQUITY INDEX FUNDS    62    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Banks - 6.4% continued
Hancock Holding Co.		32,450	$	988
Hanmi Financial Corp.*		13,180		138
Heartland Financial USA, Inc.		6,100		146
Heritage Commerce Corp.*		8,124		53
Heritage Financial Corp.		6,571		96
Heritage Oaks Bancorp*		8,523		47
Home BancShares, Inc.		9,351		286
Horizon Bancorp		1,590		42
Hudson Valley Holding Corp.		6,698		121
IBERIABANK Corp.		12,564		634
Independent Bank Corp.		9,188		268
International Bancshares Corp.		22,649		442
Lakeland Bancorp, Inc.		11,447		120
Lakeland Financial Corp.		6,928		186
MainSource Financial Group, Inc.		8,648		102
MB Financial, Inc.		23,266		501
Mercantile Bank Corp.*		3,635		67
Merchants Bancshares, Inc.		2,153		59
Metro Bancorp, Inc.*		5,997		72
MetroCorp Bancshares, Inc.*		6,715		72
Middleburg Financial Corp.		2,263		38
MidSouth Bancorp, Inc.		3,541		50
MidWestOne Financial Group, Inc.		2,878		62
National Bankshares, Inc.		2,943		89
National Penn Bancshares, Inc.		52,485		502
NBT Bancorp, Inc.		14,313		309
Northrim BanCorp, Inc.		2,739		59
Old National Bancorp		40,291		484
OmniAmerican Bancorp, Inc.*		4,837		104
Oriental Financial Group, Inc.		17,606		195
Pacific Capital Bancorp*		1,831		84
Pacific Continental Corp.		7,217		64
Pacific Mercantile Bancorp*		4,504		31
PacWest Bancorp		12,894		305
Park National Corp.		4,823		336
Park Sterling Corp.*		13,908		66
Peapack Gladstone Financial Corp.		3,756		58
Penns Woods Bancorp, Inc.		1,532		61
Peoples Bancorp, Inc.		4,520		99
Pinnacle Financial Partners, Inc.*		14,700		287
Preferred Bank*		4,981		67
PrivateBancorp, Inc.		25,684		379
Prosperity Bancshares, Inc.		20,189		849
Renasant Corp.		10,709		168
Republic Bancorp, Inc., Class A		4,415		98
S&T Bancorp, Inc.		12,413		229
S.Y. Bancorp, Inc.		5,264		126
Sandy Spring Bancorp, Inc.		10,096		182
SCBT Financial Corp.		6,401		226
Seacoast Banking Corp.*		32,472		49
Sierra Bancorp		5,150		51
Simmons First National Corp., Class A		7,266		169
Southside Bancshares, Inc.		7,292		164
Southwest Bancorp, Inc.*		8,517		80
State Bank Financial Corp.*		13,534		205
StellarOne Corp.		10,028		125
Sterling Bancorp		13,448		134
Sterling Financial Corp.*		11,563		218
Suffolk Bancorp*		4,285		56
Sun Bancorp, Inc.*		17,542		47
Susquehanna Bancshares, Inc.		79,936		823
Taylor Capital Group, Inc.*		6,912		113
Texas Capital Bancshares, Inc.*		16,118		651
Tompkins Financial Corp.		3,932		148
TowneBank		10,859		152
Trico Bancshares		6,795		105
Trustco Bank Corp. NY		39,863		218
Trustmark Corp.		27,552		674
UMB Financial Corp.		13,727		703
Umpqua Holdings Corp.		47,631		627
Union First Market Bankshares Corp.		8,849		128
United Bankshares, Inc.		21,378		553
United Community Banks, Inc.*		18,037		155
Univest Corp. of Pennsylvania		7,270		120
Virginia Commerce Bancorp, Inc.*		11,387		96
Walker & Dunlop, Inc.*		4,776		61
Washington Banking Co.		6,490		90
Washington Trust Bancorp, Inc.		6,182		151
Webster Financial Corp.		30,695		665
WesBanco, Inc.		9,935		211
West Bancorporation, Inc.		6,300		60
West Coast Bancorp*		8,390		165
Westamerica Bancorporation		11,765		555
Western Alliance Bancorp*		29,717		278
Wilshire Bancorp, Inc.*		26,684		146
Wintrust Financial Corp.		15,450		548
				32,121

NORTHERN FUNDS QUARTERLY REPORT    63    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Beverages - 0.2%
Boston Beer (The) Co., Inc., Class A*		3,287	$	398
Central European Distribution Corp.*		26,440		76
Coca-Cola Bottling Co. Consolidated		2,002		129
Craft Brewers Alliance, Inc.*		4,898		40
Farmer Bros. Co.*		3,320		26
National Beverage Corp.*		4,577		68
Peet’s Coffee & Tea, Inc.*		5,633		338
				1,075
Biotechnology - 2.4%
Acorda Therapeutics, Inc.*		17,023		401
Aegerion Pharmaceuticals, Inc.*		9,166		136
Affymax, Inc.*		15,416		199
Agenus, Inc.*		9,678		51
Alnylam Pharmaceuticals, Inc.*		19,930		233
AMAG Pharmaceuticals, Inc.*		9,091		140
Arena Pharmaceuticals, Inc.*		83,834		837
Arqule, Inc.*		25,223		150
Astex Pharmaceuticals*		39,476		83
BioCryst Pharmaceuticals, Inc.*		20,877		83
Biotime, Inc.*		12,942		60
Cambrex Corp.*		12,381		116
Celldex Therapeutics, Inc.*		25,144		130
Ceres, Inc.*		2,316		21
Coronado Biosciences, Inc.*		5,748		29
Cubist Pharmaceuticals, Inc.*		26,907		1,020
Curis, Inc.*		33,521		181
Dendreon Corp.*		65,485		485
Discovery Laboratories, Inc.*		18,410		43
Dynavax Technologies Corp.*		73,988		320
Emergent Biosolutions, Inc.*		10,988		166
Enzon Pharmaceuticals, Inc.*		17,896		123
Exact Sciences Corp.*		24,302		261
Exelixis, Inc.*		63,227		350
Geron Corp.*		57,228		98
GTx, Inc.*		12,220		43
Halozyme Therapeutics, Inc.*		38,142		338
Harvard Bioscience, Inc.*		10,747		41
Immunogen, Inc.*		32,842		551
Immunomedics, Inc.*		27,580		98
InterMune, Inc.*		27,801		332
Lexicon Pharmaceuticals, Inc.*		84,333		190
Ligand Pharmaceuticals, Inc., Class B*		7,217		122
Maxygen, Inc.*		11,448		68
Medicines (The) Co.*		23,432		538
Merrimack Pharmaceuticals, Inc.*		6,455		47
Momenta Pharmaceuticals, Inc.*		19,896		269
NewLink Genetics Corp.*		5,372		80
Novavax, Inc.*		49,097		77
NPS Pharmaceuticals, Inc.*		36,026		310
Omeros Corp.*		9,535		95
OncoGenex Pharmaceutical, Inc.*		6,426		86
Oncothyreon, Inc.*		24,240		113
Pacific Biosciences of California, Inc.*		15,777		34
PDL BioPharma, Inc.		59,290		393
Repligen Corp.*		13,067		56
RTI Biologics, Inc.*		24,762		93
Sangamo Biosciences, Inc.*		21,816		120
Seattle Genetics, Inc.*		40,402		1,026
Sequenom, Inc.*		48,213		196
Spectrum Pharmaceuticals, Inc.*		25,288		393
Sunesis Pharmaceuticals, Inc.*		10,173		29
Transcept Pharmaceuticals, Inc.*		5,355		33
Trius Therapeutics, Inc.*		10,525		61
Verastem, Inc.*		2,445		25
Vical, Inc.*		32,723		118
XOMA Corp.*		28,922		87
ZIOPHARM Oncology, Inc.*		28,822		171
				11,949
Building Materials - 1.1%
AAON, Inc.		7,908		149
American DG Energy, Inc.*		10,336		23
Apogee Enterprises, Inc.		11,992		193
Builders FirstSource, Inc.*		19,076		90
Comfort Systems USA, Inc.		16,314		163
Drew Industries, Inc.*		8,350		233
Eagle Materials, Inc.		19,243		719
Gibraltar Industries, Inc.*		12,617		131
Griffon Corp.		19,547		168
Headwaters, Inc.*		26,374		136
Interline Brands, Inc.*		13,550		340
Louisiana-Pacific Corp.*		58,469		636
LSI Industries, Inc.		8,993		64
NCI Building Systems, Inc.*		7,947		86
Nortek, Inc.*		3,290		165
Patrick Industries, Inc.*		1,677		21
PGT, Inc.*		8,248		25
Quanex Building Products Corp.		15,712		281
Simpson Manufacturing Co., Inc.		17,068		504

EQUITY INDEX FUNDS    64    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Building Materials - 1.1% continued
Texas Industries, Inc.		9,594	$	374
Trex Co., Inc.*		6,054		182
Universal Forest Products, Inc.		8,372		326
USG Corp.*		31,487		600
				5,609
Chemicals - 1.7%
A. Schulman, Inc.		12,516		248
Aceto Corp.		10,959		99
American Vanguard Corp.		11,834		315
Balchem Corp.		12,443		406
Chemtura Corp.*		41,967		609
Codexis, Inc.*		11,312		42
Ferro Corp.*		36,012		173
Georgia Gulf Corp.		14,565		374
H.B. Fuller Co.		21,227		652
Hawkins, Inc.		3,904		149
Innophos Holdings, Inc.		9,265		523
Innospec, Inc.*		9,733		288
KMG Chemicals, Inc.		3,306		64
Kraton Performance Polymers, Inc.*		13,718		301
Landec Corp.*		10,387		89
Minerals Technologies, Inc.		7,559		482
Oil-Dri Corp. of America		2,143		47
Olin Corp.		34,067		712
OM Group, Inc.*		13,792		262
Omnova Solutions, Inc.*		19,953		150
PolyOne Corp.		38,424		526
Quaker Chemical Corp.		5,506		254
Sensient Technologies Corp.		21,244		780
Spartech Corp.*		13,351		69
Stepan Co.		3,570		336
TPC Group, Inc.*		5,549		205
Zep, Inc.		9,553		131
Zoltek Cos., Inc.*		12,227		110
				8,396
Coal - 0.3%
Arch Coal, Inc.		90,311		622
Cloud Peak Energy, Inc.*		25,962		439
Hallador Energy Co.		2,783		24
Patriot Coal Corp.*		37,845		46
SunCoke Energy, Inc.*		29,770		436
Westmoreland Coal Co.*		4,619		37
				1,604
Commercial Services - 6.4%
ABM Industries, Inc.		22,870		447
Acacia Research - Acacia Technologies*		21,137		787
Accretive Health, Inc.*		23,956		263
Advisory Board (The) Co.*		14,583		723
American Public Education, Inc.*		7,812		250
American Reprographics Co.*		15,091		76
AMN Healthcare Services, Inc.*		16,768		99
Arbitron, Inc.		11,314		396
Ascent Capital Group, Inc., Class A*		6,052		313
AVEO Pharmaceuticals, Inc.*		16,534		201
Avis Budget Group, Inc.*		45,139		686
Barrett Business Services, Inc.		3,027		64
Bridgepoint Education, Inc.*		7,521		164
Brink’s (The) Co.		20,102		466
Capella Education Co.*		5,746		200
Cardtronics, Inc.*		18,755		567
Career Education Corp.*		22,073		148
Carriage Services, Inc.		6,769		56
CBIZ, Inc.*		16,658		99
CDI Corp.		5,823		95
Cenveo, Inc.*		22,850		44
Chemed Corp.		8,089		489
Collectors Universe		2,289		34
Consolidated Graphics, Inc.*		3,208		93
Convergys Corp.		49,601		733
Corinthian Colleges, Inc.*		32,004		92
Corporate Executive Board (The) Co.		14,296		584
Corvel Corp.*		2,586		127
CoStar Group, Inc.*		11,301		918
CRA International, Inc.*		4,493		66
Cross Country Healthcare, Inc.*		12,331		54
Deluxe Corp.		21,683		541
Dollar Thrifty Automotive Group, Inc.*		11,918		965
Education Management Corp.*		11,388		79
Electro Rent Corp.		8,243		134
Euronet Worldwide, Inc.*		21,636		370
ExamWorks Group, Inc.*		12,426		164
ExlService Holdings, Inc.*		9,929		245
Forrester Research, Inc.		5,905		200
Franklin Covey Co.*		5,964		61
FTI Consulting, Inc.*		17,858		513
Geo Group (The), Inc.*		26,134		594
Global Cash Access Holdings, Inc.*		27,953		202
Grand Canyon Education, Inc.*		17,004		356

NORTHERN FUNDS QUARTERLY REPORT    65    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Commercial Services - 6.4% continued
Great Lakes Dredge & Dock Corp.		25,103	$	179
Green Dot Corp., Class A*		10,196		226
H&E Equipment Services, Inc.*		12,210		184
Hackett Group (The), Inc.*		11,259		63
Healthcare Services Group, Inc.		28,556		553
Heartland Payment Systems, Inc.		16,478		496
Heidrick & Struggles International, Inc.		7,537		132
Hill International, Inc.*		8,874		28
HMS Holdings Corp.*		36,553		1,218
Hudson Global, Inc.*		14,222		59
Huron Consulting Group, Inc.*		9,752		309
ICF International, Inc.*		8,468		202
Insperity, Inc.		9,590		259
Integramed America, Inc.*		3,726		52
Intersections, Inc.		3,643		58
K12, Inc.*		11,352		264
Kelly Services, Inc., Class A		11,406		147
Kenexa Corp.*		11,616		337
Kforce, Inc.*		12,046		162
Korn/Ferry International*		20,351		292
Landauer, Inc.		4,016		230
Lincoln Educational Services Corp.		9,475		62
Live Nation Entertainment, Inc.*		59,590		547
Mac-Gray Corp.		4,851		68
Matthews International Corp., Class A		11,943		388
MAXIMUS, Inc.		14,429		747
McGrath Rentcorp		10,531		279
Medifast, Inc.*		5,941		117
MoneyGram International, Inc.*		9,103		133
Monro Muffler Brake, Inc.		13,135		437
Monster Worldwide, Inc.*		51,565		438
Multi-Color Corp.		5,738		128
National American University Holdings, Inc.		3,327		14
National Research Corp.		1,069		56
Navigant Consulting, Inc.*		22,065		279
Odyssey Marine Exploration, Inc.*		31,637		118
On Assignment, Inc.*		18,262		291
PAREXEL International Corp.*		25,455		719
PDI, Inc.*		4,259		35
Pendrell Corp.*		63,925		72
PHH Corp.*		24,092		421
Premier Exhibitions, Inc.*		10,897		29
PRGX Global, Inc.*		9,115		72
Providence Service (The) Corp.*		5,369		74
Quad Graphics, Inc.		10,540		152
Rent-A-Center, Inc.		25,255		852
Resources Connection, Inc.		18,073		222
RPX Corp.*		8,994		129
ServiceSource International, Inc.*		21,105		292
Sotheby’s		28,825		962
Standard Parking Corp.*		6,853		147
Steiner Leisure Ltd.*		6,512		302
Stewart Enterprises, Inc., Class A		31,843		227
Strayer Education, Inc.		5,016		547
Swisher Hygiene, Inc.*		47,898		121
Team Health Holdings, Inc.*		12,072		291
Team, Inc.*		8,458		264
TeleTech Holdings, Inc.*		9,751		156
TMS International Corp., Class A*		5,623		56
TNS, Inc.*		10,492		188
Tree.com, Inc.*		2,535		29
TrueBlue, Inc.*		17,188		266
Universal Technical Institute, Inc.		8,912		120
Valassis Communications, Inc.*		18,017		392
Viad Corp.		8,443		169
VistaPrint N.V.*		15,732		508
Westway Group, Inc.*		5,134		31
Wright Express Corp.*		16,520		1,020
Zillow, Inc.,Class A*		1,157		45
Zipcar, Inc.*		11,423		134
				32,354
Computers - 1.9%
3D Systems Corp.*		18,365		627
Acorn Energy, Inc.		7,605		63
Agilysys, Inc.*		6,600		57
CACI International, Inc., Class A*		11,322		623
Carbonite, Inc.*		4,792		43
CIBER, Inc.*		30,971		134
Computer Task Group, Inc.*		6,562		98
Cray, Inc.*		15,739		190
Datalink Corp.*		6,472		62
Digimarc Corp.		3,029		78
EasyLink Services International Corp., Class A*		13,447		97
Echelon Corp.*		15,395		54
Electronics for Imaging, Inc.*		19,733		321
iGate Corp.*		13,663		233
Imation Corp.*		12,926		76

EQUITY INDEX FUNDS    66    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Computers - 1.9% continued
Immersion Corp.*		12,342	$	69
Insight Enterprises, Inc.*		18,880		318
j2 Global, Inc.		19,654		519
Key Tronic Corp.*		4,446		37
KEYW Holding (The) Corp.*		8,367		84
LivePerson, Inc.*		23,390		446
Manhattan Associates, Inc.*		8,626		394
Mattersight Corp.*		4,305		34
Maxwell Technologies, Inc.*		12,810		84
Mentor Graphics Corp.*		39,878		598
Mercury Computer Systems, Inc.*		12,858		166
MTS Systems Corp.		6,828		263
Netscout Systems, Inc.*		15,466		334
OCZ Technology Group, Inc.*		28,620		152
Quantum Corp.*		99,574		202
Radisys Corp.*		9,913		62
RealD, Inc.*		18,687		280
Silicon Graphics International Corp.*		13,399		86
Spansion, Inc., Class A*		20,117		221
STEC, Inc.*		15,101		118
Stratasys, Inc.*		9,053		449
Super Micro Computer, Inc.*		12,387		196
SYKES Enterprises, Inc.*		16,299		260
Synaptics, Inc.*		14,315		410
Syntel, Inc.		6,563		398
Unisys Corp.*		18,628		364
Virtusa Corp.*		7,914		106
Vocera Communications, Inc.*		2,843		76
				9,482
Cosmetics/Personal Care - 0.1%
Elizabeth Arden, Inc.*		10,723		416
Inter Parfums, Inc.		6,715		116
Revlon, Inc., Class A*		4,997		71
				603
Distribution/Wholesale - 1.0%
Beacon Roofing Supply, Inc.*		19,935		503
BlueLinx Holdings, Inc.*		10,284		24
Brightpoint, Inc.*		29,453		159
Core-Mark Holding Co., Inc.		4,944		238
Houston Wire & Cable Co.		7,241		79
MWI Veterinary Supply, Inc.*		5,413		556
Owens & Minor, Inc.		27,022		828
Pool Corp.		20,179		817
Rentrak Corp.*		3,892		81
ScanSource, Inc.*		11,710		359
Titan Machinery, Inc.*		7,186		218
United Stationers, Inc.		17,116		461
Watsco, Inc.		12,508		923
				5,246
Diversified Financial Services - 2.2%
Aircastle Ltd.		25,021		301
Artio Global Investors, Inc.		13,878		49
Asset Acceptance Capital Corp.*		6,711		46
Asta Funding, Inc.		4,694		44
BGC Partners, Inc., Class A		41,826		245
Calamos Asset Management, Inc., Class A		7,823		90
California First National Bancorp		971		15
CIFC Corp.*		2,715		20
Cohen & Steers, Inc.		7,841		271
Cowen Group, Inc., Class A*		37,135		99
Credit Acceptance Corp.*		3,344		282
DFC Global Corp.*		18,682		344
Diamond Hill Investment Group, Inc.		1,198		94
Doral Financial Corp.*		54,202		81
Duff & Phelps Corp., Class A		13,364		194
Edelman Financial Group, Inc.		8,764		76
Ellie Mae, Inc.*		9,175		165
Encore Capital Group, Inc.*		9,309		276
Epoch Holding Corp.		6,771		154
Evercore Partners, Inc., Class A		12,157		284
FBR & Co.*		18,592		51
Federal Agricultural Mortgage Corp., Class C		4,300		113
Financial Engines, Inc.*		19,686		422
First Marblehead (The) Corp.*		24,751		29
FX Alliance, Inc.*		2,491		39
FXCM, Inc., Class A		8,751		103
Gain Capital Holdings, Inc.		6,301		31
GAMCO Investors, Inc., Class A		2,680		119
GFI Group, Inc.		28,861		103
Greenhill & Co., Inc.		12,354		440
Higher One Holdings, Inc.*		13,680		167
Horizon Technology Finance Corp.		2,630		43
INTL. FCStone, Inc.*		5,988		116
Investment Technology Group, Inc.*		16,628		153
JMP Group, Inc.		6,894		43
KBW, Inc.		14,740		242

NORTHERN FUNDS QUARTERLY REPORT    67    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Diversified Financial Services - 2.2% continued
Knight Capital Group, Inc., Class A*		42,165	$	503
Ladenburg Thalmann Financial Services, Inc.*		46,838		72
Manning & Napier, Inc.		5,601		80
MarketAxess Holdings, Inc.		15,526		414
Marlin Business Services Corp.		3,659		60
Medley Capital Corp.		7,290		88
MicroFinancial, Inc.		3,599		29
National Financial Partners Corp.*		17,354		232
Nationstar Mortgage Holdings, Inc.*		8,142		175
Nelnet, Inc., Class A		10,164		234
Netspend Holdings, Inc.*		13,181		121
NewStar Financial, Inc.*		10,737		139
Nicholas Financial, Inc.		4,207		54
Ocwen Financial Corp.*		45,667		858
Oppenheimer Holdings, Inc., Class A		4,333		68
Piper Jaffray Cos.*		6,949		163
Portfolio Recovery Associates, Inc.*		7,272		664
Pzena Investment Management, Inc., Class A		4,278		19
Regional Management Corp.*		2,045		34
SeaCube Container Leasing Ltd.		4,563		78
Solar Senior Capital Ltd.		4,008		68
Stifel Financial Corp.*		22,835		706
SWS Group, Inc.*		12,485		67
Virtus Investment Partners, Inc.*		2,522		204
WageWorks, Inc.*		2,752		41
Walter Investment Management Corp.		12,168		285
Westwood Holdings Group, Inc.		2,810		105
WisdomTree Investments, Inc.*		24,894		164
World Acceptance Corp.*		4,677		308
				11,377
Electric - 2.3%
ALLETE, Inc.		16,203		677
Ameresco, Inc., Class A*		8,535		102
Atlantic Power Corp.		48,368		620
Avista Corp.		24,950		666
Black Hills Corp.		18,753		603
CH Energy Group, Inc.		6,414		421
Cleco Corp.		25,903		1,083
El Paso Electric Co.		16,937		562
Empire District Electric (The) Co.		17,918		378
EnerNOC, Inc.*		11,007		80
Genie Energy Ltd., Class B		6,247		48
GenOn Energy, Inc.*		328,836		562
IDACORP, Inc.		21,307		897
MGE Energy, Inc.		9,806		464
NorthWestern Corp.		15,460		567
Ormat Technologies, Inc.		7,560		162
Otter Tail Corp.		15,378		352
Pike Electric Corp.*		7,521		58
PNM Resources, Inc.		33,877		662
Portland General Electric Co.		32,105		856
UIL Holdings Corp.		21,518		772
Unitil Corp.		5,971		158
UNS Energy Corp.		17,102		657
				11,407
Electrical Components & Equipment - 1.0%
A123 Systems, Inc.*		45,536		57
Acuity Brands, Inc.		18,005		917
Advanced Energy Industries, Inc.*		16,886		227
American Superconductor Corp.*		16,610		78
Belden, Inc.		19,197		640
Capstone Turbine Corp.*		126,880		128
Coleman Cable, Inc.		3,807		33
Encore Wire Corp.		7,967		213
EnerSys*		20,384		715
Generac Holdings, Inc.		10,517		253
Graham Corp.		4,181		78
Insteel Industries, Inc.		7,486		83
Littelfuse, Inc.		9,209		524
Powell Industries, Inc.*		3,792		142
Power-One, Inc.*		29,614		134
SunPower Corp.*		16,925		81
Universal Display Corp.*		16,890		607
Vicor Corp.		8,608		60
				4,970
Electronics - 2.2%
American Science & Engineering, Inc.		3,799		214
Analogic Corp.		5,170		321
Badger Meter, Inc.		6,220		234
Bel Fuse, Inc., Class B		4,590		81
Benchmark Electronics, Inc.*		24,373		340
Brady Corp., Class A		20,859		574
Checkpoint Systems, Inc.*		17,383		151
Coherent, Inc.*		10,062		436
CTS Corp.		14,618		138

EQUITY INDEX FUNDS    68    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Electronics - 2.2% continued
Cymer, Inc.*		13,149	$	775
Daktronics, Inc.		15,340		106
Electro Scientific Industries, Inc.		9,740		115
ESCO Technologies, Inc.		11,363		414
FARO Technologies, Inc.*		7,193		303
FEI Co.*		16,121		771
Fluidigm Corp.*		8,702		131
GSI Group, Inc.*		12,369		142
II-VI, Inc.*		22,366		373
InvenSense, Inc.*		15,474		175
Kemet Corp.*		18,682		112
LeCroy Corp.*		7,064		101
Measurement Specialties, Inc.*		6,270		204
Mesa Laboratories, Inc.		1,095		51
Methode Electronics, Inc.		15,813		135
Multi-Fineline Electronix, Inc.*		3,828		94
Newport Corp.*		16,236		195
NVE Corp.*		2,047		110
OSI Systems, Inc.*		8,439		534
Park Electrochemical Corp.		8,990		233
Plexus Corp.*		14,869		419
Rofin-Sinar Technologies, Inc.*		12,162		230
Rogers Corp.*		6,908		274
Sanmina-SCI Corp.*		34,652		284
SRS Labs, Inc.*		4,827		43
Stoneridge, Inc.*		12,336		84
Sypris Solutions, Inc.		4,469		31
Taser International, Inc.*		23,489		123
TTM Technologies, Inc.*		22,796		214
Viasystems Group, Inc.*		1,918		33
Vishay Precision Group, Inc.*		5,194		72
Watts Water Technologies, Inc., Class A		12,636		421
Woodward, Inc.		29,410		1,160
Zagg, Inc.*		10,825		118
Zygo Corp.*		6,919		124
				11,193
Energy - Alternate Sources - 0.2%
Amyris, Inc.*		12,867		57
Clean Energy Fuels Corp.*		28,096		436
Enphase Energy, Inc.*		3,377		21
FuelCell Energy, Inc.*		68,249		69
FutureFuel Corp.		7,831		82
Gevo, Inc.*		8,843		44
Green Plains Renewable Energy, Inc.*		10,627		66
KiOR, Inc., Class A*		11,227		101
Renewable Energy Group, Inc.*		2,817		21
REX American Resources Corp.*		2,555		50
Saratoga Resources, Inc.*		7,716		45
Solazyme, Inc.*		13,909		193
				1,185
Engineering & Construction - 0.7%
Aegion Corp.*		16,688		299
Argan, Inc.		4,175		58
Dycom Industries, Inc.*		14,434		269
EMCOR Group, Inc.		28,372		789
Exponent, Inc.*		5,691		301
Granite Construction, Inc.		16,423		429
Layne Christensen Co.*		8,423		174
MasTec, Inc.*		24,772		373
Michael Baker Corp.*		3,504		91
Mistras Group, Inc.*		6,635		174
MYR Group, Inc.*		8,564		146
Orion Marine Group, Inc.*		11,211		78
Sterling Construction Co., Inc.*		7,192		74
Tutor Perini Corp.*		15,195		193
VSE Corp.		1,910		45
				3,493
Entertainment - 1.0%
Bluegreen Corp.*		6,087		30
Carmike Cinemas, Inc.*		7,536		110
Churchill Downs, Inc.		5,532		325
International Speedway Corp., Class A		11,688		306
Isle of Capri Casinos, Inc.*		9,189		57
Lions Gate Entertainment Corp.*		36,070		532
Marriott Vacations Worldwide Corp.*		11,308		350
Multimedia Games Holding Co., Inc.*		11,637		163
National CineMedia, Inc.		23,856		362
Pinnacle Entertainment, Inc.*		26,597		256
Reading International, Inc., Class A*		7,145		39
Scientific Games Corp., Class A*		24,349		208
Shuffle Master, Inc.*		23,368		322
Six Flags Entertainment Corp.		16,826		912
Speedway Motorsports, Inc.		4,894		83
Vail Resorts, Inc.		15,311		767
				4,822
Environmental Control - 0.7%
ADA-ES, Inc.*		3,825		97

NORTHERN FUNDS QUARTERLY REPORT    69    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Environmental Control - 0.7% continued
Calgon Carbon Corp.*		24,218	$	344
Casella Waste Systems, Inc., Class A*		11,443		67
Ceco Environmental Corp.		3,023		24
Darling International, Inc.*		49,997		825
Energy Recovery, Inc.*		17,752		43
EnergySolutions, Inc.*		32,472		55
GSE Holding, Inc.*		3,256		34
Heckmann Corp.*		56,894		192
Heritage-Crystal Clean, Inc.*		3,267		53
Metalico, Inc.*		17,427		38
Met-Pro Corp.		6,258		58
Mine Safety Appliances Co.		11,744		473
Rentech, Inc.*		97,133		200
Tetra Tech, Inc.*		26,976		704
TRC Cos., Inc.*		6,078		37
US Ecology, Inc.		7,793		138
				3,382
Food - 2.0%
Annie’s, Inc.*		2,120		89
Arden Group, Inc., Class A		481		42
B&G Foods, Inc.		20,536		546
Calavo Growers, Inc.		5,051		129
Cal-Maine Foods, Inc.		6,130		240
Chefs’ Warehouse (The), Inc.*		4,677		85
Chiquita Brands International, Inc.*		19,478		97
Diamond Foods, Inc.		9,661		172
Dole Food Co., Inc.*		15,608		137
Fresh Del Monte Produce, Inc.		16,205		380
Hain Celestial Group (The), Inc.*		15,666		862
Harris Teeter Supermarkets, Inc.		18,657		765
Ingles Markets, Inc., Class A		5,199		83
Inventure Foods, Inc.*		5,523		35
J & J Snack Foods Corp.		6,288		372
John B Sanfilippo & Son, Inc.*		3,367		60
Lancaster Colony Corp.		7,828		558
Lifeway Foods, Inc.		2,238		23
Nash Finch Co.		5,046		108
Pilgrim’s Pride Corp.*		25,642		183
Post Holdings, Inc.*		11,743		361
Sanderson Farms, Inc.		9,761		447
Seaboard Corp.*		130		277
Seneca Foods Corp., Class A*		3,670		99
Smart Balance, Inc.*		25,646		241
Snyders-Lance, Inc.		18,601		469
Spartan Stores, Inc.		8,966		163
SUPERVALU, Inc.		90,268		468
Tootsie Roll Industries, Inc.		10,197		243
TreeHouse Foods, Inc.*		15,283		952
United Natural Foods, Inc.*		20,764		1,139
Village Super Market, Inc., Class A		3,573		117
Weis Markets, Inc.		4,746		211
				10,153
Forest Products & Paper - 0.6%
Boise, Inc.		42,734		281
Buckeye Technologies, Inc.		16,754		478
Clearwater Paper Corp.*		9,938		339
Deltic Timber Corp.		4,660		284
KapStone Paper and Packaging Corp.*		17,174		272
Neenah Paper, Inc.		6,845		183
Orchids Paper Products Co.		2,440		43
P.H. Glatfelter Co.		18,028		295
Resolute Forest Products*		34,455		399
Schweitzer-Mauduit International, Inc.		6,632		452
Wausau Paper Corp.		18,701		182
				3,208
Gas - 1.0%
Chesapeake Utilities Corp.		4,104		179
Delta Natural Gas Co., Inc.		2,882		63
Laclede Group (The), Inc.		9,557		380
New Jersey Resources Corp.		17,676		771
Northwest Natural Gas Co.		11,399		543
Piedmont Natural Gas Co., Inc.		30,469		981
South Jersey Industries, Inc.		12,919		659
Southwest Gas Corp.		19,611		856
WGL Holdings, Inc.		21,919		871
				5,303
Hand/Machine Tools - 0.1%
Franklin Electric Co., Inc.		9,959		509
Hardinge, Inc.		4,967		45
				554
Healthcare - Products - 3.7%
Abaxis, Inc.*		9,112		337
ABIOMED, Inc.*		14,209		324
Accuray, Inc.*		30,311		207
Affymetrix, Inc.*		30,997		145
Align Technology, Inc.*		30,546		1,022
Alphatec Holdings, Inc.*		25,318		47

EQUITY INDEX FUNDS    70    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Healthcare - Products - 3.7% continued
AngioDynamics, Inc.*		10,639	$	128
ArthroCare Corp.*		11,740		344
AtriCure, Inc.*		6,116		59
Atrion Corp.		687		141
BG Medicine, Inc.*		4,565		32
Biolase Technology, Inc.*		1		—
Cantel Medical Corp.		9,000		245
Cardiovascular Systems, Inc.*		7,425		73
Cepheid, Inc.*		27,895		1,248
Cerus Corp.*		23,840		79
Chindex International, Inc.*		4,476		44
Conceptus, Inc.*		13,531		268
CONMED Corp.		12,005		332
CryoLife, Inc.*		10,707		56
Cyberonics, Inc.*		11,695		526
Cynosure, Inc., Class A*		4,156		88
DexCom, Inc.*		29,125		377
Endologix, Inc.*		23,501		363
EnteroMedics, Inc.*		10,740		37
Exactech, Inc.*		3,637		61
Female Health (The) Co.		8,142		48
Genomic Health, Inc.*		6,923		231
Greatbatch, Inc.*		10,032		228
Haemonetics Corp.*		10,762		798
Hanger Orthopedic Group, Inc.*		14,509		372
Hansen Medical, Inc.*		24,916		57
HeartWare International, Inc.*		6,010		534
ICU Medical, Inc.*		5,300		283
ImmunoCellular Therapeutics Ltd.*		16,874		63
Insulet Corp.*		20,294		434
Integra LifeSciences Holdings Corp.*		8,350		310
Invacare Corp.		13,519		209
IRIS International, Inc.*		6,743		76
Luminex Corp.*		17,705		434
MAKO Surgical Corp.*		15,366		394
Masimo Corp.*		21,211		475
Medtox Scientific, Inc.*		3,165		85
Merge Healthcare, Inc.*		25,949		74
Meridian Bioscience, Inc.		17,523		358
Merit Medical Systems, Inc.*		17,858		247
Natus Medical, Inc.*		12,621		147
Navidea Biopharmaceuticals, Inc.*		41,977		156
NuVasive, Inc.*		18,358		466
NxStage Medical, Inc.*		20,917		351
OraSure Technologies, Inc.*		20,484		230
Orthofix International N.V.*		7,956		328
Palomar Medical Technologies, Inc.*		7,756		66
PhotoMedex, Inc.*		5,574		68
PSS World Medical, Inc.*		21,444		450
Quidel Corp.*		11,831		185
Rochester Medical Corp.*		4,468		48
Rockwell Medical Technologies, Inc.*		8,848		82
Solta Medical, Inc.*		26,524		78
Spectranetics Corp.*		14,665		167
Staar Surgical Co.*		15,431		120
STERIS Corp.		24,554		770
SurModics, Inc.*		6,273		109
Symmetry Medical, Inc.*		15,925		137
Tornier N.V.*		6,420		144
Unilife Corp.*		31,508		106
Utah Medical Products, Inc.		1,377		46
Vascular Solutions, Inc.*		6,640		83
Volcano Corp.*		22,655		649
West Pharmaceutical Services, Inc.		14,396		727
Wright Medical Group, Inc.*		16,696		356
Young Innovations, Inc.		2,468		85
Zeltiq Aesthetics, Inc.*		7,191		40
				18,487
Healthcare - Services - 1.6%
Acadia Healthcare Co., Inc.*		9,793		172
Air Methods Corp.*		5,457		536
Almost Family, Inc.*		3,459		77
Amedisys, Inc.*		12,809		160
Amsurg Corp.*		13,458		404
Assisted Living Concepts, Inc., Class A		8,459		120
Bio-Reference Labs, Inc.*		10,446		275
Capital Senior Living Corp.*		12,161		129
Centene Corp.*		21,886		660
Emeritus Corp.*		13,066		220
Ensign Group (The), Inc.		7,389		209
Five Star Quality Care, Inc.*		18,869		58
Gentiva Health Services, Inc.*		12,824		89
HealthSouth Corp.*		40,651		946
Healthways, Inc.*		14,693		117
IPC The Hospitalist Co., Inc.*		7,043		319
Kindred Healthcare, Inc.*		22,763		224
LHC Group, Inc.*		6,507		110
Magellan Health Services, Inc.*		11,647		528

NORTHERN FUNDS QUARTERLY REPORT    71    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Healthcare - Services - 1.6% continued
Metropolitan Health Networks, Inc.*		18,761	$	180
Molina Healthcare, Inc.*		12,734		299
National Healthcare Corp.		4,487		203
Select Medical Holdings Corp.*		14,882		150
Skilled Healthcare Group, Inc., Class A*		8,614		54
Sun Healthcare Group, Inc.*		10,762		90
Sunrise Senior Living, Inc.*		24,741		180
Triple-S Management Corp., Class B*		8,392		153
U.S. Physical Therapy, Inc.		4,926		125
Universal American Corp.*		15,980		168
Vanguard Health Systems, Inc.*		13,580		121
WellCare Health Plans, Inc.*		18,327		971
				8,047
Holding Companies - Diversified - 0.1%
Harbinger Group, Inc.*		17,505		136
Horizon Pharma, Inc.*		8,948		64
Primoris Services Corp.		12,688		152
Resource America, Inc., Class A		5,103		33
				385
Home Builders - 0.5%
Beazer Homes USA, Inc.*		44,653		145
Cavco Industries, Inc.*		2,924		150
Hovnanian Enterprises, Inc., Class A*		42,358		123
KB Home		32,997		323
M/I Homes, Inc.*		7,742		134
MDC Holdings, Inc.		16,248		531
Meritage Homes Corp.*		12,021		408
Ryland Group (The), Inc.		18,954		485
Standard Pacific Corp.*		46,111		285
Winnebago Industries, Inc.*		11,918		122
				2,706
Home Furnishings - 0.4%
American Woodmark Corp.*		4,101		70
Bassett Furniture Industries, Inc.		4,737		49
DTS, Inc.*		6,974		182
Ethan Allen Interiors, Inc.		10,282		205
Flexsteel Industries, Inc.		1,884		37
Hooker Furniture Corp.		4,567		54
Kimball International, Inc., Class B		13,358		103
La-Z-Boy, Inc.*		22,294		274
Sealy Corp.*		23,198		43
Select Comfort Corp.*		24,108		504
Skullcandy, Inc.*		6,870		97
TiVo, Inc.*		53,018		439
Universal Electronics, Inc.*		6,170		81
VOXX International, Corp.*		7,509		70
				2,208
Household Products/Wares - 0.5%
A.T. Cross Co., Class A*		4,553		45
ACCO Brands Corp.*		48,041		497
American Greetings Corp., Class A		14,908		218
Blyth, Inc.		4,358		151
Central Garden and Pet Co., Class A*		15,881		173
CSS Industries, Inc.		4,186		86
Helen of Troy Ltd.*		13,455		456
Prestige Brands Holdings, Inc.*		21,392		338
Spectrum Brands Holdings, Inc.*		9,771		318
Tumi Holdings, Inc.*		9,169		160
WD-40 Co.		6,834		340
				2,782
Housewares - 0.0%
Libbey, Inc.*		8,771		135
Lifetime Brands, Inc.		4,190		52
				187
Insurance - 2.4%
Alterra Capital Holdings Ltd.		36,492		852
American Equity Investment Life Holding Co.		25,579		282
American Safety Insurance Holdings Ltd.*		4,081		76
AMERISAFE, Inc.*		7,722		200
Amtrust Financial Services, Inc.		10,377		308
Argo Group International Holdings Ltd.		11,000		322
Baldwin & Lyons, Inc., Class B		3,880		90
Citizens, Inc.*		16,119		157
CNO Financial Group, Inc.		90,375		705
Crawford & Co., Class B		10,418		43
Donegal Group, Inc., Class A		3,114		41
Eastern Insurance Holdings, Inc.		2,799		48
eHealth, Inc.*		8,566		138
EMC Insurance Group, Inc.		1,915		39
Employers Holdings, Inc.		13,718		247
Enstar Group Ltd.*		3,592		355
FBL Financial Group, Inc., Class A		4,327		121
First American Financial Corp.		45,153		766
Flagstone Reinsurance Holdings S.A.		22,796		183
Fortegra Financial Corp.*		2,841		23

EQUITY INDEX FUNDS    72    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Insurance - 2.4% continued
Global Indemnity PLC*		4,720	$	96
Greenlight Capital Re Ltd., Class A*		11,960		304
Hallmark Financial Services, Inc.*		6,058		47
Hilltop Holdings, Inc.*		16,598		171
Homeowners Choice, Inc.		3,042		54
Horace Mann Educators Corp.		16,885		295
Independence Holding Co.		2,986		29
Infinity Property & Casualty Corp.		4,998		288
Investors Title Co.		525		30
Kansas City Life Insurance Co.		1,868		66
Maiden Holdings Ltd.		20,885		181
Meadowbrook Insurance Group, Inc.		21,294		187
MGIC Investment Corp.*		80,426		232
Montpelier Re Holdings Ltd.		21,319		454
National Interstate Corp.		2,632		70
National Western Life Insurance Co., Class A		927		132
Navigators Group (The), Inc.*		4,163		208
OneBeacon Insurance Group Ltd., Class A		9,718		127
Phoenix (The) Cos., Inc.*		46,761		86
Platinum Underwriters Holdings Ltd.		14,834		565
Presidential Life Corp.		9,531		94
Primerica, Inc.		20,011		535
Radian Group, Inc.		55,459		182
RLI Corp.		9,028		616
Safety Insurance Group, Inc.		5,439		221
SeaBright Holdings, Inc.		8,894		79
Selective Insurance Group, Inc.		23,359		407
State Auto Financial Corp.		6,055		85
Stewart Information Services Corp.		8,057		124
Symetra Financial Corp.		32,978		416
Tower Group, Inc.		14,805		309
United Fire Group, Inc.		8,539		182
Universal Insurance Holdings, Inc.		6,698		23
				11,891
Internet - 2.9%
1-800-Flowers.com, Inc., Class A*		10,412		36
AboveNet, Inc.*		9,993		839
Active Network (The), Inc.*		16,499		254
Ambient Corp.*		1,253		7
Ancestry.com, Inc.*		12,302		339
Angie’s List, Inc.*		15,121		240
Bankrate, Inc.*		19,637		361
Bazaarvoice, Inc.*		3,926		71
Blucora, Inc.*		17,016		210
Blue Nile, Inc.*		5,870		174
Boingo Wireless, Inc.*		6,712		78
Brightcove, Inc.*		2,320		35
BroadSoft, Inc.*		11,684		338
CafePress, Inc.*		1,938		29
Cogent Communications Group, Inc.*		19,900		383
comScore, Inc.*		15,018		247
Constant Contact, Inc.*		12,932		231
DealerTrack Holdings, Inc.*		18,045		543
Dice Holdings, Inc.*		18,941		178
Digital River, Inc.*		15,970		265
Earthlink, Inc.		44,995		335
Envivio, Inc.*		3,276		21
ePlus, Inc.*		1,672		54
eResearch Technology, Inc.*		21,321		170
ExactTarget, Inc.*		4,146		91
Global Sources Ltd.*		8,025		53
HealthStream, Inc.*		8,283		215
ICG Group, Inc.*		16,204		150
Internap Network Services Corp.*		22,546		147
IntraLinks Holdings, Inc.*		15,769		69
iPass, Inc.*		22,009		52
Keynote Systems, Inc.		6,671		99
KIT Digital, Inc.*		20,394		88
Limelight Networks, Inc.*		24,710		72
Lionbridge Technologies, Inc.*		22,752		72
Liquidity Services, Inc.*		10,019		513
magicJack VocalTec Ltd.*		6,414		122
MeetMe, Inc.*		7,876		19
ModusLink Global Solutions, Inc.*		17,752		53
Move, Inc.*		16,916		154
NIC, Inc.		27,384		348
Nutrisystem, Inc.		12,051		139
OpenTable, Inc.*		9,653		435
Orbitz Worldwide, Inc.*		9,172		34
Overstock.com, Inc.*		5,536		38
PC-Tel, Inc.		7,789		50
Perficient, Inc.*		13,567		152
QuinStreet, Inc.*		13,881		129
ReachLocal, Inc.*		4,437		49
RealNetworks, Inc.		9,504		82
Responsys, Inc.*		15,180		184
Saba Software, Inc.*		12,587		117

NORTHERN FUNDS QUARTERLY REPORT    73    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Internet - 2.9% continued
Safeguard Scientifics, Inc.*		8,824	$	137
Sapient Corp.		52,378		527
Shutterfly, Inc.*		15,204		467
Sourcefire, Inc.*		12,565		646
Spark Networks, Inc.*		4,818		25
SPS Commerce, Inc.*		4,494		137
Stamps.com, Inc.*		6,018		148
support.com, Inc.*		21,419		68
Synacor, Inc.*		2,865		39
TechTarget, Inc.*		6,562		33
Towerstream Corp.*		20,177		84
Travelzoo, Inc.*		3,033		69
United Online, Inc.		38,501		162
Unwired Planet, Inc.*		36,978		85
US Auto Parts Network, Inc.*		6,919		29
ValueClick, Inc.*		34,290		562
VASCO Data Security International, Inc.*		12,023		98
VirnetX Holding Corp.*		17,842		629
Vitacost.com, Inc.*		9,356		55
Vocus, Inc.*		8,764		163
Web.com Group, Inc.*		14,900		273
WebMD Health Corp.*		21,541		442
Websense, Inc.*		15,804		296
XO Group, Inc.*		11,499		102
Yelp, Inc.*		3,586		82
Zix Corp.*		25,742		67
				14,589
Investment Companies - 1.1%
American Realty Capital Trust, Inc.		67,391		736
Apollo Investment Corp.		86,249		662
Arlington Asset Investment Corp., Class A		3,522		76
BlackRock Kelso Capital Corp.		31,228		305
Capital Southwest Corp.		1,261		130
Fidus Investment Corp.		3,969		60
Fifth Street Finance Corp.		34,981		349
Firsthand Technology Value Fund, Inc.*		3,625		64
Gladstone Capital Corp.		9,414		74
Gladstone Investment Corp.		9,720		72
Golub Capital BDC, Inc.		6,021		91
GSV Capital Corp.*		8,212		76
Harris & Harris Group, Inc.*		13,969		53
Hercules Technology Growth Capital, Inc.		21,097		239
Home Loan Servicing Solutions Ltd.		6,015		81
Kohlberg Capital Corp.		8,775		64
Main Street Capital Corp.		10,176		246
MCG Capital Corp.		32,860		151
Medallion Financial Corp.		7,613		81
MVC Capital, Inc.		10,419		135
New Mountain Finance Corp.		3,591		51
NGP Capital Resources Co.		9,149		65
PennantPark Investment Corp.		23,894		247
Prospect Capital Corp.		51,819		590
Solar Capital Ltd.		15,541		346
TCP Capital Corp.		2,430		35
THL Credit, Inc.		5,017		68
TICC Capital Corp.		15,970		155
Triangle Capital Corp.		11,527		263
				5,565
Iron/Steel - 0.2%
AK Steel Holding Corp.		47,033		276
Metals USA Holdings Corp.*		5,135		82
Schnitzer Steel Industries, Inc., Class A		10,740		301
Shiloh Industries, Inc.		2,485		29
Universal Stainless & Alloy*		2,904		119
				807
Leisure Time - 0.6%
Arctic Cat, Inc.*		5,377		197
Black Diamond, Inc.*		8,909		84
Brunswick Corp.		37,976		844
Callaway Golf Co.		27,649		163
Interval Leisure Group, Inc.		16,480		313
Johnson Outdoors, Inc., Class A*		2,408		50
Life Time Fitness, Inc.*		18,227		848
Marine Products Corp.		4,396		27
Town Sports International Holdings, Inc.*		9,842		131
WMS Industries, Inc.*		23,429		467
				3,124
Lodging - 0.3%
Ameristar Casinos, Inc.		14,034		249
Boyd Gaming Corp.*		22,975		165
Caesars Entertainment Corp.*		15,743		179
Gaylord Entertainment Co.*		13,204		509
Marcus (The) Corp.		8,325		115
Monarch Casino & Resort, Inc.*		3,921		36
Morgans Hotel Group Co.*		9,682		45
MTR Gaming Group, Inc.*		9,598		46
Orient-Express Hotels Ltd., Class A*		41,191		345

EQUITY INDEX FUNDS    74    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Lodging - 0.3% continued
Red Lion Hotels Corp.*		6,315	$	55
				1,744
Machinery - Construction & Mining - 0.1%
Astec Industries, Inc.*		8,537		262
Machinery - Diversified - 1.4%
Alamo Group, Inc.		2,938		92
Albany International Corp., Class A		11,748		220
Altra Holdings, Inc.		11,751		186
Applied Industrial Technologies, Inc.		17,964		662
Briggs & Stratton Corp.		20,506		359
Cascade Corp.		3,851		181
Chart Industries, Inc.*		12,716		874
Cognex Corp.		18,211		576
Columbus McKinnon Corp.*		8,239		124
DXP Enterprises, Inc.*		3,742		155
Flow International Corp.*		20,268		64
Global Power Equipment Group, Inc.		7,303		160
Gorman-Rupp (The) Co.		6,573		196
Hurco Cos., Inc.*		2,852		59
Intermec, Inc.*		24,716		153
Intevac, Inc.*		9,973		75
iRobot Corp.*		11,663		258
Kadant, Inc.*		4,963		116
Lindsay Corp.		5,406		351
Middleby Corp.*		7,964		793
NACCO Industries, Inc., Class A		2,323		270
Robbins & Myers, Inc.		16,377		685
Sauer-Danfoss, Inc.		5,039		176
Tennant Co.		8,087		323
Twin Disc, Inc.		3,417		63
				7,171
Media - 0.7%
Beasley Broadcasting Group, Inc., Class A*		1,882		11
Belo Corp., Class A		40,096		258
Central European Media Enterprises Ltd., Class A*		15,028		76
Courier Corp.		4,688		62
Crown Media Holdings, Inc., Class A*		14,826		26
Cumulus Media, Inc., Class A*		23,950		72
Daily Journal Corp.*		416		36
Demand Media, Inc.*		12,733		143
Dial Global, Inc.*		1,499		5
Digital Domain Media Group, Inc.*		4,548		28
Digital Generation, Inc.*		11,529		143
Dolan (The) Co.*		12,573		85
E.W. Scripps (The) Co., Class A*		12,305		118
Entercom Communications Corp., Class A*		10,378		62
Entravision Communications Corp., Class A		18,339		22
Fisher Communications, Inc.*		3,601		108
Journal Communications, Inc., Class A*		18,222		94
Knology, Inc.*		13,252		261
LIN TV Corp., Class A*		14,366		43
Martha Stewart Living Omnimedia, Inc., Class A		11,920		41
McClatchy (The) Co., Class A*		24,987		55
Meredith Corp.		15,412		492
New York Times (The) Co., Class A*		57,957		452
Nexstar Broadcasting Group, Inc., Class A*		4,512		30
Outdoor Channel Holdings, Inc.		6,301		46
Saga Communications, Inc., Class A*		1,561		58
Salem Communications Corp., Class A		4,304		24
Scholastic Corp.		11,183		315
Sinclair Broadcast Group, Inc., Class A		21,628		196
Value Line, Inc.		300		4
World Wrestling Entertainment, Inc., Class A		11,179		87
				3,453
Metal Fabrication/Hardware - 0.8%
A.M. Castle & Co.*		7,062		75
Ampco-Pittsburgh Corp.		3,441		63
CIRCOR International, Inc.		7,402		252
Dynamic Materials Corp.		5,847		101
Eastern (The) Co.		2,637		43
Furmanite Corp.*		16,563		80
Haynes International, Inc.		5,270		268
Kaydon Corp.		13,648		292
L.B. Foster Co., Class A		3,872		111
Mueller Industries, Inc.		11,544		492
Mueller Water Products, Inc., Class A		66,623		231
NN, Inc.*		7,395		75
Northwest Pipe Co.*		3,873		94
Olympic Steel, Inc.		3,887		64
Omega Flex, Inc.*		1,470		17
RBC Bearings, Inc.*		9,426		446
Rexnord Corp.*		12,253		246
RTI International Metals, Inc.*		12,896		292

NORTHERN FUNDS QUARTERLY REPORT    75    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Metal Fabrication/Hardware - 0.8% continued
Sun Hydraulics Corp.		8,790	$	213
Worthington Industries, Inc.		22,205		455
				3,910
Mining - 1.0%
AMCOL International Corp.		10,719		303
Century Aluminum Co.*		21,899		161
Coeur d’Alene Mines Corp.*		38,220		671
General Moly, Inc.*		29,596		93
Globe Specialty Metals, Inc.		25,982		349
Gold Reserve, Inc.*		22,234		78
Gold Resource Corp.		12,684		330
Golden Minerals Co.*		12,760		58
Golden Star Resources Ltd.*		113,482		132
Hecla Mining Co.		121,294		576
Horsehead Holding Corp.*		18,359		183
Kaiser Aluminum Corp.		8,201		425
Materion Corp.		8,680		200
McEwen Mining, Inc.*		83,837		252
Midway Gold Corp.*		48,454		67
Noranda Aluminum Holding Corp.		14,159		113
Paramount Gold and Silver Corp.*		55,468		133
Revett Minerals, Inc.*		11,337		37
Stillwater Mining Co.*		49,217		420
United States Lime & Minerals, Inc.*		734		34
Uranerz Energy Corp.*		27,518		40
Uranium Energy Corp.*		36,053		83
US Antimony Corp.*		22,824		92
US Silica Holdings, Inc.*		4,741		53
Vista Gold Corp.*		24,695		72
				4,955
Miscellaneous Manufacturing - 2.0%
A.O. Smith Corp.		16,531		808
Actuant Corp., Class A		29,044		789
American Railcar Industries, Inc.*		3,941		107
AZZ, Inc.		5,375		329
Barnes Group, Inc.		23,069		560
Blount International, Inc.*		20,793		305
Ceradyne, Inc.		10,156		261
Chase Corp.		2,268		30
CLARCOR, Inc.		21,363		1,029
EnPro Industries, Inc.*		8,752		327
Fabrinet*		9,376		118
Federal Signal Corp.*		25,621		150
FreightCar America, Inc.		5,286		121
GP Strategies Corp.*		6,325		117
Handy & Harman Ltd.*		2,001		27
Hexcel Corp.*		42,351		1,092
Hillenbrand, Inc.		23,579		433
John Bean Technologies Corp.		11,973		163
Koppers Holdings, Inc.		8,833		300
LSB Industries, Inc.*		7,981		247
Lydall, Inc.*		7,641		103
Movado Group, Inc.		7,488		187
Myers Industries, Inc.		14,221		244
NL Industries, Inc.		2,645		33
Park-Ohio Holdings Corp.*		3,579		68
PMFG, Inc.*		9,198		72
Proto Labs, Inc.*		2,007		58
Raven Industries, Inc.		7,705		536
Smith & Wesson Holding Corp.*		27,576		229
Standex International Corp.		5,365		228
STR Holdings, Inc.*		12,282		56
Sturm Ruger & Co., Inc.		8,140		327
Tredegar Corp.		10,378		151
Trimas Corp.*		13,693		275
				9,880
Multi-National - 0.0%
Banco Latinoamericano de Comercio Exterior S.A., Class E		12,022		258
Office Furnishings - 0.4%
CompX International, Inc.		903		11
Herman Miller, Inc.		24,811		459
HNI Corp.		19,358		498
Interface, Inc.		24,922		340
Knoll, Inc.		20,394		274
Steelcase, Inc., Class A		32,839		297
				1,879
Oil & Gas - 3.1%
Abraxas Petroleum Corp.*		36,092		115
Adams Resources & Energy, Inc.		894		37
Alon USA Energy, Inc.		3,966		34
Apco Oil and Gas International, Inc.		3,682		66
Approach Resources, Inc.*		12,309		314
Arabian American Development Co.*		8,487		82
ATP Oil & Gas Corp.*		17,827		60
Berry Petroleum Co., Class A		22,275		883

EQUITY INDEX FUNDS    76    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Oil & Gas - 3.1% continued
Bill Barrett Corp.*		20,476	$	439
Bonanza Creek Energy, Inc.*		3,986		66
BPZ Resources, Inc.*		42,367		107
Callon Petroleum Co.*		17,812		76
Carrizo Oil & Gas, Inc.*		16,842		396
Clayton Williams Energy, Inc.*		2,462		119
Comstock Resources, Inc.*		20,467		336
Contango Oil & Gas Co.*		5,426		321
CREDO Petroleum Corp.*		2,920		42
Crimson Exploration, Inc.*		9,933		46
CVR Energy, Inc.*		7,168		191
Delek U.S. Holdings, Inc.		7,228		127
Endeavour International Corp.*		15,561		131
Energy Partners Ltd.*		11,907		201
Energy XXI Bermuda Ltd.		33,556		1,050
Evolution Petroleum Corp.*		7,536		63
Forest Oil Corp.*		50,122		367
FX Energy, Inc.*		21,605		129
Gastar Exploration Ltd.*		24,626		48
GeoResources, Inc.*		9,002		330
Goodrich Petroleum Corp.*		10,784		149
Gulfport Energy Corp.*		23,684		489
Halcon Resources Corp.*		29,967		283
Harvest Natural Resources, Inc.*		16,342		140
Hercules Offshore, Inc.*		67,414		239
Isramco, Inc.*		444		49
Kodiak Oil & Gas Corp.*		112,082		920
Magnum Hunter Resources Corp.*		62,671		262
Matador Resources Co.*		6,390		69
McMoRan Exploration Co.*		43,150		547
Midstates Petroleum Co, Inc.*		10,227		99
Miller Energy Resources, Inc.*		12,186		61
Northern Oil and Gas, Inc.*		27,014		431
Oasis Petroleum, Inc.*		33,977		822
Panhandle Oil and Gas, Inc., Class A		3,127		94
Parker Drilling Co.*		50,794		229
PDC Energy, Inc.*		12,737		312
Penn Virginia Corp.		19,488		143
Petroquest Energy, Inc.*		23,689		118
Quicksilver Resources, Inc.*		49,978		271
Resolute Energy Corp.*		20,533		196
Rex Energy Corp.*		18,355		206
Rosetta Resources, Inc.*		22,504		825
Sanchez Energy Corp.*		4,930		103
Stone Energy Corp.*		21,047		533
Swift Energy Co.*		18,239		339
Synergy Resources Corp.*		16,639		51
Triangle Petroleum Corp.*		19,072		106
Vaalco Energy, Inc.*		24,599		212
Vantage Drilling Co.*		81,459		122
Venoco, Inc.*		12,175		122
Voyager Oil & Gas, Inc.*		20,921		37
W&T Offshore, Inc.		15,040		230
Warren Resources, Inc.*		29,417		71
Western Refining, Inc.		24,367		543
ZaZa Energy Corp.*		10,557		48
				15,647
Oil & Gas Services - 1.6%
Basic Energy Services, Inc.*		13,125		135
Bolt Technology Corp.		3,626		54
C&J Energy Services, Inc.*		18,951		351
Cal Dive International, Inc.*		42,417		123
Dawson Geophysical Co.*		3,226		77
Dril-Quip, Inc.*		17,088		1,121
Edgen Group, Inc.*		6,352		48
Exterran Holdings, Inc.*		27,579		352
Flotek Industries, Inc.*		21,055		197
Forbes Energy Services Ltd.*		6,267		29
Forum Energy Technologies, Inc.*		9,435		186
Global Geophysical Services, Inc.*		7,624		47
Gulf Island Fabrication, Inc.		6,111		172
Helix Energy Solutions Group, Inc.*		44,937		737
Hornbeck Offshore Services, Inc.*		15,013		582
ION Geophysical Corp.*		56,108		370
Key Energy Services, Inc.*		64,231		488
Lufkin Industries, Inc.		14,291		776
Matrix Service Co.*		11,223		127
Mitcham Industries, Inc.*		5,405		92
Natural Gas Services Group, Inc.*		5,213		77
Newpark Resources, Inc.*		38,226		226
OYO Geospace Corp.*		2,710		244
Pioneer Drilling Co.*		25,705		205
T.G.C. Industries, Inc.*		6,187		60
Targa Resources Corp.		12,326		526
Tesco Corp.*		13,142		158
TETRA Technologies, Inc.*		33,362		238
Thermon Group Holdings, Inc.*		6,245		129
Union Drilling, Inc.*		5,121		23

NORTHERN FUNDS QUARTERLY REPORT    77    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Oil & Gas Services - 1.6% continued
Willbros Group, Inc.*		16,953	$	110
				8,060
Packaging & Containers - 0.1%
AEP Industries, Inc.*		1,893		82
Graphic Packaging Holding Co.*		71,198		392
UFP Technologies, Inc.*		2,318		39
				513
Pharmaceuticals - 3.6%
Achillion Pharmaceuticals, Inc.*		22,616		140
Acura Pharmaceuticals, Inc.*		4,842		15
Akorn, Inc.*		24,161		381
Alkermes PLC*		52,047		883
Allos Therapeutics, Inc.*		34,655		62
Amicus Therapeutics, Inc.*		12,796		70
Ampio Pharmaceuticals, Inc.*		8,385		43
Anacor Pharmaceuticals, Inc.*		6,208		40
Anika Therapeutics, Inc.*		5,000		68
Antares Pharma, Inc.*		39,834		145
Array Biopharma, Inc.*		37,854		131
Auxilium Pharmaceuticals, Inc.*		20,565		553
AVANIR Pharmaceuticals, Inc., Class A*		57,663		226
BioDelivery Sciences International, Inc.*		9,027		41
BioScrip, Inc.*		18,678		139
Biospecifics Technologies Corp.*		2,081		39
Cadence Pharmaceuticals, Inc.*		25,566		91
Cempra, Inc.*		2,000		19
ChemoCentryx, Inc.*		2,014		30
Clovis Oncology, Inc.*		5,806		126
Corcept Therapeutics, Inc.*		17,621		79
Cornerstone Therapeutics, Inc.*		4,005		25
Cumberland Pharmaceuticals, Inc.*		5,033		33
Cytori Therapeutics, Inc.*		22,600		61
Depomed, Inc.*		24,622		140
Derma Sciences, Inc.*		3,900		37
Dusa Pharmaceuticals, Inc.*		8,841		46
Dyax Corp.*		41,786		89
Endocyte, Inc.*		12,577		103
Furiex Pharmaceuticals, Inc.*		3,122		65
Hi-Tech Pharmacal Co., Inc.*		4,549		147
Idenix Pharmaceuticals, Inc.*		31,776		327
Impax Laboratories, Inc.*		28,491		578
Infinity Pharmaceuticals, Inc.*		8,265		112
Ironwood Pharmaceuticals, Inc.*		31,936		440
Isis Pharmaceuticals, Inc.*		42,555		511
Jazz Pharmaceuticals Plc*		17,659		795
Keryx Biopharmaceuticals, Inc.*		29,662		53
Lannett Co., Inc.*		5,839		25
MannKind Corp.*		47,872		110
MAP Pharmaceuticals, Inc.*		10,573		158
Medicis Pharmaceutical Corp., Class A		24,442		835
Nature’s Sunshine Products, Inc.		4,847		73
Nektar Therapeutics*		48,716		393
Neogen Corp.*		10,001		462
Neurocrine Biosciences, Inc.*		28,133		223
Nutraceutical International Corp.*		3,830		59
Obagi Medical Products, Inc.*		7,785		119
Omega Protein Corp.*		8,356		62
Opko Health, Inc.*		46,226		213
Optimer Pharmaceuticals, Inc.*		20,000		310
Orexigen Therapeutics, Inc.*		25,625		142
Osiris Therapeutics, Inc.*		7,476		82
Pacira Pharmaceuticals, Inc.*		7,832		126
Pain Therapeutics, Inc.*		15,310		72
Par Pharmaceutical Cos., Inc.*		15,632		565
Pernix Therapeutics Holdings*		3,860		28
Pharmacyclics, Inc.*		23,132		1,263
PharMerica Corp.*		12,119		132
Pozen, Inc.*		11,870		74
Progenics Pharmaceuticals, Inc.*		13,198		129
Questcor Pharmaceuticals, Inc.*		22,858		1,217
Raptor Pharmaceutical Corp.*		20,981		117
Repros Therapeutics, Inc.*		6,295		57
Rigel Pharmaceuticals, Inc.*		30,348		282
Sagent Pharmaceuticals, Inc.*		3,984		72
Santarus, Inc.*		23,937		170
Schiff Nutrition International, Inc.*		5,681		102
Sciclone Pharmaceuticals, Inc.*		24,114		169
SIGA Technologies, Inc.*		16,034		46
Sucampo Pharmaceuticals, Inc., Class A*		4,606		32
Supernus Pharmaceuticals, Inc.*		1,961		18
Synageva BioPharma Corp.*		3,897		158
Synergy Pharmaceuticals, Inc.*		17,443		83
Synta Pharmaceuticals Corp.*		15,753		86
Synutra International, Inc.*		6,799		37
Targacept, Inc.*		12,498		54
Theravance, Inc.*		25,794		573
Threshold Pharmaceuticals, Inc.*		19,112		142

EQUITY INDEX FUNDS    78    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Pharmaceuticals - 3.6% continued
USANA Health Sciences, Inc.*		2,499	$	103
Vanda Pharmaceuticals, Inc.*		12,535		55
Ventrus Biosciences, Inc.*		5,303		23
Viropharma, Inc.*		29,647		703
Vivus, Inc.*		42,397		1,210
XenoPort, Inc.*		15,182		92
Zogenix, Inc.*		15,467		38
				18,177
Pipelines - 0.2%
Crosstex Energy, Inc.		17,541		246
SemGroup Corp., Class A*		17,773		567
				813
Real Estate - 0.3%
A.V. Homes, Inc.*		4,145		60
Consolidated-Tomoka Land Co.		1,920		55
Forestar Group, Inc.*		15,040		193
HFF, Inc., Class A*		13,859		193
Kennedy-Wilson Holdings, Inc.		14,903		209
Sovran Self Storage, Inc.		12,331		618
Thomas Properties Group, Inc.		13,665		74
				1,402
Real Estate Investment Trusts - 7.0%
Acadia Realty Trust		18,638		432
AG Mortgage Investment Trust, Inc.		6,703		144
Agree Realty Corp.		4,720		104
Alexander’s, Inc.		892		385
American Assets Trust, Inc.		14,057		341
American Capital Mortgage Investment Corp.		15,415		368
Anworth Mortgage Asset Corp.		58,381		412
Apollo Commercial Real Estate Finance, Inc.		7,419		119
Apollo Residential Mortgage, Inc.		10,272		198
Ares Commercial Real Estate Corp.		3,266		57
ARMOUR Residential REIT, Inc.		75,573		537
Ashford Hospitality Trust, Inc.		22,946		193
Associated Estates Realty Corp.		18,079		270
Campus Crest Communities, Inc.		12,899		134
CapLease, Inc.		27,230		113
Capstead Mortgage Corp.		39,826		554
Cedar Shopping Centers, Inc.		25,503		129
Chatham Lodging Trust		5,636		81
Chesapeake Lodging Trust		13,670		235
Colonial Properties Trust		37,399		828
Colony Financial, Inc.		13,929		241
Coresite Realty Corp.		8,803		227
Cousins Properties, Inc.		39,195		304
CreXus Investment Corp.		28,490		290
CubeSmart		52,430		612
CYS Investments, Inc.		49,414		680
DCT Industrial Trust, Inc.		105,033		662
DiamondRock Hospitality Co.		71,449		729
DuPont Fabros Technology, Inc.		26,079		745
Dynex Capital, Inc.		23,093		240
EastGroup Properties, Inc.		12,101		645
Education Realty Trust, Inc.		40,311		447
Entertainment Properties Trust		19,921		819
Equity One, Inc.		23,337		495
Excel Trust, Inc.		14,297		171
FelCor Lodging Trust, Inc.*		52,753		248
First Industrial Realty Trust, Inc.*		37,699		476
First Potomac Realty Trust		21,679		255
Franklin Street Properties Corp.		30,858		326
Getty Realty Corp.		10,969		210
Gladstone Commercial Corp.		4,529		75
Glimcher Realty Trust		59,281		606
Government Properties Income Trust		15,785		357
Gramercy Capital Corp.*		19,395		49
Gyrodyne Co. of America, Inc.*		502		57
Healthcare Realty Trust, Inc.		33,143		790
Hersha Hospitality Trust		73,133		386
Highwoods Properties, Inc.		31,459		1,059
Hudson Pacific Properties, Inc.		15,231		265
Inland Real Estate Corp.		32,123		269
Invesco Mortgage Capital, Inc.		49,096		900
Investors Real Estate Trust		36,395		288
iStar Financial, Inc.*		35,942		232
Kite Realty Group Trust		24,399		122
LaSalle Hotel Properties		36,424		1,061
Lexington Realty Trust		50,499		428
LTC Properties, Inc.		12,908		468
Medical Properties Trust, Inc.		57,670		555
Mission West Properties, Inc.		7,657		66
Monmouth Real Estate Investment Corp., Class A		17,376		204
National Health Investors, Inc.		10,397		529
New York Mortgage Trust, Inc.		7,339		52
NorthStar Realty Finance Corp.		56,738		296
Omega Healthcare Investors, Inc.		44,990		1,012

NORTHERN FUNDS QUARTERLY REPORT    79    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Real Estate Investment Trusts - 7.0% continued
One Liberty Properties, Inc.		4,618	$	87
Parkway Properties, Inc.		6,743		77
Pebblebrook Hotel Trust		22,327		520
Pennsylvania Real Estate Investment Trust		23,792		356
PennyMac Mortgage Investment Trust		17,496		345
Potlatch Corp.		17,150		548
PS Business Parks, Inc.		7,831		530
RAIT Financial Trust		22,211		103
Ramco-Gershenson Properties Trust		19,530		246
Redwood Trust, Inc.		33,638		420
Resource Capital Corp.		36,014		192
Retail Opportunity Investments Corp.		21,382		258
RLJ Lodging Trust		45,386		823
Rouse Properties, Inc.*		9,416		128
Sabra Health Care REIT, Inc.		15,734		269
Saul Centers, Inc.		3,330		143
Select Income REIT*		3,913		93
STAG Industrial, Inc.		10,146		148
Starwood Property Trust, Inc.		49,504		1,055
Strategic Hotels & Resorts, Inc.*		77,290		499
Summit Hotel Properties, Inc.		12,980		109
Sun Communities, Inc.		11,244		497
Sunstone Hotel Investors, Inc.*		50,649		557
Terreno Realty Corp.		5,431		82
Two Harbors Investment Corp.		91,151		944
UMH Properties, Inc.		5,597		60
Universal Health Realty Income Trust		5,051		210
Urstadt Biddle Properties, Inc., Class A		9,805		194
Washington Real Estate Investment Trust		28,241		803
Western Asset Mortgage Capital Corp.*		3,394		66
Whitestone REIT		4,533		63
Winthrop Realty Trust		12,532		152
				35,159
Retail - 6.2%
Aeropostale, Inc.*		34,544		616
AFC Enterprises, Inc.*		10,567		245
America’s Car-Mart, Inc.*		3,529		137
ANN, Inc.*		20,738		529
Asbury Automotive Group, Inc.*		12,030		285
Barnes & Noble, Inc.*		12,062		199
Bebe Stores, Inc.		15,860		93
Benihana, Inc.		4,486		72
Big 5 Sporting Goods Corp.		7,046		53
Biglari Holdings, Inc.*		524		202
BJ’s Restaurants, Inc.*		10,433		396
Bob Evans Farms, Inc.		12,390		498
Body Central Corp.*		6,845		62
Bon-Ton Stores (The), Inc.		6,139		48
Bravo Brio Restaurant Group, Inc.*		8,300		148
Brown Shoe Co., Inc.		18,212		235
Buckle (The), Inc.		11,797		467
Buffalo Wild Wings, Inc.*		7,894		684
Cabela’s, Inc.*		19,832		750
Caribou Coffee Co., Inc.*		8,963		116
Carrols Restaurant Group, Inc.*		6,791		40
Casey’s General Stores, Inc.		16,193		955
Cash America International, Inc.		12,491		550
Casual Male Retail Group, Inc.*		18,377		67
Cato (The) Corp., Class A		11,639		355
CEC Entertainment, Inc.		7,775		283
Cheesecake Factory (The), Inc.*		22,961		734
Children’s Place Retail Stores (The), Inc.*		10,313		514
Citi Trends, Inc.*		6,547		101
Coinstar, Inc.*		13,313		914
Collective Brands, Inc.*		25,882		554
Conn’s, Inc.*		6,674		99
Cost Plus, Inc.*		7,966		175
Cracker Barrel Old Country Store, Inc.		8,169		513
Denny’s Corp.*		39,856		177
Destination Maternity Corp.		5,654		122
DineEquity, Inc.*		6,502		290
Domino’s Pizza, Inc.		24,622		761
Einstein Noah Restaurant Group, Inc.		2,412		42
Express, Inc.*		38,021		691
Ezcorp, Inc., Class A*		20,397		479
Fiesta Restaurant Group, Inc.*		6,863		91
Fifth & Pacific Cos., Inc.*		46,224		496
Finish Line (The), Inc., Class A		21,761		455
First Cash Financial Services, Inc.*		12,209		490
Francesca’s Holdings Corp.*		14,791		400
Fred’s, Inc., Class A		15,743		241
Frisch’s Restaurants, Inc.		1,321		37
Genesco, Inc.*		10,406		626
Gordmans Stores, Inc.*		3,591		59
Group 1 Automotive, Inc.		9,744		444
Haverty Furniture Cos., Inc.		7,803		87
hhgregg, Inc.*		6,584		74
Hibbett Sports, Inc.*		11,273		651

EQUITY INDEX FUNDS    80    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Retail - 6.2% continued
HOT Topic, Inc.		17,689	$	171
HSN, Inc.		16,080		649
Ignite Restaurant Group, Inc.*		2,813		51
Jack in the Box, Inc.*		18,791		524
Jamba, Inc.*		30,266		59
Jos. A. Bank Clothiers, Inc.*		11,833		502
Kenneth Cole Productions, Inc., Class A*		3,410		51
Kirkland’s, Inc.*		6,027		68
Krispy Kreme Doughnuts, Inc.*		25,282		162
Lithia Motors, Inc., Class A		9,411		217
Luby’s, Inc.*		8,490		57
Lumber Liquidators Holdings, Inc.*		11,700		395
MarineMax, Inc.*		8,770		83
Mattress Firm Holding Corp.*		4,678		142
Men’s Wearhouse (The), Inc.		21,645		609
Nathan’s Famous, Inc.*		1,121		33
New York & Co., Inc.*		11,730		41
Office Depot, Inc.*		120,710		261
OfficeMax, Inc.*		35,946		182
Orchard Supply Hardware Stores Corp., Class A*		806		13
P.F. Chang’s China Bistro, Inc.		9,050		466
Pantry (The), Inc.*		9,984		147
Papa John’s International, Inc.*		7,728		368
PC Connection, Inc.		4,157		44
Penske Automotive Group, Inc.		17,856		379
Pep Boys - Manny, Moe & Jack (The)		22,934		227
Perfumania Holdings, Inc.*		2,148		18
PetMed Express, Inc.		8,415		102
Pier 1 Imports, Inc.		41,281		678
Pricesmart, Inc.		7,731		522
RadioShack Corp.		42,286		162
Red Robin Gourmet Burgers, Inc.*		6,246		191
Regis Corp.		24,526		441
Rite Aid Corp.*		280,556		393
Roundy’s, Inc.		8,814		90
Ruby Tuesday, Inc.*		26,914		183
Rue21, Inc.*		6,576		166
Rush Enterprises, Inc., Class A*		14,161		232
Ruth’s Hospitality Group, Inc.*		14,436		95
Saks, Inc.*		46,530		496
Shoe Carnival, Inc.		6,093		131
Sonic Automotive, Inc., Class A		17,114		234
Sonic Corp.*		25,894		259
Stage Stores, Inc.		13,059		239
Stein Mart, Inc.*		11,476		91
Steinway Musical Instruments, Inc.*		2,950		72
Susser Holdings Corp.*		4,745		176
Systemax, Inc.*		4,705		56
Talbots, Inc.*		28,041		71
Teavana Holdings, Inc.*		3,978		54
Texas Roadhouse, Inc.		26,527		489
Tilly’s, Inc.*		3,898		63
Tuesday Morning Corp.*		17,090		73
Vera Bradley, Inc.*		8,576		181
Vitamin Shoppe, Inc.*		12,516		688
West Marine, Inc.*		6,556		77
Wet Seal (The), Inc., Class A*		38,622		122
Winmark Corp.		960		56
Zumiez, Inc.*		9,305		368
				31,572
Savings & Loans - 1.1%
Astoria Financial Corp.		37,039		363
Bank Mutual Corp.		20,115		89
BankFinancial Corp.		8,916		67
Beneficial Mutual Bancorp, Inc.*		13,775		119
Berkshire Hills Bancorp, Inc.		9,410		207
BofI Holding, Inc.*		3,992		79
Brookline Bancorp, Inc.		29,697		263
BSB Bancorp, Inc.*		3,455		44
Cape Bancorp, Inc.*		5,106		42
Charter Financial Corp.		2,399		23
Clifton Savings Bancorp, Inc.		3,564		37
Dime Community Bancshares, Inc.		13,652		181
ESB Financial Corp.		4,713		62
ESSA Bancorp, Inc.		3,765		41
EverBank Financial Corp.*		9,489		103
First Defiance Financial Corp.		4,254		73
First Federal Bancshares of Arkansas, Inc.*		1,471		12
First Financial Holdings, Inc.		7,019		75
First Financial Northwest, Inc.*		6,759		55
First Pactrust Bancorp, Inc.		4,244		50
Flushing Financial Corp.		13,352		182
Fox Chase Bancorp, Inc.		5,737		83
Heritage Financial Group, Inc.		3,635		47
Hingham Institution for Savings		537		32
Home Bancorp, Inc.*		2,865		49
Home Federal Bancorp, Inc.		6,882		72
HomeStreet, Inc.*		1,760		56

NORTHERN FUNDS QUARTERLY REPORT    81    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Savings & Loans - 1.1% continued
Investors Bancorp, Inc.*		18,810	$	284
Kaiser Federal Financial Group, Inc.		3,787		56
Kearny Financial Corp.		6,385		62
Meridian Interstate Bancorp, Inc.*		3,540		49
NASB Financial, Inc.*		1,778		35
Northfield Bancorp, Inc.		6,236		89
Northwest Bancshares, Inc.		41,481		486
OceanFirst Financial Corp.		6,317		91
Oritani Financial Corp.		19,266		277
Peoples Federal Bancshares, Inc.*		2,530		42
Provident Financial Holdings, Inc.		4,071		47
Provident Financial Services, Inc.		25,625		393
Provident New York Bancorp		14,053		107
Rockville Financial, Inc.		12,488		145
Roma Financial Corp.		3,362		29
SI Financial Group, Inc.		4,441		51
Territorial Bancorp, Inc.		4,878		111
United Financial Bancorp, Inc.		6,472		93
ViewPoint Financial Group		14,159		221
Waterstone Financial, Inc.*		3,096		12
Westfield Financial, Inc.		11,876		87
WSFS Financial Corp.		3,233		131
				5,404
Semiconductors - 3.3%
Aeroflex Holding Corp.*		8,201		50
Alpha & Omega Semiconductor Ltd.*		7,581		69
Amkor Technology, Inc.*		33,890		165
Anadigics, Inc.*		28,976		52
Applied Micro Circuits Corp.*		26,798		153
ATMI, Inc.*		13,647		281
AuthenTec, Inc.*		18,897		82
Axcelis Technologies, Inc.*		43,851		53
AXT, Inc.*		14,705		58
Brooks Automation, Inc.		28,466		269
Cabot Microelectronics Corp.		10,026		293
Cavium, Inc.*		21,136		592
Ceva, Inc.*		9,854		174
Cirrus Logic, Inc.*		27,416		819
Cohu, Inc.		10,452		106
Diodes, Inc.*		15,091		283
DSP Group, Inc.*		8,480		54
Emulex Corp.*		37,149		267
Entegris, Inc.*		58,343		498
Entropic Communications, Inc.*		37,400		211
Exar Corp.*		15,843		129
First Solar, Inc.*		25,614		386
Formfactor, Inc.*		21,279		138
FSI International, Inc.*		16,680		60
GSI Technology, Inc.*		9,326		44
GT Advanced Technologies, Inc.*		50,308		266
Hittite Microwave Corp.*		13,396		685
Inphi Corp.*		9,934		94
Integrated Device Technology, Inc.*		61,004		343
Integrated Silicon Solution, Inc.*		11,389		115
Intermolecular, Inc.*		5,882		46
International Rectifier Corp.*		29,418		588
Intersil Corp., Class A		54,182		577
IXYS Corp.*		10,432		116
Kopin Corp.*		29,620		102
Lattice Semiconductor Corp.*		49,187		185
LTX-Credence Corp.*		21,306		143
Mattson Technology, Inc.*		24,840		43
MaxLinear, Inc., Class A*		9,375		46
MEMC Electronic Materials, Inc.*		98,146		213
Micrel, Inc.		21,085		201
Microsemi Corp.*		37,788		699
Mindspeed Technologies, Inc.*		14,584		36
MIPS Technologies, Inc.*		20,324		136
MKS Instruments, Inc.		22,317		646
Monolithic Power Systems, Inc.*		12,964		258
MoSys, Inc.*		14,890		48
Nanometrics, Inc.*		9,978		153
Omnivision Technologies, Inc.*		22,270		298
Pericom Semiconductor Corp.*		9,918		89
Photronics, Inc.*		25,679		157
PLX Technology, Inc.*		18,372		117
Power Integrations, Inc.		12,066		450
QLogic Corp.*		41,441		567
QuickLogic Corp.*		16,448		41
Rambus, Inc.*		46,931		269
Richardson Electronics Ltd.		5,470		67
Rubicon Technology, Inc.*		6,936		71
Rudolph Technologies, Inc.*		13,828		121
Semtech Corp.*		27,855		677
Sigma Designs, Inc.*		13,962		89
Silicon Image, Inc.*		35,872		148
Standard Microsystems Corp.*		9,803		362
Supertex, Inc.*		4,177		79

EQUITY INDEX FUNDS    82    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Semiconductors - 3.3% continued
Tessera Technologies, Inc.		22,062	$	339
TriQuint Semiconductor, Inc.*		71,664		394
Ultra Clean Holdings*		10,073		65
Ultratech, Inc.*		11,139		351
Veeco Instruments, Inc.*		16,456		565
Volterra Semiconductor Corp.*		10,785		253
				16,594
Software - 4.1%
Accelrys, Inc.*		23,553		191
ACI Worldwide, Inc.*		16,895		747
Actuate Corp.*		20,893		145
Acxiom Corp.*		32,998		499
Advent Software, Inc.*		13,285		360
American Software, Inc., Class A		9,921		79
Aspen Technology, Inc.*		39,783		921
athenahealth, Inc.*		15,225		1,205
Audience, Inc.*		2,565		49
AVG Technologies N.V.*		3,204		42
Avid Technology, Inc.*		12,939		96
Blackbaud, Inc.		19,159		492
Bottomline Technologies, Inc.*		14,883		269
Callidus Software, Inc.*		14,717		73
CommVault Systems, Inc.*		18,991		941
Computer Programs & Systems, Inc.		4,764		273
Cornerstone OnDemand, Inc.*		14,301		340
CSG Systems International, Inc.*		14,153		245
Deltek, Inc.*		9,420		109
Demandware, Inc.*		2,778		66
Digi International, Inc.*		11,138		114
Ebix, Inc.		12,217		244
Envestnet, Inc.*		8,807		106
EPAM Systems, Inc.*		2,063		35
EPIQ Systems, Inc.		13,771		169
EPocrates, Inc.*		7,868		63
Fair Isaac Corp.		14,567		616
FalconStor Software, Inc.*		14,414		38
Geeknet, Inc.*		2,087		41
Glu Mobile, Inc.*		22,963		127
Greenway Medical Technologies*		3,557		58
Guidance Software, Inc.*		5,998		57
Guidewire Software, Inc.*		8,236		232
Imperva, Inc.*		4,131		119
inContact, Inc.*		13,703		69
Infoblox, Inc.*		3,290		75
InnerWorkings, Inc.*		13,490		182
Innodata Isogen, Inc.*		9,414		64
Interactive Intelligence Group, Inc.*		6,224		176
JDA Software Group, Inc.*		18,086		537
Jive Software, Inc.*		6,877		144
Mantech International Corp., Class A		9,829		231
Market Leader, Inc.*		9,322		47
MedAssets, Inc.*		24,755		333
Medidata Solutions, Inc.*		9,439		308
Mediware Information Systems*		1,456		21
MicroStrategy, Inc., Class A*		3,621		470
MModal, Inc.*		16,729		217
Monotype Imaging Holdings, Inc.*		15,512		260
Omnicell, Inc.*		14,403		211
OPNET Technologies, Inc.		6,348		169
Parametric Technology Corp.*		50,845		1,066
PDF Solutions, Inc.*		10,230		101
Pegasystems, Inc.		7,306		241
Pervasive Software, Inc.*		5,576		42
Progress Software Corp.*		26,718		558
Proofpoint, Inc.*		2,677		45
PROS Holdings, Inc.*		9,273		156
QAD, Inc., Class A		2,801		40
QLIK Technologies, Inc.*		36,294		803
Quality Systems, Inc.		16,798		462
Quest Software, Inc.*		23,805		663
RealPage, Inc.*		15,230		353
Rosetta Stone, Inc.*		4,468		62
Sapiens International Corp N.V.*		5,785		21
Schawk, Inc.		4,978		63
SciQuest, Inc.*		7,571		136
Seachange International, Inc.*		12,097		100
SS&C Technologies Holdings, Inc.*		14,382		360
Synchronoss Technologies, Inc.*		11,749		217
SYNNEX Corp.*		11,175		385
Take-Two Interactive Software, Inc.*		33,236		314
Tangoe, Inc.*		12,675		270
Tyler Technologies, Inc.*		12,770		515
Ultimate Software Group, Inc.*		11,314		1,008
Verint Systems, Inc.*		9,253		273
				20,929
Storage/Warehousing - 0.1%
Mobile Mini, Inc.*		16,268		234

NORTHERN FUNDS QUARTERLY REPORT    83    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Storage/Warehousing - 0.1% continued
Wesco Aircraft Holdings, Inc.*		7,498	$	96
				330
Telecommunications - 3.0%
8X8, Inc.*		30,029		126
ADTRAN, Inc.		27,087		818
Anaren, Inc.*		6,435		126
Anixter International, Inc.		11,991		636
Arris Group, Inc.*		48,030		668
Aruba Networks, Inc.*		47,544		716
Atlantic Tele-Network, Inc.		3,959		134
Aviat Networks, Inc.*		26,975		76
Aware, Inc.		4,856		31
Black Box Corp.		7,472		214
CalAmp Corp.*		12,180		89
Calix, Inc.*		16,400		135
Cbeyond, Inc.*		10,773		73
Ciena Corp.*		42,157		690
Cincinnati Bell, Inc.*		84,635		315
Comtech Telecommunications Corp.		8,058		230
Comverse Technology, Inc.*		93,114		542
Consolidated Communications Holdings, Inc.		12,731		188
DigitalGlobe, Inc.*		15,454		234
Extreme Networks, Inc.*		39,966		137
Fairpoint Communications, Inc.*		9,525		59
Finisar Corp.*		38,813		581
General Communication, Inc., Class A*		16,118		134
GeoEye, Inc.*		6,428		100
Globecomm Systems, Inc.*		9,777		99
Harmonic, Inc.*		50,214		214
Hawaiian Telcom Holdco, Inc.*		4,344		85
HickoryTech Corp.		5,685		63
IDT Corp., Class B		6,219		61
Infinera Corp.*		46,628		319
InterDigital, Inc.		18,912		558
Iridium Communications, Inc.*		21,114		189
Ixia*		17,912		215
KVH Industries, Inc.*		6,568		82
Leap Wireless International, Inc.*		22,595		145
LogMeIn, Inc.*		9,378		286
Loral Space & Communications, Inc.		4,668		314
Lumos Networks Corp.		6,224		59
Neonode, Inc.*		9,551		59
NeoPhotonics Corp.*		8,286		41
Netgear, Inc.*		16,147		557
Neutral Tandem, Inc.*		11,934		157
NTELOS Holdings Corp.		6,501		123
NumereX Corp., Class A*		4,440		41
Oclaro, Inc.*		23,540		72
Oplink Communications, Inc.*		8,091		109
ORBCOMM, Inc.*		16,080		52
Parkervision, Inc.*		32,230		77
Plantronics, Inc.		18,068		603
Preformed Line Products Co.		922		53
Premiere Global Services, Inc.*		21,650		182
Primus Telecommunications Group, Inc.		5,144		80
Procera Networks, Inc.*		8,253		201
RF Micro Devices, Inc.*		118,259		503
RigNet, Inc.*		5,224		91
Shenandoah Telecommunications Co.		9,816		134
ShoreTel, Inc.*		20,725		91
Sonus Networks, Inc.*		88,429		190
SureWest Communications		5,899		124
Sycamore Networks, Inc.*		8,694		126
Symmetricom, Inc.*		17,163		103
TeleNav, Inc.*		7,857		48
Tellabs, Inc.		155,707		518
Telular Corp.		7,003		65
Tessco Technologies, Inc.		2,283		50
Ubiquiti Networks, Inc.*		4,458		64
USA Mobility, Inc.		9,344		120
Viasat, Inc.*		15,953		603
Vonage Holdings Corp.*		67,632		136
Westell Technologies, Inc., Class A*		20,435		49
				15,163
Textiles - 0.1%
Culp, Inc.		3,669		38
G&K Services, Inc., Class A		8,013		250
Unifirst Corp.		6,168		393
				681
Toys, Games & Hobbies - 0.1%
Jakks Pacific, Inc.		11,143		179
Leapfrog Enterprises, Inc.*		21,445		220
				399
Transportation - 1.7%
Air Transport Services Group, Inc.*		23,123		120
Arkansas Best Corp.		11,079		140

EQUITY INDEX FUNDS    84    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.8% continued
Transportation - 1.7% continued
Atlas Air Worldwide Holdings, Inc.*		11,241	$	489
Bristow Group, Inc.		15,217		619
CAI International, Inc.*		5,467		109
Celadon Group, Inc.		8,693		142
Echo Global Logistics, Inc.*		6,268		120
Forward Air Corp.		12,366		399
Frontline Ltd.		21,318		97
GasLog Ltd.*		9,997		102
Genco Shipping & Trading Ltd.*		14,160		43
Genesee & Wyoming, Inc., Class A*		17,230		910
Gulfmark Offshore, Inc., Class A*		11,415		389
Heartland Express, Inc.		20,166		289
HUB Group, Inc., Class A*		15,784		571
International Shipholding Corp.		2,397		45
Knight Transportation, Inc.		24,396		390
Knightsbridge Tankers Ltd.		10,665		87
Marten Transport Ltd.		6,466		137
Nordic American Tankers Ltd.		22,518		306
Old Dominion Freight Line, Inc.*		20,200		874
Overseas Shipholding Group, Inc.		10,473		116
Pacer International, Inc.*		14,652		79
Patriot Transportation Holding, Inc.*		2,699		64
PHI, Inc. (Non Voting)*		5,542		154
Quality Distribution, Inc.*		9,078		101
RailAmerica, Inc.*		8,033		194
Rand Logistics, Inc.*		7,472		64
Roadrunner Transportation Systems, Inc.*		5,442		92
Saia, Inc.*		7,008		153
Scorpio Tankers, Inc.*		16,031		102
Ship Finance International Ltd.		19,235		301
Swift Transportation Co.*		33,586		317
Teekay Tankers Ltd., Class A		26,809		122
Universal Truckload Services, Inc.		2,412		37
Werner Enterprises, Inc.		18,791		449
XPO Logistics, Inc.*		7,489		126
				8,849
Trucking & Leasing - 0.2%
AMERCO		3,685		331
Greenbrier Cos., Inc.*		9,713		171
TAL International Group, Inc.		12,425		416
Textainer Group Holdings Ltd.		5,230		193
Willis Lease Finance Corp.*		2,340		29
				1,140
Water - 0.3%
American States Water Co.		7,949		315
Artesian Resources Corp., Class A		3,420		74
California Water Service Group		17,718		327
Connecticut Water Service, Inc.		3,736		108
Consolidated Water Co. Ltd.		6,542		54
Middlesex Water Co.		6,551		124
PICO Holdings, Inc.*		9,625		216
SJW Corp.		5,868		141
York Water Co.		5,634		101
				1,460
Total Common Stocks (Cost $445,857)				488,920
OTHER - 0.0%
Machinery - Diversified - 0.0%
Escrow Gerber Scientific, Inc.(1) *		8,824		—
Oil & Gas - 0.0%
Escrow DLB Oil & Gas(1) *		800		—
Total Other (Cost $ — )				—
RIGHTS - 0.0%
Savings & Loans - 0.0%
CSF Holdings, Inc.*		4,212		—
Total Rights (Cost $ — )				—
	NUMBER OF WARRANTS		VALUE (000S)
WARRANTS - 0.0%
Oil & Gas - 0.0%
Magnum Hunter Resources Corp. Exp. 10/14/13, Strike $10.50*		3,855	$	—
Total Warrants (Cost $ — )				—

NORTHERN FUNDS QUARTERLY REPORT    85    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2.7%
Northern Institutional Funds - Diversified Assets Portfolio(2) (3)		13,593,532	$	13,593
Total Investment Companies (Cost $13,593)				13,593
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.4%
U.S. Treasury Bill,
0.14%, 11/1/12(4)	$	2,160	$	2,159
Total Short-Term Investments (Cost $2,159)				2,159
Total Investments - 99.9% (Cost $461,609)				504,672
Other Assets less Liabilities - 0.1%				697
NET ASSETS - 100.0%			$	505,369

(1) Security listed as escrow is considered to be worthless.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(3) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $10,877,000 with net purchases of approximately $2,716,000 during the three months ended June 30, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the Small Cap Index Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
Russell 2000 Mini		221	$	17,578		Long		9/12	$	991

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	464,430
Gross tax appreciation of investments	$	88,199
Gross tax depreciation of investments		(47,957	)
Net tax appreciation of investments	$	40,242

At June 30, 2012, the industry sectors for the Small Cap Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		13.8	%
Consumer Staples		3.7
Energy		6.0
Financials		21.3
Health Care		13.4
Industrials		15.0
Information Technology		17.6
Materials		4.7
Telecommunication Services		0.9
Utilities		3.6
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Small Cap Index Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	488,920	(1)	$	—	$	—	$	488,920
Investment Companies		13,593			—		—		13,593
Short-Term Invetments		—			2,159		—		2,159
Total Investments	$	502,513		$	2,159	$	—	$	504,672
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	991		$	—	$	—	$	991

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EQUITY INDEX FUNDS    86    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.4%
Advertising - 0.1%
Interpublic Group of (The) Cos., Inc.		113,853	$	1,235
Omnicom Group, Inc.		68,741		3,341
				4,576
Aerospace/Defense - 1.9%
Boeing (The) Co.		189,048		14,046
General Dynamics Corp.		91,051		6,006
Goodrich Corp.		31,758		4,030
L-3 Communications Holdings, Inc.		24,504		1,813
Lockheed Martin Corp.		67,186		5,851
Northrop Grumman Corp.		63,751		4,067
Raytheon Co.		84,036		4,756
Rockwell Collins, Inc.		36,522		1,802
United Technologies Corp.		229,992		17,371
				59,742
Agriculture - 2.1%
Altria Group, Inc.		512,958		17,723
Archer-Daniels-Midland Co.		166,706		4,921
Lorillard, Inc.		32,845		4,334
Philip Morris International, Inc.		430,376		37,554
Reynolds American, Inc.		83,165		3,732
				68,264
Airlines - 0.1%
Southwest Airlines Co.		190,825		1,759
Apparel - 0.6%
Coach, Inc.		72,485		4,239
NIKE, Inc., Class B		92,481		8,118
Ralph Lauren Corp.		16,290		2,281
VF Corp.		22,013		2,938
				17,576
Auto Manufacturers - 0.4%
Ford Motor Co.		962,910		9,234
PACCAR, Inc.		89,936		3,525
				12,759
Auto Parts & Equipment - 0.2%
BorgWarner, Inc.*		28,909		1,896
Goodyear Tire & Rubber (The) Co.*		63,119		745
Johnson Controls, Inc.		171,368		4,749
				7,390
Banks - 6.5%
Bank of America Corp.		2,719,463		22,245
Bank of New York Mellon (The) Corp.		300,692		6,600
BB&T Corp.		175,679		5,420
Capital One Financial Corp.		146,534		8,010
Citigroup, Inc.		740,016		20,284
Comerica, Inc.		49,601		1,523
Fifth Third Bancorp		231,893		3,107
First Horizon National Corp.		65,390		566
First Horizon National Corp. - (Fractional Shares)*		204,131		—
Goldman Sachs Group (The), Inc.		124,050		11,891
Huntington Bancshares, Inc.		215,085		1,377
JPMorgan Chase & Co.		959,998		34,301
KeyCorp		237,526		1,838
M&T Bank Corp.		31,867		2,631
Morgan Stanley		383,531		5,596
Northern Trust Corp.(1) (2)		61,079		2,811
PNC Financial Services Group, Inc.		133,819		8,178
Regions Financial Corp.		356,037		2,403
State Street Corp.		122,729		5,479
SunTrust Banks, Inc.		136,457		3,306
U.S. Bancorp		478,536		15,390
Wells Fargo & Co.		1,341,163		44,848
Zions Bancorporation		45,579		885
				208,689
Beverages - 2.7%
Beam, Inc.		40,082		2,505
Brown-Forman Corp., Class B		25,129		2,434
Coca-Cola (The) Co.		568,982		44,489
Coca-Cola Enterprises, Inc.		76,003		2,131
Constellation Brands, Inc., Class A*		41,934		1,135
Dr Pepper Snapple Group, Inc.		53,586		2,344
Molson Coors Brewing Co., Class B		39,988		1,664
Monster Beverage Corp.*		38,709		2,756
PepsiCo, Inc.		394,390		27,867
				87,325
Biotechnology - 1.5%
Alexion Pharmaceuticals, Inc.*		48,458		4,812
Amgen, Inc.		196,225		14,332
Biogen Idec, Inc.*		60,501		8,735
Celgene Corp.*		111,318		7,142
Gilead Sciences, Inc.*		190,743		9,782
Life Technologies Corp.*		44,481		2,001
				46,804

NORTHERN FUNDS QUARTERLY REPORT    87    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.4% continued
Building Materials - 0.0%
Masco Corp.		88,110	$	1,222
Chemicals - 2.3%
Air Products & Chemicals, Inc.		53,722		4,337
Airgas, Inc.		17,287		1,452
CF Industries Holdings, Inc.		16,493		3,195
Dow Chemical (The) Co.		301,584		9,500
E.I. du Pont de Nemours & Co.		236,370		11,953
Eastman Chemical Co.		34,524		1,739
Ecolab, Inc.		74,159		5,082
FMC Corp.		34,202		1,829
International Flavors & Fragrances, Inc.		20,729		1,136
Monsanto Co.		134,848		11,163
Mosaic (The) Co.		75,048		4,110
PPG Industries, Inc.		38,316		4,066
Praxair, Inc.		75,634		8,224
Sherwin-Williams (The) Co.		21,790		2,884
Sigma-Aldrich Corp.		30,446		2,251
				72,921
Coal - 0.1%
Alpha Natural Resources, Inc.*		56,276		490
Consol Energy, Inc.		57,231		1,731
Peabody Energy Corp.		68,625		1,683
				3,904
Commercial Services - 1.6%
Apollo Group, Inc., Class A*		27,802		1,006
Automatic Data Processing, Inc.		123,501		6,874
DeVry, Inc.		15,433		478
Equifax, Inc.		30,604		1,426
H&R Block, Inc.		75,341		1,204
Iron Mountain, Inc.		42,519		1,401
Mastercard, Inc., Class A		26,757		11,509
Moody’s Corp.		50,484		1,845
Paychex, Inc.		81,348		2,555
Quanta Services, Inc.*		54,078		1,302
R.R. Donnelley & Sons Co.		46,192		544
Robert Half International, Inc.		36,325		1,038
SAIC, Inc.		71,015		861
Total System Services, Inc.		41,053		982
Visa, Inc., Class A		125,692		15,539
Western Union (The) Co.		153,140		2,579
				51,143
Computers - 7.9%
Accenture PLC, Class A		162,964		9,793
Apple, Inc.*		235,899		137,765
Cognizant Technology Solutions Corp., Class A*		76,401		4,584
Computer Sciences Corp.		39,964		992
Dell, Inc.*		375,277		4,698
EMC Corp.*		530,132		13,587
Hewlett-Packard Co.		497,722		10,009
International Business Machines Corp.		291,007		56,915
Lexmark International, Inc., Class A		17,905		476
NetApp, Inc.*		91,443		2,910
SanDisk Corp.*		61,091		2,229
Seagate Technology PLC		95,476		2,361
Teradata Corp.*		42,876		3,087
Western Digital Corp.*		58,920		1,796
				251,202
Cosmetics/Personal Care - 1.9%
Avon Products, Inc.		108,571		1,760
Colgate-Palmolive Co.		120,280		12,521
Estee Lauder (The) Cos., Inc., Class A		56,638		3,065
Procter & Gamble (The) Co.		691,156		42,334
				59,680
Distribution/Wholesale - 0.3%
Fastenal Co.		74,379		2,998
Fossil, Inc.*		13,074		1,001
Genuine Parts Co.		39,277		2,367
W.W. Grainger, Inc.		15,349		2,935
				9,301
Diversified Financial Services - 1.7%
American Express Co.		252,947		14,724
Ameriprise Financial, Inc.		54,696		2,858
BlackRock, Inc.		32,212		5,470
Charles Schwab (The) Corp.		271,805		3,514
CME Group, Inc.		16,741		4,488
Discover Financial Services		133,491		4,616
E*TRADE Financial Corp.*		61,066		491
Federated Investors, Inc., Class B		24,183		528
Franklin Resources, Inc.		35,778		3,971
IntercontinentalExchange, Inc.*		18,308		2,490
Invesco Ltd.		114,074		2,578
Legg Mason, Inc.		32,444		856
NASDAQ OMX Group (The), Inc.		30,520		692
NYSE Euronext		64,138		1,641
SLM Corp.		123,266		1,937

EQUITY INDEX FUNDS    88    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.4% continued
Diversified Financial Services - 1.7% continued
T. Rowe Price Group, Inc.		64,631	$	4,069
				54,923
Electric - 3.3%
AES (The) Corp.*		161,972		2,078
Ameren Corp.		61,298		2,056
American Electric Power Co., Inc.		121,913		4,864
CMS Energy Corp.		65,390		1,537
Consolidated Edison, Inc.		73,920		4,597
Dominion Resources, Inc.		143,590		7,754
DTE Energy Co.		42,847		2,542
Duke Energy Corp.*		337,570		7,784
Edison International		82,239		3,799
Entergy Corp.		44,755		3,038
Exelon Corp.		214,511		8,070
FirstEnergy Corp.		105,398		5,185
Integrys Energy Group, Inc.		19,980		1,136
NextEra Energy, Inc.		104,880		7,217
Northeast Utilities		79,178		3,073
NRG Energy, Inc.*		58,990		1,024
Pepco Holdings, Inc.		57,848		1,132
PG&E Corp.		106,456		4,819
Pinnacle West Capital Corp.		27,736		1,435
PPL Corp.		146,452		4,073
Progress Energy, Inc.		74,834		4,503
Public Service Enterprise Group, Inc.		127,539		4,145
SCANA Corp.		29,451		1,409
Southern (The) Co.		219,372		10,157
TECO Energy, Inc.		55,139		996
Wisconsin Energy Corp.		58,330		2,308
Xcel Energy, Inc.		123,011		3,495
				104,226
Electrical Components & Equipment - 0.3%
Emerson Electric Co.		184,966		8,616
Molex, Inc.		33,709		807
				9,423
Electronics - 1.1%
Agilent Technologies, Inc.		87,505		3,434
Amphenol Corp., Class A		41,078		2,256
FLIR Systems, Inc.		39,572		772
Honeywell International, Inc.		196,759		10,987
Jabil Circuit, Inc.		45,061		916
PerkinElmer, Inc.		29,659		765
TE Connectivity Ltd.		107,230		3,422
Thermo Fisher Scientific, Inc.		92,131		4,782
Tyco International Ltd.		117,061		6,187
Waters Corp.*		22,428		1,782
				35,303
Engineering & Construction - 0.1%
Fluor Corp.		42,655		2,105
Jacobs Engineering Group, Inc.*		32,342		1,224
				3,329
Entertainment - 0.0%
International Game Technology		73,001		1,150
Environmental Control - 0.2%
Republic Services, Inc.		79,257		2,097
Stericycle, Inc.*		21,324		1,955
Waste Management, Inc.		116,202		3,881
				7,933
Food - 1.8%
Campbell Soup Co.		44,484		1,485
ConAgra Foods, Inc.		104,322		2,705
Dean Foods Co.*		46,774		796
General Mills, Inc.		163,803		6,313
H.J. Heinz Co.		80,658		4,386
Hershey (The) Co.		38,697		2,787
Hormel Foods Corp.		34,023		1,035
J.M. Smucker (The) Co.		28,585		2,159
Kellogg Co.		62,105		3,064
Kraft Foods, Inc., Class A		447,297		17,274
Kroger (The) Co.		141,812		3,289
McCormick & Co., Inc. (Non Voting)		33,368		2,024
Safeway, Inc.		60,314		1,095
Sysco Corp.		147,332		4,392
Tyson Foods, Inc., Class A		72,278		1,361
Whole Foods Market, Inc.		41,432		3,949
				58,114
Forest Products & Paper - 0.3%
International Paper Co.		110,317		3,189
MeadWestvaco Corp.		43,741		1,258
Plum Creek Timber Co., Inc.		40,833		1,621
Weyerhaeuser Co.		135,249		3,024
				9,092
Gas - 0.3%
AGL Resources, Inc.		28,962		1,123

NORTHERN FUNDS QUARTERLY REPORT    89    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.4% continued
Gas - 0.3% continued
CenterPoint Energy, Inc.		107,505	$	2,222
NiSource, Inc.		71,766		1,776
Sempra Energy		60,583		4,173
				9,294
Hand/Machine Tools - 0.1%
Snap-on, Inc.		14,420		898
Stanley Black & Decker, Inc.		43,519		2,801
				3,699
Healthcare - Products - 1.8%
Baxter International, Inc.		139,059		7,391
Becton, Dickinson and Co.		51,317		3,836
Boston Scientific Corp.*		357,227		2,026
C.R. Bard, Inc.		21,215		2,279
CareFusion Corp.*		56,455		1,450
Covidien PLC		121,738		6,513
DENTSPLY International, Inc.		36,269		1,371
Edwards Lifesciences Corp.*		28,810		2,976
Hospira, Inc.*		41,461		1,450
Intuitive Surgical, Inc.*		10,024		5,551
Medtronic, Inc.		262,114		10,152
Patterson Cos., Inc.		22,870		788
St. Jude Medical, Inc.		79,330		3,166
Stryker Corp.		81,590		4,496
Varian Medical Systems, Inc.*		28,511		1,733
Zimmer Holdings, Inc.		44,070		2,836
				58,014
Healthcare - Services - 1.2%
Aetna, Inc.		87,135		3,378
Cigna Corp.		72,263		3,180
Coventry Health Care, Inc.		36,110		1,148
DaVita, Inc.*		23,434		2,301
Humana, Inc.		41,363		3,203
Laboratory Corp. of America Holdings*		24,315		2,252
Quest Diagnostics, Inc.		39,959		2,394
Tenet Healthcare Corp.*		105,021		550
UnitedHealth Group, Inc.		261,741		15,312
WellPoint, Inc.		83,503		5,327
				39,045
Holding Companies - Diversified - 0.0%
Leucadia National Corp.		49,748		1,058
Home Builders - 0.1%
D.R. Horton, Inc.		69,172		1,272
Lennar Corp., Class A		41,574		1,285
Pulte Group, Inc.*		81,985		877
				3,434
Home Furnishings - 0.1%
Harman International Industries, Inc.		18,410		729
Whirlpool Corp.		19,684		1,204
				1,933
Household Products/Wares - 0.4%
Avery Dennison Corp.		25,594		700
Clorox (The) Co.		32,817		2,378
Kimberly-Clark Corp.		99,205		8,310
				11,388
Housewares - 0.0%
Newell Rubbermaid, Inc.		72,386		1,313
Insurance - 3.5%
ACE Ltd.		85,617		6,347
Aflac, Inc.		117,644		5,010
Allstate (The) Corp.		124,055		4,353
American International Group, Inc.*		161,015		5,167
American International Group, Inc. - (Fractional Shares)*		11,638		—
Aon PLC		81,910		3,832
Assurant, Inc.		21,078		734
Berkshire Hathaway, Inc., Class B*		443,699		36,973
Chubb (The) Corp.		68,278		4,972
Cincinnati Financial Corp.		40,515		1,542
Genworth Financial, Inc., Class A*		126,586		717
Hartford Financial Services Group, Inc.		110,933		1,956
Lincoln National Corp.		71,009		1,553
Loews Corp.		76,916		3,147
Marsh & McLennan Cos., Inc.		138,376		4,460
MetLife, Inc.		268,755		8,291
Principal Financial Group, Inc.		75,914		1,991
Progressive (The) Corp.		154,031		3,208
Prudential Financial, Inc.		118,369		5,733
Torchmark Corp.		24,699		1,249
Travelers (The) Cos., Inc.		98,193		6,269
Unum Group		72,300		1,383
XL Group PLC		78,994		1,662
				110,549
Internet - 2.9%
Amazon.com, Inc.*		90,934		20,765
eBay, Inc.*		289,938		12,180

EQUITY INDEX FUNDS    90    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.4% continued
Internet - 2.9% continued
Expedia, Inc.		22,766	$	1,094
F5 Networks, Inc.*		19,944		1,986
Google, Inc., Class A*		64,158		37,216
Netflix, Inc.*		13,812		946
priceline.com, Inc.*		12,543		8,335
Symantec Corp.*		180,393		2,635
TripAdvisor, Inc.*		24,232		1,083
VeriSign, Inc.*		40,277		1,755
Yahoo!, Inc.*		305,913		4,843
				92,838
Iron/Steel - 0.2%
Allegheny Technologies, Inc.		27,685		883
Cliffs Natural Resources, Inc.		35,768		1,763
Nucor Corp.		79,824		3,025
United States Steel Corp.		35,648		735
				6,406
Leisure Time - 0.2%
Carnival Corp.		114,139		3,912
Harley-Davidson, Inc.		58,562		2,678
				6,590
Lodging - 0.3%
Marriott International, Inc., Class A		67,402		2,642
Marriott International, Inc., Class A - (Fractional Shares)*		79,497		—
Starwood Hotels & Resorts Worldwide, Inc.		49,471		2,624
Wyndham Worldwide Corp.		36,817		1,942
Wynn Resorts Ltd.		20,010		2,075
				9,283
Machinery - Construction & Mining - 0.5%
Caterpillar, Inc.		164,736		13,988
Joy Global, Inc.		26,639		1,511
				15,499
Machinery - Diversified - 0.6%
Cummins, Inc.		48,338		4,685
Deere & Co.		100,531		8,130
Flowserve Corp.		13,673		1,569
Rockwell Automation, Inc.		35,872		2,370
Roper Industries, Inc.		24,431		2,408
Xylem, Inc.		47,247		1,189
				20,351
Media - 3.2%
Cablevision Systems Corp., Class A		55,171	$	733
CBS Corp., Class B (Non Voting)		163,450		5,358
Comcast Corp., Class A		680,764		21,764
DIRECTV, Class A*		165,195		8,065
Discovery Communications, Inc., Class A*		64,135		3,463
Gannett Co., Inc.		57,480		847
McGraw-Hill (The) Cos., Inc.		70,018		3,151
News Corp., Class A		531,570		11,849
Scripps Networks Interactive, Inc., Class A		23,361		1,328
Time Warner Cable, Inc.		79,111		6,495
Time Warner, Inc.		242,102		9,321
Viacom, Inc., Class B		133,150		6,261
Walt Disney (The) Co.		451,340		21,890
Washington Post (The) Co., Class B		1,253		468
				100,993
Metal Fabrication/Hardware - 0.2%
Precision Castparts Corp.		36,569		6,015
Mining - 0.6%
Alcoa, Inc.		268,777		2,352
Freeport-McMoRan Copper & Gold, Inc.		240,183		8,183
Newmont Mining Corp.		124,714		6,050
Titanium Metals Corp.		19,802		224
Vulcan Materials Co.		31,998		1,270
				18,079
Miscellaneous Manufacturing - 3.3%
3M Co.		174,910		15,672
Cooper Industries PLC		39,942		2,723
Danaher Corp.		145,247		7,564
Dover Corp.		46,288		2,481
Eaton Corp.		85,671		3,395
General Electric Co.		2,672,596		55,697
Illinois Tool Works, Inc.		120,716		6,385
Ingersoll-Rand PLC		74,909		3,160
Leggett & Platt, Inc.		35,964		760
Pall Corp.		28,989		1,589
Parker Hannifin Corp.		38,041		2,925
Textron, Inc.		70,463		1,752
				104,103
Office/Business Equipment - 0.1%
Pitney Bowes, Inc.		52,186		781
Xerox Corp.		341,915		2,691
				3,472

NORTHERN FUNDS QUARTERLY REPORT    91    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.4% continued
Oil & Gas - 8.6%
Anadarko Petroleum Corp.		126,392	$	8,367
Apache Corp.		98,715		8,676
Cabot Oil & Gas Corp.		52,817		2,081
Chesapeake Energy Corp.		167,055		3,107
Chevron Corp.		497,910		52,530
ConocoPhillips		318,988		17,825
Denbury Resources, Inc.*		98,417		1,487
Devon Energy Corp.		101,820		5,905
Diamond Offshore Drilling, Inc.		17,235		1,019
EOG Resources, Inc.		68,333		6,157
EQT Corp.		37,696		2,022
Exxon Mobil Corp.		1,179,666		100,944
Helmerich & Payne, Inc.		27,499		1,196
Hess Corp.		76,262		3,314
Marathon Oil Corp.		177,480		4,538
Marathon Petroleum Corp.		85,968		3,862
Murphy Oil Corp.		48,930		2,461
Nabors Industries Ltd.*		71,910		1,035
Newfield Exploration Co.*		34,336		1,006
Noble Corp.*		63,587		2,068
Noble Energy, Inc.		44,596		3,783
Occidental Petroleum Corp.		204,896		17,574
Phillips 66*		157,807		5,246
Pioneer Natural Resources Co.		31,056		2,739
QEP Resources, Inc.		44,046		1,320
Range Resources Corp.		40,982		2,536
Rowan Cos. PLC, Class A*		31,834		1,029
Southwestern Energy Co.*		88,015		2,810
Sunoco, Inc.		26,481		1,258
Tesoro Corp.*		36,027		899
Valero Energy Corp.		139,860		3,378
WPX Energy, Inc.*		48,540		785
				272,957
Oil & Gas Services - 1.4%
Baker Hughes, Inc.		110,293		4,533
Cameron International Corp.*		62,077		2,651
FMC Technologies, Inc.*		60,293		2,365
Halliburton Co.		232,496		6,601
National Oilwell Varco, Inc.		107,616		6,935
Schlumberger Ltd.		336,723		21,857
				44,942
Packaging & Containers - 0.1%
Ball Corp.		39,380		1,616
Bemis Co., Inc.		26,527		831
Owens-Illinois, Inc.*		42,548		816
Sealed Air Corp.		49,272		761
				4,024
Pharmaceuticals - 6.9%
Abbott Laboratories		396,881		25,587
Allergan, Inc.		77,605		7,184
AmerisourceBergen Corp.		63,407		2,495
Bristol-Myers Squibb Co.		426,640		15,338
Cardinal Health, Inc.		87,237		3,664
Eli Lilly & Co.		257,246		11,038
Express Scripts Holding Co.*		203,320		11,351
Forest Laboratories, Inc.*		67,118		2,349
Johnson & Johnson		692,717		46,800
McKesson Corp.		59,426		5,571
Mead Johnson Nutrition Co.		51,294		4,130
Merck & Co., Inc.		767,888		32,059
Mylan, Inc.*		107,623		2,300
Perrigo Co.		23,511		2,773
Pfizer, Inc.		1,888,916		43,445
Watson Pharmaceuticals, Inc.*		32,037		2,370
				218,454
Pipelines - 0.5%
Kinder Morgan, Inc.		127,177		4,098
Oneok, Inc.		52,426		2,218
Spectra Energy Corp.		164,328		4,775
Williams (The) Cos., Inc.		157,840		4,549
				15,640
Real Estate - 0.0%
CBRE Group, Inc., Class A*		82,612		1,352
Real Estate Investment Trusts - 2.0%
American Tower Corp.		99,945		6,987
Apartment Investment & Management Co., Class A		33,350		901
AvalonBay Communities, Inc.		23,995		3,395
Boston Properties, Inc.		37,916		4,109
Equity Residential		75,662		4,718
HCP, Inc.		105,754		4,669
Health Care REIT, Inc.		54,036		3,150
Host Hotels & Resorts, Inc.		181,728		2,875
Kimco Realty Corp.		103,738		1,974
ProLogis, Inc.		115,663		3,844
Public Storage		35,818		5,173

EQUITY INDEX FUNDS    92    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.4% continued
Real Estate Investment Trusts - 2.0% continued
Simon Property Group, Inc.		76,444	$	11,899
Ventas, Inc.		72,892		4,601
Vornado Realty Trust		46,692		3,921
				62,216
Retail - 6.1%
Abercrombie & Fitch Co., Class A		21,119		721
AutoNation, Inc.*		9,924		350
AutoZone, Inc.*		6,716		2,466
Bed Bath & Beyond, Inc.*		58,674		3,626
Best Buy Co., Inc.		68,981		1,446
Big Lots, Inc.*		15,722		641
CarMax, Inc.*		58,108		1,507
Chipotle Mexican Grill, Inc.*		8,016		3,046
Costco Wholesale Corp.		108,970		10,352
CVS Caremark Corp.		323,323		15,109
Darden Restaurants, Inc.		32,122		1,626
Dollar Tree, Inc.*		58,536		3,149
Family Dollar Stores, Inc.		29,651		1,971
GameStop Corp., Class A		33,060		607
Gap (The), Inc.		83,654		2,289
Home Depot (The), Inc.		386,099		20,459
J.C. Penney Co., Inc.		36,081		841
Kohl’s Corp.		60,599		2,757
Limited Brands, Inc.		60,796		2,586
Lowe’s Cos., Inc.		296,950		8,445
Macy’s, Inc.		104,294		3,583
McDonald’s Corp.		256,591		22,716
Nordstrom, Inc.		40,263		2,001
O’Reilly Automotive, Inc.*		32,089		2,688
Ross Stores, Inc.		56,864		3,552
Sears Holdings Corp.*		9,720		580
Staples, Inc.		175,002		2,284
Starbucks Corp.		191,463		10,209
Target Corp.		166,754		9,703
Tiffany & Co.		32,013		1,695
TJX Cos., Inc.		186,997		8,028
Urban Outfitters, Inc.*		28,967		799
Walgreen Co.		217,813		6,443
Wal-Mart Stores, Inc.		435,228		30,344
Yum! Brands, Inc.		116,046		7,476
				196,095
Savings & Loans - 0.1%
Hudson City Bancorp, Inc.		136,917		872
People’s United Financial, Inc.		88,914		1,032
				1,904
Semiconductors - 3.0%
Advanced Micro Devices, Inc.*		152,178		872
Altera Corp.		81,147		2,746
Analog Devices, Inc.		74,780		2,817
Applied Materials, Inc.		325,003		3,724
Broadcom Corp., Class A*		125,320		4,236
First Solar, Inc.*		14,473		218
Intel Corp.		1,269,540		33,833
KLA-Tencor Corp.		41,921		2,065
Lam Research Corp.*		51,559		1,946
Linear Technology Corp.		57,594		1,804
LSI Corp.*		147,553		940
Microchip Technology, Inc.		48,239		1,596
Micron Technology, Inc.*		248,829		1,570
NVIDIA Corp.*		157,861		2,182
QUALCOMM, Inc.		432,539		24,084
Teradyne, Inc.*		45,412		638
Texas Instruments, Inc.		288,150		8,267
Xilinx, Inc.		65,843		2,210
				95,748
Software - 3.9%
Adobe Systems, Inc.*		124,421		4,028
Akamai Technologies, Inc.*		45,615		1,448
Autodesk, Inc.*		58,481		2,046
BMC Software, Inc.*		40,202		1,716
CA, Inc.		89,510		2,425
Cerner Corp.*		36,759		3,039
Citrix Systems, Inc.*		46,735		3,923
Dun & Bradstreet (The) Corp.		12,281		874
Electronic Arts, Inc.*		81,489		1,006
Fidelity National Information Services, Inc.		60,620		2,066
Fiserv, Inc.*		34,193		2,469
Intuit, Inc.		74,288		4,409
Microsoft Corp.		1,886,377		57,704
Oracle Corp.		979,120		29,080
Red Hat, Inc.*		48,652		2,748
Salesforce.com, Inc.*		34,842		4,817
				123,798
Telecommunications - 4.3%
AT&T, Inc.		1,478,765		52,733
CenturyLink, Inc.		156,193		6,168

NORTHERN FUNDS QUARTERLY REPORT    93    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.4% continued
Telecommunications - 4.3% continued
Cisco Systems, Inc.		1,351,473	$	23,205
Corning, Inc.		383,242		4,955
Crown Castle International Corp.*		64,868		3,805
Frontier Communications Corp.		257,921		988
Harris Corp.		29,012		1,214
JDS Uniphase Corp.*		60,586		666
Juniper Networks, Inc.*		132,561		2,162
MetroPCS Communications, Inc.*		76,547		463
Motorola Solutions, Inc.		74,115		3,566
Sprint Nextel Corp.*		761,674		2,483
Verizon Communications, Inc.		716,395		31,837
Windstream Corp.		150,729		1,456
				135,701
Textiles - 0.0%
Cintas Corp.		27,290		1,054
Toys, Games & Hobbies - 0.1%
Hasbro, Inc.		28,759		974
Mattel, Inc.		85,514		2,774
				3,748
Transportation - 1.8%
C.H. Robinson Worldwide, Inc.		41,163		2,409
CSX Corp.		262,250		5,864
Expeditors International of
Washington, Inc.		53,448		2,071
FedEx Corp.		79,809		7,311
Norfolk Southern Corp.		82,240		5,902
Ryder System, Inc.		13,095		472
Union Pacific Corp.		120,160		14,336
United Parcel Service, Inc., Class B		242,108		19,069
				57,434
Total Common Stocks (Cost $2,612,325)				3,106,173
INVESTMENT COMPANIES - 2.2%
Northern Institutional Funds - Diversified Assets Portfolio(3) (4)		69,806,390		69,806
Total Investment Companies (Cost $69,806)				69,806
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.3%
U.S. Treasury Bill, 0.14%, 11/1/12(5)	$	7,725	$	7,722
Total Short-Term Investments (Cost $7,722)				7,722
Total Investments - 99.9% (Cost $2,689,853)				3,183,701
Other Assets less Liabilities - 0.1%				4,480
NET ASSETS - 100.0%			$	3,188,181

(1) At March 31, 2012, the value of the Fund’s investment in Northern Trust Corp. was approximately $2,498,000. There were gross purchases of approximately $392,000 and no sales during the three months ended June 30, 2012. The net change in unrealized depreciation during the three months ended June 30, 2012, was approximately $79,000.

(2) Investment in affiliate.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(4) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $108,614,000 with net sales of approximately $38,808,000 during the three months ended June 30, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the Stock Index Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
S&P 500 E-mini		1,216	$	82,469		Long		9/12	$	4,318

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	2,781,729
Gross tax appreciation of investments	$	578,956
Gross tax depreciation of investments		(176,984	)
Net tax appreciation of investments	$	401,972

EQUITY INDEX FUNDS    94    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

At June 30, 2012, the industry sectors for the Stock Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		10.9	%
Consumer Staples		11.3
Energy		10.8
Financials		14.4
Health Care		12.0
Industrials		10.5
Information Technology		19.8
Materials		3.4
Telecommunication Services		3.2
Utilities		3.7
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Stock Index Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	3,106,173	(1)	$	—	$	—	$	3,106,173
Investment Companies		69,806			—		—		69,806
Short-Term Investments		—			7,722		—		7,722
Total Investments	$	3,175,979		$	7,722	$	—	$	3,183,701
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	4,318		$	—	$	—	$	4,318

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    95    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 96.3%
California - 96.3%
ABAG Finance Authority For Nonprofit Corp. California COPS VRDB, Episcopal Homes Foundation, (Wells Fargo Bank N.A. LOC), 0.12%, 7/10/12	$	10,800	$	10,800
Alameda County California IDA Revenue VRDB, Convergent Laser Tech, (Wells Fargo Bank N.A. LOC), 0.18%, 7/10/12		3,125		3,125
California Health Facilities Financing Authority Revenue VRDB, (Bank of Montreal LOC), 0.15%, 7/10/12		6,725		6,725
California Infrastructure & Economic Development Bank Revenue Refunding VRDB, Pacific Gas & Electric, Series C, (Sumitomo Mitsui Banking Group LOC), 0.15%, 7/2/12		200		200
California Infrastructure & Economic Development Bank Revenue VRDB, Pinewood School Project, (Comerica LOC), 0.19%, 7/10/12		11,800		11,800
California Infrastructure & Economic Development Bank Revenue VRDB, Southern California Public Radio Project, (JPMorgan Chase Bank N.A. LOC), 0.17%, 7/2/12		2,600		2,600
California Los Angeles Unified School District G.O., Election of 1997, Series E, 5.00%, 7/1/12		11,355		11,355
California Municipal Finance Authority Revenue Refunding VRDB, Touro University California Project, (FHLB of San Francisco LOC), 0.16%, 7/10/12		16,105		16,105
California Municipal Finance Authority Revenue VRDB, Westmont College, Series A, (Comerica LOC), 0.16%, 7/10/12		12,750		12,750
California Pollution Control Financing Authority Solid Waste Disposal Revenue VRDB, Mission Trail Waste, Series A, (Comerica LOC), 0.21%, 7/10/12		2,940		2,940
California State G.O. VRDB, Series A-3, (Bank of Montreal LOC), 0.12%, 7/2/12		2,500		2,500
California State School Cash Reserve Program Authority Revenue Notes, Series D, 2.00%, 2/1/13		3,000		3,023
California State School Cash Reserve Program Authority Revenue Senior Notes, Series A, 2.00%, 3/1/13		3,500		3,541
California Statewide Communities Development Authority COPS, Covenant Retirement Communities, (Bank of America N.A. LOC), 0.14%, 7/10/12		14,400		14,400
California Statewide Communities Development Authority Gas Supply Revenue VRDB, 0.17%, 7/10/12		7,000		7,000
California Statewide Communities Development Authority Multifamily Housing Revenue Refunding VRDB, Series C-2, (JPMorgan Chase Bank N.A. LOC), 0.26%, 7/10/12 (1)		10,000		10,000
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, (FHLB of San Francisco LOC), 0.19%, 7/10/12		8,500		8,500
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Broadway Studios Apartments, Series A, (FHLB of San Francisco LOC), 0.19%, 7/10/12		1,300		1,300
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Highlander Pointe Apartments, Series A, (FHLB of San Francisco LOC), 0.19%, 7/10/12		5,000		5,000
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Pine View Apartments, Series A, (Citibank N.A. LOC), 0.19%, 7/10/12		800		800

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 96.3% continued
California - 96.3% continued
California Statewide Communities Development Authority Multifamily Revenue VRDB, Varenna Assisted Living, Series F, (FHLB of San Francisco LOC), 0.16%, 7/10/12	$	8,785	$	8,785
California Statewide Communities Development Authority Revenue VRDB, Series L, 0.13%, 7/10/12		9,300		9,300
California Statewide Communities Development Authority Revenue VRDB, Development at Robert Louis Stevenson, (U.S. Bancorp LOC), 0.15%, 7/10/12		6,500		6,500
California Statewide Communities Development Authority Revenue VRDB, Series 2005, University of San Diego, (BNP Paribas LOC), 0.17%, 7/10/12		3,500		3,500
California Statewide Communities Development Authority Revenue VRDB, Sweep Loan Program, Series A, (Citibank N.A. LOC), 0.13%, 7/10/12		13,265		13,265
California Statewide Communities Development Corp. COPS VRDB, Covenant Retirement Communities, (Bank of America N.A. LOC), 0.14%, 7/10/12		12,600		12,600
Carlsbad California Multifamily Housing Revenue Refunding VRDB, Santa Fe Ranch Apartments Project, (FHLMC Insured), 0.20%, 7/10/12		15,920		15,920
Castaic Lake Water Agency California Revenue COPS VRDB, 1994 Refunding Project, Series A, (Wells Fargo Bank N.A. LOC), 0.15%, 7/10/12		4,500		4,500
Daly City California Housing Financing Agency Multifamily Revenue Refunding VRDB, Serramonte Del Ray, Series A, (FNMA Gtd.), 0.19%, 7/10/12		6,500		6,500
Deutsche Bank Spears/Lifers Trust, Goldman Sachs G.O., Series DB-461, (Deutsche Bank A.G. Gtd.), 0.23%, 7/10/12 (1)		7,010		7,010
Livermore California COPS VRDB, (U.S. Bank N.A. LOC), 0.15%, 7/10/12		160		160
Los Angeles California Community Redevelopment Agency Multifamily Housing Revenue Refunding VRDB, Grand Promenade Project, (FHLMC Gtd.), 0.19%, 7/10/12		14,650		14,650
Los Angeles California COPS VRDB, Kadima Hebrew Academy, Series A, (U.S. Bank N.A. LOC), 0.19%, 7/10/12		500		500
Los Angeles California Department of Water & Power Revenue VRDB, Power Systems, Subseries A-8, 0.15%, 7/10/12		2,000		2,000
Los Angeles California Department of Water & Power Waterworks Revenue VRDB, Subseries B-4, 0.15%, 7/10/12		4,925		4,925
Los Angeles California G.O. TRANS, Series A, 2.00%, 2/28/13		2,000		2,023
Los Angeles California Multifamily Revenue Refunding VRDB, Mountainback, Series B, (FHLMC LOC), 0.20%, 7/10/12		8,240		8,240
Nuveen California Dividend Advantage Municipal Fund VRDP, 0.38%, 7/10/12 (1)		10,000		10,000
Nuveen Insured California Dividend Advantage Municipal Fund VRDP, 0.42%, 7/10/12 (1)		10,000		10,000
Orange County California Apartment Development Revenue Refunding Bonds, Larkspur Canyon Apartments, Series A, (FNMA LOC), 0.15%, 7/10/12		7,435		7,435
Orange County California Housing Authority Apartment Development Revenue Refunding VRDB, Oasis Martinique, Series I, (FNMA Gtd.), 0.19%, 7/10/12		2,000		2,000

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 96.3% continued
California - 96.3% continued
Riverside County California COPS VRDB, Aces-Riverside County Public Facilities, Series B, (State Street Bank and Trust Co. LOC), 0.16%, 7/10/12	$	5,350	$	5,350
Series C, (State Street Bank and Trust Co. LOC), 0.16%, 7/10/12		1,300		1,300
Riverside County Multifamily Housing Authority Revenue Refunding VRDB, Tyler Springs Apartments, Series C, (FNMA Gtd.), 0.17%, 7/10/12		7,350		7,350
Sacramento California Municipal Utility District Revenue VRDB, Sub Series M, (U.S. Bank N.A. LOC), 0.17%, 7/10/12		11,900		11,900
Sacramento County California Housing Authority Multifamily Housing Revenue Refunding VRDB, Seasons of Winter, Series C-2, (FHLMC Gtd.), 0.19%, 7/10/12		7,000		7,000
Sacramento County California Multifamily Housing Authority Revenue Refunding VRDB, Ashford, Series D, (FNMA Insured), 0.14%, 7/10/12		6,000		6,000
Sacramento County Sanitation Districts Financing Authority Revenue Refunding VRDB, Series E, (U.S. Bank N.A. LOC), 0.18%, 7/10/12		7,900		7,900
Salinas California Economic Development Revenue VRDB, Monterey County Public Building, Series A, (Bank of New York Mellon Corp. LOC), 0.15%, 7/10/12		16,570		16,570
San Bernardino County California Multifamily Revenue Refunding VRDB, Housing Mortgage Mountain View, Series A, (FNMA LOC), 0.15%, 7/10/12		7,110		7,110
San Francisco California City & County Multifamily Housing Revenue Refunding VRDB, Post Street Towers, Series A, (FHLMC Insured), 0.14%, 7/10/12		4,000		4,000
San Francisco City & County Airports Commission International Airport Revenue Refunding VRDB, Series 37C, (Union Bank N.A. LOC), 0.17%, 7/10/12		10,000		10,000
Southern California Public Power Authority Revenue VRDB, Natural Gas Project, (Citibank N.A. LOC), 0.16%, 7/10/12		1,550		1,550
Southern California State Public Power Authority Revenue Refunding VRDB, Magnolia Power Project, (Wells Fargo Bank N.A. LOC), 0.18%, 7/10/12		4,990		4,990
Sunnyvale California COPS Refunding VRDB, Government Center Site, Series A, (Union Bank N.A. LOC), 0.17%, 7/10/12		2,800		2,800
Upland California Unified School District G.O. TRANS, 1.00%, 9/18/12		4,500		4,505
				382,602
Total Municipal Investments (Cost $382,602)				382,602
Total Investments - 96.3% (Cost $382,602)(2)				382,602
Other Assets less Liabilities - 3.7%				14,588
NET ASSETS - 100.0%			$	397,190

(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) The cost for federal income tax purposes was $382,602.

Percentages shown are based on Net Assets.

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

At June 30, 2012, the industry sectors for the California Municipal Money Market Fund were:

INDUSTRY SECTOR	% OF NET ASSETS
Air, Transportation, Water Services and Solid Waste Management		9.8	%
Educational Services		11.5
Electric Services, Power and Utility		6.1
Executive, Legislative and General Government		19.8
Health Services, Hospital and Residential Care		18.7
Urban and Community Development and Housing Programs		26.5
All other sectors less than 5%		7.6
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the California Municipal Money Market Fund’s investments, which are carried at amortized cost, which approximates fair value, as of June 30, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Investments held by California Municipal Money Market Fund	$	—	$	382,602	(1) (2)	$	—	$	382,602

(1) Classifications as defined in the Schedule of Investments.

(2) Investments held by the California Municipal Money Market Fund are carried at amortized cost and therefore are classified as Level 2. An investment in the California Municipal Money Market Fund itself may be categorized as Level 1, due to quoted market prices being available in active markets.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

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 either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

ABAG - Association of Bay Area Governments

COPS - Certificates of Participation

FHLB - Federal Home Loan Bank

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

G.O. - General Obligation

Gtd. - Guaranteed

IDA - Industrial Development Authority

LOC - Letter of Credit

TRANS - Tax and Revenue Anticipation Notes

VRDB - Variable Rate Demand Bonds

VRDP - Variable Rate Dividend Preferred

MONEY MARKET FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 1.1%
Auto Receivables - 1.1%
Bank of America Auto Trust, Series 2012-1, Class A1,
0.27%, 8/18/12	$	38,764	$	38,764
Honda Auto Receivables Owner Trust, Series 2012-2, Class A1,
0.30%, 8/25/12		41,731		41,731
Total Asset-Backed Securities (Cost $80,495)				80,495
CERTIFICATES OF DEPOSIT - 15.8%
Non-U.S. Depository Institutions - 15.8%
Australia and New Zealand Bank,
0.33%, 10/23/12		31,000		31,000
Bank of Nova Scotia, Houston,
0.32%, 7/1/12, FRCD		75,000		75,000
Bank of Tokyo - Mitsubishi UFJ Financial Group, Inc.,
0.37%, 7/5/12		50,260		50,260
0.37%, 7/13/12		27,515		27,515
Barclays Bank PLC, New York Branch,
0.28%, 7/23/12		35,000		35,000
Commonwealth Bank of Australia, London,
0.20%, 7/23/12		45,200		45,200
0.20%, 8/1/12		20,000		20,000
Credit Suisse, New York,
0.37%, 10/1/12		72,000		72,000
Deutsche Bank A.G.,
0.43%, 7/2/12		41,850		41,850
Deutsche Bank A.G., New York Branch,
0.43%, 7/9/12		7,730		7,730
Mitsubishi Trust & Banking Group,
0.38%, 7/5/12		27,165		27,165
National Australia Bank,
0.40%, 8/21/12		30,600		30,600
0.39%, 9/4/12		45,725		45,725
0.38%, 9/17/12		77,015		77,015
0.34%, 10/25/12		30,000		30,000
National Australia Bank, London,
0.34%, 10/23/12		22,000		22,000
Nordea Bank Finland PLC, New York,
0.30%, 10/1/12		31,082		31,082
Oversea-Chinese Banking Corp., New York,
0.26%, 7/13/12		15,720		15,720
Rabobank Nederland N.V., New York Branch,
0.28%, 7/2/12		55,065		55,065
Societe Generale, New York,
0.51%, 8/3/12		70,000		70,000
Sumitomo Mitsui Banking Group, New York,
0.35%, 8/3/12		46,000		46,000
Svenska Handelsbanken, New York,
0.24%, 8/3/12		50,000		50,000
0.30%, 10/3/12		47,000		47,000
Toronto Dominion Bank,
0.20%, 10/1/12		47,000		47,000
Toronto Dominion Bank, New York,
0.28%, 11/6/12		16,695		16,695
Westpac Banking Corp., New York,
0.28%, 7/1/12, FRCD		35,000		35,000
0.26%, 7/23/12, FRCD		70,000		70,000
Total Certificates of Deposit (Cost $1,121,622)				1,121,622
COMMERCIAL PAPER - 8.0%
Foreign Agencies - 0.2%
Oesterreich Kontrollbank,
0.30%, 9/7/12		9,855		9,849
0.30%, 9/11/12		2,185		2,184
				12,033
Foreign Agency and Regional Governments - 2.1%
Caisse Damortissement De La Dette,
0.45%, 7/11/12		32,475		32,471
KFW,
0.23%, 7/10/12		8,419		8,419
0.25%, 7/20/12		45,000		44,994
0.23%, 8/14/12		15,000		14,996
0.24%, 8/17/12		6,000		5,998
0.24%, 8/22/12		15,290		15,285
0.24%, 8/23/12		11,645		11,641
0.24%, 9/25/12		12,000		11,993
				145,797
Multi-Seller Conduits - 2.5%
Gotham Funding,
0.22%, 8/1/12		16,000		15,997
0.21%, 8/2/12		19,565		19,561

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
COMMERCIAL PAPER - 8.0% continued
Multi-Seller Conduits - 2.5% continued
Kells Funding LLC,
0.47%, 7/26/12	$	28,000	$	27,991
0.48%, 8/2/12		15,000		14,993
0.44%, 8/27/12		23,000		22,984
0.46%, 9/5/12		8,820		8,813
0.46%, 10/5/12		16,001		15,982
Nestle Capital Corp.,
0.39%, 5/20/13		32,875		32,760
Salisbury Receivables Co. LLC,
0.22%, 8/3/12		20,000		19,996
				179,077
Non-U.S. Depository Institutions - 1.8%
Australia and New Zealand Bank,
0.34%, 9/4/12		22,805		22,791
Bank of New Zealand International,
0.27%, 9/14/12		20,000		19,989
Commonwealth Bank of Australia,
0.34%, 9/6/12		11,400		11,393
ING U.S. Funding LLC,
0.38%, 7/9/12		47,225		47,221
Westpac Banking Corp.,
0.18%, 7/24/12		29,000		28,996
				130,390
Pharmaceuticals - 0.9%
Sanofi-Aventis S.A.,
0.19%, 9/13/12		16,000		15,994
0.20%, 9/14/12		24,000		23,990
0.20%, 9/20/12		23,650		23,639
				63,623
Supranational - 0.5%
European Investment Bank,
0.40%, 10/1/12		39,530		39,490
Total Commercial Paper (Cost $570,410)				570,410
CORPORATE NOTES/BONDS - 5.7%
Foreign Agencies - 1.0%
Kommunalbanken AS
0.32%, 7/1/12, FRN (1)		40,000		40,000
0.40%, 6/18/13(1)		13,500		13,500
0.32%, 7/1/12, FRN		16,000		16,000
				69,500
Foreign Agency and Regional Governments - 2.5%
Bank of Nederlandse Gemeenten,
0.62%, 8/25/12, FRN (1)		50,000		50,000
Export Development Canada,
0.30%, 7/1/12, FRN (1)		45,000		45,000
0.42%, 2/5/13(1)		47,235		47,235
Network Rail Infrastructure Finance PLC, Government Gtd.,
0.55%, 8/8/12, FRN (1)		12,250		12,250
0.52%, 10/12/12(1)		20,000		20,000
				174,485
Insurance Carriers - 0.2%
Berkshire Hathaway, Inc.,
0.90%, 8/13/12, FRN		15,000		15,058
Non-U.S. Depository Institutions - 0.1%
Australia and New Zealand Bank,
0.67%, 7/7/12, FRN (1)		6,360		6,360
Retailers - 0.7%
Wal-Mart Stores,
5.48%, 6/1/13, FRN		39,000		40,855
7.25%, 6/1/13		9,784		10,401
				51,256
Supranational - 1.2%
International Bank for Reconstruction & Development,
0.30%, 7/1/12, FRN		85,000		85,000
Total Corporate Notes/Bonds (Cost $401,659)				401,659
EURODOLL AR TIME DEPOSITS - 18.8%
Non-U.S. Depository Institutions - 17.7%
Bank of Tokyo - Mitsubishi, Grand Cayman,
0.25%, 7/5/12		200,000		200,000
Credit Agricole S.A., Paris Branch,
0.24%, 7/2/12		325,000		325,000
Den Norske Bank PLC, Oslo Branch,
0.15%, 7/2/12		345,000		345,000
HSBC Holdings PLC, Paris Branch,
0.22%, 7/2/12		200,000		200,000

MONEY MARKET FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
EURODOLLAR TIME DEPOSITS - 18.8% continued
Non-U.S. Depository Institutions - 17.7% continued
Societe Generale, Paris Branch,
0.24%, 7/2/12	$	185,000	$	185,000
				1,255,000
U.S. Depository Institutions - 1.1%
PNC Bank N.A., Nassau,
0.08%, 7/2/12		75,000		75,000
Total Eurodollar Time Deposits (Cost $1,330,000)				1,330,000
U.S. GOVERNMENT AGENCIES - 25.5%(2)
Federal Farm Credit Bank - 2.6%
FFCB FRN,
0.37%, 7/1/12		10,000		9,999
0.21%, 7/11/12		14,000		14,000
0.26%, 7/12/12		31,500		31,517
0.23%, 7/19/12		15,000		15,009
0.18%, 7/20/12		35,000		34,987
0.27%, 7/20/12		32,000		31,999
0.14%, 7/23/12		25,000		24,998
0.11%, 7/27/12		25,000		24,998
				187,507
Federal Home Loan Bank - 11.1%
FHLB Bonds,
0.16%, 8/17/12		33,200		33,201
0.35%, 10/3/12		5,250		5,250
0.30%, 12/11/12		20,000		20,000
0.17%, 2/11/13		19,055		19,052
0.25%, 2/28/13		25,000		25,000
0.20%, 6/7/13		65,000		64,975
0.24%, 6/14/13		24,000		23,997
0.30%, 6/21/13		35,000		35,000
0.25%, 7/1/13		20,000		19,993
0.30%, 7/3/13		20,000		20,000
FHLB Discount Notes,
0.13%, 8/22/12		55,000		54,990
0.11%, 8/31/12		30,000		29,994
0.12%, 8/31/12		33,000		32,994
FHLB FRN,
0.21%, 7/1/12		20,000		20,000
0.23%, 7/1/12		20,000		19,990
0.24%, 7/1/12		40,000		39,989
0.25%, 7/1/12		20,000		19,997
0.31%, 7/1/12		45,000		44,994
0.32%, 7/1/12		40,000		40,000
0.33%, 7/1/12		90,000		89,996
0.34%, 7/1/12		15,000		14,999
0.21%, 7/25/12		30,000		30,000
0.20%, 7/26/12		15,000		15,005
0.21%, 7/27/12		35,000		35,000
0.25%, 8/14/12		35,000		35,000
				789,416
Federal Home Loan Mortgage Corporation - 7.6%
FHLMC Discount Notes,
0.09%, 9/12/12		35,000		34,994
0.13%, 10/10/12		55,000		54,980
FHLMC FRN,
0.32%, 7/1/12		20,000		19,995
0.18%, 7/2/12		20,000		20,004
0.19%, 7/3/12		10,000		9,997
0.19%, 7/4/12		65,000		64,980
0.19%, 7/6/12		25,000		25,003
0.18%, 7/13/12		22,880		22,879
0.19%, 7/17/12		212,000		211,973
0.20%, 7/21/12		70,000		70,008
				534,813
Federal National Mortgage Association - 4.2%
FNMA FRN,
0.39%, 7/1/12		15,000		14,996
0.23%, 7/12/12		15,000		14,995
0.27%, 7/17/12		125,000		125,041
0.22%, 7/20/12		47,000		46,981
0.27%, 7/23/12		95,000		95,011
				297,024
Total U.S. Government Agencies (Cost $1,808,760)				1,808,760
U.S. GOVERNMENT OBLIGATIONS - 12.1%
U.S. Treasury Bills - 2.3%
0.06%, 7/12/12		30,000		29,999
0.14%, 8/16/12		1,525		1,525
0.09%, 8/23/12		65,000		64,992
0.15%, 9/20/12		25,000		24,991
0.15%, 11/15/12		20,000		19,989
0.20%, 3/7/13		20,000		19,973
				161,469

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT OBLIGATIONS - 12.1% continued
U.S. Treasury Notes - 9.8%
1.50%, 7/15/12	$	33,000	$	33,017
0.63%, 7/31/12		50,000		50,020
4.63%, 7/31/12		157,035		157,612
1.75%, 8/15/12		84,600		84,765
4.13%, 8/31/12		72,500		72,980
1.38%, 9/15/12		30,000		30,079
3.88%, 10/31/12		50,000		50,618
1.38%, 1/15/13		60,375		60,766
0.63%, 2/28/13		42,910		43,037
1.13%, 6/15/13		45,000		45,387
1.00%, 7/15/13		65,000		65,504
				693,785
Total U.S. Government Obligations (Cost $855,254)				855,254
Investments, at Amortized Cost ($6,168,200)				6,168,200
REPURCHASE AGREEMENTS - 15.8%
Joint Repurchase Agreements - 1.1%(3)
Bank of America Securities LLC, dated 6/29/12, repurchase price $16,579
0.14%, 7/2/12		16,579		16,579
Morgan Stanley & Co., Inc., dated 6/29/12, repurchase price $16,579
0.16%, 7/2/12		16,579		16,579
Societe Generale, New York Branch, dated 6/29/12, repurchase price $16,579
0.15%, 7/2/12		16,578		16,578
UBS Securities LLC, dated 6/29/12, repurchase price $24,868
0.13%, 7/2/12		24,868		24,868
				74,604
Repurchase Agreements - 14.7%(4)
Bank of America N.A., dated 6/29/12, repurchase price $260,004
0.18%, 7/2/12		260,000		260,000
Barclays Capital, Inc., dated 6/28/12, repurchase price $50,001
0.14%, 7/5/12		50,000		50,000
Credit Suisse Securities, dated 6/29/12, repurchase price $65,741
0.25%, 7/2/12		65,740		65,740
Merrill Lynch, dated 6/29/12, repurchase price $440,007
0.18%, 7/2/12		440,000		440,000
UBS Securities LLC, dated 6/21/12,repurchase price $75,013
0.20%, 7/23/12		75,000		75,000
UBS Securities LLC, dated 6/28/12,repurchase price $150,004
0.15%, 7/5/12		150,000		150,000
				1,040,740
Total Repurchase Agreements (Cost $1,115,344)				1,115,344
Total Investments - 102.8% (Cost $7,283,544)(5)				7,283,544
Liabilities less Other Assets - (2.8)%				(196,596	)
NET ASSETS - 100.0%			$	7,086,948

(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) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed FNMA and FHLMC in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed.

(3) The nature and terms of the collateral received for the joint repurchase agreements are as follows:

NAME	FAIR MARKET VALUE (000 S)		COUPON RATES	MATURITY DATES
U.S. Treasury Bonds	$	17,576	3.63% – 6.25%	8/15/23 – 5/15/37
U.S. Treasury Notes	$	58,113	0.63% – 3.13%	7/15/14 – 7/15/21

(4) The nature and terms of the collateral received for the repurchase agreements are as follows:

NAME	FAIR MARKET VALUE (000S)		COUPON RATES	MATURITY DATES
FHLMC	$	150,400	2.29% - 5.00%	12/1/24 - 7/1/42
FNMA	$	576,514	2.56% - 6.00%	1/1/26 - 4/1/51
GNMA	$	267,800	4.00% - 4.50%	7/20/41 - 8/20/41
U.S. Treasury Note	$	76,500	1.50%	6/30/16

(5) The cost for federal income tax purposes was $7,283,544.

Percentages shown are based on Net Assets.

MONEY MARKET FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Money Market Fund’s investments, which are carried at amortized cost, which approximates fair value, as of June 30, 2012.

	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL
	(000S)		(000S)			(000S)		(000S)
Investments held by Money Market Fund	$	—	$	7,283,544	(1)	$	—	$	7,283,544

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

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 either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities.

Interest rates are reset daily and interest is payable monthly with respect to all joint repurchase agreements.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

FFCB - Federal Farm Credit Bank

FHLB - Federal Home Loan Bank

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

FRCD - Floating Rate Certificates of Deposit

FRN - Floating Rate Notes

GNMA - Government National Mortgage Association

Gtd. - Guaranteed

NORTHERN FUNDS QUARTERLY REPORT    5    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6%
Alabama - 1.3%
Chatom Alabama IDB Gulf Opportunity Zone VRDB, Powersouth Energy Cooperative, (National Rural Utilities Cooperative Finance Corp. LOC), 0.33%, 7/10/12	$	20,000	$	20,000
Dothan Alabama Downtown Redevelopment Authority Revenue VRDB, Northside Mall Project, (Wells Fargo Bank N.A. LOC), 0.19%, 7/10/12		12,000		12,000
Eclipse Funding Trust Revenue VRDB, Solar Eclipse Mobile, Series 2006-0109 (U.S. Bank N.A. LOC), 0.16%, 7/2/12		6,970		6,970
Mobile Alabama IDB PCR VRDB, Alabama Power, 1st Series, 0.18%, 7/2/12		10,500		10,500
Washington County Alabama IDA Revenue VRDB, Bay Gas Storage Co. Ltd., Project, (UBS A.G. LOC), 0.18%, 7/10/12		9,165		9,165
West Jefferson IDB PCR Refunding VRDB, Series C, Alabama Power Co. Project, 0.20%, 7/10/12		24,000		24,000
				82,635
Alaska - 1.2%
Alaska State Housing Finance Corp. Revenue VRDB, Series C, Capital Project, 0.15%, 7/10/12		30,700		30,700
Valdez Alaska Marine Terminal Revenue Refunding VRDB, Series A, ConocoPhillips, 0.16%, 7/10/12		46,000		46,000
				76,700
Arizona - 1.3%
Apache County Arizona IDA PCR Refunding VRDB, Tucson Electric Power, Series A (U.S. Bancorp LOC), 0.17%, 7/10/12		25,425		25,425
Phoenix Arizona IDA Multifamily Housing Revenue Refunding VRDB, Southwest Village Apartments Project, (FNMA Gtd.), 0.20%, 7/10/12		9,700		9,700
Phoenix Arizona IDA Student Housing Revenue VRDB, (Wells Fargo & Co. Gtd.), 0.18%, 7/10/12(1)		16,450		16,450
Pima County Arizona IDA Multifamily Housing Revenue Refunding VRDB, Eastside Place Apartments Project, (FNMA LOC), 0.20%, 7/10/12		6,790		6,790
Salt River Project Arizona Agriculture Improvement & Power District Electrical Systems Revenue VRDB, Salt River Project, Series A, 0.18%, 7/10/12(1)		8,700		8,700
Tucson Arizona IDA VRDB, Family Housing Resource Projects, Series A (FNMA LOC), 0.18%, 7/10/12		16,620		16,620
				83,685
California - 6.1%
ABAG Finance Authority For Nonprofit Corp. California COPS VRDB, Episcopal Homes Foundation, (Wells Fargo Bank N.A. LOC), 0.12%, 7/10/12		6,100		6,100
California Infrastructure & Economic Development Bank Revenue Refunding VRDB, Pacific Gas & Electric, Series C, (Sumitomo Mitsui Banking Corp. LOC), 0.15%, 7/2/12		4,050		4,050
California School Cash Reserve Program Authority Revenue Notes, Series D, 2.00%, 2/1/13		42,000		42,315
California School Cash Reserve Program Authority Revenue Notes, Series C, 2.00%, 2/1/13		10,000		10,103
California Statewide Communities Development Authority Gas Supply Revenue VRDB, 0.17%, 7/10/12		57,400		57,400
California Statewide Communities Development Authority Multifamily Housing Revenue Refunding VRDB, Series C-2 (JPMorgan Chase Bank N.A. LOC), 0.26%, 7/10/12(1)		5,000		5,000

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
California - 6.1% continued
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Broadway Studios Apartments, Series A (FHLB of San Francisco LOC), 0.19%, 7/10/12	$	13,500	$	13,500
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Highlander Pointe Apartments, Series A (FHLB of San Francisco LOC), 0.19%, 7/10/12		5,000		5,000
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Pine View Apartments, Series A (Citibank N.A. LOC), 0.19%, 7/10/12		4,500		4,500
California Statewide Communities Development Authority Multifamily Revenue VRDB, Varenna Assisted Living, Series F (FHLB of San Francisco LOC), 0.16%, 7/10/12		100		100
California Statewide Communities Development Authority Revenue VRDB, (FHLB of San Francisco LOC), 0.19%, 7/10/12		7,000		7,000
California Statewide Communities Development Authority Revenue VRDB, American Baptist Homes West, (Bank of America N.A. LOC), 0.27%, 7/10/12		36,815		36,815
California Statewide Communities Development Authority Revenue VRDB, Series 2005, University of San Diego, (BNP Paribas LOC), 0.17%, 7/10/12		6,100		6,100
California Statewide Communities Development Corp. COPS VRDB, Covenant Retirement Communities, (Bank of America N.A. LOC), 0.14%, 7/10/12		500		500
City of Los Angeles G.O. TRANS, Series A, 2.00%, 2/28/13		20,000		20,230
Corona California Multifamily Housing Revenue Refunding VRDB, Country Hills Project, (FHLMC Gtd.), 0.19%, 7/10/12		6,955		6,955
County of Santa Clara California Multifamily Housing Revenue Refunding VRDB, Briarwood Apartments, (FNMA LOC), 0.18%, 7/10/12		4,200		4,200
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, G.O., Series DB-458, (Deutsche Bank A.G. Gtd.), 0.23%, 7/10/12(1)		11,510		11,510
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, G.O., Series DB-461, (Deutsche Bank A.G. Gtd.), 0.23%, 7/10/12(1)		5,000		5,000
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Series 637 (Deutsche Bank A.G. LOC), 0.28%, 7/10/12(1)		13,988		13,988
Foothill De Anza California Community College District G.O., (Wells Fargo & Co. Gtd.), 0.18%, 7/10/12(1)		21,240		21,240
Fresno California Multifamily Housing Revenue Refunding VRDB, Series A (FNMA LOC), 0.19%, 7/10/12		18,400		18,400
Livermore California COPS VRDB, (U.S. Bank N.A. LOC), 0.15%, 7/10/12		2,200		2,200
Los Angeles California COPS VRDB, Kadima Hebrew Academy, Series A (U.S. Bank N.A. LOC), 0.19%, 7/10/12		1,300		1,300
Los Angeles California Department of Water & Power Revenue VRDB, Power Systems, Series A-2 0.15%, 7/10/12		19,600		19,600
Los Angeles California Department of Water & Power Revenue VRDB, Power Systems, Series A-8 0.15%, 7/10/12		9,930		9,930
Orange County California Housing Authority Apartment Development Revenue Refunding VRDB, Oasis Martinique, Series I (FNMA Gtd.), 0.19%, 7/10/12		8,160		8,160

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
California - 6.1% continued
Riverside County California COPS VRDB, Aces-Riverside County Public Facilities, Series B (State Street Bank and Trust Co. LOC), 0.16%, 7/10/12	$	1,000	$	1,000
Sacramento California Municipal Utility District Revenue VRDB, Subseries M (U.S. Bank N.A. LOC), 0.17%, 7/10/12		1,200		1,200
Southern California State Public Power Authority Revenue Refunding VRDB, Magnolia Power Project, (Wells Fargo Bank N.A. LOC), 0.18%, 7/10/12		24,965		24,965
Tahoe Forest California Hospital District Revenue VRDB, Health Facilities, (U.S. Bank N.A. LOC), 0.15%, 7/2/12		2,455		2,455
Western Municipal California Water District Facilities Authority Revenue Refunding Bonds, Series A, (Union Bank N.A. LOC), 0.16%, 7/10/12		10,000		10,000
				380,816
Colorado - 2.0%
Arapahoe County Colorado Multifamily Housing Revenue Refunding VRDB, Hunters Run, (FHLMC LOC), 0.17%, 7/10/12		9,330		9,330
Colorado Educational & Cultural Facilities Authority Revenue Bonds, Fremont Christian School Project, (U.S. Bank N.A. LOC), 0.16%, 7/10/12		6,610		6,610
Colorado Educational & Cultural Facilities Authority Revenue Refunding VRDB, Nampa Christian Schools, (U.S. Bank N.A. LOC), 0.17%, 7/10/12		4,370		4,370
Colorado Educational & Cultural Facilities Authority Revenue VRDB, Bear Creek School Project, (U.S. Bank N.A. LOC), 0.16%, 7/10/12		660		660
Colorado Educational & Cultural Facilities Authority Revenue VRDB, Bethany Lutheran School Project, Series A-2 (U.S. Bank N.A. LOC), 0.16%, 7/10/12		3,435		3,435
Colorado Educational & Cultural Facilities Authority Revenue VRDB, Cole Valley Christian Schools, (U.S. Bank N.A. LOC), 0.16%, 7/10/12		4,675		4,675
Colorado Health Facilities Authority Revenue VRDB, Frasier Meadows Manor Project, (JPMorgan Chase Bank N.A. LOC), 0.16%, 7/10/12		11,555		11,555
Colorado Health Facilities Authority Revenue VRDB, Senior Living Facilities Eaton Terrace, Series A (U.S. Bank N.A. LOC), 0.15%, 7/10/12		3,185		3,185
Colorado Housing & Finance Authority Revenue VRDB, SFM, Series A3 0.18%, 7/10/12		10,650		10,650
Colorado Springs Colorado Utilities Revenue VRDB, Systems Improvement, Series A 0.18%, 7/10/12		19,670		19,670
Fitzsimons Redevelopment Authority Colorado Revenue VRDB, University Physicians, Inc., (U.S. Bancorp LOC), 0.17%, 7/10/12		12,725		12,725
University of Colorado Hospital Authority Revenue VRDB, Series A, (Wells Fargo Bank N.A. LOC), 0.17%, 7/10/12		36,485		36,485
				123,350
Connecticut - 0.3%
Connecticut State Health & Educational Facility Authority Variable Rate Demand Obligation, 0.15%, 7/12/12		21,100		21,100
District of Columbia - 0.2%
District of Columbia Revenue VRDB, D.C. Preparatory Academy, (M&T Bank Corp. LOC), 0.25%, 7/10/12		4,835		4,835

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
District of Columbia - 0.2% continued
District of Columbia Revenue VRDB, Henry J. Kaiser Foundation, 0.19%, 7/10/12	$	10,100	$	10,100
				14,935
Florida - 9.0%
Atlantic Beach Florida Health Care Facilities Revenue VRDB, Fleet Landing Project, (Wachovia Bank N.A. LOC), 0.28%, 7/10/12		7,385		7,385
Broward County Florida Revenue VRDB, Maimonides Shalom Academy, (Comerica LOC), 0.19%, 7/10/12		9,285		9,285
Capital Trust Agency Florida Housing Revenue VRDB, Atlantic Housing Foundation, Series A (FNMA LOC), 0.18%, 7/10/12		10,700		10,700
Citizens Property Insurance Corp. Revenue Bonds, Series A-2, Senior Secured Notes, 2.50%, 6/1/13		37,750		38,411
Collier County Florida Health Facilities Authority Revenue VRDB, Moorings, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.20%, 7/10/12		18,500		18,500
Collier County Florida Health Facilities Authority Revenue VRDB, The Moorings, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.20%, 7/10/12		11,870		11,870
0.20%, 7/10/12		22,220		22,220
County of Palm Beach Florida Revenue VRDB, Morse Obligation Group, (Key Bank N.A. LOC), 0.14%, 7/10/12		5,800		5,800
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Revenue VRDB, Series DB-487 (Deutsche Bank A.G. LOC), 0.23%, 7/10/12(1)		14,040		14,040
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Revenue VRDB, Series DBE-538, (Deutsche Bank A.G. Gtd.), 0.23%, 7/10/12(1)		15,315		15,315
Eclipse Funding Trust Revenue Bonds, 2007-0045 Solar Eclipse Miami, (U.S. Bank N.A. LOC), 0.16%, 7/2/12(1)		7,400		7,400
Eclipse Funding Trust, COPS, Series 2007-0035, Solar Eclipse, South, (U.S. Bank N.A. LOC), 0.17%, 7/10/12(1)		35,000		35,000
Eclipse Funding Trust, Florida, Revenue Bonds, Series 2006-0043, Solar Eclipse Certificates, (U.S. Bank N.A. LOC), 0.17%, 7/10/12(1)		5,000		5,000
Escambia County Florida Health Facilities Authority Revenue Refunding VRDB, Azalea Trace, Inc., Series B (Bank of America N.A. LOC), 0.13%, 7/2/12		15,280		15,280
Florida Gulf Coast University Financing Corp. Revenue Bonds, Series A, Capital Improvement Housing Project, (Wachovia Bank N.A. LOC), 0.17%, 7/10/12		3,545		3,545
Florida Housing Finance Agency Revenue VRDB, (FNMA Insured), 0.18%, 7/10/12		8,500		8,500
Florida Housing Finance Corp. Multifamily Housing Revenue Refunding VRDB, Island Club Apartments, Series J-A (FHLMC Gtd.), 0.17%, 7/10/12		5,940		5,940
Florida Housing Finance Corp. Multifamily Revenue VRDB, Mortgage Monterey Lake, Series C (FHLMC LOC), 0.17%, 7/10/12		5,815		5,815
Florida State Board of Education Public Education G.O. Refunding Bonds, Capital Outlay, Series A 0.18%, 7/10/12(1)		7,000		7,000
Highlands County Florida Health Facilities Authority Revenue VRDB, Series E-1-A (U.S. Bank N.A. LOC), 0.16%, 7/10/12		10,550		10,550
Highlands County Florida Health Facilities Authority Revenue VRDB, Hospital Adventist Health Systems, Series B (Harris Bankcorp, Inc. LOC), 0.16%, 7/10/12		18,945		18,945
Series I
0.14%, 7/10/12		10,000		10,000

MONEY MARKET FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Florida - 9.0% continued
Highlands County Health Facilities Authority Revenue VRDB, Hospital Adventist Health (Bank of America N.A. LOC), 0.29%, 7/10/12	$	43,625	$	43,625
Jacksonville Florida Transportation Revenue VRDB, Series B (Wachovia Bank N.A. LOC), 0.18%, 7/10/12		47,200		47,200
JEA Electric System Revenue VRDB, Series A, (Bank of Montreal LOC), 0.16%, 7/10/12		11,000		11,000
JEA Electric Variable Rate Demand Obligation, 0.17%, 7/5/12		16,000		16,000
0.20%, 7/19/12		18,750		18,750
JEA Florida Water & Sewer Systems Revenue VRDB, Sub-Series B-1 0.16%, 7/10/12		9,300		9,300
Miami-Dade County Florida Educational Facilities Authority Revenue Bonds, (Wells Fargo Bank N.A. LOC), 0.18%, 7/10/12(1)		15,100		15,100
Orange County Florida Health Facilities Authority Revenue VRDB, Adventist Long Term Care, (PNC Bancorp, Inc. LOC), 0.16%, 7/10/12		4,075		4,075
Orange County Florida Health Facilities Authority Revenue VRDB, Hospital Orlando Regional, Series E (Branch Banking and Trust Co. LOC), 0.18%, 7/10/12		4,500		4,500
Orange County Florida Housing Financial Authority Multifamily Housing Revenue Refunding Bonds, Post Lake Apartments Project, (FNMA Insured), 0.18%, 7/10/12		28,000		28,000
Orange County Florida Multifamily Housing Finance Authority Revenue Refunding VRDB, Heather Glen, Series E (FNMA Insured), 0.20%, 7/10/12		10,000		10,000
Orlando-Orange County Expressway Authority Revenue Refunding VRDB, Subseries B-1 (Bank of Montreal LOC), 0.16%, 7/10/12		26,500		26,500
Sunshine State Governmental Financing Commission Florida Revenue VRDB, Miami Dade County Program, (JPMorgan Chase Bank N.A. LOC), 0.18%, 7/10/12		35,000		35,000
Sunshine State Governmental Financing Community Florida Revenue VRDB, Miami-Dade County Program, (JPMorgan Chase Bank N.A. LOC), 0.18%, 7/10/12		5,430		5,430
				560,981
Georgia - 2.8%
Clayton County Georgia Multifamily Housing Authority Revenue VRDB, Rivers Edge Development, (FHLMC Gtd.), 0.18%, 7/10/12		3,960		3,960
DeKalb County Georgia Housing Authority Multifamily Housing Revenue VRDB, Post Brook Project, (FNMA Gtd.), 0.18%, 7/10/12		4,300		4,300
DeKalb County Georgia Housing Authority Multifamily Housing Revenue VRDB, Post Walk Project, 0.18%, 7/10/12		14,900		14,900
DeKalb County Georgia Multifamily Housing Authority Revenue VRDB, Highland Place Apartments Project, (FHLMC LOC), 0.18%, 7/10/12		4,200		4,200
Eclipse Funding Trust Solar Eclipse Atlanta Revenue Bonds, Series 2006-0024, (U.S. Bank N.A. LOC), 0.17%, 7/10/12(1)		23,885		23,885
Fulton County Georgia Development Authority Revenue Bonds, Alfred and Adele Davis, (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12		10,925		10,925

NORTHERN FUNDS QUARTERLY REPORT    5    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Georgia - 2.8% continued
Fulton County Georgia Residential Care Facilities for the Elderly Authority Revenue VRDB, First Mortgage, Lenbrook Project, Series C, (Bank of Scotland PLC LOC), 0.19%, 7/10/12	$	2,845	$	2,845
Gainesville & Hall County Development Authority Revenue VRDB, Senior Living Facilities, Lanier Village, Series B (TD Banknorth, Inc. LOC), 0.13%, 7/2/12		2,305		2,305
Gwinnett County Development Authority Revenue VRDB, NIHAN Hospitality LLC Series E (U.S. Bank N.A. LOC), 0.15%, 7/10/12		4,800		4,800
Gwinnett County Georgia Housing Authority Multifamily Housing Revenue VRDB, Post Corners Project, (FNMA Gtd.), 0.18%, 7/10/12		7,360		7,360
Main Street National Gas, Inc. Georgia Gas Project Revenue VRDB, Series A 0.18%, 7/10/12		54,900		54,900
Marietta Georgia Multifamily Housing Authority Revenue Refunding Bonds, Wood Glen, (FHLMC Insured), 0.20%, 7/10/12		6,000		6,000
Richmond County Georgia Development Authority Revenue Bonds, Series B, MCG Health, Inc. Project, (Branch Banking and Trust Co. LOC), 0.20%, 7/10/12		12,200		12,200
Roswell Multifamily Housing Authority Revenue Refunding VRDB, Azalea Park Apartments, (FNMA Insured), 0.18%, 7/10/12		5,400		5,400
Smyrna Georgia Multifamily Housing Authority Revenue VRDB, Gardens Post Village Project, (FNMA Gtd.), 0.18%, 7/10/12		11,200		11,200
Smyrna Georgia Multifamily Housing Authority Revenue VRDB, Hills of Post Village Project, Series B (FNMA Gtd.), 0.18%, 7/10/12		4,400		4,400
				173,580
Idaho - 0.3%
Idaho Health Facilities Authority Revenue VRDB, St. Lukes Health Systems Project, Series B (Harris Bankcorp, Inc. LOC), 0.18%, 7/10/12		12,400		12,400
Idaho Health Facilities Authority Revenue VRDB, St. Lukes Health Systems Project, Series A, (Wells Fargo Bank N.A. LOC), 0.18%, 7/10/12		8,100		8,100
				20,500
Illinois - 4.4%
BB&T Municipal Trust G.O. Revenue VRDB, (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12(1)		16,620		16,620
Chicago Illinois Water Revenue VRDB, Subseries 04-3 (State Street Bank and Trust Co. LOC), 0.17%, 7/10/12		3,160		3,160
County of DuPage Illinois Educational Facilities Revenue VRDB, Benedictine University, Series B (U.S. Bank N.A. LOC), 0.16%, 7/10/12		2,357		2,357
County of DuPage Illinois Educational Facilities Revenue VRDB, Benedictine University, Series A (U.S. Bank N.A. LOC), 0.16%, 7/10/12		3,716		3,716
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Spears G.O., (Deutsche Bank A.G. Gtd.), 0.19%, 7/10/12(1)		7,805		7,805
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Spears Revenue Bonds, Series DBE-660 (Deutsche Bank A.G. Gtd.), 0.25%, 7/10/12(1)		9,136		9,136

MONEY MARKET FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Illinois - 4.4% - continued
Illinois Development Finance Authority IDR VRDB, Institution Gas Technology Project, (Harris Bankcorp, Inc. LOC), 0.19%, 7/10/12	$	1,200	$	1,200
Illinois Development Finance Authority Revenue VRDB, Jewish Council Youth Services, Series B (Harris Bankcorp, Inc. LOC), 0.19%, 7/10/12		2,640		2,640
Illinois Development Finance Authority Revenue VRDB, Little City Foundation, (JPMorgan Chase Bank N.A. LOC), 0.19%, 7/10/12		3,420		3,420
Illinois Development Finance Authority Revenue VRDB, North Shore Senior Center Project, (JPMorgan Chase Bank N.A. LOC), 0.19%, 7/10/12		7,000		7,000
Illinois Development Finance Authority Revenue VRDB, Wheaton Academy Project, (Harris Bankcorp, Inc. LOC), 0.21%, 7/10/12		9,000		9,000
Illinois Educational Facilities Authority Revenue VRDB, Aurora University, (Harris Bankcorp, Inc. LOC), 0.18%, 7/10/12		13,200		13,200
Illinois Educational Facilities Authority Revenue VRDB, Benedictine University Project, Series A (U.S. Bank N.A. LOC), 0.16%, 7/10/12		10,150		10,150
Illinois Educational Facilities Authority Revenue VRDB, The Adler Planetarium, (FHLB of Boston LOC), 0.16%, 7/10/12		6,000		6,000
Illinois Educational Facilities Authority Student Housing Revenue VRDB, IIT State, Series A, (Harris Bankcorp, Inc. LOC), 0.21%, 7/10/12		19,140		19,140
Illinois Finance Authority Revenue VRDB, All Saints Catholic, Series A (Harris Bankcorp, Inc. LOC), 0.19%, 7/10/12		8,800		8,800
Illinois Finance Authority Revenue VRDB, Benedictine University Project, (U.S. Bank N.A. LOC), 0.16%, 7/10/12		5,460		5,460
Illinois Finance Authority Revenue VRDB, Community Action Partnership, (Citibank N.A. LOC), 0.21%, 7/10/12		5,160		5,160
Illinois Finance Authority Revenue VRDB, IIT Research Institute, (JPMorgan Chase Bank N.A. LOC), 0.17%, 7/10/12		1,900		1,900
Illinois Finance Authority Revenue VRDB, Landing at Plymouth Place, Series C (Bank of America N.A. LOC), 0.29%, 7/10/12		9,870		9,870
Illinois Finance Authority Revenue VRDB, Nazareth Academy Project, (Harris Bankcorp, Inc. LOC), 0.18%, 7/10/12		5,000		5,000
Illinois Finance Authority Revenue VRDB, Robert Morris College, (JPMorgan Chase Bank N.A. LOC), 0.18%, 7/10/12		8,130		8,130
Illinois Multifamily Housing Development Authority Revenue VRDB, Alden Gardens Bloomingdale, (Harris Bankcorp, Inc. LOC), 0.19%, 7/10/12		6,805		6,805
Illinois State Toll Highway Authority Revenue VRDB, Senior Priority, Series A-1A (Citibank N.A. LOC), 0.20%, 7/10/12		30,700		30,700
Kane County Illinois Revenue Bonds, Glenwood School For Boys, (Harris Bankcorp, Inc. LOC), 0.18%, 7/10/12		5,700		5,700
Lisle Illinois Multifamily Housing Revenue Bonds, Ashley of Lisle Project, (FHLMC LOC), 0.20%, 7/10/12		26,525		26,525
Quad Cities Regional EDA Illinois Revenue Bonds, Augustana College, (Harris Bankcorp, Inc. LOC), 0.18%, 7/10/12		14,400		14,400
University of Illinois Revenue Refunding VRDB, UIC South Campus Development, (JPMorgan Chase Bank N.A. LOC), 0.17%, 7/10/12		9,400		9,400
University of Illinois Revenue VRDB, Auxiliary Facilities Systems, 0.18%, 7/10/12		7,715		7,715

NORTHERN FUNDS QUARTERLY REPORT    7    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Illinois - 4.4% continued
Wells Fargo Stage Trust Revenue Bonds, Floater Certificates, Series 2C, 0.19%, 7/10/12(1)	$	13,075	$	13,075
				273,184
Indiana - 1.6%
County of Tippecanoe Indiana Revenue VRDB, Faith Property, Inc. Project, 0.16%, 7/10/12		5,560		5,560
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Spears Revenue Bonds, (Deutsche Bank A.G. Gtd.), 0.31%, 7/10/12(1)		9,250		9,250
Series DBE-549, 0.23%, 7/10/12(1)		5,690		5,690
East Porter County Indiana School Building Corp. Revenue Bonds, Series DB-145, (Deutsche Bank A.G. Insured), 0.28%, 7/10/12(1) (2)		5,615		5,615
Eclipse Funding Trust Revenue Bonds, (U.S. Bank N.A. LOC), 0.17%, 7/10/12(1)		9,415		9,415
Indiana Finance Authority Environmental Revenue Refunding VRDB, Series A3, Duke Energy Industry Project, (Mizuho Corporate Bank Ltd. LOC), 0.20%, 7/10/12		15,425		15,425
Indiana Finance Authority Hospital Revenue VRDB, Community Foundation Northwest Indiana, (Harris Bankcorp, Inc. LOC), 0.14%, 7/10/12		6,100		6,100
Indiana Finance Authority Revenue VRDB, Series E4, Ascension Health, 0.16%, 7/10/12		5,000		5,000
Indiana Health & Educational Facilities Financing Authority Revenue Refunding VRDB, Community Village Hartsfield, Series A (Harris Bankcorp, Inc. LOC), 0.14%, 7/10/12		6,630		6,630
Indiana Municipal Power Agency Power Supply Systems Revenue Bonds, Series A (Berkshire Hathaway, Inc. Insured), 0.22%, 7/10/12(1)		15,260		15,260
Indiana Municipal Power Agency Revenue VRDB, ROCS-RR-II-R-592PB, 0.20%, 7/10/12(1)		15,490		15,490
Indianapolis Indiana Economic Development Revenue VRDB, Brookhaven County Line Project, (FNMA Gtd.), 0.17%, 7/10/12		2,400		2,400
				101,835
Iowa - 0.3%
Iowa Finance Authority Economic Development Revenue VRDB, Iowa West Foundation Project, (U.S. Bank N.A. LOC), 0.18%, 7/10/12		2,645		2,645
Iowa Finance Authority Private College Revenue VRDB, Morningside College Project, (U.S. Bank N.A. LOC), 0.17%, 7/2/12		3,000		3,000
Iowa Higher Education Loan Authority Revenue VRDB, Private College, (Bank of America N.A. LOC), 0.25%, 7/2/12		2,500		2,500
Urbandale Iowa IDR VRDB, Aurora Bus Park, 0.20%, 7/10/12		8,700		8,700
				16,845
Kansas - 0.2%
Kansas State Development Finance Authority Hospital Revenue VRDB, Series C, Adventist Health-Sunbelt, (JPMorgan Chase Bank N.A. LOC), 0.15%, 7/10/12		12,625		12,625
Kentucky - 1.3%
Boyle County Kentucky Hospital Revenue VRDB, Ephraim McDowell Health Project, (Branch Banking and Trust Co. LOC), 0.18%, 7/10/12		13,600		13,600
Fort Mitchell Kentucky League of Cities Funding Trust Lease Program VRDB, Series A (U.S. Bank N.A. LOC), 0.17%, 7/10/12		11,100		11,100
Henderson County Kentucky Revenue Refunding VRDB, Murray-Calloway County Hospital, (Branch Banking and Trust Co. LOC), 0.23%, 7/10/12		1,115		1,115

MONEY MARKET FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Kentucky - 1.3% continued
Kentucky Economic Development Finance Authority Revenue Refunding VRDB, Retirement Housing Foundation, Series B (KBC Groep N.V. LOC), 0.16%, 7/10/12	$	7,705	$	7,705
Kentucky Economic Development Financial Authority Hospital Facilities Revenue VRDB, Baptist Healthcare Systems, Series B-4 (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12		11,000		11,000
Kentucky Economic Development Financial Authority Medical Center Revenue VRDB, Ashland Hospital Corp., Series A (Branch Banking and Trust Co. LOC), 0.18%, 7/10/12		5,700		5,700
Kentucky Economic Development Financial Authority Revenue Refunding VRDB, Retirement Housing Foundation, Series A-1A (KBC Groep N.V. LOC), 0.16%, 7/10/12		8,030		8,030
Kentucky State Rural Water Finance Corp. Public Project Revenue Construction Notes, 1.25%, 11/1/12		14,750		14,785
Morehead Kentucky League of Cities Funding Trust Lease Program Revenue VRDB, Series A, (U.S. Bank N.A. LOC), 0.17%, 7/10/12		7,542		7,542
				80,577
Louisiana - 1.0%
Eclipse Funding Trust Revenue VRDB, Solar Eclipse, 2007-0059 (U.S. Bank N.A. LOC), 0.16%, 7/2/12(1)		19,505		19,505
Louisiana State Offshore Terminal Authority Deepwater Port Revenue Refunding VRDB, Series B (JPMorgan Chase Bank N.A. LOC), 0.18%, 7/10/12		5,700		5,700
St. James Parish Louisiana Revenue VRDB, Nucor Steel LLC Project, Series B-1 0.18%, 7/10/12		38,000		38,000
				63,205
Maryland - 3.3%
Anne Arundel County Maryland Revenue VRDB, Key School Facility, Series A (M&T Bank Corp. LOC), 0.25%, 7/10/12(1)		8,870		8,870
Baltimore County Maryland Revenue VRDB, Maryvale Prep School Facility, Series A (M&T Bank Corp. LOC), 0.25%, 7/10/12		3,795		3,795
Baltimore County Maryland Revenue VRDB, Notre Dame Preparatory School, (M&T Bank Corp. LOC), 0.25%, 7/10/12		4,130		4,130
Eclipse Funding Trust Revenue Bonds, 2006-0154, Solar Eclipse, Maryland, (U.S. Bank N.A. LOC), 0.14%, 7/10/12(1)		27,970		27,970
Maryland State Community Development Administration Department Housing & Community Development Revenue VRDB, Series A, Multifamily Housing Development, (FHLMC Insured), 0.17%, 7/10/12		16,950		16,950
Maryland State Economic Development Corp. Revenue Refunding Bonds, Jenkins Memorial, Inc., (M&T Bank Corp. LOC), 0.19%, 7/10/12		2,420		2,420
Maryland State Economic Development Corp. Revenue VRDB, Opportunity Builders Facility, (M&T Bank Corp. LOC), 0.25%, 7/10/12		5,680		5,680
Maryland State Health & Higher Educational Facilities Authority Revenue VRDB, Adventist Healthcare, Series A (Bank of America N.A. LOC), 0.16%, 7/10/12		48,000		48,000
Maryland State Health & Higher Educational Facilities Authority Revenue VRDB, Frederick Memorial Hospital, (Branch Banking and Trust Co. LOC), 0.18%, 7/10/12		60,875		60,875
Prince Georges County Maryland Revenue Refunding VRDB, Collington Episcopal, Series A (Bank of America N.A. LOC), 0.29%, 7/10/12		26,350		26, 350
				205,040

NORTHERN FUNDS QUARTERLY REPORT    9    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Massachusetts - 2.3%
BB&T Municipal Trust Revenue Bonds, Series A (Branch Banking and Trust Co. LOC), 0.17%, 7/10/12(1)	$	16,355	$	16,355
Massachusetts Development Finance Agency Revenue VRDB, Series A, Masonic Nursing Home, (M&T Bank Corp. LOC), 0.22%, 7/10/12		9,775		9,775
Massachusetts State Development Finance Agency Revenue VRDB, Abby Kelley Foster Public School, (TD Banknorth, Inc. LOC), 0.18%, 7/10/12		4,500		4,500
Massachusetts State Development Finance Agency Revenue VRDB, Credit-Wilber School Apartments, Series A (FHLB of Atlanta LOC), 0.18%, 7/10/12		5,350		5,350
Massachusetts State Development Finance Agency Revenue VRDB, Groton School, 0.17%, 7/10/12		9,500		9,500
Massachusetts State Development Finance Agency Revenue VRDB, Northfield, Mount Hermon, (JPMorgan Chase Bank N.A. LOC), 0.19%, 7/10/12		63,855		63,855
Massachusetts State Development Finance Agency Revenue VRDB, Phillips Academy, 0.15%, 7/10/12		10,600		10,600
Massachusetts State Development Finance Agency Revenue VRDB, Seven Hills Foundation, Series A (TD Banknorth, Inc. LOC), 0.16%, 7/10/12		3,900		3,900
RBC Municipal Products, Inc. Trust G.O. Floater Certificates, Series E-32, (Royal Bank of Canada LOC), 0.16%, 7/10/12(1) (2)		20,000		20,000
				143,835
Michigan - 1.4%
Ann Arbor Michigan Economic Development Corp. Limited Obligation Revenue VRDB, Glacier Hills, Inc. Project, Series A (JPMorgan Chase Bank N.A. LOC), 0.16%, 7/10/12		11,785		11,785
Ann Arbor Michigan Economic Development Corp. Limited Obligations Revenue Refunding Bonds, Glacier Hills, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.16%, 7/10/12		4,120		4,120
Michigan Finance Higher Education Facilities Authority Limited Obligation Revenue VRDB, University, (JPMorgan Chase Bank N.A. LOC), 0.19%, 7/10/12		8,000		8,000
Michigan State Higher Educational Facilities Authority Revenue Refunding VRDB, Calvin, (JPMorgan Chase Bank N.A. LOC), 0.19%, 7/10/12		20,000		20,000
Michigan State Hospital Finance Authority Revenue Refunding VRDB, McLaren Health Care, Series B (JPMorgan Chase Bank N.A. LOC), 0.18%, 7/10/12		7,500		7,500
Michigan State Strategic Fund Limited Obligation Revenue VRDB, YMCA Metropolitan Detroit Project, (JPMorgan Chase Bank N.A. LOC), 0.19%, 7/10/12		4,325		4,325
Michigan State Strategic Fund Ltd. Obligation Revenue Bonds, Lansing St. Vincent Home Project, (Comerica Insured), 0.16%, 7/10/12		5,430		5,430
Michigan State Strategic Fund Ltd. Obligation Revenue Refunding VRDB, Consumers Energy Co., (Wells Fargo Bank N.A. LOC), 0.15%, 7/10/12		16,000		16,000
Michigan State University Revenue VRDB, 0.16%, 7/10/12		1,000		1,000
Michigan Strategic Fund Limited Obligation Revenue VRDB, Tubelite, Inc. Project, (Comerica LOC), 0.19%, 7/10/12		10,000		10,000
				88,160

MONEY MARKET FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Minnesota - 2.1%
Center City Minnesota Health Care Facilities Revenue VRDB, Hazelden Foundation Project, (U.S. Bank N.A. LOC), 0.20%, 7/10/12	$	6,800	$	6,800
Center City Minnesota Health Care Facilities Revenue VRDB, Hazelden Foundation Project, Series 2002, (U.S. Bancorp LOC), 0.20%, 7/10/12		4,100		4,100
City of Edina Minnesota Multifamily Housing Revenue Refunding VRDB, Vernon Terrace Apartments Project, (FHLMC LOC), 0.17%, 7/10/12		5,705		5,705
Fridley Minnesota Senior Housing Refunding VRDB, Banfill Crossing, Series A (FNMA Insured), 0.19%, 7/10/12		8,190		8,190
Minneapolis Minnesota Revenue VRDB, People Serving People Project, Series B (U.S. Bank N.A. LOC), 0.17%, 7/2/12		1,665		1,665
Minneapolis Minnesota Student Residence Revenue VRDB, Riverton Community Housing Project, (Bank of America N.A. LOC), 0.21%, 7/10/12		6,655		6,655
Minnesota Higher Education Facilities Authority Revenue VRDB, Series Five-Z, University of St. Thomas, (U.S. Bank N.A. LOC), 0.18%, 7/10/12		1,150		1,150
Minnesota Higher Education Facilities Authority Revenue VRDB, Series Five-Z, University of St. Thomas, Minnesota, (U.S. Bank N.A. LOC), 0.15%, 7/10/12		10,450		10,450
Minnesota Higher Education Facilities Authority Revenue VRDB, University of St. Thomas, (U.S. Bank N.A. LOC), 0.19%, 7/10/12		3,090		3,090
Minnesota Rural Water Finance Authority, Inc. Revenue Notes, Public Projects Construction Notes, 1.25%, 3/1/13		7,000		7,039
Minnesota State G.O. Refunding VRDB, 0.21%, 7/10/12(1)		25,900		25,900
RBC Municipal Products, Inc. Trust Revenue VRDB, Series E-19 (Royal Bank of Canada LOC), 0.18%, 7/10/12(1)		30,000		30,000
St. Paul Minnesota Housing & Redevelopment Authority Revenue Bonds, Science Museum of Minnesota, Series A (U.S. Bank N.A. LOC), 0.16%, 7/10/12		16,840		16,840
St. Paul Minnesota Housing & Redevelopment Authority Revenue VRDB, Minnesota Public Radio Project, Series B (JPMorgan Chase Bank N.A. LOC), 0.17%, 7/2/12		6,380		6,380
				133,964
Mississippi - 1.9%
Mississippi Business Finance Commission Gulf Opportunity Zone Revenue VRDB, Chevron USA, Inc., Series B 0.14%, 7/10/12		22,000		22,000
Mississippi Business Finance Commission Gulf Opportunity Zone Revenue VRDB, Chevron USA, Inc., Series D, 0.16%, 7/10/12		21,300		21,300
Mississippi Business Finance Corp. Commission Gulf Opportunity Zone Revenue VRDB, Series G, Chevron USA, (Chevron Corp. Gtd.), 0.15%, 7/2/12		42,200		42,200
Mississippi Hospital Equipment & Facilities Authority Revenue VRDB, North Mississippi, Series 1 0.18%, 7/10/12		11,170		11,170
Mississippi Hospital Equipment & Facilities Authority Revenue VRDB, Series 1, North Mississippi Health Services, 0.16%, 7/10/12		25,000		25,000
				121,670
Missouri - 1.8%
Florissant Missouri IDA Revenue Refunding VRDB, Retirement Housing Foundation, (KBC Groep N.V. LOC), 0.16%, 7/10/12		5,645		5,645

NORTHERN FUNDS QUARTERLY REPORT    11    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)	VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Missouri - 1.8% continued
Kansas City Missouri IDA Multifamily Housing Revenue Refunding VRDB, Woodlands Partners Project, (FNMA LOC), 0.18%, 7/10/12	$4,045		$4,045
Missouri State Health & Educational Facilities Authority Health Facilities Revenue VRDB, SSM Health Care, Series C5 0.16%, 7/10/12	8,600		8,600
Missouri State Health & Educational Facilities Authority Revenue VRDB, Lutheran Senior Services, (U.S. Bank N.A. LOC), 0.18%, 7/10/12	31,280		31,280
Missouri State Health & Educational Facilities Authority Revenue VRDB, Pooled Hospital Freeman Health Systems, Series C, (KBC Groep N.V. LOC), 0.17%, 7/10/12	6,335		6,335
Missouri State Health & Educational Facilities Authority Revenue VRDB, Saint Louis Priory School Project, (U.S. Bank N.A. LOC), 0.20%, 7/10/12	1,100		1,100
Missouri State Health & Educational Facilities Authority Revenue VRDB, Series C-2, Ascension Health, 0.15%, 7/10/12	8,300		8,300
Missouri State Health & Educational Facilities Multifamily Housing Authority Revenue VRDB, Southwest Baptist University Project, (Bank of America N.A. LOC), 0.30%, 7/2/12	1,125		1,125
Platte County Missouri IDA Multifamily Revenue Refunding Bonds, Wexford Place Project, (FHLMC Gtd.), 0.20%, 7/10/12(1)	7,145		7,145
St. Charles County Missouri IDA Revenue Refunding VRDB, Casalon Apartments Project, (FNMA Gtd.), 0.18%, 7/10/12	6,170		6,170
St. Charles County Missouri IDA Revenue Refunding VRDB, Country Club Apartments Project, (FNMA LOC), 0.18%, 7/10/12	19,000		19,000
St. Charles County Missouri IDA Revenue Refunding VRDB, Remington Apartments Project, (FNMA Gtd.), 0.18%, 7/10/12	10,700		10,700
			109,445
Nebraska - 0.9%
Central Plains Energy Project Nebraska Gas Project VRDB, Project No. 2, 0.18%, 7/10/12	24,500		24,500
Douglas County Nebraska Hospital Authority Revenue Refunding VRDB, Children’s Health Facilities, Series A (U.S. Bank N.A. LOC), 0.17%, 7/2/12	5,120		5,120
Omaha Public Power District Nebraska Separate Electrical Revenue Bonds, Series 2-A (Berkshire Hathaway, Inc. Insured), 0.19%, 7/10/12(1)	27,760		27,760
			57,380
Nevada - 0.5%
Carson City Nevada Hospital Revenue VRDB, Carson Tahoe Hospital Project, Series B (U.S. Bank N.A. LOC), 0.16%, 7/10/12	3,600		3,600
Carson City Nevada Hospital Revenue VRDB, Carson Tahoe Regional Medical Center, (U.S. Bank N.A. LOC), 0.16%, 7/10/12	8,615		8,615
City of Las Vegas Nevada Economic Development Revenue VRDB, Series A, Keep Memory Alive Project, (Bank of New Yok Mellon Corp. LOC), 0.15%, 7/10/12	20,000		20,000
			32,215
New Hampshire - 1.5%
New Hampshire Business Finance Authority Revenue VRDB, Taylor Home, Series E (TD Banknorth, Inc. LOC), 0.15%, 7/10/12	7,260		7,260

MONEY MARKET FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)	VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
New Hampshire - 1.5% continued
New Hampshire Health & Education Facilities Authority Hospital Revenue VRDB, Catholic Medical Center, Series B (FHLB of Boston LOC), 0.19%, 7/10/12	$14,700		$14,700
New Hampshire Health & Education Facilities Authority Revenue VRDB, Easter Seals New Hampshire, Series A (FHLB of Boston LOC), 0.19%, 7/10/12	10,425		10,425
New Hampshire Health & Education Facilities Authority Revenue VRDB, Kendal At Hanover, (FHLB of Boston LOC), 0.19%, 7/10/12	3,130		3,130
New Hampshire Health & Education Facilities Authority Revenue VRDB, Phillips Exeter Academy, 0.18%, 7/10/12	25,000		25,000
New Hampshire Health & Educational Facilities Authority Revenue VRDB, Riverwoods at Exeter, (Bank of America N.A. LOC), 0.21%, 7/10/12	6,930		6,930
New Hampshire Health & Educational Facilities Authority Revenue VRDB, Southern New Hampshire University, Series C (TD Banknorth, Inc. LOC), 0.15%, 7/10/12	17,300		17,300
New Hampshire Health & Educational Facilities Authority Revenue VRDB, Tilton School, (TD Banknorth, Inc. LOC), 0.17%, 7/10/12	7,850		7,850
			92,595
New Jersey - 0.1%
BB&T Municipal Trust Revenue Bonds, Series 2047, (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12(1)	325		325
New Jersey EDA Revenue Refunding VRDB, Series B, Cranes Mill Project, Series B (TD Banknorth, Inc. LOC), 0.15%, 7/10/12	270		270
New Jersey EDA Revenue VRDB, Cranes Mill Project, Series B (TD Banknorth, Inc. LOC), 0.15%, 7/10/12	1,305		1,305
New Jersey Health Care Facilities Financing Authority Revenue VRDB, Wiley Mission Project, (TD Banknorth, Inc. LOC), 0.16%, 7/10/12	2,155		2,155
			4,055
New Mexico - 1.8%
New Mexico Municipal Energy Acquisition Authority Gas Supply Revenue VRDB, Series B 0.18%, 7/10/12	74,700		74,700
New Mexico State Hospital Equipment Loan Council Revenue VRDB, Presbyterian Healthcare, Series B 0.18%, 7/10/12	17,500		17,500
Series C 0.17%, 7/10/12	20,700		20,700
			112,900
New York - 8.7%
BB&T Municipal Trust Revenue VRDB, (Branch Banking and Trust Co. LOC), 0.20%, 7/10/12(1)	12,415		12,415
Chemung County New York Industrial Development Agency Civic Facilities Revenue VRDB, Elmira College Project, Series A (JPMorgan Chase Bank N.A. LOC), 0.19%, 7/10/12	14,400		14,400
Eclipse Funding Trust Revenue Bonds, (U.S. Bank N.A. LOC), 0.17%, 7/10/12(1)	19,865		19,865
Metropolitan Transportation Authority New York Revenue Refunding Bonds, Series A (Berkshire Hathaway, Inc. Insured), 0.19%, 7/10/12(1)	31,680		31,680
Monroe County New York Industrial Development Agency Civic Facilities Revenue VRDB, Harley School Project, (M&T Bank Corp. LOC), 0.23%, 7/10/12	2,000		2,000
Monroe County New York Industrial Development Corp. Revenue VRDB, St. Ann’s Nursing Home, (HSBC Bank USA N.A. LOC), 0.20%, 7/10/12	4,100		4,100

NORTHERN FUNDS QUARTERLY REPORT    13    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)	VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
New York - 8.7% continued
Monroe Security & Safety Systems Local Development New York Revenue VRDB, (M&T Bank Corp. LOC), 0.18%, 7/10/12	$44,000		$44,000
Nassau Health Care Corp. Revenue VRDB, Series B-1, (TD Banknorth, Inc. LOC), 0.15%, 7/10/12	2,980		2,980
New York City New York Industrial Development Agency Civic Facilities Revenue VRDB, Sephardic Community Youth Center, (M&T Bank Corp. LOC), 0.23%, 7/10/12	2,000		2,000
New York State Dormitory Authority Revenue Non-State Supported Debt VRDB, Samaritan Medical Center, Series B (HSBC Bank USA N.A. LOC), 0.15%, 7/10/12	9,510		9,510
New York State Dormitory Authority Revenue VRDB, Non State Supported Debt, Royal, Series A (FNMA LOC), 0.13%, 7/10/12	56,490		56,490
New York State Dormitory Authority Revenues State Supported Debt VRDB, City University, Series D, (Toronto-Dominion Bank LOC), 0.15%, 7/10/12	13,800		13,800
New York State Housing Finance Agency Revenue VRDB, 100 Maiden Lane, Series A, (FNMA Insured), 0.19%, 7/10/12	5,000		5,000
New York State Housing Finance Agency Revenue VRDB, Affordable Housing, Clinton Park Phase II, Series E-31 (Wells Fargo Bank N.A. LOC), 0.20%, 7/10/12	15,000		15,000
New York State Liberty Development Corp. Revenue Refunding VRDB, 3 World Trade Center, 0.27%, 11/8/12	200,495		200,495
New York State Thruway Authority Revenue BANS, Series A, 2.00%, 7/12/12	21,000		21,010
Onondaga County New York Industrial Development Agency Civic Facilities Revenue VRDB, Syracuse Research Corp. Project, (M&T Bank Corp. LOC), 0.23%, 7/10/12	6,620		6,620
RBC Municipal Products, Inc. Trust New York Revenue Bonds, Floater Certificates Series E-33, (Escrowed), 0.40%, 7/10/12(1)	38,000		38,000
RBC Municipal Products, Inc. Trust New York Revenue Bonds, Floater Certificates Series E-35, 0.38%, 7/10/12(1)	6,000		6,000
Suffolk County New York Industrial Development Agency Revenue VRDB, St. Anthony’s High School Civic, (U.S. Bank N.A. LOC), 0.14%, 7/10/12	5,300		5,300
Town of Niagara New York Area Development Corp. Revenue VRDB, Niagara Falls Memorial, (HSBC Bank USA N.A. LOC), 0.15%, 7/10/12	7,310		7,310
Triborough Bridge & Tunnel Authority New York Revenue VRDB, Series C (JPMorgan Chase Bank N.A. LOC), 0.17%, 7/10/12	23,900		23,900
			541,875
North Carolina - 3.8%
BB&T Municipal Trust Floaters, Series 1036, (Branch Banking and Trust Co. LOC), 0.32%, 7/10/12(1)	4,450		4,450
BB&T Municipal Trust Floaters, Series 1038, (Branch Banking and Trust Co. LOC), 0.34%, 7/10/12(1)	7,385		7,385
BB&T Municipal Trust Revenue Bonds (Branch Banking and Trust Co. LOC), 0.27%, 7/10/12(1)	16,795		16,795
City of Raleigh North Carolina COPS VRDB, Downtown, Series B 0.16%, 7/10/12	36,300		36,300

MONEY MARKET FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)	VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
North Carolina - 3.8% continued
Forsyth County North Carolina Industrial Facilities Authority Revenue VRDB, Recreation Facilities-YMCA Winston, (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12	$1,425		$1,425
Guilford County North Carolina G.O. VRDB, Series A 0.17%, 7/10/12	18,055		18,055
Series B 0.16%, 7/10/12	4,300		4,300
Mecklenburg County North Carolina COPS VRDB, Series J 0.19%, 7/10/12	15,720		15,720
North Carolina Capital Facilities Financial Agency Educational Facilities Revenue VRDB, Campbell University, (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12	5,600		5,600
North Carolina Capital Facilities Financial Agency Educational Facilities Revenue VRDB, Rocky Mountain Preparatory School, Series H (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12	5,900		5,900
North Carolina Capital Facilities Financial Agency Recreational Facilities Revenue VRDB, YMCA Greater Charlotte Project, Series K (Wachovia Bank N.A. LOC), 0.19%, 7/10/12	9,600		9,600
North Carolina Capital Facilities Financing Agency Revenue VRDB, Duke University Project, Series A 0.18%, 7/10/12(1)	12,000		12,000
North Carolina Medical Care Commission Health Care Facilities Revenue Refunding VRDB, University Health Systems Eastern, Series B1 (Branch Banking and Trust Co. LOC), 0.17%, 7/10/12	4,600		4,600
North Carolina Medical Care Commission Health Care Facilities Revenue Refunding VRDB, Wakemed, Series C (Wachovia Bank N.A. LOC), 0.18%, 7/10/12	14,945		14,945
North Carolina Medical Care Commission Health Care Facilities Revenue VRDB, Novant Health Group, Series A 0.20%, 7/10/12	24,350		24,350
North Carolina Medical Care Commission Health Facilities Revenue Refunding VRDB, Wake Forest University, Series A (Branch Banking and Trust Co. LOC), 0.17%, 7/10/12	7,330		7,330
Raleigh Durham North Carolina Airport Authority Revenue Refunding VRDB, Series C (FHLB LOC), 0.17%, 7/10/12	10,400		10,400
Raleigh North Carolina Enterprise System Revenue VRDB, Series A 0.16%, 7/10/12(1)	10,895		10,895
University of North Carolina Chapel Hill Revenue Refunding VRDB, Series A 0.18%, 7/10/12(1)	5,800		5,800
Winston-Salem North Carolina Water & Sewer Systems Revenue Refunding VRDB, Series C 0.18%, 7/10/12	19,540		19,540
			235,390
Ohio - 3.5%
Akron Bath Copley Ohio Joint Township Hospital District Revenue VRDB, Hospital Facilities-Summa Health Systems, Series B (JPMorgan Chase Bank N.A. LOC), 0.17%, 7/10/12	13,345		13,345
Athens County Ohio Port Authority Housing Revenue VRDB, University Housing For Ohio, Inc. Project, (Wachovia Bank N.A. LOC), 0.17%, 7/10/12	26,750		26,750
Cleveland-Cuyahoga County Ohio Port Authority Revenue VRDB, Euclid Avenue Housing Corp. Project, (U.S. Bank N.A. LOC), 0.17%, 7/10/12	5,000		5,000

NORTHERN FUNDS QUARTERLY REPORT    15    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)	VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Ohio - 3.5% continued
Cleveland-Cuyahoga County Port Authority Cultural Facilities Revenue VRDB, Playhouse Square Foundation Project, (U.S. Bank N.A. LOC), 0.15%, 7/10/12	$9,175		$9,175
County of Allen Ohio Hospital Facilities Revenue VRDB, Catholic Healthcare, (JPMorgan Chase & Co. LOC), 0.17%, 7/10/12	5,000		5,000
Cuyahoga County Ohio Hospital Revenue VRDB, Improvement, Metrohealth Systems Project, (PNC Bancorp, Inc. LOC), 0.15%, 7/10/12	22,410		22,410
Franklin County Ohio Health Care Facilities Revenue VRDB, Friendship Village Dublin, (PNC Bancorp, Inc. LOC), 0.16%, 7/10/12	4,500		4,500
Lancaster Port Authority Ohio Gas Revenue VRDB, 0.18%, 7/10/12	5,760		5,760
Montgomery County Ohio Economic Development Revenue VRDB, The Dayton Art Institute, (U.S. Bank N.A. LOC), 0.15%, 7/10/12	4,900		4,900
Ohio Air Quality Development Authority Ohio Revenue Refunding VRDB, Series B, Pollution, First Energy, (UBS A.G. LOC), 0.19%, 7/10/12	25,100		25,100
Ohio Multifamily Housing Finance Agency Revenue VRDB, Chambrel at Montrose, Series F (FNMA LOC), 0.18%, 7/10/12	12,051		12,051
Ohio State Water Development Authority Revenue Refunding VRDB, Firstenergy Generation, Series A (UBS A.G. LOC), 0.19%, 7/10/12	72,240		72,240
Richland County Ohio Health Care Facilities Revenue Refunding Bonds, Wesleyan Senior Living, Series A (JPMorgan Chase Bank N.A. LOC), 0.19%, 7/10/12	3,360		3,360
Warren County Ohio Health Care Facilities Revenue VRDB, Otterbein Homes Project, (U.S. Bank N.A. LOC), 0.17%, 7/10/12	6,500		6,500
Washington County Ohio Hospital Revenue VRDB, Facilities Marietta Area Health Project, (JPMorgan Chase Bank N.A. LOC), 0.17%, 7/10/12	2,155		2,155
			218,246
Oklahoma - 1.5%
Oklahoma Turnpike Authority Revenue Refunding VRDB, Series B 0.17%, 7/10/12	96,160		96,160
Oregon - 0.5%
Oregon State Facilities Authority Revenue VRDB, Hazelden Springbrook Project, Series A (U.S. Bancorp LOC), 0.20%, 7/10/12	3,700		3,700
Oregon State Facilities Authority Revenue VRDB, Quatama Crossing Housing, Series O (FNMA LOC), 0.20%, 7/10/12	28,330		28,330
Oregon State Health Housing Educational & Cultural Facilities Authority Revenue VRDB, The Evangelical Lutheran, Series A (U.S. Bank N.A. LOC), 0.23%, 7/10/12	2,000		2,000
			34,030
Pennsylvania - 4.9%
BB&T Municipal Trust Revenue Bonds, Series 228 (Branch Banking and Trust Co. LOC), 0.21%, 7/10/12(1)	24,850		24,850
Beaver County IDA Revenue Refunding VRDB, Firstenergy Generation, (UBS A.G. LOC), 0.22%, 7/10/12	10,000		10,000
Bucks County IDA Revenue VRDB, Grand View Hospital, Series A (TD Banknorth, Inc. LOC), 0.14%, 7/10/12	2,235		2,235

MONEY MARKET FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)	VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Pennsylvania - 4.9% continued
Butler County Pennsylvania IDA Revenue Refunding VRDB, Concordia Lutheran, Series A (Bank of America N.A. LOC), 0.16%, 7/10/12	$16,225		$16,225
Butler County Pennsylvania IDA Revenue VRDB, Concordia Lutheran, Series A (Bank of America N.A. LOC), 0.16%, 7/10/12	9,760		9,760
City of Philadelphia Pennsylvania Gas Works Revenue Refunding VRDB, (PNC Bancorp, Inc. LOC), 0.15%, 7/10/12	10,100		10,100
Haverford Township Pennsylvania G.O., School District, (TD Banknorth, Inc. LOC), 0.18%, 7/10/12	7,900		7,900
Horizon Hospital System Authority Pennsylvania Health & Housing Facilities Revenue VRDB, Senior, St. Paul Homes Project, (M&T Bank Corp. LOC), 0.25%, 7/10/12	7,340		7,340
Lancaster Pennsylvania IDA Revenue VRDB, Mennonite Home Project, (M&T Bank Corp. LOC), 0.25%, 7/10/12	9,600		9,600
Lower Merion Pennsylvania School District G.O. VRDB, Capital Project, Series A (State Street Bank and Trust Co. LOC), 0.16%, 7/10/12	2,785		2,785
Series B (U.S. Bank N.A. LOC), 0.16%, 7/10/12	11,000		11,000
Pennsylvania Higher Educational Facilities Authority Revenue VRDB, Holy Family University, (TD Banknorth, Inc. LOC), 0.15%, 7/10/12	9,910		9,910
Pennsylvania Multifamily Housing Finance Agency Revenue VRDB, Special Limited Obligation, Foxwood, (Bank of America N.A. LOC), 0.18%, 7/10/12	3,200		3,200
Pennsylvania State Turnpike Commission Multi-Modal Revenue Refunding VRDB, Series A-1, 0.19%, 7/10/12	28,000		28,000
Pennsylvania State Turnpike Commission Revenue Refunding VRDB, Series A-2, 0.18%, 7/10/12	17,820		17,820
Philadelphia Authority for IDR Refunding VRDB, Series B-2 (TD Banknorth, Inc. LOC), 0.15%, 7/10/12	12,000		12,000
Philadelphia School District G.O. Revenue Refunding VRDB, Series G (Wells Fargo Bank N.A. LOC), 0.16%, 7/10/12	25,000		25,000
Philadelphia School District Pennsylvania Revenue Refunding G.O. VRDB, Series C, (TD Banknorth, Inc. LOC), 0.15%, 7/10/12	1,545		1,545
RBC Municipal Products, Inc. Trust Floater Certificates G.O., (Royal Bank of Canada LOC), 0.18%, 7/10/12(1)	5,900		5,900
RBC Municipal Products, Inc. Trust Floater Certificates Revenue Bonds, Series B (Royal Bank of Canada LOC), 0.18%, 7/10/12(1)	6,000		6,000
RBC Municipal Products, Inc. Trust Pennsylvania Revenue Bonds, Floater Certificates Series E-34, (Escrowed) 0.38%, 7/10/12(1)	65,000		65,000
RBC Municipal Products, Inc. Trust Revenue VRDB, Floater Certificates, Series B (Royal Bank of Canada LOC), 0.18%, 7/10/12(1)	10,000		10,000
Southcentral Pennsylvania General Authority Revenue VRDB, Hanover Lutheran Village Project, (M&T Bank Corp. LOC), 0.25%, 7/10/12(1)	7,960		7,960
West Cornwall Pennsylvania Township Municipal Authority Revenue VRDB, Series 2006, Senior Living Facility Lebanon Valley, (PNC Bancorp, Inc. LOC), 0.16%, 7/10/12	4,000		4,000
			308,130

NORTHERN FUNDS QUARTERLY REPORT    17    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)	VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Puerto Rico - 0.5%
BB&T Municipal Trust Special Tax Bonds, Series 22 (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12(1)	$12,380		$12,380
Puerto Rico Electrical Power Authority Power Revenue Refunding Bonds, Series V (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12(1)	20,670		20,670
			33,050
Rhode Island - 0.2%
Rhode Island Health & Educational Building Corp. Higher Educational Facilities Revenue Refunding VRDB, Bryant University, Series C-15 (TD Banknorth, Inc. LOC), 0.17%, 7/10/12	11,995		11,995
South Carolina - 0.8%
Eclipse Funding Trust, G.O., Series 2006-0152, Solar Eclipse, Spartan, (U.S. Bank N.A. LOC), 0.17%, 7/10/12(1)	10,430		10,430
South Carolina Jobs EDA Health Facilities Revenue Refunding VRDB, Episcopal, (Wachovia Bank N.A. LOC), 0.16%, 7/10/12	14,000		14,000
South Carolina Jobs EDA Hospital Revenue VRDB, Oconee Memorial Hospital, Inc., Series B (Wachovia Bank N.A. LOC), 0.18%, 7/10/12	9,000		9,000
South Carolina State Housing Finance & Development Authority Multifamily Revenue VRDB, Rental Franklin Square, (FHLMC LOC), 0.18%, 7/10/12	9,800		9,800
South Carolina State Housing Financial & Development Authority Multifamily Revenue VRDB, Rental Housing Brookside Apartments, Series D (FHLMC Gtd.), 0.18%, 7/10/12	4,700		4,700
			47,930
Tennessee - 1.3%
Blount County Tennessee Public Building Authority Revenue VRDB, Local Government Public Improvement, Series E-5-B, (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12	4,815		4,815
Blount County Tennessee Public Building Authority VRDB, Local Government Public Improvement, (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12	11,000		11,000
Metropolitan Government Nashville & Davidson County Tennessee Health & Educational Facilities Board Revenue Refunding VRDB, Multifamily, Timberlake Project, (FNMA Insured), 0.18%, 7/10/12	1,150		1,150
Metropolitan Government Nashville & Davidson County Tennessee Industrial Development Board Multifamily Housing Refunding VRDB, Ridgelake Apartments Project, Series G (FHLMC Gtd.), 0.18%, 7/10/12	5,525		5,525
Metropolitan Government Nashville & Davidson County Tennessee Industrial Development Board Revenue Refunding Bonds, Multifamily Housing Spinnaker, Series A (FNMA Gtd.), 0.18%, 7/10/12	13,655		13,655
Metropolitan Government Nashville & Davidson County Tennessee Industrial Development Board Revenue VRDB, Multifamily Housing, Arbor Knoll, Series A (FNMA LOC), 0.18%, 7/10/12	13,400		13,400
Sevier County Tennessee Public Building Authority Revenue Notes, Series C-1, Public Project Construction Notes, 1.25%, 4/1/13	4,100		4,125
Sevier County Tennessee Public Building Authority VRDB, Local Government Public Improvement, Series B-1 (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12	8,200		8,200

MONEY MARKET FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)	VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Tennessee - 1.3% continued
Shelby County Tennessee Health Educational & Housing Facilities Board Multifamily Housing Revenue VRDB, Gateway Projects, Series A-1 (FNMA Gtd.), 0.17%, 7/10/12	$5,575		$5,575
Tennessee State Energy Acquisition Corp. Gas Revenue Floaters, (Branch Banking and Trust Co. LOC), 0.23%, 7/10/12(1)	15,000		15,000
			82,445
Texas - 13.3%
Capital Area Housing Finance Corp. Texas Revenue VRDB, Encino Pointe Apartments, (Bank of America N.A. LOC), 0.18%, 7/10/12	15,700		15,700
Carroll Texas Independent School District G.O. Bonds, School Building, (Texas PSF Gtd.), 0.18%, 7/10/12	13,500		13,500
County of Harris Texas G.O. TANS, 2.00%, 2/28/13	15,000		15,183
Crawford Texas Education Facilities Corp. Revenue Bonds, Prince of Peace Christian School, (Wachovia Bank N.A. LOC), 0.16%, 7/10/12	4,230		4,230
Crawford Texas Education Facilities Corp. Revenue Bonds, Prince of Peace Christian, (Wachovia Bank N.A. LOC), 0.16%, 7/10/12	5,070		5,070
Dallas Texas Waterworks & Sewer Systems Revenue Refunding VRDB, 0.23%, 7/10/12(1)	20,000		20,000
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Series 526 (Deutsche Bank A.G. LOC), 0.25%, 7/10/12(1)	9,230		9,230
Eclipse Funding Trust, Texas, G.O., Series 2007-0080, Solar Eclipse, (U.S. Bank N.A. LOC), 0.17%, 7/10/12(1)	10,345		10,345
Eclipse Funding Trust, Waco Texas, Revenue Bonds, Series 2007-0040, Solar Eclipse, (U.S. Bank N.A. LOC), 0.17%, 7/10/12(1)	21,285		21,285
Harris County Cultural Education Facilities Finance Corp. Revenue VRDB, Methodist Hospital, Subseries C-1 0.15%, 7/2/12	26,900		26,900
Harris County Texas Revenue Refunding Bonds, Toll Road, Senior Lien, Series A, 2.00%, 8/15/12	10,665		10,834
Houston Texas Airport Systems Revenue Refunding VRDB, (Barclays PLC LOC), 0.17%, 7/10/12	11,300		11,300
Houston Texas Water & Sewer Systems Revenue Refunding Bonds, Series B (Branch Banking and Trust Co. LOC), 0.20%, 7/10/12(1)	1,305		1,305
Kendall County Texas Health Facilities Development Corp. Health Care Revenue VRDB, Morningside Ministries, Series A (JPMorgan Chase Bank N.A. LOC), 0.20%, 7/10/12	10,200		10,200
Klein Independent School District G.O. Floaters, Series 39TP, (Wells Fargo Bank N.A. LOC), 0.18%, 7/10/12(1)	13,005		13,005
Lower Neches Valley Texas Authority Industrial Development Corp. Revenue Refunding VRDB, ExxonMobil Project, 0.14%, 7/2/12	26,700		26,700
Lower Neches Valley Texas Authority PCR Bonds, Chevron USA, Inc. Project, (Chevron Corp. Gtd.), 0.18%, 8/15/12	19,100		19,100
North Texas Higher Education Authority, Student Loan Revenue VRDB, Series E (Lloyds Bank Group PLC LOC), 0.25%, 7/10/12	28,800		28,800
Northwest Texas Independent School District G.O. VRDB, (Texas PSF Insured), 0.17%, 7/10/12	1,225		1,225
Nueces County Health Facilities Development Authority Revenue VRDB, Driscoll Children’s Foundation, (JPMorgan Chase Bank N.A. LOC), 0.17%, 7/10/12	9,800		9,800

NORTHERN FUNDS QUARTERLY REPORT    19    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Texas - 13.3% continued
Port of Port Arthur Texas Navigation District Exempt Facilities Revenue VRDB, Total Petrochemicals USA, 0.28%, 7/10/12	$	9,900	$	9,900
Port of Port Arthur Texas Navigation District Industrial Development Corp., Exempt Facilities Revenue VRDB, Total Petrochemicals, Series A 0.31%, 7/10/12		46,565		46,565
RBC Municipal Products, Inc. Trust Floater Certificates G.O., (Royal Bank of Canada LOC), 0.18%, 7/10/12(1)		25,000		25,000
RBC Municipal Products, Inc. Trust Revenue Bonds, Floaters Certificates, Series E-27 (Royal Bank of Canada LOC), 0.18%, 7/10/12(1)		10,000		10,000
State of Texas Eagle G.O., Series 20060126, Class A, 0.18%, 7/10/12(1)		60,990		60,990
State of Texas G.O. VRDB, Series A, 0.16%, 7/10/12		8,330		8,330
State of Texas G.O. VRDB, Veterans, 0.16%, 7/10/12		34,000		34,000
Tarrant County Texas Cultural Educational Finance Corp. Retirement Facilities Revenue VRDB, Northwest Edgemere Project, (Bank of America N.A. LOC), 0.29%, 7/10/12		18,465		18,465
Tarrant County Texas Housing Finance Corp. Revenue Refunding VRDB, Multifamily Housing Apartments Project, (Wachovia Bank N.A. LOC), 0.18%, 7/10/12		7,050		7,050
Tarrant County Texas Housing Finance Corp. Revenue VRDB, Multifamily Housing, Gateway Apartments, (FNMA Gtd.), 0.18%, 7/10/12		8,045		8,045
Texas Department Multifamily Housing & Community Affairs Revenue VRDB, Woodmont Apartments, (Bank of America N.A. LOC), 0.18%, 7/10/12		15,000		15,000
Texas State G.O. Refunding Bonds, Vets Housing Assistance, Fund I, Series A 0.14%, 7/10/12		3,900		3,900
Texas State TRANS, Series A, 2.50%, 8/30/12		309,500		310,631
				831,588
Utah - 0.3%
Park City Utah Revenue VRDB, U.S. Ski & Snowboard Association, (Wells Fargo Bank N.A. LOC), 0.18%, 7/10/12		3,380		3,380
Utah Housing Corp. SFM Revenue Refunding VRDB, Series A-Class I 0.16%, 7/10/12		14,600		14,600
				17,980
Vermont - 0.1%
Vermont Educational & Health Buildings Financing Agency Revenue VRDB, Porter Hospital Project, Series A (TD Banknorth, Inc. LOC), 0.15%, 7/10/12		4,890		4,890
Virginia - 1.0%
Alexandria Virginia IDA Revenue Refunding VRDB, Goodwin House, (Wachovia Bank N.A. LOC), 0.13%, 7/2/12		12,050		12,050
Hampton Virginia Redevelopment & Housing Authority Multifamily Housing Revenue Refunding VRDB, Hampton Center Apartments Project, (FHLMC Insured), 0.18%, 7/10/12		13,310		13,310
Lewistown Community Center Development Authority Revenue Floaters, (Wells Fargo Bank N.A. LOC), 0.18%, 7/10/12(1)		13,035		13,035
Lynchburg Virginia IDA Revenue Refunding VRDB, Hospital Centra Health, Series D (FHLB of Atlanta LOC), 0.18%, 7/10/12		7,200		7,200
Series E (FHLB of Atlanta LOC), 0.18%, 7/10/12		6,600		6,600

MONEY MARKET FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Virginia - 1.0% continued
Virginia Commonwealth University Health System Authority Revenue Bonds, ARS Generation, Series B (Wachovia Bank N.A. LOC), 0.17%, 7/2/12	$	3,325	$	3,325
Virginia Small Business Financing Authority Healthcare Facilities Revenue VRDB, Bon Secours Health, (JPMorgan Chase Bank N.A. LOC), 0.16%, 7/10/12		9,000		9,000
				64,520
Washington - 1.4%
Vancouver Washington Housing Authority Revenue Refunding VRDB, Pooled Housing, (FHLMC Gtd.), 0.18%, 7/10/12		4,500		4,500
Washington Health Care Facilities Authority Revenue VRDB, Catholic Health, 0.18%, 7/10/12		21,400		21,400
Washington Higher Education Facilities Authority Revenue Refunding VRDB, University of Puget Sound Project, Series A (Bank of America N.A. LOC), 0.19%, 7/10/12		10,495		10,495
Washington State G.O. Refunding VRDB, Series A 0.23%, 7/10/12(1)		14,740		14,740
Washington State Health Care Facilities Authority Revenue VRDB, Multicare Health Systems, Series A (Wells Fargo Bank N.A. LOC), 0.19%, 7/10/12		2,400		2,400
Washington State Housing Finance Commission Non Profit Housing Revenue VRDB, Living Care Centers Project, (Wells Fargo Bank N.A. LOC), 0.17%, 7/10/12		7,240		7,240
Washington State Housing Finance Commission Non Profit Revenue VRDB, District Council No. 5, (Wells Fargo Bank N.A. LOC), 0.28%, 7/10/12		2,875		2,875
Washington State Housing Finance Commission Non Profit Revenue VRDB, Skyline At First Hill Project, Series C (Bank of America N.A. LOC), 0.29%, 7/10/12		18,210		18,210
Washington State Housing Finance Commission Revenue Refunding VRDB, Antioch University Project, (Mitsubishi UFJ Financial Group, Inc. LOC), 0.16%, 7/10/12		5,105		5,105
				86,965
West Virginia - 0.6%
Cabell County West Virginia County Commission Revenue VRDB, Huntington YMCA Project, (JPMorgan Chase Bank N.A. LOC), 0.28%, 7/10/12		2,685		2,685
Eclipse Funding Trust Solar Eclipse West Virginia Revenue Bonds, Series 2006-0132, (U.S. Bank N.A. LOC), 0.17%, 7/10/12(1)		17,500		17,500
West Virginia State Hospital Finance Authority Hospital Revenue Refunding VRDB, West Virginia United Health, Series A (Branch Banking and Trust Co. LOC), 0.19%, 7/10/12		19,790		19,790
				39,975
Wisconsin - 3.6%
Milwaukee Wisconsin Redevelopment Authority Lease Revenue VRDB, University of Wisconsin, Kenilworth Project, (U.S. Bank N.A. LOC), 0.18%, 7/10/12		12,420		12,420
Public Finance Authority Wisconsin Multifamily Housing Revenue Refunding VRDB, Lindsey Terrace Apartments, (FNMA LOC), 0.23%, 7/10/12		3,275		3,275
Wisconsin Department of Transportation Revenue VRDB, Floater Series 52TP, (Wells Fargo Bank N.A. LOC), 0.18%, 7/10/12(1)		8,085		8,085
Wisconsin Health & Educational Facilities Authority Revenue Bonds, Newcastle Place Project, Series B (Bank of America N.A. LOC), 0.38%, 7/10/12		6,300		6,300

NORTHERN FUNDS QUARTERLY REPORT    21    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Wisconsin - 3.6% continued
Wisconsin Health & Educational Facilities Authority Revenue Refunding VRDB, Oakwood Village, (BMO Harris Bank N.A. LOC), 0.14%, 7/10/12	$	3,000	$	3,000
Wisconsin Health & Educational Facilities Authority Revenue VRDB, St. Norbert College, Inc., (JPMorgan Chase Bank N.A. LOC), 0.19%, 7/10/12		9,925		9,925
Wisconsin Health & Educational Facilities Authority Revenue VRDB, Series B, Oakwood, (Bank of Montreal LOC), 0.14%, 7/10/12		4,610		4,610
Wisconsin Rural Water Construction Loan Program Revenue BANS, Series B 1.25%, 10/15/12		38,000		38,088
Wisconsin Sate Health & Educational Facilities Authority Revenue VRDB, Oakwood Village, (Bank of Montreal LOC), 0.14%, 7/10/12		20,085		20,085
Wisconsin State G.O. Refunding VRDB, Series 1 0.23%, 7/10/12(1)		25,000		25,000
Wisconsin State Health & Educational Facilities Authority Revenue Bonds, Mequon Jewish Project, (JPMorgan Chase Bank N.A. LOC), 0.22%, 7/10/12		4,755		4,755
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Series B, Aurora Healthcare, (Bank of Montreal LOC), 0.16%, 7/2/12		6,650		6,650
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Capital Lakes, Inc., Series B (U.S. Bank N.A. LOC), 0.17%, 7/10/12		6,265		6,265
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Froedtert & Community Health, Series A, (U.S. Bank N.A. LOC), 0.17%, 7/10/12		20,235		20,235
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, United Lutheran Program Aging, (Wells Fargo Bank N.A. LOC), 0.16%, 7/10/12		5,205		5,205
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Watertown Memorial Hospital, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.16%, 7/10/12		15,000		15,000
Wisconsin State School Districts Cash Flow Administration Program Participation Notes, Temporary Borrowing Program, 1.00%, 10/15/12		13,350		13,374
Wisconsin State Transportation Revenue Refunding VRDB, Series I 0.23%, 7/10/12(1)		21,745		21,745
				224,017
Wyoming - 1.0%
County of Sweetwater Wyoming Pollution Control Revenue Refunding Bonds, Series A, Pacificorp Project, (Barclays PLC LOC), 0.17%, 7/10/12		16,650		16,650
County of Sweetwater Wyoming Variable Rate Demand Obligation, (Barclays PLC LOC), 0.22%, 7/3/12		48,000		48,000
				64,650
Municipal States Pooled Securities - 1.7%
BB&T Municipal Trust Revenue VRDB, Series 2022, Floaters, (Branch Banking and Trust Co. LOC), 0.18%, 7/10/12(1)		1,695		1,695
BB&T Municipal Trust Various States Revenue VRDB, Series 5001 (Rabobank Nederland N.V. LOC), 0.27%, 7/10/12(1)		22,400		22,400

MONEY MARKET FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 99.6% continued
Municipal States Pooled Securities - 1.7% continued
BB&T Municipal Trust Various States, Series 1007 (Branch Banking and Trust Co. LOC), 0.27%, 7/10/12(1)	$	4,455	$	4,455
Series 1017 (Branch Banking and Trust Co. LOC), 0.27%, 7/10/12(1)		30,545		30,545
Series 1019 (Branch Banking and Trust Co. LOC), 0.27%, 7/10/12(1)		16,020		16,020
Series 1035 (Branch Banking and Trust Co. LOC), 0.27%, 7/10/12(1)		10,760		10,760
Series 5002 (Rabobank Nederland N.V. LOC), 0.42%, 7/10/12(1)		18,760		18,760
				104,635
Total Municipal Investments (Cost $6,236,283)				6,236,283
Total Investments - 99.6% (Cost $6,236,283)(3)				6,236,283
Other Assets less Liabilities - 0.4%				26,271
NET ASSETS - 100.0%			$	6,262,554

(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 has been deemed illiquid. At June 30, 2012, the value of these restricted illiquid securities amounted to approximately $25,615,000 or 0.4% of net assets. Additional information on these restricted illiquid securities is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
East Porter County Indiana School Building Corp. Revenue Bonds, Series DB-145, 0.28%, 7/10/12	4/10/12	$	5,615
RBC Municipal Products, Inc. Trust G.O. Floater Certificates, Series E-32, 0.16%, 7/10/12	2/9/12		20,000

(3) The cost for federal income tax purposes was $6,236,283.

Percentages shown are based on Net Assets.

At June 30, 2012, the industry sectors for the Municipal Money Market Fund were:

INDUSTRY SECTOR	% OF NET ASSETS
Air, Transportation, Water Services and Solid Waste Management		17.0	%
Educational Services		13.5
Electric Services, Gas and Combined Utilities		7.9
Executive, Legislative and General Government		21.3
General Medical and Surgical Hospitals, Specialty Hospitals, Nursing and Personal Care		13.7
Health Services and Residential Care		8.2
Urban and Community Development, Housing Programs and Social Services		9.9
All other sectors less than 5%		8.5
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Municipal Money Market Fund’s investments, which are carried at amortized cost, which approximates fair value, as of June 30, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Investments held by Municipal Money Market Fund	$	—	$	6,236,283	(1)	$	—	$	6,236,283

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    23    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

Interest rates represent either the stated coupon rate, annualized yield on date of purchase for discontinued notes, or, for floating rate securities, the current reset rate.

Maturity dates represent either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

ABAG - Association of Bay Area Governments

BANS - Bond Anticipation Notes

COPS - Certificates of Participation

EDA - Economic Development Authority

FHLB - Federal Home Loan Bank

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

G.O. - General Obligation

Gtd. - Guaranteed

IDA - Industrial Development Authority

IDR - Industrial Development Revenue

IDB - Industrial Development Board

LOC - Letter of Credit

PCR - Pollution Control Revenue

PSF - Permanent School Fund

ROCS - Reset Option Certificates

SFM - Single Family Mortgage

TANS - Tax Anticipation Notes

TRANS - Tax and Revenue Anticipation Notes

VRDB - Variable Rate Demand Bonds

MONEY MARKET FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 44.7%(1)
Federal Farm Credit Bank - 3.6%
FFCB Bond,
0.22%, 6/11/13	$	2,000	$	2,000
FFCB Discount Notes,
0.09%, 8/6/12		1,800		1,800
0.17%, 1/9/13		1,000		999
0.15%, 1/22/13		2,800		2,797
0.14%, 1/28/13		1,800		1,798
0.22%, 3/19/13		1,900		1,897
0.21%, 4/5/13		2,000		1,997
0.20%, 4/19/13		1,400		1,398
FFCB FRN,
0.29%, 7/1/12		10,000		10,000
0.23%, 7/8/12		5,000		5,000
0.17%, 7/10/12		5,000		5,000
0.21%, 7/11/12		3,500		3,500
0.21%, 7/13/12		3,000		3,000
0.24%, 7/15/12		2,700		2,702
0.27%, 7/22/12		4,100		4,104
0.11%, 7/27/12		2,000		2,000
				49,992
Federal Home Loan Bank - 23.5%
FHLB Bonds,
4.50%, 11/15/12		4,000		4,065
0.30%, 12/11/12		2,000		2,000
0.18%, 1/9/13		2,500		2,500
0.17%, 2/6/13		4,300		4,300
0.17%, 2/11/13		1,800		1,800
0.19%, 2/15/13		2,100		2,100
0.25%, 2/28/13		3,000		3,000
0.13%, 3/5/13		1,300		1,299
0.25%, 3/19/13		2,700		2,700
0.23%, 4/5/13		1,800		1,800
0.22%, 5/17/13		1,400		1,400
0.30%, 7/3/13		4,000		4,000
FHLB Discount Notes,
0.10%, 7/5/12		5,900		5,900
0.11%, 7/5/12		14,000		14,000
0.11%, 7/11/12		2,800		2,800
0.14%, 7/18/12		1,900		1,900
0.08%, 7/20/12		1,800		1,800
0.12%, 7/25/12		9,300		9,299
0.22%, 7/25/12		3,300		3,300
0.10%, 8/1/12		6,000		5,999
0.12%, 8/1/12		5,400		5,399
0.15%, 8/1/12		1,400		1,400
0.09%, 8/3/12		8,000		7,999
0.12%, 8/3/12		11,500		11,499
0.13%, 8/3/12		12,400		12,399
0.12%, 8/8/12		7,900		7,899
0.09%, 8/10/12		3,500		3,500
0.18%, 8/15/12		2,100		2,099
0.11%, 8/17/12		4,600		4,599
0.13%, 8/22/12		14,000		13,997
0.10%, 8/31/12		7,900		7,899
0.11%, 9/13/12		7,600		7,598
0.14%, 10/19/12		8,000		7,997
0.16%, 10/24/12		1,600		1,599
0.15%, 11/2/12		11,400		11,394
0.16%, 11/7/12		2,000		1,999
0.16%, 11/14/12		3,000		2,998
0.12%, 12/5/12		4,800		4,797
0.15%, 12/7/12		6,400		6,396
0.14%, 1/28/13		1,800		1,798
0.19%, 2/1/13		3,000		2,996
0.18%, 2/4/13		1,900		1,898
0.21%, 4/1/13		1,500		1,498
0.22%, 4/2/13		1,800		1,797
0.21%, 4/8/13		2,500		2,496
0.20%, 5/2/13		2,500		2,496
0.20%, 5/3/13		4,200		4,193
0.21%, 5/13/13		2,200		2,196
0.21%, 5/21/13		11,000		10,979
0.20%, 6/7/13		1,500		1,497
0.22%, 6/28/13		3,300		3,293
FHLB FRN,
0.21%, 7/1/12		10,000		10,000
0.24%, 7/1/12		5,000		4,998
0.25%, 7/1/12		10,000		9,998
0.28%, 7/1/12		6,645		6,645
0.30%, 7/1/12		3,700		3,700
0.31%, 7/1/12		26,490		26,490
0.33%, 7/1/12		5,000		4,999
0.19%, 7/13/12		5,000		5,000
0.19%, 7/25/12		4,400		4,399
0.21%, 7/25/12		2,500		2,500
0.18%, 7/27/12		5,000		4,999
				320,294

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 44.7%(1) continued
Federal Home Loan Mortgage Corporation - 7.9%
FHLMC Discount Notes,
0.10%, 7/9/12	$	1,800	$	1,800
0.12%, 7/17/12		5,000		5,000
0.12%, 8/22/12		4,900		4,899
0.15%, 10/1/12		9,300		9,296
0.15%, 11/1/12		2,300		2,299
0.12%, 11/6/12		7,000		6,997
0.13%, 11/6/12		3,000		2,999
0.14%, 1/14/13		10,000		9,992
0.14%, 1/16/13		10,500		10,492
0.17%, 2/1/13		4,200		4,196
FHLMC FRN,
0.29%, 7/1/12		10,000		10,001
0.19%, 7/3/12		30,000		29,990
0.19%, 7/17/12		10,000		9,995
				107,956
Federal National Mortgage Association - 9.7%
FNMA Bond,
1.13%, 7/30/12		15,000		15,012
FNMA Discount Notes,
0.10%, 7/2/12		1,835		1,835
0.15%, 10/1/12		12,394		12,389
0.12%, 10/18/12		9,800		9,797
0.14%, 1/3/13		3,600		3,597
0.14%, 1/4/13		6,200		6,195
0.14%, 1/8/13		3,500		3,497
FNMA FRN,
0.39%, 7/1/12		15,000		15,010
0.23%, 7/12/12		10,000		9,997
0.27%, 7/18/12		15,000		15,003
0.22%, 7/20/12		25,000		24,990
0.27%, 7/20/12		5,000		5,004
0.27%, 7/23/12		10,000		10,003
				132,329
Total U.S. Government Agencies (Cost $610,571)				610,571
U.S. GOVERNMENT OBLIGATIONS - 16.0%
U.S. Treasury Bills - 5.9%
0.20%, 7/5/12		1,500		1,500
0.08%, 7/19/12		7,600		7,600
0.14%, 8/30/12		3,700		3,699
0.07%, 9/6/12		4,500		4,499
0.13%, 9/6/12		6,900		6,899
0.14%, 9/20/12		3,800		3,799
0.09%, 10/4/12		7,000		6,998
0.11%, 10/4/12		2,000		1,999
0.14%, 10/4/12		7,400		7,398
0.15%, 10/11/12		4,000		3,998
0.13%, 10/18/12		5,000		4,998
0.14%, 11/1/12		5,000		4,998
0.15%, 11/1/12		5,100		5,097
0.15%, 11/15/12		3,000		2,998
0.15%, 1/3/13		8,000		7,994
0.20%, 3/7/13		2,000		1,997
0.18%, 4/4/13		1,800		1,798
0.19%, 5/30/13		2,300		2,296
				80,565
U.S. Treasury Notes - 10.1%
0.63%, 7/31/12		26,270		26,281
4.63%, 7/31/12		3,000		3,011
1.75%, 8/15/12		24,500		24,550
0.38%, 8/31/12		15,800		15,807
4.13%, 8/31/12		8,020		8,073
1.38%, 10/15/12		4,300		4,316
0.38%, 10/31/12		3,700		3,703
3.88%, 10/31/12		5,000		5,063
0.50%, 11/30/12		1,500		1,502
3.38%, 11/30/12		4,100		4,155
1.38%, 1/15/13		21,800		21,942
0.63%, 1/31/13		2,700		2,708
2.75%, 2/28/13		3,500		3,560
0.75%, 3/31/13		2,700		2,710
1.75%, 4/15/13		3,200		3,239
1.00%, 7/15/13		7,000		7,055
				137,675
Total U.S. Government Obligations (Cost $218,240)				218,240
Investments, at Amortized Cost ($828,811)				828,811
REPURCHASE AGREEMENTS - 38.3%
Joint Repurchase Agreements - 7.1%(2)
Bank of America Securities LLC, dated 6/29/12, repurchase price $21,421
0.14%, 7/2/12		21,421		21,421

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
REPURCHASE AGREEMENTS - 38.3% continued
Joint Repurchase Agreements - 7.1%(2) continued
Morgan Stanley & Co., Inc., dated 6/29/12, repurchase price $21,421 0.16%, 7/2/12	$	21,421	$	21,421
Societe Generale, New York Branch, dated 6/29/12, repurchase price $21,421 0.15%, 7/2/12		21,421		21,421
UBS Securities LLC, dated 6/29/12, repurchase price $32,132 0.13%, 7/2/12		32,131		32,131
				96,394
Repurchase Agreements - 31.2%(3)
Citigroup Global Markets, dated 6/29/12, repurchase price $125,724 0.20%, 7/2/12		125,722		125,722
Merrill Lynch, dated 6/29/12, repurchase price $160,002 0.18%, 7/2/12		160,000		160,000
Societe Generale, New York, dated 6/29/12, repurchase price $115,002 0.19%, 7/2/12		115,000		115,000
UBS Securities LLC, dated 6/15/12, repurchase price $15,003 0.22%, 7/16/12		15,000		15,000
UBS Securities LLC, dated 6/21/12, repurchase price $10,002 0.20%, 7/23/12		10,000		10,000
				425,722
Total Repurchase Agreements (Cost $522,116)				522,116
Total Investments - 99.0% (Cost $1,350,927)(4)				1,350,927
Other Assets less Liabilities - 1.0%				13,721
NET ASSETS - 100.0%			$	1,364,648

(1) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed FNMA and FHLMC in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed.

(2) The nature and terms of the collateral received for the joint repurchase agreements are as follows:

NAME	FAIR  MARKET VALUE (000S)		COUPON RATES	MATURITY DATES
U.S. Treasury Bonds	$	22,709	3.63% - 6.25%	8/15/23 - 5/15/37
U.S. Treasury Notes	$	75,087	0.63% - 3.13%	7/15/14 -7/15/21

(3) The nature and terms of the collateral received for the repurchase agreements are as follows:

NAME	FAIR  MARKET VALUE (000S)		COUPON RATES	MATURITY DATES
FHLMC	$	173,042	2.22% - 4.00%	7/1/34 - 6/1/42
FNMA	$	221,563	2.23% - 5.00%	10/1/25 - 3/1/42
GNMA	$	33,589	4.00%	7/20/41
U.S. Treasury Note	$	10,200	1.50%	12/31/13

(4) The cost for federal income tax purposes was $1,350,927.

Percentages shown are based on Net Assets.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the U.S. Government Money Market Fund’s investments, which are carried at amortized cost, which approximates fair value, as of June 30, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Investments held by U.S. Government Money Market Fund	$	—	$	1,350,927	(1)	$	—	$	1,350,927

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

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 either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities.

Interest rates are reset daily and interest is payable monthly with respect to all joint repurchase agreements.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

FFCB - Federal Farm Credit Bank

FHLB - Federal Home Loan Bank

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

FRN - Floating Rate Notes

GNMA - Government National Mortgage Association

MONEY MARKET FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 76.8%(1)
Federal Farm Credit Bank - 17.5%
FFCB Bonds, 0.63%, 8/10/12	$	5,000	$	5,003
0.15%, 2/6/13		15,000		14,995
0.22%, 6/11/13		5,300		5,299
FFCB Discount Notes, 0.01%, 7/2/12		40,000		40,000
0.09%, 7/5/12		17,000		17,000
0.09%, 7/6/12		9,500		9,500
0.06%, 7/9/12		5,000		5,000
0.07%, 7/9/12		8,500		8,500
0.07%, 7/11/12		4,500		4,500
0.08%, 7/11/12		7,000		7,000
0.04%, 7/12/12		37,500		37,499
0.08%, 8/1/12		8,800		8,799
0.12%, 8/3/12		4,800		4,799
0.09%, 8/6/12		4,500		4,500
0.10%, 8/13/12		5,400		5,399
0.14%, 8/22/12		3,900		3,899
0.07%, 8/28/12		9,000		8,999
0.12%, 9/5/12		9,200		9,198
0.08%, 9/18/12		5,000		4,999
0.10%, 10/2/12		9,500		9,498
0.16%, 11/8/12		2,000		1,999
0.12%, 11/16/12		4,000		3,998
0.15%, 1/3/13		2,700		2,698
0.13%, 1/8/13		5,000		4,996
0.14%, 1/8/13		4,300		4,297
0.17%, 1/9/13		2,300		2,298
0.14%, 1/11/13		3,000		2,998
0.13%, 1/14/13		3,750		3,747
0.14%, 1/28/13		4,500		4,496
0.18%, 1/31/13		4,800		4,795
0.19%, 3/1/13		4,700		4,694
0.19%, 3/4/13		4,000		3,995
0.17%, 3/5/13		4,300		4,295
0.22%, 3/19/13		7,500		7,488
0.21%, 4/5/13		5,000		4,992
0.21%, 4/9/13		3,800		3,794
0.20%, 4/19/13		3,800		3,794
0.20%, 5/6/13		4,800		4,792
0.20%, 6/18/13		3,500		3,493
FFCB FRN, 0.19%, 7/1/12		20,000		20,000
0.21%, 7/1/12		15,000		14,995
0.23%, 7/1/12		23,485		23,488
0.24%, 7/1/12		5,000		5,000
0.25%, 7/1/12		20,000		20,000
0.29%, 7/1/12		15,000		15,001
0.31%, 7/1/12		12,000		11,999
0.37%, 7/1/12		27,100		27,112
0.15%, 7/8/12		15,000		14,999
0.23%, 7/8/12		5,000		5,000
0.17%, 7/10/12		10,000		10,000
0.27%, 7/10/12		15,000		15,008
0.21%, 7/11/12		9,000		9,000
0.22%, 7/11/12		4,000		4,000
0.20%, 7/12/12		9,500		9,495
0.26%, 7/12/12		10,000		10,003
0.15%, 7/13/12		5,000		4,998
0.21%, 7/13/12		8,000		8,000
0.24%, 7/15/12		6,900		6,905
0.21%, 7/16/12		17,000		16,998
0.24%, 7/22/12		9,500		9,501
0.27%, 7/22/12		11,500		11,511
0.28%, 7/22/12		14,040		14,051
0.15%, 7/26/12		3,000		3,000
0.19%, 7/26/12		17,000		16,991
0.31%, 7/26/12		10,000		10,006
0.11%, 7/27/12		10,000		9,999
0.25%, 7/27/12		5,000		5,001
				624,106
Federal Home Loan Bank - 55.4%
FHLB Bonds, 0.25%, 7/16/12		10,000		10,000
0.25%, 7/25/12		8,700		8,701
1.75%, 8/22/12		11,000		11,025
0.23%, 8/28/12		10,000		10,002
0.19%, 11/21/12		8,000		8,001
0.30%, 12/11/12		5,000		5,000
0.18%, 1/9/13		6,000		5,999
1.50%, 1/16/13		2,500		2,517
0.04%, 2/1/13		4,000		3,999
0.17%, 2/1/13		5,000		4,999
0.17%, 2/6/13		10,699		10,699
0.17%, 2/11/13		4,600		4,599
0.19%, 2/12/13		5,000		5,000

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 76.8%(1) continued
Federal Home Loan Bank - 55.4% continued
0.16%, 2/13/13	$	3,000	$	2,999
0.18%, 2/15/13		4,000		3,999
0.19%, 2/15/13		5,200		5,199
0.25%, 2/28/13		6,700		6,700
1.25%, 4/2/13		4,200		4,232
0.25%, 4/11/13		2,500		2,500
0.22%, 5/17/13		3,800		3,799
FHLB Discount Notes, 0.07%, 7/2/12		24,000		24,000
0.07%, 7/5/12		10,700		10,700
0.10%, 7/5/12		84,200		84,199
0.11%, 7/5/12		34,500		34,500
0.12%, 7/5/12		14,000		14,000
0.16%, 7/5/12		8,600		8,600
0.02%, 7/6/12		15,000		15,000
0.11%, 7/6/12		40,000		40,000
0.06%, 7/9/12		16,500		16,500
0.08%, 7/11/12		23,176		23,175
0.09%, 7/11/12		40,000		39,999
0.11%, 7/11/12		32,000		31,999
0.12%, 7/11/12		20,000		19,999
0.13%, 7/11/12		10,000		10,000
0.03%, 7/12/12		25,000		25,000
0.06%, 7/12/12		6,000		6,000
0.09%, 7/13/12		8,800		8,800
0.11%, 7/13/12		29,400		29,399
0.08%, 7/18/12		60,300		60,297
0.10%, 7/18/12		6,100		6,100
0.11%, 7/18/12		23,800		23,799
0.12%, 7/18/12		11,000		10,999
0.14%, 7/18/12		5,000		5,000
0.15%, 7/18/12		7,000		7,000
0.08%, 7/20/12		4,600		4,600
0.12%, 7/25/12		57,700		57,695
0.18%, 7/25/12		8,500		8,499
0.22%, 7/25/12		8,700		8,699
0.11%, 7/27/12		11,200		11,199
0.13%, 7/27/12		22,800		22,798
0.08%, 8/1/12		7,200		7,199
0.09%, 8/1/12		58,300		58,295
0.10%, 8/1/12		16,500		16,499
0.12%, 8/1/12		15,400		15,399
0.15%, 8/1/12		3,800		3,800
0.09%, 8/3/12		40,000		39,996
0.12%, 8/3/12		15,200		15,199
0.13%, 8/3/12		3,000		3,000
0.09%, 8/8/12		43,200		43,195
0.12%, 8/8/12		36,400		36,396
0.16%, 8/8/12		10,000		9,999
0.09%, 8/10/12		47,400		47,395
0.08%, 8/15/12		17,500		17,498
0.09%, 8/15/12		17,500		17,498
0.10%, 8/15/12		8,500		8,499
0.11%, 8/15/12		9,500		9,499
0.12%, 8/15/12		17,500		17,498
0.11%, 8/17/12		60,000		59,991
0.11%, 8/22/12		72,600		72,588
0.13%, 8/22/12		14,000		13,998
0.13%, 8/29/12		8,500		8,498
0.10%, 9/5/12		40,000		39,992
0.11%, 9/5/12		41,000		40,992
0.15%, 9/5/12		7,600		7,598
0.10%, 9/7/12		16,500		16,497
0.10%, 9/10/12		9,500		9,498
0.13%, 9/12/12		5,800		5,799
0.11%, 9/13/12		20,200		20,195
0.13%, 9/14/12		8,800		8,798
0.12%, 10/1/12		8,500		8,497
0.17%, 10/3/12		14,800		14,794
0.13%, 10/15/12		25,000		24,991
0.16%, 10/24/12		14,400		14,393
0.15%, 11/2/12		20,000		19,990
0.16%, 11/7/12		5,300		5,297
0.16%, 11/14/12		18,000		17,989
0.12%, 12/5/12		5,000		4,997
0.15%, 12/7/12		16,900		16,889
0.14%, 1/28/13		4,500		4,496
0.19%, 2/1/13		6,700		6,692
0.18%, 2/4/13		4,700		4,695
0.18%, 2/26/13		8,500		8,490
0.21%, 4/1/13		3,800		3,794
0.22%, 4/2/13		4,900		4,892
0.20%, 5/1/13		10,000		9,983
0.20%, 5/2/13		2,400		2,396
0.20%, 5/3/13		11,300		11,281
0.21%, 5/13/13		6,000		5,989
0.21%, 5/21/13		7,000		6,987

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 76.8%(1) continued
Federal Home Loan Bank - 55.4% continued
0.20%, 6/7/13	$	4,500	$	4,491
0.20%, 6/10/13		3,700		3,693
0.22%, 6/28/13		8,700		8,681
FHLB FRN, 0.21%, 7/1/12		35,000		35,000
0.23%, 7/1/12		15,000		14,992
0.24%, 7/1/12		15,000		14,996
0.25%, 7/1/12		40,000		39,993
0.28%, 7/1/12		14,775		14,775
0.30%, 7/1/12		9,100		9,099
0.31%, 7/1/12		58,045		58,045
0.33%, 7/1/12		25,000		24,997
0.34%, 7/1/12		19,000		18,998
0.35%, 7/1/12		17,000		17,000
0.19%, 7/13/12		25,000		24,998
0.20%, 7/25/12		10,000		10,003
0.21%, 7/25/12		6,300		6,300
0.20%, 7/26/12		5,000		5,000
0.18%, 7/27/12		10,000		9,998
				1,978,423
Tennessee Valley Authority - 3.9%
TVA Discount Notes, 0.09%, 7/12/12		4,200		4,200
0.10%, 7/12/12		33,600		33,599
0.07%, 7/19/12		24,800		24,799
0.08%, 7/26/12		36,000		35,998
0.09%, 8/2/12		25,000		24,998
0.11%, 8/16/12		15,700		15,698
				139,292
Total U.S. Government Agencies (Cost $2,741,821)				2,741,821
U.S. GOVERNMENT OBLIGATIONS - 16.6%
U.S. Treasury Bills - 6.6%
0.07%, 7/5/12		34,700		34,700
0.09%, 7/5/12		7,100		7,100
0.20%, 7/5/12		4,500		4,500
0.20%, 7/12/12		3,800		3,800
0.08%, 7/19/12		20,200		20,199
0.10%, 8/9/12		5,000		4,999
0.14%, 9/20/12		19,600		19,594
0.09%, 10/4/12		31,000		30,991
0.11%, 10/4/12		10,000		9,997
0.14%, 10/4/12		18,800		18,795
0.14%, 10/11/12		10,000		9,996
0.14%, 11/1/12		10,000		9,995
0.15%, 11/1/12		14,900		14,893
0.15%, 11/15/12		8,000		7,995
0.15%, 1/3/13		21,800		21,783
0.20%, 3/7/13		4,800		4,794
0.17%, 4/4/13		6,500		6,491
0.19%, 5/30/13		6,100		6,089
				236,711
U.S. Treasury Notes - 10.0%
0.63%, 7/31/12		70,450		70,480
4.63%, 7/31/12		10,000		10,037
1.75%, 8/15/12		53,500		53,608
0.38%, 8/31/12		41,400		41,419
4.13%, 8/31/12		22,200		22,348
1.38%, 10/15/12		25,600		25,692
0.38%, 10/31/12		9,200		9,208
3.88%, 10/31/12		12,700		12,859
0.50%, 11/30/12		3,700		3,706
3.38%, 11/30/12		10,100		10,235
1.38%, 1/15/13		67,600		68,043
0.63%, 1/31/13		6,900		6,919
0.63%, 2/28/13		4,500		4,513
1.75%, 4/15/13		7,800		7,895
1.00%, 7/15/13		8,500		8,566
				355,528
Total U.S. Government Obligations (Cost $592,239)				592,239
Investments, at Amortized Cost ($3,334,060)				3,334,060

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
REPURCHASE AGREEMENTS - 7.4%
Repurchase Agreements - 7.4%(2)
Citigroup Global Markets, dated 6/29/12, repurchase price $150,003 0.20%, 7/2/12	$	150,000	$	150,000
Credit Suisse Securities, dated 6/29/12, repurchase price $114,755 0.16%, 7/2/12		114,753		114,753
				264,753
Total Repurchase Agreements (Cost $264,753)				264,753
Total Investments - 100.8% (Cost $3,598,813)(3)				3,598,813
Liabilities less Other Assets - (0.8)%				(28,349	)
NET ASSETS - 100.0%			$	3,570,464

(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 repurchase agreements are as follows:

NAME	FAIR MARKET VALUE (000S)		COUPON RATES	MATURITY DATES
FHLMC	$	65,240	4.50%	8/1/25 - 7/1/40
FNMA	$	89,260	3.38% - 5.00%	10/1/20 - 2/1/42
GNMA	$	118,198	5.35% - 6.00%	11/15/39 - 5/15/53

(3) The cost for federal income tax purposes was $3,598,813.

Percentages shown are based on Net Assets.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the U.S. Government Select Money Market Fund’s investments, which are carried at amortized cost, which approximates fair value, as of June 30, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Investments held by U.S. Government Select Money Market Fund	$	—	$	3,598,813	(1)	$	—	$	3,598,813

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

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 either the stated date on the security or the next interest reset/puttable date for floating and variable rate securities.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

FFCB - Federal Farm Credit Bank

FHLB - Federal Home Loan Bank

FRN - Floating Rate Notes

GNMA - Government National Mortgage Association

TVA - Tennessee Valley Authority

MONEY MARKET FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

BOND INDEX FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2.2%
Automobile - 0.1%
Ally Auto Receivables Trust, Series 2010-3, Class A4,
1.55%, 8/17/15	$	100	$	101
Ally Auto Receivables Trust, Series 2011-5, Class A3,
0.99%, 11/15/15		50		50
Ally Auto Receivables Trust, Series 2011-5, Class A4,
1.32%, 7/15/16		50		51
Ally Auto Receivables Trust, Series 2012-1, Class A3,
0.93%, 2/16/16		100		101
Ally Auto Receivables Trust, Series 2012-2, Class A3,
0.74%, 4/15/16		150		150
Ally Auto Receivables Trust, Series 2012-3, Class A3,
0.85%, 8/15/16		100		100
AmeriCredit Automobile Receivables Trust, Series 2012-1, Class A3,
1.23%, 9/8/16		100		101
AmeriCredit Automobile Receivables Trust, Series 2012-2, Class A3,
1.05%, 10/11/16		50		50
AmeriCredit Automobile Receivables Trust, Series 2012-3, Class A3,
0.96%, 1/9/17		75		75
Ford Credit Auto Owner Trust, Series 2011-A, Class A4,
1.65%, 5/15/16		65		66
Ford Credit Auto Owner Trust, Series 2012-A, Class A3,
0.84%, 8/15/16		175		176
Ford Credit Auto Owner Trust, Series 2012-A, Class A4,
1.15%, 6/15/17		125		126
Ford Credit Auto Owner Trust, Series 2012-B, Class A3,
0.72%, 12/15/16		200		200
Honda Auto Receivables Owner Trust, Series 2010-3, Class A4,
0.94%, 12/21/16		75		75
Nissan Auto Receivables Owner Trust, Series 2010-A, Class A4,
1.31%, 9/15/16		150		152
Nissan Auto Receivables Owner Trust, Series 2011-B, Class A3,
0.95%, 2/16/16		200		201
Nissan Auto Receivables Owner Trust, Series 2011-B, Class A4,
1.24%, 1/16/18		50		51
				1,826
Commercial Mortgage-Backed Securities - 1.9%
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2004-4, Class A6,
4.88%, 7/10/42		350		372
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-6, Class AJ,
5.37%, 9/10/47		325		342
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2006-2, Class A4,
5.92%, 5/10/45		200		228
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2006-4, Class A4,
5.63%, 7/10/46		205		231
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2006-4, Class AM,
5.68%, 7/10/46		400		425
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2006-5, Class A4,
5.41%, 9/10/47		250		277
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2006-6, Class AM,
5.39%, 10/10/45		500		484
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2007-1, Class A4,
5.45%, 1/15/49		450		509
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2008-1, Class A4,
6.39%, 2/10/51		500		587
Bear Stearns Commercial Mortgage Securities, Series 2004-PWR4, Class A3,
5.47%, 6/11/41		500		534
Bear Stearns Commercial Mortgage Securities, Series 2004-T16, Class A6,
4.75%, 2/13/46		100		107
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class A4,
4.67%, 6/11/41		500		542
Bear Stearns Commercial Mortgage Securities, Series 2006-PW13, Class A4,
5.54%, 9/11/41		660		752
Bear Stearns Commercial Mortgage Securities, Series 2006-PW14, Class A4,
5.20%, 12/11/38		500		565

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2.2% continued
Commercial Mortgage-Backed Securities - 1.9% continued
Bear Stearns Commercial Mortgage Securities, Series 2006-T24, Class A4,
5.54%, 10/12/41	$	250	$	286
Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A4,
5.91%, 6/11/40		250		286
Bear Stearns Commercial Mortgage Securities, Series 2007-PW18, Class A4,
5.70%, 6/11/50		250		288
Bear Stearns Commercial Mortgage Securities, Series 2007-T26, Class A4,
5.47%, 1/12/45		500		572
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class A4,
5.74%, 9/11/42		1,050		1,222
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class AM,
5.84%, 9/11/42		250		273
CFCRE Commercial Mortgage Trust, Series 2011-C2, Class A2,
3.06%, 12/15/47		200		208
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A3,
5.92%, 3/15/49		240		273
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class AJ,
5.92%, 3/15/49		200		177
Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4,
5.43%, 10/15/49		500		569
Citigroup Commercial Mortgage Trust, Series 2007-C6, Class AM,
5.89%, 12/10/49		150		158
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5,
5.62%, 10/15/48		700		792
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD5, Class A4,
5.89%, 11/15/44		500		580
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B,
6.20%, 12/10/49		130		148
Commercial Mortgage Pass Through Certificates, Series 2005-C6, Class A5A,
5.12%, 6/10/44		1,000		1,104
Commercial Mortgage Pass Through Certificates, Series 2006-C8, Class A4,
5.31%, 12/10/46		500		562
Commercial Mortgage Pass Through Certificates, Series 2012-LC4, Class A4,
3.29%, 12/10/44		100		101
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1, Class A4,
5.01%, 2/15/38		1,000		1,084
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C5, Class A4,
5.10%, 8/15/38		600		662
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C6, Class AJ,
5.23%, 12/15/40		390		394
Credit Suisse Mortgage Capital Certificates, Series 2006-C1, Class A4,
5.59%, 2/15/39		500		559
Credit Suisse Mortgage Capital Certificates, Series 2006-C4, Class A3,
5.47%, 9/15/39		500		554
Credit Suisse Mortgage Capital Certificates, Series 2006-C5, Class A3,
5.31%, 12/15/39		500		555
CW Capital Cobalt Ltd., Series 2006-C1, Class A4,
5.22%, 8/15/48		250		276
DBUBS Mortgage Trust, Series 2011-LC3A, Class A2,
3.64%, 8/10/44		175		189
GE Capital Commercial Mortgage Corp., Series 2005-C2, Class A4,
4.98%, 5/10/43		200		218
GE Capital Commercial Mortgage Corp., Series 2007-C1, Class A4,
5.54%, 12/10/49		300		328
Greenwich Capital Commercial Funding Corp., Series 2004-GG1, Class A7,
5.32%, 6/10/36		500		530
Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class A4,
4.80%, 8/10/42		500		539
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4,
6.07%, 7/10/38		275		313

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2.2% continued
Commercial Mortgage-Backed Securities - 1.9% continued
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4,
5.74%, 12/10/49	$	400	$	443
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4,
5.44%, 3/10/39		400		444
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A6,
5.40%, 8/10/38		250		268
GS Mortgage Securities Corp. II, Series 2005-GG4, Class A4A,
4.75%, 7/10/39		200		216
GS Mortgage Securities Corp. II, Series 2006-GG6, Class A4,
5.55%, 4/10/38		300		334
GS Mortgage Securities Corp. II, Series 2007-GG10, Class A4,
5.98%, 8/10/45		525		583
GS Mortgage Securities Corp. II, Series 2011-GC5, Class A2,
3.00%, 8/10/44		125		132
GS Mortgage Securities Corp. II, Series 2011-GC5, Class A4,
3.71%, 8/10/44		150		157
GS Mortgage Securities Corp. II, Series 2012-GC6, Class A3,
3.48%, 1/10/45		200		206
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CB13, Class A4,
5.46%, 1/12/43		500		546
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP2, Class A4,
4.74%, 7/15/42		300		326
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP5, Class AJ,
5.48%, 12/15/44		370		373
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP9, Class A3,
5.34%, 5/15/47		500		553
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB18, Class A4,
5.44%, 6/12/47		600		677
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A4,
5.92%, 2/12/49		700		793
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4,
6.01%, 6/15/49		1,063		1,167
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD12, Class A4,
5.88%, 2/15/51		215		244
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3,
5.42%, 1/15/49		500		559
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C5, Class A3,
4.17%, 8/15/46		200		218
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2012-C6, Class A3,
3.51%, 5/15/45		200		207
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2012-CBX, Class A4,
3.48%, 6/15/45		175		178
LB-UBS Commercial Mortgage Trust, Series 2004-C1, Class A4,
4.57%, 1/15/31		540		566
LB-UBS Commercial Mortgage Trust, Series 2004-C2, Class A4,
4.37%, 3/15/36		520		544
LB-UBS Commercial Mortgage Trust, Series 2005-C2, Class A5,
5.15%, 4/15/30		1,000		1,098
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class AM,
5.71%, 3/15/39		185		198
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4,
5.37%, 9/15/39		800		909
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A3,
5.43%, 2/15/40		500		558
LB-UBS Commercial Mortgage Trust, Series 2008-C1, Class A2,
6.31%, 4/15/41		500		593

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2.2% continued
Commercial Mortgage-Backed Securities - 1.9% continued
Merrill Lynch Mortgage Trust, Series 2004-KEY2, Class A2,
4.17%, 8/12/39	$	38	$	38
Merrill Lynch Mortgage Trust, Series 2005-MCP1, Class A2,
4.56%, 6/12/43		38		38
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A4,
5.85%, 5/12/39		150		170
Merrill Lynch Mortgage Trust, Series 2007-C1, Class A4,
6.04%, 6/12/50		650		722
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4,
5.49%, 3/12/51		150		163
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-8, Class A3,
6.16%, 8/12/49		500		550
Morgan Stanley Capital I, Inc., Series 2004-HQ4, Class A7,
4.97%, 4/14/40		1,400		1,471
Morgan Stanley Capital I, Inc., Series 2004-T13, Class A4,
4.66%, 9/13/45		500		521
Morgan Stanley Capital I, Inc., Series 2005-HQ5, Class A4,
5.17%, 1/14/42		500		539
Morgan Stanley Capital I, Inc., Series 2005-HQ7, Class A4,
5.37%, 11/14/42		520		577
Morgan Stanley Capital I, Inc., Series 2006-IQ11, Class A4,
5.89%, 10/15/42		500		563
Morgan Stanley Capital I, Inc., Series 2006-IQ12, Class A4,
5.33%, 12/15/43		505		574
Morgan Stanley Capital I, Inc., Series 2006-T21, Class A4,
5.16%, 10/12/52		500		557
Morgan Stanley Capital I, Inc., Series 2006-T23, Class A4,
5.99%, 8/12/41		500		580
Morgan Stanley Capital I, Inc., Series 2007-IQ15, Class A4,
6.08%, 6/11/49		300		340
Morgan Stanley Capital I, Inc., Series 2007-T27, Class A4,
5.82%, 6/11/42		500		581
Morgan Stanley Capital I, Inc., Series 2011-C3, Class A2,
3.22%, 7/15/49		400		426
Morgan Stanley Capital I, Inc., Series 2012-C4, Class A4,
3.24%, 3/15/45		150		152
UBS Commercial Mortgage Trust, Series 2012-C1, Class A3,
3.40%, 5/10/45		175		178
UBS-Citigroup Commercial Mortgage Trust, Series 2011-C1, Class A3,
3.60%, 1/10/45		150		158
Wachovia Bank Commercial Mortgage Trust, Series 2004-C15, Class A4,
4.80%, 10/15/41		1,000		1,073
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A4,
5.44%, 12/15/44		500		555
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class AM,
5.49%, 12/15/44		250		266
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A4,
5.42%, 1/15/45		200		222
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class AM,
5.47%, 1/15/45		500		540
Wachovia Bank Commercial Mortgage Trust, Series 2006-C24, Class AM,
5.61%, 3/15/45		125		132
Wachovia Bank Commercial Mortgage Trust, Series 2006-C26, Class AM,
6.17%, 6/15/45		450		491
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4,
5.57%, 10/15/48		500		554
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A4,
5.51%, 4/15/47		250		274
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A3,
5.93%, 6/15/49		200		218

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2.2% continued
Commercial Mortgage-Backed Securities - 1.9% continued
WF-RBS Commercial Mortgage Trust, Series 2012-C6, Class A4,
3.44%, 4/15/45	$	175	$	180
				46,248
Credit Card - 0.1%
BA Credit Card Trust, Series 2007-A1, Class A1,
5.17%, 6/15/19		185		218
Chase Issuance Trust, Series 2012-A3, Class A3,
0.79%, 6/15/17		275		275
Citibank Credit Card Issuance Trust, Series 2003-A10, Class A10,
4.75%, 12/10/15		130		138
Citibank Credit Card Issuance Trust, Series 2004-A8, Class A8,
4.90%, 12/12/16		350		386
Citibank Credit Card Issuance Trust, Series 2005-A9, Class A9,
5.10%, 11/20/17		170		194
Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3,
6.15%, 6/15/39		100		135
Citibank Credit Card Issuance Trust, Series 2009-A4, Class A4,
4.90%, 6/23/16		500		542
Discover Card Master Trust, Series 2007-A1, Class A1,
5.65%, 3/16/20		300		363
Discover Card Master Trust, Series 2012-A1, Class A1,
0.81%, 8/15/17		200		200
Discover Card Master Trust, Series 2012-A3, Class A3,
0.86%, 11/15/17		200		200
MBNA Credit Card Master Note Trust, Series 2004-B1, Class B1,
4.45%, 8/15/16		120		127
				2,778
Utilities - 0.1%
AEP Texas Central Transition Funding LLC, Series 2012-1, Class A3,
2.84%, 3/1/26		200		207
CenterPoint Energy Transition Bond Co. LLC, Series 2009-1, Class A2,
3.46%, 8/15/19		500		549
CenterPoint Energy Transition Bond Co. LLC, Series 2009-1, Class A3,
4.24%, 8/15/23		500		581
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A1,
0.90%, 4/15/18		125		126
Entergy Texas Restoration Funding LLC, Series 2009-A, Class A3,
4.38%, 11/1/23		100		116
				1,579
Total Asset-Backed Securities
(Cost $47,390)				52,431
CORPORATE BONDS - 17.1%
Advertising - 0.0%
Omnicom Group, Inc.,
4.45%, 8/15/20		300		324
Aerospace/Defense - 0.3%
Boeing (The) Co.,
3.75%, 11/20/16		400		444
6.13%, 2/15/33		135		177
6.63%, 2/15/38		100		141
5.88%, 2/15/40		75		99
General Dynamics Corp.,
5.38%, 8/15/15		150		170
2.25%, 7/15/16		150		157
3.88%, 7/15/21		250		281
Goodrich Corp.,
3.60%, 2/1/21		250		270
L-3 Communications Corp.,
3.95%, 11/15/16		150		159
5.20%, 10/15/19		250		274
4.95%, 2/15/21		40		43
Lockheed Martin Corp.,
7.65%, 5/1/16		100		121
2.13%, 9/15/16		65		67
4.25%, 11/15/19		500		559
8.50%, 12/1/29		75		109
6.15%, 9/1/36		275		344
Northrop Grumman Corp.,
1.85%, 11/15/15		200		203
5.05%, 8/1/19		170		196
5.05%, 11/15/40		250		282
Raytheon Co.,
1.40%, 12/15/14		55		56

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Aerospace/Defense - 0.3% continued
1.63%, 10/15/15	$	350	$	359
4.40%, 2/15/20		510		579
4.70%, 12/15/41		100		110
United Technologies Corp.,
4.88%, 5/1/15		275		304
1.20%, 6/1/15		200		202
5.38%, 12/15/17		390		466
4.50%, 4/15/20		450		522
3.10%, 6/1/22		45		47
7.50%, 9/15/29		100		142
6.05%, 6/1/36		100		129
6.13%, 7/15/38		175		228
4.50%, 6/1/42		50		55
				7,295
Agriculture - 0.3%
Altria Group, Inc.,
9.70%, 11/10/18		950		1,315
9.25%, 8/6/19		250		347
4.75%, 5/5/21		725		822
9.95%, 11/10/38		150		238
10.20%, 2/6/39		100		163
Archer-Daniels-Midland Co.,
5.45%, 3/15/18		325		386
4.48%, 3/1/21		150		173
5.38%, 9/15/35		175		206
6.45%, 1/15/38		50		67
5.77%, 3/1/41		130		165
Bunge Ltd. Finance Corp.,
5.35%, 4/15/14		100		105
4.10%, 3/15/16		140		146
3.20%, 6/15/17		250		251
8.50%, 6/15/19		60		75
Philip Morris International, Inc.,
2.50%, 5/16/16		100		105
1.63%, 3/20/17		500		505
5.65%, 5/16/18		625		755
4.50%, 3/26/20		250		289
4.13%, 5/17/21		250		279
2.90%, 11/15/21		300		309
6.38%, 5/16/38		280		375
Reynolds American, Inc.,
7.63%, 6/1/16		150		181
				7,257
Airlines - 0.0%
Continental Airlines, Series 2009-2, Class A, Pass Through Trust,
7.25%, 11/10/19		338		381
Apparel - 0.0%
VF Corp.,
3.50%, 9/1/21		150		160
6.00%, 10/15/33		100		123
6.45%, 11/1/37		30		39
				322
Auto Manufacturers - 0.2%
Daimler Finance N.A. LLC,
6.50%, 11/15/13		850		911
8.50%, 1/18/31		175		268
Ford Motor Co.,
7.45%, 7/16/31		350		438
Toyota Motor Credit Corp.,
1.38%, 8/12/13		500		504
1.25%, 11/17/14		150		151
1.00%, 2/17/15		500		501
2.80%, 1/11/16		300		315
2.00%, 9/15/16		165		168
2.05%, 1/12/17		250		256
1.75%, 5/22/17		150		151
4.50%, 6/17/20		300		341
				4,004
Auto Parts & Equipment - 0.0%
Johnson Controls, Inc.,
2.60%, 12/1/16		75		78
5.00%, 3/30/20		155		175
5.70%, 3/1/41		250		295
				548
Banks - 3.0%
Bank of America Corp.,
7.38%, 5/15/14		1,000		1,075
5.38%, 6/15/14		50		52
5.13%, 11/15/14		400		417
4.50%, 4/1/15		65		67
4.75%, 8/1/15		325		338
3.63%, 3/17/16		185		186
6.50%, 8/1/16		1,000		1,098
5.75%, 8/15/16		100		104
5.63%, 10/14/16		200		213

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Banks - 3.0% continued
3.88%, 3/22/17	$	150	$	153
6.00%, 9/1/17		250		270
5.75%, 12/1/17		865		923
5.65%, 5/1/18		450		481
7.63%, 6/1/19		540		635
5.88%, 1/5/21		440		480
5.00%, 5/13/21		400		413
5.70%, 1/24/22		1,665		1,834
5.88%, 2/7/42		250		274
Bank of America N.A.,
5.30%, 3/15/17		1,075		1,119
6.00%, 10/15/36		250		263
Bank of New York Mellon (The) Corp.,
4.30%, 5/15/14		200		213
2.95%, 6/18/15		200		211
2.30%, 7/28/16		150		155
5.50%, 12/1/17		100		116
5.45%, 5/15/19		75		88
3.55%, 9/23/21		955		1,016
Bank One Corp.,
7.75%, 7/15/25		54		67
BB&T Capital Trust II,
6.75%, 6/7/36		75		74
BB&T Corp.,
2.05%, 4/28/14		250		255
5.20%, 12/23/15		600		660
3.95%, 4/29/16		250		272
2.15%, 3/22/17		250		254
Capital One Financial Corp.,
7.38%, 5/23/14		775		851
2.15%, 3/23/15		180		181
5.50%, 6/1/15		250		272
3.15%, 7/15/16		195		202
Citigroup, Inc.,
6.50%, 8/19/13		100		105
5.13%, 5/5/14		200		209
6.38%, 8/12/14		500		535
5.00%, 9/15/14		1,300		1,333
2.65%, 3/2/15		150		150
5.30%, 1/7/16		800		849
3.95%, 6/15/16		1,000		1,025
4.45%, 1/10/17		250		262
5.50%, 2/15/17		225		235
6.00%, 8/15/17		100		110
6.13%, 11/21/17		1,075		1,191
6.13%, 5/15/18		350		391
8.50%, 5/22/19		1,500		1,853
4.50%, 1/14/22		735		759
6.63%, 6/15/32		100		104
6.00%, 10/31/33		350		350
6.88%, 3/5/38		900		1,101
8.13%, 7/15/39		360		480
5.88%, 1/30/42		30		33
Fifth Third Bancorp,
5.45%, 1/15/17		75		82
3.50%, 3/15/22		200		202
8.25%, 3/1/38		275		373
Goldman Sachs Group (The), Inc.,
4.75%, 7/15/13		350		360
5.25%, 10/15/13		150		156
6.00%, 5/1/14		650		687
5.50%, 11/15/14		150		158
5.13%, 1/15/15		500		522
3.30%, 5/3/15		100		100
5.35%, 1/15/16		1,100		1,155
3.63%, 2/7/16		220		220
5.75%, 10/1/16		250		267
5.63%, 1/15/17		300		315
6.25%, 9/1/17		1,300		1,413
5.95%, 1/18/18		835		894
6.15%, 4/1/18		815		884
5.38%, 3/15/20		1,295		1,333
5.25%, 7/27/21		540		549
5.75%, 1/24/22		750		792
5.95%, 1/15/27		150		149
6.75%, 10/1/37		1,165		1,142
6.25%, 2/1/41		300		313
HSBC Bank USA N.A.,
4.63%, 4/1/14		425		443
4.88%, 8/24/20		300		309
7.00%, 1/15/39		350		410
HSBC USA, Inc.,
2.38%, 2/13/15		150		152
JPMorgan Chase & Co.,
5.13%, 9/15/14		1,100		1,169
5.25%, 5/1/15		350		377
5.15%, 10/1/15		1,050		1,127

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Banks - 3.0% continued
3.15%, 7/5/16	$	685	$	704
6.13%, 6/27/17		100		111
6.00%, 1/15/18		1,610		1,848
6.30%, 4/23/19		500		584
4.95%, 3/25/20		375		413
4.40%, 7/22/20		300		316
4.63%, 5/10/21		250		267
4.35%, 8/15/21		615		649
4.50%, 1/24/22		750		808
6.40%, 5/15/38		554		666
5.60%, 7/15/41		300		340
5.40%, 1/6/42		100		110
JPMorgan Chase Bank N.A.,
5.88%, 6/13/16		200		219
6.00%, 10/1/17		650		728
KeyBank N.A.,
5.80%, 7/1/14		250		268
5.45%, 3/3/16		100		111
KeyCorp,
3.75%, 8/13/15		250		265
5.10%, 3/24/21		25		28
M&I Marshall & Ilsley Bank,
4.85%, 6/16/15		130		139
Manufacturers & Traders Trust Co.,
6.63%, 12/4/17		250		292
Mellon Funding Corp.,
5.00%, 12/1/14		100		106
Morgan Stanley,
4.75%, 4/1/14		1,300		1,311
4.20%, 11/20/14		280		280
4.10%, 1/26/15		500		497
6.00%, 4/28/15		2,025		2,093
5.38%, 10/15/15		200		204
3.80%, 4/29/16		350		339
5.45%, 1/9/17		325		328
4.75%, 3/22/17		250		249
6.25%, 8/28/17		350		361
5.95%, 12/28/17		175		180
6.63%, 4/1/18		850		889
7.30%, 5/13/19		645		697
5.63%, 9/23/19		475		470
5.50%, 7/28/21		565		557
6.25%, 8/9/26		100		99
National City Corp.,
4.90%, 1/15/15		200		217
PNC Bank N.A.,
4.88%, 9/21/17		100		111
PNC Funding Corp.,
4.25%, 9/21/15		250		272
2.70%, 9/19/16		60		62
6.70%, 6/10/19		600		746
4.38%, 8/11/20		500		552
3.30%, 3/8/22		150		153
State Street Corp.,
4.30%, 5/30/14		345		367
SunTrust Bank,
7.25%, 3/15/18		125		145
SunTrust Banks, Inc.,
3.60%, 4/15/16		100		104
U.S. Bancorp,
1.38%, 9/13/13		300		303
1.13%, 10/30/13		70		70
3.15%, 3/4/15		215		227
2.45%, 7/27/15		70		73
2.20%, 11/15/16		75		77
1.65%, 5/15/17		200		201
4.13%, 5/24/21		200		224
3.00%, 3/15/22		115		118
U.S. Bank N.A.,
6.30%, 2/4/14		300		325
4.95%, 10/30/14		250		272
4.80%, 4/15/15		100		110
UnionBanCal Corp.,
3.50%, 6/18/22		150		151
Wachovia Bank N.A.,
5.85%, 2/1/37		250		289
6.60%, 1/15/38		300		379
Wachovia Corp.,
4.88%, 2/15/14		250		262
5.25%, 8/1/14		150		160
5.63%, 10/15/16		550		620
5.75%, 6/15/17		350		408
5.75%, 2/1/18		600		710
Wells Fargo & Co.,
4.63%, 4/15/14		415		434
5.00%, 11/15/14		100		107
1.25%, 2/13/15		500		499

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Banks - 3.0% continued
3.63%, 4/15/15	$	250	$	266
1.50%, 7/1/15		250		250
5.13%, 9/15/16		475		528
2.63%, 12/15/16		250		257
2.10%, 5/8/17		250		251
5.63%, 12/11/17		445		520
4.60%, 4/1/21		500		558
3.50%, 3/8/22		750		772
5.38%, 2/7/35		125		144
Wells Fargo Capital X,
5.95%, 12/15/36		100		100
				72,330
Beverages - 0.4%
Anheuser-Busch Cos. LLC,
4.95%, 1/15/14		175		185
5.50%, 1/15/18		375		445
5.95%, 1/15/33		100		124
6.45%, 9/1/37		50		68
Anheuser-Busch InBev Worldwide, Inc.,
1.50%, 7/14/14		85		86
4.13%, 1/15/15		500		539
2.88%, 2/15/16		75		79
5.38%, 1/15/20		450		536
8.20%, 1/15/39		1,000		1,590
Beam, Inc.,
5.38%, 1/15/16		86		96
1.88%, 5/15/17		65		65
Bottling Group LLC,
5.50%, 4/1/16		675		782
Coca-Cola (The) Co.,
0.75%, 3/13/15		150		150
1.80%, 9/1/16		65		67
1.65%, 3/14/18		125		127
3.15%, 11/15/20		1,115		1,195
3.30%, 9/1/21		250		268
Coca-Cola Enterprises, Inc.,
1.13%, 11/12/13		250		251
Coca-Cola Refreshments USA, Inc.,
7.38%, 3/3/14		125		138
Dr Pepper Snapple Group, Inc.,
2.90%, 1/15/16		135		141
2.60%, 1/15/19		80		81
Molson Coors Brewing Co.,
2.00%, 5/1/17		60		61
5.00%, 5/1/42		100		108
PepsiAmericas, Inc.,
4.88%, 1/15/15		50		55
PepsiCo, Inc.,
0.80%, 8/25/14		585		587
3.10%, 1/15/15		450		474
0.75%, 3/5/15		60		60
2.50%, 5/10/16		200		210
5.00%, 6/1/18		650		759
4.50%, 1/15/20		300		341
2.75%, 3/5/22		385		389
4.88%, 11/1/40		165		193
4.00%, 3/5/42		50		52
				10,302
Biotechnology - 0.2%
Amgen, Inc.,
4.85%, 11/18/14		175		190
2.30%, 6/15/16		100		103
2.50%, 11/15/16		250		260
5.85%, 6/1/17		375		442
4.50%, 3/15/20		165		181
3.88%, 11/15/21		250		264
6.38%, 6/1/37		100		119
6.40%, 2/1/39		100		119
5.75%, 3/15/40		500		557
5.15%, 11/15/41		500		522
5.65%, 6/15/42		100		112
5.38%, 5/15/43		200		216
Genentech, Inc.,
4.75%, 7/15/15		150		166
Gilead Sciences, Inc.,
3.05%, 12/1/16		100		105
5.65%, 12/1/41		330		385
Life Technologies Corp.,
3.50%, 1/15/16		250		260
6.00%, 3/1/20		500		587
				4,588
Building Materials - 0.0%
CRH America, Inc.,
6.00%, 9/30/16		100		110
Martin Marietta Materials, Inc.,
6.60%, 4/15/18		100		110
				220

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Chemicals - 0.3%
Air Products & Chemicals, Inc.,
2.00%, 8/2/16	$	145	$	149
Dow Chemical (The) Co.,
7.60%, 5/15/14		1,000		1,113
5.70%, 5/15/18		100		117
4.13%, 11/15/21		200		215
7.38%, 11/1/29		100		134
9.40%, 5/15/39		300		478
5.25%, 11/15/41		400		442
E.I. Du Pont de Nemours & Co.,
1.75%, 3/25/14		200		204
3.25%, 1/15/15		350		372
5.25%, 12/15/16		400		472
6.00%, 7/15/18		615		764
6.50%, 1/15/28		100		132
Eastman Chemical Co.,
2.40%, 6/1/17		60		61
4.80%, 9/1/42		100		102
Ecolab, Inc.,
3.00%, 12/8/16		175		185
4.35%, 12/8/21		250		277
5.50%, 12/8/41		105		126
Lubrizol Corp.,
6.50%, 10/1/34		50		65
Monsanto Co.,
2.75%, 4/15/16		50		53
5.13%, 4/15/18		240		284
5.50%, 8/15/25		50		62
Mosaic (The) Co.,
4.88%, 11/15/41		100		106
PPG Industries, Inc.,
1.90%, 1/15/16		50		51
6.65%, 3/15/18		220		268
7.70%, 3/15/38		50		73
Praxair, Inc.,
4.50%, 8/15/19		400		462
4.05%, 3/15/21		100		111
2.45%, 2/15/22		250		247
Rohm & Haas Co.,
6.00%, 9/15/17		250		291
Sherwin-Williams (The) Co.,
3.13%, 12/15/14		300		315
				7,731
Commercial Services - 0.1%
ADT (The) Corp.,
2.25%, 7/15/17(1) (2)		150		151
Board of Trustees of The Leland Stanford Junior University (The),
4.75%, 5/1/19		200		238
California Institute of Technology,
4.70%, 11/1/11(3)		110		121
George Washington University (The),
3.49%, 9/15/22		50		53
Massachusetts Institute of Technology,
5.60%, 7/1/11(3)		190		264
Princeton University,
4.95%, 3/1/19		100		119
SAIC, Inc.,
5.95%, 12/1/40		200		224
Trustees of Dartmouth College,
4.75%, 6/1/19		170		201
University of Pennsylvania,
4.67%, 9/1/12(4)		100		115
Vanderbilt University,
5.25%, 4/1/19		100		121
Western Union (The) Co.,
5.93%, 10/1/16		355		412
6.20%, 11/17/36		50		53
6.20%, 6/21/40		70		76
				2,148
Computers - 0.4%
Dell, Inc.,
2.30%, 9/10/15		350		361
5.65%, 4/15/18		180		207
5.88%, 6/15/19		100		118
6.50%, 4/15/38		50		59
Hewlett-Packard Co.,
6.13%, 3/1/14		1,000		1,073
1.55%, 5/30/14		125		126
4.75%, 6/2/14		700		740
2.13%, 9/13/15		200		202
2.20%, 12/1/15		250		251
2.65%, 6/1/16		250		256
3.00%, 9/15/16		500		514
3.30%, 12/9/16		300		314
2.60%, 9/15/17		200		201
6.00%, 9/15/41		500		551

FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Computers - 0.4% continued
International Business Machines Corp.,
1.00%, 8/5/13	$	550	$	553
1.25%, 5/12/14		100		101
0.75%, 5/11/15		100		100
1.95%, 7/22/16		500		514
1.25%, 2/6/17		250		251
5.70%, 9/14/17		1,450		1,743
8.38%, 11/1/19		50		71
2.90%, 11/1/21		200		209
6.50%, 1/15/28		100		135
5.60%, 11/30/39		275		358
				9,008
Cosmetics/Personal Care - 0.1%
Colgate-Palmolive Co.,
1.30%, 1/15/17		250		253
2.30%, 5/3/22		165		166
Estee Lauder (The) Cos., Inc.,
6.00%, 5/15/37		100		128
Procter & Gamble (The) Co.,
4.85%, 12/15/15		1,208		1,369
1.45%, 8/15/16		50		51
4.70%, 2/15/19		200		237
2.30%, 2/6/22		215		215
5.80%, 8/15/34		100		134
5.55%, 3/5/37		50		67
				2,620
Diversified Financial Services - 1.4%
American Express Co.,
4.88%, 7/15/13		675		702
6.15%, 8/28/17		800		948
7.00%, 3/19/18		300		371
8.13%, 5/20/19		550		732
8.15%, 3/19/38		170		269
American Express Credit Corp.,
1.75%, 6/12/15		50		51
2.80%, 9/19/16		1,250		1,304
2.38%, 3/24/17		250		256
Ameriprise Financial, Inc.,
7.30%, 6/28/19		75		94
5.30%, 3/15/20		95		108
Aon Corp.,
5.00%, 9/30/20		350		388
Bear Stearns (The) Cos. LLC,
5.30%, 10/30/15		850		922
5.55%, 1/22/17		50		54
6.40%, 10/2/17		150		173
7.25%, 2/1/18		535		640
BlackRock, Inc.,
3.50%, 12/10/14		275		292
1.38%, 6/1/15		70		71
5.00%, 12/10/19		130		149
4.25%, 5/24/21		150		164
Boeing Capital Corp.,
2.13%, 8/15/16		125		130
Caterpillar Financial Services Corp.,
6.13%, 2/17/14		100		109
4.75%, 2/17/15		275		301
1.10%, 5/29/15		40		40
2.65%, 4/1/16		150		157
2.05%, 8/1/16		150		155
1.75%, 3/24/17		100		101
5.85%, 9/1/17		592		710
5.45%, 4/15/18		300		358
Charles Schwab (The) Corp.,
4.95%, 6/1/14		120		129
4.45%, 7/22/20		250		277
Credit Suisse USA, Inc.,
5.50%, 8/15/13		450		469
4.88%, 1/15/15		375		402
5.38%, 3/2/16		75		83
7.13%, 7/15/32		250		326
Ford Motor Credit Co. LLC,
4.25%, 2/3/17		1,500		1,572
3.00%, 6/12/17		640		636
5.88%, 8/2/21		500		556
General Electric Capital Corp.,
2.10%, 1/7/14		300		305
5.90%, 5/13/14		370		402
3.75%, 11/14/14		750		787
4.88%, 3/4/15		350		380
1.63%, 7/2/15		150		150
5.00%, 1/8/16		100		110
2.95%, 5/9/16		200		206
2.90%, 1/9/17		750		775
2.30%, 4/27/17		250		252

NORTHERN FUNDS QUARTERLY REPORT    11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Diversified Financial Services - 1.4% continued
5.63%, 9/15/17	$	1,175	$	1,348
5.63%, 5/1/18		2,575		2,960
5.50%, 1/8/20		200		229
4.63%, 1/7/21		1,400		1,540
4.65%, 10/17/21		1,750		1,943
6.75%, 3/15/32		150		186
6.15%, 8/7/37		150		177
5.88%, 1/14/38		600		689
6.88%, 1/10/39		550		710
HSBC Finance Corp.,
4.75%, 7/15/13		325		335
5.50%, 1/19/16		650		704
Jefferies Group, Inc.,
8.50%, 7/15/19		50		54
John Deere Capital Corp.,
2.95%, 3/9/15		350		370
0.88%, 4/17/15		150		150
0.95%, 6/29/15		150		150
2.25%, 6/7/16		250		259
1.85%, 9/15/16		200		205
2.00%, 1/13/17		115		119
1.40%, 3/15/17		250		251
5.75%, 9/10/18		200		243
3.15%, 10/15/21		250		260
2.80%, 1/27/23		150		151
JPMorgan Chase Capital XXVII,
7.00%, 11/1/39		420		420
Merrill Lynch & Co., Inc.,
5.45%, 7/15/14		330		345
6.40%, 8/28/17		200		218
6.88%, 4/25/18		505		565
6.88%, 11/15/18		275		308
6.11%, 1/29/37		150		141
7.75%, 5/14/38		175		200
National Rural Utilities Cooperative Finance Corp.,
5.50%, 7/1/13		300		315
1.90%, 11/1/15		250		256
5.45%, 2/1/18		300		356
3.05%, 2/15/22		35		36
8.00%, 3/1/32		50		73
PACCAR Financial Corp.,
1.60%, 3/15/17		90		91
SLM Corp.,
5.00%, 10/1/13		650		670
				34,593
Electric - 1.6%
Alabama Power Co.,
6.13%, 5/15/38		50		66
4.10%, 1/15/42		75		76
American Electric Power Co., Inc.,
5.25%, 6/1/15		300		326
Appalachian Power Co.,
4.60%, 3/30/21		250		280
7.00%, 4/1/38		75		100
Arizona Public Service Co.,
4.50%, 4/1/42		230		237
Baltimore Gas & Electric Co.,
3.50%, 11/15/21		275		291
Carolina Power & Light Co.,
5.13%, 9/15/13		540		569
5.30%, 1/15/19		150		180
3.00%, 9/15/21		150		157
2.80%, 5/15/22		100		102
CenterPoint Energy Houston Electric LLC,
7.00%, 3/1/14		200		220
Cleveland Electric Illuminating (The) Co.,
5.70%, 4/1/17		250		281
Commonwealth Edison Co.,
5.95%, 8/15/16		125		147
1.95%, 9/1/16		100		102
6.15%, 9/15/17		225		272
5.80%, 3/15/18		300		362
4.00%, 8/1/20		410		456
6.45%, 1/15/38		200		272
Consolidated Edison Co. of New York, Inc.,
4.45%, 6/15/20		250		288
5.30%, 3/1/35		150		179
5.85%, 3/15/36		100		128
6.20%, 6/15/36		200		267
6.75%, 4/1/38		100		144
5.50%, 12/1/39		85		107
Constellation Energy Group, Inc.,
4.55%, 6/15/15		100		107
7.60%, 4/1/32		100		133
Consumers Energy Co.,
5.50%, 8/15/16		125		145

FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Electric - 1.6% continued
6.13%, 3/15/19	$	200	$	246
2.85%, 5/15/22		45		46
Delmarva Power & Light Co.,
4.00%, 6/1/42		200		203
Detroit Edison (The) Co.,
5.60%, 6/15/18		125		150
5.70%, 10/1/37		50		64
3.95%, 6/15/42		100		102
Dominion Resources, Inc.,
5.15%, 7/15/15		50		56
1.95%, 8/15/16		200		204
6.00%, 11/30/17		100		120
6.40%, 6/15/18		20		24
5.25%, 8/1/33		250		282
5.95%, 6/15/35		250		309
7.00%, 6/15/38		20		28
4.90%, 8/1/41		35		40
DTE Energy Co.,
6.38%, 4/15/33		50		64
Duke Energy Carolinas LLC,
5.30%, 10/1/15		100		114
1.75%, 12/15/16		70		72
5.25%, 1/15/18		200		238
5.10%, 4/15/18		65		77
3.90%, 6/15/21		50		56
6.45%, 10/15/32		106		140
6.10%, 6/1/37		150		196
6.00%, 1/15/38		35		46
6.05%, 4/15/38		175		232
5.30%, 2/15/40		400		494
Duke Energy Corp.,
6.25%, 6/15/18		100		122
Duke Energy Indiana, Inc.,
5.00%, 9/15/13		350		367
6.45%, 4/1/39		250		345
4.20%, 3/15/42		100		103
Entergy Corp.,
4.70%, 1/15/17		125		131
Entergy Louisiana LLC,
1.88%, 12/15/14		85		87
6.50%, 9/1/18		100		120
5.40%, 11/1/24		150		180
Entergy Texas, Inc.,
7.13%, 2/1/19		250		306
Exelon Corp.,
5.63%, 6/15/35		75		81
Exelon Generation Co. LLC,
5.20%, 10/1/19		225		246
4.25%, 6/15/22(1) (2)		250		251
FirstEnergy Corp.,
7.38%, 11/15/31		250		314
FirstEnergy Solutions Corp.,
6.80%, 8/15/39		380		399
Florida Power & Light Co.,
5.55%, 11/1/17		225		272
5.65%, 2/1/37		350		446
5.95%, 2/1/38		150		199
5.69%, 3/1/40		400		520
4.13%, 2/1/42		250		262
4.05%, 6/1/42		100		105
Florida Power Corp.,
5.80%, 9/15/17		50		60
5.65%, 6/15/18		225		271
3.10%, 8/15/21		25		26
6.35%, 9/15/37		50		67
6.40%, 6/15/38		285		389
Georgia Power Co.,
4.25%, 12/1/19		500		567
2.85%, 5/15/22		100		100
4.30%, 3/15/42		60		62
Kansas City Power & Light Co.,
5.30%, 10/1/41		50		55
Metropolitan Edison Co.,
4.88%, 4/1/14		200		211
MidAmerican Energy Co.,
5.30%, 3/15/18		500		588
MidAmerican Energy Holdings Co.,
6.13%, 4/1/36		600		751
6.50%, 9/15/37		200		263
Midamerican Funding LLC,
6.93%, 3/1/29		50		66
National Fuel Gas Co.,
4.90%, 12/1/21		150		162
Nevada Power Co.,
6.65%, 4/1/36		100		135
5.45%, 5/15/41		35		42
NextEra Energy Capital Holdings, Inc.,
6.65%, 6/15/67		25		26

NORTHERN FUNDS QUARTERLY REPORT    13    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Electric - 1.6% continued
Nisource Finance Corp.,
5.25%, 9/15/17	$	450	$	502
5.45%, 9/15/20		200		224
4.45%, 12/1/21		165		173
5.95%, 6/15/41		100		112
5.25%, 2/15/43		100		101
Northern States Power Co.,
5.25%, 3/1/18		125		149
6.25%, 6/1/36		100		136
5.35%, 11/1/39		65		81
NSTAR Electric Co.,
4.88%, 4/15/14		200		213
Oglethorpe Power Corp.,
5.38%, 11/1/40		150		176
Ohio Power Co.,
6.60%, 2/15/33		100		127
Oncor Electric Delivery Co. LLC,
6.80%, 9/1/18		225		269
4.10%, 6/1/22(1) (2)		250		255
7.25%, 1/15/33		200		247
7.50%, 9/1/38		145		185
Pacific Gas & Electric Co.,
4.80%, 3/1/14		225		239
5.63%, 11/30/17		660		792
4.25%, 5/15/21		150		170
3.25%, 9/15/21		45		47
6.05%, 3/1/34		450		567
5.80%, 3/1/37		100		124
5.40%, 1/15/40		160		191
PacifiCorp,
3.85%, 6/15/21		600		660
2.95%, 2/1/22		100		103
6.25%, 10/15/37		275		370
6.00%, 1/15/39		60		79
Peco Energy Co.,
5.35%, 3/1/18		25		30
Pennsylvania Electric Co.,
6.05%, 9/1/17		300		342
PPL Capital Funding, Inc.,
4.20%, 6/15/22		50		50
PPL Electric Utilities Corp.,
3.00%, 9/15/21		250		259
6.25%, 5/15/39		275		379
5.20%, 7/15/41		35		43
PPL Energy Supply LLC,
5.40%, 8/15/14		250		268
6.50%, 5/1/18		100		116
Progress Energy, Inc.,
3.15%, 4/1/22		160		161
7.75%, 3/1/31		50		70
6.00%, 12/1/39		450		563
PSEG Power LLC,
5.50%, 12/1/15		175		196
2.75%, 9/15/16		35		36
Public Service Co. of Colorado,
3.20%, 11/15/20		1,000		1,071
Public Service Co. of Oklahoma,
4.40%, 2/1/21		50		55
6.63%, 11/15/37		125		159
Public Service Electric & Gas Co.,
5.30%, 5/1/18		575		683
5.38%, 11/1/39		250		311
3.95%, 5/1/42		50		52
Puget Sound Energy, Inc.,
5.48%, 6/1/35		25		30
6.27%, 3/15/37		75		101
5.80%, 3/15/40		250		324
5.64%, 4/15/41		80		102
San Diego Gas & Electric Co.,
3.00%, 8/15/21		65		69
6.13%, 9/15/37		50		70
4.50%, 8/15/40		150		172
3.95%, 11/15/41		100		105
4.30%, 4/1/42		150		167
SCANA Corp.,
4.75%, 5/15/21		75		80
4.13%, 2/1/22		135		136
Sierra Pacific Power Co.,
5.45%, 9/1/13		275		288
6.00%, 5/15/16		250		291
South Carolina Electric & Gas Co.,
5.25%, 11/1/18		116		137
6.05%, 1/15/38		265		343
4.35%, 2/1/42		65		68
Southern (The) Co.,
2.38%, 9/15/15		250		258
1.95%, 9/1/16		200		205

FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Electric - 1.6% continued
Southern California Edison Co.,
5.00%, 1/15/14	$	150	$	160
5.50%, 8/15/18		100		122
3.88%, 6/1/21		150		167
6.65%, 4/1/29		300		394
6.00%, 1/15/34		100		132
5.55%, 1/15/37		125		157
5.95%, 2/1/38		100		132
6.05%, 3/15/39		50		67
5.50%, 3/15/40		150		190
Southern Power Co.,
4.88%, 7/15/15		150		164
5.15%, 9/15/41		500		543
Southwestern Electric Power Co.,
5.88%, 3/1/18		400		465
3.55%, 2/15/22		150		153
6.20%, 3/15/40		200		246
Southwestern Public Service Co.,
6.00%, 10/1/36		100		118
Tampa Electric Co.,
4.10%, 6/15/42		50		50
Union Electric Co.,
6.40%, 6/15/17		400		480
Virginia Electric and Power Co.,
5.40%, 4/30/18		425		509
2.95%, 1/15/22		95		98
6.00%, 1/15/36		50		65
8.88%, 11/15/38		300		501
Westar Energy, Inc.,
4.13%, 3/1/42		115		120
Wisconsin Electric Power Co.,
5.70%, 12/1/36		150		191
Xcel Energy, Inc.,
4.70%, 5/15/20		100		116
6.50%, 7/1/36		100		135
				37,851
Electrical Components & Equipment - 0.0%
Emerson Electric Co.,
4.75%, 10/15/15		100		112
5.38%, 10/15/17		100		119
5.25%, 10/15/18		325		391
6.00%, 8/15/32		25		33
6.13%, 4/15/39		50		69
				724
Electronics - 0.1%
Agilent Technologies, Inc.,
5.50%, 9/14/15		700		783
Honeywell International, Inc.,
5.30%, 3/15/17		200		235
5.30%, 3/1/18		290		346
5.70%, 3/15/36		720		918
5.70%, 3/15/37		125		160
Thermo Fisher Scientific, Inc.,
3.20%, 5/1/15		320		340
2.25%, 8/15/16		100		104
3.60%, 8/15/21		250		269
				3,155
Engineering & Construction - 0.0%
ABB Finance USA, Inc.,
1.63%, 5/8/17		90		90
Environmental Control - 0.1%
Republic Services, Inc.,
3.80%, 5/15/18		165		176
5.50%, 9/15/19		120		139
5.00%, 3/1/20		400		453
5.25%, 11/15/21		500		574
3.55%, 6/1/22		100		101
Waste Management, Inc.,
5.00%, 3/15/14		100		106
2.60%, 9/1/16		35		36
6.10%, 3/15/18		250		297
7.10%, 8/1/26		125		164
6.13%, 11/30/39		400		495
				2,541
Food - 0.5%
Campbell Soup Co.,
4.25%, 4/15/21		150		170
ConAgra Foods, Inc.,
7.00%, 4/15/19		300		368
7.00%, 10/1/28		100		122
General Mills, Inc.,
1.55%, 5/16/14		100		101
5.20%, 3/17/15		500		555
3.15%, 12/15/21		500		512
5.40%, 6/15/40		70		83
H.J. Heinz Co.,
5.35%, 7/15/13		200		210
1.50%, 3/1/17		310		309

NORTHERN FUNDS QUARTERLY REPORT    15    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Food - 0.5% continued
H.J. Heinz Finance Co.,
6.75%, 3/15/32	$	50	$	62
Hershey (The) Co.,
1.50%, 11/1/16		250		252
Kellogg Co.,
1.88%, 11/17/16		55		56
1.75%, 5/17/17		75		75
3.25%, 5/21/18		130		139
4.15%, 11/15/19		335		373
7.45%, 4/1/31		100		137
Kraft Foods Group, Inc.,
1.63%, 6/4/15(1) (2)		100		101
3.50%, 6/6/22(1) (2)		130		133
5.00%, 6/4/42(1) (2)		55		58
Kraft Foods, Inc.,
5.25%, 10/1/13		125		132
4.13%, 2/9/16		500		544
6.50%, 8/11/17		150		182
6.13%, 2/1/18		815		977
6.13%, 8/23/18		50		61
5.38%, 2/10/20		500		592
6.50%, 11/1/31		150		185
7.00%, 8/11/37		100		132
6.88%, 2/1/38		100		131
6.88%, 1/26/39		100		130
6.50%, 2/9/40		500		642
Kroger (The) Co.,
3.90%, 10/1/15		80		86
2.20%, 1/15/17		190		192
6.15%, 1/15/20		25		30
3.40%, 4/15/22		400		400
7.50%, 4/1/31		200		260
6.90%, 4/15/38		100		122
Safeway, Inc.,
3.40%, 12/1/16		165		168
6.35%, 8/15/17		275		308
5.00%, 8/15/19		385		398
3.95%, 8/15/20		350		338
Sysco Corp.,
2.60%, 6/12/22		95		95
6.63%, 3/17/39		200		293
Tyson Foods, Inc.,
4.50%, 6/15/22		300		309
Unilever Capital Corp.,
4.25%, 2/10/21		250		292
5.90%, 11/15/32		125		173
				10,988
Forest Products & Paper - 0.1%
Georgia-Pacific LLC,
7.75%, 11/15/29		500		650
International Paper Co.,
5.30%, 4/1/15		100		109
7.95%, 6/15/18		325		410
7.50%, 8/15/21		350		446
4.75%, 2/15/22		125		136
7.30%, 11/15/39		45		56
6.00%, 11/15/41		250		282
				2,089
Gas - 0.1%
AGL Capital Corp.,
3.50%, 9/15/21		150		155
5.88%, 3/15/41		100		128
CenterPoint Energy, Inc.,
6.50%, 5/1/18		40		47
KeySpan Corp.,
5.80%, 4/1/35		175		197
Sempra Energy,
2.00%, 3/15/14		200		203
2.30%, 4/1/17		80		82
6.15%, 6/15/18		400		483
Southern California Gas Co.,
5.75%, 11/15/35		150		196
Southern Union Co.,
8.25%, 11/15/29		25		31
				1,522
Hand/Machine Tools - 0.0%
Stanley Black & Decker, Inc.,
3.40%, 12/1/21		265		273
Healthcare - Products - 0.1%
Baxter International, Inc.,
4.63%, 3/15/15		100		110
1.85%, 1/15/17		100		102
5.38%, 6/1/18		225		268
6.25%, 12/1/37		30		41
Becton, Dickinson and Co.,
1.75%, 11/8/16		250		256

FIXED INCOME FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Healthcare - Products - 0.1% continued
3.25%, 11/12/20	$	230	$	242
3.13%, 11/8/21		150		156
5.00%, 11/12/40		150		174
Medtronic, Inc.,
3.00%, 3/15/15		250		265
4.75%, 9/15/15		200		225
4.13%, 3/15/21		500		559
3.13%, 3/15/22		150		155
6.50%, 3/15/39		100		142
4.50%, 3/15/42		100		109
St. Jude Medical, Inc.,
2.50%, 1/15/16		150		156
Stryker Corp.,
2.00%, 9/30/16		125		128
Zimmer Holdings, Inc.,
3.38%, 11/30/21		250		257
				3,345
Healthcare - Services - 0.2%
Aetna, Inc.,
1.75%, 5/15/17		50		50
3.95%, 9/1/20		375		407
4.13%, 6/1/21		250		275
6.75%, 12/15/37		150		196
4.50%, 5/15/42		100		102
Cigna Corp.,
4.00%, 2/15/22		335		349
5.38%, 2/15/42		100		106
Quest Diagnostics, Inc.,
6.40%, 7/1/17		100		118
4.75%, 1/30/20		340		377
5.75%, 1/30/40		85		97
UnitedHealth Group, Inc.,
5.00%, 8/15/14		6		7
1.88%, 11/15/16		125		128
4.70%, 2/15/21		300		346
2.88%, 3/15/22		500		505
5.80%, 3/15/36		250		309
6.63%, 11/15/37		350		468
6.88%, 2/15/38		100		139
5.70%, 10/15/40		135		166
4.38%, 3/15/42		100		105
WellPoint, Inc.,
5.25%, 1/15/16		150		168
2.38%, 2/15/17		200		205
5.88%, 6/15/17		350		413
3.13%, 5/15/22		100		101
5.85%, 1/15/36		600		710
				5,847
Home Furnishings - 0.0%
Whirlpool Corp.,
4.85%, 6/15/21		100		103
4.70%, 6/1/22		250		253
				356
Household Products/Wares - 0.1%
Clorox (The) Co.,
5.00%, 1/15/15		75		82
5.95%, 10/15/17		25		29
Kimberly-Clark Corp.,
5.00%, 8/15/13		100		105
6.13%, 8/1/17		50		61
6.25%, 7/15/18		150		188
2.40%, 3/1/22		50		50
6.63%, 8/1/37		350		505
				1,020
Housewares - 0.0%
Newell Rubbermaid, Inc.,
2.00%, 6/15/15		50		50
4.70%, 8/15/20		350		379
				429
Insurance - 0.9%
ACE INA Holdings, Inc.,
5.80%, 3/15/18		300		361
5.90%, 6/15/19		355		438
6.70%, 5/15/36		50		69
Aflac, Inc.,
8.50%, 5/15/19		1,000		1,305
6.90%, 12/17/39		80		97
Alleghany Corp.,
4.95%, 6/27/22		165		168
Allstate (The) Corp.,
5.55%, 5/9/35		50		58
6.13%, 5/15/37		100		98
5.20%, 1/15/42		225		253
6.50%, 5/15/57		225		222
American International Group, Inc.,
4.25%, 9/15/14		250		259

NORTHERN FUNDS QUARTERLY REPORT    17    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Insurance - 0.9% continued
5.05%, 10/1/15	$	100	$	106
3.80%, 3/22/17		285		290
5.45%, 5/18/17		300		326
5.85%, 1/16/18		225		249
8.25%, 8/15/18		150		181
4.88%, 6/1/22		500		512
6.25%, 5/1/36		100		115
8.18%, 5/15/58		440		477
Berkshire Hathaway Finance Corp.,
4.63%, 10/15/13		250		263
4.85%, 1/15/15		575		633
5.40%, 5/15/18		300		354
5.75%, 1/15/40		255		309
4.40%, 5/15/42		100		103
Berkshire Hathaway, Inc.,
3.20%, 2/11/15		500		531
1.90%, 1/31/17		125		127
Chubb (The) Corp.,
5.75%, 5/15/18		325		397
6.00%, 5/11/37		50		64
6.50%, 5/15/38		85		116
CNA Financial Corp.,
5.85%, 12/15/14		290		311
Genworth Financial, Inc.,
5.75%, 6/15/14		175		178
6.52%, 5/22/18		50		48
7.20%, 2/15/21		500		476
Hartford Financial Services Group, Inc.,
4.63%, 7/15/13		75		77
5.38%, 3/15/17		150		159
5.50%, 3/30/20		250		261
5.13%, 4/15/22		250		257
5.95%, 10/15/36		75		72
Lincoln National Corp.,
4.20%, 3/15/22		165		165
6.15%, 4/7/36		150		159
6.30%, 10/9/37		100		108
7.00%, 5/17/66		1,000		955
Markel Corp.,
4.90%, 7/1/22		100		101
Marsh & McLennan Cos., Inc.,
5.75%, 9/15/15		236		262
MetLife, Inc.,
2.38%, 2/6/14		450		459
5.00%, 6/15/15		825		907
6.75%, 6/1/16		170		199
6.38%, 6/15/34		150		189
5.70%, 6/15/35		700		830
6.40%, 12/15/36		150		147
Principal Life Income Funding Trusts,
5.10%, 4/15/14		231		247
Progressive (The) Corp.,
3.75%, 8/23/21		330		356
Protective Life Corp.,
7.38%, 10/15/19		300		347
8.45%, 10/15/39		200		241
Prudential Financial, Inc.,
4.50%, 7/15/13		125		129
5.10%, 9/20/14		40		43
3.88%, 1/14/15		200		209
6.00%, 12/1/17		425		489
7.38%, 6/15/19		500		610
5.38%, 6/21/20		175		194
4.50%, 11/16/21		250		259
5.75%, 7/15/33		50		52
6.63%, 12/1/37		200		226
8.88%, 6/15/38		50		59
6.20%, 11/15/40		75		82
Reinsurance Group of America, Inc.,
6.45%, 11/15/19		1,000		1,134
Swiss Re Solutions Holding Corp.,
6.45%, 3/1/19		575		654
Travelers (The) Cos., Inc.,
5.50%, 12/1/15		150		169
5.80%, 5/15/18		375		453
6.25%, 6/15/37		375		486
5.35%, 11/1/40		25		30
Willis North America, Inc.,
6.20%, 3/28/17		1,000		1,125
				22,395
Internet - 0.1%
eBay, Inc.,
1.63%, 10/15/15		250		256
Google, Inc.,
1.25%, 5/19/14		360		366
3.63%, 5/19/21		250		277
Symantec Corp.,
2.75%, 6/15/17		110		110

FIXED INCOME FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Internet - 0.1% continued
4.20%, 9/15/20	$	200	$	204
				1,213
Iron/Steel - 0.0%
Allegheny Technologies, Inc.,
5.95%, 1/15/21		25		28
Cliffs Natural Resources, Inc.,
6.25%, 10/1/40		200		196
Nucor Corp.,
5.85%, 6/1/18		200		241
6.40%, 12/1/37		150		205
				670
Lodging - 0.0%
Marriott International, Inc.,
3.00%, 3/1/19		250		253
Starwood Hotels & Resorts Worldwide, Inc.,
6.75%, 5/15/18		200		232
Wyndham Worldwide Corp.,
2.95%, 3/1/17		185		184
				669
Machinery - Construction & Mining - 0.1%
Caterpillar, Inc.,
1.38%, 5/27/14		400		405
0.95%, 6/26/15		95		95
5.70%, 8/15/16		50		59
3.90%, 5/27/21		500		557
2.60%, 6/26/22		150		150
7.30%, 5/1/31		25		36
6.05%, 8/15/36		50		65
5.20%, 5/27/41		450		546
				1,913
Machinery - Diversified - 0.0%
Deere & Co.,
6.95%, 4/25/14		175		194
2.60%, 6/8/22		125		125
8.10%, 5/15/30		100		149
IDEX Corp.,
4.20%, 12/15/21		200		207
Rockwell Automation, Inc.,
6.25%, 12/1/37		150		205
				880
Media - 1.1%
CBS Corp.,
1.95%, 7/1/17		30		30
5.75%, 4/15/20		250		291
4.30%, 2/15/21		500		535
3.38%, 3/1/22		100		100
Comcast Corp.,
5.85%, 11/15/15		450		516
4.95%, 6/15/16		250		281
6.50%, 1/15/17		1,500		1,786
5.70%, 5/15/18		400		472
6.45%, 3/15/37		520		632
6.95%, 8/15/37		200		257
6.40%, 5/15/38		600		731
4.65%, 7/15/42		150		150
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc.,
3.55%, 3/15/15		400		421
3.50%, 3/1/16		200		211
2.40%, 3/15/17		150		151
5.88%, 10/1/19		500		574
5.00%, 3/1/21		550		604
6.00%, 8/15/40		400		436
5.15%, 3/15/42		120		121
Discovery Communications LLC,
3.70%, 6/1/15		250		267
4.38%, 6/15/21		500		543
6.35%, 6/1/40		125		152
4.95%, 5/15/42		50		52
McGraw-Hill (The) Cos., Inc.,
5.90%, 11/15/17		75		86
NBCUniversal Media LLC,
3.65%, 4/30/15		115		122
2.88%, 4/1/16		500		521
5.15%, 4/30/20		300		344
4.38%, 4/1/21		650		715
6.40%, 4/30/40		115		141
News America, Inc.,
5.30%, 12/15/14		450		493
6.90%, 3/1/19		300		369
4.50%, 2/15/21		450		493
6.40%, 12/15/35		125		144
6.65%, 11/15/37		550		642
7.85%, 3/1/39		100		127
6.90%, 8/15/39		310		370

NORTHERN FUNDS QUARTERLY REPORT    19    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Media - 1.1% continued
Scripps Networks Interactive, Inc.,
2.70%, 12/15/16	$	100	$	103
Time Warner Cable, Inc.,
6.20%, 7/1/13		225		236
5.85%, 5/1/17		1,325		1,557
6.75%, 7/1/18		450		548
8.75%, 2/14/19		300		399
5.00%, 2/1/20		365		410
4.13%, 2/15/21		250		265
7.30%, 7/1/38		350		450
6.75%, 6/15/39		325		396
5.88%, 11/15/40		200		224
5.50%, 9/1/41		250		272
Time Warner Entertainment Co. L.P.,
8.38%, 3/15/23		75		102
Time Warner, Inc.,
5.88%, 11/15/16		1,150		1,347
4.88%, 3/15/20		160		180
4.75%, 3/29/21		350		392
3.40%, 6/15/22		50		50
6.50%, 11/15/36		600		710
6.20%, 3/15/40		55		64
6.10%, 7/15/40		200		230
5.38%, 10/15/41		500		532
Viacom, Inc.,
1.25%, 2/27/15		40		40
2.50%, 12/15/16		225		233
3.50%, 4/1/17		125		134
6.88%, 4/30/36		500		647
4.50%, 2/27/42		300		295
Walt Disney (The) Co.,
0.88%, 12/1/14		500		503
1.35%, 8/16/16		150		152
1.13%, 2/15/17		250		249
5.88%, 12/15/17		300		366
5.50%, 3/15/19		400		484
3.75%, 6/1/21		300		330
				25,780
Mining - 0.2%
Alcoa, Inc.,
5.55%, 2/1/17		475		519
6.75%, 7/15/18		80		90
5.40%, 4/15/21		75		75
5.90%, 2/1/27		75		74
5.95%, 2/1/37		600		578
Barrick N.A. Finance LLC,
6.80%, 9/15/18		175		217
4.40%, 5/30/21		500		539
7.50%, 9/15/38		100		132
Freeport-McMoRan Copper & Gold, Inc.,
3.55%, 3/1/22		250		246
Newmont Mining Corp.,
5.13%, 10/1/19		315		356
3.50%, 3/15/22		250		247
5.88%, 4/1/35		100		108
4.88%, 3/15/42		150		146
Southern Copper Corp.,
7.50%, 7/27/35		300		344
6.75%, 4/16/40		90		95
				3,766
Miscellaneous Manufacturing - 0.1%
3M Co.,
4.38%, 8/15/13		200		209
1.00%, 6/26/17		150		149
5.70%, 3/15/37		350		476
Danaher Corp.,
5.63%, 1/15/18		200		238
3.90%, 6/23/21		250		278
Dover Corp.,
4.30%, 3/1/21		60		69
General Electric Co.,
5.25%, 12/6/17		750		876
Illinois Tool Works, Inc.,
3.38%, 9/15/21(1) (2)		250		263
Textron, Inc.,
5.60%, 12/1/17		125		138
				2,696
Office/Business Equipment - 0.1%
Pitney Bowes, Inc.,
6.25%, 3/15/19		500		527
Xerox Corp.,
6.75%, 2/1/17		500		581
2.95%, 3/15/17		80		81
6.35%, 5/15/18		500		583
5.63%, 12/15/19		120		135
4.50%, 5/15/21		30		31

FIXED INCOME FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Office/Business Equipment - 0.1% continued
6.75%, 12/15/39	$	60	$	73
				2,011
Oil & Gas - 0.7%
Anadarko Petroleum Corp.,
5.95%, 9/15/16		450		511
6.38%, 9/15/17		1,190		1,382
6.95%, 6/15/19		500		613
6.20%, 3/15/40		150		170
Apache Corp.,
5.63%, 1/15/17		250		295
3.63%, 2/1/21		200		216
6.00%, 1/15/37		400		505
5.10%, 9/1/40		100		115
4.75%, 4/15/43		250		278
Chevron Corp.,
3.95%, 3/3/14		500		528
4.95%, 3/3/19		300		362
ConocoPhillips,
4.60%, 1/15/15		420		460
6.65%, 7/15/18		100		125
5.75%, 2/1/19		1,150		1,402
5.90%, 5/15/38		100		130
6.50%, 2/1/39		525		727
ConocoPhillips Holding Co.,
6.95%, 4/15/29		150		206
Devon Energy Corp.,
2.40%, 7/15/16		80		82
6.30%, 1/15/19		500		613
4.00%, 7/15/21		200		217
7.95%, 4/15/32		100		144
4.75%, 5/15/42		135		142
EOG Resources, Inc.,
2.95%, 6/1/15		250		262
5.63%, 6/1/19		215		258
4.10%, 2/1/21		500		555
EQT Corp.,
4.88%, 11/15/21		375		383
Hess Corp.,
7.13%, 3/15/33		75		93
6.00%, 1/15/40		150		166
5.60%, 2/15/41		500		531
Marathon Oil Corp.,
6.00%, 10/1/17		185		218
5.90%, 3/15/18		150		176
6.60%, 10/1/37		75		93
Marathon Petroleum Corp.,
3.50%, 3/1/16		200		210
5.13%, 3/1/21		75		84
6.50%, 3/1/41		160		182
Murphy Oil Corp.,
4.00%, 6/1/22		100		102
Nabors Industries, Inc.,
4.63%, 9/15/21		200		208
Noble Energy, Inc.,
4.15%, 12/15/21		250		263
6.00%, 3/1/41		250		285
Occidental Petroleum Corp.,
1.75%, 2/15/17		250		254
1.50%, 2/15/18		50		50
4.10%, 2/1/21		750		841
3.13%, 2/15/22		100		104
Pemex Project Funding Master Trust,
5.75%, 3/1/18		925		1,045
6.63%, 6/15/35		200		238
Phillips 66,
2.95%, 5/1/17(1) (2)		150		154
5.88%, 5/1/42(1) (2)		85		92
Pioneer Natural Resources Co.,
6.88%, 5/1/18		100		118
3.95%, 7/15/22		85		85
7.20%, 1/15/28		100		123
Rowan Cos., Inc.,
5.00%, 9/1/17		200		215
4.88%, 6/1/22		100		101
Southwestern Energy Co.,
4.10%, 3/15/22(1) (2)		100		101
Valero Energy Corp.,
4.50%, 2/1/15		230		247
6.13%, 2/1/20		100		115
7.50%, 4/15/32		50		58
6.63%, 6/15/37		325		364
				17,597
Oil & Gas Services - 0.2%
Baker Hughes, Inc.,
7.50%, 11/15/18		1,000		1,321
3.20%, 8/15/21		100		104
5.13%, 9/15/40		375		438

NORTHERN FUNDS QUARTERLY REPORT    21    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Oil & Gas Services - 0.2% continued
Cameron International Corp.,
1.60%, 4/30/15	$	150	$	150
4.50%, 6/1/21		125		134
Halliburton Co.,
5.90%, 9/15/18		350		426
3.25%, 11/15/21		595		624
6.70%, 9/15/38		75		102
7.45%, 9/15/39		100		148
Weatherford International, Inc.,
6.35%, 6/15/17		100		116
				3,563
Packaging & Containers - 0.0%
Bemis Co., Inc.,
5.65%, 8/1/14		65		70
Sonoco Products Co.,
4.38%, 11/1/21		25		27
5.75%, 11/1/40		150		170
				267
Pharmaceuticals - 0.7%
Abbott Laboratories,
5.88%, 5/15/16		225		265
5.60%, 11/30/17		600		725
6.15%, 11/30/37		50		67
5.30%, 5/27/40		500		611
Bristol-Myers Squibb Co.,
5.25%, 8/15/13		200		211
5.45%, 5/1/18		340		409
5.88%, 11/15/36		23		30
6.13%, 5/1/38		5		7
Cardinal Health, Inc.,
5.80%, 10/15/16		100		116
1.90%, 6/15/17		65		66
Eli Lilly & Co.,
5.20%, 3/15/17		775		908
5.55%, 3/15/37		250		321
Express Scripts Holding Co.,
3.13%, 5/15/16		100		104
2.65%, 2/15/17(1) (2)		725		738
7.25%, 6/15/19		440		553
4.75%, 11/15/21(1) (2)		500		553
GlaxoSmithKline Capital, Inc.,
4.38%, 4/15/14		100		107
5.65%, 5/15/18		800		967
5.38%, 4/15/34		150		182
6.38%, 5/15/38		380		523
Johnson & Johnson,
5.55%, 8/15/17		350		425
5.15%, 7/15/18		200		242
3.55%, 5/15/21		250		280
6.95%, 9/1/29		100		144
5.95%, 8/15/37		100		140
4.85%, 5/15/41		400		493
McKesson Corp.,
5.70%, 3/1/17		275		322
6.00%, 3/1/41		250		329
Mead Johnson Nutrition Co.,
4.90%, 11/1/19		250		284
5.90%, 11/1/39		50		62
Medco Health Solutions, Inc.,
7.13%, 3/15/18		300		370
Merck & Co., Inc.,
5.30%, 12/1/13		100		107
4.75%, 3/1/15		375		414
6.00%, 9/15/17		350		428
5.00%, 6/30/19		725		869
5.75%, 11/15/36		50		67
5.85%, 6/30/39		350		475
Novartis Capital Corp.,
4.40%, 4/24/20		185		214
Pfizer, Inc.,
4.50%, 2/15/14		250		266
5.35%, 3/15/15		335		375
6.20%, 3/15/19		1,000		1,253
7.20%, 3/15/39		450		683
Pharmacia Corp.,
6.60%, 12/1/28		125		169
Teva Pharmaceutical Finance Co. LLC,
5.55%, 2/1/16		100		113
6.15%, 2/1/36		45		58
Wyeth LLC,
5.50%, 2/1/14		815		877
5.50%, 2/15/16		425		492
5.95%, 4/1/37		225		295
				17,709

FIXED INCOME FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Pipelines - 0.5%
Buckeye Partners L.P.,
6.05%, 1/15/18	$	85	$	92
CenterPoint Energy Resources Corp.,
6.00%, 5/15/18		85		99
6.63%, 11/1/37		50		64
5.85%, 1/15/41		50		60
El Paso Natural Gas Co.,
5.95%, 4/15/17		350		395
8.38%, 6/15/32		100		129
Enbridge Energy Partners L.P.,
5.20%, 3/15/20		95		108
4.20%, 9/15/21		250		264
7.50%, 4/15/38		50		64
Energy Transfer Partners L.P.,
6.13%, 2/15/17		350		393
9.00%, 4/15/19		187		234
7.50%, 7/1/38		50		56
6.50%, 2/1/42		500		536
Enterprise Products Operating LLC,
5.60%, 10/15/14		250		274
3.20%, 2/1/16		200		210
6.30%, 9/15/17		335		400
5.25%, 1/31/20		300		344
4.05%, 2/15/22		1,000		1,061
6.88%, 3/1/33		50		60
7.55%, 4/15/38		50		64
4.85%, 8/15/42		230		229
Kinder Morgan Energy Partners L.P.,
5.13%, 11/15/14		250		270
5.95%, 2/15/18		495		574
6.85%, 2/15/20		70		84
5.80%, 3/1/21		300		342
4.15%, 3/1/22		175		180
7.40%, 3/15/31		250		304
7.30%, 8/15/33		100		120
6.95%, 1/15/38		150		177
6.55%, 9/15/40		100		114
6.38%, 3/1/41		135		154
Magellan Midstream Partners L.P.,
4.25%, 2/1/21		200		215
NuStar Logistics L.P.,
4.75%, 2/1/22		200		204
ONEOK Partners L.P.,
3.25%, 2/1/16		135		142
6.15%, 10/1/16		200		233
8.63%, 3/1/19		350		454
ONEOK, Inc.,
5.20%, 6/15/15		200		217
4.25%, 2/1/22		250		262
Panhandle Eastern Pipeline Co. L.P.,
6.20%, 11/1/17		100		114
Plains All American Pipeline L.P./PAA Finance Corp.,
6.13%, 1/15/17		200		233
6.50%, 5/1/18		300		360
5.75%, 1/15/20		200		235
5.00%, 2/1/21		100		113
5.15%, 6/1/42		150		159
Spectra Energy Capital LLC,
5.90%, 9/15/13		125		131
6.20%, 4/15/18		100		119
7.50%, 9/15/38		50		66
Sunoco Logistics Partners Operations L.P.,
4.65%, 2/15/22		165		170
Tennessee Gas Pipeline Co.,
7.00%, 10/15/28		50		63
Williams (The) Cos., Inc.,
8.75%, 3/15/32		58		79
Williams Partners L.P.,
5.25%, 3/15/20		180		202
4.13%, 11/15/20		300		314
6.30%, 4/15/40		130		154
Williams Partners L.P./Williams Partners Finance Corp.,
7.25%, 2/1/17		100		120
				11,814
Real Estate - 0.0%
ProLogis L.P.,
4.50%, 8/15/17		85		89
6.63%, 5/15/18		350		404
Regency Centers L.P.,
5.88%, 6/15/17		25		28
				521
Real Estate Investment Trusts - 0.4%
Alexandria Real Estate Equities, Inc.,
4.60%, 4/1/22		100		102
AvalonBay Communities, Inc.,
6.10%, 3/15/20		150		179

NORTHERN FUNDS QUARTERLY REPORT    23    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Real Estate Investment Trusts - 0.4% continued
BioMed Realty L.P.,
3.85%, 4/15/16	$	100	$	103
4.25%, 7/15/22		200		200
Boston Properties L.P.,
5.63%, 4/15/15		100		110
3.70%, 11/15/18		50		52
5.88%, 10/15/19		500		576
3.85%, 2/1/23		100		101
Brandywine Operating Partnership L.P.,
5.70%, 5/1/17		150		159
BRE Properties, Inc.,
5.20%, 3/15/21		200		218
CommonWealth REIT,
6.25%, 6/15/17		75		80
6.65%, 1/15/18		50		54
Duke Realty L.P.,
5.95%, 2/15/17		1,000		1,106
4.38%, 6/15/22		100		101
ERP Operating L.P.,
4.75%, 7/15/20		335		369
4.63%, 12/15/21		85		92
HCP, Inc.,
6.00%, 1/30/17		150		168
3.75%, 2/1/19		100		100
5.38%, 2/1/21		960		1,062
Health Care REIT, Inc.,
3.63%, 3/15/16		500		514
4.13%, 4/1/19		150		152
Healthcare Realty Trust, Inc.,
5.75%, 1/15/21		200		211
Hospitality Properties Trust,
5.63%, 3/15/17		500		532
6.70%, 1/15/18		75		82
Liberty Property L.P.,
5.13%, 3/2/15		100		106
6.63%, 10/1/17		50		58
4.13%, 6/15/22		100		101
Mack-Cali Realty L.P.,
4.50%, 4/18/22		100		103
Simon Property Group L.P.,
4.20%, 2/1/15		85		90
5.10%, 6/15/15		250		272
5.25%, 12/1/16		400		450
2.15%, 9/15/17		225		225
6.13%, 5/30/18		870		1,029
4.38%, 3/1/21		250		272
UDR, Inc.,
4.63%, 1/10/22		165		175
Ventas Realty L.P./Ventas Capital Corp.,
4.00%, 4/30/19		200		205
4.75%, 6/1/21		50		52
4.25%, 3/1/22		85		86
Vornado Realty L.P.,
5.00%, 1/15/22		250		264
				9,911
Retail - 0.7%
AutoZone, Inc.,
4.00%, 11/15/20		250		267
3.70%, 4/15/22		55		57
Costco Wholesale Corp.,
5.50%, 3/15/17		250		298
CVS Caremark Corp.,
5.75%, 6/1/17		700		827
4.75%, 5/18/20		250		284
4.13%, 5/15/21		100		109
6.25%, 6/1/27		250		310
6.13%, 9/15/39		175		218
Home Depot (The), Inc.,
5.25%, 12/16/13		75		80
5.40%, 3/1/16		800		922
4.40%, 4/1/21		250		289
5.88%, 12/16/36		350		448
5.95%, 4/1/41		250		325
Kohl’s Corp.,
4.00%, 11/1/21		85		88
6.88%, 12/15/37		150		190
Lowe’s Cos., Inc.,
5.00%, 10/15/15		325		366
1.63%, 4/15/17		50		50
4.63%, 4/15/20		100		113
5.80%, 10/15/36		100		122
5.80%, 4/15/40		350		435
4.65%, 4/15/42		50		53
Macy’s Retail Holdings, Inc.,
5.90%, 12/1/16		500		576
3.88%, 1/15/22		30		32
6.90%, 1/15/32		250		299

FIXED INCOME FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Retail - 0.7% continued
5.13%, 1/15/42	$	40	$	42
McDonald’s Corp.,
5.80%, 10/15/17		750		911
5.35%, 3/1/18		100		120
3.63%, 5/20/21		100		110
6.30%, 10/15/37		75		105
3.70%, 2/15/42		100		99
Nordstrom, Inc.,
6.25%, 1/15/18		325		391
4.00%, 10/15/21		150		165
7.00%, 1/15/38		50		70
Target Corp.,
1.13%, 7/18/14		50		50
5.38%, 5/1/17		575		678
3.88%, 7/15/20		195		215
2.90%, 1/15/22		515		526
6.50%, 10/15/37		125		166
7.00%, 1/15/38		325		457
Walgreen Co.,
5.25%, 1/15/19		525		597
Wal-Mart Stores, Inc.,
2.88%, 4/1/15		225		239
3.63%, 7/8/20		200		221
4.25%, 4/15/21		1,600		1,845
5.88%, 4/5/27		250		320
5.25%, 9/1/35		175		212
6.20%, 4/15/38		275		374
5.63%, 4/1/40		155		200
4.88%, 7/8/40		90		105
5.00%, 10/25/40		350		419
5.63%, 4/15/41		775		1,009
Yum! Brands, Inc.,
6.25%, 4/15/16		150		173
3.75%, 11/1/21		35		37
6.88%, 11/15/37		550		728
				17,342
Savings & Loans - 0.0%
Santander Holdings USA, Inc.,
4.63%, 4/19/16		30		29
Security Services - 0.0%
ADT Corporation,
4.88%, 7/15/42		100		98
Semiconductors - 0.1%
Altera Corp.,
1.75%, 5/15/17		35		35
Applied Materials, Inc.,
2.65%, 6/15/16		230		241
5.85%, 6/15/41		100		121
Broadcom Corp.,
2.70%, 11/1/18		250		258
Intel Corp.,
1.95%, 10/1/16		300		311
3.30%, 10/1/21		450		481
4.80%, 10/1/41		250		286
Texas Instruments, Inc.,
1.38%, 5/15/14		400		404
				2,137
Software - 0.2%
Adobe Systems, Inc.,
3.25%, 2/1/15		350		368
BMC Software, Inc.,
4.25%, 2/15/22		150		150
Fiserv, Inc.,
3.13%, 10/1/15		250		259
3.13%, 6/15/16		170		175
4.63%, 10/1/20		250		268
Microsoft Corp.,
0.88%, 9/27/13		400		403
4.20%, 6/1/19		250		291
3.00%, 10/1/20		330		359
5.20%, 6/1/39		200		249
4.50%, 10/1/40		210		241
Oracle Corp.,
5.25%, 1/15/16		375		430
5.00%, 7/8/19		530		629
3.88%, 7/15/20		300		336
6.50%, 4/15/38		550		750
6.13%, 7/8/39		100		131
				5,039
Telecommunications - 1.0%
Alltel Corp.,
7.88%, 7/1/32		100		149
AT&T Corp.,
8.00%, 11/15/31		165		245
AT&T, Inc.,
5.10%, 9/15/14		1,450		1,583

NORTHERN FUNDS QUARTERLY REPORT    25    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Telecommunications - 1.0% continued
2.50%, 8/15/15	$	200	$	208
2.95%, 5/15/16		500		530
2.40%, 8/15/16		285		296
5.60%, 5/15/18		175		210
5.80%, 2/15/19		900		1,098
3.00%, 2/15/22		300		305
6.15%, 9/15/34		125		151
6.80%, 5/15/36		50		65
6.30%, 1/15/38		175		218
6.40%, 5/15/38		725		913
6.55%, 2/15/39		625		804
5.35%, 9/1/40		500		574
5.55%, 8/15/41		300		358
BellSouth Corp.,
5.20%, 9/15/14		1,100		1,197
5.20%, 12/15/16		1,300		1,490
BellSouth Telecommunications, Inc.,
6.38%, 6/1/28		175		206
Cellco Partnership/Verizon Wireless Capital LLC,
5.55%, 2/1/14		472		505
8.50%, 11/15/18		1,300		1,779
CenturyLink, Inc.,
7.60%, 9/15/39		200		193
7.65%, 3/15/42		100		97
Cisco Systems, Inc.,
5.50%, 2/22/16		925		1,073
3.15%, 3/14/17		100		109
4.45%, 1/15/20		335		387
5.90%, 2/15/39		500		644
5.50%, 1/15/40		195		241
Corning, Inc.,
4.25%, 8/15/20		250		277
4.75%, 3/15/42		185		194
Embarq Corp.,
8.00%, 6/1/36		400		418
GTE Corp.,
6.94%, 4/15/28		150		189
Harris Corp.,
6.38%, 6/15/19		50		59
Juniper Networks, Inc.,
3.10%, 3/15/16		100		104
Motorola Solutions, Inc.,
6.00%, 11/15/17		200		227
3.75%, 5/15/22		250		247
New Cingular Wireless Services, Inc.,
8.75%, 3/1/31		400		609
Qwest Corp.,
6.88%, 9/15/33		125		124
7.25%, 10/15/35		150		151
Verizon Communications, Inc.,
5.55%, 2/15/16		1,300		1,492
3.00%, 4/1/16		100		106
5.50%, 2/15/18		535		633
6.10%, 4/15/18		175		213
6.35%, 4/1/19		650		810
3.50%, 11/1/21		1,290		1,373
7.35%, 4/1/39		650		933
6.00%, 4/1/41		180		228
Verizon Global Funding Corp.,
7.75%, 12/1/30		500		705
Verizon New York, Inc.,
7.38%, 4/1/32		150		186
				24,906
Toys, Games & Hobbies - 0.0%
Hasbro, Inc.,
6.35%, 3/15/40		250		291
Mattel, Inc.,
2.50%, 11/1/16		85		87
6.20%, 10/1/40		50		59
				437
Transportation - 0.4%
Burlington Northern Santa Fe LLC,
5.65%, 5/1/17		500		586
5.75%, 3/15/18		100		119
4.10%, 6/1/21		20		22
3.45%, 9/15/21		50		52
6.20%, 8/15/36		100		125
6.15%, 5/1/37		100		123
5.75%, 5/1/40		750		894
4.95%, 9/15/41		250		272
4.40%, 3/15/42		65		65
CSX Corp.,
5.50%, 8/1/13		200		210
6.25%, 4/1/15		250		285
4.25%, 6/1/21		100		109
6.00%, 10/1/36		100		119
6.15%, 5/1/37		150		184

FIXED INCOME FUNDS    26    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.1% continued
Transportation - 0.4% continued
6.22%, 4/30/40	$	350	$	432
4.75%, 5/30/42		50		52
FedEx Corp.,
8.00%, 1/15/19		290		382
Norfolk Southern Corp.,
5.26%, 9/17/14		200		219
5.90%, 6/15/19		320		391
3.25%, 12/1/21		250		258
3.00%, 4/1/22		450		455
7.25%, 2/15/31		500		693
Ryder System, Inc.,
3.60%, 3/1/16		85		90
2.50%, 3/1/17		200		202
3.50%, 6/1/17		45		47
Union Pacific Corp.,
7.00%, 2/1/16		100		118
5.75%, 11/15/17		625		743
7.88%, 1/15/19		250		327
4.75%, 9/15/41		100		108
4.30%, 6/15/42		200		201
United Parcel Service of America, Inc.,
8.38%, 4/1/20		50		70
United Parcel Service, Inc.,
5.50%, 1/15/18		775		931
3.13%, 1/15/21		250		268
6.20%, 1/15/38		150		206
				9,358
Water - 0.0%
American Water Capital Corp.,
6.09%, 10/15/17		150		176
6.59%, 10/15/37		125		155
				331
Total Corporate Bonds
(Cost $376,102)				416,953
FOREIGN ISSUER BONDS - 7.9%
Advertising - 0.0%
WPP Finance UK,
5.88%, 6/15/14		200		216
Banks - 1.8%
Abbey National Treasury Services PLC,
4.00%, 4/27/16		145		143
Bank of Montreal,
1.75%, 4/29/14		75		76
2.50%, 1/11/17		500		517
Bank of Nova Scotia,
2.38%, 12/17/13		300		307
3.40%, 1/22/15		500		527
2.05%, 10/7/15		100		102
2.55%, 1/12/17		500		520
4.38%, 1/13/21		250		282
Barclays Bank PLC,
2.38%, 1/13/14		70		70
5.20%, 7/10/14		500		527
2.75%, 2/23/15		250		252
6.75%, 5/22/19		1,300		1,517
5.13%, 1/8/20		190		206
BNP Paribas S.A.,
5.00%, 1/15/21		1,000		1,027
Canadian Imperial Bank of Commerce,
1.45%, 9/13/13		250		253
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A.,
4.50%, 1/11/21		1,000		1,061
3.88%, 2/8/22		750		763
Credit Suisse,
5.50%, 5/1/14		250		265
3.50%, 3/23/15		250		259
5.30%, 8/13/19		300		338
4.38%, 8/5/20		250		268
Deutsche Bank A.G.,
3.45%, 3/30/15		500		518
3.25%, 1/11/16		150		154
6.00%, 9/1/17		1,225		1,398
Export-Import Bank of Korea,
8.13%, 1/21/14		1,000		1,092
4.00%, 1/11/17		200		213
4.00%, 1/29/21		1,000		1,032
HSBC Holdings PLC,
5.10%, 4/5/21		1,100		1,228
4.88%, 1/14/22		250		276
4.00%, 3/30/22		500		519
6.50%, 9/15/37		300		333
6.80%, 6/1/38		150		172
KFW,
4.00%, 10/15/13		1,200		1,254

NORTHERN FUNDS QUARTERLY REPORT    27    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.9% continued
Banks - 1.8% continued
1.38%, 1/13/14	$	550	$	558
3.50%, 3/10/14		250		262
1.50%, 4/4/14		650		662
4.13%, 10/15/14		500		538
1.00%, 1/12/15		3,000		3,028
0.63%, 4/24/15		3,000		2,999
2.00%, 6/1/16		500		520
4.88%, 1/17/17		200		233
1.25%, 2/15/17		500		505
4.38%, 3/15/18		375		436
4.00%, 1/27/20		1,500		1,715
2.75%, 9/8/20		500		523
2.63%, 1/25/22		900		928
13.85%, 6/29/37(5)		500		226
Korea Development Bank (The),
4.38%, 8/10/15		245		261
3.50%, 8/22/17		850		887
Landwirtschaftliche Rentenbank,
3.13%, 7/15/15		525		561
2.13%, 7/15/16		250		260
5.13%, 2/1/17		900		1,054
1.88%, 9/17/18		200		204
Lloyds TSB Bank PLC,
4.88%, 1/21/16		250		262
4.20%, 3/28/17		135		139
6.38%, 1/21/21		250		283
National Australia Bank,
2.75%, 3/9/17		250		252
Oesterreichische Kontrollbank A.G.,
4.50%, 3/9/15		650		707
1.13%, 7/6/15		225		225
5.00%, 4/25/17		100		115
Royal Bank of Canada,
1.45%, 10/30/14		165		167
1.15%, 3/13/15		500		501
2.63%, 12/15/15		180		188
2.88%, 4/19/16		200		210
2.30%, 7/20/16		250		257
Royal Bank of Scotland (The) PLC,
4.88%, 3/16/15		200		207
3.95%, 9/21/15		270		275
4.38%, 3/16/16		175		179
6.13%, 1/11/21		600		667
Royal Bank of Scotland Group PLC,
6.40%, 10/21/19		200		213
Toronto-Dominion Bank (The),
2.50%, 7/14/16		150		155
2.38%, 10/19/16		565		580
UBS A.G.,
2.25%, 1/28/14		375		377
5.88%, 7/15/16		450		474
5.88%, 12/20/17		640		715
5.75%, 4/25/18		125		139
4.88%, 8/4/20		400		427
UFJ Finance Aruba AEC,
6.75%, 7/15/13		200		211
Westpac Banking Corp.,
3.00%, 8/4/15		250		259
3.00%, 12/9/15		200		207
4.88%, 11/19/19		1,000		1,083
				43,303
Beverages - 0.1%
Diageo Capital PLC,
5.50%, 9/30/16		150		176
1.50%, 5/11/17		60		60
5.75%, 10/23/17		850		1,022
				1,258
Chemicals - 0.0%
Agrium, Inc.,
6.13%, 1/15/41		100		122
Potash Corp. of Saskatchewan, Inc.,
3.75%, 9/30/15		300		321
6.50%, 5/15/19		135		170
5.88%, 12/1/36		50		62
5.63%, 12/1/40		250		309
				984
Diversified Financial Services - 0.0%
Nomura Holdings, Inc.,
5.00%, 3/4/15		235		244
Electric - 0.0%
Hydro Quebec,
2.00%, 6/30/16		75		78
1.38%, 6/19/17		250		250
9.40%, 2/1/21		200		300
Scottish Power Ltd.,
5.38%, 3/15/15		100		103

FIXED INCOME FUNDS    28    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.9% continued
Electric - 0.0% continued
TransAlta Corp.,
4.75%, 1/15/15	$	370	$	386
				1,117
Electronics - 0.0%
Koninklijke Philips Electronics N.V.,
6.88%, 3/11/38		225		295
5.00%, 3/15/42		100		108
				403
Food - 0.0%
Delhaize Group S.A.,
4.13%, 4/10/19		35		34
5.70%, 10/1/40		1,000		840
				874
Healthcare - Products - 0.1%
Covidien International Finance S.A.,
1.35%, 5/29/15		500		501
6.00%, 10/15/17		800		967
6.55%, 10/15/37		25		34
				1,502
Holding Companies - Diversified - 0.0%
EnCana Holdings Finance Corp.,
5.80%, 5/1/14		100		108
Insurance - 0.0%
Allied World Assurance Co. Ltd.,
7.50%, 8/1/16		100		116
AXA S.A.,
8.60%, 12/15/30		75		80
Willis Group Holdings PLC,
5.75%, 3/15/21		100		109
XL Group PLC,
6.25%, 5/15/27		50		55
XLIT Ltd.,
5.75%, 10/1/21		200		221
				581
Iron/Steel - 0.1%
ArcelorMittal,
4.50%, 2/25/17		500		492
6.13%, 6/1/18		500		507
9.85%, 6/1/19		250		297
6.25%, 2/25/22		130		127
7.00%, 10/15/39		150		146
6.75%, 3/1/41		200		187
				1,756
Media - 0.0%
Grupo Televisa S.A.B.,
6.63%, 1/15/40		470		573
Thomson Reuters Corp.,
5.95%, 7/15/13		375		392
5.85%, 4/15/40		150		180
				1,145
Mining - 0.4%
Barrick Gold Corp.,
2.90%, 5/30/16		200		210
6.95%, 4/1/19		300		373
3.85%, 4/1/22		250		259
BHP Billiton Finance USA Ltd.,
5.50%, 4/1/14		300		325
5.25%, 12/15/15		250		285
1.88%, 11/21/16		100		102
1.63%, 2/24/17		600		604
5.40%, 3/29/17		100		117
6.50%, 4/1/19		200		255
3.25%, 11/21/21		250		261
4.13%, 2/24/42		600		616
Rio Tinto Alcan, Inc.,
5.20%, 1/15/14		100		106
6.13%, 12/15/33		100		125
Rio Tinto Finance USA Ltd.,
2.50%, 5/20/16		155		161
2.25%, 9/20/16		150		155
6.50%, 7/15/18		675		832
9.00%, 5/1/19		575		786
3.75%, 9/20/21		500		537
Rio Tinto Finance USA PLC,
2.00%, 3/22/17		150		153
4.75%, 3/22/42		150		168
Teck Resources Ltd.,
10.25%, 5/15/16		1,000		1,116
3.85%, 8/15/17		35		37
3.00%, 3/1/19		85		85
6.00%, 8/15/40		45		47
6.25%, 7/15/41		350		392
5.20%, 3/1/42		125		120

NORTHERN FUNDS QUARTERLY REPORT    29    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.9% continued
Mining - 0.4% continued
Vale Overseas Ltd.,
6.25%, 1/23/17	$	775	$	881
5.63%, 9/15/19		55		61
4.63%, 9/15/20		1,000		1,046
4.38%, 1/11/22		155		158
6.88%, 11/21/36		275		319
6.88%, 11/10/39		125		146
				10,838
Miscellaneous Manufacturing - 0.1%
Ingersoll-Rand Global Holding Co. Ltd.,
6.00%, 8/15/13		200		211
Tyco Electronics Group S.A.,
6.55%, 10/1/17		50		60
3.50%, 2/3/22		125		124
7.13%, 10/1/37		50		68
Tyco International Finance S.A.,
4.13%, 10/15/14		55		59
3.38%, 10/15/15		100		108
8.50%, 1/15/19		50		68
Tyco International Ltd./Tyco International Finance S.A.,
6.88%, 1/15/21		500		667
				1,365
Multi-National - 1.4%
African Development Bank,
2.50%, 3/15/16		500		532
1.25%, 9/2/16		40		41
1.13%, 3/15/17		500		506
Asian Development Bank,
1.63%, 7/15/13		500		507
2.75%, 5/21/14		500		522
2.50%, 3/15/16		500		532
5.50%, 6/27/16		600		709
1.13%, 3/15/17		355		361
5.59%, 7/16/18		50		61
1.75%, 3/21/19		1,500		1,539
Corp. Andina de Fomento,
4.38%, 6/15/22		113		115
Council of Europe Development Bank,
1.50%, 1/15/15		150		152
2.63%, 2/16/16		350		367
1.25%, 9/22/16		150		150
Council Of Europe Development Bank,
1.50%, 6/19/17		200		199
European Bank for Reconstruction & Development,
1.63%, 9/3/15		500		512
2.50%, 3/15/16		300		317
1.38%, 10/20/16		150		153
1.00%, 2/16/17		500		500
European Investment Bank,
4.25%, 7/15/13		1,800		1,869
1.25%, 9/17/13		400		403
2.38%, 3/14/14		2,500		2,572
4.63%, 5/15/14		750		803
1.13%, 8/15/14		1,700		1,716
0.88%, 12/15/14		300		301
2.88%, 1/15/15		550		578
2.75%, 3/23/15		500		525
1.13%, 4/15/15		500		504
1.00%, 7/15/15		400		402
1.63%, 9/1/15		500		511
1.38%, 10/20/15		500		507
2.25%, 3/15/16		400		415
4.88%, 1/17/17		800		921
1.75%, 3/15/17		1,000		1,014
5.13%, 5/30/17		350		409
1.63%, 6/15/17		250		252
2.88%, 9/15/20		500		519
4.88%, 2/15/36		200		232
Inter-American Development Bank,
3.50%, 7/8/13		200		206
1.63%, 7/15/13		150		152
0.50%, 8/17/15		500		499
1.13%, 3/15/17		1,000		1,010
1.75%, 8/24/18		250		259
4.25%, 9/10/18		400		474
3.88%, 9/17/19		600		697
3.88%, 2/14/20		500		585
3.88%, 10/28/41		200		221
International Bank for Reconstruction & Development,
1.75%, 7/15/13		500		507
1.13%, 8/25/14		1,500		1,519
2.38%, 5/26/15		375		396
2.13%, 3/15/16		1,000		1,052
5.00%, 4/1/16		450		520
1.00%, 9/15/16		500		504
0.88%, 4/17/17		1,000		1,005

FIXED INCOME FUNDS    30    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.9% continued
Multi-National - 1.4% continued
9.25%, 7/15/17	$	100	$	139
4.75%, 2/15/35		25		32
International Finance Corp.,
3.00%, 4/22/14		500		522
1.13%, 11/23/16		500		504
1.00%, 4/24/17		890		893
Nordic Investment Bank,
2.50%, 7/15/15		900		950
5.00%, 2/1/17		100		118
				34,992
Oil & Gas - 1.1%
Alberta Energy Co. Ltd.,
7.38%, 11/1/31		75		89
Anadarko Finance Co.,
7.50%, 5/1/31		75		94
BP Capital Markets PLC,
3.13%, 10/1/15		200		213
1.85%, 5/5/17		250		253
4.75%, 3/10/19		1,200		1,358
4.50%, 10/1/20		200		225
4.74%, 3/11/21		400		458
3.56%, 11/1/21		50		53
Burlington Resources Finance Co.,
7.20%, 8/15/31		200		275
Canadian Natural Resources Ltd.,
1.45%, 11/14/14		125		127
5.70%, 5/15/17		225		263
5.90%, 2/1/18		250		295
6.25%, 3/15/38		150		184
6.75%, 2/1/39		50		65
Cenovus Energy, Inc.,
4.50%, 9/15/14		50		53
6.75%, 11/15/39		65		81
ConocoPhillips Canada Funding Co. I,
5.95%, 10/15/36		250		314
Devon Financing Corp. ULC,
7.88%, 9/30/31		200		286
Encana Corp.,
5.90%, 12/1/17		725		826
6.50%, 5/15/19		75		89
3.90%, 11/15/21		250		247
6.63%, 8/15/37		75		84
6.50%, 2/1/38		100		110
Ensco PLC,
4.70%, 3/15/21		1,000		1,089
Husky Energy, Inc.,
6.20%, 9/15/17		600		709
3.95%, 4/15/22		100		102
Nexen, Inc.,
6.20%, 7/30/19		60		70
7.88%, 3/15/32		75		92
7.50%, 7/30/39		330		385
Noble Holding International Ltd.,
3.45%, 8/1/15		200		211
6.05%, 3/1/41		70		76
5.25%, 3/15/42		100		99
Petrobras International Finance Co.,
3.50%, 2/6/17		700		719
5.88%, 3/1/18		400		443
5.75%, 1/20/20		665		727
5.38%, 1/27/21		390		420
6.88%, 1/20/40		395		470
6.75%, 1/27/41		140		164
Petro-Canada,
4.00%, 7/15/13		200		206
6.05%, 5/15/18		50		59
5.95%, 5/15/35		100		112
6.80%, 5/15/38		50		62
Petroleos Mexicanos,
6.00%, 3/5/20		550		636
5.50%, 1/21/21		1,075		1,215
4.88%, 1/24/22(1) (2)		2,000		2,160
Shell International Finance B.V.,
3.10%, 6/28/15		400		427
4.30%, 9/22/19		1,450		1,683
6.38%, 12/15/38		600		849
Statoil ASA,
1.80%, 11/23/16		100		102
3.13%, 8/17/17		250		269
5.25%, 4/15/19		850		1,018
3.15%, 1/23/22		125		130
7.75%, 6/15/23		100		141
7.15%, 1/15/29		250		354
Suncor Energy, Inc.,
6.10%, 6/1/18		275		326
7.15%, 2/1/32		100		128
5.95%, 12/1/34		50		57

NORTHERN FUNDS QUARTERLY REPORT    31    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.9% continued
Oil & Gas - 1.1% continued
6.50%, 6/15/38	$	400	$	476
Talisman Energy, Inc.,
7.75%, 6/1/19		175		215
Total Capital Canada Ltd.,
1.63%, 1/28/14		400		406
Total Capital International S.A.,
1.50%, 2/17/17		500		502
1.55%, 6/28/17		125		125
Total Capital S.A.,
3.00%, 6/24/15		250		265
2.30%, 3/15/16		500		519
Transocean, Inc.,
4.95%, 11/15/15		500		538
5.05%, 12/15/16		165		179
6.00%, 3/15/18		325		363
6.50%, 11/15/20		100		113
6.80%, 3/15/38		200		225
				25,678
Oil & Gas Services - 0.1%
Weatherford International Ltd.,
5.50%, 2/15/16		200		222
6.00%, 3/15/18		725		826
9.63%, 3/1/19		100		130
6.50%, 8/1/36		125		136
5.95%, 4/15/42		150		158
				1,472
Pharmaceuticals - 0.2%
AstraZeneca PLC,
5.90%, 9/15/17		800		961
6.45%, 9/15/37		300		406
GlaxoSmithKline Capital PLC,
1.50%, 5/8/17		250		251
Novartis Securities Investment Ltd.,
5.13%, 2/10/19		850		1,013
Sanofi,
1.20%, 9/30/14		100		101
2.63%, 3/29/16		250		262
4.00%, 3/29/21		500		558
Teva Pharmaceutical Finance Co. B.V.,
2.40%, 11/10/16		200		207
3.65%, 11/10/21		250		263
Teva Pharmaceutical Finance II B.V./Teva Pharmaceutical Finance III LLC,
3.00%, 6/15/15		345		363
Teva Pharmaceutical Finance IV B.V.,
3.65%, 11/10/21		250		263
				4,648
Pipelines - 0.1%
Enbridge, Inc.,
5.80%, 6/15/14		75		81
TransCanada PipeLines Ltd.,
0.88%, 3/2/15		250		250
6.50%, 8/15/18		465		578
5.85%, 3/15/36		275		344
6.20%, 10/15/37		50		65
7.63%, 1/15/39		295		441
6.10%, 6/1/40		150		194
6.35%, 5/15/67		100		103
				2,056
Regional - 0.5%
Japan Finance Organization for Municipalities,
4.00%, 1/13/21		500		571
Province of British Columbia Canada,
2.85%, 6/15/15		200		213
2.10%, 5/18/16		185		194
2.65%, 9/22/21		150		158
7.25%, 9/1/36		175		289
Province of Manitoba Canada,
2.63%, 7/15/15		120		127
4.90%, 12/6/16		200		234
1.30%, 4/3/17		165		167
1.75%, 5/30/19		100		101
9.25%, 4/1/20		150		225
Province of Nova Scotia Canada,
8.25%, 7/30/22		350		524
Province of Ontario Canada,
3.50%, 7/15/13		100		103
1.38%, 1/27/14		500		506
2.95%, 2/5/15		400		422
2.70%, 6/16/15		450		474
4.75%, 1/19/16		200		226
5.45%, 4/27/16		350		406
2.30%, 5/10/16		1,000		1,043
4.95%, 11/28/16		650		754
4.00%, 10/7/19		835		949
4.40%, 4/14/20		500		581
2.45%, 6/29/22		500		494

FIXED INCOME FUNDS    32    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.9% continued
Regional - 0.5% continued
Province of Quebec Canada,
5.13%, 11/14/16	$	250	$	292
4.63%, 5/14/18		350		409
2.75%, 8/25/21		100		103
7.50%, 7/15/23		300		426
7.13%, 2/9/24		100		139
7.50%, 9/15/29		375		577
Province of Saskatchewan Canada,
8.50%, 7/15/22		200		304
				11,011
Sovereign - 1.3%
Brazilian Government International Bond,
6.00%, 1/17/17		1,250		1,472
8.00%, 1/15/18		267		311
8.88%, 10/14/19		1,075		1,524
4.88%, 1/22/21		1,000		1,156
8.88%, 4/15/24		600		927
10.13%, 5/15/27		500		854
7.13%, 1/20/37		250		361
11.00%, 8/17/40		835		1,077
5.63%, 1/7/41		635		779
Canada Government International Bond,
2.38%, 9/10/14		240		250
0.88%, 2/14/17		545		548
Chile Government International Bond,
3.25%, 9/14/21		400		424
Colombia Government International Bond,
7.38%, 1/27/17		500		619
7.38%, 3/18/19		250		327
4.38%, 7/12/21		1,000		1,123
7.38%, 9/18/37		350		517
6.13%, 1/18/41		250		325
Export Development Canada,
0.50%, 9/15/15		150		150
Israel Government International Bond,
5.50%, 11/9/16		225		257
5.13%, 3/26/19		250		284
4.00%, 6/30/22		250		259
Japan Bank for International Cooperation,
2.88%, 2/2/15		500		526
1.88%, 9/24/15		250		258
2.50%, 5/18/16		300		317
Mexico Government International Bond,
6.63%, 3/3/15		500		565
5.63%, 1/15/17		770		896
5.95%, 3/19/19		500		610
5.13%, 1/15/20		1,360		1,595
7.50%, 4/8/33		100		146
6.75%, 9/27/34		750		1,024
6.05%, 1/11/40		820		1,058
4.75%, 3/8/44		500		539
Panama Government International Bond,
7.25%, 3/15/15		1,250		1,428
6.70%, 1/26/36		550		742
Peruvian Government International Bond,
8.38%, 5/3/16		350		432
7.35%, 7/21/25		250		351
6.55%, 3/14/37		500		680
5.63%, 11/18/50		350		424
Poland Government International Bond,
3.88%, 7/16/15		110		116
5.00%, 10/19/15		475		520
6.38%, 7/15/19		400		471
5.13%, 4/21/21		150		166
Republic of Italy,
5.25%, 9/20/16		1,000		994
5.38%, 6/12/17		1,675		1,659
5.38%, 6/15/33		175		154
Republic of Korea,
4.88%, 9/22/14		400		431
5.13%, 12/7/16		125		140
7.13%, 4/16/19		150		189
South Africa Government International Bond,
6.88%, 5/27/19		275		338
Svensk Exportkredit AB,
5.13%, 3/1/17		500		575
1.75%, 5/30/17		250		252
				31,140
Telecommunications - 0.6%
America Movil S.A.B. de C.V.,
5.75%, 1/15/15		400		445
2.38%, 9/8/16		700		718
5.00%, 3/30/20		400		454
6.13%, 11/15/37		200		244
6.13%, 3/30/40		300		369
British Telecommunications PLC,
2.00%, 6/22/15		200		203

NORTHERN FUNDS QUARTERLY REPORT    33    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.9% continued
Telecommunications - 0.6% continued
5.95%, 1/15/18	$	575	$	674
9.63%, 12/15/30		100		150
Deutsche Telekom International Finance B.V.,
5.88%, 8/20/13		775		816
5.75%, 3/23/16		525		589
8.75%, 6/15/30		400		555
France Telecom S.A.,
2.13%, 9/16/15		125		126
5.38%, 7/8/19		600		679
8.50%, 3/1/31		425		597
5.38%, 1/13/42		250		264
Rogers Communications, Inc.,
6.80%, 8/15/18		700		863
Telecom Italia Capital S.A.,
5.25%, 11/15/13		475		476
5.25%, 10/1/15		675		668
6.38%, 11/15/33		50		39
7.72%, 6/4/38		450		394
Telefonaktiebolaget LM Ericsson,
4.13%, 5/15/22		150		151
Telefonica Emisiones S.A.U.,
4.95%, 1/15/15		335		317
6.42%, 6/20/16		900		864
5.46%, 2/16/21		170		148
7.05%, 6/20/36		450		394
Telefonos de Mexico S.A.B. de C.V.,
5.50%, 1/27/15		125		137
Vodafone Group PLC,
5.00%, 12/16/13		850		901
5.00%, 9/15/15		450		503
5.63%, 2/27/17		325		380
1.63%, 3/20/17		250		250
6.15%, 2/27/37		375		479
				13,847
Transportation - 0.0%
Canadian National Railway Co.,
5.55%, 3/1/19		500		609
2.85%, 12/15/21		85		88
6.90%, 7/15/28		25		35
6.20%, 6/1/36		25		34
6.38%, 11/15/37		50		69
Canadian Pacific Railway Co.,
6.50%, 5/15/18		50		59
5.95%, 5/15/37		50		58
				952
Total Foreign Issuer Bonds (Cost $178,414)				191,490
U.S. GOVERNMENT AGENCIES - 35.9%(6)
Fannie Mae - 15.9%
3.88%, 7/12/13		1,900		1,971
1.00%, 9/23/13		3,000		3,025
4.63%, 10/15/13		3,200		3,378
2.75%, 3/13/14		2,000		2,081
3.00%, 9/16/14		1,000		1,058
0.75%, 12/19/14		6,000		6,043
0.38%, 3/16/15		2,000		1,994
1.63%, 10/26/15		1,000		1,036
2.25%, 3/15/16		2,500		2,638
2.38%, 4/11/16		3,000		3,187
1.25%, 9/28/16		3,700		3,765
1.38%, 11/15/16		2,000		2,047
1.25%, 1/30/17		2,000		2,032
5.00%, 5/11/17		1,000		1,191
5.38%, 6/12/17		1,000		1,212
6.63%, 11/15/30		200		303
6.00%, 4/18/36		2,000		2,336
5.63%, 7/15/37		1,000		1,429
Pool #255376,
6.00%, 8/1/19		100		110
Pool #255695,
2.87%, 3/1/35		36		39
Pool #256675,
5.00%, 4/1/27		142		155
Pool #256677,
6.00%, 4/1/27		132		146
Pool #256792,
6.50%, 6/1/22		129		143
Pool #256925,
6.00%, 10/1/37		288		317
Pool #256959,
6.00%, 11/1/37		1,275		1,405
Pool #256985,
7.00%, 11/1/37		310		355
Pool #257042,
6.50%, 1/1/38		2,181		2,463

FIXED INCOME FUNDS    34    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Fannie Mae - 15.9% continued
Pool #257057,
5.00%, 1/1/28	$	538	$	587
Pool #257106,
4.50%, 1/1/28		80		86
Pool #257237,
4.50%, 6/1/28		249		270
Pool #257239,
5.50%, 6/1/28		304		332
Pool #257243,
7.00%, 6/1/38		862		1,003
Pool #257367,
5.50%, 9/1/28		595		650
Pool #357630,
5.00%, 10/1/19		113		122
Pool #707791,
5.00%, 6/1/33		895		974
Pool #709239,
5.00%, 7/1/18		671		726
Pool #720049,
5.50%, 7/1/33		214		235
Pool #722424,
2.43%, 7/1/33		67		71
Pool #725185,
5.00%, 2/1/19		150		163
Pool #725425,
5.50%, 4/1/34		295		324
Pool #730811,
4.50%, 8/1/33		485		522
Pool #735222,
5.00%, 2/1/35		170		185
Pool #735358,
5.50%, 2/1/35		764		839
Pool #735502,
6.00%, 4/1/35		93		104
Pool #737853,
5.00%, 9/1/33		1,451		1,579
Pool #745418,
5.50%, 4/1/36		329		361
Pool #745754,
5.00%, 9/1/34		1,495		1,626
Pool #745826,
6.00%, 7/1/36		1,631		1,797
Pool #746272,
4.00%, 10/1/18		497		532
Pool #747383,
5.50%, 10/1/33		636		700
Pool #753678,
2.40%, 12/1/33		244		259
Pool #755632,
5.00%, 4/1/34		781		849
Pool #766083,
2.76%, 2/1/34		15		16
Pool #772730,
5.00%, 4/1/34		681		740
Pool #773287,
2.73%, 3/1/35		273		291
Pool #790406,
6.00%, 9/1/34		355		399
Pool #793666,
5.50%, 9/1/34		338		373
Pool #796250,
5.50%, 11/1/34		146		160
Pool #800471,
5.50%, 10/1/34		1,307		1,436
Pool #807701,
4.50%, 12/1/19		101		108
Pool #811944,
4.50%, 1/1/20		129		138
Pool #815639,
2.35%, 6/1/35		49		52
Pool #817795,
6.00%, 8/1/36		314		346
Pool #820998,
2.88%, 4/1/35		132		134
Pool #821912,
2.15%, 6/1/35		502		527
Pool #822455,
2.94%, 4/1/35		113		119
Pool #826057,
5.00%, 7/1/35		353		392
Pool #826368,
4.80%, 7/1/35		220		234
Pool #826585,
5.00%, 8/1/35		976		1,059
Pool #828523,
5.00%, 7/1/35		304		330
Pool #831676,
6.50%, 8/1/36		130		148

NORTHERN FUNDS QUARTERLY REPORT    35    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Fannie Mae - 15.9% continued
Pool #832628,
5.50%, 9/1/20	$	125	$	137
Pool #833067,
5.50%, 9/1/35		1,625		1,782
Pool #833163,
5.00%, 9/1/35		815		884
Pool #835517,
4.95%, 8/1/35		100		107
Pool #840577,
5.00%, 10/1/20		98		106
Pool #844909,
4.50%, 10/1/20		74		79
Pool #845425,
6.00%, 2/1/36		1,412		1,556
Pool #846600,
2.77%, 1/1/36		511		549
Pool #847921,
5.50%, 11/1/20		388		425
Pool #850614,
5.54%, 1/1/36		110		118
Pool #863759,
4.00%, 12/1/20		117		125
Pool #864435,
4.50%, 12/1/20		320		345
Pool #866109,
2.51%, 12/1/35		46		49
Pool #868435,
6.00%, 4/1/36		807		898
Pool #869217,
2.69%, 2/1/36		190		202
Pool #869710,
6.00%, 4/1/36		502		553
Pool #871135,
6.00%, 1/1/37		235		261
Pool #880505,
6.00%, 8/1/21		54		59
Pool #881818,
6.50%, 8/1/36		1,044		1,182
Pool #882055,
2.26%, 6/1/36		145		152
Pool #884776,
2.37%, 10/1/36		238		250
Pool #885769,
6.00%, 6/1/36		114		126
Pool #885866,
6.00%, 6/1/36		304		339
Pool #887019,
2.48%, 6/1/36		233		247
Pool #887111,
5.50%, 5/1/20		83		90
Pool #888100,
5.50%, 9/1/36		1,066		1,171
Pool #888152,
5.00%, 5/1/21		249		269
Pool #888205,
6.50%, 2/1/37		264		300
Pool #888318,
2.55%, 2/1/37		126		134
Pool #888447,
4.00%, 5/1/21		155		166
Pool #889224,
5.50%, 1/1/37		1,503		1,648
Pool #889390,
6.00%, 3/1/23		217		239
Pool #889401,
6.00%, 3/1/38		1,007		1,109
Pool #889415,
6.00%, 5/1/37		3,165		3,526
Pool #889579,
6.00%, 5/1/38		2,171		2,394
Pool #889630,
6.50%, 3/1/38		250		282
Pool #889886,
7.00%, 12/1/37		318		365
Pool #889970,
5.00%, 12/1/36		1,102		1,196
Pool #890234,
6.00%, 10/1/38		725		802
Pool #890329,
4.00%, 4/1/26		8,043		8,737
Pool #892536,
6.50%, 9/1/36		168		191
Pool #892968,
6.50%, 8/1/21		30		33
Pool #893363,
5.00%, 6/1/36		264		286
Pool #893366,
5.00%, 4/1/35		409		445

FIXED INCOME FUNDS    36    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Fannie Mae - 15.9% continued
Pool #894453,
5.99%, 9/1/36	$	378	$	408
Pool #898089,
5.50%, 7/1/26		311		341
Pool #898417,
6.00%, 10/1/36		248		273
Pool #899079,
5.00%, 3/1/37		471		509
Pool #902188,
2.54%, 11/1/36		19		21
Pool #902414,
5.50%, 11/1/36		942		1,029
Pool #905090,
5.50%, 10/1/21		165		181
Pool #905759,
2.59%, 12/1/36		57		61
Pool #906090,
5.50%, 1/1/37		1,158		1,278
Pool #906237,
2.72%, 1/1/37		127		136
Pool #907818,
2.84%, 1/1/37		30		32
Pool #910147,
5.00%, 3/1/22		303		328
Pool #910338,
2.83%, 3/1/37		51		54
Pool #912414,
4.50%, 1/1/22		244		262
Pool #914522,
2.87%, 3/1/37		21		23
Pool #915499,
5.00%, 3/1/37		716		798
Pool #915870,
7.00%, 4/1/37		87		102
Pool #918515,
5.00%, 6/1/37		536		580
Pool #919461,
5.82%, 4/1/37		41		44
Pool #920457,
3.63%, 8/1/36		16		17
Pool #920988,
2.37%, 11/1/36		13		13
Pool #923023,
2.13%, 1/1/37		378		395
Pool #923123,
5.00%, 4/1/36		148		161
Pool #923166,
7.50%, 1/1/37		92		113
Pool #928261,
4.50%, 3/1/36		266		286
Pool #928584,
6.50%, 8/1/37		1,110		1,256
Pool #928909,
6.00%, 12/1/37		12		14
Pool #928915,
6.00%, 11/1/37		115		127
Pool #930606,
4.00%, 2/1/39		3,002		3,198
Pool #931195,
4.50%, 5/1/24		934		1,002
Pool #931665,
4.50%, 7/1/24		2,508		2,690
Pool #932023,
5.00%, 1/1/38		733		796
Pool #932741,
4.50%, 4/1/40		1,396		1,533
Pool #934466,
5.50%, 9/1/23		719		786
Pool #940623,
5.50%, 8/1/37		357		389
Pool #943388,
6.00%, 6/1/37		1,118		1,232
Pool #943617,
6.00%, 8/1/37		917		1,020
Pool #945876,
5.50%, 8/1/37		188		205
Pool #946527,
7.00%, 9/1/37		193		225
Pool #947216,
6.00%, 10/1/37		303		338
Pool #949391,
5.50%, 8/1/22		45		49
Pool #953018,
6.50%, 10/1/37		810		914
Pool #953910,
6.00%, 11/1/37		558		615
Pool #955771,
6.50%, 10/1/37		781		882

NORTHERN FUNDS QUARTERLY REPORT    37    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Fannie Mae - 15.9% continued
Pool #959604,
6.50%, 11/1/37	$	136	$	153
Pool #959880,
5.50%, 11/1/37		423		462
Pool #962687,
5.00%, 4/1/38		1,095		1,186
Pool #963735,
4.50%, 6/1/23		337		362
Pool #965389,
6.00%, 10/1/23		405		446
Pool #966660,
6.00%, 12/1/37		28		31
Pool #968037,
6.00%, 1/1/38		874		964
Pool #969632,
6.50%, 1/1/38		258		290
Pool #970013,
4.50%, 6/1/38		626		672
Pool #971734,
4.50%, 4/1/37		287		308
Pool #972452,
5.50%, 3/1/38		1,402		1,530
Pool #975365,
5.00%, 6/1/23		232		250
Pool #976699,
5.00%, 4/1/28		144		156
Pool #976963,
5.50%, 2/1/38		7,730		8,479
Pool #981704,
5.00%, 6/1/23		831		897
Pool #981823,
5.15%, 6/1/38		178		191
Pool #981854,
5.50%, 7/1/38		1,393		1,520
Pool #984075,
4.50%, 6/1/23		322		345
Pool #986760,
5.50%, 7/1/38		2,861		3,154
Pool #987114,
5.50%, 9/1/23		96		105
Pool #987115,
5.50%, 9/1/23		231		253
Pool #992472,
6.00%, 10/1/38		298		327
Pool #992491,
4.50%, 10/1/23		201		216
Pool #993055,
5.50%, 12/1/38		476		519
Pool #995018,
5.50%, 6/1/38		721		788
Pool #995266,
5.00%, 12/1/23		2,247		2,425
Pool #995879,
6.00%, 4/1/39		993		1,094
Pool #AA0451,
6.00%, 12/1/23		93		102
Pool #AA2939,
4.50%, 4/1/39		1,822		2,013
Pool #AA4482,
4.00%, 4/1/39		2,446		2,636
Pool #AA4562,
4.50%, 9/1/39		1,434		1,585
Pool #AA8978,
4.50%, 7/1/39		386		424
Pool #AA9357,
4.50%, 8/1/39		2,693		2,890
Pool #AB1048,
4.50%, 5/1/40		2,743		2,996
Pool #AB2067,
3.50%, 1/1/41		2,320		2,452
Pool #AB2092,
4.00%, 1/1/41		954		1,028
Pool #AB2272,
4.50%, 2/1/41		1,682		1,858
Pool #AB2693,
4.50%, 4/1/41		1,112		1,215
Pool #AB2768,
4.50%, 4/1/41		1,687		1,851
Pool #AB3246,
5.00%, 7/1/41		1,175		1,287
Pool #AB4293,
3.50%, 1/1/42		2,950		3,104
Pool #AC2947,
5.50%, 9/1/39		2,449		2,686
Pool #AC2969,
5.00%, 9/1/39		6,991		7,715
Pool #AC3263,
4.50%, 9/1/29		786		844

FIXED INCOME FUNDS    38    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Fannie Mae - 15.9% continued
Pool #AC3312,
4.50%, 10/1/39	$	3,643	$	3,910
Pool #AC4861,
4.50%, 11/1/24		1,370		1,486
Pool #AC5040,
4.00%, 10/1/24		1,078		1,147
Pool #AC6118,
4.50%, 11/1/39		1,124		1,206
Pool #AC6742,
4.50%, 1/1/40		3,269		3,590
Pool #AC9581,
5.50%, 1/1/40		3,598		3,958
Pool #AD0585,
4.50%, 12/1/39		1,513		1,678
Pool #AD0639,
6.00%, 12/1/38		1,173		1,292
Pool #AD5241,
4.50%, 7/1/40		1,739		1,871
Pool #AD5525,
5.00%, 6/1/40		1,573		1,726
Pool #AD5556,
4.00%, 6/1/25		1,051		1,118
Pool #AD7859,
5.00%, 6/1/40		1,140		1,244
Pool #AE0289,
3.60%, 5/1/40		693		730
Pool #AE0891,
3.70%, 1/1/41		806		850
Pool #AE0971,
4.00%, 5/1/25		689		733
Pool #AE0981,
3.50%, 3/1/41		2,689		2,829
Pool #AE1807,
4.00%, 10/1/40		5,966		6,360
Pool #AE3873,
4.50%, 10/1/40		735		791
Pool #AE5436,
4.50%, 10/1/40		1,048		1,138
Pool #AE5767,
3.34%, 5/1/41		436		459
Pool #AH0525,
4.00%, 12/1/40		3,589		3,826
Pool #AH1295,
3.50%, 1/1/26		1,299		1,390
Pool #AH2488,
3.19%, 2/1/41		605		635
Pool #AH3226,
5.00%, 2/1/41		508		553
Pool #AH4158,
4.00%, 1/1/41		800		853
Pool #AH5573,
4.00%, 2/1/41		2,297		2,479
Pool #AH5614,
3.50%, 2/1/26		1,322		1,415
Pool #AH8854,
4.50%, 4/1/41		919		998
Pool #AI1247,
4.00%, 4/1/26		963		1,026
Pool #AI3470,
4.50%, 6/1/41		1,690		1,835
Pool #AI4361,
3.03%, 9/1/41		460		483
Pool #AI4380,
2.95%, 11/1/41		441		463
Pool #AI5539,
3.49%, 6/1/41		385		405
Pool #AI5603,
4.50%, 7/1/41		850		917
Pool #AI9555,
4.00%, 9/1/41		2,771		2,955
Pool #AI9828,
2.89%, 11/1/41		458		479
Pool #AJ2001,
3.15%, 10/1/41		432		453
Pool #AJ4093,
3.50%, 10/1/26		448		474
Pool #AJ4408,
4.50%, 10/1/41		948		1,022
Pool #AJ6086,
3.00%, 12/1/26		946		992
Pool #AJ9218,
4.00%, 2/1/42		2,427		2,588
Pool #AJ9326,
3.50%, 1/1/42		2,526		2,679
Pool #AJ9355,
3.00%, 1/1/27		2,122		2,226
Pool #AK4945,
3.50%, 2/1/42		1,682		1,769

NORTHERN FUNDS QUARTERLY REPORT    39    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Fannie Mae - 15.9% continued
Pool #AK7766,
2.50%, 3/1/27	$	2,360	$	2,436
Pool #AK9444,
4.00%, 3/1/42(7)		988		1,060
Pool #AL0354,
5.23%, 7/1/36		964		1,040
Pool #AL0442,
5.50%, 6/1/40		789		865
Pool #AL0766,
4.00%, 9/1/41		3,326		3,590
Pool #AO0752,
3.00%, 4/1/42(7)		1,490		1,531
Pool #AO0800,
3.00%, 4/1/27		1,875		1,968
Pool #AO2973,
3.50%, 5/1/42		3,187		3,385
Pool #AO4136,
3.50%, 6/1/42(7)		2,591		2,733
Pool #MA0361,
4.00%, 3/1/30		1,117		1,203
Pool #MA0667,
4.00%, 3/1/31		1,706		1,838
Pool #MA0706,
4.50%, 4/1/31		2,486		2,695
Pool #MA0711,
3.50%, 4/1/31		883		935
Pool #MA0720,
5.00%, 4/1/31		878		952
Pool #MA0804,
4.00%, 7/1/31		1,220		1,314
Pool #MA0976,
3.50%, 2/1/32		1,951		2,065
Pool #MA1107,
3.50%, 7/1/32(7)		1,994		2,110
Pool TBA,
4.50%, 7/15/25(7)		2,200		2,358
5.00%, 7/15/25(7)		1,000		1,078
3.50%, 8/31/25(7)		8,800		9,298
3.00%, 12/31/26(7)		6,000		6,286
4.00%, 7/15/40(7)		20,170		21,465
4.50%, 7/15/40(7)		22,320		23,942
5.00%, 7/15/40(7)		15,050		16,287
5.50%, 7/15/40(7)		2,200		2,400
6.00%, 7/15/40(7)		2,500		2,747
3.50%, 12/31/40(7)		8,200		8,619
				387,427
Federal Farm Credit Bank - 0.1%
2.63%, 4/17/14		1,400		1,457
Federal Home Loan Bank - 1.2%
4.00%, 9/6/13		2,000		2,087
3.63%, 10/18/13		2,800		2,919
0.38%, 11/27/13		2,500		2,502
0.38%, 1/29/14		4,500		4,502
0.40%, 2/28/14		2,500		2,501
2.38%, 3/14/14		2,000		2,068
5.50%, 8/13/14		1,000		1,109
5.13%, 10/19/16		5,450		6,418
4.75%, 12/16/16		4,200		4,913
				29,019
Freddie Mac - 5.0%
0.50%, 10/15/13		3,000		3,007
0.38%, 10/30/13		5,000		5,012
0.38%, 11/27/13		5,000		5,004
4.50%, 1/15/14		7,000		7,444
3.00%, 7/28/14		1,000		1,052
0.75%, 11/25/14		3,000		3,023
0.50%, 4/17/15		1,000		1,000
4.38%, 7/17/15		900		1,004
5.25%, 4/18/16		500		585
2.50%, 5/27/16		4,000		4,267
2.00%, 8/25/16		5,675		5,963
5.00%, 2/16/17		500		594
2.00%, 2/27/17		2,500		2,507
1.00%, 3/8/17		2,500		2,514
5.13%, 11/17/17		2,500		3,028
4.88%, 6/13/18		2,600		3,149
3.75%, 3/27/19		1,000		1,155
2.38%, 1/13/22		3,000		3,079
6.75%, 3/15/31		200		307
Pool #1B2125,
2.75%, 3/1/35		382		408
Pool #1B2934,
2.86%, 3/1/36		618		660
Pool #1B3264,
6.02%, 2/1/37		146		158
Pool #1B7328,
3.31%, 4/1/37		60		64

FIXED INCOME FUNDS    40    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Freddie Mac - 5.0% continued
Pool #1B7359,
5.84%, 5/1/37	$	91	$	94
Pool #1G0321,
2.48%, 9/1/35		132		140
Pool #1G0911,
2.85%, 4/1/36		269		287
Pool #1G1506,
5.47%, 1/1/37		57		61
Pool #1G1623,
5.69%, 4/1/37		98		106
Pool #1G1763,
2.54%, 11/1/35		51		54
Pool #1G1790,
3.03%, 11/1/35		68		72
Pool #1G2620,
2.55%, 11/1/36		30		32
Pool #1G2638,
3.04%, 9/1/36		25		26
Pool #1G2675,
5.77%, 2/1/38		404		439
Pool #1G3611,
2.24%, 4/1/37		51		54
Pool #1H1348,
5.82%, 10/1/36		41		44
Pool #1H2569,
2.50%, 9/1/35		595		633
Pool #1H2605,
5.62%, 4/1/36		273		293
Pool #1J0345,
2.67%, 3/1/37		28		30
Pool #1J0355,
2.90%, 3/1/37		23		25
Pool #1J0365,
3.01%, 4/1/37		139		149
Pool #1J1390,
5.93%, 12/1/36		37		40
Pool #1J1634,
2.47%, 12/1/36		254		272
Pool #1L0078,
3.57%, 6/1/35		37		39
Pool #1L1214,
2.38%, 12/1/35		1,645		1,745
Pool #1L1480,
2.08%, 12/1/33		80		82
Pool #1N0243,
2.92%, 8/1/36		25		27
Pool #1N1746,
5.71%, 9/1/37		232		249
Pool #781274,
2.38%, 2/1/34		23		24
Pool #782905,
4.93%, 12/1/34		26		28
Pool #847755,
2.74%, 5/1/37		106		113
Pool #848626,
3.38%, 6/1/41		374		393
Pool #848639,
3.23%, 9/1/41		441		463
Pool TBA,
3.50%, 3/31/25(7)		5,400		5,678
4.50%, 7/15/25(7)		1,000		1,063
4.00%, 7/15/39(7)		19,800		21,010
4.50%, 7/15/40(7)		12,378		13,219
5.00%, 7/15/40(7)		1,700		1,827
5.50%, 7/15/40(7)		9,650		10,487
6.00%, 7/15/40(7)		1,500		1,643
3.00%, 12/31/49(7)		2,800		2,927
3.50%, 12/31/49(7)		3,400		3,567
				122,419
Freddie Mac Gold - 6.2%
Pool #A16753,
5.00%, 11/1/33		164		178
Pool #A17665,
5.00%, 1/1/34		428		463
Pool #A27950,
5.50%, 11/1/34		1,637		1,792
Pool #A31136,
5.50%, 1/1/35		357		393
Pool #A39306,
5.50%, 11/1/35		1,236		1,351
Pool #A46224,
5.00%, 7/1/35		152		167
Pool #A48104,
5.00%, 1/1/36		326		357
Pool #A51296,
6.00%, 8/1/36		224		249
Pool #A54897,
6.50%, 8/1/36		160		182

NORTHERN FUNDS QUARTERLY REPORT    41    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Freddie Mac Gold - 6.2% continued
Pool #A56110,
5.50%, 12/1/36	$	413	$	451
Pool #A58690,
6.00%, 3/1/37		66		73
Pool #A58718,
5.50%, 3/1/37		113		123
Pool #A59081,
5.50%, 4/1/37		1,846		2,009
Pool #A60942,
5.00%, 5/1/37		387		416
Pool #A61560,
5.50%, 10/1/36		2,128		2,339
Pool #A61573,
5.00%, 9/1/34		1,873		2,035
Pool #A61597,
5.50%, 12/1/35		229		250
Pool #A64474,
5.50%, 9/1/37		149		162
Pool #A67116,
7.00%, 10/1/37		87		101
Pool #A68761,
5.50%, 9/1/37		793		863
Pool #A69169,
4.50%, 12/1/37		665		710
Pool #A69303,
6.00%, 11/1/37		214		235
Pool #A73778,
5.00%, 2/1/38		765		823
Pool #A74134,
7.00%, 2/1/38		134		155
Pool #A78507,
5.00%, 6/1/38		2,383		2,608
Pool #A81606,
6.00%, 9/1/38		340		373
Pool #A81856,
7.00%, 9/1/38		66		77
Pool #A83008,
5.50%, 11/1/38		2,473		2,721
Pool #A84432,
4.50%, 2/1/39		427		456
Pool #A88476,
4.50%, 9/1/39		4,408		4,818
Pool #A88566,
5.00%, 9/1/39		2,637		2,892
Pool #A89346,
4.50%, 10/1/39		3,865		4,130
Pool #A90749,
4.50%, 1/1/40		2,257		2,467
Pool #A91541,
5.00%, 3/1/40		757		830
Pool #A91626,
4.50%, 3/1/40		1,256		1,382
Pool #A91942,
4.50%, 4/1/40		1,178		1,288
Pool #A94672,
4.50%, 10/1/40		1,817		1,944
Pool #A96296,
4.00%, 1/1/41		1,388		1,494
Pool #A96310,
4.00%, 1/1/41		954		1,024
Pool #A96995,
4.00%, 2/1/41		3,073		3,266
Pool #A97443,
4.50%, 3/1/41		1,407		1,520
Pool #B10630,
4.50%, 11/1/18		373		399
Pool #B17658,
4.50%, 1/1/20		16		17
Pool #B18502,
5.50%, 6/1/20		59		64
Pool #B18931,
4.50%, 3/1/20		51		54
Pool #C03821,
3.50%, 4/1/42		3,458		3,632
Pool #C91009,
5.00%, 11/1/26		78		85
Pool #C91020,
5.50%, 3/1/27		152		166
Pool #C91247,
5.00%, 4/1/29		624		673
Pool #C91354,
4.00%, 1/1/31		1,701		1,832
Pool #C91370,
4.50%, 5/1/31		1,021		1,123
Pool #C91388,
3.50%, 2/1/32		787		833
Pool #C91402,
4.00%, 10/1/31		1,406		1,514

FIXED INCOME FUNDS    42    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Freddie Mac Gold - 6.2% continued
Pool #C91408,
3.50%, 11/1/31	$	952	$	1,007
Pool #D97197,
5.00%, 2/1/27		141		153
Pool #D97498,
6.00%, 12/1/27		370		407
Pool #D97524,
5.50%, 1/1/28		604		658
Pool #D97564,
5.00%, 1/1/28		470		505
Pool #D98301,
4.50%, 7/1/29		659		704
Pool #E03033,
3.00%, 2/1/27		2,346		2,458
Pool #E99030,
4.50%, 9/1/18		619		662
Pool #G01907,
4.50%, 8/1/34		199		215
Pool #G01974,
5.00%, 12/1/35		2,219		2,392
Pool #G02064,
5.00%, 2/1/36		973		1,049
Pool #G02069,
5.50%, 3/1/36		190		208
Pool #G02386,
6.00%, 11/1/36		2,147		2,359
Pool #G02391,
6.00%, 11/1/36		60		66
Pool #G02540,
5.00%, 11/1/34		339		365
Pool #G02649,
6.00%, 1/1/37		96		105
Pool #G02702,
6.50%, 1/1/37		244		276
Pool #G02789,
6.00%, 4/1/37		5,586		6,130
Pool #G02911,
6.00%, 4/1/37		112		124
Pool #G02973,
6.00%, 6/1/37		258		283
Pool #G03121,
5.00%, 6/1/36		902		972
Pool #G03134,
5.50%, 8/1/36		368		402
Pool #G03176,
5.00%, 8/1/37		383		411
Pool #G03218,
6.00%, 9/1/37		310		340
Pool #G03351,
6.00%, 9/1/37		457		506
Pool #G03513,
6.00%, 11/1/37		710		779
Pool #G03600,
7.00%, 11/1/37		212		247
Pool #G03737,
6.50%, 11/1/37		3,840		4,328
Pool #G03992,
6.00%, 3/1/38		812		891
Pool #G04287,
5.00%, 5/1/38		1,020		1,097
Pool #G04459,
5.50%, 6/1/38		941		1,023
Pool #G04611,
6.00%, 7/1/38		1,597		1,760
Pool #G04650,
6.50%, 9/1/38		1,488		1,668
Pool #G04817,
5.00%, 9/1/38		639		687
Pool #G05082,
5.00%, 3/1/38		1,225		1,320
Pool #G05167,
4.50%, 2/1/39		1,612		1,723
Pool #G05725,
4.50%, 11/1/39		1,359		1,496
Pool #G05733,
5.00%, 11/1/39		1,343		1,473
Pool #G05870,
4.50%, 4/1/40		1,646		1,799
Pool #G05876,
4.50%, 4/1/40		3,624		4,004
Pool #G06767,
5.00%, 10/1/41		2,937		3,195
Pool #G08189,
7.00%, 3/1/37		80		93
Pool #G08192,
5.50%, 4/1/37		469		510
Pool #G08341,
5.00%, 4/1/39		6,269		6,739

NORTHERN FUNDS QUARTERLY REPORT    43    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Freddie Mac Gold - 6.2% continued
Pool #G08477,
3.50%, 2/1/42	$	2,268	$	2,382
Pool #G11776,
4.50%, 9/1/20		115		122
Pool #G12571,
4.00%, 1/1/22		313		333
Pool #G12673,
5.00%, 9/1/21		245		264
Pool #G12837,
4.50%, 4/1/22		372		398
Pool #G12868,
5.00%, 11/1/22		501		537
Pool #G12869,
5.00%, 9/1/22		440		473
Pool #G13136,
4.50%, 5/1/23		549		584
Pool #G13151,
6.00%, 3/1/23		461		507
Pool #G13201,
4.50%, 7/1/23		331		352
Pool #G13433,
5.50%, 1/1/24		365		398
Pool #G14168,
5.50%, 12/1/24		785		860
Pool #G14239,
4.00%, 9/1/26		7,553		7,996
Pool #G18220,
6.00%, 11/1/22		49		54
Pool #G18438,
2.50%, 6/1/27(7)		1,196		1,232
Pool #G30327,
4.50%, 1/1/27		83		90
Pool #J00991,
4.00%, 1/1/21		114		121
Pool #J02541,
4.00%, 9/1/20		101		107
Pool #J03041,
6.00%, 7/1/21		155		170
Pool #J03736,
5.50%, 11/1/21		165		181
Pool #J05307,
4.50%, 8/1/22		86		92
Pool #J06175,
5.00%, 5/1/21		86		92
Pool #J06465,
6.00%, 11/1/22		47		52
Pool #J06476,
5.50%, 11/1/22		145		158
Pool #J08098,
5.50%, 6/1/23		95		103
Pool #J08202,
5.00%, 7/1/23		213		229
Pool #J08454,
5.00%, 8/1/23		456		488
Pool #J08913,
5.50%, 10/1/23		123		134
Pool #J09148,
5.00%, 12/1/23		389		417
Pool #J09305,
5.00%, 2/1/24		446		482
Pool #J09463,
5.00%, 3/1/24		453		487
Pool #J11136,
4.00%, 11/1/24		273		289
Pool #J12098,
4.50%, 4/1/25		2,768		2,944
Pool #J14808,
3.50%, 3/1/26		2,021		2,153
Pool #J17055,
3.00%, 11/1/26		1,331		1,395
Pool #J17232,
3.00%, 11/1/26		953		1,003
Pool #J17932,
3.00%, 3/1/27		1,667		1,753
Pool #Q02211,
4.50%, 7/1/41		1,513		1,646
Pool #Q03085,
4.00%, 9/1/41		1,288		1,370
Pool #Q04649,
3.50%, 11/1/41		939		987
Pool #Q08894,
3.50%, 6/1/42(7)		1,489		1,574
				152,157
Government National Mortgage Association - 3.0%
Pool TBA,
4.00%, 7/1/40(7)		11,100		12,108
4.00%, 7/1/40(7)		10,500		11,466
4.50%, 7/15/40(7)		19,200		21,105

FIXED INCOME FUNDS    44    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Government National Mortgage Association - 3.0% continued
4.50%, 7/15/40(7)	$	5,900	$	6,450
5.00%, 7/15/40(7)		13,800		15,240
5.00%, 7/15/40(7)		1,900		2,091
5.50%, 7/15/40(7)		1,000		1,110
5.50%, 7/15/40(7)		1,000		1,109
3.50%, 7/1/41(7)		2,000		2,139
3.50%, 7/15/41(7)		1,000		1,069
				73,887
Government National Mortgage Association I - 2.3%
Pool #510835,
5.50%, 2/15/35		158		176
Pool #597889,
5.50%, 6/15/33		638		717
Pool #614169,
5.00%, 7/15/33		221		246
Pool #616879,
3.50%, 2/15/42		1,176		1,261
Pool #617739,
6.00%, 10/15/37		97		109
Pool #634431,
6.00%, 9/15/34		51		58
Pool #641416,
5.50%, 4/15/35		332		371
Pool #646341,
6.00%, 11/15/36		132		148
Pool #648538,
5.00%, 12/15/35		486		537
Pool #651753,
5.50%, 3/15/36		110		122
Pool #658560,
6.50%, 8/15/36		393		451
Pool #661917,
7.00%, 4/15/37		92		109
Pool #670114,
6.50%, 7/15/37		101		116
Pool #675211,
6.50%, 3/15/38		179		205
Pool #675484,
5.50%, 6/15/38		676		750
Pool #676360,
6.50%, 10/15/37		92		105
Pool #682899,
6.00%, 9/15/40		1,047		1,179
Pool #687824,
5.50%, 8/15/38		886		984
Pool #687900,
5.00%, 9/15/38		328		361
Pool #687901,
5.00%, 9/15/38		817		900
Pool #688461,
6.00%, 5/15/38		614		691
Pool #692309,
6.00%, 1/15/39		355		399
Pool #697645,
5.50%, 10/15/38		566		628
Pool #698336,
4.50%, 5/15/39		4,109		4,500
Pool #699277,
6.00%, 9/15/38		284		319
Pool #700972,
5.50%, 11/15/38		308		341
Pool #701196,
6.00%, 10/15/38		436		490
Pool #703677,
5.50%, 6/15/39		599		665
Pool #704185,
5.50%, 1/15/39		512		569
Pool #710130,
7.00%, 1/15/39		134		158
Pool #717175,
4.50%, 6/15/39		2,053		2,267
Pool #719262,
5.00%, 8/15/40		641		711
Pool #720202,
4.50%, 7/15/39		1,192		1,306
Pool #723231,
4.00%, 10/15/39		782		857
Pool #723339,
5.00%, 9/15/39		718		796
Pool #726085,
4.00%, 11/15/24		621		670
Pool #728629,
4.50%, 1/15/40		2,424		2,676
Pool #733663,
4.50%, 5/15/40		4,309		4,727
Pool #737286,
4.50%, 5/15/40		1,738		1,919

NORTHERN FUNDS QUARTERLY REPORT    45    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Government National Mortgage Association I - 2.3% continued
Pool #737416,
3.50%, 9/15/25	$	538	$	575
Pool #738134,
3.50%, 4/15/26		873		934
Pool #738247,
4.50%, 4/15/41		1,476		1,615
Pool #745215,
4.00%, 7/15/25		647		698
Pool #760874,
3.50%, 2/15/26		639		686
Pool #768800,
4.50%, 6/15/41		475		520
Pool #773939,
4.00%, 11/15/41		1,484		1,634
Pool #778957,
3.50%, 3/15/42(7)		1,483		1,592
Pool #781939,
6.00%, 7/15/34		890		1,007
Pool #782131,
5.50%, 12/15/36		342		380
Pool #782150,
5.50%, 4/15/37		348		387
Pool #782259,
5.00%, 2/15/36		516		570
Pool #782272,
5.50%, 2/15/38		779		865
Pool #782498,
6.00%, 12/15/38		408		459
Pool #782565,
5.00%, 2/15/39		7,993		8,813
Pool #782584,
5.00%, 3/15/39		750		825
Pool #782675,
4.50%, 6/15/24		537		578
Pool #782831,
6.00%, 12/15/39		268		302
				56,034
Government National Mortgage Association II - 2.1%
Pool #3570,
6.00%, 6/20/34		190		220
Pool #3665,
5.50%, 1/20/35		583		650
Pool #3852,
6.00%, 5/20/36		122		138
Pool #3879,
6.00%, 7/20/36		421		473
Pool #3910,
6.00%, 10/20/36		219		246
Pool #3994,
5.00%, 6/20/37		195		216
Pool #4018,
6.50%, 8/20/37		442		506
Pool #4026,
5.00%, 9/20/37		244		270
Pool #4027,
5.50%, 9/20/37		132		147
Pool #4040,
6.50%, 10/20/37		96		110
Pool #4098,
5.50%, 3/20/38		742		824
Pool #4116,
6.50%, 4/20/38		199		227
Pool #4170,
6.00%, 6/20/38		530		594
Pool #4194,
5.50%, 7/20/38		1,647		1,829
Pool #4243,
5.00%, 9/20/38		459		507
Pool #4244,
5.50%, 9/20/38		434		482
Pool #4245,
6.00%, 9/20/38		249		280
Pool #4269,
6.50%, 10/20/38		249		285
Pool #4290,
5.50%, 11/20/38		323		359
Pool #4344,
6.00%, 1/20/39		436		489
Pool #4345,
6.50%, 1/20/39		268		307
Pool #4425,
5.50%, 4/20/39		696		772
Pool #4559,
5.00%, 10/20/39		1,540		1,706
Pool #4561,
6.00%, 10/20/39		827		930
Pool #4617,
4.50%, 1/20/40		388		427

FIXED INCOME FUNDS    46    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 35.9%(6) continued
Government National Mortgage Association II - 2.1% continued
Pool #4619,
5.50%, 1/20/40	$	1,267	$	1,407
Pool #4713,
4.50%, 6/20/40		1,209		1,335
Pool #4747,
5.00%, 7/20/40		1,104		1,224
Pool #4923,
4.50%, 1/20/41		837		924
Pool #5050,
4.00%, 5/20/26		906		962
Pool #5081,
4.00%, 6/20/41		1,594		1,745
Pool #5082,
4.50%, 6/20/41		1,679		1,849
Pool #5114,
4.00%, 7/20/41		1,174		1,285
Pool #5175,
4.50%, 9/20/41		869		960
Pool #5202,
3.50%, 10/20/41		1,750		1,873
Pool #5203,
4.00%, 10/20/41		1,417		1,550
Pool #5232,
3.50%, 11/20/41		981		1,049
Pool #5280,
4.00%, 1/20/42		1,547		1,694
Pool #5304,
3.50%, 2/20/42		1,187		1,270
Pool #5326,
3.00%, 3/20/27		1,870		1,982
Pool #5331,
3.50%, 3/20/42		1,936		2,072
Pool #654804,
6.00%, 5/20/36		201		226
Pool #737602,
4.00%, 11/20/40		916		1,005
Pool #752757,
4.50%, 11/20/40		1,414		1,576
Pool #755677,
4.00%, 12/20/40		934		1,024
Pool #782433,
6.00%, 10/20/38		847		951
Pool #82579,
3.50%, 7/20/40		789		836
Pool #82737,
3.00%, 2/20/41		887		934
Pool #82793,
2.50%, 4/20/41		940		978
Pool #82857,
3.00%, 6/20/41		461		483
Pool #82960,
3.50%, 10/20/41		457		486
Pool #MA0022,
3.50%, 4/20/42		1,941		2,078
Pool #MA0088,
3.50%, 5/20/42(7)		4,190		4,484
				51,236
Tennessee Valley Authority - 0.1%
5.50%, 7/18/17		600		730
5.25%, 9/15/39		1,650		2,151
				2,881
Total U.S. Government Agencies (Cost $844,465)				876,517
U.S. GOVERNMENT OBLIGATIONS - 35.4%
U.S. Treasury Bonds - 6.9%
8.75%, 8/15/20		450		710
7.88%, 2/15/21		1,550		2,371
8.00%, 11/15/21		1,125		1,766
7.13%, 2/15/23		2,000		3,058
6.25%, 8/15/23		11,550		16,776
7.63%, 2/15/25		165		270
6.00%, 2/15/26		11,750		17,225
6.13%, 11/15/27		9,000		13,600
6.25%, 5/15/30		6,000		9,471
5.38%, 2/15/31		4,000		5,829
4.50%, 2/15/36		475		638
4.75%, 2/15/37		6,335		8,830
5.00%, 5/15/37		4,575		6,602
4.38%, 2/15/38		8,890		11,796
4.50%, 5/15/38		1,700		2,299
3.50%, 2/15/39		6,000		6,943
4.25%, 5/15/39		9,250		12,081
4.50%, 8/15/39		8,000		10,855
4.38%, 11/15/39		7,000		9,324
4.63%, 2/15/40		7,250		10,029
4.38%, 5/15/40		1,000		1,333

NORTHERN FUNDS QUARTERLY REPORT    47    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT OBLIGATIONS - 35.4% continued
U.S. Treasury Bonds - 6.9% continued
3.88%, 8/15/40	$	9,000	$	11,080
3.75%, 8/15/41		4,000		4,824
3.13%, 2/15/42		1,000		1,074
				168,784
U.S. Treasury Notes - 28.5%
4.25%, 9/30/12		2,250		2,273
3.38%, 11/30/12		1,000		1,013
3.63%, 12/31/12		3,500		3,559
0.63%, 1/31/13		5,000		5,013
2.88%, 1/31/13		9,500		9,648
1.38%, 3/15/13		25,000		25,206
3.13%, 4/30/13		4,000		4,096
1.13%, 6/15/13		25,000		25,207
0.75%, 8/15/13		15,000		15,080
4.25%, 8/15/13		425		444
3.13%, 8/31/13		2,000		2,066
3.13%, 9/30/13		9,700		10,043
2.75%, 10/31/13		17,500		18,069
2.00%, 11/30/13		4,700		4,813
1.00%, 1/15/14		30,000		30,315
0.25%, 3/31/14		20,000		19,977
1.75%, 3/31/14		5,000		5,123
1.88%, 4/30/14		15,000		15,422
2.63%, 6/30/14		10,500		10,981
2.63%, 7/31/14		3,000		3,141
2.38%, 8/31/14		2,500		2,609
2.38%, 9/30/14		17,000		17,776
2.38%, 10/31/14		30,000		31,397
2.13%, 11/30/14		5,000		5,211
2.63%, 12/31/14		25,000		26,400
2.25%, 1/31/15		8,000		8,383
4.00%, 2/15/15		12,000		13,124
2.50%, 3/31/15		39,000		41,243
1.75%, 7/31/15		10,000		10,396
4.50%, 11/15/15		2,000		2,267
2.13%, 12/31/15		5,000		5,278
2.13%, 2/29/16		5,000		5,288
5.13%, 5/15/16		3,000		3,522
3.25%, 6/30/16		10,000		11,049
1.50%, 7/31/16		5,000		5,180
1.00%, 8/31/16		10,000		10,157
1.00%, 9/30/16		25,000		25,389
1.00%, 10/31/16		5,000		5,076
4.63%, 11/15/16		2,600		3,043
0.88%, 11/30/16		30,000		30,298
0.88%, 1/31/17		20,000		20,173
4.63%, 2/15/17		500		589
1.00%, 3/31/17		12,000		12,165
3.13%, 4/30/17		7,000		7,794
4.50%, 5/15/17		1,850		2,182
4.75%, 8/15/17		2,400		2,879
4.25%, 11/15/17		2,950		3,479
3.50%, 2/15/18		6,250		7,151
3.88%, 5/15/18		3,300		3,863
4.00%, 8/15/18		20,750		24,553
3.75%, 11/15/18		2,300		2,694
2.75%, 2/15/19		18,000		19,976
3.63%, 8/15/19		18,000		21,112
3.38%, 11/15/19		16,000		18,511
3.50%, 5/15/20		5,000		5,842
2.63%, 8/15/20		3,000		3,302
2.63%, 11/15/20		3,000		3,297
3.63%, 2/15/21		7,000		8,264
2.13%, 8/15/21		51,000		53,606
				696,007
Total U.S. Government Obligations (Cost $803,188)				864,791
MUNICIPAL BONDS - 0.9%
Arizona - 0.0%
Phoenix Taxable G.O. Unlimited Bonds, Series A, Build America Bonds,
5.27%, 7/1/34		100		118
Salt River Project Agricultural Improvement & Power District Electric System Revenue Bonds, Build America Bonds,
4.84%, 1/1/41		110		128
				246
California - 0.3%
Bay Area Toll Authority Bridge Revenue Bonds, Series F-2, Build America Bonds,
6.26%, 4/1/49		425		567
Bay Area Toll Authority Bridge Revenue Bonds, Series S1, Build America Bonds,
7.04%, 4/1/50		150		214
Bay Area Toll Authority Bridge TRB, Series S-3, Build America Bonds,
6.91%, 10/1/50		150		211

FIXED INCOME FUNDS    48    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 0.9% continued
California - 0.3% continued
California State G.O. Unlimited Bonds, Build America Bonds,
7.70%, 11/1/30	$	135	$	163
7.30%, 10/1/39		920		1,149
7.60%, 11/1/40		400		516
California State Public Works Board Lease Revenue Bonds, Series G-2, Build America Bonds,
8.36%, 10/1/34		50		64
California State Taxable G.O. Unlimited Bonds, Build America Bonds,
7.63%, 3/1/40		405		523
California State Various Purpose Taxable G.O. Unlimited Bonds,
6.20%, 3/1/19		200		236
California State Various Purpose Taxable G.O. Unlimited Bonds, Build America Bonds,
7.55%, 4/1/39		585		758
East Bay Municipal Utility District Water System Revenue Bonds, Build America Bonds,
5.87%, 6/1/40		300		406
Los Angeles Community College District G.O. Unlimited Bonds, Build America Bonds,
6.75%, 8/1/49		150		204
Los Angeles Department of Airports Direct Pay TRB, Build America Bonds,
6.58%, 5/15/39		250		319
Los Angeles Unified School District G.O. Unlimited Bonds, Build America Bonds,
6.76%, 7/1/34		290		376
Los Angeles Unified School District Taxable G.O. Unlimited Bonds, Series KR, Build America Bonds,
5.75%, 7/1/34		335		394
Metropolitan Water District of Southern California TRB, Series A, Build America Bonds,
6.95%, 7/1/40		100		121
San Diego County Water Authority Financing Agency Revenue Bonds, Series B, Build America Bonds,
6.14%, 5/1/49		100		132
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Build America Bonds,
6.95%, 11/1/50		75		105
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series B, Build America Bonds,
6.00%, 11/1/40		300		368
University of California Revenue Bonds, Build America Bonds,
5.95%, 5/15/45		150		186
University of California Revenue Bonds, Build America Bonds, Regents University,
6.27%, 5/15/31		200		229
				7,241
Colorado - 0.0%
Denver City & County G.O. Unlimited Bonds, Build America Bonds,
5.65%, 8/1/30		250		288
Denver City & County School District No. 1 Taxable G.O. Unlimited Bonds, Series C, Build America Bonds (State Aid Withholding),
5.66%, 12/1/33		50		63
				351
Connecticut - 0.0%
Connecticut State G.O. Unlimited Bonds, Build America Bonds,
5.63%, 12/1/29		165		200
Connecticut State G.O. Unlimited Bonds, Series A,
5.85%, 3/15/32		300		378
				578
District of Columbia - 0.0%
District of Columbia Income Tax Secured Revenue Bonds, Series E, Build America Bonds,
5.59%, 12/1/34		30		37
Georgia - 0.0%
Municipal Electric Authority Plant Vogtle Units TRB, Build America Bonds,
6.64%, 4/1/57		70		82
6.66%, 4/1/57		100		115
7.06%, 4/1/57		300		321
				518
Illinois - 0.1%
Chicago Board of Education G.O. Unlimited Bonds, Qualified School Construction Bonds,
6.32%, 11/1/29		160		185

NORTHERN FUNDS QUARTERLY REPORT    49    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 0.9% continued
Illinois - 0.1% continued
Chicago Taxable G.O. Unlimited Bonds, Project C1,
7.78%, 1/1/35	$	100	$	133
Chicago Transit Authority Sales & Transfer Tax Receipts Pension Funding TRB, Series A,
6.90%, 12/1/40		300		354
Chicago Transit Authority Sales Tax Receipts Revenue Bonds, Series B, Build America Bonds,
6.20%, 12/1/40		140		154
Illinois State G.O. Unlimited Bonds, Build America Bonds,
6.63%, 2/1/35		750		812
Illinois State Taxable G.O. Unlimited Bonds,
4.42%, 1/1/15		100		105
5.67%, 3/1/18		300		332
Illinois State Taxable Pension G.O. Unlimited Bonds,
5.10%, 6/1/33		1,025		968
				3,043
Massachusetts - 0.0%
Massachusetts State G.O. Limited Bonds, Series D, Build America Bonds,
4.50%, 8/1/31		250		275
Mississippi - 0.0%
Mississippi State Taxable G.O. Unlimited Bonds, Series F, Build America Bonds,
5.25%, 11/1/34		100		119
Nevada - 0.0%
Clark County Airport Revenue Bonds, Series B, Build America Bonds,
6.88%, 7/1/42		355		406
Clark County Airport System TRB, Series C, Build America Bonds,
6.82%, 7/1/45		200		276
				682
New Jersey - 0.1%
New Jersey State EDA Lease Revenue Bonds, Series A (NATL-RE Insured),
7.43%, 2/15/29		100		123
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, Build America Bonds,
6.56%, 12/15/40		200		269
New Jersey State Transportation Trust Fund Authority TRB, Series C, Build America Bonds,
6.10%, 12/15/28		300		343
New Jersey State Turnpike Authority TRB, Series A, Build America Bonds,
7.10%, 1/1/41		425		600
New Jersey State Turnpike Authority TRB, Series F, Build America Bonds,
7.41%, 1/1/40		125		183
Rutgers University TRB, Series H, Build America Bonds (G.O. of University Insured),
5.67%, 5/1/40		145		182
				1,700
New York - 0.2%
Metropolitan Transportation Authority Dedicated Tax Fund TRB, Build America Bonds,
7.34%, 11/15/39		75		110
Metropolitan Transportation Authority Revenue Bonds, Build America Bonds,
6.67%, 11/15/39		250		326
Metropolitan Transportation Authority TRB, Build America Bonds,
6.69%, 11/15/40		100		129
Metropolitan Transportation Authority TRB, Series E, Build America Bonds,
6.81%, 11/15/40		60		80
New York City G.O. Unlimited Bonds, Build America Bonds,
5.52%, 10/1/37		100		118
New York City G.O. Unlimited Bonds, Series H-1, Build America Bonds,
5.85%, 6/1/40		85		98
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Build America Bonds,
5.75%, 6/15/41		200		255
5.72%, 6/15/42		250		321
New York City Taxable G.O. Unlimited Bonds, Series F-1, Build America Bonds,
6.65%, 12/1/31		225		274
New York City Transitional Finance Authority TRB, Build America Bonds, Future Tax Secured,
5.77%, 8/1/36		300		365

FIXED INCOME FUNDS    50    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 0.9% continued
New York - 0.2% continued
New York State Dormitory Authority Personal Income TRB, Build America Bonds,
5.60%, 3/15/40	$	250	$	314
New York State Dormitory Authority Personal Income TRB, Series F, Build America Bonds,
5.63%, 3/15/39		75		90
New York State Urban Development Corp. TRB, Build America Bonds,
5.77%, 3/15/39		100		124
Port Authority of New York & New Jersey Consolidated 164th TRB (G.O. of Authority Insured),
5.65%, 11/1/40		350		425
Port Authority of New York & New Jersey Consolidated 168th Revenue Bonds (G.O. of Authority Insured),
4.93%, 10/1/51		250		277
				3,306
Ohio - 0.1%
American Municipal Power-Ohio, Inc. Revenue Bonds, Subseries B, Build America Bonds,
6.45%, 2/15/44		200		234
American Municipal Power-Ohio, Inc. TRB, Series B, Combined Hydroelectric Projects,
8.08%, 2/15/50		300		435
Northeast Regional Sewer District Improvement TRB, Build America Bonds,
6.04%, 11/15/40		145		164
Ohio State University TRB, Series A,
4.80%, 6/1/11(3)		200		217
Ohio State University TRB, Series C, Build America Bonds,
4.91%, 6/1/40		190		229
Ohio State Water Quality Development Authority Pollution Control TRB, Series B-2, Loan Fund,
4.88%, 12/1/34		90		102
				1,381
Oregon - 0.0%
Oregon State Department of Transportation Highway User TRB, Series A, Sub Lien, Build America Bonds,
5.83%, 11/15/34		200		258
Pennsylvania - 0.0%
State Public School Building Authority TRB, Series A, Qualified School Construction Bonds,
5.00%, 9/15/27		200		225
Puerto Rico - 0.0%
Puerto Rico Commonwealth Government Development Bank TRB, Senior Notes, Series B,
3.67%, 5/1/14		150		153
4.70%, 5/1/16		100		104
				257
Tennessee - 0.0%
Metropolitan Government of Nashville & Davidson County Convention Center Authority TRB, Series B, Build America Bonds,
6.73%, 7/1/43		100		113
Texas - 0.1%
Dallas Area Rapid Transit Sales TRB, Build America Bonds,
5.02%, 12/1/48		180		220
Dallas Independent School District Taxable G.O. Unlimited Bonds, Series C, Build America Bonds (PSF Gtd.),
6.45%, 2/15/35		200		245
Houston Taxable Refunding G.O. Limited Bonds, Series A, Pension Obligation,
6.29%, 3/1/32		300		377
North Texas Tollway Authority TRB, Series B, Build America Bonds,
6.72%, 1/1/49		125		168
San Antonio Electric & Gas Revenue Bonds, Build America Bonds,
5.99%, 2/1/39		200		272
Texas State Transportation Commission Taxable G.O. Unlimited Bonds, Build America Bonds,
5.52%, 4/1/39		200		260
Texas State Transportation Commission TRB, Series B, First Tier,
5.18%, 4/1/30		300		366

NORTHERN FUNDS QUARTERLY REPORT    51    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 0.9% continued
Texas - 0.1% continued
University of Texas Revenue Bonds, Series C, Build America Bonds,
4.79%, 8/15/46	$	100	$	122
University of Texas Revenue Bonds, Series D, Build America Bonds,
5.13%, 8/15/42		190		238
				2,268
Utah - 0.0%
Utah State G.O. Unlimited Bonds, Series B, Build America Bonds,
3.54%, 7/1/25		95		106
Washington - 0.0%
Central Puget Sound Regional Transportation Authority Sales & Use TRB, Build America Bonds,
5.49%, 11/1/39		80		102
Washington State Convention Center Public Facilities District Revenue Bonds, Build America Bonds,
6.79%, 7/1/40		100		122
Washington State G.O. Unlimited Bonds, Series F, Build America Bonds,
5.14%, 8/1/40		100		120
				344
Total Municipal Bonds
(Cost $19,426)				23,048

	NUMBER OF SHARES		VALUE (000S)
OTHER - 0.0%
Escrow Lehman(8)		50,000	$	—
Total Other (Cost $39)				—
INVESTMENT COMPANIES - 9.6%
Northern Institutional Funds - Diversified Assets Portfolio(9) (10)		235,278,914		235,279
Total Investment Companies (Cost $235,279)				235,279
Total Investments - 109.0% (Cost $2,504,303)				2,660,509
Liabilities less Other Assets - (9.0)%				(219,445	)
NET ASSETS - 100.0%			$	2,441,064

(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 June 30, 2012, the value of these restricted illiquid securities amounted to approximately $5,010,000 or 0.2% of net assets. Additional information on the restricted illiquid securities is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
ADT (The) Corp., 2.25%, 7/15/17	6/27/12	$	150
Exelon Generation Co. LLC, 4.25%, 6/15/22	6/13/12		250
Express Scripts Holding Co., 2.65%, 2/15/17	2/06/12-3/19/12		725
Express Scripts Holding Co., 4.75%, 11/15/21	11/14/11		496
Illinois Tool Works, Inc., 3.38%, 9/15/21	1/19/12		262
Kraft Foods Group, Inc., 1.63%, 6/4/15	5/30/12		100
Kraft Foods Group, Inc., 3.50%, 6/6/22	5/30/12		129
Kraft Foods Group, Inc., 5.00%, 6/4/42	5/30/12		55
Oncor Electric Delivery Co. LLC, 4.10%, 6/1/22	5/15/12		250
Petroleos Mexicanos, 4.88%, 1/24/22	1/17/12		1,982
Phillips 66, 2.95%, 5/1/17	3/7/12		150
Phillips 66, 5.88%, 5/1/42	3/7/12		85
Southwestern Energy Co., 4.10%, 3/15/22	2/29/12		100

(3) Century bond expiring in 2111.

(4) Century bond expiring in 2112.

(5) Zero coupon bond reflects effective yield on the date of purchase.

(6) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaran- teed.

(7) When-Issued Security.

(8) Security listed as escrow is considered to be worthless.

(9) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

FIXED INCOME FUNDS    52    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

(10) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $321,455,000 with net sales of approximately $86,176,000 during the three months ended June 30, 2012.

At June 30, 2012, the quality distribution for the Bond Index Fund was:

QUALITY DISTRIBUTION*	% OF LONG-TERM INVESTMENTS
U.S. Treasury		39.2	%
U.S. Agency		26.2
AAA		3.5
AA		3.1
A		10.7
BBB		8.3
Not rated		0.1
Cash Equivalents		8.9
Total		100	%

* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). Committed Cash includes any traded cash (forward settling trades), the sweep vehicle and commercial paper. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	2,504,341
Gross tax appreciation of investments	$	157,209
Gross tax depreciation of investments		(1,041	)
Net tax appreciation of investments	$	156,168

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assupmtions, including risk, market participants would use in pricing a security).

NORTHERN FUNDS QUARTERLY REPORT    53    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Bond Index Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Asset-Backed Securities	$	—	$	52,431	(1)	$	—	$	52,431
Corporate Bonds		—		416,953	(1)		—		416,953
Foreign Issuer Bonds		—		191,490	(1)		—		191,490
U.S. Government Agencies		—		876,517	(1)		—		876,517
U.S. Government Obligations		—		864,791	(1)		—		864,791
Municipal Bonds		—		23,048	(1)		—		23,048
Investment Companies		235,279		—			—		235,279
Total Investments	$	235,279	$	2,425,230		$	—	$	2,660,509

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

EDA - Economic Development Authority

G.O. - General Obligation

Gtd. - Guaranteed

NATL-RE - National Public Finance Gurantee Corporation

PSF - Permanent School Fund

TRB - Tax Revenue Bonds

With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a pecentage of total net assets.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, 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 or the prerefunded date for these types of securities.

FIXED INCOME FUNDS    54    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET -BAC KED SECURITIES - 3.3%
Automobile - 0.3%
Nissan Auto Receivables Owner Trust, Series 2012-A, Class A3,
0.73%, 5/16/16	$	4,585	$	4,593
Commercial Mortgage-Backed Securities - 3.0%
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2004-5, Class A4,
4.94%, 11/10/41		855		916
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2006-4, Class A2,
5.52%, 7/10/46		469		469
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2006-5, Class A2,
5.32%, 9/10/47		6,785		6,824
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2006-5, Class A4,
5.41%, 9/10/47		5,090		5,633
Bear Stearns Commercial Mortgage Securities, Series 2003-PWR2, Class A4,
5.19%, 5/11/39		2,486		2,555
Bear Stearns Commercial Mortgage Securities, Series 2005-PW10, Class A4,
5.41%, 12/11/40		7,025		7,850
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class A4,
4.67%, 6/11/41		3,525		3,823
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A2,
4.74%, 9/11/42		1,149		1,167
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP1, Class A2,
4.63%, 3/15/46		3,426		3,455
LB-UBS Commercial Mortgage Trust, Series 2003-C3, Class A4,
4.17%, 5/15/32		1,500		1,530
LB-UBS Commercial Mortgage Trust, Series 2003-C8, Class A4,
5.12%, 11/15/32		10,530		10,974
LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class A2,
5.08%, 2/15/31		1,583		1,591
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A2,
5.26%, 9/15/39		210		211
				46,998
Total Asset-Backed Securities (Cost $50,832)				51,591
CORPORATE BONDS - 36.2%
Aerospace/Defense - 0.7%
BE Aerospace, Inc.,
8.50%, 7/1/18		3,525		3,855
5.25%, 4/1/22		1,970		2,029
United Technologies Corp.,
1.80%, 6/1/17		2,680		2,737
4.50%, 6/1/42		1,675		1,840
				10,461
Agriculture - 1.0%
Altria Group, Inc.,
10.20%, 2/6/39		3,095		5,035
Bunge Ltd. Finance Corp.,
4.10%, 3/15/16		2,721		2,837
8.50%, 6/15/19		1,535		1,916
Lorillard Tobacco Co.,
8.13%, 6/23/19		4,760		5,908
				15,696
Auto Manufacturers - 0.4%
Daimler Finance N.A. LLC,
1.65%, 4/10/15(1) (2)		2,765		2,776
Nissan Motor Acceptance Corp.,
4.50%, 1/30/15(1) (2)		3,740		3,984
				6,760
Auto Parts & Equipment - 0.2%
BorgWarner, Inc.,
4.63%, 9/15/20		2,750		2,995
Banks - 4.6%
Ally Financial, Inc.,
5.50%, 2/15/17		3,820		3,880
Bank of America Corp.,
3.75%, 7/12/16		5,940		5,988
3.88%, 3/22/17		2,115		2,155
6.00%, 9/1/17		2,900		3,130
5.70%, 1/24/22		2,575		2,836
5.88%, 2/7/42		2,660		2,914

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 36.2% continued
Banks - 4.6% continued
Capital One Capital V,
10.25%, 8/15/39	$	4,270	$	4,355
Capital One Financial Corp.,
2.15%, 3/23/15		2,475		2,494
Citigroup, Inc.,
2.65%, 3/2/15		2,300		2,300
4.45%, 1/10/17		3,225		3,381
4.50%, 1/14/22		4,685		4,839
Goldman Sachs Group (The), Inc.,
3.30%, 5/3/15		1,150		1,150
3.63%, 2/7/16		2,500		2,500
5.63%, 1/15/17		2,475		2,596
5.75%, 1/24/22		1,560		1,647
6.25%, 2/1/41		4,460		4,651
HSBC USA, Inc.,
2.38%, 2/13/15		1,800		1,821
JPMorgan Chase & Co.,
5.40%, 1/6/42		2,575		2,827
Morgan Stanley,
2.88%, 1/24/14		1,915		1,893
4.00%, 7/24/15		3,200		3,181
3.45%, 11/2/15		2,200		2,130
4.75%, 3/22/17		2,580		2,574
5.75%, 1/25/21		3,485		3,436
Wells Fargo & Co.,
1.50%, 7/1/15		3,750		3,753
				72,431
Beverages - 0.5%
Constellation Brands, Inc.,
6.00%, 5/1/22		3,940		4,235
Dr Pepper Snapple Group, Inc.,
2.60%, 1/15/19		1,240		1,259
Molson Coors Brewing Co.,
3.50%, 5/1/22		1,065		1,094
5.00%, 5/1/42		1,035		1,118
SABMiller Holdings, Inc.,
1.85%, 1/15/15(1)(2)		950		964
				8,670
Biotechnology - 0.7%
Genzyme Corp.,
3.63%, 6/15/15		3,500		3,755
Gilead Sciences, Inc.,
4.50%, 4/1/21		3,370		3,745
Life Technologies Corp.,
5.00%, 1/15/21		3,250		3,612
				11,112
Chemicals - 0.4%
CF Industries, Inc.,
6.88%, 5/1/18		5,000		5,931
Commercial Services - 0.9%
ERAC USA Finance LLC,
7.00%, 10/15/37(1)(2)		3,995		4,816
Hertz (The) Corp.,
7.50%, 10/15/18		4,800		5,148
UR Merger Sub Corp.,
5.75%, 7/15/18(1)(2)		4,340		4,513
				14,477
Computers - 0.2%
Hewlett-Packard Co.,
2.63%, 12/9/14		330		338
2.60%, 9/15/17		2,415		2,424
				2,762
Diversified Financial Services - 4.9%
American Express Credit Corp.,
1.75%, 6/12/15		2,080		2,104
2.80%, 9/19/16		2,640		2,754
2.38%, 3/24/17		2,350		2,409
BlackRock, Inc.,
3.38%, 6/1/22		1,525		1,548
Caterpillar Financial Services Corp.,
1.63%, 6/1/17		1,610		1,618
Countrywide Financial Corp.,
6.25%, 5/15/16		3,485		3,627
FMR LLC,
6.45%, 11/15/39(1)(2)		7,565		8,649
Ford Motor Credit Co. LLC,
3.88%, 1/15/15		4,935		5,082
7.00%, 4/15/15		1,350		1,500
4.21%, 4/15/16(1)(2)		1,890		1,963
4.25%, 2/3/17		3,105		3,255
3.00%, 6/12/17		500		497
General Electric Capital Corp.,
2.15%, 1/9/15		5,260		5,349
1.63%, 7/2/15		4,050		4,050
3.35%, 10/17/16		2,475		2,607

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 36.2% continued
Diversified Financial Services - 4.9% continued
2.30%, 4/27/17	$	2,120	$	2,134
5.30%, 2/11/21		3,525		3,956
4.65%, 10/17/21		2,170		2,410
Hyundai Capital America,
4.00%, 6/8/17(1)(2)		1,670		1,728
Icahn Enterprises L.P./Icahn Enterprises Finance Corp.,
7.75%, 1/15/16		6,375		6,702
International Lease Finance Corp.,
6.25%, 5/15/19		4,555		4,640
JPMorgan Chase Capital XXVII,
7.00%, 11/1/39		5,375		5,375
SLM Corp.,
6.00%, 1/25/17		2,855		2,949
				76,906
Electric - 1.8%
CMS Energy Corp.,
2.75%, 5/15/14		4,100		4,121
6.55%, 7/17/17		1,750		1,983
5.05%, 2/15/18		3,600		3,848
Exelon Generation Co. LLC,
6.20%, 10/1/17		5,290		6,099
FirstEnergy Corp.,
7.38%, 11/15/31		4,060		5,096
Nisource Finance Corp.,
3.85%, 2/15/23		1,630		1,629
NV Energy, Inc.,
6.25%, 11/15/20		2,815		3,143
Puget Energy, Inc.,
5.63%, 7/15/22(1)(2)		2,330		2,394
				28,313
Electronics - 0.5%
Agilent Technologies, Inc.,
6.50%, 11/1/17		6,030		7,241
Engineering & Construction - 0.2%
URS Corp.,
5.00%, 4/1/22(1)(2)		3,075		3,037
Food - 0.5%
H.J. Heinz Co.,
1.50%, 3/1/17		1,985		1,980
Kellogg Co.,
1.75%, 5/17/17		1,900		1,900
SUPERVALU, Inc.,
8.00%, 5/1/16		4,695		4,754
				8,634
Forest Products & Paper - 0.7%
Domtar Corp.,
4.40%, 4/1/22		3,150		3,086
International Paper Co.,
7.95%, 6/15/18		2,725		3,434
Westvaco Corp.,
8.20%, 1/15/30		3,941		4,679
				11,199
Gas - 0.2%
CenterPoint Energy, Inc.,
6.50%, 5/1/18		2,045		2,428
Healthcare - Services - 0.6%
Cigna Corp.,
2.75%, 11/15/16		275		283
Fresenius Medical Care US Finance II, Inc.,
5.88%, 1/31/22(2)		5,975		6,222
WellPoint, Inc.,
3.13%, 5/15/22		2,150		2,167
				8,672
Household Products/Wares - 0.2%
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu,
7.75%, 10/15/16(2)		3,680		3,873
Insurance - 1.7%
Aflac, Inc.,
2.65%, 2/15/17		1,575		1,612
American International Group, Inc.,
3.80%, 3/22/17		2,635		2,686
4.88%, 6/1/22		2,815		2,880
8.18%, 5/15/58		2,330		2,528
Liberty Mutual Group, Inc.,
4.95%, 5/1/22(1)(2)		1,895		1,883
Metropolitan Life Global Funding I,
2.50%, 9/29/15(1)(2)		1,950		1,999
Pricoa Global Funding I,
5.45%, 6/11/14(1)(2)		2,490		2,697
Protective Life Corp.,
8.45%, 10/15/39		8,880		10,689
				26,974

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 36.2% continued
Internet - 0.1%
Symantec Corp.,
2.75%, 6/15/17	$	2,165	$	2,175
Iron/Steel - 0.5%
Cliffs Natural Resources, Inc.,
4.88%, 4/1/21		2,690		2,642
Commercial Metals Co.,
7.35%, 8/15/18		4,474		4,575
				7,217
Lodging - 0.3%
Hyatt Hotels Corp.,
6.88%, 8/15/19(1) (2)		4,580		5,406
Machinery - Diversified - 0.5%
Case New Holland, Inc.,
7.75%, 9/1/13		6,800		7,225
Media - 2.5%
CBS Corp.,
1.95%, 7/1/17		1,355		1,354
3.38%, 3/1/22		1,315		1,310
Comcast Corp.,
4.95%, 6/15/16		1,910		2,144
3.13%, 7/15/22		1,635		1,643
6.40%, 5/15/38		5,400		6,583
4.65%, 7/15/42		2,315		2,316
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc.,
5.20%, 3/15/20		2,590		2,866
5.15%, 3/15/42		3,070		3,090
NBCUniversal Media LLC,
2.10%, 4/1/14		2,250		2,290
News America, Inc.,
6.90%, 8/15/39		1,604		1,916
Time Warner Cable, Inc.,
8.75%, 2/14/19		3,695		4,913
5.50%, 9/1/41		3,665		3,988
Time Warner, Inc.,
3.40%, 6/15/22		1,095		1,104
6.10%, 7/15/40		3,000		3,451
				38,968
Mining - 0.3%
Freeport-McMoRan Copper & Gold, Inc.,
1.40%, 2/13/15		2,410		2,402
Newmont Mining Corp.,
3.50%, 3/15/22		2,115		2,087
				4,489
Office/Business Equipment - 0.2%
Xerox Corp.,
2.95%, 3/15/17		1,600		1,618
4.50%, 5/15/21		2,080		2,159
				3,777
Oil & Gas - 4.0%
Anadarko Petroleum Corp.,
6.38%, 9/15/17		4,665		5,419
Atwood Oceanics, Inc.,
6.50%, 2/1/20		1,600		1,672
Continental Resources, Inc.,
5.00%, 9/15/22(1)(2)		5,120		5,197
Devon Energy Corp.,
3.25%, 5/15/22		3,315		3,373
EQT Corp.,
4.88%, 11/15/21		3,360		3,432
Linn Energy LLC/Linn Energy Finance Corp.,
6.25%, 11/1/19(1)(2)		5,970		5,851
Newfield Exploration Co.,
7.13%, 5/15/18		2,688		2,846
6.88%, 2/1/20		2,725		2,902
5.75%, 1/30/22		3,060		3,198
Phillips 66,
4.30%, 4/1/22(1)(2)		3,030		3,187
Pioneer Natural Resources Co.,
6.88%, 5/1/18		3,240		3,813
Plains Exploration & Production Co.,
7.63%, 6/1/18		2,325		2,470
6.13%, 6/15/19		3,880		3,899
6.75%, 2/1/22		3,125		3,188
QEP Resources, Inc.,
6.88%, 3/1/21		6,175		6,854
Range Resources Corp.,
5.75%, 6/1/21		2,985		3,119
Rowan Cos., Inc.,
4.88%, 6/1/22		1,960		1,977
				62,397

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 36.2% continued
Oil & Gas Services - 0.1%
Cameron International Corp.,
3.60%, 4/30/22	$	1,900	$	1,903
Packaging & Containers - 0.2%
Rock-Tenn Co.,
4.45%, 3/1/19(1)(2)		2,385		2,450
Pharmaceuticals - 0.6%
Express Scripts Holding Co.,
3.13%, 5/15/16		3,405		3,545
3.90%, 2/15/22(1)(2)		3,005		3,115
Medco Health Solutions, Inc.,
2.75%, 9/15/15		1,955		2,010
				8,670
Pipelines - 1.0%
Chesapeake Midstream Partners L.P./CHKM Finance Corp.,
6.13%, 7/15/22		3,410		3,342
Energy Transfer Partners L.P.,
6.50%, 2/1/42		2,810		3,011
Enterprise Products Operating LLC,
6.45%, 9/1/40		1,735		2,066
Kinder Morgan Finance Co. LLC,
6.00%, 1/15/18(1)(2)		4,200		4,368
Regency Energy Partners L.P./Regency Energy Finance Corp.,
6.50%, 7/15/21		2,955		3,103
				15,890
Real Estate Investment Trusts - 1.9%
American Tower Corp.,
4.50%, 1/15/18		3,375		3,567
Boston Properties L.P.,
3.70%, 11/15/18		2,370		2,476
3.85%, 2/1/23		2,875		2,902
DDR Corp.,
4.63%, 7/15/22		2,300		2,270
ERP Operating L.P.,
4.63%, 12/15/21		4,660		5,062
HCP, Inc.,
5.63%, 5/1/17		2,675		2,954
3.75%, 2/1/19		1,045		1,043
Health Care REIT, Inc.,
4.13%, 4/1/19		2,640		2,682
Ventas Realty L.P./Ventas Capital Corp.,
4.00%, 4/30/19		1,645		1,687
4.75%, 6/1/21		3,490		3,625
4.25%, 3/1/22		1,765		1,777
				30,045
Retail - 0.4%
CVS Caremark Corp.,
5.75%, 5/15/41		2,095		2,494
Macy’s Retail Holdings, Inc.,
5.13%, 1/15/42		2,685		2,827
Sally Holdings LLC/Sally Capital, Inc.,
5.75%, 6/1/22		1,500		1,569
				6,890
Semiconductors - 0.2%
Samsung Electronics America, Inc.,
1.75%, 4/10/17(1)(2)		2,805		2,798
Software - 0.3%
Fidelity National Information Services, Inc.,
5.00%, 3/15/22(1)(2)		5,120		5,210
Telecommunications - 2.1%
AT&T, Inc.,
1.70%, 6/1/17		2,340		2,351
5.50%, 2/1/18		2,930		3,481
5.55%, 8/15/41		1,755		2,092
CC Holdings GS V LLC/Crown Castle GS III Corp.,
7.75%, 5/1/17(1)(2)		3,530		3,826
CenturyLink, Inc.,
5.80%, 3/15/22		2,640		2,628
Frontier Communications Corp.,
8.25%, 4/15/17		4,950		5,321
Juniper Networks, Inc.,
5.95%, 3/15/41		2,250		2,590
Qwest Communications International, Inc.,
8.00%, 10/1/15		1,425		1,502
7.13%, 4/1/18		5,484		5,786
Windstream Corp.,
8.13%, 8/1/13		3,645		3,841
				33,418

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 36.2% continued
Transportation - 0.1%
CSX Corp.,
4.75%, 5/30/42	$	2,250	$	2,320
Total Corporate Bonds (Cost $546,094)				569,820
FOREIGN ISSUER BONDS - 9.6%
Banks - 0.8%
Abbey National Treasury Services PLC,
4.00%, 4/27/16		2,700		2,660
HSBC Holdings PLC,
4.00%, 3/30/22		2,550		2,648
ING Bank N.V.,
2.00%, 10/18/13(1) (2)		1,000		993
Lloyds TSB Bank PLC,
4.20%, 3/28/17		3,335		3,440
6.50%, 9/14/20(1) (2)		3,515		3,462
				13,203
Beverages - 0.6%
Heineken N.V.,
3.40%, 4/1/22(1) (2)		3,150		3,226
Pernod-Ricard S.A.,
4.45%, 1/15/22(1) (2)		2,570		2,663
4.25%, 7/15/22(1) (2)		695		713
SABMiller PLC,
6.50%, 7/1/16(1) (2)		1,815		2,119
				8,721
Chemicals - 0.7%
Agrium, Inc.,
6.13%, 1/15/41		2,515		3,081
LyondellBasell Industries N.V.,
5.00%, 4/15/19(1) (2)		4,300		4,510
6.00%, 11/15/21(1) (2)		2,600		2,853
				10,444
Computers - 0.3%
Seagate HDD Cayman,
6.88%, 5/1/20		3,915		4,209
Diversified Financial Services - 0.2%
Macquarie Group Ltd.,
7.30%, 8/1/14(1) (2)		2,990		3,183
Electric - 0.2%
PPL WEM Holdings PLC,
3.90%, 5/1/16(1) (2)		3,475		3,642
Food - 0.2%
Delhaize Group S.A.,
4.13%, 4/10/19		3,730		3,609
Healthcare - Products - 0.1%
Covidien International Finance S.A.,
3.20%, 6/15/22		2,100		2,165
Insurance - 1.1%
Allied World Assurance Co. Ltd.,
7.50%, 8/1/16		5,915		6,820
5.50%, 11/15/20		1,675		1,759
XL Group PLC,
6.50%, 4/15/17		11,450		9,303
				17,882
Leisure Time - 0.5%
Royal Caribbean Cruises Ltd.,
6.88%, 12/1/13		6,745		7,119
Media - 0.3%
Videotron Ltee,
5.00%, 7/15/22(2)		4,320		4,385
Mining - 0.3%
Teck Resources Ltd.,
3.00%, 3/1/19		1,605		1,595
Vale Overseas Ltd.,
4.38%, 1/11/22		2,640		2,688
				4,283
Miscellaneous Manufacturing - 0.4%
Bombardier, Inc.,
5.75%, 3/15/22(2)		7,125		7,098
Oil & Gas - 1.6%
Ensco PLC,
3.25%, 3/15/16		2,785		2,925
Nexen, Inc.,
6.40%, 5/15/37		4,325		4,583
Noble Holding International Ltd.,
3.95%, 3/15/22		2,575		2,604
Petrobras International Finance Co.,
3.88%, 1/27/16		1,095		1,131
3.50%, 2/6/17		3,670		3,767
Petro-Canada,
6.05%, 5/15/18		935		1,106

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 9.6% continued
Oil & Gas - 1.6% continued
Petroleos Mexicanos,
5.50%, 1/21/21	$	3,170	$	3,582
Total Capital S.A.,
4.45%, 6/24/20		1,585		1,811
Transocean, Inc.,
5.05%, 12/15/16		3,750		4,067
				25,576
Oil & Gas Services - 0.5%
Weatherford International Ltd.,
5.13%, 9/15/20		4,020		4,316
5.95%, 4/15/42		3,105		3,266
				7,582
Pharmaceuticals - 0.5%
GlaxoSmithKline Capital PLC,
1.50%, 5/8/17		2,640		2,645
Teva Pharmaceutical Finance II B.V./Teva Pharmaceutical Finance III LLC,
3.00%, 6/15/15		5,050		5,314
				7,959
Telecommunications - 1.0%
Intelsat Jackson Holdings S.A.,
7.25%, 10/15/20(1)(2)		4,025		4,226
Telefonaktiebolaget LM Ericsson,
4.13%, 5/15/22		3,180		3,189
Telefonica Moviles Chile S.A.,
2.88%, 11/9/15(1)(2)		3,740		3,759
Virgin Media Finance PLC,
5.25%, 2/15/22		3,850		3,937
				15,111
Transportation - 0.3%
Kansas City Southern de Mexico S.A.de C.V.,
6.63%, 12/15/20		4,595		5,112
Total Foreign Issuer Bonds (Cost $147,953)				151,283
U.S. GOVERNMENT AGENCIES - 33.7%(3)
Fannie Mae - 28.4%
Pool #255498,
5.50%, 12/1/34		1,016		1,116
Pool #535714,
7.50%, 1/1/31		74		90
Pool #545003,
8.00%, 5/1/31		4		5
Pool #545437,
7.00%, 2/1/32		161		188
Pool #545556,
7.00%, 4/1/32		115		137
Pool #555189,
7.00%, 12/1/32		720		851
Pool #581806,
7.00%, 7/1/31		268		318
Pool #735893,
5.00%, 10/1/35		8,968		9,753
Pool #796457,
6.00%, 9/1/34		3,686		4,114
Pool #831810,
6.00%, 9/1/36		6,481		7,221
Pool #845182,
5.50%, 11/1/35		6,358		6,982
Pool #888538,
5.50%, 1/1/37		1,520		1,667
Pool #890009,
5.50%, 9/1/36		6,175		6,789
Pool #893082,
2.74%, 9/1/36		2,564		2,753
Pool #919638,
5.50%, 9/1/37		5,150		5,619
Pool #929035,
6.50%, 1/1/38		4,068		4,593
Pool #932638,
5.00%, 3/1/40		12,622		13,928
Pool #946869,
6.00%, 9/1/37		1,369		1,509
Pool #955782,
6.50%, 10/1/37		815		923
Pool #966610,
6.00%, 12/1/37		2,443		2,692
Pool #990702,
6.50%, 9/1/38		3,519		3,974
Pool #991529,
6.00%, 11/1/38		4,352		4,798
Pool #993739,
6.00%, 9/1/38		3,629		3,999
Pool #AA7583,
4.50%, 6/1/39		4,758		5,209

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 33.7%(3) continued
Fannie Mae - 28.4% continued
Pool #AB1470,
4.50%, 9/1/40	$	6,419	$	6,908
Pool #AB2693,
4.50%, 4/1/41		12,039		13,157
Pool #AB3114,
5.00%, 6/1/41		7,204		7,904
Pool #AC6767,
4.50%, 1/1/40		3,918		4,299
Pool #AC9581,
5.50%, 1/1/40		6,394		7,035
Pool #AD0496,
6.00%, 10/1/39		11,244		12,391
Pool #AD0915,
5.50%, 12/1/38		395		436
Pool #AD1645,
5.00%, 3/1/40		14,774		16,138
Pool #AD6929,
5.00%, 6/1/40		6,511		7,112
Pool #AE6371,
4.00%, 12/1/40		13,122		13,988
Pool #AE6415,
4.00%, 10/1/40		7,486		8,115
Pool #AH1166,
4.50%, 12/1/40		14,846		16,110
Pool #AH1507,
4.50%, 12/1/40		11,419		12,529
Pool #AI4294,
4.50%, 6/1/41		4,566		4,923
Pool #AI5826,
4.00%, 9/1/41		9,535		10,168
Pool #AI9518,
4.00%, 9/1/41		14,062		14,995
Pool #AJ2166,
4.00%, 10/1/41		17,408		18,562
Pool #AJ4048,
4.00%, 10/1/41		9,180		9,840
Pool TBA,
6.00%, 8/1/29(4)		7,300		8,021
6.50%, 2/15/31(4)		5,125		5,761
4.00%, 8/1/40(4)		77,970		82,831
4.50%, 8/1/40(4)		22,327		23,932
5.00%, 8/1/40(4)		15,459		16,727
3.50%, 12/31/49(4)		15,025		15,750
5.50%, 12/31/49(4)		19,025		20,743
				447,603
Freddie Mac - 1.0%
Pool #1B3575,
6.06%, 9/1/37		1,652		1,799
Pool #1G2296,
6.20%, 11/1/37		4,500		4,925
Pool #1J0365,
3.01%, 4/1/37		1,772		1,901
Pool #1J2840,
5.86%, 9/1/37		1,494		1,590
Pool #848076,
5.49%, 6/1/38		3,454		3,738
Series 3730, Class PL,
4.50%, 1/15/33		1,266		1,307
				15,260
Freddie Mac Gold - 3.5%
Pool #A62213,
6.00%, 6/1/37		4,914		5,473
Pool #A65182,
6.50%, 9/1/37		7,150		8,028
Pool #A92650,
5.50%, 6/1/40		599		653
Pool #C00910,
7.50%, 1/1/30		304		371
Pool #C02790,
6.50%, 4/1/37		3,387		3,826
Pool #C02838,
5.50%, 5/1/37		4,938		5,434
Pool #C03517,
4.50%, 9/1/40		7,612		8,142
Pool #C03837,
3.50%, 4/1/42		17,968		18,950
Pool #G01954,
5.00%, 11/1/35		3,965		4,274
				55,151
Government National Mortgage Association - 0.4%
Series 2008, Class 8A,
3.61%, 8/16/27		9		9
Series 2012, Class 2A,
1.86%, 6/16/31		6,709		6,827
				6,836

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 33.7%(3) continued
Government National Mortgage Association II - 0.4%
Pool #82581,
4.00%, 7/20/40	$	6,216	$	6,619
Total U.S. Government Agencies (Cost $516,340)				531,469
U.S. GOVERNMENT OBLIGATIONS - 15.9%
U.S. Treasury Bonds - 1.9%
3.13%, 2/15/42		28,725		30,852
U.S. Treasury Inflation Indexed Bonds - 2.0%
0.75%, 2/15/42		28,970		30,938
U.S. Treasury Inflation Indexed Notes - 8.9%
2.00%, 1/15/14		30,455		39,367
1.63%, 1/15/15		36,645		46,914
0.13%, 4/15/17		50,000		53,457
				139,738
U.S. Treasury Notes - 3.1%
0.75%, 6/30/17		23,175		23,199
1.00%, 6/30/19		1,820		1,805
1.75%, 5/15/22		23,665		23,857
				48,861
Total U.S. Government Obligations (Cost $250,028)				250,389
MUNICIPAL BONDS - 0.5%
Ohio - 0.5%
American Municipal Power-Ohio, Inc. TRB, Series B, Build America Bonds, Combined Hydroelectric Projects,
7.83%, 2/15/41		5,365		7,493
Total Municipal Bonds (Cost $5,365)				7,493

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 9.3%
Northern Institutional Funds - Diversified Assets Portfolio (5) (6)		146,054,738	$	146,055
Total Investment Companies (Cost $146,055)				146,055

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT - TERM INVESTMENTS - 0.1%
U.S. Treasury Bill,
0.14%, 12/20/12	$	2,150	$	2,149
Total Short-Term Investments (Cost $2,149)				2,149
Total Investments- 108.6% (Cost $1,664,816)				1,710,249
Liabilities less Other Assets - (8.6)%				(135,047	)
NET ASSETS - 100.0%				1,575,202

(1) Restricted security that has been deemed illiquid. At June 30, 2012, the value of these restricted illiquid securities amounted to approximately $118,160,000 or 7.5% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
CC Holdings GS V LLC/Crown Castle GS III Corp.,
7.75%, 5/1/17	1/4/10	$	3,773
Continental Resources, Inc.,
5.00%, 9/15/22	3/5/12		5,120
Daimler Finance N.A. LLC,
1.65%, 4/10/15	4/2/12		2,763
ERAC USA Finance LLC,
7.00%, 10/15/37	10/10/07-9/29/11		4,121
Express Scripts Holdings Co.,
3.90%, 2/15/22	2/6/12		2940
Fidelity National Information Services, Inc.,
5.00%, 3/15/22	3/5/12		5,120
FMR LLC,
6.45%, 11/15/39	1/6/10-5/24/12		7,492
Ford Motor Credit Co. LLC,
4.21%, 4/15/16	8/15/11-9/29/11		1,883
Heineken N.V.,
3.40%, 4/1/22	3/29/12		3,142
Hyatt Hotels Corp.,
6.88%, 8/15/19	8/10/09		4,574
Hyundai Capital America,
4.00%, 6/8/17	12/1/11		1,663
ING Bank N.V.,
2.00%, 10/18/13	10/13/10		998
Intelsat Jackson Holdings S.A.,
7.25%, 10/15/20	4/13/12		4,095
Kinder Morgan Finance Co. LLC,
6.00%, 1/15/18	4/14/11-9/29/11		4,304
Liberty Mutual Group, Inc.,
4.95%, 5/1/22	5/1/12		1,889

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
Linn Energy LLC/Linn Energy Finance Corp.,
6.25%, 11/1/19	2/28/12	$	5,969
Lloyds TSB Bank PLC,
6.50%, 9/14/20	9/7/10		3,494
LyondellBasell Industries N.V.,
5.00%, 4/15/19	3/16/12		4,300
LyondellBasell Industries N.V.,
6.00%, 11/15/21	11/04/11-11/18/11		2,648
Macquarie Group Ltd.,
7.30%, 8/1/14	12/14/10-12/15/10		3,264
Metropolitan Life Global Funding I,
2.50%, 9/29/15	9/22/10		1,949
Nissan Motor Acceptance Corp.,
4.50%, 1/30/15	1/20/10-11/16/11		3,794
Pernod-Ricard S.A.,
4.45%, 1/15/22	10/20/11-11/17/11		2,568
Pernod-Ricard S.A.,
4.25%, 7/15/22	1/5/12		692
Phillips 66,
4.30%, 4/1/22	3/7/12		3,023
PPL WEM Holdings PLC,
3.90%, 5/1/16	4/18/11		3,471
Pricoa Global Funding I,
5.45%, 6/11/14	6/4/09		2,485
Puget Energy, Inc.,
5.63%, 7/15/22	6/12/12		2,330
Rock-Tenn Co.,
4.45%, 3/1/19	2/14/12		2,383
SABMiller Holdings, Inc.,
1.85%, 1/15/15	1/11/12		950
SABMiller PLC,
6.50%, 7/1/16	10/28/10-9/29/11		2,168
Samsung Electronics America, Inc.,
1.75%, 4/10/17	4/2/12		2,795
Telefonica Moviles Chile S.A.,
2.88%, 11/9/15	11/3/10		3,741
UR Merger Sub Corp.,
5.75%, 7/15/18	2/24/12-2/27/12		4,386
URS Corp.,
5.00%, 4/1/22	3/8/12		3,072

(2) 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.

(3) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed.

(4) When-Issued Security.

(5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(6) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $339,297,000 with net sales of approximately $193,242,000 during the three months ended June 30, 2012.

At June 30, 2012, the quality distribution for the Fixed Income Fund was:

QUALITY DISTRIBUTION*	% OF LONG-TERM INVESTMENTS
US Treasury		15.6	%
US Agency		30.3
AAA		2.7
AA		0.7
A		9.2
BBB		20.9
BB		10.1
B		2.0
Cash Equivalents		8.5
Total		100.0	%

* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s, and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Moody’s nomenclature, range from Aaa (judged to be of the highest quality, with minimal credit risk) to C (the lowest rated class of bonds, typically in default, with little prospect for recovery of principal or interest). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	1,665,203
Gross tax appreciation of investments	49,772
Gross tax depreciation of investments	(4,726	)
Net tax appreciation of investments	45,046

FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Fixed Income Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Asset-Backed Securities	$	—	$	51,591	(1)	$	—	$	51,591
Corporate Bonds		—		569,820	(1)		—		569,820
Foreign Issuer Bonds		—		151,283	(1)		—		151,283
U.S. Government Agencies		—		531,469	(1)		—		531,469
U.S. Government Obligations		—		250,389	(1)		—		250,389
Municipal Bonds		—		7,493			—		7,493
Investment Companies		146,055		—			—		146,055
Short-Term Investments		—		2,149			—		2,149
Total Investments	$	146,055	$	1,564,194		$	—	$	1,710,249

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

TRB - Tax Revenue Bonds

With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a pecentage of total net assets.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, 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 or the prerefunded date for these types of securities.

NORTHERN FUNDS QUARTERLY REPORT    11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL FIXED INCOME FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S) (1)		VALUE (000S)
DEBT OBLIGATIONS - 96.2%
Australian Dollar - 1.6%
Government of Australia,
4.75%, 10/21/15	$	161	$	177
4.75%, 6/15/16		18		20
5.75%, 5/15/21		10		12
				209
British Pound Sterling - 9.3%
Treasury of Great Britain,
4.50%, 3/7/13		63		101
3.75%, 9/7/20		138		254
3.75%, 9/7/21		89		164
5.00%, 3/7/25		122		253
4.25%, 12/7/27		29		57
4.75%, 12/7/30		48		98
4.25%, 3/7/36		34		65
4.75%, 12/7/38		35		73
4.25%, 12/7/40		26		51
4.50%, 12/7/42		16		32
4.25%, 12/7/49		16		31
				1,179
Canadian Dollar - 6.1%
Government of Canada,
5.00%, 6/1/14		730		771
Danish Krone - 1.5%
Government of Denmark,
4.00%, 11/15/12		100		17
4.00%, 11/15/15		375		72
4.00%, 11/15/19		132		27
3.00%, 11/15/21		170		33
4.50%, 11/15/39		150		38
				187
Euro - 17.8%
Bundesschatzanweisungen,
1.00%, 12/14/12		28		36
1.50%, 3/15/13		30		38
Deutschland Bundesrepublik,
2.50%, 1/4/21		56		77
3.25%, 7/4/21		27		39
2.25%, 9/4/21		23		31
6.25%, 1/4/24		16		30
4.75%, 7/4/28		30		50
6.25%, 1/4/30		19		37
4.75%, 7/4/34		33		59
3.25%, 7/4/42		13		20
Government of France O.A.T.,
4.25%, 10/25/18		34		50
3.75%, 10/25/19		100		140
2.50%, 10/25/20		77		98
3.75%, 4/25/21		41		57
3.00%, 4/25/22		55		71
6.00%, 10/25/25		58		96
5.50%, 4/25/29		17		28
5.75%, 10/25/32		29		50
4.00%, 10/25/38		36		50
4.00%, 4/25/55		31		42
Government of Netherlands,
4.00%, 7/15/16		143		203
4.00%, 7/15/19		11		16
3.50%, 7/15/20		17		24
3.75%, 1/15/23		25		37
7.50%, 1/15/23		4		8
5.50%, 1/15/28		10		17
4.00%, 1/15/37		13		21
3.75%, 1/15/42		7		11
Government of Spain,
5.00%, 7/30/12		57		72
2.50%, 10/31/13		50		62
3.30%, 10/31/14		174		215
3.80%, 1/31/17		20		24
Italy Buoni Poliennali Del Tesoro,
4.25%, 8/1/13		101		129
5.00%, 3/1/25(2)		57		66
5.25%, 11/1/29		157		182
5.00%, 8/1/34		62		68
				2,254
Japanese Yen - 21.9%
Government of Japan Five Year Bonds,
0.40%, 9/20/15		5,750		73
Government of Japan Forty Year Bonds,
2.40%, 3/20/48		6,150		84
Government of Japan Ten Year Bonds,
1.50%, 9/20/14		19,700		254
1.50%, 9/20/15		5,450		71
1.50%, 12/20/17		11,950		160
1.30%, 12/20/18		40,000		530
1.30%, 9/20/19		18,500		245
1.00%, 9/20/20		19,000		246

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)(1)		VALUE (000S)
DEBT OBLIGATIONS - 96.2% continued
Japanese Yen - 21.9% continued
Government of Japan Thirty Year Bonds,
2.50%, 9/20/36	$	12,050	$	171
2.20%, 9/20/39		13,950		187
Government of Japan Twenty Year Bonds,
1.90%, 3/22/21		4,050		56
1.80%, 6/20/23		50,000		681
1.80%, 6/20/30		1,450		19
				2,777
United States Dollar - 38.0%
Freddie Mac,
5.13%, 7/15/12		750		751
U.S. Treasury Bonds,
7.13%, 2/15/23		71		108
6.00%, 2/15/26		83		121
6.50%, 11/15/26		98		151
6.38%, 8/15/27		50		77
6.13%, 8/15/29		57		88
5.38%, 2/15/31		32		46
4.50%, 2/15/36		106		142
3.50%, 2/15/39		178		206
4.25%, 5/15/39		133		174
4.75%, 2/15/41		166		235
U.S. Treasury Notes,
0.75%, 6/15/14		1,880		1,896
3.50%, 5/15/20		151		176
2.63%, 8/15/20		151		167
2.00%, 2/15/22		450		465
				4,803
Total Debt Obligations (Cost $11,487)				12,180

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 3.0%
Northern Institutional Funds - Diversified Assets Portfolio (3) (4)		377,215	$	377
Total Investment Companies (Cost $377)				377
Total Investments - 99.2% (Cost $11,864)				12,557
Other Assets less Liabilities - 0.8%				99
NET ASSETS - 100.0%			$	12,656

(1) Principal amounts stated in local currencies.

(2) 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.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(4) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $330,000 with net purchases of approximately $47,000 during the three months ended June 30, 2012.

With respect to the Schedule 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 the date of purchase for discounted notes, or, 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 or the prerefunded date for these types of securities.

At June 30, 2012, the Global Fixed Income Fund had outstanding foreign currency exchange contracts as follows:

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS  (LOSSES) (000S)
Australian Dollar		293	United States Dollar		290		9/14/12	$	(7	)
Australian Dollar		23	United States Dollar		23		9/14/12		(1	)
Canadian Dollar		298	United States Dollar		290		9/14/12		(2	)
Canadian Dollar		250	United States Dollar		248		9/14/12		3
Danish Krone		616	United States Dollar		105		9/14/12		—	*
Euro		576	United States Dollar		720		9/14/12		(10	)
Euro		555	United States Dollar		700		9/14/12		(3	)
Euro		219	United States Dollar		276		9/14/12		(1	)
British Pound		257	United States Dollar		400		9/14/12		(3	)
British Pound		129	United States Dollar		200		9/14/12		(2	)
British Pound		272	United States Dollar		425		9/14/12		—	*
British Pound		96	United States Dollar		150		9/14/12		—	*
British Pound		364	United States Dollar		583		9/14/12		13
Japanese Yen		44,048	United States Dollar		550		9/14/12		(2	)
Japanese Yen		38,137	United States Dollar		480		9/14/12		2
Japanese Yen		41,206	United States Dollar		520		9/14/12		4
Japanese Yen		138,998	United States Dollar		1,750		9/14/12		9
British Pound		278	Euro		345		9/14/12		2
Euro		345	British Pound		278		9/14/12		(2	)
United States Dollar		200	Australian Dollar		201		9/14/12		4

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
United States Dollar		190	Euro		149		9/14/12	$	(2	)
United States Dollar		1,006	Euro		798		9/14/12		5
United States Dollar		431	Euro		345		9/14/12		7
United States Dollar		754	Euro		601		9/14/12		7
United States Dollar		158	British Pound		102		9/14/12		1
United States Dollar		372	British Pound		240		9/14/12		4
United States Dollar		890	British Pound		574		9/14/12		8
United States Dollar		1,554	Japanese Yen		122,500		9/14/12		(20	)
United States Dollar		2,526	Japanese Yen		200,110		9/14/12		(20	)
United States Dollar		509	Japanese Yen		40,737		9/14/12		1
United States Dollar		128	Swedish Krona		917		9/14/12		4
Total									(1	)

* Amount rounds to less than one thousand.

At June 30, 2012, the quality distribution for the Global Fixed Income Fund was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
U.S. Government		32.4	%
Agency		6.0
AAA		30.0
AA		15.6
A		10.0
BBB		3.0
Cash Equivalents		3.0
Total		100.0	%

* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). U.S. government securities consist of obligations issued or guaranteed by the U.S. Treasury. Agency securities consist of obligations issued or guaranteed by U.S. government agencies, foreign government agencies, and their respective sponsored enterprises. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	11,864
Gross tax appreciation of investments	$	924
Gross tax depreciation of investments		(231	)
Net tax appreciation of investments	$	693

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Global Fixed Income Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Debt Obligations	$	—	$	12,180	(1)	$	—	$	12,180
Investment Companies		377		—			—		377
Total Investments	$	377	$	12,180		$	—	$	12,557
OTHER FINANCIAL INSTRUMENTS
Assets
Foreign Currency
Exchange Contracts	$	—	$	74		$	—	$	74
Liabilities
Foreign Currency
Exchange Contracts		—		(75	)		—		(75	)
Total Other Financial Instruments	$	—	$	(1	)	$	—	$	(1	)

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 74.4%
Auto Manufacturers - 0.5%
Chrysler Group LLC/CG Co-Issuer, Inc.,
8.00%, 6/15/19	$	29,920	$	30,743
Auto Parts & Equipment - 1.9%
Goodyear Tire & Rubber (The) Co.,
8.25%, 8/15/20		27,158		28,754
Meritor, Inc.,
10.63%, 3/15/18		24,100		25,606
Pittsburgh Glass Works LLC,
8.50%, 4/15/16(1)		28,950		26,634
UCI International, Inc.,
8.63%, 2/15/19		29,818		30,004
				110,998
Banks - 0.4%
Capital One Capital V,
10.25%, 8/15/39		20,540		20,951
Chemicals - 0.8%
Huntsman International LLC,
8.63%, 3/15/20		24,200		27,165
JM Huber Corp.,
9.88%, 11/1/19(1)		18,055		19,409
				46,574
Coal - 0.5%
SunCoke Energy, Inc.,
7.63%, 8/1/19		31,180		30,479
Commercial Services - 5.4%
Alliance Data Systems Corp.,
6.38%, 4/1/20(1)		29,800		30,545
Brickman Group Holdings, Inc.,
9.13%, 11/1/18(1)		21,752		21,208
Hertz (The) Corp.,
7.50%, 10/15/18		12,875		13,808
6.75%, 4/15/19(1)		14,375		14,950
7.38%, 1/15/21		7,725		8,266
Monitronics International, Inc.,
9.13%, 4/1/20(1)		29,825		28,632
Neff Rental LLC/Neff Finance Corp.,
9.63%, 5/15/16(1)		25,021		24,896
NESCO LLC/NESCO Holdings Corp.,
11.75%, 4/15/17(1)		31,425		32,211
Production Resource Group, Inc.,
8.88%, 5/1/19		25,975		19,611
RSC Equipment Rental, Inc./RSC Holdings III LLC,
10.25%, 11/15/19		22,845		25,701
Service Corp. International,
7.50%, 4/1/27		28,729		29,447
ServiceMaster Co.,
8.00%, 2/15/20		18,643		20,298
Sunstate Equipment Co. LLC/Sunstate Equipment Co., Inc.,
12.00%, 6/15/16(1)		10,575		10,839
TransUnion Holding Co., Inc.,
9.63%, 6/15/18(1)		26,385		28,496
				308,908
Distribution/Wholesale - 0.5%
American Tire Distributors, Inc.,
9.75%, 6/1/17		25,450		27,104
Diversified Financial Services - 1.7% ,
CNG Holdings, Inc.
9.38%, 5/15/20(1)		30,225		30,981
Community Choice Financial, Inc.,
10.75%, 5/1/19(1)		29,500		29,205
Nationstar Mortgage LLC/Nationstar Capital Corp.,
9.63%, 5/1/19(1)		21,375		22,604
Speedy Cash Intermediate Holdings Corp.,
10.75%, 5/15/18(1)		16,930		17,480
				100,270
Electric - 2.8%
AES (The) Corp.,
9.75%, 4/15/16		25,054		29,689
Calpine Corp.,
7.50%, 2/15/21(1)		15,275		16,497
7.88%, 1/15/23(1)		19,700		21,473
Covanta Holding Corp.,
6.38%, 10/1/22		18,835		19,908
Energy Future Holdings Corp.,
10.00%, 1/15/20		55,646		59,402
North American Energy Alliance LLC/North American Energy Alliance Finance Corp.,
10.88%, 6/1/16		11,813		12,965
				159,934

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 74.4% continued
Electronics - 1.1%
Sanmina-SCI Corp.,
7.00%, 5/15/19(1)	$	29,850	$	28,955
Viasystems, Inc.,
7.88%, 5/1/19(1)		33,343		33,343
				62,298
Engineering & Construction - 0.0%
MasTec, Inc.,
7.63%, 2/1/17		2,475		2,568
Entertainment - 1.4%
AMC Entertainment, Inc.,
8.75%, 6/1/19		25,075		26,893
National CineMedia LLC,
7.88%, 7/15/21		26,310		27,889
Pinnacle Entertainment, Inc.,
7.75%, 4/1/22		25,948		27,732
				82,514
Environmental Control - 0.4%
Casella Waste Systems, Inc.,
7.75%, 2/15/19		24,490		24,123
Food - 1.6%
BI-LO LLC/BI-LO Finance Corp.,
9.25%, 2/15/19(1)		29,690		31,917
Post Holdings, Inc.,
7.38%, 2/15/22(1)		28,100		29,645
U.S. Foods, Inc.,
8.50%, 6/30/19(1)		27,452		27,864
				89,426
Forest Products & Paper - 0.6%
Verso Paper Holdings LLC/Verso Paper, Inc.,
11.75%, 1/15/19(1)		35,300		35,653
Gaming - 3.0%
Peninsula Gaming LLC/Peninsula Gaming Corp.,
10.75%, 8/15/17		28,850		32,889
Rivers Pittsburgh Borrower L.P./Rivers Pittsburgh Finance Corp.,
9.50%, 6/15/19(1)		21,316		22,142
ROC Finance LLC/ROC Finance 1 Corp.,
12.13%, 9/1/18(1)		25,925		29,166
Scientific Games International, Inc.,
9.25%, 6/15/19		22,672		24,826
Station Casinos LLC,
3.66%, 6/18/18(1)		40,690		30,619
Yonkers Racing Corp.,
11.38%, 7/15/16(1)		29,097		30,915
				170,557
Gas Distribution - 0.3%
AmeriGas Partners L.P./AmeriGas Finance Corp.,
6.25%, 8/20/19		16,275		16,356
Hand/Machine Tools - 0.5%
Thermadyne Holdings Corp.,
9.00%, 12/15/17		25,500		26,074
Healthcare - Products - 0.4%
Accellent, Inc.,
10.00%, 11/1/17		23,922		20,095
Healthcare - Services - 3.6%
American Renal Associates Holdings, Inc.,
9.75%, 3/1/16		19,951		21,198
AMERIGROUP Corp.,
7.50%, 11/15/19		30,306		32,579
CHS/Community Health Systems, Inc.,
8.00%, 11/15/19		15,275		16,268
Emergency Medical Services Corp.,
8.13%, 6/1/19(1)		29,968		31,279
HCA, Inc.,
6.50%, 2/15/20		20,797		22,539
HealthSouth Corp.,
8.13%, 2/15/20		25,513		27,873
Multiplan, Inc.,
9.88%, 9/1/18(1)		27,275		29,866
Tenet Healthcare Corp.,
6.88%, 11/15/31		32,365		27,429
				209,031
Home Builders - 0.9%
Beazer Homes USA, Inc.,
6.88%, 7/15/15		19,200		18,432
9.13%, 6/15/18		17,900		15,797
Meritage Homes Corp.,
7.15%, 4/15/20		18,629		19,374
				53,603

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 74.4% continued
Household Products/Wares - 1.0%
American Greetings Corp.,
7.38%, 12/1/21	$	26,685	$	28,286
Prestige Brands, Inc.,
8.25%, 4/1/18		26,085		28,563
				56,849
Insurance - 1.9%
CNO Financial Group, Inc.,
9.00%, 1/15/18(1)		30,754		33,137
Glen Meadow Pass-Through Trust,
6.51%, 2/12/67(1)		31,100		22,392
Liberty Mutual Group, Inc.,
10.75%, 6/15/58(1)		25,859		35,168
Symetra Financial Corp.,
8.30%, 10/15/37(1)		16,970		16,546
				107,243
Iron/Steel - 0.6%
AK Steel Corp.,
8.38%, 4/1/22		19,425		16,511
Ryerson Holding Corp.,
28.14%, 2/1/15(2)		30,960		16,099
				32,610
Lodging - 1.2%
Caesars Entertainment Operating Co., Inc.,
11.25%, 6/1/17		15,625		17,051
10.00%, 12/15/18		27,350		18,701
MGM Resorts International,
8.63%, 2/1/19(1)		29,975		32,073
				67,825
Media - 5.1%
Bresnan Broadband Holdings LLC,
8.00%, 12/15/18(1)		29,143		30,454
Clear Channel Communications, Inc.,
10.75%, 8/1/16		21,675		13,655
9.00%, 3/1/21		16,325		14,203
Clear Channel Worldwide Holdings, Inc.,
7.63%, 3/15/20(1)		19,950		19,501
DISH DBS Corp.,
6.75%, 6/1/21		20,100		21,708
Harron Communications L.P./Harron
Finance Corp.,
9.13%, 4/1/20(1)		30,695		31,769
Hughes Satellite Systems Corp.,
7.63%, 6/15/21		30,078		32,710
McClatchy (The) Co.,
11.50%, 2/15/17		37,109		38,501
Mediacom LLC/Mediacom Capital Corp.,
7.25%, 2/15/22		26,075		26,531
Townsquare Radio LLC/Townsquare
Radio, Inc.,
9.00%, 4/1/19(1)		27,100		28,320
Univision Communications, Inc.,
8.50%, 5/15/21(1)		37,557		37,839
				295,191
Miscellaneous Manufacturing - 0.6%
Park-Ohio Industries, Inc.,
8.13%, 4/1/21		32,250		32,976
Oil & Gas - 5.8%
Aurora USA Oil & Gas, Inc.,
9.88%, 2/15/17(1)		25,290		25,922
BreitBurn Energy Partners L.P./BreitBurn Finance Corp.,
8.63%, 10/15/20		27,618		29,206
Clayton Williams Energy, Inc.,
7.75%, 4/1/19		21,025		20,604
Laredo Petroleum, Inc.,
9.50%, 2/15/19		29,575		32,976
Linn Energy LLC/Linn Energy Finance Corp.,
8.63%, 4/15/20		32,998		35,555
Magnum Hunter Resources Corp.,
9.75%, 5/15/20(1)		7,625		7,396
Northern Oil and Gas, Inc.,
8.00%, 6/1/20(1)		28,800		28,656
Oasis Petroleum, Inc.,
6.50%, 11/1/21		24,215		23,973
6.88%, 1/15/23		4,775		4,793
SM Energy Co.,
6.50%, 1/1/23(1) (3)		23,400		23,576
Swift Energy Co.,
7.13%, 6/1/17		16,030		16,150
Unit Corp.,
6.63%, 5/15/21		26,883		26,749
Vanguard Natural Resources LLC/VNR Finance Corp.,
7.88%, 4/1/20		29,525		29,525

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 74.4% continued
Oil & Gas - 5.8% continued
WPX Energy, Inc.,
6.00%, 1/15/22(1)	$	31,475	$	31,318
				336,399
Oil & Gas Services - 1.4%
Basic Energy Services, Inc.,
7.75%, 2/15/19		30,931		29,694
Chesapeake Oilfield Operating LLC/Chesapeake Oilfield Finance, Inc.,
6.63%, 11/15/19(1)		28,550		25,695
Dresser-Rand Group, Inc.,
6.50%, 5/1/21		25,480		26,435
				81,824
Oil Refining & Marketing - 1.2%
Citgo Petroleum Corp.,
11.50%, 7/1/17(1)		34,439		38,658
PBF Holding Co. LLC/PBF Finance Corp.,
8.25%, 2/15/20(1)		28,300		28,229
				66,887
Packaging & Containers - 3.1%
Berry Plastics Corp.,
9.50%, 5/15/18		33,070		35,219
Exopack Holding Corp.,
10.00%, 6/1/18		30,735		30,812
Plastipak Holdings, Inc.,
10.63%, 8/15/19(1)		20,700		23,469
Pretium Packaging LLC/Pretium Finance, Inc.,
11.50%, 4/1/16		22,465		22,690
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu,
9.00%, 4/15/19(1)		41,450		41,346
Tekni-Plex, Inc.,
9.75%, 6/1/19(1)		26,225		26,487
				180,023
Pharmaceuticals - 0.4%
Alvogen Pharma US, Inc.,
10.50%, 3/15/19(1) (3)		14,375		14,375
JPR Royalty Sub LLC,
14.00%, 12/1/20(1) (3)		8,000		8,000
QHP Royalty Sub LLC,
10.25%, 3/15/15(1) (3)		745		746
				23,121
Pipelines - 3.2%
Chesapeake Midstream Partners L.P./CHKM Finance Corp.,
6.13%, 7/15/22		25,300		24,794
Crosstex Energy L.P./Crosstex Energy Finance Corp.,
7.13%, 6/1/22(1)		25,350		24,970
Energy Transfer Equity L.P.,
7.50%, 10/15/20		29,460		32,333
Genesis Energy L.P./Genesis Energy Finance Corp.,
7.88%, 12/15/18		24,450		25,061
Holly Energy Partners L.P./Holly Energy Finance Corp.,
8.25%, 3/15/18		31,705		33,607
Martin Midstream Partners L.P./Martin Midstream Finance Corp.,
8.88%, 4/1/18		18,158		18,340
Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,
7.88%, 10/15/18		14,600		15,768
6.88%, 2/1/21		8,233		8,562
				183,435
Real Estate Investment Trusts - 1.2%
Entertainment Properties Trust,
7.75%, 7/15/20		22,075		24,271
MPT Operating Partnership L.P./MPT Finance Corp.,
6.38%, 2/15/22		9,600		9,624
Omega Healthcare Investors, Inc.,
5.88%, 3/15/24(1)		20,690		20,690
Senior Housing Properties Trust,
6.75%, 12/15/21		15,780		17,158
				71,743
Retail - 7.0%
99 Cents Only Stores,
11.00%, 12/15/19(1)		27,500		29,700
Carrols Restaurant Group, Inc.,
11.25%, 5/15/18(1)		21,925		23,021
CKE Holdings, Inc.,
10.50%, 3/14/16(1)		19,495		21,347
CKE Restaurants, Inc.,
11.38%, 7/15/18		18,242		20,842
Fiesta Restaurant Group, Inc.,
8.88%, 8/15/16(1)		24,355		25,573

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 74.4% continued
Retail - 7.0% continued
Jo-Ann Stores, Inc.,
8.13%, 3/15/19(1)	$	31,240	$	31,084
Landry’s, Inc.,
9.38%, 5/1/20(1)		26,175		26,600
NPC International, Inc./NPC Operating Co. A, Inc./NPC Operating Co. B, Inc.,
10.50%, 1/15/20		24,975		27,660
Pantry (The), Inc.,
7.75%, 2/15/14		31,291		31,291
Rite Aid Corp.,
10.38%, 7/15/16		15,140		16,020
9.25%, 3/15/20(1)		44,400		44,511
Ruby Tuesday, Inc.,
7.63%, 5/15/20(1)		4,000		3,570
Sally Holdings LLC/Sally Capital, Inc.,
5.75%, 6/1/22		27,575		28,850
Sonic Automotive, Inc.,
9.00%, 3/15/18		19,765		21,495
7.00%, 7/15/22(1) (3)		9,550		9,884
Toys R Us Property Co. I LLC,
10.75%, 7/15/17		35,881		39,200
				400,648
Semiconductors - 0.6%
Freescale Semiconductor, Inc.,
9.25%, 4/15/18(1)		31,663		33,879
Software - 2.2%
Epicor Software Corp.,
8.63%, 5/1/19		29,650		30,243
First Data Corp.,
7.38%, 6/15/19(1)		34,525		35,215
Lawson Software, Inc.,
11.50%, 7/15/18(1)		29,132		32,919
Sophia L.P./Sophia Finance, Inc.,
9.75%, 1/15/19(1)		28,091		29,847
				128,224
Telecommunications - 6.9%
Alcatel-Lucent USA, Inc.,
6.45%, 3/15/29		29,375		19,975
Avaya, Inc.,
10.13%, 11/1/15(4)		31,175		25,875
Clearwire Communications LLC/Clearwire Finance, Inc.,
12.00%, 12/1/15(1)		30,475		27,732
CPI International, Inc.,
8.00%, 2/15/18		21,600		19,467
EarthLink, Inc.,
8.88%, 5/15/19		31,775		30,941
Frontier Communications Corp.,
8.50%, 4/15/20		20,175		21,385
9.00%, 8/15/31		13,215		12,620
GCI, Inc.,
8.63%, 11/15/19		27,930		29,257
Level 3 Financing, Inc.,
8.63%, 7/15/20		28,125		29,531
PAETEC Holding Corp.,
9.88%, 12/1/18		20,745		23,183
Qwest Capital Funding, Inc.,
7.75%, 2/15/31		31,210		30,733
Sprint Nextel Corp.,
9.13%, 3/1/17(1)		18,275		19,189
9.00%, 11/15/18(1)		22,850		25,535
Trilogy International Partners LLC/Trilogy International Finance, Inc.,
10.25%, 8/15/16(1)		31,890		25,990
West Corp.,
8.63%, 10/1/18		24,730		26,214
Windstream Corp.,
8.13%, 9/1/18		26,605		28,600
				396,227
Transportation - 1.6%
ACL I Corp.,
10.63%, 2/15/16(1)		33,561		33,561
Florida East Coast Holdings Corp.,
10.50%, 8/1/17		11,706		9,951
Florida East Coast Railway Corp.,
8.13%, 2/1/17		21,135		22,086
Quality Distribution LLC/QD Capital Corp.,
9.88%, 11/1/18		25,900		28,360
				93,958
Trucking & Leasing - 1.1%
Air Lease Corp.,
5.63%, 4/1/17(1)		11,775		11,598
7.38%, 1/30/19(1) (3)		24,000		24,480

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 74.4% continued
Trucking & Leasing - 1.1% continued
International Lease Finance Corp.,
8.75%, 3/15/17	$	26,162	$	29,367
				65,445
Total Corporate Bonds (Cost $4,208,879)				4,282,766
FOREIGN ISSUER BONDS - 19.8%
Aerospace/Defense - 0.5%
Bombardier, Inc.,
7.45%, 5/1/34(1)		27,286		27,422
Aluminum - 0.5%
Novelis, Inc.,
8.38%, 12/15/17		11,887		12,719
8.75%, 12/15/20		13,634		14,691
				27,410
Banks - 0.4%
Royal Bank of Scotland Group PLC,
7.64%, 9/29/17		34,225		22,760
Chemicals - 0.6%
Ineos Finance PLC,
7.50%, 5/1/20(1)		33,475		33,726
Computers - 0.5%
MMI International Ltd.,
8.00%, 3/1/17(1)		29,830		30,725
Diversified Financial Services - 0.4%
National Money Mart Co.,
10.38%, 12/15/16		21,705		23,930
Food - 0.5%
JBS Finance II Ltd.,
8.25%, 1/29/18(1)		30,750		29,827
Forest Products & Paper - 0.4%
Sappi Papier Holding GmbH,
7.75%, 7/15/17(1) (5)		13,825		13,998
8.38%, 6/15/19(1) (5)		7,150		7,159
				21,157
Insurance - 1.9%
Catlin Insurance Co. Ltd.,
7.25%, 1/19/17(1) (3)		33,636		29,599
QBE Capital Funding III Ltd.,
7.25%, 5/24/41(1)		31,855		28,747
White Mountains Re Group Ltd.,
7.51%, 6/30/17(1)		29,150		27,957
XL Capital PLC,
6.50%, 4/15/17		29,415		23,900
				110,203
Iron/Steel - 0.5%
Ferrexpo Finance PLC,
7.88%, 4/7/16(1)		31,625		28,542
Machinery - Construction & Mining - 0.5%
Boart Longyear Management Pty Ltd.,
7.00%, 4/1/21(1)		29,510		30,174
Media - 1.7%
Nara Cable Funding Ltd.,
8.88%, 12/1/18(1)		32,850		28,251
8.88%, 12/1/18(1)		8,000		6,800
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH,
7.50%, 3/15/19(1)		26,445		28,032
UPC Holding B.V.,
9.88%, 4/15/18(1)		32,017		35,058
				98,141
Mining - 0.5%
Vedanta Resources PLC,
9.50%, 7/18/18(1)		28,725		28,869
Oil & Gas - 2.4%
Kodiak Oil & Gas Corp.,
8.13%, 12/1/19(1)		27,100		27,913
Lone Pine Resources Canada Ltd.,
10.38%, 2/15/17(1)		24,000		22,620
Lukoil International Finance B.V.,
6.13%, 11/9/20(1)		31,050		32,562
OGX Austria GmbH,
8.50%, 6/1/18(1)		31,775		28,280
PetroBakken Energy Ltd.,
8.63%, 2/1/20(1)		29,000		28,855
				140,230
Oil & Gas Services - 0.4%
Offshore Group Investment Ltd.,
11.50%, 8/1/15		24,355		26,425

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 19.8% continued
Pharmaceuticals - 0.5%
Warner Chilcott Co. LLC/Warner Chilcott Finance LLC,
7.75%, 9/15/18	$	25,730	$	27,595
Telecommunications - 4.9%
Columbus International, Inc.,
11.50%, 11/20/14(1)		27,815		29,624
Digicel Group Ltd.,
8.88%, 1/15/15(1)		40,075		40,476
Eileme 1 AB,
14.25%, 8/15/20(1)		14,400		13,680
Eileme 2 AB,
11.63%, 1/31/20(1)		19,450		19,985
Intelsat Luxembourg S.A.,
11.25%, 2/4/17		47,560		48,987
11.50%, 2/4/17(4)		19,351		19,980
Sable International Finance Ltd.,
8.75%, 2/1/20(1)		23,755		25,418
Telemovil Finance Co. Ltd.,
8.00%, 10/1/17(1)		29,200		29,929
Telesat Canada/Telesat LLC,
6.00%, 5/15/17(1)		24,800		25,234
Wind Acquisition Finance S.A.,
11.75%, 7/15/17(1)		26,365		21,289
Wind Acquisition Holdings Finance S.A.,
12.25%, 7/15/17(1) (4)		9,954		6,818
				281,420
Transportation - 1.3%
Navios Maritime Acquisition Corp./Navios Acquisition Finance US, Inc.,
8.63%, 11/1/17		30,805		28,649
Navios Maritime Holdings, Inc./Navios Maritime Finance US, Inc.,
8.88%, 11/1/17(1) (3) (5)		14,300		14,335
8.88%, 11/1/17		9,250		9,319
Navios South American Logistics, Inc./Navios Logistics Finance US, Inc.,
9.25%, 4/15/19		22,100		20,332
				72,635
Trucking & Leasing - 1.4%
AerCap Aviation Solutions B.V.,
6.38%, 5/30/17(1)		26,225		26,356
Aircastle Ltd.,
6.75%, 4/15/17		28,477		28,762
AWAS Aviation Capital Ltd.,
7.00%, 10/17/16(1)		24,751		25,617
				80,735
Total Foreign Issuer Bonds (Cost $1,148,733)				1,141,926
	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 0.0%
Oil & Gas - 0.0%
Compton Petroleum Corp.		756,583	$	817
Total Common Stocks (Cost $7,486)				817
PREFERRED STOCKS - 0.8%
Banks - 0.4%
Santander Finance Preferred S.A.U.		947,000		24,915
Diversified Financial Services - 0.4%
GMAC Capital Trust I		905,850		21,786
Total Preferred Stocks (Cost $47,913)				46,701

	NUMBER OF WARRANTS		VALUE (000S)
WARRANTS - 0.0%
Compton Petroleum Corp. Exp. 8/23/14, Strike $11.92		42,192	$	21
Total Warrants (Cost $ — )				21

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 3.0%
Northern Institutional Funds - Diversified Assets Portfolio(6) (7)		170,025,100	$	170,025
Total Investment Companies (Cost $170,025)				170,025
Total Investments - 98.0% (Cost $5,583,036)				5,642,256
Other Assets less Liabilities - 2.0%				115,578
NET ASSETS - 100.0%			$	5,757,834

(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) Zero coupon bond reflects effective yield on the date of purchase.

(3) Restricted security that has been deemed illiquid. At June 30, 2012, the value of these restricted illiquid securities amounted to approximately $90,166,000 or 1.6% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
Air Lease Corp.,
7.38%, 1/30/19	1/20/12	$	23,356
Alvogen Pharma US, Inc.,
10.50%, 3/15/19	3/13/12		14,375
Catlin Insurance Co. Ltd.,
7.25%, 1/19/17	4/29/09-5/9/12		26,937
JPR Royalty Sub LLC,
14.00%, 12/1/20	3/10/11		8,000
North American Energy Alliance LLC/North American Energy Alliance Finance Corp.,
10.88%, 6/1/16	9/22/09-1/31/12		11,925
QHP Royalty Sub LLC,
10.25%, 3/15/15	10/27/09		745

(4) Security is payment in-kind bond.

(5) When-Issued Security.

(6) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(7) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $202,798,000 with net sales of approximately $32,773,000 during the three months ended June 30, 2012.

With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of total nets assets.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, 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 or the prerefunded date for these types of securities.

Percentages shown are based on Net Assets.

At June 30, 2012, the quality distribution for High Yield Fixed Income Fund was:

QUALITY DISTRIBUTION*	% OF LONG TERM INVESTMENTS
BBB		2.4	%
BB		22.8	%
B		41.8	%
CCC		25.1	%
CC to D		0.5	%
Not rated		4.4	%
Cash Equivalents		3.0	%
Total		100.0	%

* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	5,591,701
Gross tax appreciation of investments	$	151,574
Gross tax depreciation of investments		(101,019	)
Net tax appreciation of investments	$	50,555

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Valuations based on inputs that are unobservable and insignificant. The Fund utilized the following techniques on Level 3 investments: The Fund valued certain securities using prices provided by a broker and NTGI PVC.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the High Yield Fixed Income Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Corporate Bonds
Auto Manufacturers	$	—		$	30,743		$	—	$	30,743
Auto Parts & Equipment		—			110,998			—		110,998
Banks		—			20,951			—		20,951
Chemicals		—			46,574			—		46,574
Coal		—			30,479			—		30,479
Commercial Services		—			308,908			—		308,908
Distribution/Wholesale		—			27,104			—		27,104
Diversified Financial Services		—			100,270			—		100,270
Electric		—			159,934			—		159,934
Electronics		—			62,298			—		62,298
Engineering & Construction		—			2,568			—		2,568
Entertainment		—			82,514			—		82,514
Environmental Control		—			24,123			—		24,123
Food		—			89,426			—		89,426
Forest Products & Paper		—			35,653			—		35,653
Gaming		—			170,557			—		170,557
Gas Distribution		—			16,356			—		16,356
Hand/Machine Tools		—			26,074			—		26,074
Healthcare - Products		—			20,095			—		20,095
Healthcare - Services		—			209,031			—		209,031
Home Builders		—			53,603			—		53,603
Household Products/Wares		—			56,849			—		56,849
Insurance		—			107,243			—		107,243
Iron/Steel		—			32,610			—		32,610
Lodging		—			67,825			—		67,825
Media		—			295,191			—		295,191
Miscellaneous Manufacturing		—			32,976			—		32,976
Oil & Gas		—			336,399			—		336,399
Oil & Gas Services		—			81,824			—		81,824
Oil Refining & Marketing		—			66,887			—		66,887
Packaging & Containers		—			180,023			—		180,023
Pharmaceuticals		—			746			22,375		23,121
Pipelines		—			183,435			—		183,435
Real Estate Investment Trusts		—			71,743			—		71,743
Retail		—			400,648			—		400,648
Semiconductors		—			33,879			—		33,879
Software		—			128,224			—		128,224
Telecommunications		—			396,227			—		396,227
Transportation		—			93,958			—		93,958
Trucking & Leasing		—			40,965			24,480		65,445
Foreign Issuer Bonds		—			1,141,926	(1)		—		1,141,926
Common Stocks		—			817			—		817
Preferred Stocks		46,701	(1)		—			—		46,701
Warrants		21			—			—		21
Investment Companies		170,025			—			—		170,025
Total Investments	$	216,747		$	5,378,654		$	46,855	$	5,642,256

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, the Fund had transfers from Level 1 to Level 2 and transfers from Level 3 to Level 2 as dislcosed below:

Transfers from Level 1 to Level 2
Industry	Value (000S)		Reason
Common Stocks
Oil & Gas	$	817		Valuations at bid price
Total	$	817

U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	BALANCE AS OF 3/31/12 (000S)		REALIZED GAINS (000S)		REALIZED LOSSES (000S)			CHANGE IN UNREALIZED APPRECI- ATION (000S)		CHANGE  IN UNREALIZED DEPRECI- ATION (000S)		PURCHASES (000S)		SALES (000S)			TRANSFERS INTO LEVEL 3 (000S)		TRANSFERS OUT OF LEVEL 3 (000S)		BALANCE AS OF 6/30/12 (000S)
Corporate Bonds
Diversified Financial Services	$	24,480	$	—	$	—		$	—	$	—	$	—	$	—		$	—	$	—	$	24,480
Pharmaceuticals		22,375		—		—			—		—		—		—			—		—		22,375
Foreign Issuer Bonds
Media		14,319		—		(3,465	)		2,019		—		—		(12,873	)		—		—		—
Total	$	61,174	$	—	$	(3,465	)	$	2,019	$	—	$	—	$	(12,873	)	$	—	$	—	$	46,855

There was no change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at June 30, 2012.

FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT - INTERMEDIATE U.S. GOVERNMENT FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 37.3%(1)
Fannie Mae - 24.2%
Pool #555649,
7.50%, 10/1/32	$	91	$	111
Pool #745148,
5.00%, 1/1/36		4,849		5,273
Pool #893082,
2.74%, 9/1/36		1,019		1,095
Pool #AH1166,
4.50%, 12/1/40		3,242		3,518
Pool TBA,
4.00%, 8/15/39(2)		12,125		12,881
4.50%, 8/15/39(2)		9,375		10,049
5.00%, 8/15/39(2)		11,445		12,384
5.50%, 8/15/39(2)		11,925		13,002
6.00%, 8/15/39(2)		5,520		6,065
Series 2007, Class 26C,
5.50%, 3/25/33		2,325		2,389
				66,767
Freddie Mac - 6.9%
1.25%, 5/12/17		8,955		9,074
Pool #1J0365,
4.95%, 4/1/37		637		683
Pool #1J2840,
5.88%, 9/1/37		1,409		1,499
Pool #1Q0323,
4.01%, 5/1/37		3,068		3,279
Pool #410092,
2.33%, 11/1/24		11		11
Series 3730, Class PL,
4.50%, 1/15/33		4,394		4,535
				19,081
Government National Mortgage Association - 4.5%
Series 2008, Class 8A,
3.61%, 8/16/27		5		5
Series 2011, Class 31A,
2.21%, 12/16/35		4,854		4,952
Series 2011, Class 49A,
2.45%, 7/16/38		3,903		4,012
Series 2011, Class 49AB,
2.80%, 1/16/34		3,331		3,420
				12,389
Government National Mortgage Association II - 1.7%
Pool #82581,
4.00%, 7/20/40	$	4,371	$	4,654
Total U.S. Government Agencies (Cost $101,997)				102,891
U.S. GOVERNMENT OBLIGATIONS - 6 4.1%
U.S. Treasury Inflation Indexed Notes - 16.5%
2.00%, 1/15/14		11,965		15,466
1.63%, 1/15/15		13,010		16,656
0.13%, 4/15/17		12,400		13,257
				45,379
U.S. Treasury Notes - 47.6%
0.25%, 6/30/14		28,235		28,200
0.38%, 6/15/15		46,970		46,930
0.75%, 6/30/17		51,635		51,687
1.75%, 5/15/22		4,405		4,441
				131,258
Total U.S. Government Obligations (Cost $176,948)				176,637

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 42.5%
Northern Institutional Funds - U.S. Government Portfolio(3) (4)		117,263,254	$	117,263
Total Investment Companies (Cost $117,263)				117,263
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.4%
U.S. Treasury Bill,
0.14%, 12/20/12	$	1,000	$	1,000
Total Short-Term Investments (Cost $999)				1,000
Total Investments - 144.3% (Cost $397,207)				397,791
Liabilities less Other Assets - (44.3)%				(122,156	)
NET ASSETS - 100.0%			$	275,635

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE 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. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed.

(2) When-Issued Security.

(3) At March 31, 2012, the value of the Fund’s investments in the U.S. Government Portfolio of the Northern Institutional Funds was approximately $155,553,000 with net sales of approximately $38,290,000 during the three months ended June 30, 2012.

(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of total nets assets.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, 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 or the prerefunded date for these types of securities.

Percentages shown are based on Net Assets.

At June 30, 2012, the quality distribution for the Short-Intermediate U.S. Government Fund was:

QUALITY DISTRIBUTION*	% OF LONG-TERM INVESTMENTS
U.S. Treasury		47.8	%
U.S. Agency		22.7
Cash Equivalents		29.5
Total		100	%

* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). Committed Cash includes any traded cash (forward settling trades), the sweep vehicle and commercial paper. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	397,233
Gross tax appreciation of investments	$	1,055
Gross tax depreciation of investments		(498	)
Net tax appreciation of investments	$	557

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Short-Intermediate U.S. Government Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
U.S. Government Agencies	$	—	$	102,891	(1)	$	—	$	102,891
U.S. Government Obligations		—		176,637	(1)		—		176,637
Investment Companies		117,263		—			—		117,263
Short-Term Investments		—		1,000			—		1,000
Total Investments	$	117,263	$	280,528		$	—	$	397,791

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.9%
Agriculture - 0.2%
Bunge Ltd. Finance Corp.,
5.35%, 4/15/14	$	2,000	$	2,110
Auto Manufacturers - 1.4%
Daimler Finance N.A. LLC,
1.07%, 3/28/14(1)		6,000		5,986
1.25%, 4/10/14(1) (2)		10,000		10,005
2.30%, 1/9/15(1) (2)		3,000		3,061
				19,052
Auto Parts & Equipment - 0.2%
Johnson Controls, Inc.,
4.88%, 9/15/13		2,670		2,790
Banks - 6.5%
Bank of America Corp.,
1.89%, 1/30/14		6,100		6,036
2.02%, 7/11/14		5,000		4,921
Bank of New York Mellon (The) Corp.,
4.30%, 5/15/14		9,000		9,595
Capital One Financial Corp.,
2.13%, 7/15/14		2,000		2,017
2.15%, 3/23/15		4,100		4,132
Citigroup, Inc.,
5.30%, 10/17/12		1,900		1,924
2.47%, 8/13/13		5,500		5,538
5.50%, 10/15/14		5,000		5,294
Goldman Sachs Group (The), Inc.,
5.25%, 10/15/13		1,000		1,040
6.00%, 5/1/14		5,000		5,284
HSBC USA, Inc.,
2.38%, 2/13/15		2,000		2,023
JPMorgan Chase & Co.,
1.65%, 9/30/13		3,500		3,522
1.27%, 1/24/14		4,200		4,211
Morgan Stanley,
1.45%, 4/29/13		7,500		7,396
2.07%, 1/24/14		2,300		2,236
State Street Corp.,
0.82%, 3/7/14		4,150		4,165
Wachovia Corp.,
5.50%, 5/1/13		5,000		5,195
Wells Fargo & Co.,
1.25%, 2/13/15		6,000		5,992
1.38%, 6/26/15		10,500		10,516
				91,037
Beverages - 0.2%
SABMiller Holdings, Inc.,
1.85%, 1/15/15(1) (2)		2,000		2,029
Chemicals - 0.4%
Airgas, Inc.,
2.85%, 10/1/13		6,000		6,129
Commercial Services - 0.3%
ERAC USA Finance LLC,
5.80%, 10/15/12(1)		2,509		2,540
2.75%, 7/1/13(1)		2,000		2,026
				4,566
Computers - 0.4%
Hewlett-Packard Co.,
2.02%, 9/19/14		5,000		5,056
2.63%, 12/9/14		1,000		1,024
				6,080
Cosmetics/Personal Care - 0.2%
Avon Products, Inc.,
4.80%, 3/1/13		3,020		3,059
Diversified Financial Services - 3.2%
American Express Credit Corp.,
5.88%, 5/2/13		2,068		2,154
1.32%, 6/24/14		4,495		4,523
1.57%, 6/12/15		8,000		8,081
General Electric Capital Corp.,
1.10%, 4/7/14		5,000		4,996
1.17%, 4/24/14		10,300		10,300
2.15%, 1/9/15		10,000		10,168
TD Ameritrade Holding Corp.,
2.95%, 12/1/12		4,000		4,031
				44,253
Electric - 0.6%
Commonwealth Edison Co.,
1.63%, 1/15/14		2,000		2,027
NextEra Energy Capital Holdings, Inc.,
2.55%, 11/15/13		3,000		3,044
1.61%, 6/1/14		3,000		3,008
				8,079
Food - 0.3%
Kellogg Co.,
1.13%, 5/15/15		2,000		2,010

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.9% continued
Food - 0.3% continued
Kraft Foods Group, Inc.,
1.63%, 6/4/15(1) (2)	$	2,000	$	2,021
				4,031
Healthcare - Services - 0.1%
Quest Diagnostics, Inc.,
1.32%, 3/24/14		1,000		1,008
Insurance - 1.0%
American International Group, Inc.,
3.00%, 3/20/15		9,000		9,046
MetLife, Inc.,
1.72%, 8/6/13		3,100		3,130
Prudential Financial, Inc.,
5.15%, 1/15/13		1,000		1,023
				13,199
Media - 0.4%
Time Warner Cable, Inc.,
6.20%, 7/1/13		5,000		5,254
Office/Business Equipment - 0.5%
Pitney Bowes, Inc.,
3.88%, 6/15/13		2,500		2,557
Xerox Corp.,
1.87%, 9/13/13		1,600		1,611
1.29%, 5/16/14		2,500		2,497
				6,665
Real Estate - 0.2%
Sidal Realty Co. L.P. LLLP,
0.40%, 6/1/42		3,000		3,000
Retail - 0.7%
Nordstrom, Inc.,
6.75%, 6/1/14		9,000		9,979
Semiconductors - 0.1%
Broadcom Corp.,
1.50%, 11/1/13		2,000		2,025
Telecommunications - 0.2%
AT&T, Inc.,
0.88%, 2/13/15		3,000		2,998
Toys, Games & Hobbies - 0.4%
Mattel, Inc.,
5.63%, 3/15/13		5,000		5,166
Transportation - 0.3%
CSX Corp.,
6.25%, 4/1/15		4,000		4,557
Trucking & Leasing - 0.1%
GATX Corp.,
4.75%, 10/1/12		1,660		1,674
Total Corporate Bonds (Cost $247,516)				248,740
FOREIGN ISSUER BONDS - 8.7%
Agriculture - 0.2%
BAT International Finance PLC,
1.40%, 6/5/15(1) (2)		3,000		3,000
Banks - 6.4%
Bank of Nova Scotia,
1.85%, 1/12/15		9,000		9,144
Barclays Bank PLC,
1.51%, 1/13/14		1,500		1,502
Commonwealth Bank of Australia,
1.22%, 6/14/13		5,000		5,027
1.95%, 3/16/15		3,000		3,019
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A.,
0.82%, 4/14/14		2,500		2,476
4.20%, 5/13/14(1) (2)		7,750		8,097
Credit Suisse,
5.00%, 5/15/13		5,000		5,156
1.43%, 1/14/14		6,500		6,507
National Australia Bank Ltd.,
1.19%, 4/11/14(1)		12,850		12,856
Nordea Bank Finland PLC,
1.34%, 4/9/14		7,550		7,560
Oversea-Chinese Banking Corp. Ltd.,
1.63%, 3/13/15(1) (2)		4,000		4,012
Royal Bank of Canada,
1.15%, 3/13/15		10,000		10,023
UBS A.G.,
1.47%, 1/28/14		5,000		4,973
Westpac Banking Corp.,
2.10%, 8/2/13		3,000		3,044
1.19%, 3/31/14(1)		5,000		5,002
				88,398

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 8.7% continued
Beverages - 0.2%
SABMiller PLC,
5.50%, 8/15/13(1) (2)	$	3,000	$	3,139
Healthcare - Products - 0.2%
Covidien International Finance S.A.,
1.35%, 5/29/15		2,700		2,703
Mining - 0.9%
Rio Tinto Finance USA Ltd.,
5.88%, 7/15/13		4,000		4,203
Rio Tinto Finance USA PLC,
1.13%, 3/20/15		5,500		5,512
Xstrata Finance Canada Ltd.,
2.85%, 11/10/14(1) (2)		3,000		3,057
				12,772
Oil & Gas - 0.1%
Petrobras International Finance Co.,
2.88%, 2/6/15		2,000		2,030
Telecommunications - 0.7%
Telefonica Emisiones S.A.U.,
5.86%, 2/4/13		9,880		9,904
Total Foreign Issuer Bonds (Cost $121,624)				121,946
MUNICIPAL BONDS - 69.6%
Alabama - 0.2%
Alabama State Public School & College Authority Improvement Revenue Refunding Bonds, Series A,
5.00%, 5/1/13		1,000		1,039
Alabama State Water Pollution Control Authority Revenue Refunding Bonds, Series B, Revolving Fund Loan,
2.00%, 8/15/13		1,010		1,024
				2,063
Alaska - 0.3%
Alaska State Housing Finance Corp. Mortgage Revenue Bonds, Series B-1 (G.O. of Corp. Insured),
0.80%, 12/1/13		2,235		2,238
Valdez Marine Terminal Revenue Refunding Bonds, Series B, BP Pipelines Project,
5.00%, 1/1/14		2,000		2,128
				4,366
Arizona - 0.4%
Arizona State University Energy Management LLC Revenue Refunding Bonds, Arizona University Project-Tempe,
5.00%, 7/1/14		1,500		1,620
Coconino County Pollution Control Corp. Variable Revenue Bonds, Series A, Arizona Public Service Navajo Project (AMT),
3.63%, Mandatory Put 7/13/13		2,000		2,039
Phoenix G.O. Limited Refunding Bonds, Series C,
2.00%, 7/1/12		1,000		1,000
Salt River Project Agricultural Improvement & Power District Electric Revenue Refunding Bonds, Series A,
3.00%, 12/1/13		1,000		1,039
				5,698
California - 7.0%
Burbank Redevelopment Agency Tax Allocation Golden Bonds (FGIC Insured), Prerefunded,
5.63%, 12/1/28		1,000		1,071
California Infrastructure & Economic Development Bank Variable Revenue Refunding Bonds, Series A1, J Paul Getty Trust,
0.65%, Mandatory Put 4/1/14		10,000		10,000
California Infrastructure & Economic Development Bank Variable Revenue Refunding Bonds, Series B2, J Paul Getty Trust,
0.45%, Mandatory Put 4/1/15		10,000		10,001
California State Department of Water Resources Supply Revenue Bonds, Series L,
5.00%, 5/1/14		1,000		1,085
California State Department of Water Resources Supply Revenue Bonds, Series N,
5.00%, 5/1/13		5,000		5,201
California State Economic Recovery G.O. Unlimited Bonds, Series A,
5.25%, 7/1/13		10,000		10,484
California State Floating G.O. Unlimited Refunding Bonds, Series A,
0.83%, Mandatory Put 5/1/15		2,500		2,502
California State G.O. Unlimited Refunding Bonds,
3.00%, 9/1/13		5,000		5,150

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
California - 7.0% continued
5.00%, 2/1/15	$	5,000	$	5,528
California State Pollution Control Finance Authority Solid Waste Disposal Variable Revenue Refunding Bonds, Series B, Republic Services,
0.45%, Mandatory Put 8/1/12(1) (2)		2,555		2,555
California State Public Works Board Lease Revenue Bonds, Series A, Various Capital Projects,
3.00%, 10/1/13		2,180		2,245
California Statewide Communities Development Authority Revenue Bonds, Prop 1A Receivables Program,
5.00%, 6/15/13		6,730		7,031
California Statewide Communities Development Authority Solid Waste Disposal Revenue Bonds, Series A, Republic Services (AMT),
4.95%, 12/1/12		2,000		2,037
Contra Costa Water District Revenue Bonds, Series A,
1.00%, 10/1/12		3,000		3,006
Kern High School District Taxable G.O. Unlimited Refunding Bonds,
1.48%, 8/1/13		1,000		1,002
Los Angeles Department of Water & Power System Revenue Bonds, Series A,
4.00%, 7/1/13		7,000		7,264
Los Angeles G.O. Unlimited Refunding Bonds, Series B,
3.00%, 9/1/13		1,700		1,754
Los Angeles Unified School District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded,
5.00%, 1/1/28		5,000		5,239
Los Angeles Unified School District G.O. Unlimited Bonds, Series H, Election 2004 (AGM Insured),
4.50%, 7/1/12		3,500		3,501
Los Angeles Unified School District G.O. Unlimited Bonds, Series I,
5.00%, 7/1/14		3,000		3,269
Los Angeles Unified School District of G.O. Unlimited Refunding Bonds, Series A,
4.00%, 7/1/14		550		588
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series A-2,
0.30%, Mandatory Put 6/1/13		3,200		3,204
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series B,
3.00%, 7/1/13		1,000		1,028
Port of Oakland Revenue Refunding Bonds, Series O (AMT),
4.00%, 5/1/13		1,000		1,026
Southern California State Public Power Authority Revenue Bonds, Subseries A, Southern Transmission Project,
4.00%, 7/1/13		1,000		1,037
				96,808
Colorado - 1.4%
Colorado Springs Utilities System Revenue Bonds, Series A-1,
3.00%, 11/15/12		1,200		1,213
Colorado Springs Utilities System Revenue Refunding Bonds, Series A,
3.00%, 11/15/13		6,000		6,221
Denver City & County Airport Revenue Bonds, Series B (AMT),
4.00%, 11/15/13		5,165		5,411
Denver City & County G.O. Unlimited Bonds, Series D, Better Denver,
5.00%, 8/1/13		1,000		1,052
Longmont Sales & Use Tax Revenue Refunding Bonds, Series A, Open Space,
2.00%, 11/15/13		1,070		1,087
Platte River Power Authority Revenue Bonds, Series II,
4.00%, 6/1/14		4,000		4,275
Regional Transportation District Sales Tax Revenue Refunding Bonds,
5.00%, 11/1/12		800		813
				20,072
Connecticut - 2.4%
Bristol G.O. Unlimited Bonds,
4.00%, 8/1/13		2,000		2,081
Connecticut State Development Authority PCR Bonds, Series A, Connecticut Light & Power Project (AMT),
1.55%, Mandatory Put 4/1/15		4,000		4,010
Connecticut State Development Authority Variable PCR Refunding Bonds, Series B, Connecticut Light & Power Commission,
1.25%, Mandatory Put 9/3/13		3,500		3,516

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
Connecticut - 2.4% continued
Connecticut State Economic Recovery G.O. Unlimited Bonds, Series D,
5.00%, 1/1/13	$	1,800	$	1,844
Connecticut State G.O. Unlimited Bonds, Series A, Sifma Index,
0.45%, 5/15/14		4,000		4,000
Connecticut State G.O. Unlimited Bonds, Series C (NATL-RE FGIC Insured),
5.00%, 4/1/14		925		999
Connecticut State G.O. Unlimited Bonds, Series D,
5.00%, 11/1/13		10,100		10,734
Connecticut State G.O. Unlimited Refunding Bonds, Series E,
5.50%, 11/15/12		950		969
Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series A-4, Yale University,
5.00%, Mandatory Put 2/12/15		2,000		2,228
Connecticut State Special Tax Obligation Transportation Revenue Refunding Bonds, Series B,
5.00%, 12/1/14		2,760		3,061
				33,442
Delaware - 0.3%
Delaware State Municipal Electric Corp. Revenue Bonds,
3.00%, 7/1/13		1,135		1,160
University of Delaware Variable Revenue Bonds, Series A,
0.85%, Mandatory Put 6/4/13		3,600		3,621
				4,781
District of Columbia - 0.9%
District of Columbia Income Tax Secured Adjustable Revenue Refunding Bonds, Series E,
0.50%, 12/1/13		4,000		4,000
District of Columbia Income Tax Secured Revenue Bonds, Series D,
5.00%, 12/1/12		1,230		1,255
District of Columbia Income Tax Secured Revenue Refunding Bonds, Secured Series B,
0.45%, 12/1/13		1,960		1,960
Metropolitan Washington D.C. Airports Authority System Revenue Bonds, Series C (AMT),
3.00%, 10/1/13		1,500		1,538
Metropolitan Washington D.C. Airports Authority System Revenue Refunding Bonds, Series A (AMT) (AMBAC Insured),
5.00%, 10/1/14		3,500		3,833
				12,586
Florida - 5.7%
Citizens Property Insurance Corp. Adjustable Personal & Commercial Lines Revenue Bonds, Series S,
1.40%, 6/1/15		20,000		20,006
Citizens Property Insurance Corp. High Risk Revenue Bonds, Senior Secured Series A-1,
5.00%, 6/1/13		1,200		1,250
Citizens Property Insurance Corp. Revenue Bonds, Series A-3, Floating Senior Secured Coastal Notes (AGM Insured),
1.80%, 6/1/14		5,000		5,049
Citizens Property Insurance Corp. Variable Revenue Bonds, Series A-3, High Risk Floating Notes,
1.90%, 6/1/13		5,400		5,454
Florida State Board of Education G.O. Unlimited Refunding Bonds, Series B (State Gtd.),
5.00%, 1/1/15		2,000		2,224
Florida State Board of Education Lottery Revenue Bonds, Series A,
5.00%, 7/1/12		1,470		1,470
Florida State Board of Education Lottery Revenue Refunding Bonds, Series A,
5.00%, 7/1/14		7,000		7,639
Florida State Board of Governors University of Central Parking Facility Revenue Refunding Bonds, Series A,
5.00%, 7/1/13		1,175		1,226
5.00%, 7/1/14		1,235		1,336
Florida State Board of Public Education G.O. Unlimited Bonds, Series C Capital Outlay (AMBAC State Gtd.),
3.75%, 6/1/13		1,000		1,032
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series A, Capital Outlay,
5.00%, 6/1/14		5,000		5,442
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series C (State Gtd.),
5.00%, 6/1/14		4,000		4,353

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
Florida - 5.7% continued
Florida State Department of Environmental Protection Preservation Revenue Refunding Bonds, Series A, Florida Forever,
4.00%, 7/1/13	$	6,400	$	6,630
5.00%, 7/1/14		3,000		3,262
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A,
5.00%, 7/1/13		1,250		1,307
Florida State Water Pollution Control Financing Corp. Revenue Bonds, Series A,
5.00%, 7/15/13		2,000		2,099
Jacksonville Sales Tax Revenue Refunding Bonds, Local Government (NATL-RE FGIC Insured),
5.50%, 10/1/12		1,000		1,013
Jacksonville Special Revenue Bonds, Series C-1,
4.00%, 10/1/12		750		757
Lakeland Energy System Variable Revenue Refunding Bonds,
0.90%, 10/1/12		5,200		5,202
Miami-Dade County Transit Sales Surtax Revenue Bonds, Series A,
3.00%, 7/1/13		1,000		1,022
Miami-Dade County Water & Sewer System Revenue Bonds,
2.00%, 10/1/12		935		939
				78,712
Georgia - 2.1%
Albany Sales Tax G.O. Unlimited Bonds,
2.00%, 6/1/15		1,300		1,353
Bartow County Sales Tax G.O. Unlimited Bonds (NATL-RE Insured),
5.00%, 8/1/12		2,000		2,009
Burke County Development Authority PCR Bonds, Fourth Series, Georgia Power Co. Plant Vogtle Project,
1.20%, Mandatory Put 4/1/14		2,000		2,016
Georgia State G.O. Unlimited Refunding Bonds, Series E-1,
5.00%, 7/1/13		5,755		6,032
Georgia State Road & Tollway Authority Revenue Refunding Bonds, Series A (State Gtd.),
4.00%, 3/1/13		1,700		1,743
Glynn County Schools Sales Tax G.O. Unlimited Bonds (State Aid Withholding),
4.00%, 9/1/12		3,400		3,422
Gwinnett County School District G.O. Unlimited Bonds,
5.00%, 2/1/13		2,300		2,365
Gwinnett County School District Sales Tax G.O. Unlimited Bonds, Series A,
4.00%, 10/1/14		6,500		7,020
Henry County School District G.O. Unlimited Bonds (State Aid Withholding),
2.00%, 12/1/14		1,000		1,037
Municipal Electric Authority of Georgia Revenue Bonds, Series A, Combined Cycle Project,
4.00%, 11/1/14		1,000		1,077
Savannah EDA Variable Revenue Bonds, Calvary Day School Project (Sun Trust Bank LOC),
0.45%, 11/1/26		1,000		1,000
				29,074
Hawaii - 1.1%
Hawaii County Improvement G.O. Unlimited Refunding Bonds, Series A (NATL-RE FGIC Insured),
5.60%, 5/1/13		1,000		1,044
Hawaii State Airports System Revenue Refunding Bonds (AMT),
4.00%, 7/1/13		750		778
5.00%, 7/1/14		1,335		1,445
Hawaii State G.O. Unlimited Bonds, Series CZ (AGM Insured), Prerefunded,
5.25%, 7/1/18		1,580		1,581
Hawaii State G.O. Unlimited Refunding Bonds, Series EC,
5.00%, 12/1/13		3,000		3,200
Hawaii State Highway Revenue Bonds, Series B (AGM Insured),
5.00%, 7/1/12		500		500
Hawaii State Housing Finance & Development Corp. Multi Family Revenue Bonds, Series B, Kuhio Park Terrace (Freddie Mac Insured),
1.25%, 10/1/13		6,000		6,029

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
Hawaii - 1.1% continued
Honolulu City & County G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded,
5.25%, 3/1/16	$	810	$	837
				15,414
Idaho - 0.8%
Idaho Housing & Finance Association Unemployment Compensation Revenue Bonds,
4.00%, 8/15/14		10,000		10,732
Illinois - 2.7%
Illinois State Educational Facilities Authority Adjustable Revenue Bonds, Series B-1, University of Chicago,
1.13%, Mandatory Put 2/14/13		1,450		1,456
Illinois State Finance Authority Adjustable Revenue Bonds, Subseries A, Northwestern University,
0.37%, Mandatory Put 3/3/14		2,600		2,598
Illinois State Finance Authority Adjustable Revenue Bonds, Subseries B, Northwestern University,
1.75%, Mandatory Put 3/3/14		7,935		8,117
Illinois State Finance Authority Adjustable Revenue Bonds, Subseries C, Northwestern University,
0.37%, Mandatory Put 3/3/14		3,800		3,798
Illinois State Finance Authority Revenue Bonds, Series A-2, Advocate Health Care,
1.40%, Mandatory Put 2/1/13		8,000		8,053
Illinois State Toll Highway Authority Revenue Refunding Bonds, Senior Series A-2 (AGM Insured),
0.33%, 1/1/31		11,000		11,000
Lake County Forest Preservation District G.O. Unlimited Refunding Bonds, Series A,
4.00%, 12/15/13		2,000		2,105
				37,127
Indiana - 1.1%
Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien, CWA Authority,
2.00%, 10/1/12		1,000		1,004
Indiana State Finance Authority Revenue Bonds, Series A, State Revolving Fund Program,
4.00%, 2/1/13		1,000		1,022
Indiana State Health Facility Financing Authority Revenue Bonds, Series A1, Ascension Health Care Group,
1.50%, Mandatory Put 8/1/14		5,000		5,092
Indiana State Health Facility Financing Authority Revenue Bonds, Series A6, Ascension Health Sub Credit Group,
5.00%, Mandatory Put 6/1/14		5,600		6,068
Indianapolis Thermal Energy System Revenue Refunding Bonds,
3.00%, 10/1/12		2,500		2,516
				15,702
Iowa - 0.7%
Ankeny G.O. Unlimited Bond Anticipation Project Notes, Series C,
1.00%, 6/1/14		7,450		7,481
State University of Iowa Revenue Bonds, Academic Building Flood Anticipation Notes,
3.00%, 1/1/13		2,000		2,003
				9,484
Kansas - 0.1%
Kansas State Development Finance Authority Revenue Bonds, Series B, Kansas Projects,
3.00%, 5/1/13		1,930		1,970
Kentucky - 0.8%
Kentucky State Economic Development Finance Authority Solid Waste Disposal Revenue Refunding Bonds, Series B, Republic Services, Inc. Project,
0.45%, Mandatory Put 9/4/12		7,500		7,500
Pikeville Hospital Revenue Bonds, Improvement BANS,
3.00%, 9/1/13		4,000		4,089
				11,589
Louisiana - 0.8%
Louisiana State G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured),
5.00%, 8/1/13		2,100		2,208
Louisiana State Gas & Fuels TRB, Series B, Second Lien,
5.00%, 5/1/13		1,275		1,326
Louisiana State Offshore Terminal Authority Deepwater Port Revenue Bonds, Series B-1A, Loop LLC Project,
1.60%, Mandatory Put 10/1/12		2,000		2,003

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
Louisiana - 0.8% continued
Louisiana State Offshore Terminal Authority Deepwater Port Variable Revenue Bonds, Series B-1, Loop LLC Project,
1.88%, Mandatory Put 10/1/13	$	3,000	$	3,026
Louisiana State Public Facilities Authority Revenue Bonds, Series A, Ochsner Clinic Foundation Project (NATL-RE Insured), Escrowed to Maturity,
5.38%, 5/15/13		2,500		2,611
				11,174
Maine - 0.1%
South Portland G.O. Unlimited Bonds,
4.00%, 7/15/14		1,500		1,607
Maryland - 0.9%
Harford County Consolidated Public Improvement G.O. Unlimited Bonds, Series A,
5.00%, 7/1/12		3,000		3,001
Prince Georges County Consolidated Public Improvement G.O. Limited Bonds, Series A,
5.00%, 9/15/14		2,935		3,235
Prince Georges County Consolidated Public Improvement G.O. Limited Refunding Bonds, Series B,
5.00%, 9/15/14		2,800		3,086
University System of Maryland Auxilary Facility & Tuition Revenue Refunding Bonds, Series A,
3.00%, 4/1/14		3,400		3,561
				12,883
Massachusetts - 1.5%
Cambridge Muni Purpose Loan G.O. Limited Bonds,
2.00%, 2/15/15		3,175		3,302
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series D,
4.00%, 10/1/13		4,000		4,189
Massachusetts State Department of Transportation Metropolitan Highway System Revenue Bonds, Senior Series B,
5.00%, 1/1/13		3,000		3,069
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series B, Caritas Christi Obligation, Prerefunded,
6.75%, 7/1/16		2,000		2,021
Massachusetts State Transportation Fund Revenue Bonds, Series A, Accelerated Bridge Program,
5.00%, 6/1/14		7,000		7,624
Springfield State Qualified Muni Purpose Loan G.O. Limited Bonds (AGM Insured) (State Aid Withholding),
5.75%, 8/1/14		1,025		1,135
				21,340
Michigan - 1.1%
Lowell Limited Obligation Industrial Variable Revenue Bonds, Litehouse, Inc. Project (Fifth Third Bank LOC) (AMT),
0.55%, 8/1/33		1,180		1,180
Michigan State Finance Authority Unemployment Obligation Assessment Revenue Bonds, Series A,
5.00%, 7/1/14		10,000		10,912
Michigan State Hospital Finance Authority Variable Revenue Bonds, Ascension Health Care Group,
0.90%, Mandatory Put 3/16/15		3,590		3,591
				15,683
Minnesota - 1.0%
Hennepin County Senior Sales Tax G.O. Unlimited Bonds, Series E,
4.00%, 12/15/13		3,045		3,210
Minnesota State G.O. Unlimited Bonds, Series A,
5.00%, 10/1/13		5,350		5,668
Minnesota State Trunk Highway G.O. Unlimited Refunding Bonds, Series I,
5.00%, 11/1/12		1,385		1,408
Ramsey County Capital Improvement G.O. Unlimited Refunding Bonds, Series B,
4.00%, 2/1/14		3,000		3,175
				13,461
Mississippi - 0.3%
Mississippi State Business Finance Corp. Variable Revenue Bonds, Waste Management, Inc. Project,
2.25%, Mandatory Put 11/3/14		4,600		4,717
Municipal States Pooled Securities - 0.5%
BB&T Municipal Trust Sifma Floater Certificates, Series B (Rabobank Nederland LOC),
1.02%, 8/1/14(1) (2)		7,000		6,998

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
Nebraska - 0.2%
Nebraska State Public Power District General Revenue Bonds, Series B-1 (NATL-RE FGIC Insured),
5.00%, 1/1/14	$	2,500	$	2,673
Nevada - 0.8%
Clark County Highway Improvement Motor Vehicle Fuel Tax Revenue Refunding Bonds,
5.00%, 7/1/14		3,000		3,264
Clark County School District Building Tax G.O. Limited Bonds, Series A,
5.00%, 6/15/13		1,000		1,045
Clark County School District Tax G.O. Limited Refunding Bonds, Series A,
5.00%, 6/15/13		6,000		6,268
				10,577
New Hampshire - 0.2%
New Hampshire Business Finance Authority Solid Waste Disposal Variable Revenue Bonds, Waste Management, Inc. Project (AMT),
3.50%, Mandatory Put 6/3/13		1,450		1,486
New Hampshire State G.O. Unlimited Refunding Bonds, Series B,
4.00%, 6/1/14		1,500		1,604
				3,090
New Jersey - 5.1%
Monmouth County Improvement Authority Revenue Refunding Bonds, Government Pooled Loan (County Gtd.),
4.00%, 12/1/14		1,000		1,085
New Jersey Environmental Infrastructure Trust Revenue Bonds,
3.00%, 9/1/14		1,000		1,057
New Jersey State Building Authority Revenue Refunding Bonds, Series A,
3.50%, 6/15/13		10,970		11,286
New Jersey State Economic Development Authority Cigarette Tax Revenue Bonds, Prerefunded,
5.75%, 6/15/14		17,500		19,341
New Jersey State EDA Disposal of Solid Waste Facilities Revenue Bonds, Series A, Waste Management, Inc. Project (AMT),
5.30%, Mandatory Put 6/1/14		3,500		3,773
New Jersey State EDA Revenue Bonds, Build America Bonds,
1.47%, 6/15/13		5,000		5,019
New Jersey State Educational Facilities Authority Revenue Bonds, Series B, Princeton University,
3.00%, 7/1/13		3,000		3,087
5.00%, 7/1/14		4,000		4,379
New Jersey State G.O. Unlimited Refunding Bonds,
5.00%, 8/1/13		4,880		5,134
New Jersey State Health Care Facilities Financing Authority Revenue Bonds, South Jersey Hospital, Prerefunded,
5.88%, 7/1/21		2,750		2,751
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series B (NATL-RE FGIC Insured),
5.25%, 12/15/12		1,755		1,795
New Jersey State Turnpike Authority Revenue Bonds, Series C (NATL-RE Insured), Escrowed To Maturity,
6.50%, 1/1/13		1,000		1,032
New Jersey State Turnpike Authority Variable Revenue Bonds, Series B,
0.90%, Mandatory Put 12/22/14(1) (2)		7,000		7,016
New Jersey Transportation Trust Fund Authority Revenue Bonds, Series B,
5.00%, 6/15/14		2,000		2,166
Ocean County G.O. Unlimited Refunding Bonds,
3.00%, 8/1/13		1,000		1,029
Tobacco Settlement Financing Corp. Revenue Bonds, Prerefunded,
6.75%, 6/1/39		1,000		1,059
				71,009
New Mexico - 0.1%
Albuquerque Municipal School District No. 12 G.O. Unlimited Bonds, Series A, School Building (State Aid Withholding),
2.00%, 8/1/12		1,000		1,002
New York - 6.9%
Erie County IDA School Facility Revenue Bonds, City School District Buffalo Project (AGM Insured State Aid Withholding), Escrowed to Maturity,
5.00%, 5/1/14		1,185		1,284

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
New York - 6.9% continued
Metropolitan Transportation Authority Dedicated Tax Fund Floating Revenue Refunding Bonds, Subseries B-3B,
0.70%, Mandatory Put 11/1/13	$	4,000	$	4,000
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Subseries B-2,
3.00%, 11/1/14		2,000		2,117
Metropolitan Transportation Authority Revenue Bonds, Series A1, Floating Rate Tender Notes,
0.29%, Mandatory Put 5/15/13		2,900		2,900
Metropolitan Transportation Authority Revenue Bonds, Series B-1,
5.00%, 11/15/14		3,210		3,523
New York City G.O. Unlimited Bonds, Series F2,
4.00%, 12/15/13		10,000		10,471
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Series C,
5.00%, 11/1/13		3,000		3,190
New York State G.O. Unlimited Bonds, Series A,
5.00%, 2/15/13		2,550		2,626
New York State G.O. Unlimited Bonds, Series E,
3.00%, 8/1/12		950		952
4.00%, 12/15/13		6,200		6,528
New York State Housing Finance Agency Affordable Housing Revenue Bonds, NIBP Series 4,
1.20%, 11/1/14		4,000		4,030
New York State Mortgage Agency Homeowner Revenue Bonds, Series 164,
1.00%, 4/1/14		2,000		2,012
New York State Thruway Authority Local Highway & Bridge Revenue Bonds, Series A,
4.00%, 4/1/14		2,500		2,654
New York State Urban Development Corp. Revenue Refunding Bonds, Series B,
5.00%, 1/1/13		2,000		2,047
Port Authority of New York & New Jersey Consolidated Revenue Bonds, Series 167 (AMT) (G.O. of Authority Insured),
5.00%, 9/15/14		4,000		4,365
Port Authority of New York & New Jersey Consolidated Revenue Bonds, Series 169 (AMT) (G.O. of Authority Insured),
5.00%, 10/15/14		10,000		10,944
Suffolk County Public Improvement G.O. Unlimited Bonds, Series A,
3.00%, 5/15/13		2,930		2,987
Suffolk County Water Authority Variable Revenue BANS, Series B,
0.55%, 4/1/14		11,000		10,991
Tobacco Settlement Financing Corp. Asset-Backed Revenue Bonds, Series B,
4.00%, 6/1/13		7,000		7,235
Triborough Bridge & Tunnel Authority General Revenue Bonds, Series A-1 (G.O. of Authority Insured),
4.00%, Mandatory Put 11/15/12		3,150		3,193
Triborough Bridge & Tunnel Authority General Revenue Bonds, Subseries B1 (G.O. of Authority Insured),
5.00%, Mandatory Put 11/15/13		7,715		8,165
				96,214
North Carolina - 2.1%
Charlotte COP, Series A,
5.00%, 12/1/14		3,000		3,314
Mecklenburg County Public Improvement G.O. Unlimited Bonds, Series A,
5.00%, 10/1/13		7,700		8,162
5.00%, 10/1/14		3,500		3,863
North Carolina State Capital Improvement Obligation Revenue Bonds, Series C,
5.00%, 5/1/14		5,000		5,424
North Carolina State Turnkpike Authority Monroe Connector System Appropriation Revenue Bonds,
3.00%, 7/1/13		1,000		1,027
North Carolina State University at Raleigh General Revenue Refunding Bonds,
3.00%, 10/1/14		1,500		1,583
Raleigh Durham Airport Authority Revenue Refunding Bonds, Series B,
3.00%, 11/1/12		3,075		3,103
Wake County Public Improvement Non Ace G.O. Limited Bonds,,
4.00%, 3/1/14		1,000		1,061

FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
North Carolina - 2.1% continued
Winston Salem Limited Obligation Revenue Bonds, Series A (County Gtd.),
4.00%, 3/1/15	$	1,500	$	1,638
				29,175
North Dakota - 0.1%
North Dakota State Water Finance Corp. Public Projects Construction Revenue Notes, Series A-5,
1.00%, 8/1/12		1,800		1,801
Ohio - 2.1%
Columbus City School District Facilities Construction & Improvement G.O. Unlimited Bonds (FGIC Insured), Prerefunded,
5.00%, 12/1/28		3,000		3,132
Columbus Various Purpose G.O. Unlimited Bonds, Series A,
5.00%, 9/1/12		1,000		1,008
Franklin County Hospital Facilities Revenue Refunding Bonds, Series C, Ohio Health Corp.,
0.60%, Mandatory Put 6/3/13		7,000		7,000
Miami University Revenue Bonds, Series B,
5.00%, 9/1/13		1,000		1,053
Ohio State Air Quality Development Authority Variable PCR Refunding Bonds, First Energy Projects,
2.25%, Mandatory Put 6/3/13		7,000		7,052
Ohio State Fresh Water Development Authority Revenue Bonds, Series A-1,
4.00%, 12/1/12		1,670		1,697
Ohio State Infrastructure Improvement G.O. Unlimited Bonds, Series F, Prerefunded,
5.00%, 2/1/15		2,000		2,057
Ohio State Infrastructure Improvement G.O. Unlimited Refunding Bonds, Series B,
5.00%, 8/1/14		2,500		2,737
Ohio State Water Quality Development Authority PCR Bonds, Loan Fund Project,
5.00%, 12/1/12		3,000		3,061
				28,797
Oklahoma - 0.6%
Oklahoma City G.O. Unlimited Refunding Bonds,
3.00%, 3/1/13		1,750		1,782
4.00%, 3/1/14		3,000		3,182
Oklahoma County Independent School Building District No. 12 Edmond G.O. Unlimited Bonds,
1.00%, 7/1/12		3,030		3,030
				7,994
Oregon - 0.7%
Metro G.O. Limited Refunding Bonds, Series B,
4.00%, 6/1/14		5,500		5,885
Portland G.O. Limted Tax Revenue Refunding Bonds, Series B, Police Training,
3.00%, 6/1/14		3,000		3,148
				9,033
Pennsylvania - 2.6%
Delaware County IDA PCR Refunding Bonds, Series A, Peco Energy Co. Project,
4.00%, 12/1/12		3,000		3,039
Mount Lebanon School District G.O. Unlimited Bonds (State Aid Withholding),
3.00%, 11/15/12		1,780		1,799
Pennsylvania State Economic Development Financing Authority Variable Revenue Bonds, Waste Management, Inc. Project (AMT),
2.63%, Mandatory Put 7/1/14		2,970		3,022
Pennsylvania State G.O. Unlimited Bonds, Second Series,
5.50%, 1/1/13		1,540		1,582
5.00%, 2/15/13		1,000		1,030
Pennsylvania State G.O. Unlimited Bonds, Third Series (AGM Insured),
5.00%, 9/1/14		10,000		11,002
Pennsylvania State G.O. Unlimited Refunding & Projects Bonds, First Series (NATL-RE Insured),
5.25%, 2/1/14		3,000		3,235
Pennsylvania State Turnpike Commission Registration Fee Variable Revenue Refunding Bonds, Series D (AGM Insured),
0.33%, 7/15/41		10,100		10,100

NORTHERN FUNDS QUARTERLY REPORT    11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
Pennsylvania - 2.6% continued
State Public School Building Authority Revenue Bonds, Lease-Philadelphia School District Project (AGM Insured State Aid Withholding), Prerefunded,
5.25%, 6/1/26	$	1,305	$	1,365
				36,174
Puerto Rico - 0.1%
Puerto Rico Highway & Transportation Authority Revenue Bonds, Series D Prerefunded,
5.38%, 7/1/36		2,000		2,001
Rhode Island - 0.2%
Rhode Island State Depositors Economic Protection Corp. Special Obligation Revenue Refunding Bonds, Series B (NATL-RE Insured), Escrowed to Maturity,
5.80%, 8/1/12		1,000		1,005
Rhode Island State Health & Educational Building Corp. Higher Education Facility Revenue Refunding Bonds, Series A, Brown University,
5.00%, 9/1/13		1,000		1,055
				2,060
South Carolina - 0.1%
South Carolina State Public Service Authority Revenue Refunding Bonds, Series B, Santee Cooper,
5.00%, 1/1/13		1,000		1,024
York County School District No. 3 G.O. Limited Bonds, Series A (SCSDE Insured),
4.00%, 3/1/13		1,000		1,025
				2,049
South Dakota - 0.2%
Huron School District No. 02-2 G.O. Unlimited Refunding Bonds (AGM Insured),
2.00%, 12/15/12		435		438
2.00%, 6/15/13		440		445
Sioux Falls Sales Tax Revenue Refunding Bonds, Series A,
3.00%, 11/15/12		2,000		2,020
				2,903
Tennessee - 1.2%
Knox County G.O. Unlimited Bonds,
4.00%, 4/1/14		5,500		5,848
Knoxville G.O. Unlimited Bonds,
2.00%, 5/1/14		2,000		2,061
4.00%, 5/1/15		3,245		3,562
Rutherford County G.O. Unlimited Bonds,
3.00%, 4/1/14		2,315		2,416
Tennessee State G.O. Unlimited Bonds, Series A,
5.00%, 10/1/13		2,000		2,120
				16,007
Texas - 5.0%
Austin Public Improvement G.O. Limited Bonds, Series A,
2.00%, 9/1/13		2,000		2,040
Dallas Waterworks & Sewer System Revenue Refunding Bonds, Prerefunded,
5.00%, 10/1/24		6,000		6,353
Gulf Coast Waste Disposal Authority Revenue Bonds, BP Products N.A. Project,
2.30%, Mandatory Put 9/3/13		3,625		3,696
Gulf Coast Waste Disposal Authority Revenue Refunding Bonds, BP Products N.A. Project,
2.30%, Mandatory Put 9/3/13		7,900		8,056
Harris County G.O. Limited Refunding Bonds, Series A,
4.00%, 10/1/14		4,500		4,866
Harris County G.O. Unlimited Road Refunding Bonds, Series A,
3.00%, 10/1/13		1,000		1,035
Harris County Metropolitan Transit Authority Sales & Use TRB, Series B, Contractual Obligations,
4.00%, 11/1/13		2,195		2,302
Harris County Taxable G.O. Limited Refunding Bonds, Series B, Sub Lien (AGM Insured),
5.00%, Mandatory Put 8/15/12		3,215		3,234
Harris County Toll Road G.O. Unlimited Refunding Bonds, Sub Lien (NATL-RE FGIC Insured),
6.00%, 8/1/12		2,000		2,010
Houston Hotel Occupancy Tax & Special Revenue Refunding Bonds, Series A,
5.00%, 9/1/13		1,500		1,578
Houston Independent School District Variable G.O. Limited Tax Refunding Bonds (PSF-Gtd.),
2.00%, Mandatory Put 6/1/14		5,000		5,124

FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
Texas - 5.0% continued
Houston Utility System Combined Revenue Refunding Bonds, Series E, First Lien,
5.00%, 11/15/13	$	2,000	$	2,129
Houston Utility System Sifma Index Revenue Refunding Bonds, Series A,
0.70%, Mandatory Put 6/1/15		2,000		2,004
Midlothian Independent School District G.O. Unlimited Bonds, Series B (PSF-Gtd.),
2.25%, Mandatory Put 8/1/14		3,300		3,403
San Antonio Electric & Gas System Revenue Bonds, Junior Lien,
1.15%, Mandatory Put 12/3/12		3,775		3,787
San Antonio G.O. Limited Tax Notes, Series A,
2.50%, 8/1/12		2,000		2,004
Temple G.O. Limited Refunding Bonds,
2.00%, 8/1/12		1,000		1,001
Texas City Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF-Gtd.),
4.00%, 8/15/12		1,000		1,005
Texas State G.O. Unlimited Refunding Bonds, Series B (AMT), College Student Loan,
5.00%, 8/1/13		1,000		1,051
Texas State PFA G.O. Unlimited Refunding Bonds,
5.00%, 10/1/12		1,000		1,012
Tyler Health Facilities Development Corp. Revenue Bonds, Mother Frances Hospital Regional Health, Prerefunded,
6.00%, 7/1/31		5,225		5,227
University of North Texas Financing System Revenue Bonds, Series A,
5.00%, 4/15/13		1,250		1,296
University of Texas Financing System Revenue Refunding Bonds, Series A,
4.00%, 8/15/14		4,500		4,841
				69,054
Utah - 0.4%
Intermountain Power Agency Power Supply Revenue Refunding Bonds, Subseries B,
4.00%, 7/1/12		1,000		1,000
Utah State G.O. Unlimited Bonds, Series A,
4.00%, 7/1/13		2,000		2,077
Utah State G.O. Unlimited Bonds, Series C,
3.00%, 7/1/12		1,000		1,000
Utah State G.O. Unlimited Refunding Bonds, Series A,
5.00%, 7/1/14		1,000		1,094
				5,171
Virginia - 3.2%
Alexandria IDA Headquarters Facilities TRB, Series A (Sun Trust Bank LOC),
0.90%, 10/1/23		6,650		6,650
Charles City & County IDA Solid Waste Disposal Facilities Adjustable Revenue Bonds (AMT), Waste Management, Inc. Project,
1.88%, Mandatory Put 4/1/15		750		756
Loudoun County Public Improvement G.O. Unlimited Bonds, Series A,
4.00%, 12/1/13		2,590		2,729
Louisa IDA PCR Bonds, Series C, Electric & Power Co. Project,
1.50%, Mandatory Put 12/1/14		2,000		2,012
Louisa IDA Solid Waste & Sewage Disposal Variable Revenue Bonds, Series A, Electric & Power Co. Project (AMT),
2.50%, Mandatory Put 3/1/13		2,825		2,855
Richmond Public Improvement G.O. Unlimited Refunding Bonds, Series C (State Aid Withholding),
2.00%, 7/15/12		1,200		1,201
Virginia Commonwealth Transportation Board Revenue Refunding Bonds, Contract Route 28 Project,
3.00%, 4/1/14		1,500		1,568
Virginia Public School Authority Revenue Bonds (State Intercept Gtd.),
5.00%, 4/15/15		8,035		9,024
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series A, University of Richmond Project,
3.00%, 3/1/13		1,545		1,574
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series B, Public Higher Educational Financing Program,
5.00%, 9/1/13		3,000		3,167

NORTHERN FUNDS QUARTERLY REPORT    13    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
Virginia - 3.2% continued
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects,
4.00%, 5/15/14	$	5,000	$	5,336
Virginia State Commonwealth Transportation Board Revenue Bonds, Federal Highway Reimbursement Notes,
5.00%, 9/27/12		1,330		1,345
Virginia State Commonwealth Transportation Board Revenue Bonds, Series A, Federal Grant Anticipatory Revenue Notes,
2.00%, 9/15/13		2,765		2,823
Virginia State Commonwealth Transportation Board Revenue Refunding Bonds,
2.50%, 5/15/13		1,600		1,632
Virginia State Housing Development Authority Home Ownership Mortgage Revenue Bonds, Series B (G.O. of Authority Insured),
0.95%, 9/1/12		1,500		1,502
				44,174
Washington - 1.8%
Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project 1 (NATL-RE Insured),
5.25%, 7/1/13		3,000		3,151
Grant County Public Utility District No. 2 Electric Revenue Refunding Bonds, Series I,
5.00%, 1/1/14		1,500		1,602
Port of Seattle Intermediate Revenue Refunding Bonds, Series B (AMT),
3.00%, 8/1/14		1,000		1,044
Seattle G.O. Unlimited Refunding Bonds,
3.00%, 12/1/13		1,000		1,039
Snohomish County G.O. Limited Refunding Bonds, Series A,
5.00%, 12/1/13		2,000		2,132
Snohomish County School District No. 6 Mukilteo G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured),
5.70%, 12/1/12		4,140		4,233
University of Washington General Revenue Refunding Bonds, Series A,
4.00%, 10/1/13		1,000		1,048
Washington State G.O. Unlimited Refunding Bonds, Series R-2012A,
4.00%, 7/1/13		7,695		7,986
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Bonds, Series B-2,
4.00%, 8/1/13		3,200		3,331
				25,566
West Virginia - 0.2%
West Virginia State Housing Finance Development Fund Revenue Bonds, Series A (AMT) (G.O. of Corp. Insured),
1.60%, 11/1/12		1,825		1,829
West Virginia State University Projects Revenue Bonds, Series B,
4.00%, 10/1/13		1,000		1,044
				2,873
Wisconsin - 1.5%
Madison G.O. Unlimited Capital Improvement Refunding Promissory Notes, Series A,
3.00%, 10/1/12		1,000		1,007
Madison G.O. Unlimited Promissory Notes, Series A,
5.00%, 10/1/14		4,000		4,413
Madison G.O. Unlimited Promissory Notes, Series E,
4.00%, 10/1/13		2,150		2,251
Milwaukee G.O. Unlimited Promissory Notes, Series N1,
4.00%, 2/1/13		1,000		1,022
Milwaukee G.O. Unlimited Promissory Notes, Series N3,
5.00%, 5/15/13		2,000		2,084
Wisconsin State G.O. Unlimited Bonds, Series B,
5.00%, 5/1/13		4,000		4,161
Wisconsin State G.O. Unlimited Bonds, Series C, Prerefunded,
5.00%, 5/1/14		3,790		4,105
Wisconsin State Health & Educational Facilities Authority Revenue Bonds, Series A, Aurora Health Care,
2.50%, 7/15/13		325		331

FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 69.6% continued
Wisconsin - 1.5% continued
Wisconsin State Transportation Revenue Bonds, Series A,
5.00%, 7/1/12	$	1,600	$	1,601
				20,975
Total Municipal Bonds
(Cost $966,683)				967,855

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 0.1%
Northern Institutional Funds - Tax-Exempt Portfolio(3) (4)		1,017,385	$	1,017
Total Investment Companies
(Cost $1,017)				1,017

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT - TERM INVESTMENTS - 2.9%
California State School Cash Reserve Program Authority Revenue Notes, Series V,
2.00%, 1/31/13	$	8,000	$	8,065
Delaware State Municipal Electric Corp. Revenue Bonds,
2.00%, 7/1/12		1,625		1,625
Georgia State Municipal Gas Authority Revenue Refunding Bonds, Series O, Gas Portfolio lll Project (G.O. of Authority Insured),
2.00%, 11/13/12		3,000		3,020
Houston Airport System Revenue Refunding Bonds, Series A (AMT), Sub Lien,
3.00%, 7/1/12		10,000		10,001
Nassau County G.O. Limited RANS,
2.00%, 3/29/13		6,000		6,052
Nassau County G.O. Unlimited TANS, Series A,
2.50%, 9/30/12		4,000		4,017
New York State Thruway Authority Revenue BANS, Series A,
2.00%, 7/12/12		6,900		6,904
University of Hawaii Revenue Bonds, Series A,
2.00%, 10/1/12	$	1,000	$	1,005
Total Short-Term Investments
(Cost $40,683)				40,689
Total Investments - 99.2% (Cost $1,377,523)				1,380,247
Other Assets less Liabilities - 0.8%				10,617
NET ASSETS - 100.0%			$	1,390,864

(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 June 30, 2012, the value of the restricted illiquid security amounted to approximately $54,991,000 or 4.0% of net assets. Additional information on the restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000S)
BAT International Finance PLC,
1.40%, 6/5/15		5/31/12	$	2,992
BB&T Municipal Trust Sifma Floater Certificates, Series B (Rabobank Nederland LOC),
1.05%, 7/5/12		7/29/11		7,000
California State Pollution
Control Finance Authority
Solid Waste Disposal Variable
Revenue Refunding Bonds,
Series B, Republic Services,
0.45%, 8/1/12		4/27/12		2,555
Cooperatieve Centrale
Raiffeisen-Boerenleenbank
B.A.,
4.20%, 5/13/14		2/9/12		8,155
Daimler Finance N.A. LLC,
1.25%, 4/10/14		4/2/12		10,000
Daimler Finance N.A. LLC,
2.30%, 1/9/15		1/5/12		2,996
Kraft Foods Group, Inc.
1.63%, 6/4/15		5/30/12		1,995
New Jersey State Turnpike
Authority Variable Revenue
Bonds, Series B,
0.93%, 12/22/14		5/18/12		7,018

NORTHERN FUNDS QUARTERLY REPORT    15    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000S)
Oversea-Chinese Banking Corp. Ltd.,
1.63%, 3/13/15		3/6/12	$	3,992
SABMiller Holdings Inc.,
1.85%, 1/15/15		1/11/12		2,000
SABMiller PLC,
5.50%, 8/15/13		1/13/12		3,186
Xstrata Finance Canada Ltd.,
2.85%, 11/10/14		11/3/11		2,997

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(4) At March 31, 2012, the value of the Fund’s investment in the Tax Exempt Portfolio of the Northern Institutional Funds was approximately $18,971,000 with net sales of approximately $17,954,000 during the three months ended June 30, 2012.

At June 30, 2012, the quality distribution for the Tax-Advantaged Ultra-Short Fixed Income Fund was:

QUALITY DISTRIBUTION*	% OF LONG-TERM INVESTMENTS
AAA		16.6	%
AA+		12.1
AA		11.8
AA-		14.0
A+		11.2
A		7.2
A-		9.9
BBB+		4.2
BBB		4.9
BBB-		1.2
A1+ (Short Term)		1.0
A1 (Short Term)		2.9
A2 (Short Term)		0.6
Not Rated		2.3
Cash Equivalents		0.1
Total		100.0	%

* Credit quality ratings are based on the available Moody’s, Standard & Poor’s, and/or Fitch ratings. When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing). Treasury securities are obligations issued or guaranteed by the U.S. Treasury. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,377,523
Gross tax appreciation of investments	$	4,922
Gross tax depreciation of investments		(2,198	)
Net tax appreciation of investments	$	2,724

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g. information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Tax-Advantaged Ultra-Short Fixed Income Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Corporate Bonds	$	—	$	248,740	(1)	$	—	$	248,740
Foreign Issuer Bonds		—		121,946	(1)		—		121,946
Municipal Bonds		—		967,855	(1)		—		967,855
Investment Companies		1,017		—			—		1,017
Short-Term Investments		—		40,689			—		40,689
Total Investments	$	1,017	$	1,379,230		$	—	$	1,380,247

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

FIXED INCOME FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guarantee Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BANS - Bond Anticipation Notes

COP - Certificate of Participation

EDA - Economic Development Authority

FGIC - Financial Guaranty Insurance Corporation

G.O. - General Obligation

Gtd. - Guaranteed

IDA - Industrial Development Authority

LOC - Letter of Credit

NATL-RE - National Public Finance Guarantee Corporation

PCR - Pollution Control Revenue

PFA - Public Finance Authority

PSF - Permanent School Fund

RANS - Revenue Anticipation Notes

SCSDE - South Carolina School District Enhancement

TANS - Tax Anticipation Notes

TRB - Tax Revenue Bonds

With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a pecentage of total net assets.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, 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 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 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.

NORTHERN FUNDS QUARTERLY REPORT    17    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 8.0%
Automobile - 4.1%
Ally Auto Receivables Trust, Series 2011-4, Class A2,
0.65%, 3/17/14	$	1,626	$	1,626
Bank of America Auto Trust, Series 2012-1, Class A2,
0.59%, 11/17/14		2,400		2,401
BMW Vehicle Lease Trust, Series 2012-1, Class A2,
0.59%, 6/20/14		1,500		1,500
BMW Vehicle Owner Trust, Series 2010-A, Class A3,
1.39%, 4/25/14		808		811
CarMax Auto Owner Trust, Series 2009-2, Class A3,
1.74%, 4/15/14		372		373
CarMax Auto Owner Trust, Series 2012-1, Class A2,
0.59%, 3/16/15		2,000		2,001
Chrysler Financial Auto Securitization Trust, Series 2009-A, Class A3,
2.82%, 1/15/16		38		38
Ford Credit Auto Owner Trust, Series 2009-E, Class A3,
1.51%, 1/15/14		96		96
Ford Credit Auto Owner Trust, Series 2012-B, Class A2,
0.57%, 1/15/15		2,000		2,001
Honda Auto Receivables Owner Trust, Series 2009-3, Class A3,
2.31%, 5/15/13		4		4
Honda Auto Receivables Owner Trust, Series 2012-2, Class A2,
0.56%, 11/17/14		1,540		1,540
Hyundai Auto Receivables Trust, Series 2009-A, Class A3,
2.03%, 8/15/13		64		65
Hyundai Auto Receivables Trust, Series 2010-A, Class A3,
1.50%, 10/15/14		567		569
Mercedes-Benz Auto Receivables Trust, Series 2009-1, Class A3,
1.67%, 1/15/14		242		243
Mercedes-Benz Auto Receivables Trust, Series 2010-1, Class A3,
1.42%, 8/15/14		469		471
Nissan Auto Lease Trust, Series 2012-A, Class A2A,
0.68%, 7/15/14		1,000		1,001
Porsche Financial Auto Securitization Trust, Series 2011-1, Class A2,
0.56%, 12/16/13(1)		271		271
Toyota Auto Receivables Owner Trust, Series 2010-A, Class A3,
1.27%, 12/16/13		625		626
Toyota Auto Receivables Owner Trust, Series 2010-B, Class A3,
1.04%, 2/18/14		462		463
Toyota Auto Receivables Owner Trust, Series 2012-A, Class A2,
0.57%, 10/15/14		1,000		1,000
USAA Auto Owner Trust, Series 2009-2, Class A3,
1.54%, 2/18/14		40		40
Volkswagen Auto Lease Trust, Series 2012-A, Class A2,
0.66%, 11/20/14		1,500		1,501
Volkswagen Auto Loan Enhanced Trust, Series 2010-1, Class A3,
1.31%, 1/20/14		270		270
World Omni Auto Receivables Trust, Series 2010-A, Class A3,
1.34%, 12/16/13		225		225
				19,136
Credit Card - 3.2%
BA Credit Card Trust, Series 2010-A1, Class A1,
0.54%, 9/15/15		2,500		2,505
Chase Issuance Trust, Series 2012-A3, Class A3,
0.79%, 6/15/17		2,000		2,001
Discover Card Master Trust, Series 2009-A2, Class A,
1.54%, 2/17/15		600		601
GE Capital Credit Card Master Note Trust, Series 2009-2, Class A,
3.69%, 7/15/15		600		600
GE Capital Credit Card Master Note Trust, Series 2011-1, Class A,
0.79%, 1/15/17		1,500		1,509
GE Capital Credit Card Master Note Trust, Series 2012-4, Class A,
0.54%, 6/15/18		2,000		2,000
Gracechurch Card Funding PLC, Series 2010-1A, Class A,
0.84%, 11/15/14(1)		3,000		2,999

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 8.0% continued
Credit Card - 3.2% continued
Turquoise Card Backed Securities PLC, Series 2011-1A, Class A,
0.99%, 9/15/16(1) (2)	$	3,000	$	3,000
				15,215
Equipment - 0.7%
GE Dealer Floorplan Master Note Trust, Series 2011-1, Class A,
0.84%, 7/20/16		2,000		2,008
GE Equipment Small Ticket LLC, Series 2012-1A, Class A2,
0.85%, 11/21/14(1)		1,000		1,001
				3,009
Total Asset-Backed Securities
(Cost $37,316)				37,360
CORPORATE BONDS - 61.4%
Aerospace/Defense - 0.3%
United Technologies Corp.,
1.20%, 6/1/15		1,500		1,517
Agriculture - 0.9%
Bunge Ltd. Finance Corp.,
5.35%, 4/15/14		4,010		4,231
Apparel - 0.7%
VF Corp.,
1.22%, 8/23/13		3,100		3,100
Auto Manufacturers - 2.7%
Daimler Finance N.A. LLC,
1.07%, 3/28/14(1)		3,500		3,492
1.25%, 4/10/14(1) (2)		3,000		3,002
Toyota Motor Credit Corp.,
1.25%, 11/17/14		6,000		6,052
				12,546
Auto Parts & Equipment - 0.6%
Johnson Controls, Inc.,
4.88%, 9/15/13		2,600		2,717
Banks - 10.3%
Bank of America Corp.,
1.89%, 1/30/14		4,000		3,958
2.02%, 7/11/14		2,100		2,067
Bank of New York Mellon (The) Corp.,
0.74%, 7/28/14		2,200		2,203
Capital One Financial Corp.,
2.13%, 7/15/14		2,000		2,017
2.15%, 3/23/15		1,000		1,008
Citigroup, Inc.,
5.30%, 10/17/12		500		506
2.47%, 8/13/13		3,000		3,021
5.50%, 10/15/14		1,000		1,059
Goldman Sachs Group (The), Inc.,
4.75%, 7/15/13		2,000		2,056
1.47%, 2/7/14		4,500		4,446
5.13%, 1/15/15		2,000		2,088
HSBC USA, Inc.,
2.38%, 2/13/15		5,000		5,057
JPMorgan Chase & Co.,
1.65%, 9/30/13		2,000		2,013
1.27%, 1/24/14		2,000		2,005
Morgan Stanley,
2.97%, 5/14/13		2,000		1,997
2.07%, 1/24/14		2,000		1,944
2.88%, 1/24/14		2,500		2,472
U.S. Bancorp,
1.38%, 9/13/13		2,000		2,017
1.13%, 10/30/13		3,000		3,014
Wells Fargo & Co.,
1.38%, 6/26/15		3,500		3,505
				48,453
Beverages - 3.3%
Anheuser-Busch InBev Worldwide, Inc.,
0.83%, 7/14/14		1,900		1,911
1.50%, 7/14/14		3,000		3,041
Coca-Cola (The) Co.,
0.75%, 11/15/13		2,000		2,007
Coca-Cola Enterprises, Inc.,
1.13%, 11/12/13		2,500		2,510
PepsiCo, Inc.,
0.75%, 3/5/15		4,000		3,989
SABMiller Holdings, Inc.,
1.85%, 1/15/15(1) (2)		2,000		2,029
				15,487
Biotechnology - 1.4%
Amgen, Inc.,
1.88%, 11/15/14		3,500		3,554
Gilead Sciences, Inc.,
2.40%, 12/1/14		3,000		3,092
				6,646

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 61.4% continued
Chemicals - 1.4%
Air Products & Chemicals, Inc.,
4.15%, 2/1/13	$	3,000	$	3,062
Airgas, Inc.,
2.85%, 10/1/13		3,500		3,575
				6,637
Commercial Services - 0.8%
ERAC USA Finance LLC,
5.80%, 10/15/12(1)		1,000		1,012
2.75%, 7/1/13(1)		1,000		1,014
2.25%, 1/10/14(1)		1,500		1,509
				3,535
Computers - 3.3%
Dell, Inc.,
1.06%, 4/1/14		3,400		3,422
Hewlett-Packard Co.,
6.13%, 3/1/14		3,387		3,636
2.02%, 9/19/14		2,000		2,023
International Business Machines Corp.,
0.88%, 10/31/14		3,000		3,014
0.55%, 2/6/15		1,500		1,490
0.75%, 5/11/15		2,000		1,997
				15,582
Diversified Financial Services - 11.4%
American Express Credit Corp.,
1.32%, 6/24/14		2,500		2,515
1.57%, 6/12/15		5,200		5,253
American Honda Finance Corp.,
2.38%, 3/18/13(1)		1,300		1,316
1.63%, 9/20/13(1)		1,800		1,819
1.45%, 2/27/15(1) (2)		2,000		2,008
Caterpillar Financial Services Corp.,
1.13%, 12/15/14		3,400		3,429
1.05%, 3/26/15		2,000		2,012
1.10%, 5/29/15		2,000		2,011
Charles Schwab (The) Corp.,
4.95%, 6/1/14		4,000		4,290
General Electric Capital Corp.,
1.31%, 1/7/14		2,500		2,510
1.09%, 4/7/14		2,000		1,998
1.17%, 4/24/14		2,500		2,500
2.15%, 1/9/15		2,000		2,034
Harley-Davidson Funding Corp.,
5.75%, 12/15/14(1) (2)		2,786		3,017
John Deere Capital Corp.,
0.69%, 3/3/14		2,750		2,757
0.64%, 6/16/14		3,000		3,009
0.88%, 4/17/15		2,000		2,002
MassMutual Global Funding II,
0.96%, 9/27/13(1)		3,000		3,011
PACCAR Financial Corp.,
1.55%, 9/29/14		3,200		3,248
TD Ameritrade Holding Corp.,
2.95%, 12/1/12		2,800		2,822
				53,561
Electric - 1.9%
Commonwealth Edison Co.,
1.63%, 1/15/14		2,000		2,027
Dominion Resources, Inc.,
1.80%, 3/15/14		1,000		1,014
MidAmerican Energy Holdings Co.,
3.15%, 7/15/12		2,000		2,001
NextEra Energy Capital Holdings, Inc.,
2.55%, 11/15/13		3,000		3,044
1.61%, 6/1/14		1,000		1,003
				9,089
Food - 1.7%
Kellogg Co.,
4.25%, 3/6/13		3,450		3,532
Kraft Foods Group, Inc.,
1.63%, 6/4/15(1) (2)		2,000		2,021
Kroger (The) Co.,
5.00%, 4/15/13		2,200		2,267
				7,820
Healthcare - Products - 0.7%
DENTSPLY International, Inc.,
1.97%, 8/15/13		3,400		3,419
Healthcare - Services - 1.0%
Quest Diagnostics, Inc.,
1.32%, 3/24/14		2,000		2,016
Roche Holdings, Inc.,
5.00%, 3/1/14(1)		2,427		2,590
				4,606
Insurance - 2.3%
American International Group, Inc.,
3.00%, 3/20/15		3,000		3,015

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 61.4% continued
Insurance - 2.3% continued
Berkshire Hathaway, Inc.,
1.17%, 8/15/14	$	2,000	$	2,025
MetLife, Inc.,
1.72%, 8/6/13		2,500		2,525
Metropolitan Life Global Funding I,
1.22%, 1/10/14(1)		1,500		1,501
Prudential Financial, Inc.,
5.15%, 1/15/13		1,500		1,535
				10,601
Internet - 1.0%
eBay, Inc.,
0.88%, 10/15/13		1,700		1,710
Google, Inc.,
1.25%, 5/19/14		3,000		3,047
				4,757
Media - 1.8%
NBCUniversal Media LLC,
2.10%, 4/1/14		3,475		3,537
Time Warner Cable, Inc.,
6.20%, 7/1/13		2,000		2,102
Viacom, Inc.,
1.25%, 2/27/15		3,000		3,007
				8,646
Mining - 0.5%
Freeport-McMoRan Copper & Gold, Inc.,
1.40%, 2/13/15		2,500		2,491
Miscellaneous Manufacturing - 1.0%
Danaher Corp.,
1.30%, 6/23/14		2,000		2,021
Eaton Corp.,
4.90%, 5/15/13		2,500		2,588
				4,609
Office/Business Equipment - 1.2%
Pitney Bowes, Inc.,
3.88%, 6/15/13		1,500		1,535
Xerox Corp.,
1.87%, 9/13/13		2,000		2,014
1.29%, 5/16/14		2,000		1,997
				5,546
Oil & Gas - 0.9%
Phillips 66,
1.95%, 3/5/15(1) (2)		4,000		4,029
Oil & Gas Services - 0.4%
Cameron International Corp.,
1.60%, 4/30/15		2,000		2,001
Pharmaceuticals - 1.3%
Express Scripts Holding Co.,
2.10%, 2/12/15(1) (2)		3,000		3,029
McKesson Corp.,
5.25%, 3/1/13		3,041		3,132
				6,161
Real Estate Investment Trusts - 0.4%
HCP, Inc.,
2.70%, 2/1/14		2,000		2,032
Retail - 2.8%
AutoZone, Inc.,
5.88%, 10/15/12		2,100		2,129
Darden Restaurants, Inc.,
5.63%, 10/15/12		2,800		2,835
McDonald’s Corp.,
0.75%, 5/29/15		2,000		2,000
Nordstrom, Inc.,
6.75%, 6/1/14		3,500		3,881
Target Corp.,
4.00%, 6/15/13		2,000		2,062
				12,907
Semiconductors - 0.4%
Broadcom Corp.,
1.50%, 11/1/13		2,000		2,025
Software - 0.4%
Microsoft Corp.,
2.95%, 6/1/14		2,000		2,091
Telecommunications - 0.9%
Cisco Systems, Inc.,
1.63%, 3/14/14		1,700		1,732
Verizon Communications, Inc.,
1.25%, 11/3/14		2,500		2,531
				4,263
Toys, Games & Hobbies - 0.7%
Mattel, Inc.,
5.63%, 3/15/13		3,000		3,100

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 61.4% continued
Transportation - 2.4%
CSX Corp.,
5.75%, 3/15/13	$	3,300	$	3,410
FedEx Corp.,
7.38%, 1/15/14		3,094		3,387
Ryder System, Inc.,
6.00%, 3/1/13		3,000		3,088
United Parcel Service, Inc.,
4.50%, 1/15/13		1,539		1,573
				11,458
Trucking & Leasing - 0.6%
GATX Corp.,
4.75%, 10/1/12		3,000		3,025
Total Corporate Bonds (Cost $287,266)				288,688
COVERED BONDS - 2.2%
Banks - 2.2%
Bank of Nova Scotia,
1.45%, 7/26/13(1) (2)		1,300		1,313
Canadian Imperial Bank of Commerce,
2.00%, 2/4/13(1) (2)		1,400		1,413
1.50%, 12/12/14(1) (2)		2,000		2,036
Cie de Financement Foncier S.A.,
2.13%, 4/22/13(1) (2)		1,000		1,006
National Bank of Canada,
1.65%, 1/30/14(1) (2)		1,500		1,526
Swedbank Hypotek AB,
0.91%, 3/28/14(1) (2)		3,000		2,994
				10,288
Total Covered Bonds (Cost $10,230)				10,288
FOREIGN ISSUER BONDS - 25.9%
Agriculture - 0.2%
BAT International Finance PLC,
1.40%, 6/5/15(1) (2)		1,000		1,000
Banks - 13.6%
Abbey National Treasury Services PLC,
2.05%, 4/25/14		2,000		1,914
Australia & New Zealand Banking Group Ltd.,
1.21%, 1/10/14(1)		2,000		2,001
Bank of Montreal,
1.75%, 4/29/14		2,500		2,547
Bank of Nova Scotia,
0.90%, 2/27/14		3,500		3,500
Barclays Bank PLC,
1.51%, 1/13/14		2,500		2,503
Commonwealth Bank of Australia,
1.95%, 3/16/15		3,000		3,019
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A.,
0.67%, 7/25/13		1,500		1,500
Credit Suisse,
5.00%, 5/15/13		2,000		2,063
1.43%, 1/14/14		4,000		4,004
HSBC Bank PLC,
1.12%, 8/12/13(1)		2,000		2,002
1.27%, 1/17/14(1)		2,000		2,004
Kreditanstalt fuer Wiederaufbau,
0.47%, 2/22/13		1,500		1,500
National Australia Bank Ltd.,
1.67%, 1/30/14		3,200		3,217
1.19%, 4/11/14(1)		2,500		2,501
Nordea Bank Finland PLC,
1.34%, 4/9/14		3,000		3,004
Oesterreichische Kontrollbank A.G.,
1.13%, 7/6/15		2,000		2,003
Royal Bank of Canada,
1.45%, 10/30/14		2,000		2,025
1.15%, 3/13/15		4,000		4,009
Svenska Handelsbanken,
1.02%, 9/16/13		2,000		2,001
1.02%, 9/25/13		5,000		4,999
Toronto-Dominion Bank (The),
1.38%, 7/14/14		2,500		2,531
UBS A.G.,
1.47%, 1/28/14		4,500		4,475
Westpac Banking Corp.,
2.25%, 11/19/12		1,500		1,510
2.10%, 8/2/13		1,200		1,218
1.20%, 12/9/13		2,000		2,011
				64,061

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 25.9% continued
Chemicals - 0.8%
Potash Corp. of Saskatchewan, Inc.,
5.25%, 5/15/14	$	3,300	$	3,547
Food - 0.9%
TESCO PLC,
2.00%, 12/5/14(1) (2)		4,000		4,041
Healthcare - Products - 0.9%
Covidien International Finance S.A.,
1.88%, 6/15/13		2,000		2,020
1.35%, 5/29/15		2,000		2,002
				4,022
Mining - 3.1%
Barrick Gold Corp.,
1.75%, 5/30/14		3,000		3,037
BHP Billiton Finance USA Ltd.,
1.13%, 11/21/14		3,200		3,219
1.00%, 2/24/15		1,000		1,002
Rio Tinto Alcan, Inc.,
4.50%, 5/15/13		3,000		3,088
Rio Tinto Finance USA Ltd.,
5.88%, 7/15/13		2,000		2,101
Xstrata Finance Canada Ltd.,
2.85%, 11/10/14(1) (2)		2,000		2,038
				14,485
Miscellaneous Manufacturing - 1.5%
Ingersoll-Rand Global Holding Co. Ltd.,
6.00%, 8/15/13		3,400		3,585
Tyco Electronics Group S.A.,
6.00%, 10/1/12		2,000		2,026
1.60%, 2/3/15		1,500		1,506
				7,117
Oil & Gas - 1.9%
BP Capital Markets PLC,
1.07%, 3/11/14		3,000		3,021
Canadian Natural Resources Ltd.,
1.45%, 11/14/14		3,500		3,543
Petrobras International Finance Co.,
2.88%, 2/6/15		2,500		2,537
				9,101
Oil & Gas Services - 0.7%
Schlumberger Investment S.A.,
1.02%, 9/12/14(1)		3,100		3,103
AstraZeneca PLC,
5.40%, 9/15/12		1,500		1,515
GlaxoSmithKline Capital PLC,
0.75%, 5/8/15		3,000		3,000
Teva Pharmaceutical Finance III B.V.,
0.97%, 3/21/14		1,350		1,352
				5,867
Regional - 0.4%
Province of Ontario Canada,
0.61%, 4/1/15		2,000		1,998
Telecommunications - 0.7%
Telefonica Emisiones S.A.U.,
5.86%, 2/4/13		3,500		3,508
Total Foreign Issuer Bonds
(Cost $121,479)				121,850

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 0.6%(3)
Fannie Mae - 0.6%
0.65%, 5/29/15	$	3,000	$	2,997
Total U.S. Government Agencies
(Cost $3,000)				2,997

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 0.7%
Northern Institutional Funds - Diversified Assets Portfolio(4) (5)		3,256,054	$	3,256
Total Investment Companies
(Cost $3,256)				3,256

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.6%
Citizens Property Insurance Corp. Revenue Bonds, Series A3, High Risk Floating Notes,
1.90%, 1/6/13	$	3,000	$	3,030
Total Short-Term Investments
(Cost $3,007)				3,030
Total Investments - 99.4%
(Cost $465,554)				467,469
Other Assets less Liabilities - 0.6%				2,769
NET ASSETS - 100.0%			$	470,238

(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 June 30, 2012, the value of these restricted illiquid securities amounted to approximately $39,502,000 or 8.4% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000S)
American Honda Finance Corp.,
1.45%, 2/27/15		2/21/12	$	1,999
Bank of Nova Scotia,
1.45%, 7/26/13		7/16/10		1,298
BAT International Finance PLC,
1.40%, 6/5/15		5/31/12		997
Canadian Imperial Bank of Commerce,
2.00%, 2/4/13		1/28/10		1,400
Canadian Imperial Bank of Commerce,
1.50%, 12/12/14		2/23/12		2,036
Cie de Financement Foncier S.A.,
2.13%, 4/22/13		4/19/10		998
Daimler Finance N.A. LLC,
1.25%, 4/10/14		4/2/12		3,000
Express Scripts Holding Co.,
2.10%, 2/12/15		2/7/12		2,985
Harley-Davidson Funding Corp.,
5.75%, 12/15/14		1/26/12		3,030
Kraft Foods Group, Inc.,
1.63%, 6/4/15		5/30/12		1,995
National Bank of Canada,
1.65%, 1/30/14		1/24/11		1,500
Phillips 66,
1.95%, 3/5/15		3/7/12		3,998
SABMiller Holdings, Inc.,
1.85%, 1/15/15		1/11/12		2,000
Swedbank Hypotek AB,
0.91%, 3/28/14		3/21/11		3,000
TESCO PLC,
2.00%, 12/5/14		11/28/11		3,996
Turquoise Card Backed Securities PLC, Series 2011-1A, Class A,
0.99%, 9/15/16		10/6/11		3,000
Xstrata Finance Canada Ltd.,
2.85%, 11/10/14		11/3/11		1,998

(3) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed.

(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(5) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $4,809,000 with net sales of approximately $1,553,000 during the three months ended June 30, 2012.

With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a pecentage of total net assets.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, 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 or the prerefunded date for these types of securities.

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

At June 30, 2012, the quality distribution for the Ultra-Short Fixed Income Fund was:

QUALIT Y DIS TRIBUTION*	% OF INVESTMENTS
AAA		11.4	%
AA+		0.6
AA		1.4
AA-		15.6
A+		9.9
A		16.0
A-		15.6
BBB+		14.6
BBB		12.8
BBB-		0.7
Agency		0.7
Cash Equivalents		0.7
Total		100.0	%

* Credit quality ratings are based on the available Moody’s, Standard & Poor’s, and/or Fitch ratings. When ratings from all three agencies are available, the median rating is used. When ratings are available from two of the agencies, the lower rating is used. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). Agency securities are obligations issued or guaranteed by U.S. government agencies and sponsored enterprises. Treasury securities are obligations issued or guaranteed by the U.S. Treasury. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	465,554
Gross tax appreciation of investments	$	2,399
Gross tax depreciation of investments		(484	)
Net tax appreciation of investments	$	1,915

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Ultra-Short Fixed Income Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Asset-Backed Securities	$	—	$	37,360	(1)	$	—	$	37,360
Corporate Bonds		—		288,688	(1)		—		288,688
Covered Bonds		—		10,288			—		10,288
Foreign Issuer Bonds		—		121,850	(1)		—		121,850
U.S. Government Agencies		—		2,997			—		2,997
Investment Companies		3,256		—			—		3,256
Short-Term Investments		—		3,030			—		3,030
Total Investments	$	3,256	$	464,213		$	—	$	467,469

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 32.5%(1)
Fannie Mae - 22.5%
Pool #555649,
7.50%, 10/1/32	$	150	$	183
Pool #745148,
5.00%, 1/1/36		940		1,022
Pool #893082,
2.71%, 9/1/36		367		394
Pool #AH1166,
4.50%, 12/1/40		346		376
Pool TBA,
4.00%, 8/15/39(2)		2,475		2,629
4.50%, 8/15/39(2)		1,900		2,037
5.00%, 8/15/39(2)		2,305		2,494
5.50%, 8/15/39(2)		2,400		2,617
6.00%, 8/15/39(2)		1,115		1,225
Series 2007, Class 26C,
5.50%, 3/25/33		378		388
				13,365
Freddie Mac - 5.9%
1.25%, 5/12/17		1,790		1,814
Pool #1J0365,
4.95%, 4/1/37		491		527
Pool #1J2840,
5.88%, 9/1/37		760		809
Pool #410092,
2.33%, 11/1/24		45		45
Series 3730, Class PL,
4.50%, 1/15/33		338		349
				3,544
Government National Mortgage Association - 2.9%
Series 2008, Class 8A,
3.61%, 8/16/27		2		2
Series 2010, CLass 141A,
1.86%, 8/16/31		379		383
Series 2011, Class 31A,
2.21%, 12/16/35		557		568
Series 2011, Class 49A,
2.45%, 7/16/38		488		501
Series 2011, Class 49AB,
2.80%, 1/16/34		242		249
				1,703
Government National Mortgage Association I - 0.1%
Pool #268360,
10.00%, 4/15/19		17		20
Pool #270288,
10.00%, 6/15/19		18		21
				41
Government National Mortgage Association II - 1.1%
Pool #82581,
4.00%, 7/20/40		640		681
Total U.S. Government Agencies
(Cost $19,119)				19,334
U.S. GOVERNMENT OBLIGATIONS - 6 4.7%
U.S. Treasury Inflation Indexed Notes - 17.4%
2.00%, 1/15/14		2,290		2,960
1.88%, 7/15/15		2,315		2,978
0.13%, 4/15/17		2,450		2,619
0.13%, 1/15/22		1,660		1,785
				10,342
U.S. Treasury Notes - 47.3%
0.25%, 6/30/14		3,000		2,996
0.38%, 6/15/15		5,395		5,390
0.75%, 6/30/17		8,550		8,559
1.00%, 6/30/19		1,875		1,860
1.75%, 5/15/22		9,230		9,305
				28,110
Total U.S. Government Obligations
(Cost $38,443)				38,452

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 36.8%
Northern Institutional Funds - U.S. Government Portfolio(3) (4)		21,908,225	$	21,908
Total Investment Companies
(Cost $21,908)				21,908

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.4%
U.S. Treasury Bill,
0.14%, 12/20/12	$	250	$	250
Total Short - Term Investments (Cost $250)				250
Total Investments - 134.4% (Cost $79,720)				79,944
Liabilities less Other Assets - (34.4)%				(20,444	)
NET ASSETS - 100.0%			$	59,500

(1) The obligations of certain U.S. Government-sponsored entities are neither issued nor guaranteed by the United States Treasury. On September 7, 2008, the Federal Housing Finance Agency (“FHFA”) placed Fannie Mae and Freddie Mac in conservatorship. The United States Treasury has put in place a set of financing agreements to ensure that these entities continue to meet their obligations to holders of bonds that they have issued or guaranteed.

(2) When-Issued Security.

(3) At March 31, 2012, the value of the Fund’s investment in the U.S. Government Portfolio of the Northern Institutional Funds was approximately $26,909,000 with net sales of approximately $5,001,000 during the three months ended June 30, 2012.

(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

With respect to the Schedule of Investments, the percentage shown for each investment category reflects the value of investments in that category as a percentage of total nets assets.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, or, 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 or the prerefunded date for these types of securities.

Percentages shown are based on Net Assets.

At June 30, 2012, the quality distribution for the U.S. Government Fund was:

QUALIT Y DIS TRIBUTION*	% OF LONG TERM INVESTMENTS
Cash Equivalents		27.4	%
U.S. Agency		21.2
U.S. Treasury		51.4
Total		100.0	%

* Credit quality ratings are based on the conservative average of Moody’s, Standard & Poor’s, and Fitch ratings. If ratings from all three rating agencies disagree, the model assigns the middle rating to the security. If two of the three agree, the model assigns the rating from those two to the security. If none of these three rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Moody’s nomenclature, range from Aaa (judged to be of the highest quality, with minimal credit risk) to C (the lowest rated class of bonds, typically in default, with little prospect for recovery of principal or interest). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	79,784
Gross tax appreciation of investments	$	256
Gross tax depreciation of investments		(96	)
Net tax appreciation of investments	$	160

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assupmtions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the U.S. Government Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
U.S. Government Agencies	$	—	$	19,334	(1)	$	—	$	19,334
U.S. Government Obligations		—		38,452	(1)		—		38,452
Investment Companies		21,908		—			—		21,908
Short-Term Investments		—		250			—		250
Total Investments	$	21,908	$	58,036		$	—	$	79,944

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.4%
Arizona - 95.7%
Arizona State Board of Regents University System Revenue Bonds, Series A, 5.00%, 6/1/21	$	500	$	592
Arizona State School Facilities Board COP, 5.25%, 9/1/23		2,000		2,258
Arizona State Sports & Tourism Authority Senior Revenue Refunding Bonds, Series A, Multipurpose Stadium Facilities, 5.00%, 7/1/29		2,000		2,212
Arizona State Transportation Board Highway Revenue Bonds, Series B, 5.00%, 7/1/30		1,000		1,117
Arizona State Transportation Board Highway Revenue Refunding Bonds, Series A, 5.00%, 7/1/18		3,000		3,623
Arizona State University COP, Research Infrastructure Projects (AMBAC Insured), 5.00%, 9/1/30		2,000		2,129
Arizona State University System Revenue Refunding Bonds (AMBAC Insured), 5.00%, 7/1/27		1,450		1,582
Bullhead City Municipal Property Corp. Excise TRB (NATL-RE Insured), 5.00%, 7/1/23		1,000		1,062
Coconino & Yavapai Counties Joint Unified School District No. 9 G.O. Unlimited Bonds, Series B, School Improvement Project of 2007 (Assured Guaranty Insured), 5.00%, 7/1/22		1,345		1,572
Gilbert Public Facilities Municipal Property Corp. Revenue Bonds, 5.50%, 7/1/28		1,000		1,133
Gilbert Public Facilities Municipal Property Corp. Revenue Refunding Bonds, 4.00%, 7/1/19		1,915		2,165
Glendale Water & Sewer Revenue Bonds, Sub Lien (AGM Insured), 5.00%, 7/1/25		2,000		2,233
Glendale Water & Sewer Revenue Bonds, Sub Lien (AMBAC Insured) Prerefunded, 5.00%, 7/1/13		2,000		2,095
Goodyear Public Improvement Corp. Municipal Facilities Revenue Bonds, 6.00%, 7/1/31		1,000		1,131
Goodyear Public Improvement Corp. Municipal Facilities Revenue Bonds, Series A (NATL-RE Insured), 5.00%, 7/1/22		1,000		1,088
Goodyear Public Improvement Corp. Municipal Facilities Revenue Refunding Bonds, Series B, 3.00%, 7/1/18		1,165		1,225
Goodyear Water & Sewer Revenue Bonds, Sub Lien Obligations (AGM Insured), 5.25%, 7/1/31		1,000		1,118
Greater Development Authority Infrastructure Revenue Bonds, Series 2, Santa Cruz County Jail, 5.00%, 8/1/28		2,000		2,128
5.25%, 8/1/31		1,005		1,080
Marana Municipal Property Corp. Municipal Facilities Revenue Bonds, Series A, 5.25%, 7/1/23		1,970		2,223
Maricopa County Community College District G.O. Unlimited Bonds, Series C, 3.00%, 7/1/22		2,000		2,088
Maricopa County Elementary School District No. 1 Phoenix G.O. Unlimited Bonds, Series B, School Improvement Project of 2006, 4.50%, 7/1/21		1,190		1,351
Maricopa County Elementary School District No. 8 Osborn G.O. Limited Refunding Bonds (NATL-RE FGIC Insured), 4.70%, 7/1/14		1,000		1,066
Maricopa County Elementary School District No. 8 Osborn G.O. Unlimited Bonds, Series B, School Improvement Project of 2006, 5.00%, 7/1/15		680		758
Maricopa County High School District No. 210 Phoenix G.O. Unlimited Refunding Bonds (AGM Insured), 5.25%, 7/1/18		225		273
5.25%, 7/1/20		1,000		1,241
Maricopa County Unified School District No. 11 Peoria G.O. Limited Refunding Bonds, 5.00%, 7/1/21		2,300		2,753
Maricopa County Unified School District No. 4 Mesa G.O. Unlimited Bonds, Series D, School Improvement Project of 2005, 4.00%, 7/1/17		1,000		1,138

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.4% continued
Arizona - 95.7% continued
Maricopa County Unified School District No. 60 Higley G.O. Unlimited Bonds, Series C, School Improvement Project of 2006, 5.00%, 7/1/27	$	1,000	$	1,113
Maricopa County Unified School District No. 80 Chandler G.O. Unlimited Bonds, Series A-1, School Improvement Project of 2010, 4.00%, 7/1/22		1,040		1,171
Maricopa County Unified School District No. 80 Chandler G.O. Unlimited Bonds, School Improvement, 5.00%, 7/1/23		175		205
Maricopa County Unified School District No. 89 Dysart G.O. Unlimited Bonds, Series B, School Improvement Project of 2002 (AGM Insured), 5.25%, 7/1/15		1,000		1,088
Maricopa County Unified School District No. 89 Dysart G.O. Unlimited Bonds, Series B, School Improvement Project of 2006 (AMBAC Insured), 5.00%, 7/1/27		500		542
Mesa G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured), 5.00%, 7/1/18		150		180
Mesa Street & Highway Revenue Refunding Bonds (AGM Insured), 5.00%, 7/1/23		1,000		1,183
Mesa Utility System Revenue Refunding Bonds (NATL-RE FGIC Insured), 5.00%, 7/1/18		3,015		3,607
5.00%, 7/1/19		1,510		1,831
Mohave County Unified School District No. 20 Kingman G.O. Unlimited Bonds, Series C, School Improvement Project of 2006 (Assured Guaranty Insured), 5.50%, 7/1/21		1,000		1,228
5.00%, 7/1/23		1,000		1,170
Northern University COP, University Research Projects (AMBAC Insured), 5.00%, 9/1/26		400		415
Northern University Revenue Bonds (AGM Insured), 3.25%, 6/1/27		320		317
3.38%, 6/1/28		385		384
3.50%, 6/1/29		415		416
3.63%, 6/1/30		640		646
3.75%, 6/1/31		540		548
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series A, Junior Lien, 3.50%, 7/1/20		500		538
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series B (AMT), Senior Lien, 5.25%, 7/1/16		1,000		1,137
Phoenix Civic Improvement Corp. Excise TRB, Series A, 5.00%, 7/1/24		1,135		1,337
Phoenix Civic Improvement Corp. Wastewater System Revenue Bonds, Junior Lien (NATL-RE Insured), 5.00%, 7/1/29		1,010		1,078
Phoenix Civic Improvement Corp. Wastewater System Revenue Refunding Bonds, Senior Lien, 5.50%, 7/1/20		1,690		2,071
5.50%, 7/1/21		1,080		1,315
Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien (NATL-RE FGIC Insured) Prerefunded, 5.50%, 7/1/12		3,500		3,501
Phoenix Civic Improvement Corp. Water System Revenue Bonds, Series A, Junior Lien, 5.00%, 7/1/39		530		607
Phoenix Civic Improvement Corp. Water System Revenue Refunding Bonds, Junior Lien, 3.00%, 7/1/20		1,400		1,523
Phoenix G.O. Unlimited Bonds, Prerefunded, 4.50%, 7/1/14		2,000		2,167
Phoenix Variable G.O. Unlimited Bonds, Unrefunded Balance, 5.38%, 7/1/20		580		580
Phoenix Various Purpose G.O. Unlimited Bonds, Series B, Prerefunded, 5.38%, 7/1/12		420		420
Pima County Sewer Revenue Bonds, Series B, 5.00%, 7/1/25		2,250		2,588
Pima County Sewer System Revenue Bonds (AGM Insured), 5.00%, 7/1/23		1,350		1,594

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.4% continued
Arizona - 95.7% continued
Pima County Street & Highway Revenue Bonds, 4.00%, 7/1/22	$	1,970	$	2,192
Pima County Unified School District No. 1 Tucson G.O. Unlimited Refunding Bonds, 5.00%, 7/1/21		1,000		1,219
Pima County Unified School District No. 6 Marana G.O. Unlimited Bonds, Series B, School Improvement Project of 2010 (AGM Insured), 5.25%, 7/1/25		1,000		1,158
Pinal County Unified School District No. 43 Apache Junction G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 7/1/22		1,000		1,233
Prescott Valley Municipal Property Corp. Municipal Facilities Revenue Refunding Bonds, 5.00%, 1/1/24		1,835		2,094
Rio Nuevo Multi-purpose Facilities District Excise TRB, Sub Lien, (Assured Guaranty Insured), 5.25%, 7/15/16		1,000		1,142
Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Series A, 5.00%, 1/1/37		1,000		1,091
Scottsdale Municipal Property Corp. Excise Tax Revenue Refunding Bonds, 5.00%, 7/1/30		2,675		3,283
Tempe G.O. Unlimited Bonds, 5.00%, 7/1/21		795		910
Tucson Airport Authority, Inc. Revenue Bonds (AMT), Sub Lien (NATL-RE Insured), 5.00%, 12/1/23		1,135		1,212
Tucson COP (Assured Guaranty Insured), 5.00%, 7/1/26		1,000		1,118
5.00%, 7/1/29		1,000		1,102
Tucson Refunding COP (AGM Insured), 4.00%, 7/1/21		1,885		2,053
Tucson Water System Revenue Bonds, 5.00%, 7/1/25		1,825		2,126
Tucson Water System Revenue Bonds, Series 2005-B (AGM Insured), 5.00%, 7/1/25		1,590		1,757
Yuma County Library District G.O. Unlimited Bonds (XLCA Insured), 5.00%, 7/1/23		1,000		1,102
5.00%, 7/1/28		1,945		2,089
				107,815
Puerto Rico - 1.7%
Puerto Rico Public Finance Corp. Revenue Bonds, Series E, Commonwealth Appropriated (AMBAC Insured), Escrowed to Maturity, 5.50%, 8/1/27		1,350		1,836
Total Municipal Bonds (Cost $101,266)				109,651
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 0.9%
Northern Institutional Funds - Tax-Exempt Portfolio (1) (2)		1,054,856	$	1,055
Total Investment Companies (Cost $1,055)				1,055
Total Investments - 98.3% (Cost $102,321)				110,706
Other Assets less Liabilities - 1.7%				1,937
NET ASSETS - 100.0%			$	112,643

(1) At March 31, 2012, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $4,660,000 with net sales of approximately $3,605,000 during the three months ended June 30, 2012.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

Percentages shown are based on Net Assets.

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND continued

At June 30, 2012, the industry sectors for the Arizona Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Facilities		6.7	%
General		28.5
General Obligation		8.6
School District		18.3
Utilities		7.4
Water		18.9
All other sectors less than 5%		11.6
Total		100.0	%

At June 30, 2012, the credit quality distribution for the Arizona Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		17.3	%
AA		67.5
A		12.5
BBB		1.7
Cash and Equivalents		1.0
Total		100.0	%

* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	102,333
Gross tax appreciation of investments	$	8,464
Gross tax depreciation of investments		(91	)
Net tax appreciation of investments	$	8,373

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Arizona Tax-Exempt Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	109,651	(1)	$	—	$	109,651
Investment Companies		1,055		—			—		1,055
Total Investments	$	1,055	$	109,651		$	—	$	110,706

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes/zero coupon bonds, 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, the next interest reset/ puttable date for floating and variable rate 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 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.

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guarantee Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

COP - Certificate of Participation

FGIC - Financial Guaranty Insurance Corporation

G.O. - General Obligation

NATL-RE - National Public Finance Guarantee Corp.

TRB - Tax Revenue Bonds

XLCA - XL Capital Assurance

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.9%
California - 96.8%
Bay Area Infrastructure Financing Authority Revenue Bonds, State Payment Acceleration Notes (NATL-RE FGIC Insured), 5.00%, 8/1/17	$	3,500	$	3,512
5.00%, 8/1/17		2,630		2,826
Brentwood Union School District G.O. Unlimited Refunding Bonds, 3.38%, 8/1/25		1,000		1,000
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), 5.00%, 8/1/27		1,500		1,609
California State Department of Water Resources Supply Revenue Bonds, Series L, 5.00%, 5/1/19		5,000		6,129
California State Economic Recovery G.O. Unlimited Refunding Bonds, Series A, 5.00%, 7/1/19		5,000		6,089
California State G.O. Unlimited Bonds, 5.00%, 2/1/24		2,000		2,079
California State G.O. Unlimited Bonds, Series 2007, Unrefunded Balance (FGIC Insured), 5.38%, 6/1/26		2,255		2,296
California State G.O. Unlimited Bonds, Unrefunded Balance (NATL-RE FGIC Insured), 4.75%, 2/1/19		85		85
California State G.O. Unlimited Refunding Bonds, 4.50%, 10/1/29		2,000		2,090
California State Health Facilities Financing Authority Revenue Bonds, Series A, Memorial Health Services, 4.00%, 10/1/21		1,000		1,135
California State Health Facilities Financing Authority Revenue Bonds, Series A, Scripps Health, 5.00%, 11/15/27		400		459
5.00%, 11/15/28		375		429
5.00%, 11/15/29		400		452
California State Health Facilities Financing Authority Revenue Bonds, Series B, Lucile Packard Childrens Hospital, 5.00%, 8/15/27		360		417
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Broad Museum Project, 5.00%, 6/1/21		9,610		11,869
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute, 5.75%, 7/1/30		1,000		1,002
California State Public Works Board Lease Revenue Bonds, Series D, Department of Justice, 5.25%, 11/1/16		1,000		1,003
California State Public Works Board Lease Revenue Bonds, Series D, Judicial Council Projects, 4.25%, 12/1/20		1,000		1,105
California State Public Works Board Lease Revenue Refunding Bonds, Series A, Department of Corrections State Prisons (AMBAC Insured), 5.25%, 12/1/13		1,195		1,227
California State Public Works Board Lease Revenue Refunding Bonds, Series A, Trustees California State University, 5.25%, 10/1/14		3,545		3,557
California State Public Works Board Lease Revenue Refunding Bonds, Series H, Department of Corrections & Rehabilitation, 5.00%, 6/1/19		2,000		2,166
California State Public Works Board Lease Revenue Refunding Bonds, Series J, Department of Corrections & Rehabilitation (AMBAC Insured), 5.00%, 1/1/19		1,300		1,431
California State University Systemwide Revenue Bonds, Series C (NATL-RE Insured), 5.00%, 11/1/28		1,175		1,283
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 9/1/18		2,980		3,553
5.00%, 10/1/18		500		597
5.50%, 4/1/19		1,000		1,221
5.00%, 9/1/19		4,720		5,636
5.00%, 10/1/19		2,990		3,573
5.00%, 9/1/20		1,690		2,022
5.00%, 10/1/20		6,000		7,185
4.75%, 6/1/22		2,500		2,704
5.25%, 3/1/30		1,500		1,712

NORTHERN FUNDS QUARTERLY REPORT     1    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.9% continued
California - 96.8% continued
5.00%, 8/1/33	$	1,100	$	1,166
5.00%, 8/1/35		3,225		3,399
California Statewide Communities Development Authority COP, John Muir/Mount Diablo Health System (NATL-RE Insured), 5.50%, 8/15/12		895		899
California Statewide Communities Development Authority Student Housing Revenue Bonds, Series A, East Campus Apartments LLC (ACA Insured), Escrowed to Maturity, 5.00%, 8/1/12		1,775		1,781
Carlsbad Unified School District G.O. Unlimited Capital Appreciation Bonds, 6.10%, 5/1/19(1)		1,250		1,027
Contra Costa County Home Mortgage Revenue Bonds, GNMA Mortgage Backed Securities Program (Collateralized by GNMA), Escrowed to Maturity, 7.50%, 5/1/14		1,000		1,131
Eastern Municipal District Water & Sewer COP, Series H, 5.00%, 7/1/33		2,000		2,177
El Dorado Irrigation District COP, Series A (Assured Guaranty Insured), 4.00%, 8/1/18		1,215		1,367
6.25%, 8/1/29		3,500		3,861
El Dorado Irrigation District Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 3/1/23(2)		750		871
5.00%, 3/1/24(2)		700		802
Escondido Revenue COP (AMBAC Insured), 4.00%, 9/1/17		500		547
Foothill/Eastern Transportation Corridor Agency Toll Road Capital Appreciation Revenue Bonds, Series A, Senior Lien, Escrowed to Maturity, 4.92%, 1/1/20(1)		2,150		1,871
Fremont Unified School District Alameda County G.O. Unlimited Refunding Bonds, 4.25%, 8/1/25		2,000		2,275
Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election of 2008, 5.38%, 8/1/44		1,500		1,720
Gilroy Unified School District G.O. Unlimited BANS, Escrowed to Maturity, 5.00%, 4/1/13		285		295
Gilroy Unified School District G.O. Unlimited BANS, Unrefunded Balance, 5.00%, 4/1/13		1,715		1,774
Golden State Tobacco Securitization Corp. Tobacco Settlement Enhanced Asset Backed Revenue Bonds, Series A (AMBAC Insured), 5.00%, 6/1/21		3,000		3,003
Golden State Tobacco Securitization Corp. Tobacco Settlement Enhanced Asset Backed Revenue Bonds, Series B (AMBAC Insured), Prerefunded, 5.00%, 6/1/13		2,500		2,609
Long Beach Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, 5.00%, 8/1/20		1,075		1,306
Los Altos School District G.O. Unlimited Refunding Bonds (AMBAC Insured), 5.00%, 8/1/19		2,000		2,281
Los Angeles Department of International Airports Revenue Bonds, Series D, 5.25%, 5/15/29		5,000		5,765
Los Angeles Department of Water & Power Waterworks Revenue Bonds, Series C (NATL-RE Insured), 5.00%, 7/1/29		1,000		1,066
Los Angeles G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 9/1/14		5,000		5,505
Los Angeles G.O. Unlimited Refunding Bonds, Series A, 5.00%, 9/1/19		3,500		4,296
Los Angeles Harbor Department Revenue Refunding Bonds, Series A (AMT), 5.00%, 8/1/19		1,500		1,794
Los Angeles Unified School District G.O. Unlimited Bonds, Series F, Election of 1997 (FGIC Insured), Prerefunded, 5.00%, 7/1/13		545		571
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series A, 2.00%, 7/1/21		2,000		1,962
2.00%, 7/1/22		3,000		2,898

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.9% continued
California - 96.8% continued
Los Angeles Unified School District Refunding COP, Series A, Headquarters Building Projects, 5.00%, 10/1/20	$	1,500	$	1,748
5.00%, 10/1/21		3,820		4,444
Los Angeles Wastewater System Revenue Refunding Bonds, Series A (NATL-RE FGIC Insured), 6.00%, 6/1/21		1,185		1,585
Los Angeles Wastewater System Revenue Refunding Bonds, Subseries C, 5.00%, 6/1/23		6,935		8,497
Marin County California COP, 3.00%, 8/1/21		1,595		1,705
4.00%, 8/1/23		1,140		1,267
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series C, 5.00%, 7/1/19		5,000		6,201
Metropolitan Water District of Southern California State Authorization Revenue Bonds, Series B-2 (NATL-RE FGIC Insured), Prerefunded, 5.00%, 10/1/13		2,000		2,119
Midpeninsula Regional Open Space District Revenue Bonds, 5.25%, 9/1/34		2,000		2,189
Modesto Irrigation District Electric Revenue Refunding Bonds, Series A, 4.00%, 7/1/19		1,230		1,385
4.00%, 7/1/20		885		994
Modesto Wastewater Revenue Refunding Bonds, Series A (AGM Insured), 5.25%, 11/1/18		1,000		1,138
Mojave Water Agency COP, Series A, 5.00%, 6/1/20		355		425
5.00%, 6/1/23		665		770
Northern California Power Agency Revenue Bonds, Series A, 5.00%, 7/1/18		1,500		1,794
Orange County Water District COP, Series B (NATL-RE Insured), Prerefunded, 5.38%, 8/15/13		1,000		1,058
Pasadena Unified School District G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 11/1/18		2,500		2,895
5.00%, 11/1/19		2,275		2,628
Poway Unified School District Improvement G.O. Unlimited Bonds, Election of 2008, District No. 2007-1-A, 6.83%, 8/1/20(1)		3,280		2,544
Redlands Unified School District G.O. Unlimited Bonds, Election of 2008 (AGM Insured), 5.00%, 7/1/28		150		166
5.00%, 7/1/29		1,000		1,105
Rescue Union School District COP (Assured Guaranty Insured), Escrowed to Maturity, 4.38%, 10/1/13		2,775		2,918
Ross Elementary School District G.O. Unlimited Bonds, Election of 2006 (NATL-RE Insured), 5.25%, 8/1/27		455		497
Sacramento County Airport System Senior Revenue Bonds, 5.00%, 7/1/28		1,500		1,669
Sacramento County Airport System Senior Revenue Bonds, Series B, 5.00%, 7/1/18		200		234
Sacramento County COP, Animal Care/Youth Detention (AMBAC Insured), 5.00%, 10/1/26		1,090		1,145
Sacramento Municipal Utility District Revenue Bonds, Series U (AGM Insured), 5.00%, 8/15/19		1,000		1,209
5.00%, 8/15/25		2,000		2,269
Sacramento Municipal Utility District Revenue Refunding Bonds, Series X, 5.00%, 8/15/20		1,950		2,367
San Diego Public Facilities Financing Authority Lease Revenue Refunding Bonds, Series A, Master Refunding Project, 4.00%, 3/1/19		1,150		1,261
4.25%, 3/1/20		1,130		1,253
San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, 4.00%, 5/15/20		1,495		1,720
San Diego Public Facilities Financing Authority Sewer Revenue Refunding Bonds, Senior Series B, 5.00%, 5/15/20		5,000		6,111

NORTHERN FUNDS QUARTERLY REPORT     3    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.9% continued
California - 96.8% continued
San Diego Regional Building Authority Revenue Bonds, Series A, County Operations Center & Annex Project, 4.00%, 2/1/19	$	3,615	$	4,078
San Diego Unified School District G.O. Unlimited Refunding Bonds, Series E-2, Election of 1998 (AGM Insured), 5.50%, 7/1/27		1,500		1,938
San Francisco City & County Airport Commission Revenue Refunding Bonds, Second Series C (FSA Insured), 4.00%, 5/1/18		1,875		2,133
San Francisco City & County G.O. Unlimited Refunding Bonds, Series R1, 5.00%, 6/15/20		3,000		3,715
San Francisco City & County Public Utilities Commission Water Revenue Bonds, 5.00%, 11/1/35		3,000		3,358
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Subseries A, 5.00%, 11/1/20		2,000		2,477
5.00%, 11/1/28		1,500		1,737
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 11/1/12		4,000		4,065
5.00%, 11/1/12		1,335		1,357
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series A, Unrefunded Balance (NATL-RE Insured), Prerefunded, 5.00%, 11/1/12		1,415		1,438
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Subseries B, 5.00%, 11/1/35		2,070		2,317
San Francisco City & County Unified School District G.O. Unlimited Bonds, Series A, 4.00%, 6/15/23		3,090		3,411
4.00%, 6/15/28		500		525
San Francisco City & County Unified School District G.O. Unlimited Bonds, Series E, Election of 2006, 5.00%, 6/15/22		2,615		3,143
San Francisco City & County Unified School District G.O. Unlimited Refunding Bonds, 4.00%, 6/15/23		1,650		1,821
San Francisco State Building Authority Revenue Refunding Bonds, Series A, California State & San Francisco Civic Center (NATL-RE FGIC Insured), 5.00%, 12/1/15		2,000		2,244
San Gabriel Unified School District G.O. Unlimited Bonds, Series A, Unrefunded Balance (AGM Insured), 5.38%, 8/1/18		180		181
San Joaquin County Transportation Authority TRB, Series A, Limited Tax Measure K, 5.75%, 3/1/28		2,000		2,388
San Joaquin Hills Transportation Corridor Agency Capital Appreciation Revenue Bonds, Senior Lien, Escrowed to Maturity, 5.99%, 1/1/23(1)		5,000		3,896
San Jose Unified School District Santa Clara County G.O. Unlimited Refunding Bonds, 5.00%, 8/1/23		1,000		1,226
San Mateo County Community College District G.O. Unlimited Bonds, Series A, Election of 2001 (NATL-RE FGIC Insured), Prerefunded, 5.00%, 9/1/12		1,000		1,008
San Mateo County Transit District Refunding TRB, Series A (NATL-RE Insured), 4.75%, 6/1/28		3,785		4,109
San Mateo Union High School District G.O. Unlimited Capital Appreciation BANS, 1.35%, 2/15/15(1)		1,000		977
San Ramon Valley Unified School District G.O. Unlimited Refunding Bonds, 4.00%, 8/1/20(2)		1,000		1,159
Santa Ana Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, 5.50%, 8/1/30		2,000		2,221
Santa Clara Unified School District G.O. Unlimited Bonds, Election of 2004 (AGM Insured), 4.38%, 7/1/30		3,385		3,452

TAX-EXEMPT FIXED INCOME FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.9% continued
California - 96.8% continued
Santa Clara Unified School District G.O. Unlimited Bonds, Election of 2010, 3.00%, 7/1/20	$	1,000	$	1,098
4.50%, 7/1/32		2,000		2,153
Santa Clara Unified School District G.O. Unlimited Bonds, Series A, Election of 2004, 5.00%, 7/1/29		1,500		1,719
5.00%, 7/1/30		4,040		4,599
5.00%, 7/1/34		1,000		1,106
Santa Rosa Wastewater Revenue Bonds, Series A (AGM Insured), 5.25%, 9/1/27		1,255		1,396
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, 6.00%, 7/1/43		2,000		2,425
South Orange County Public Financing Authority Special Tax Refunding Bonds, Series A, Foothill Area (NATL-RE FGIC Insured), 5.25%, 8/15/14		1,295		1,399
5.25%, 8/15/18		2,500		2,675
Southern California Public Power Authority Revenue Bonds, Milford Wind Corridor Phase, 5.25%, 7/1/23		3,075		3,826
Southern California Public Power Authority Revenue Bonds, Milford Wind Corridor Project 1, 5.00%, 7/1/24		1,240		1,458
Southern California Public Power Authority Revenue Bonds, Series A, 5.00%, 7/1/29		1,765		2,005
Southern California Public Power Authority Revenue Bonds, Series A, Linden Wind Energy, 5.00%, 7/1/30		2,025		2,290
Southern California Public Power Authority Revenue Bonds, Windy Point/Windy Flats Project 1, 5.00%, 7/1/30		2,500		2,818
Southern California State Public Power Authority Capital Appreciation Subordinate Revenue Refunding Bonds, Southern Transmission Project, 7.86%, 7/1/14(1)		1,000		979
Southern California State Public Power Authority Revenue Bonds, 6.75%, 7/1/12		1,700		1,701
University of California Revenue Bonds, Series A, Limited Project (NATL-RE Insured), 4.75%, 5/15/26		1,580		1,601
University of California Revenue Bonds, Series C (NATL-RE Insured), Prerefunded, 4.75%, 5/15/13		5,000		5,248
4.75%, 5/15/13		2,850		2,992
University of California Revenue Bonds, Series F (AGM Insured), 4.75%, 5/15/24		200		209
Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, 5.25%, 8/1/27		2,125		2,346
Ventura County Community College District Capital Appreciation G.O. Unlimited Bonds, Series C, Election of 2002, 6.76%, 8/1/17(1)		1,615		1,437
7.34%, 8/1/18(1)		1,635		1,389
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election of 2002, 5.50%, 8/1/33		1,000		1,188
West Valley-Mission Community College District Capital Appreciation G.O. Unlimited Bonds, Series B, 4.56%, 8/1/16(1)		1,115		1,040
Western Riverside County Trust & Wastewater Finance Authority Revenue Bonds, Western Municipal Water Distribution Improvement Project (Assured Guaranty Insured), 5.13%, 9/1/29		1,645		1,816
				326,069
Puerto Rico - 1.1%
Puerto Rico Highway & Transportation Authority Subordinate Revenue Bonds (FGIC-TCRS Insured), 5.75%, 7/1/20		1,500		1,570
Puerto Rico Public Finance Corp. Revenue Bonds, Series E, Commonwealth Appropriation (AMBAC Insured), Escrowed to Maturity, 5.50%, 8/1/27		1,550		2,108
				3,678
Total Municipal Bonds (Cost $308,846)				329,747

NORTHERN FUNDS QUARTERLY REPORT     5    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 1.9%
Northern Funds - California Municipal
Money Market Fund(3) (4)		6,282,890	$	6,283
Total Investment Companies
(Cost $6,283)				6,283
Total Investments - 99.8%
(Cost $315,129)				336,030
Other Assets less Liabilities - 0.2%				701
NET ASSETS - 100.0%			$	336,731

(1) Zero coupon bond reflects effective yield on the date of purchase.

(2) When-Issued Security.

(3) Investment in affiliated Fund. Northern Trust Investments, Inc. is the investment adviser of the Fund.

(4) At March 31, 2012, the value of the Fund’s investment in the California Municipal Money Market Fund of the Northern Funds was approximately $3,307,000 with net purchases of approximately $2,976,000 during the three months ended June 30, 2012.

Percentages shown are based on Net Assets.

At June 30, 2012, the industry sectors for the California Intermediate Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Facilities		5.3	%
General		9.2
General Obligation		19.8
Higher Education		5.0
Power		9.3
School District		18.6
Water		12.2
All other sectors less than 5%		20.6
Total		100.0	%

At June 30, 2012, the credit quality distribution for the California Intermediate Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		5.7	%
AA		65.6
A		24.3
BBB		1.1
SP1+/MIG1		0.8
SP1/MIG1		0.1
Not Rated		0.5
Cash and Equivalents		1.9
Total		100.0	%

* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	315,151
Gross tax appreciation of investments	$	21,079
Gross tax depreciation of investments		(200	)
Net tax appreciation of investments	$	20,879

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued JUNE 30, 2012 (UNAUDITED)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the California Intermediate Tax-Exempt Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	329,747	(1)	$	—	$	329,747
Investment Companies		6,283		—			—		6,283
Total Investments	$	6,283	$	329,747		$	—	$	336,030

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes/zero coupon bonds, 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, the next interest reset/ puttable date for floating and variable rate 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 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.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

ACA - American Capital Access

AGM - Assured Guarantee Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimun Tax

BANS - Bond Anticipation Notes

COP - Certificate of Participation

FGIC - Financial Guaranty Insurance Corporation

FSA - Financial Security Assurance

GNMA - Government National Mortgage Association

G.O. - General Obligation

NATL-RE - National Public Finance Guarantee Corporation

TCRS - Transferable Custodial Receipts

TRB - Tax Revenue Bonds

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX - EXEMPT FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 98.2%
California - 97.3%
Alameda County Water District Financing Authority Water System Revenue Refunding Bonds,
3.25%, 6/1/33	$	1,050	$	1,019
Alhambra Unified School District Elementary Schools Improvement G.O. Unlimited Bonds, Series A, Election 2008 (Assured Guaranty Insured),
5.50%, 8/1/33		1,000		1,137
Brentwood Infrastructure Financing Authority Water Revenue Bonds,
5.75%, 7/1/38		3,595		4,017
Brentwood Union School District G.O. Unlimited Refunding Bonds,
3.50%, 8/1/26		1,205		1,209
3.63%, 8/1/27		1,485		1,494
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded,
5.00%, 8/1/27		1,500		1,609
California State Economic Recovery G.O. Unlimited Bonds, Series A (NATL-RE Insured), 5.00%, 7/1/12		1,035		1,035
California State G.O. Unlimited Refunding Bonds, 5.00%, 9/1/20		5,000		5,982
4.50%, 10/1/29		2,000		2,090
California State G.O. Unlimited Bonds, Unrefunded Balance, 5.13%, 6/1/24		25		25
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute, 5.75%, 7/1/30		250		250
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Broad Museum Project, 5.00%, 6/1/21		5,000		6,175
California State Public Works Board Lease Revenue Bonds, Series A, Department of General Services-Buildings 8 & 9, 6.00%, 4/1/25		1,400		1,631
California State Public Works Board Lease Revenue Refunding Bonds, Series B, Various Community College Project (AMBAC Insured), 5.63%, 3/1/16		960		963
California State University Revenue Bonds, Series A, Sacramento Auxiliary (NATL-RE Insured), Prerefunded, 5.50%, 10/1/12		500		507
5.50%, 10/1/12		500		507
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 10/1/20		5,000		5,988
5.25%, 3/1/30		3,500		3,995
5.00%, 8/1/35		1,000		1,054
California Statewide Communities Development Authority Revenue Bonds, Series A, Sutter Health Project, 5.00%, 8/15/23(1)		1,500		1,762
Chabot-Las Positas Community College District G.O. Unlimited Bonds, Series B, Election 2004 (AMBAC Insured), 5.00%, 8/1/30		850		912
Corona-Norco Unified School District G.O. Unlimited Bonds, Series C, Election 2006 (AGM Insured), 5.50%, 8/1/39		500		559
El Dorado Irrigation District COP, Series A (Assured Guaranty Insured), 6.25%, 8/1/29		1,500		1,655
Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election 2008, 5.38%, 8/1/44		3,500		4,013
Golden State Tobacco Securitization Corp. Enhanced Asset Backed Tobacco Settlement Revenue Bonds, Series A (AMBAC Insured), 5.00%, 6/1/21		2,000		2,002
Huntington Beach Union High School District G.O. Unlimited Bonds, Election 2004 (AGM Insured), 5.00%, 8/1/27		750		804
Los Angeles G.O. Unlimited TRANS, 2.50%, 8/12/12		5,000		5,013
Los Angeles G.O. Unlimited Refunding Bonds, Series B, 5.00%, 9/1/21		4,000		4,944
Los Angeles Harbor Department Revenue Bonds, Escrowed to Maturity, 7.60%, 10/1/18		30		36
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series A, 2.00%, 7/1/22		2,000		1,932

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX - EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 98.2% continued
California - 97.3% continued
Los Angeles Wastewater System Revenue Refunding Bonds, Subseries C, 5.00%, 6/1/25	$	5,000	$	5,941
Marin County COP, 4.25%, 8/1/34		1,575		1,626
Midpeninsula Regional Open Space District Finance Authority Revenue Bonds, 5.25%, 9/1/34		600		657
5.50%, 9/1/41		2,500		2,767
Modesto Irrigation District Capital Improvements COP, Series A, 5.75%, 10/1/29		1,500		1,695
6.00%, 10/1/39		2,000		2,259
New Haven Unified School District G.O. Unlimited Refunding Bonds (AGM Insured), 5.75%, 8/1/20		320		322
Newport Mesa Unified School District G.O. Unlimited CABS, Election 2005, 8.13%, 8/1/33(2)		10,000		3,678
Northern California Power Agency Revenue Refunding Bonds, Series A Hydroelectric Project No. 1, 5.00%, 7/1/26		1,500		1,733
Palomar Pomerado Health Convertible G.O. Unlimited CABS, Series A, Election of 2004 (Assured Guaranty Insured), 3.52%, 8/1/38(2)		5,000		4,084
Pasadena Unified School District G.O. Unlimited Bonds, Election 2008, 4.13%, 5/1/37(1)		1,000		1,005
Placentia-Yorba Linda Unified School District G.O. Unlimited Bonds, Series B, Election 2002 (NATL-RE FGIC Insured), 5.50%, 8/1/27		1,500		1,624
Rio Hondo Community College District G.O. Unlimited Bonds, Series B, Election 2009, 5.50%, 8/1/30		1,605		1,845
Ross Elementary School District G.O. Unlimited Bonds, Election 2006 (NATL-RE Insured), 5.25%, 8/1/27		850		929
San Diego County Water Authority COP, Series 2008 A (AGM Insured), 5.00%, 5/1/38		2,000		2,162
San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, 5.00%, 5/15/28		1,500		1,715
San Diego Unified School District G.O. Unlimited TRANS, 2.00%, 8/7/12		5,000		5,009
San Francisco City & County Public Utilities Commission Water Revenue Bonds, 5.00%, 11/1/37		1,645		1,823
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Subseries A, Water System Improvement Program, 5.00%, 11/1/28		3,000		3,475
San Francisco City & County G.O. Unlimited Bonds, Series A, Earthquake Safety & Emergency Project, 4.00%, 6/15/26		1,280		1,354
San Francisco City & County G.O. Unlimited Refunding Bonds, Series R1, 5.00%, 6/15/24		1,240		1,498
San Francisco City & County Public Utilities Commission Water Revenue Bonds, 5.00%, 11/1/35		2,000		2,239
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series B, 5.00%, 11/1/30		2,000		2,273
5.00%, 11/1/39		2,750		2,992
San Francisco City & County Public Utilities Commission Water Revenue Refunding Bonds, Series C, 4.00%, 11/1/31		3,000		3,061
San Francisco City & County Unified School District G.O. Unlimited Bonds, Series A, 4.00%, 6/15/28		500		525
San Francisco State Building Authority Lease Revenue Bonds, Series A, Department of General Services, 5.00%, 10/1/13		1,825		1,862
San Gabriel Unified School District G.O. Unlimited Bonds, Series A, Unrefunded Balance (AGM Insured), 5.38%, 8/1/19		200		201
5.38%, 8/1/20		225		226

TAX-EXEMPT FIXED INCOME FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 98.2% continued
California - 97.3% continued
San Joaquin County Transportation Authority Measure K Limited TRB, Series A, 5.25%, 3/1/31	$	1,275	$	1,460
San Mateo County Transit District Revenue Refunding Bonds, Series A (NATL-RE Insured), 4.75%, 6/1/28		1,000		1,086
Santa Clara Electric Revenue Refunding Bonds, Series A, 6.00%, 7/1/31		1,195		1,424
Santa Rosa Wastewater Revenue Refunding Bonds, Series A (NATL-RE FGIC Insured), 5.25%, 9/1/16		35		38
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election 2008, 6.00%, 7/1/43		2,025		2,455
Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, 6.00%, 7/1/27		2,520		3,089
Sunnyvale School District G.O. Unlimited Bonds, Series D, Election 2004, 4.00%, 9/1/42		2,790		2,777
Torrance Hospital Revenue Bonds, Series A, Torrance Memorial Medical Center, 6.00%, 6/1/22		500		502
Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election 2008, 5.25%, 8/1/27		2,500		2,760
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election 2002, 5.50%, 8/1/33		4,065		4,831
Vista Unified School District G.O. Unlimited Bonds, Series A, Unrefunded Balance (AGM Insured), 5.38%, 8/1/16		100		100
5.38%, 8/1/17		190		191
Walnut Valley Unified School District G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured), 7.20%, 2/1/16		630		646
Western Riverside County Trust & Wastewater Finance Authority Revenue Bonds, Municipal Water Distribution Improvement Project (Assured Guaranty Insured), 5.13%, 9/1/29		2,000		2,209
				148,467
Puerto Rico - 0.9%
Puerto Rico Public Finance Corp. Revenue Bonds, Class E, (CIFG-TCRS AGM-CR Insured), Escrowed to Maturity, 6.00%, 8/1/26		1,000		1,412
Total Municipal Bonds (Cost $138,268)				149,879
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 1.8%
Northern Funds - California Municipal Money Market Fund(3)(4)		2,712,033	$	2,712
Total Investment Companies (Cost $2,712)				2,712
Total Investments - 100.0% (Cost $140,980)				152,591
Other Assets less Liabilities - 0.0%				12
NET ASSETS - 100.0%			$	152,603

(1) When-Issued Security.

(2) Zero coupon bond reflects effective yield on the date of purchase.

(3) At March 31, 2012, the value of the Fund’s investment in the California Municipal Money Market Fund of the Northern Funds was approximately $14,186,000 with the net sales of approximately $11,474,000 during the three months June 30, 2012.

(4) Investment in affiliated Fund. Northern Trust Investments, Inc. is the investment adviser of the Fund.

Percentages shown are based on Net Assets.

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX-EXEMPT FUND continued

At June 30, 2012, the industry sectors for the California Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
General		8.8	%
General Obligation		30.3
School District		22.0
Utilities		5.3
Water		14.8
All other sectors less than 5%		18.8
Total		100.0	%

At June 30, 2012, the credit quality distribution for the CaliforniaTax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		1.3	%
AA		66.1
A		23.6
BBB		0.7
SP1+/MIG1		6.5
Cash and Equivalents		1.8
Total		100.0	%

* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	140,980
Gross tax appreciation of investments	$	11,795
Gross tax depreciation of investments		(184	)
Net tax appreciation of investments	$	11,611

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the California Tax-Exempt Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	149,879	(1)	$	—	$	149,879
Investment Companies		2,712		—			—		2,712
Total Investments	$	2,712	$	149,879		$	—	$	152,591

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes/zero coupon bonds, 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, the next interest reset/ puttable date for floating and variable rate 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 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.

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

CABS - Capital Appreciation Bonds

CIFG - IXIS Financial Guaranty

COP - Certificate of Participation

FGIC - Financial Guaranty Insurance Corporation

G.O. - General Obligation

NATL-RE - National Public Finance Guarantee Corporation

TCRS - Transferable Custodial Receipts

TRANS - Tax and Revenue Anticipation Notes

TRB - Tax Revenue Bonds

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.5%
Alabama - 2.1%
Alabama State Port Authority Docks Facilities Revenue Bonds, 6.00%, 10/1/40	$	5,000	$	5,669
Camden Industrial Development Board Exempt Facilities Revenue Refunding Bonds, Series A, Weyerhaeuser Company, Prerefunded, 6.13%, 12/1/13		1,000		1,081
Selma Industrial Development Board Gulf Opportunity Zone Revenue Bonds, International Paper Co., 5.80%, 5/1/34		1,350		1,477
				8,227
Arizona - 4.3%
Flagstaff IDA Revenue Refunding Bonds, Northern Arizona Senior Living Community, 5.70%, 7/1/42		3,000		2,836
Maricopa County Pollution Control Corporation PCR Refunding Bonds, Series A, Public Service Comapny of New Mexico, Palo Verde Project, 6.25%, 1/1/38		4,000		4,453
Phoenix Civic Improvement Corp. Airport Revenue, 5.00%, 7/1/40		5,000		5,357
Pima County IDA Revenue Bonds, Series A, Tucson Electric Power Co., 5.25%, 10/1/40		1,000		1,047
Pima County IDA Revenue Bonds, Tucson Electric Power Co., 5.75%, 9/1/29		3,000		3,180
				16,873
California - 9.2%
California State Educational Facilities Authority Revenue Bonds, Dominican University, 5.00%, 12/1/25		890		926
5.00%, 12/1/36		2,000		2,020
California State Municipal Finance Authority COP Revenue Bonds, Community Hospitals of Central California, 5.50%, 2/1/39		4,000		4,140
California State Municipal Finance Authority Revenue Bonds, Series A, University of La Verne, 6.13%, 6/1/30		3,300		3,709
6.25%, 6/1/40		1,000		1,116
California Statewide Communities Development Authority Revenue Bonds, California Baptist University, 7.25%, 11/1/31		2,000		2,388
California Statewide Communities Development Authority Revenue Bonds, Series A, California Baptist University, 5.50%, 11/1/38		2,000		2,038
Golden State Tobacco Securitization Corp. Tobacco Settlement Asset Backed Revenue Bonds, Senior Series A-1, 5.75%, 6/1/47		4,000		3,212
Golden State Tobacco Securitization Corp. Tobacco Settlement Asset Backed Revenue Bonds, Series A-5, Prerefunded, 7.88%, 6/1/13		500		534
San Francisco City & County Airports Commission Revenue Bonds, Series E, 6.00%, 5/1/39		5,000		5,802
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series B, 5.00%, 11/1/39		5,000		5,440
Tobacco Securitization Authority of Southern California Tobacco Settlement Revenue Bonds, Senior Series A1, 5.00%, 6/1/37		5,500		4,286
				35,611
Colorado - 3.6%
Denver City & County Airport System Revenue Bonds, Series A, 5.25%, 11/15/36		5,000		5,529
Prairie Center Metropolitan District No. 3 Limited Property Tax Supported Primary G.O. Limited Bonds, Series A, 5.40%, 12/15/31		4,000		3,856
Regional Transportation District Private Activity Revenue Bonds, Denver Transportation Partners, 6.00%, 1/15/41		4,000		4,489
				13,874
Connecticut - 0.7%
Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series G, Sacred Heart University, 5.13%, 7/1/26		1,250		1,363
5.38%, 7/1/31		1,250		1,368
				2,731

NORTHERN FUNDS QUARTERLY REPORT     1    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.5% continued
Delaware - 1.1%
Delaware State EDA Revenue Refunding Bonds, Gas Facilities Delmarva Power, 5.40%, 2/1/31	$	4,000	$	4,386
District of Columbia - 1.5%
District of Columbia Revenue Bonds, Cesar Chavez Charter Schools, 7.88%, 11/15/40		5,265		5,837
Florida - 5.5%
Broward County Airport Exempt Facility Revenue Bonds (AMT), Learjet, Inc. Project, 7.50%, 11/1/20		5,430		5,794
Capital Trust Agency Revenue Refunding Bonds, Series A, Air Cargo Aero Miami FX, 5.35%, 7/1/29		5,000		5,127
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 5.75%, 10/1/27		3,290		3,787
Jacksonville Economic Development Commission Health Care Facilities Revenue Refunding Bonds, Series A, Proton Therapy Institution, 6.00%, 9/1/17		2,145		2,440
Lee County IDA Revenue Bonds, Series A, Lee Charter Foundation, 5.25%, 6/15/27		2,250		2,264
5.38%, 6/15/37		2,000		1,966
Sterling Hill Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B, 5.50%, 11/1/10(1)		155		34
				21,412
Georgia - 1.5%
Atlanta Water & Wastewater Revenue Bonds, Series A, 6.25%, 11/1/39		5,000		5,902
Illinois - 6.7%
Illinois State Development Finance Authority PCR Refunding Bonds, Series C-1, Central Illinois Power, 5.95%, 8/15/26		3,000		3,006
Illinois State Finance Authority Revenue Bonds, Series A, Elmhurst Memorial, 5.63%, 1/1/37		4,000		4,215
Illinois State Finance Authority Revenue Bonds, Series A, Provena Health, 7.75%, 8/15/34		3,500		4,480
Illinois State Finance Authority Revenue Bonds, Series A, Three Crowns Park Plaza, 5.88%, 2/15/38		4,000		4,048
Illinois State Finance Authority Revenue Bonds, Silver Cross & Medical Centers, 6.88%, 8/15/38		3,000		3,423
7.00%, 8/15/44		2,000		2,284
Railsplitter Tobacco Settlement Authority Revenue Bonds, 5.50%, 6/1/23		1,000		1,149
6.00%, 6/1/28		3,000		3,470
				26,075
Indiana - 5.4%
Indiana Finance Authority Midwestern Disaster Relief Revenue Bonds, Series A, Ohio Valley Electric Corp. Project, 5.00%, 6/1/39		2,000		2,028
Indiana State Finance Authority Educational Facilities Revenue Bonds, Marian University Project, 6.50%, 9/15/30		3,000		3,314
6.38%, 9/15/41		2,000		2,150
Indiana State Finance Authority Environmental Variable Revenue Bonds, Series B, Duke Energy Project, 6.00%, 8/1/39		2,000		2,250
Indiana State Municipal Power Agency Revenue Bonds, Series B, 6.00%, 1/1/39		2,000		2,313
North Manchester Revenue Bonds, Series A, Peabody Retirement Community Project, 7.25%, 7/1/33(1)		750		240
Rockport PCR Refunding Bonds, Series B, Indiana Michigan Power Co. Project, 6.25%, Mandatory Put 6/2/14		3,265		3,555
Vigo County Hospital Authority Revenue Bonds, Union Hospital, Inc., 5.70%, 9/1/37(2)		2,000		2,019
8.00%, 9/1/41		2,500		3,035
				20,904
Louisiana - 6.6%
Louisiana State Gas & Fuels TRB, Series B, Second Lien, 5.00%, 5/1/39		5,000		5,589

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.5% continued
Louisiana - 6.6% continued
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Westlake Chemical Corp., 6.50%, 8/1/29	$	2,000	$	2,305
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Woman’s Hospital Foundation, 5.88%, 10/1/40		4,000		4,447
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A-1, Westlake Chemical Corp., 6.50%, 11/1/35		2,000		2,291
Louisiana State Public Facilities Authority Revenue Bonds, Belle Chasse Educational Foundation Project, 6.75%, 5/1/41		1,250		1,422
New Orleans Aviation Board Passenger Facility Charge Gulf Opportunity Zone Revenue Bonds, Series A, 5.25%, 1/1/41		5,000		5,364
St. John The Baptist Parish Revenue Bonds, Series A, Marathon Oil Corp., 5.13%, 6/1/37		4,000		4,179
				25,597
Maine - 1.5%
Maine State Health & Higher Educational Facilities Authority Revenue Bonds, Maine General Medical Center, 7.50%, 7/1/32		2,000		2,405
6.75%, 7/1/41		3,000		3,409
				5,814
Maryland - 5.2%
Anne Arundel County Special Obligation Tax Allocation Bonds, National Business Park-North Project, 6.10%, 7/1/40		4,335		4,533
Maryland State Economic Development Corp. Student Housing Revenue Bonds, University of Maryland College Park Project, Prerefunded, 5.63%, 6/1/13		1,000		1,049
Maryland State G.O. Unlimited Refunding Bonds, Series C, State & Local Facilities Loan, 5.00%, 11/1/18		6,000		7,409
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Doctors Community Hospital, 5.75%, 7/1/38		3,000		3,224
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series A, Adventist Healthcare, 6.25%, 1/1/31		1,500		1,744
6.13%, 1/1/36		2,000		2,257
				20,216
Massachusetts - 1.6%
Massachusetts Bay Transportation Authority Sales TRB, Senior Series A, 5.00%, 7/1/28		5,000		6,270
Michigan - 1.1%
Royal Oak Hospital Finance Authority Revenue Bonds, William Beaumont Hospital, 8.25%, 9/1/39		2,000		2,557
Royal Oak Hospital Finance Authority Revenue Refunding Bonds, Series W, William Beaumont Hospital, 6.00%, 8/1/39		1,500		1,680
				4,237
Minnesota - 1.2%
Duluth EDA Health Care Facilities Revenue Bonds, St. Luke’s Hospital, 7.25%, 6/15/32		750		758
Rochester Healthcare & Housing Revenue Refunding Bonds, Series A, Samaritan Bethany, 7.38%, 12/1/41		3,500		3,872
				4,630
Mississippi - 0.7%
Warren Country Gulf Opportunity Zone Revenue Bonds, Series A, International Paper Co., 5.80%, 5/1/34		2,530		2,767
Missouri - 2.0%
Grundy County IDA Health Facilities Revenue Bonds, Wright Memorial Hospital, 6.45%, 9/1/29		2,530		2,870
6.75%, 9/1/34		1,750		1,961

NORTHERN FUNDS QUARTERLY REPORT     3    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.5% continued
Missouri - 2.0% continued
St. Louis County IDA Senior Living Facilities Revenue Bonds, Series A, St. Andrews Resources for Seniors, 6.38%, 12/1/41	$	3,005	$	3,090
				7,921
Montana - 1.1%
Forsyth PCR Refunding Bonds, Series A, Portland General Electric Co., 5.00%, 5/1/33		4,000		4,431
New Jersey - 4.0%
New Jersey State EDA Revenue Bonds, MSU Student Housing Project - Provident Group - Montclair LLC, 5.88%, 6/1/42		4,000		4,413
New Jersey State EDA Revenue Bonds, Cigarette Tax, Prerefunded,, 5.75%, 6/15/14		5,500		6,078
New Jersey State Health Care Facilities Financing Authority Revenue Bonds, St. Joseph’s Healthcare System, 6.63%, 7/1/38		4,000		4,640
Tobacco Settlement Financing Corp. Revenue Bonds, Prerefunded, 6.75%, 6/1/13		500		529
				15,660
New Mexico - 1.9%
New Mexico State G.O. Unlimited Bonds, Capital Projects, 5.00%, 3/1/18		6,000		7,294
New York - 2.7%
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Orange Regional Medical Center, 6.13%, 12/1/29		3,235		3,504
6.25%, 12/1/37		2,000		2,143
New York State Environmental Facilities Corp. Clean Water & Drinking Revenue Bonds, Series A, 5.25%, 6/15/27		4,000		4,845
New York State Liberty Development Corp. Revenue Bonds, Series A, National Sports Museum Project, 6.13%, 2/15/19(1)		2,200		—
				10,492
North Carolina - 2.1%
North Carolina State Capital Facilities Finance Agency Revenue Bonds, Series B, Duke University Project, 5.00%, 10/1/38		5,000		5,668
North Carolina State Medical Care Commission Health Care Facilities Revenue Bonds, Series A, First Mortgage Deerfield Episcopal Community, 6.13%, 11/1/38		2,000		2,156
North Carolina State Municipal Power Agency No. 1 Catawba Electric Revenue Bonds, Series A, Escrowed to Maturity, 5.50%, 1/1/13		320		328
				8,152
Ohio - 6.5%
American Municipal Power-Ohio, Inc. Revenue Bonds, Series A, Prairie State Energy Campus Project, 5.25%, 2/15/25		4,000		4,532
Lucas County Health Care Facilities Revenue Refunding & Improvement Bonds, Series A, Lutheran Homes, 7.00%, 11/1/45		5,000		5,446
Ohio State Air Quality Development Authority Revenue Bonds, Series E, Ohio Valley Electric Corp., 5.63%, 10/1/19		4,000		4,617
Ohio State Air Quality Development Authority Revenue Refunding Bonds, Series B, Columbus Southern Power Co., 5.80%, 12/1/38		4,000		4,526
Toledo-Lucas County Port Authority Revenue Refunding Bonds, CSX Transportation, Inc. Project, 6.45%, 12/15/21		5,075		6,298
				25,419
Pennsylvania - 4.5%
Allegheny County Hospital Development Authority Revenue Bonds, Series A, West Penn Allegheny Health System, 5.00%, 11/15/28		4,000		3,379
Allegheny County Redevelopment Authority Tax Allocation Bonds, Pittsburgh Mills Project, 5.60%, 7/1/23		2,000		1,952
Butler County Hospital Authority Revenue Bonds, Butler Health System Project, 7.13%, 7/1/29		3,000		3,684

TAX-EXEMPT FIXED INCOME FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 97.5% continued
Pennsylvania - 4.5% continued
Lancaster County Hospital Authority Revenue Bonds, Series A, Brethren Village Project, 6.50%, 7/1/40	$	1,450	$	1,536
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Edinboro University Foundation, 5.88%, 7/1/38		1,400		1,509
6.00%, 7/1/43		2,500		2,760
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Shippensburg University, 6.25%, 10/1/43		2,000		2,195
Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue Bonds, Series A, Student Association Inc. Project at California University of Pennsylvania, 6.75%, 9/1/32		490		491
				17,506
Rhode Island - 0.8%
Tobacco Settlement Financing Corp. Asset Backed Revenue Bonds, Series A, 6.25%, 6/1/42		3,000		3,066
Tennessee - 0.0%
Sumner County Health Educational & Housing Facilities Board Revenue Refunding & Improvement Bonds, Series A, Regional Health Systems, Inc., 5.50%, 11/1/37(1)		174		2
Texas - 8.6%
Comal County Health Facilities Development Corp. Revenue Bonds, Series A, McKenna Memorial Project, Prerefunded, 6.13%, 2/1/13		3,000		3,101
Dallas County Flood Control District No. 1 G.O. Unlimited Refunding Bonds, 7.25%, 4/1/32		1,000		1,017
HFDC of Central Texas, Inc. Retirement Facilities Revenue Bonds, Series A, Legacy at Willow Bend Project, 5.75%, 11/1/36		3,000		2,912
Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, LBJ Infrastructure, 7.00%, 6/30/40		5,000		5,975
Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, NTE Mobility, 6.88%, 12/31/39		4,000		4,710
Texas State Public Finance Authority Charter School Finance Corp. Revenue Bonds, Series A, Cosmos Foundation, Inc., 6.20%, 2/15/40		5,000		5,646
Travis County Health Facilities Development Corp. Revenue Bonds, Westminster Manor Project, 7.00%, 11/1/30		1,000		1,149
7.13%, 11/1/40		2,000		2,283
University of Texas Permanent University Fund Revenue Refunding Bonds, Series B, 5.25%, 7/1/28		5,000		6,585
				33,378
Virginia - 0.4%
Virginia State Small Business Financing Authority Senior Lein Revenue Bonds, (AMT) Elizabeth River Crossings, 6.00%, 1/1/37		1,500		1,649
Washington - 3.4%
Pend Oreille County Public Utility District No. 1 Box Canyon Revenue Bonds, 5.25%, 1/1/41		5,000		5,256
Washington State Health Care Facilities Authority Revenue Bonds, Central Washington Health Services, 7.00%, 7/1/39		4,000		4,596
Washington State Health Care Facilities Authority Revenue Bonds, Kadlec Regional Medical Center, 5.50%, 12/1/39		3,000		3,167
				13,019
Total Municipal Bonds (Cost $342,171)				379,352

NORTHERN FUNDS QUARTERLY REPORT     5    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 0.6%
Northern Institutional Funds - Tax-Exempt Portfolio(3) (4)		2,423,003	$	2,423
Total Investment Companies (Cost $2,423)				2,423
Total Investments - 98.1% (Cost $344,594)				381,775
Other Assets less Liabilities - 1.9%				7,332
NET ASSETS - 100.0%			$	389,107

(1) Issuer has defaulted on terms of debt obligation.

(2) 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.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(4) At March 31, 2012, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $2,994,000 with net sales of approximately $571,000 during the three months ended June 30, 2012.

Percentages shown are based on Net Assets.

At June 30, 2012, the industry sectors for the High Yield Municipal Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Airport		7.3	%
Development		13.8
Education		5.2
General		7.9
Higher Education		10.4
Medical		18.9
Nursing Homes		6.3
Pollution		6.1
Transportation		5.5
All other sectors less than 5%		18.6
Total		100.0	%

At June 30, 2012, the credit quality distribution for the High Yield Municipal Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		10.6	%
AA		5.5
A		18.8
BBB		43.4
BB		8.6
B		0.9
Not rated		11.6
Cash and Equivalents		0.6
Total		100.0	%

* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	344,594
Gross tax appreciation of investments	$	40,535
Gross tax depreciation of investments		(3,354	)
Net tax appreciation of investments	$	37,181

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Valuations based on inputs that are unobservable and significant. The Fund utilized the following techniques on Level 3 investments: The Fund valued certain securities using prices provided by NTGI PVC.

TAX-EXEMPT FIXED INCOME FUNDS     6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued JUNE 30, 2012 (UNAUDITED)

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the High Yield Municipal Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	379,318	(1)	$	34	$	379,352
Investment Companies		2,423		—			—		2,423
Total Investments	$	2,423	$	379,318		$	34	$	381,775

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were transfers between Level 2 and Level 3 based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	BALANCE AS OF 3/31/12 (000S)		REALIZED GAINS (000S)		REALIZED LOSSES (000S)		CHANGE IN UNREALIZED APPRECIATION (000S)		CHANGE IN UNREALIZED DEPRECIATION (000S)		PURCHASES (000S)		SALES (000S)		TRANSFERS INTO LEVEL 3 (000S) (1)		TRANSFERS OUT OF OF LEVEL 3 (000S)		BALANCE AS OF 6/30/12 (000S)
Municipal Bonds	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	34	$	—	$	34

(1) Transfers into Level 3 due to security being valued by NTGI PVC.

The amount of unrealized appreciation (depreciation) on investments in Level 3 securities still held at June 30, 2012 was $(4).

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AMT - Alternative Minimum Tax

COP - Certificate of Participation

EDA - Economic Development Authority

G.O. - General Obligation

IDA - Industrial Development Authority

PCR - Pollution Control Revenue

TRB - Tax Revenue Bonds

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes/zero coupon bonds, 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, the next interest reset/ puttable date for floating and variable rate 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 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.

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8%
Arizona - 4.0%
Arizona State School Facilities Board COPS, 5.25%, 9/1/23	$	10,000	$	11,289
Arizona State Transportation Board Excise TRB, Maricopa County Regional Area Road Project, 5.00%, 7/1/15		5,000		5,654
5.25%, 7/1/20		10,000		12,361
Arizona State Water Infrastructure Finance Authority Revenue Refunding Bonds, Series A, 5.00%, 10/1/22		6,750		8,499
5.00%, 10/1/24		4,000		4,916
Maricopa County Unified School District No. 97 Deer Valley G.O. Unlimited Bonds, Series C, School Improvement Project of 2008, 5.00%, 7/1/22		4,150		5,013
Mesa Utility System Revenue Refunding Bonds (NATL-RE FGIC Insured), 5.00%, 7/1/19		6,500		7,880
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series A, Junior Lien, 5.00%, 7/1/22		3,000		3,460
Phoenix Civic Improvement Corp. Excise TRB, Sub Series A (BHAC-CR FGIC Insured), 5.00%, 7/1/41		5,000		5,310
Phoenix Civic Improvement Corp. Wastewater System Revenue Refunding Bonds, Series B, Senior Lien (NATL-RE Insured), 5.00%, 7/1/13		5,000		5,239
Phoenix Civic Improvement Corp. Water System Revenue Refunding Bonds, Junior Lien, 5.00%, 7/1/25		5,000		5,965
Salt River Project Agricultural Improvement & Power District Electric Revenue Refunding Bonds, Series A, 5.00%, 12/1/23		5,000		6,131
Scottsdale Preservation Authority Excise Tax Revenue Refunding Bonds, 5.25%, 7/1/24		5,990		7,107
				88,824
California - 6.7%
Alvord Unified School District G.O. Unlimited Refunding Bonds, Series A (AGM-CR NATL-RE Insured), 5.90%, 8/1/30		2,450		3,077
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded, 5.00%, 8/1/27		5,000		5,363
California State Department of Veterans Affairs Home Purchase Revenue Bonds, Series A, 3.15%, 12/1/22		5,000		5,139
California State Department of Water Resources Supply Revenue Bonds, Series L, 5.00%, 5/1/18		300		363
California State G.O. Unlimited Refunding Bonds, 5.00%, 9/1/20		1,000		1,196
5.00%, 2/1/26		10,000		11,395
6.25%, 11/1/34		5,000		6,005
California State G.O. Unlimited Bonds, Series 2007, Unrefunded Balance (AMBAC Insured), 5.00%, 10/1/18		75		75
California State Various G.O. Unlimited Bonds, Series 2007, Unrefunded Balance, 5.75%, 5/1/30		135		135
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 4/1/42		12,250		13,027
Carlsbad Unified School District Convertible Capital Appreciation G.O. Unlimited Bonds, Series C, Electric Project, 6.92%, 8/1/35(1)		11,850		6,904
Colton Joint Unified School District G.O. Unlimited Bonds, Series A (NATL-RE FGIC Insured), 5.38%, 8/1/26		2,500		2,562
Long Beach Harbor Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured), 5.00%, 5/15/21		1,000		1,091
Long Beach Unified School District G.O. Unlimited Bonds, Series F, Election 1999 (NATL-RE Insured), Prerefunded, 5.00%, 8/1/12		2,230		2,262
Los Angeles County Sanitation Districts Financing Authority Revenue Bonds, Series A, Capital Project (AGM Insured), Partially Prerefunded, 5.00%, 10/1/21		4,000		4,216

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
California - 6.7% continued
Los Angeles Department of Airports Revenue Bonds, Series A, 5.25%, 5/15/22	$	5,000	$	5,960
Los Angeles Department of Power & Waterworks Revenue Bonds, Series A, 5.00%, 7/1/43		10,120		11,310
Los Angeles G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 9/1/12		5,000		5,041
5.00%, 9/1/14		6,205		6,832
Los Angeles G.O. Unlimited TRANS, 2.50%, 8/12/12		12,150		12,183
Menlo Park G.O. Unlimited Bonds, Prerefunded, 5.25%, 8/1/12		1,000		1,014
Metropolitan Water District of Southern California Revenue Bonds, Series A, 5.00%, 7/1/32		5,000		5,644
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series B, 2.00%, 7/1/12		5,000		5,000
San Francisco City & County Airports Commission Revenue Bonds, Series E, 5.25%, 5/1/32		2,500		2,812
San Francisco City & County Public Utilities Commission Water Revenue Bonds, 5.00%, 11/1/43		10,000		11,020
San Mateo Union High School District G.O. Unlimited Capital Appreciation BANS, 1.35%, 2/15/15(1)		3,250		3,174
Sequoia Union High School District G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 7/1/22		1,100		1,211
Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, 6.00%, 7/1/27		5,000		6,130
University of California General Revenue Bonds, Series Q, 5.25%, 5/15/27		2,500		2,910
University of California General Revenue Bonds, Series U, 5.00%, 5/15/22		5,000		6,030
				149,081
Colorado - 1.7%
Adams & Arapahoe County Joint School District No. 28J Aurora G.O. Unlimited Refunding Bonds (State Aid Withholding), 5.00%, 12/1/23		4,000		4,994
Colorado Springs Co. Utilities System Revenue Refunding Bonds, Series B, 5.00%, 11/15/25		2,500		3,021
Denver City & County Excise Tax Revenue Refunding Bonds, Series A (Assured Guaranty Insured), 6.00%, 9/1/23		5,550		6,813
Denver City & County School District No. 1 G.O. Unlimited Refunding Bonds, Series A (NATL-RE FGIC Insured State Aid Withholding), 5.50%, 12/1/22		5,000		6,517
Douglas County School District No. Re-1 G.O. Unlimited Capital Appreciation Refunding Bonds, Douglas & Elbert Counties (State Aid Withholding), 3.77%, 12/15/22(1)		1,660		1,237
4.06%, 12/15/23(1)		2,105		1,493
Mesa County Valley School District No. 51 G.O. Unlimited Refunding Bonds, Grand Junction (State Aid Withholding), 5.00%, 12/1/23		5,000		6,182
Metro Wastewater Reclamation District Sewer Revenue Bonds, Series A, 5.00%, 4/1/21		2,500		3,139
University of Colorado Enterprise Revenue Refunding Bonds, Series A-1, 5.00%, 6/1/28		3,000		3,554
				36,950
Connecticut - 1.7%
Connecticut State G.O. Unlimited Bonds, Series D, 5.00%, 11/1/23		7,500		9,152
5.00%, 11/1/25		10,000		11,986
Connecticut State G.O. Unlimited Refunding Bonds, Series B (NATL-RE Insured), 5.00%, 6/1/15		5,000		5,420
Connecticut State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 12/1/21		5,000		6,013

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
Connecticut - 1.7% continued
Connecticut State Housing Finance Authority Housing Mortgage Finance Program Revenue Bonds, Sub Series D-1, 0.75%, 5/15/14	$	6,350	$	6,354
				38,925
Delaware - 0.3%
Delaware State G.O. Unlimited Bonds, 5.00%, 7/1/23		5,530		6,749
District of Columbia - 1.7%
District of Columbia Income Tax Secured Revenue Refunding Bonds, Series A, 5.00%, 12/1/23		10,000		12,433
District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, 5.25%, 10/1/29		1,000		1,162
6.00%, 10/1/35		5,000		6,062
5.50%, 10/1/39		10,500		12,084
Metropolitan Washington Airports Authority System Revenue Bonds, Series C (AMT), 5.00%, 10/1/20		3,000		3,514
5.00%, 10/1/26		1,500		1,679
				36,934
Florida - 4.9%
Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 9/1/24		5,000		5,665
5.00%, 9/1/25		1,000		1,122
Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT), 5.00%, 9/1/23		2,500		2,708
Citizens Property Insurance Corp. Senior Secured Revenue Bonds, Series A-1, 5.00%, 6/1/21		10,000		11,181
Florida State Board of Public Education G.O. Unlimited Bonds, Series A, 5.25%, 6/1/28		11,135		12,787
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series A, Capital Outlay, 2.50%, 6/1/22		375		384
3.00%, 6/1/23		10,000		10,366
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series B, Capital Outlay, 2.25%, 6/1/22		3,000		3,008
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series D, 5.00%, 6/1/24		5,000		5,978
Florida State Department of Transportation Right of Way G.O. Unlimited Bonds, 5.25%, 7/1/37		12,475		14,339
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, 5.00%, 7/1/15		1,000		1,114
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 5.25%, 10/1/19		5,000		5,993
Florida State Ports Financing Commission Revenue Refunding Bonds, Series B (AMT), State Transportation Trust Fund, 5.00%, 6/1/18		2,765		3,187
5.38%, 10/1/29		3,395		3,831
Gainesville Utilities System Revenue Bonds, Series A, Prerefunded, 5.25%, 10/1/13		1,120		1,190
5.25%, 10/1/13		1,065		1,131
Jacksonville Transit Revenue Refunding Bonds, Series A, 5.00%, 10/1/26		2,300		2,620
Marco Island Utility System Revenue Bonds (NATL-RE Insured), Prerefunded, 5.25%, 10/1/13		2,520		2,676
Miami-Dade County Aviation Revenue Bonds (AMT), Miami International Airport (NATL-RE FGIC Insured), 5.75%, 10/1/20		1,950		1,966
Miami-Dade County Expressway Authority Toll System Revenue Bonds, Series B (NATL-RE FGIC Insured), 5.25%, 7/1/25		2,525		2,710
Miami-Dade County Water & Sewer System Revenue Refunding Bonds, Series B (AGM Insured), 5.25%, 10/1/20		3,000		3,700
5.25%, 10/1/22		2,500		3,127
Osceola County Infrastructure Sales Surtax Revenue Bonds (AMBAC Insured), Prerefunded, 5.38%, 10/1/12		1,000		1,013

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
Florida - 4.9% continued
Palm Coast Utility System Revenue Bonds (NATL-RE Insured), 5.25%, 10/1/21	$	1,000	$	1,045
South Florida State Water Management District Special Obligation Revenue Refunding Bonds (AMBAC Insured), 5.25%, 10/1/13		1,250		1,318
Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.50%, 10/1/15		5,840		6,275
				110,434
Georgia - 1.3%
Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, 5.50%, 1/1/38		10,000		11,223
Atlanta Airport Revenue Bonds, Series B, 5.00%, 1/1/34		3,065		3,379
Georgia State G.O. Unlimited Refunding Bonds, Series I, 5.00%, 7/1/20		10,000		12,601
5.00%, 7/1/21		1,100		1,400
Metropolitan Atlanta Rapid Transit Authority Revenue Refunding Bonds, Series A, Third Indenture, 4.00%, 7/1/40		1,500		1,487
				30,090
Hawaii - 0.1%
Hawaii State Airports System Revenue Bonds, Series A, 5.25%, 7/1/29		2,000		2,241
Illinois - 4.6%
Chicago Midway Airport Revenue Bonds, Series B (AGM Insured), 5.38%, 1/1/18		2,625		2,633
5.38%, 1/1/19		2,765		2,774
5.25%, 1/1/20		2,915		2,924
Chicago Midway Airport Revenue Bonds, Series B (NATL-RE Insured), 5.00%, 1/1/31		2,000		2,005
Chicago O’Hare International Airport General Revenue Bonds, Series A, Third Lien (NATL-RE Insured), 5.25%, 1/1/26		5,000		5,394
Chicago O’Hare International Airport General Revenue Refunding Bonds (AMT), Second Lien (AMBAC Insured), 5.50%, 1/1/18		10,000		10,029
Chicago Sales TRB, Series A, 5.25%, 1/1/38		6,100		6,842
Glenview G.O. Unlimited Refunding Bonds, Series A, 3.00%, 12/1/19		2,150		2,292
3.00%, 12/1/20		1,500		1,584
Illinois State Build Sales TRB, 5.00%, 6/15/19		5,000		6,010
Illinois State Educational Facilities Authority Adjustable Medium Term Revenue Bonds, Field Museum, 4.60%, Mandatory Put 11/1/15		4,250		4,645
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, 5.25%, 3/1/40		2,500		2,744
Illinois State Municipal Electric Agency Power Supply Revenue Bonds (NATL-RE FGIC Insured), 5.00%, 2/1/25		2,000		2,135
Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL-RE-IBC-FGIC Insured), 5.25%, 2/1/27		1,830		2,026
Illinois State Sales TRB, 5.25%, 6/15/23		9,735		10,166
Illinois State Toll Highway Authority Senior Priority Revenue Bonds, Series A, 4.13%, 1/1/20		5,000		5,305
Illinois State Toll Highway Authority Senior Priority Revenue Bonds, Series A (AGM Insured), 5.00%, 1/1/18		5,000		5,592
Kendall Kane & Will Counties Community Unit School District No. 308 G.O. Unlimited Bonds, Series A, 5.00%, 2/1/29		11,770		13,089
4.50%, 2/1/30		1,150		1,194
Lake County Community Consolidated School District No. 46 Grayslake G.O. Unlimited Bonds (AGM Insured), 5.13%, 11/1/24		1,000		1,125
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series A, McCormick Place Expansion (NATL-RE FGIC Insured), 5.50%, 6/15/29		2,000		2,367

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
Illinois - 4.6% continued
Metropolitan Pier & Exposition Authority Revenue Bonds, Series B, McCormick Place Project, 5.00%, 6/15/52(2)	$	10,000	$	10,512
				103,387
Indiana - 1.3%
Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien, CWA Authority, 5.25%, 10/1/31		5,750		6,613
5.25%, 10/1/38		3,500		3,937
Indiana State Municipal Power Agency Revenue Bonds, Series A, Power Supply System (AMBAC Insured), 5.00%, 1/1/24		13,060		14,140
Merrillville Multi School Building Corp. First Mortgage Revenue Bonds (State Aid Withholding), 5.25%, 7/15/26		1,000		1,102
Porter County Jail Building Corp. First Mortgage Revenue Refunding Bonds (AGM Insured), 5.50%, 7/10/21		1,000		1,198
5.50%, 1/10/24		1,135		1,367
				28,357
Iowa - 0.4%
Ankeny G.O. Unlimited BANS, Series B, Anticipation Project Notes, 1.50%, 6/1/13		4,250		4,253
Ankeny G.O. Unlimited Bonds, Series C, Anticipation Project Notes, 1.00%, 6/1/14		2,000		2,009
Cedar Rapids Community School District Infrastructure Sales Revenue Bonds, 4.50%, 7/1/24		3,200		3,508
				9,770
Kansas - 0.8%
Wichita G.O. Unlimited Bonds and Temporary Notes, Series 248, Renewal & Improvement Project, 0.30%, 8/15/13		11,500		11,501
Wichita G.O. Unlimited Refunding Bonds, Series B, 3.00%, 9/1/12		3,195		3,210
Wichita Water & Sewer Utility Revenue Bonds (NATL-RE FGIC Insured), Prerefunded, 5.25%, 10/1/13		4,000		4,248
				18,959
Kentucky - 0.2%
Kentucky State Rural Water Finance Corp. Public Project Construction Revenue Notes, Series D-2011-1, 1.25%, 11/1/12		5,000		5,012
Louisiana - 2.9%
Louisiana State G.O. Unlimited Bonds, Series A, 5.00%, 8/1/22		6,000		7,555
Louisiana State G.O. Unlimited Refunding Bonds, Series A, 5.00%, 11/15/18		2,000		2,444
Louisiana State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 7/15/21		10,000		12,463
5.00%, 7/15/22		15,000		18,877
5.00%, 7/15/24		10,000		12,178
Louisiana State Gas & Fuels Taxable Revenue Refunding Bonds, Series A-1, 5.00%, 5/1/25		5,000		6,026
Louisiana State Gas & Fuels TRB, Series A (AGM Insured), 5.00%, 5/1/31		5,000		5,500
				65,043
Maine - 0.2%
Maine State Municipal Bank Revenue Bonds, Series C (G.O. of Bond Bank Insured), Prerefunded, 5.20%, 11/1/22		5,000		5,085
Maryland - 2.6%
Frederick County Public Facilities G.O. Unlimited Bonds, Series A, 5.00%, 8/1/20		2,300		2,878
Maryland State Department of Transportation Consolidated Revenue Bonds, 5.00%, 6/1/21		8,630		10,670
Maryland State G.O. Unlimited Bonds, First Series B, 4.50%, 3/15/24		10,000		11,731

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
Maryland - 2.6% continued
Maryland State G.O. Unlimited Bonds, Series B, 5.00%, 8/1/21	$	10,000	$	12,256
Maryland State Local Facilities Loan G.O. Unlimited Bonds, First Series B, 3.00%, 3/15/23		5,000		5,295
Maryland State Local Facilities Loan G.O. Unlimited Bonds, First Series C, 4.00%, 8/15/21		5,000		5,944
Montgomery County G.O. Unlimited Consolidated Public Improvement Bonds, Series A, 4.00%, 7/1/28		7,000		7,596
University System of Maryland Auxilary Facility and Tuition Revenue Bonds, Series A, 4.00%, 4/1/25		1,050		1,165
				57,535
Massachusetts - 6.1%
Massachusetts Bay Transportation Authority Assessment Revenue Bonds, Series A, 5.25%, 7/1/34		500		580
Massachusetts Bay Transportation Authority Sales TRB, Senior Series A, 5.25%, 7/1/28		1,500		1,926
Massachusetts State Consolidated Loan G.O. Limited Bonds, Build America Bonds, 5.31%, 1/1/30		500		604
Massachusetts State Development Finance Agency Revenue Bonds, Series B-1, Harvard University, 5.00%, 10/15/28		10,000		11,887
Massachusetts State G.O. Limited Bonds, Series B, 5.25%, 8/1/28		5,000		6,442
Massachusetts State G.O. Limited Bonds, Series B, Consolidated Loan, 3.00%, 8/1/12		5,750		5,764
Massachusetts State G.O. Limited Bonds, Series D, Consolidated Loan, 5.00%, 10/1/22		5,375		6,659
Massachusetts State G.O. Limited Refunding Bonds, Series B, 5.25%, 8/1/21		2,500		3,182
Massachusetts State G.O. Limited Refunding Bonds, Series B (AGM Insured), 5.25%, 9/1/25		500		644
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series J1, Partners Healthcare System, 5.25%, 7/1/29		5,000		5,622
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series M, TUFTS University, 5.25%, 2/15/26		1,250		1,585
Massachusetts State Health & Educational Facilities Authority Revenue VRDB, Series Y, Harvard University Issue, 0.13%, 4/2/12		10,000		10,000
Massachusetts State School Building Authority Sales Refunding TRB, Senior Series A, 5.00%, 8/15/21(2)		15,000		18,700
5.00%, 8/15/22(2)		5,000		6,293
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), 5.00%, 8/15/30		10,025		11,067
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), Prerefunded, 5.00%, 8/15/15		10,000		11,412
Massachusetts State School Building Authority Sales TRB, Series A (AMBAC Insured), 5.00%, 8/15/37		5,000		5,518
Massachusetts State Special Obligation Revenue Bonds, Series A, Consolidated Loan (AGM Insured), 5.50%, 6/1/18		500		620
5.50%, 6/1/21		500		644
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Series 14, State Revolving Fund, 5.00%, 8/1/17		1,470		1,773
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Sub Series 16-B, State Revolving Fund, 3.00%, 8/1/13		6,500		6,697
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, Sub Series A, New Bedford Program (NATL-RE FGIC Insured), 4.75%, 2/1/26		1,555		1,560

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
Massachusetts - 6.1% continued
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B (AGM Insured), 5.25%, 8/1/30	$	1,500	$	1,927
5.25%, 8/1/31		5,000		6,406
5.25%, 8/1/32		1,000		1,288
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B (G.O. of Authority Insured), 5.00%, 8/1/26		5,000		5,892
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B, (AGM Insured), 5.25%, 8/1/28		1,000		1,282
				135,974
Michigan - 1.7%
Caledonia Community Schools G.O. Unlimited Refunding Bonds (NATL-RE Q-SBLF Insured), 5.00%, 5/1/20		1,140		1,235
Detroit City School District G.O. Unlimited Refunding Bonds, Series A, School Building & Site Improvement (Q-SBLF Insured), 5.00%, 5/1/22		6,755		7,923
Michigan State Building Authority Revenue Refunding Bonds, Series II-A, Facilities Program, 5.00%, 10/15/27		10,000		11,299
Michigan State Finance Authority Unemployment Obligation Assessment Revenue Bonds, Series A, 5.00%, 7/1/19		5,000		6,147
Michigan State G.O. Unlimited Refunding Bonds, Series A, Environmental Program, 1.00%, 12/1/25		5,000		3,584
Michigan State Municipal Bond Authority Revenue Bonds, Clean Water State Revolving Fund, 4.75%, 10/1/23		4,785		5,190
Michigan State Trunk Line Revenue Refunding Bonds, 5.00%, 11/15/21(2)		2,500		3,099
				38,477
Minnesota - 0.5%
Minneapolis-St. Paul Metropolitan Airports Commission Revenue Refunding Bonds, Senior Series B (AMT), 5.00%, 1/1/22		2,500		2,808
Minnesota State G.O. Unlimited Bonds, Series A, 5.00%, 10/1/20		5,000		6,304
Minnesota State G.O. Unlimited Bonds, Unrefunded Balance, Prerefunded, 5.25%, 11/1/12		470		478
Minnesota State Various Purpose G.O. Unlimited Refunding Bonds, Series D, 3.00%, 8/1/12		2,625		2,631
				12,221
Mississippi - 0.0%
Mississippi State Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured), 5.40%, 6/1/38		35		36
Missouri - 0.3%
Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Refunding Bonds, Series A, State Revolving Funds, 5.00%, 1/1/22		5,060		6,160
Nebraska - 0.6%
Lincoln Electric System Revenue Bonds, 5.00%, 9/1/31		5,500		6,075
Omaha Public Power District Revenue Bonds, Series B, 5.00%, 2/1/29		5,325		6,214
				12,289
Nevada - 0.6%
Las Vegas Valley Water District G.O. Limited Refunding Bonds, Series C, 5.00%, 6/1/38		1,000		1,102
Nevada State G.O. Limited Bonds, Series C, Capital Improvement & Cultural Affairs, 5.00%, 6/1/21		8,000		9,228
Washoe County Highway Motor Vehicle Fuel TRB, 4.75%, 2/1/21		3,400		3,860
				14,190

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
New Hampshire - 0.3%
New Hampshire State Health & Education Facilities Authority Revenue Bonds, Dartmouth College, 5.25%, 6/1/39	$	5,000	$	5,788
New Jersey - 0.6%
New Jersey State Health Care Facilities Financing Authority Revenue Bonds, Atlantic City Medical, Prerefunded, 6.25%, 7/1/12		445		445
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A, 5.75%, 6/15/20		5,000		6,068
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, 5.25%, 6/15/26		5,000		5,868
				12,381
New Mexico - 1.0%
New Mexico State Finance Authority Revenue Bonds, Series C, 5.00%, 6/1/23		2,770		3,403
New Mexico State Severance TRB, Series A, 5.00%, 7/1/21		7,575		9,492
5.00%, 7/1/22		7,965		10,085
				22,980
New York - 17.5%
Long Island Power Authority Revenue Bonds, Series A, 6.25%, 4/1/33		5,000		5,999
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (NATL-RE-IBC Insured), 5.00%, 11/15/30		10,000		10,154
Metropolitan Transportation Authority Revenue Bonds, Series G, 5.25%, 11/15/26		5,000		5,777
Metropolitan Transportation Authority Revenue Refunding Bonds, Series D, 5.00%, 11/15/23(2)		5,000		5,644
5.00%, 11/15/24(2)		5,000		5,612
New York City G.O. Unlimited Refunding Bonds, Series F, 5.00%, 8/1/21		5,000		6,107
New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Series A, Fiscal 2005, 5.00%, 6/15/39		10,000		10,681
New York City Transitional Finance Authority Building Aid Revenue Bonds, Sub Series S-1A (State Aid Withholding), 5.00%, 7/15/26		10,000		11,664
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series D, Fiscal 2011, 5.00%, 2/1/23		5,000		5,971
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Sub Series A, 5.00%, 11/1/21		1,000		1,251
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Sub Series B, 5.00%, 11/1/17		5,250		6,324
5.00%, 11/1/21		5,000		6,107
5.00%, 2/1/22		2,000		2,418
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Sub Series E-1, 5.00%, 2/1/42		4,975		5,548
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Series B, 5.00%, 11/1/25		1,000		1,188
New York G.O. Unlimited Bonds, Series A-1, 5.00%, 8/1/22		10,000		12,110
New York G.O. Unlimited Bonds, Series D, Prerefunded, 5.25%, 10/15/13		5,000		5,320
New York G.O. Unlimited Bonds, Series E, 5.00%, 11/1/25		10,000		10,905
New York G.O. Unlimited Bonds, Sub Series C-1, Fiscal 2008, 5.00%, 10/1/22		10,000		11,732
New York G.O. Unlimited Refunding Bonds, Series E, 5.00%, 8/1/23		10,000		12,037
New York State Dormitory Authority General Purpose Personal Income Refunding TRB, Series A, 5.00%, 12/15/19		5,000		6,134
5.00%, 12/15/20		24,100		29,687
5.00%, 12/15/23		5,000		6,125

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
New York - 17.5% continued
New York State Dormitory Authority General Purpose Personal Income TRB, Series A, 5.00%, 3/15/20	$	10,000	$	12,170
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series B, School Districts Financing Program (Assured Guaranty Insured State Aid Withholding), 5.25%, 10/1/23		5,000		5,824
New York State Dormitory Authority Personal Education Income Tax Revenue Refunding Bonds, Series B (AMBAC Insured), 5.50%, 3/15/24		10,170		13,333
5.50%, 3/15/30		3,000		4,059
New York State Dormitory Authority Personal Education Income TRB, Series B, 5.75%, 3/15/36		16,000		18,912
New York State Dormitory Authority Personal Income TRB, Series E, 5.00%, 8/15/20		10,000		12,253
New York State Environmental Facilities Corp. Clean Water & Drinking Revenue Bonds, Revolving Funds Municipal Water Project, 5.00%, 6/15/36		5,000		5,684
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		5,565
New York State Environmental Facilities Corp. Personal Income TRB, Series A, 5.25%, 12/15/26		10,000		12,023
New York State Environmental Facilities Corp. Revenue Bonds, Series B, Revolving Funds Municipal Water Project, 5.25%, 6/15/15		1,000		1,001
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series E (AGM-CR G.O. of Corp. Insured), 5.00%, 4/1/21		5,000		6,126
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series C (NATL-RE-IBC G.O. of Corp. Insured), 5.50%, 4/1/17		4,425		5,211
New York State Thruway Authority General Revenue Bonds, Series I, 5.00%, 1/1/26(2)		7,000		8,001
New York State Thruway Authority Transportation Personal Income TRB, Series A, 5.25%, 3/15/21		5,000		5,995
5.00%, 3/15/22		10,000		12,307
5.00%, 3/15/25		10,000		11,791
New York State Urban Development Corp. Purpose Revenue Bonds, Subordinate Lien (HUD 236 G.O. of Corp. Insured), 5.50%, 7/1/16		775		778
New York State Urban Development Corp. Revenue Refunding Bonds, Series D, 5.38%, 1/1/22		1,850		2,177
Port Authority of New York & New Jersey Consolidated 167’th Revenue Bonds (AMT) (G.O. of Authority Insured), 5.00%, 9/15/24		5,000		5,722
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (AMBAC Insured), 5.25%, 10/15/27		3,995		4,386
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 10/15/19		5,100		5,646
5.00%, 10/15/24		2,000		2,194
Tobacco Settlement Financing Corp. Revenue Bonds, Asset-Backed Series B-1C, 5.50%, 6/1/19		2,500		2,616
Triborough Bridge & Tunnel Authority General Revenue Bonds, Series A, 5.00%, 11/15/21		5,140		6,376
5.00%, 11/15/22		4,260		5,315
5.00%, 11/15/25		3,025		3,614
Triborough Bridge & Tunnel Authority General Revenue Refunding Bonds, Series A (G.O. of Authority Insured), 5.00%, 1/1/23		1,000		1,213
5.00%, 1/1/25		10,000		11,843
5.00%, 1/1/27		6,810		7,972
Triborough Bridge & Tunnel Authority Revenue Refunding Bonds (NATL-RE Insured), 5.50%, 11/15/21		5,000		6,326
				390,928

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
North Carolina - 1.9%
Charlotte G.O. Unlimited Refunding Bonds, Series A, 5.00%, 7/1/21	$	4,410	$	5,612
Mecklenburg County G.O. Unlimited Refunding Bonds, 5.00%, 2/1/19		10,000		12,363
North Carolina State Eastern Municipal Power Agency System Revenue Refunding Bonds, Series A, Prerefunded, 4.50%, 1/1/22		3,215		3,958
North Carolina State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 5/1/21		5,000		6,347
North Carolina State Municipal Power Agency No. 1 Catawba Electric Revenue Refunding Bonds, Series A, 5.25%, 1/1/20		2,000		2,334
North Carolina State Public Improvement G.O. Unlimited Bonds, Series A, 5.00%, 5/1/21		5,000		6,228
Wake County G.O. Unlimited Refunding Bonds, Series C, 5.00%, 3/1/23		5,000		6,418
				43,260
Ohio - 4.0%
Akron Income TRB, Series A, Community Learning Centers (NATL-RE FGIC Insured), Prerefunded, 5.00%, 12/1/13		3,000		3,138
Cincinnati G.O.Unlimited Bonds, Series A, 5.00%, 12/1/24		1,000		1,175
5.00%, 12/1/26		1,960		2,267
Monroe Local School District Improvement G.O. Unlimited Refunding Bonds (AMBAC Insured), 5.50%, 12/1/24		1,000		1,195
Ohio State Common Schools G.O. Unlimited Bonds, Series B, 5.00%, 3/15/24		14,410		17,346
5.00%, 9/15/25		10,000		11,859
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series A, 5.00%, 9/15/22		5,550		6,962
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series C, 5.00%, 9/15/13		1,310		1,385
Ohio State Facilities Administrative Building Authority Revenue Refunding Bonds, Series A, 5.00%, 10/1/23		4,180		4,898
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series B, 5.00%, 8/1/20		5,000		6,149
5.00%, 8/1/22		2,500		3,130
Ohio State Higher Educational Facility Commission Revenue Bonds, Cleveland Clinic Health, 5.00%, 1/1/26		11,740		13,502
Ohio State Infrastructure Improvement G.O. Unlimited Refunding Bonds, Series B, 5.00%, 9/1/20		7,185		8,863
Ohio State Water Development Authority PCR Refunding Bonds, Series B, Loan Fund, Prerefunded, 5.00%, 6/1/15		1,000		1,131
University of Cincinnati General Receipts Revenue Bonds, Series F, 5.00%, 6/1/25		5,000		5,816
				88,816
Oregon - 1.5%
Oregon State Board of Education G.O. Unlimited Bonds, Series A, 5.00%, 8/1/23		4,480		5,419
Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series C, Senior Lien, 5.00%, 11/15/20		10,000		11,764
Oregon State G.O. Unlimited Refunding Bonds, Series N, 5.00%, 12/1/23		3,000		3,716
Washington Multnomah & Yamhill Counties School District No. 1J G.O. Unlimited Bonds, HillsBoro (NATL-RE Insured), 5.00%, 6/15/21		10,000		11,521
				32,420
Pennsylvania - 1.4%
Pennsylvania State G.O. Unlimited Bonds, First Series, 5.00%, 11/15/21		10,160		12,726
5.00%, 6/1/23		10,000		12,394

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
Pennsylvania - 1.4% continued
Pennsylvania State Housing Finance Agency SFM Revenue Bonds, Series 100A (AMT), 5.10%, 10/1/22	$	675	$	718
Pennsylvania State Turnpike Commission Revenue Refunding Bonds, Series A (AMBAC Insured), 5.00%, 12/1/19		5,075		5,858
				31,696
Puerto Rico - 0.3%
Puerto Rico Financing Corp. Sales TRB, First Sub Series A, 6.38%, 8/1/39		5,000		5,804
Rhode Island - 0.4%
Rhode Island State & Providence Plantations G.O. Unlimited Bonds, Series A, Consolidated Capital Development Loan, 5.50%, 8/1/25		5,000		6,118
Rhode Island State Clean Water Finance Agency PCR Refunding Bonds, Series A, 5.00%, 10/1/21		2,880		3,516
				9,634
South Carolina - 1.5%
Piedmont Municipal Power Agency Electric Revenue Bonds, Series 04, Unrefunded Balance (BHAC-CR MBIA Insured), 5.38%, 1/1/25		5,000		6,160
Richland County School District No. 1 G.O. Unlimited Bonds (AGM SCSDE Insured), Prerefunded, 4.75%, 3/1/13		2,000		2,082
South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper Project, 5.50%, 1/1/38		12,000		13,708
South Carolina State Transportation Infrastructure Bank Revenue Refunding Bonds, Series A (BHAC-CR AMBAC Insured), 5.00%, 10/1/22		10,000		11,288
				33,238
Tennessee - 0.9%
Knoxville G.O. Unlimited Bonds, 2.00%, 5/1/22		5,000		4,943
Metropolitan Government of Nashville & Davidson County G.O. Unlimited Refunding & Improvement Bonds, Series A, 5.00%, 7/1/24		10,275		12,251
Tennessee State Housing Development Agency Revenue Bonds, Series 1A (AMT), Home Ownership Program (G.O. of Agency Insured), 3.75%, 1/1/19		500		524
4.05%, 7/1/20		500		531
4.13%, 7/1/21		1,750		1,860
				20,109
Texas - 6.9%
Clear Creek Independent School District G.O. Unlimited Refunding Bonds, Series A, 5.00%, 2/15/23		4,780		5,889
Dallas Fort Worth International Airport Joint Revenue Bonds, Series A (AMT) (NATL-RE Insured), 5.50%, 11/1/20		1,000		1,055
Dallas Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 2/15/26		10,000		11,869
Denton County Permanent Improvement G.O. Limited Refunding Bonds, 5.00%, 7/15/22		2,000		2,433
Frisco Independent School District Building G.O. Unlimited Bonds (PSF-Gtd.), Prerefunded, 6.50%, 8/15/12		1,535		1,547
Garland Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 2/15/24		13,885		16,713
Harris County G.O. Unlimited Refunding Bonds, Series A, 5.00%, 10/1/23		5,000		6,042
Houston Airport System Revenue Refunding Bonds, Series A (AMT), Subordinate Lien, 5.00%, 7/1/23		5,000		5,733
Houston Independent School District Variable G.O. Limited Tax Refunding Bonds (PSF-Gtd.), 1.50%, 6/1/28		13,000		13,124
2.00%, 6/1/29		5,000		5,124

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
Texas - 6.9% continued
Houston Independent School House District G.O. Limited Bonds (PSF-Gtd.), 5.00%, 2/15/25	$	10,000	$	11,605
Houston Public Improvement G.O. Limited Refunding Bonds, Series D (AGM Insured), 5.00%, 3/1/17		1,600		1,837
Humble Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), 5.00%, 2/15/29		10,000		11,400
Lamar Consolidated Independent School House District G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.), 5.00%, 2/15/21		1,500		1,871
Leander Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 8/15/32		5,000		5,025
Lower Colorado River Authority Revenue Bonds, Series 2012-1, Unrefunded, 5.50%, 5/15/33		1,910		2,144
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, 6.50%, 5/15/37		10,000		11,193
Lower Colorado River Authority Revenue Refunding Bonds, Prerefunded, 5.50%, 5/15/19		5		6
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Prerefunded, 5.50%, 5/15/19		80		102
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-1, Prerefunded, 5.50%, 5/15/19		5		6
Northside Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 4.00%, 8/15/20		2,000		2,342
4.00%, 8/15/21		3,365		3,940
5.00%, 8/15/22		5,000		6,224
Panhandle Regional Housing Finance Agency Revenue Bonds, Series A (Collateralized by GNMA Securities), 6.50%, 7/20/21		451		474
Sam Rayburn Municipal Power Agency Revenue Refunding Bonds, 6.00%, 10/1/16		1,000		1,010
6.00%, 10/1/21		1,250		1,260
Spring Independent School House District G.O. Unlimited Bonds (FGIC Insured), 5.00%, 8/15/25		4,680		5,037
Texas State Public Finance Authority G.O. Unlimited Refunding Bonds, 5.00%, 10/1/20		10,000		12,459
University of Texas Financing System Revenue Refunding Bonds, Series B, 5.00%, 8/15/24		3,820		4,727
Wylie Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF-Gtd.), 4.00%, 8/15/21		2,345		2,738
				154,929
Utah - 0.7%
Alpine School District G.O. Unlimited Bonds, Utah School Building Guaranty Program (School Building Guaranty Insured), Prerefunded, 5.00%, 9/15/13		2,000		2,115
Nebo School Building District G.O. Unlimited Bonds (School Building Guaranty Insured), 4.00%, 7/1/22		1,320		1,537
Utah State G.O. Unlimited Bonds, Series A, 5.00%, 7/1/20		10,000		12,601
				16,253
Virginia - 1.8%
Fairfax County Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding), 3.00%, 4/1/24		2,000		2,074
Norfolk Water Revenue Refunding Bonds, 5.00%, 11/1/21		1,500		1,887
Virginia State Commonwealth Transportation Board Revenue Bonds, Federal Highway Reimbursement Notes, 5.00%, 9/27/12		5,550		5,615
Virginia State G.O. Unlimited Refunding Bonds, Series A, 5.00%, 6/1/23		10,000		12,920
Virginia State Housing Development Authority Homeownership Mortgage Revenue Bonds, Series A, 3.65%, 3/1/18		2,200		2,391
3.70%, 9/1/18		4,280		4,674

TAX-EXEMPT FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 86.8% continued
Virginia - 1.8% continued
Virginia State Public School Authority Revenue Refunding Bonds, Series 1997, 5.00%, 8/1/20	$	5,000	$	6,221
Virginia State Public School Financing Authority Special Obligation Montgomery Revenue Bonds (State Aid Withholding), 5.00%, 1/15/22		3,175		3,882
				39,664
Washington - 0.6%
King County School District No. 405 Bellevue G.O. Unlimited Bonds (AGM Insured), 4.20%, 12/1/23		5,000		5,294
Port of Seattle Revenue Refunding Bonds, Series C (AMT), Intermediate Lien, 5.00%, 2/1/18		1,000		1,157
Washington State Various Purpose G.O. Unlimited Refunding Bonds, Series R-2012C, 3.00%, 7/1/29		6,580		6,325
				12,776
Wisconsin - 0.3%
Wisconsin State G.O. Unlimited Refunding Bonds, Series 2, 5.00%, 11/1/22		6,250		7,753
Total Municipal Bonds (Cost $1,853,956)				1,941,152
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 10.7%
Northern Institutional Funds - Tax-Exempt Portfolio(3) (4)		239,495,967	$	239,496
Total Investment Companies (Cost $239,496)				239,496
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT - TERM INVESTMENTS - 4.5%
Michigan State Finance Authority Revenue Notes, Series C-2, State Aid Revenue Notes (J.P. Morgan Chase Bank N.A. LOC), 2.00%, 8/20/12	$	41,000	$	41,100
Oregon State Health & Science University Revenue Bonds, Series A, 2.00%, 7/1/12		2,440		2,440
Sonoma County G.O. Unlimited TRANS, 2.50%, 10/25/12		11,350		11,432
Texas State TRANS, Series A, 2.50%, 8/30/12		32,150		32,274
Utah State G.O. Unlimited Bonds, Series A, 3.00%, 7/1/12		13,760		13,762
Total Short-Term Investments (Cost $100,996)				101,008
Total Investments - 102.0% (Cost $2,194,448)				2,281,656
Liabilities less Other Assets - (2.0)%				(44,500	)
NET ASSETS - 100.0%			$	2,237,156

(1) Zero coupon bond reflects effective yield on the date of purchase.

(2) When-Issued Security.

(3) At March 31, 2012, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $378,735,000 with net sales of approximately $139,239,000 during the three months ended June 30, 2012.

(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

Percentages shown are based on Net Assets.

At June 30, 2012, the industry sectors for the Intermediate Tax-Exempt Fund were:

INDUS TRY SECTOR	% OF INVESTMENTS
Financials		10.5	%
General		20.6
General Obligation		26.5
School District		10.0
Transportation		8.2
Water		7.8
All other sectors less than 5%		16.4
Total		100.0	%

NORTHERN FUNDS QUARTERLY REPORT    13    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

At June 30, 2012, the credit quality distribution for the Intermediate Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DIS TRIBUTION*	%
AAA		32.3	%
AA		42.8
A		8.7
BBB		0.1
SP1+/MIG1		4.9
SP1/MIG1		0.5
Not Rated		0.2
Cash and Equivalents		10.5
Total		100.0	%

* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	2,194,638
Gross tax appreciation of investments	$	90,047
Gross tax depreciation of investments		(3,029	)
Net tax appreciation of investments	$	87,018

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Intermediate Tax-Exempt Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	1,941,152	(1)	$	—	$	1,941,152
Investment Companies		239,496		—			—		239,496
Short-Term Investments		—		101,008			—		101,008
Total Investments	$	239,496	$	2,042,160		$	—	$	2,281,656

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes/zero coupon bonds, 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, the next interest reset/ puttable date for floating and variable rate 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 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.

TAX-EXEMPT FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BANS - Bond Anticipation Notes

BHAC - Berkshire Hathaway Assurance Corporation

COP - Certificate of Participation

CR - Custody Receipt

FGIC - Financial Guaranty Insurance Corporation

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

GNMA - Government National Mortgage Association

G.O. - General Obligation

Gtd. - Guaranteed

IBC - Insured Bond Certificates

NATL-RE - National Public Finance Guarantee Corp.

PCR - Pollution Control Revenue

PSF - Permanent School Fund

Q-SBLF - Qualified School Bond Loan Fund

SFM - Single Family Mortgage

TRANS - Tax and Revenue Anticipation Notes

TRB - Tax Revenue Bonds

VRDB - Variable Rate Demand Bonds

NORTHERN FUNDS QUARTERLY REPORT    15    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9%
Alaska - 0.5%
Alaska State International Airports Revenue Bonds, Series B (AMBAC Insured), Prerefunded, 5.25%, 10/1/12	$	100	$	101
Anchorage G.O. Unlimited Bonds, Series B (NATL-RE FGIC Insured), 4.00%, 9/1/12		350		352
Anchorage Schools G.O. Unlimited Bonds, Series C, 3.00%, 8/1/12		400		401
Matanuska-Susitna Boro Lease Revenue Bonds, Goose Creek Correctional Center (Assured Guaranty Insured), 5.00%, 9/1/14		4,285		4,694
				5,548
Arizona - 4.9%
Arizona State School Facilities Improvement Board Revenue Bonds, Prerefunded, 5.25%, 7/1/12		1,125		1,125
Arizona State Transportation Board Excise TRB, Maricopa County Regional Area Road Fund, 5.00%, 7/1/12		300		300
5.00%, 7/1/15		5,000		5,656
Arizona State Water Infrastructure Finance Authority Quality Revenue Bonds, Series A, 4.00%, 10/1/14		755		816
Chandler Water & Sewer Revenue Bonds (NATL-RE FGIC Insured), 5.00%, 7/1/12		100		100
Gilbert Public Facilities Municipal Property Corp. Revenue Bonds, 4.00%, 7/1/13		1,845		1,910
4.00%, 7/1/14		1,910		2,035
Maricopa County Community College District G.O. Limited Refunding Bonds, 2.50%, 7/1/19		2,000		2,102
Maricopa County Community College District G.O. Unlimited Bonds, Series C, 4.00%, 7/1/15		1,000		1,099
4.00%, 7/1/16		1,000		1,124
Maricopa County High School District No. 210 G.O. Unlimited Bonds, Series C, Phoenix School Improvement (NATL-RE Insured), 5.00%, 7/1/12		385		385
Maricopa County Unified School District No. 11 G.O. Unlimited Bonds, School Improvement,
5.00%, 7/1/16		4,250		4,903
Maricopa County Unified School District No. 4 Mesa G.O. Unlimited Bonds, Series B, School Improvement Project of 2005 (NATL-RE FGIC Insured), 4.00%, 7/1/12		200		200
Maricopa County Unified School District No. 4 Mesa G.O. Unlimited Bonds, Series D, School Improvement Project of 2005, 4.00%, 7/1/14		3,505		3,751
Maricopa County Unified School District No. 41 Gilbert G.O. Unlimited Refunding Bonds (AGM Insured) Prerefunded, 4.50%, 7/1/12		125		125
Maricopa County Unified School District No. 80 G.O. Unlimited Bonds, School Improvement (NATL-RE Insured), 3.75%, 7/1/12		105		105
Maricopa County Unified School District No. 97 Deer Valley G.O. Unlimited Bonds, Series A, School Improvement Project 2008 (AGM Insured), 2.50%, 7/1/14		225		233
4.25%, 7/1/14		5,000		5,354
Mesa G.O. Limited Refunding Bonds (NATL-RE FGIC Insured), 5.25%, 7/1/12		100		100
Mesa Utility System Revenue Refunding Bonds (AGM-CR FGIC Insured), Partially Escrowed to Maturity, 5.25%, 7/1/12		530		530
Phoenix Civic Improvement Corp. Transportation Excise TRB, Light Rail Project (AMBAC Insured), 5.00%, 7/1/13		135		142
Phoenix Civic Improvement Corp. Waste Water System Revenue Refunding Bonds, Series B, Senior Lien (NATL-RE Insured), 5.00%, 7/1/12		115		115
Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien (NATL-RE Insured), 5.00%, 7/1/19		8,500		9,518
Phoenix G.O. Limited Refunding Bonds, Partially Escrowed to Maturity, 5.00%, 7/1/13		125		131

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Arizona - 4.9% continued
Phoenix G.O. Unlimited Bonds, Series B, 5.00%, 7/1/16	$	5,000	$	5,646
Pinal County Obligation Revenue Refunding Bonds, 3.00%, 8/1/15		1,820		1,921
Tempe City G.O. Unlimited Bonds, 5.00%, 7/1/13		100		105
Tempe City G.O. Unlimited Refunding Bonds, Series C, 2.00%, 7/1/13		195		198
Tucson Water System Revenue Bonds, 5.00%, 7/1/16		1,275		1,486
				51,215
Arkansas - 0.0%
Arkansas State Federal Highway Grant Anticipation & Tax G.O. Unlimited Refunding Bonds, 4.00%, 8/1/12		250		251
California - 3.9%
California State Department of Water Resources Supply Revenue Bonds, Series L, 5.00%, 5/1/15		10,000		11,242
California State Economic Recovery G.O. Unlimited Bonds, Series A, 5.25%, 7/1/12		390		390
California State Health Facilities Financing Authority Revenue Bonds, Series C, Providence Health & Services, 5.00%, 10/1/14		500		548
California State Public Works Board Lease Revenue Bonds, Series C, University of California Institute Project, 5.00%, 4/1/13		150		155
California Statewide Communities Development Authority Revenue Bonds, Proposition 1A Receivables Program, 5.00%, 6/15/13		10,000		10,448
Los Angeles Department of Water & Power System Revenue Bonds, Series A, 5.00%, 7/1/19		5,000		6,158
Los Angeles G.O. Unlimited Bonds, Series A, (NATL-RE Insured), Prerefunded, 5.00%, 9/1/12		150		151
Los Angeles Unified School District G.O. Unlimited Bonds, Series H, Election 2004, (AGM Insured), 4.50%, 7/1/12		100		100
Los Angeles Unified School District G.O. Unlimited Bonds, Series I, 5.00%, 7/1/15		5,000		5,635
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, (NATL-RE Insured), 5.50%, 7/1/12		150		150
University of California Revenue Bonds, Series P, Regents University of California, 5.00%, 5/15/13		5,085		5,298
				40,275
Colorado - 0.9%
Denver City & County Excise Tax Revenue Refunding Bonds, Series A (Assured Guaranty Insured), 6.00%, 9/1/21		5,000		6,198
Jefferson County School District No. R-001 G.O. Unlimited Refunding Bonds (AMBAC Insured State Aid Withholding), 5.00%, 12/15/12		150		153
Jefferson County School District No. R-001 G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 12/15/13		585		625
Regional Transportation District COP, Series A, Transit Vehicles (AMBAC Insured), 5.00%, 12/1/16		1,590		1,821
Regional Transportation District Sales TRB, Series B (AMBAC Insured), Prerefunded, 5.50%, 11/1/12		200		203
				9,000
Connecticut - 2.7%
Connecticut State Economic Recovery G.O. Unlimited Bonds, Series A, 5.00%, 1/1/13		625		640
Connecticut State Economic Recovery G.O. Unlimited Bonds, Series D, 5.00%, 1/1/14		10,000		10,693
Connecticut State G.O Unlimited Bonds, Series D (NATL-RE Insured), 5.00%, 12/1/12		125		128

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Connecticut - 2.7% continued
Connecticut State G.O. Unlimited Bonds, Series C, 4.50%, 11/1/12	$	100	$	101
Connecticut State G.O. Unlimited Bonds, Series F (AGM-CR Insured), Prerefunded, 5.00%, 10/15/12		100		101
Connecticut State G.O. Unlimited Refunding Bonds, Series B, 5.00%, 5/1/17		5,520		6,571
Connecticut State New Money G.O. Unlimited Bonds, Series D, 5.25%, 11/15/12		125		127
Connecticut State Revolving Fund General Revenue Bonds, Series A, 5.00%, 10/1/12		175		177
Connecticut State Special Tax Obligation Revenue Bonds, Series B, Transportation Infrastructure, 6.13%, 9/1/12		145		147
Connecticut State Special Tax Obligation Revenue Bonds, Series B, Transportation Infrastructure (AMBAC Insured), Prerefunded, 5.00%, 12/1/12		500		510
Connecticut State Special Tax Obligation Revenue Refunding Bonds, Series 1, 2nd Lien, Transportation Infrastructure, 3.00%, 2/1/13		125		127
5.00%, 2/1/17		2,500		2,956
Connecticut State Special Tax Obligation Revenue Refunding Bonds, Series C, Transportation Infrastructure, 5.00%, 11/1/18		5,230		6,374
				28,652
Delaware - 1.9%
Delaware State G.O. Unlimited Bonds, Series 2009C, 5.00%, 10/1/15		15,000		17,169
Delaware State Transportation Authority Senior System Revenue Bonds (NATL-RE Insured), 5.00%, 7/1/12		160		160
University of Delaware Revenue Refunding Bonds, Series B, 4.00%, 11/1/14		1,250		1,353
5.00%, 11/1/15		1,000		1,146
				19,828
District of Columbia - 0.0%
District of Columbia Income Tax Secured Revenue Refunding Bonds, Series C, 5.00%, 12/1/13		200		213
Florida - 6.4%
Brevard County School Board COP (AMBAC Insured), Prerefunded, 5.50%, 7/1/12		705		705
City of Cape Coral Water & Sewer Revenue Refunding Bonds, Series A, (AGM Insured), 3.00%, 10/1/13		250		258
Clay County Infrastructure Sales Surtax Revenue Bonds (Assured Guaranty Insured), 5.25%, 10/1/17		4,600		5,309
Florida State Board of Education Lottery Revenue Refunding Bonds, Series E, 4.00%, 7/1/12		265		265
Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series A, 5.00%, 6/1/15		5,430		6,131
Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series A (State Guaranteed NATL-RE Insured), 5.00%, 6/1/15		5,750		6,046
Florida State Department of Environmental Protection Preservation Revenue Bonds, Series A, Florida Forever (AMBAC Insured), 5.00%, 7/1/12		200		200
Florida State Department of Transportation Right of Way G.O. Unlimited Refunding Bonds, Series B, 6.38%, 7/1/14		1,500		1,677
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, 5.25%, 7/1/12		300		300
5.00%, 7/1/13		5,000		5,228
5.00%, 7/1/15		10,000		11,136
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 5.00%, 10/1/16		4,000		4,570
Florida State Turnpike Authority Revenue Bonds, Series A (NATL-RE FGIC Insured), 5.00%, 7/1/12		250		250

NORTHERN FUNDS QUARTERLY REPORT     3    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Florida - 6.4% continued
Florida State Turnpike Authority Revenue Refunding Bonds, Series A, Department of Transportation (AGM Insured), 5.00%, 7/1/12	$	120	$	120
5.00%, 7/1/13		210		220
Jacksonville Excise Taxes Revenue Bonds, Series B (AMBAC Insured), 5.38%, 10/1/18		2,350		2,376
Miami-Dade County G.O. Unlimited Bonds, Series B, Building Better Communities Program, 5.00%, 7/1/15		5,000		5,609
Miami-Dade County Water & Sewer Revenue Refunding Bonds (NATL-RE Insured), 5.00%, 10/1/13		3,500		3,692
Palm Beach County Revenue Refunding Bonds, Public Improvement Recreational Facilties, 3.38%, 7/1/12		540		540
Palm Beach County School Board COP, Series A (AGM Insured), Prerefunded, 5.38%, 8/1/12		150		151
Palm Beach County School Board Refunding COP, Series E (AMBAC Insured), 5.38%, 8/1/15		5,000		5,636
Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series A, 5.00%, 10/1/16		1,500		1,719
Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series B, 5.00%, 10/1/12		1,440		1,457
5.00%, 10/1/14		2,535		2,755
Tallahassee Blueprint 2000 Intergovernmental Agency Sales TRB (NATL-RE Insured), 5.00%, 10/1/14		500		541
				66,891
Georgia - 3.8%
Cobb County Water & Sewer Improvement Revenue Bonds, 4.00%, 7/1/12		250		250
Columbia County Sales Tax G.O. Unlimited Bonds, 4.00%, 4/1/13		100		103
Fulton County Facilities Corp. COP, Public Purpose Project, 5.00%, 11/1/15		2,250		2,522
5.00%, 11/1/16		2,280		2,611
Fulton County Library G.O. Unlimited Bonds, Series A, 2.50%, 7/1/12		100		100
Georgia State G.O. Unlimited Bonds, Series B, 5.50%, 7/1/12		100		100
Georgia State G.O. Unlimited Bonds, Series F, 5.00%, 11/1/14		5,000		5,537
Georgia State Road & Tollway Authority Federal Highway Grant Anticipation Revenue Bonds, Series A, 5.00%, 6/1/18		5,000		6,028
Georgia State Road & Tollway Authority Federal Highway Grant Anticipation Revenue Bonds, Series A (AGM Insured), 5.00%, 6/1/13		3,000		3,130
Gordon County School District Sales Tax G.O. Unlimited Bonds, (State Aid Withholding), 3.00%, 9/1/13		1,000		1,031
Gwinnett County Water & Sewerage Authority Revenue Bonds (County Gtd.), Prerefunded, 5.00%, 8/1/12		1,000		1,004
Gwinnett County Water & Sewerage Authority Revenue Refunding Bonds, (County Gtd.), 4.00%, 8/1/13		425		442
Henry County School District G.O. Unlimited Refunding Bonds (State Aid Withholding), 5.00%, 8/1/19		5,270		6,472
Houston County School District Sales Tax G.O. Unlimited Bonds, (State Aid Withholding), 2.00%, 9/1/13		600		612
Metropolitan Atlanta Rapid Transit Authority Revenue Refunding Bonds, Series A, Second Indenture (AGM Insured), 5.00%, 7/1/12		450		450

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Georgia - 3.8% continued
Metropolitan Atlanta Rapid Transit Authority Tax Revenue Refunding Bonds, Series A, Third Indenture (NATL-RE FGIC Insured), 5.00%, 7/1/15	$	4,000	$	4,517
Municipal Electric Authority Revenue Bonds, Subseries A, Project One, 5.00%, 1/1/13		2,000		2,046
Municipal Electric Authority Revenue Bonds, Subseries D, Project One, 5.00%, 1/1/13		1,710		1,749
5.00%, 1/1/14		1,045		1,113
Private Colleges & Universities Authority Revenue Bonds, Series A, Emory University, 5.00%, 9/1/13		200		211
				40,028
Hawaii - 0.8%
Hawaii State G.O. Unlimited Bonds, Series DA (NATL-RE Insured), Prerefunded, 5.25%, 9/1/13		5,000		5,292
Hawaii State G.O. Unlimited Refunding Bonds, Series DV, 5.00%, 11/1/12		105		107
Honolulu City & County G.O. Unlimited Bonds, Series B, Escrowed to Maturity, 5.00%, 10/1/13		140		148
Honolulu City & County G.O. Unlimited Bonds, Series F, 5.00%, 9/1/15		2,000		2,278
Honolulu City & County Wastewater System Revenue Bonds, Senior Series C, First Board Resolution, (NATL-RE Insured), 4.00%, 7/1/13		100		104
				7,929
Idaho - 0.1%
Idaho Housing & Finance Association Unemployment Compensation Revenue Bonds, 2.00%, 8/15/13		675		687
Illinois - 1.4%
Cook Kane Lake & McHenry Counties Community College District No. 512 G.O. Unlimited Refunding Bonds, William Rainey Harper College Project, 5.00%, 12/1/13		500		532
Du Page County Community High School District No. 108 G.O. Unlimited Refunding Bonds, 4.00%, 1/1/19		1,000		1,134
Evanston G.O. Unlimited Refunding Bonds, Series D, 3.50%, 12/1/12		100		101
Grundy & Will Counties Community Unit School District No. 1 G.O. Unlimited Bonds, 5.88%, 2/1/16		1,120		1,295
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, 5.00%, 3/1/15		4,000		4,415
Illinois State Sales TRB, 5.38%, 6/15/16		2,010		2,017
Kendall Kane & Will Counties Community Unit School District No. 308 G.O. Unlimited Bonds, Series B (FGIC Insured), Prerefunded, 5.25%, 10/1/12		1,000		1,013
McHenry County Community School District No. 47 Crystal Lake G.O. Unlimited Refunding Bonds, 3.00%, 2/1/13		125		127
Schaumburg Park District G.O. Limited Bonds, Series A, 2.00%, 12/15/13		2,900		2,951
Will County Community High School District No. 210 Lincoln-Way G.O. Unlimited Bonds (NATL-RE FGIC Insured), 4.00%, 1/1/13		150		152
4.00%, 1/1/14		500		523
				14,260
Indiana - 1.2%
Indiana State Facilities Finance Authority Revenue Refunding Bonds, 5.00%, 7/1/14		3,485		3,766
Indiana State Transportation Finance Authority Revenue Bonds, Series A (FGIC Insured), Prerefunded, 5.13%, 6/1/14		3,350		3,656
Indianapolis Local Public Improvement Bank Multipurpose Revenue Bonds, Series D, 5.25%, 1/10/15		2,430		2,547

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Indiana - 1.2% continued
Indianapolis-Marion County Public Library G.O. Unlimited Refunding Bonds, 3.00%, 7/1/12	$	270	$	270
Mount Vernon of Posey County Multi-School Building Corp., First Mortgage Revenue Bonds (AMBAC Insured-State Aid Withholding), 4.00%, 1/15/13		500		510
Pike Township Multi-School Building Corp. Revenue Bonds, First Mortgage (State Aid Withholding), 4.00%, 1/15/14		1,805		1,898
				12,647
Iowa - 0.1%
Davenport G.O. Unlimited Corporate Bonds, Series D, 3.00%, 6/1/13		200		205
Iowa State Finance Authority Revenue Bonds, State Revolving Fund, Prerefunded, 5.00%, 2/1/13		115		118
Iowa State Science & Technology, University Dormitory, Revenue Refunding Bonds, Series I.S.U. A, 2.00%, 7/1/12		560		560
Iowa State University Utility System Revenue Bonds, Series S.U.I. A (NATL-RE Insured), 4.00%, 11/1/12		100		102
				985
Kansas - 0.6%
Johnson County Public Building Commission Lease Purchase Revenue Bonds, Series A, 2.00%, 9/1/12		100		100
Johnson County Unified School District No. 229 G.O. Unlimited Bonds, Series A (AGM Insured), 5.00%, 10/1/12		1,000		1,012
Kansas State Development Finance Authority Revolving Water PCR Bonds, 5.00%, 11/1/12		100		102
Wichita G.O. Unlimited Refunding Bonds, Series C, 5.00%, 9/1/18		2,230		2,713
Wichita Water and Sewer Utility Revenue Bonds (NATL-RE FGIC Insured), Prerefunded, 5.00%, 10/1/13		2,000		2,118
				6,045
Kentucky - 1.5%
Kentucky State Property & Buildings Commission Revenue Refunding Bonds, 5.00%, 11/1/12		4,475		4,548
Kentucky State Property & Buildings Commission Revenue Bonds, Series A, Project No. 95, 5.00%, 8/1/15		5,805		6,536
Kentucky State Property & Buildings Commission Revenue Bonds, Project No. 88 (NATL-RE FGIC Insured), 5.00%, 11/1/12		1,000		1,016
Kentucky State Property & Buildings Commission Revenue Refunding Bonds, Project No. 93 (Assured Guaranty Insured), 5.25%, 2/1/17		3,000		3,501
Kentucky State Turnpike Authority Economic Development Road Revenue Refunding Bonds, Series A, Revitalization Project (AMBAC Insured), 5.50%, 7/1/12		250		250
				15,851
Maine - 0.1%
Maine State Municipal Bank Revenue Bonds, Series A (G.O. of Bond Bank), 5.00%, 11/1/13		400		425
Maine State Turnpike Authority Revenue Bonds (AMBAC Insured), Prerefunded, 5.00%, 7/1/13		500		524
				949
Maryland - 2.9%
Anne Arundel County Consolidated General Improvement G.O. Limited Bonds, 5.00%, 3/1/15		380		426
5.00%, 4/1/18		2,915		3,552
Baltimore County Consolidated Public Improvement G.O. Unlimited Bonds, 5.00%, 2/1/13		150		154

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Maryland - 2.9% continued
Charles County Consolidated Public Improvement G.O. Unlimited Refunding Bonds, 2.00%, 7/15/13	$	100	$	102
Frederick County G.O. Unlimited Refunding Bonds, Series C, 4.00%, 12/1/15		6,375		7,108
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Second Series, 5.00%, 8/1/12		150		151
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Second Series B, 5.00%, 8/1/16		15,000		17,655
Maryland State Transportation Authority Facilities Project Revenue Bonds (AGM Insured), 5.25%, 7/1/13		350		368
Prince Georges County Consolidated Public Improvement G.O. Limited Bonds, 5.00%, 9/15/13		350		370
				29,886
Massachusetts - 0.9%
Boston G.O. Unlimited Bonds, Series D, 4.00%, 4/1/13		250		257
Boston Water & Sewer Commission General Revenue Refunding Bonds, Senior Series B, 4.00%, 11/1/12		200		203
Massachusetts Bay Transportation Authority Assessment Revenue Bonds, Series A, 5.00%, 7/1/12		700		700
Massachusetts Bay Transportation Authority Sales TRB, Senior Series A, Prerefunded, 5.25%, 7/1/12		150		150
Massachusetts State Department of Transportation Metropolitan Highway System Revenue Bonds, Senior Series B, 5.00%, 1/1/15		3,500		3,847
Massachusetts State Development Finance Agency Revenue Bonds, Series R-1, Boston College, 5.00%, 7/1/12		330		330
Massachusetts State Development Finance Agency Revenue Bonds, Series R-2, Boston College, 5.00%, 7/1/12		400		400
Massachusetts State G.O. Limited Bonds, Series A, Consolidated Loan (AMBAC Insured), Prerefunded, 5.25%, 1/1/13		660		676
Massachusetts State G.O. Limited Bonds, Series C, Consolidated Loan (NATL-RE FGIC Insured G.O. of Commonwealth), 5.50%, 11/1/13		210		225
5.50%, 11/1/14		425		475
Massachusetts State G.O. Limited Refunding Bonds, 5.00%, 7/1/12		110		110
Massachusetts State G.O.Unlimited Bonds, Series A, Consolidated Loan, 5.00%, 8/1/12		290		291
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series FF, Harvard University, 5.00%, 7/15/12		100		100
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series K, Massachusetts Institute of Technology (G.O. of Institution),
5.25%, 7/1/12		100		100
Massachusetts State School Building Authority Sales TRB, Senior Series B, 5.00%, 10/15/15		1,000		1,143
Massachusetts State Special Obligation Revenue Refunding Bonds, Senior Federal Highway Grant Anticipatory Notes, 5.00%, 6/15/13		150		157
				9,164
Michigan - 1.3%
Detroit Water Supply System Revenue Bonds, Series A, Senior Lien (NATL-RE Insured), Prerefunded, 5.25%, 7/1/13		1,000		1,050
Eaton Rapids Public Schools G.O. Unlimited Refunding Bonds (Q-SBLF Insured), 5.00%, 5/1/20		800		943
Kentwood Public Schools G.O. Unlimited Refunding Bonds, 4.00%, 5/1/18		2,340		2,683
Michigan State Building Authority Revenue Refunding Bonds, Series II, Facilities Program (NATL-RE Insured), Escrowed to Maturity, 5.25%, 10/15/13		250		266

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Michigan - 1.3% continued
Michigan State Building Authority Revenue Refunding Bonds, Series II, Facilities Program (NATL-RE Insured), Prerefunded, 5.00%, 10/15/13	$	5,000	$	5,305
Michigan State Building Authority Revenue Refunding Bonds, Series III, Facilities Program (AGM Insured) Prerefunded, 5.00%, 10/15/12		250		254
Michigan State Finance Authority Unemployment Obligation Assessment Revenue Refunding Bonds, Series B, 5.00%, 7/1/22		1,850		2,112
Michigan State Municipal Bond Authority Revenue Bonds, State Revolving Fund, Drinking Water Project, 5.25%, 10/1/12		450		456
Waverly Community Schools G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 5/1/13		300		311
				13,380
Minnesota - 2.7%
Buffalo Independent School District No. 877 G.O. Unlimited Refunding Bonds, Series A (School District Credit Programme), 3.00%, 2/1/17		825		901
Edina Independent School District No. 273 School Building G.O. Unlimited Refunding Bonds, Series B (School District Credit Programme), 5.00%, 2/1/18		4,310		5,200
Minneapolis Health Care System Revenue Bonds, Series A, Allina Health System, Prerefunded, 5.75%, 11/15/12		420		429
Minnesota State 911 Revenue Bonds, Public Safety Radio Communications System (Assured Guaranty Insured), 4.00%, 6/1/13		250		259
Minnesota State G.O. Unlimited Bonds, Prerefunded, 5.25%, 11/1/12		100		102
Minnesota State G.O. Unlimited Bonds, Series C, 5.00%, 8/1/13		5,000		5,259
Minnesota State Various Purpose G.O. Unlimited Refunding Bonds, Series F, 4.00%, 8/1/15		10,000		11,064
Northern Municipal Power Agency Electric System Revenue Refunding Bonds, Series A (Assured Guaranty Insured), 5.00%, 1/1/14	$	2,320	$	2,471
Rochester G.O. Unlimited Waste Water Refunding Bonds, Series A, 5.00%, 2/1/19		1,810		2,235
St Paul Independent School District No. 625 G.O. Unlimited Refunding Bonds, Series C (School District Credit Programme), 3.50%, 2/1/13		125		127
				28,047
Mississippi - 0.3%
Mississippi State G.O. Unlimited Bonds, Series A, 5.00%, 10/1/13		2,620		2,775
Missouri - 0.1%
Curators of the University System Facilities Revenue Bonds, Series A, 4.25%, 11/1/12		100		102
St. Louis Airport Revenue Bonds, Series A, Capital Improvement Program (NATL-RE Insured), Prerefunded, 5.38%, 7/1/12		570		570
				672
Nebraska - 0.2%
Nebraska State Public Power District General Revenue Bonds, Series B, 5.00%, 1/1/14		1,730		1,850
Nebraska State Public Power District General Revenue Bonds, Series B (AGM Insured), 5.00%, 1/1/13		350		358
Omaha Sanitary & Sewer Revenue Refunding Bonds, Series A, 2.00%, 12/1/12		250		252
				2,460
Nevada - 1.4%
Clark County Highway Improvement Motor Vehicle Fuel Tax Revenue Refunding Bonds, (AMBAC Insured), 5.00%, 7/1/13		635		664
Clark County School Building District G.O. Limited Bonds, Series B (AMBAC Insured), 5.00%, 6/15/15		2,000		2,248

TAX-EXEMPT FIXED INCOME FUNDS     8    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Nevada - 1.4% continued
Clark County School District G.O. Limited Bonds, Series C (AGM Insured), 5.00%, 6/15/18	$	2,000	$	2,248
Clark County Transportation G.O. Limited Refunding Bonds, Series A (AMBAC Insured), 5.00%, 12/1/15		3,000		3,308
Clark County Water Reclamation District G.O. Limited Bonds, Series B, 4.00%, 7/1/13		1,225		1,269
Las Vegas G.O. Limited Refunding Bonds (AMBAC Insured) Escrowed to Maturity, 5.00%, 6/1/13		380		397
Las Vegas G.O. Limited Refunding Bonds (AMBAC Insured),, 5.00%, 6/1/13		1,220		1,268
Las Vegas Valley Water District G.O. Limited Refunding Bonds, Limited Tax, Series D, 5.00%, 6/1/15		770		862
Washoe County School Building District G.O. Limited Refunding Bonds, Series A (NATL-RE Insured) Escrowed to Maturity, 5.00%, 6/1/13		40		42
Washoe County School Building District G.O. Limited Refunding Bonds, Series A, Unrefunded Balance (NATL-RE Insured), 5.00%, 6/1/13		155		162
Washoe County School District G.O. Limited Tax Refunding Bonds, Series A, 4.00%, 6/1/19		1,825		2,071
				14,539
New Hampshire - 0.5%
Cheshire County G.O. Unlimited Bonds (NATL-RE Insured), 4.25%, 10/1/12		800		808
Manchester School Facilities Revenue Bonds (NATL-RE Insured), Prerefunded, 5.50%, 6/1/13		1,400		1,468
New Hampshire State Health & Education Facilities Authority Revenue Bonds, Series A, University System, 5.00%, 7/1/14		3,000		3,263
				5,539
New Jersey - 6.1%
Essex County Improvement G.O. Unlimited Bonds, Series A, 4.00%, 8/1/12	$	230	$	231
Garden State Preservation Trust Open Space & Farmland Revenue Bonds, Series A (AGM Insured), 5.50%, 11/1/13		500		535
Middlesex County Improvement Authority Revenue Bonds, Capital Equipment (County Gtd.), 4.50%, 9/15/12		100		101
Monmouth County G.O. Unlimited Bonds, 4.00%, 1/15/19		3,515		4,074
4.00%, 1/15/20		5,255		6,097
New Jersey State EDA Revenue Refunding Bonds, Small Project Loan Program, 5.00%, 8/15/12		275		277
New Jersey State EDA School Facilities Construction Revenue Bonds, Series T-3 (AGM Insured), 5.00%, Mandatory Put 9/1/14		2,500		2,718
New Jersey State EDA School Facilities Construction Revenue Refunding Bonds, Series EE, 5.00%, 9/1/18		10,000		11,867
New Jersey State Educational Facilities Authority Princeton Theological Revenue Bonds, Series A, 3.00%, 7/1/12		200		200
New Jersey State Environmental Infrastructure Trust Revenue Bonds, 5.00%, 9/1/20		2,280		2,864
New Jersey State G.O. Unlimited Refunding Bonds, 5.00%, 8/1/15		3,200		3,629
New Jersey State G.O. Unlimited Refunding Bonds, Series H, 5.25%, 7/1/13		250		263
New Jersey State G.O. Unlimited Refunding Bonds, Series Q, 5.00%, 8/15/17		10,000		11,919
New Jersey State Transit Corp. COP, Series A (AMBAC Insured), 5.25%, 9/15/14		2,000		2,181
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 12/15/12		395		404

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
New Jersey - 6.1% continued
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series D, Unrefunded Balance (AMBAC Insured), 5.00%, 6/15/18	$	4,000	$	4,390
New Jersey Transportation Trust Fund Authority Revenue Bonds, Series B, 5.00%, 6/15/19		2,250		2,691
Ocean County General Improvement G.O. Unlimited Bonds (XLCA Insured), 4.00%, 8/1/12		190		191
Union County G.O. Unlimited Bonds, 3.00%, 3/1/19		4,315		4,728
Union County G.O. Unlimited Bonds, Series B, 3.00%, 3/1/20		2,887		3,034
Union County G.O. Unlimited Bonds, Vocational Technology School (School Board Resource Fund Insured), 3.50%, 2/15/13		100		102
3.00%, 3/1/18		460		505
Wayne Township G.O. Unlimited Bonds (AGM Insured), 3.75%, 11/1/12		345		349
				63,350
New Mexico - 2.1%
Albuquerque G.O. Unlimited Bonds, Series A, 3.00%, 7/1/15		1,590		1,706
Albuquerque General Purpose G.O. Unlimited Bonds, Series A, 4.00%, 7/1/17		5,050		5,798
Las Cruces School District No. 2 G.O. Unlimited Bonds, Series A (State Aid Withholding), 4.00%, 8/1/13		775		805
Los Alamos County Gross Receipts Tax Improvement Revenue Bonds, 4.00%, 6/1/13		1,000		1,034
New Mexico State Severance Tax Revenue Refunding Bonds, Series D, 5.00%, 7/1/17		10,000		11,970
Santa Fe Public School District G.O. Unlimited Bonds (AGM Insured State Aid Withholding), 4.00%, 8/1/12		100		100
				21,413
New York - 9.1%
Hempstead Town G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured), 4.50%, 8/1/12		100		100
Long Beach City School District G.O. Unlimited Bonds (State Aid Withholding), 3.00%, 5/1/18		4,015		4,363
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (AGM Insured), 3.90%, 11/15/12		150		152
Metropolitan Transportation Authority Revenue Bonds, Series G, 5.00%, 11/15/17		2,235		2,626
Metropolitan Transportation Authority Revenue Refunding Bonds, Series E (NATL-RE Insured), 5.50%, 11/15/12		335		341
Metropolitan Transportation Authority Revenue Refunding Bonds, Series F (NATL-RE Insured), 5.00%, 11/15/12		4,000		4,070
New York City G.O. Unlimited Bonds, Series H-1, 5.00%, 3/1/16		5,000		5,736
New York City Health System & Hospital Corp. Revenue Bonds, Series A, (G.O. of Corp. Insured), 5.00%, 2/15/13		5,000		5,138
New York City Municipal Water Finance Authority Fiscal 2008 Water & Sewer System Revenue Bonds, Series C, 5.00%, 6/15/13		200		209
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Prerefunded, 5.25%, 8/1/13		5,035		5,310
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series E (NATL-RE Insured), Prerefunded, 5.25%, 2/1/13		110		113
New York City Transitional Finance Authority Future TRB, Unrefunded Balance, 3.50%, 8/1/12		175		176

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
New York - 9.1% continued
New York City Transitional Finance Authority Revenue Bonds, Series A, Future Tax Secured, 5.00%, 11/1/15	$	5,000	$	5,724
New York City Transitional Finance Authority Revenue Bonds, Series B, Future Tax Secured, 5.25%, 8/1/12		250		251
New York City Transitional Finance Authority Revenue Bonds, Subseries A-3, Future Tax Secured, Escrowed to Maturity, 3.00%, 8/1/12		230		231
New York City Transitional Finance Authority Revenue Bonds, Subseries E, Future Tax Secured, 4.00%, 11/1/12		195		198
New York City Transitional Finance Authority Revenue Bonds, Subseries B3, Future Tax Secured, 4.00%, 11/1/13		140		147
New York City Transitional Finance Authority Revenue Recovery Bonds, Subseries 3B-1, 5.00%, 11/1/12		160		163
New York City Transitional Finance Authority Subordinate Revenue Bonds, Series B, Future Tax Secured, 5.00%, 11/1/15		8,400		9,614
New York Fiscal 2008 G.O. Unlimited Bonds, Series A-1, 5.00%, 8/1/12		325		326
New York G.O. Unlimited Bonds, Series A, 3.75%, 8/1/12		100		100
2.50%, 8/1/13		100		102
New York G.O. Unlimited Bonds, Series B, 5.00%, 8/1/13		105		110
New York G.O. Unlimited Bonds, Series C, 5.00%, 8/1/12		245		246
5.50%, 8/1/12		295		296
New York G.O. Unlimited Bonds, Series G, 5.00%, 8/1/13		200		210
New York G.O. Unlimited Bonds, Series H, 5.00%, 8/1/13		150		158
New York G.O. Unlimited Bonds, Series I, 4.50%, 8/1/12		100		100
New York G.O. Unlimited Bonds, Series E-1, 4.25%, 10/15/13		100		105
New York State Dormitory Authority Lease Supported Debt Revenue Bonds, Series A, University Dormitory Facilities, 3.25%, 7/1/12		100		100
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series A, School District Financing Program (AGM Insured), 4.00%, 10/1/12		100		101
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series B, Cornell University, 3.00%, 7/1/12		200		200
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Series C, School Districts Financing Program (Assured Guaranty Insured State Aid Withholding), 5.00%, 10/1/16		1,905		2,195
5.00%, 10/1/17		2,880		3,368
New York State Dormitory Authority Personal Education Income TRB, Series A, 5.00%, 3/15/16		1,265		1,459
New York State Dormitory Authority Personal Income TRB, Series A, Economic Development & Housing, 5.00%, 12/15/12		170		174
New York State Dormitory Authority Supported Debt Revenue Bonds, Mental Health Services Facilities Improvement (State Appropriation Insured), 5.00%, 2/15/13		5,000		5,146
New York State Dormitory Authority Supported Debt Revenue Bonds, Series A, City University System Consolidated Fifth General (NATL-RE FGIC Insured), 5.00%, 7/1/13		240		251
New York State Dormitory Authority Supported Debt Revenue Bonds, Series B, City University System Consolidated Fifth General Resolution, 5.00%, 7/1/14		1,370		1,494

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
New York - 9.1% continued
New York State Dormitory Authority Supported Debt Revenue Bonds, Series B, Mental Health Services Facilities Improvement (State Appropriation Insured), 5.00%, 2/15/14	$	2,810	$	3,015
New York State Dormitory Authority Supported Debt Revenue Bonds, Series B, Upstate Community Colleges, 5.25%, 7/1/13		100		105
New York State Dormitory Authority Supported Debt Revenue Refunding Bonds, Series A, Consolidated Service Contract, 3.00%, 7/1/12		475		475
3.00%, 7/1/13		200		205
New York State Environmental Facilities Corp. Clean Water & Drinking Revolving Funds Revenue Bonds, Series K, New York City Municipal Water Project, 5.25%, 6/15/21		6,510		6,536
New York State Environmental Facilities Corp. Personal Income TRB, Series A (FGIC Insured) Prerefunded, 5.25%, 1/1/13		410		420
New York State G.O. Unlimited Bonds, Series A, 4.00%, 3/1/13		250		256
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series A Senior Lien (G.O. of Corp. Insured), 5.00%, 4/1/13		110		114
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series A-1, Sub Lien (AGM G.O. of Corp. Insured), 5.00%, 4/1/13		165		171
New York State Power Authority Revenue Bonds, Series A, 5.00%, 11/15/12		200		204
New York State Thruway Authority General Revenue Bonds, Second Series B (AGM Insured), 5.00%, 4/1/13		120		124
New York State Thruway Authority Local Highway & Bridge Revenue Bonds, 5.00%, 4/1/15		4,500		5,031
New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series A, 5.00%, 4/1/14		1,000		1,079
New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series A-1, 4.00%, 4/1/13		205		211
New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series B, 5.00%, 4/1/14		3,000		3,237
New York State Thruway Authority Services Revenue Refunding Bonds, Bridge Service Contract, 5.00%, 4/1/13		3,000		3,108
New York State Thruway Authority General Revenue Bonds, Second Series B (NATL-RE FGIC Insured), 5.00%, 4/1/13		150		156
New York State Urban Development Corp. Personal Income TRB, Series A-1, 4.00%, 12/15/12		100		102
5.00%, 12/15/12		175		179
New York State Urban Development Corp. Personal Income TRB, Series C, 4.50%, 3/15/13		150		155
New York State Urban Development Corp. Revenue Refunding Bonds, Series D, 5.00%, 1/1/16		3,000		3,421
Orange County G.O. Unlimited Refunding Bonds, Series B, 3.38%, 7/15/12		250		250
Orange County Various Purpose G.O. Unlimited Bonds (NATL-RE FGIC Insured), 4.25%, 7/1/12		150		150
Triborough Bridge & Tunnel Authority General Revenue Refunding Bonds, Series B (G.O. of Authority Insured), 5.25%, 11/15/18		5,000		5,093
Westchester County G.O. Unlimited Bonds, Series B, 3.00%, 6/1/13		175		180
				94,880

TAX-EXEMPT FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
North Carolina - 1.2%
Charlotte Water & Sewer System Revenue Bonds, Series B, 4.00%, 7/1/12	$	300	$	300
Mecklenburg County G.O. Unlimited Refunding Bonds, Series C, 5.00%, 3/1/16		10,000		11,601
North Carolina State Highway G.O. Unlimited Bonds, Prerefunded, 4.63%, 5/1/13		330		342
5.00%, 5/1/13		400		416
North Carolina State University At Raleigh General Revenue Bonds, Series A (AMBAC Insured), 5.00%, 10/1/12		100		101
Wake County G.O. Unlimited Bonds, Series A, Public Improvement, 5.00%, 4/1/13		100		104
Wilmington City G.O. Unlimited Bonds, Series A, 3.50%, 9/1/12		100		100
				12,964
Ohio - 4.1%
Cincinnati City School District G.O. Unlimited Bonds, Classroom Facilities Constructions & Improvement (AGM Insured), 5.00%, 12/1/12		3,000		3,060
Dublin City School District G.O. Unlimited Bonds, School Facilities Construction & Improvement, Prerefunded, 5.38%, 12/1/12		110		112
Lorain County Justice Center G.O. Limited Bonds (NATL-RE FGIC Insured), Prerefunded, 5.50%, 12/1/12		195		199
Montgomery County Various Purpose G.O. Limited Refunding Bonds, 1.50%, 12/1/12		2,550		2,562
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series A, 5.00%, 9/15/15		6,000		6,832
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series C, 5.00%, 9/15/14		2,500		2,750
Ohio State G.O. Unlimited Bonds, Series A, 4.00%, 9/1/12		100		101
Ohio State Higher Education G.O. Unlimited Bonds, Series B, Prerefunded, 5.25%, 11/1/12		360		366
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series C, 5.00%, 8/1/14		7,500		8,212
Ohio State Infrastructure Improvement G.O. Unlimited Bonds, Series A, 3.75%, 9/1/12		100		101
Ohio State Major New Street Infrastructure Project Revenue Bonds, Series 2010-1, 3.00%, 6/15/13		800		820
Ohio State New Infrastructure Major Project Revenue Bonds, Series 2007-1 (AGM Insured), 5.00%, 6/15/13		210		219
Ohio State University General Receipts Revenue Bonds, Series A, 5.25%, 12/1/12		175		179
Ohio State University General Receipts Revenue Bonds, Series A, Prerefunded, 5.00%, 12/1/12		2,035		2,076
Ohio State University Revenue Refunding Bonds, Series A, 5.00%, 12/1/14		5,000		5,539
Ohio State University Revenue Refunding Bonds, Series B, 4.00%, 6/1/13		100		104
Ohio State Water Quality Development Authority PCR Refunding Bonds, 5.00%, 12/1/14		2,250		2,498
Olentangy Local School District G.O. Unlimited Bonds, Series A, School Facilities Construction & Improvement, Prerefunded, 5.25%, 12/1/12		200		204
University of Akron Receipts Revenue Bonds, Series A (AGM Insured), 5.00%, 1/1/15		2,500		2,763
University of Cincinnati Receipts Revenue Bonds, Series C (Assured Guaranty Insured), 5.00%, 6/1/13		2,110		2,199
5.00%, 6/1/14		1,795		1,946
				42,842

NORTHERN FUNDS QUARTERLY REPORT    13    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Oklahoma - 0.2%
Oklahoma State Capital Improvement Authority State Facilities Revenue Bonds, Series F, Higher Education Project (AMBAC Insured), 5.00%, 7/1/13	$	150	$	157
Oklahoma State Department of Transportation Revenue Bonds, Series A, Grant Anticipation Notes, 5.00%, 9/1/12		100		101
Oklahoma State Municipal Power Authority Revenue Bonds, Series A, 5.00%, 1/1/15		1,575		1,733
Tulsa County Independent School District No. 1 Combined Purpose G.O. Unlimited Bonds, Series A, 2.00%, 6/1/14		270		277
Tulsa County Independent School District No. 1 Combined Purpose G.O. Unlimited Bonds, Series B, 4.00%, 8/1/12		225		226
				2,494
Oregon - 1.7%
Oregon State Board Higher Education G.O. Unlimited Bonds, Series A, 5.00%, 8/1/17		2,380		2,860
Oregon State Department of Administrative Services COP, Series C, 5.00%, 11/1/14		2,895		3,193
Oregon State Department of Administrative Services Lottery Revenue Bonds, Series A, 4.00%, 4/1/13		100		103
Oregon State Department of Administrative Services Refunding COP, Series D, 5.00%, 11/1/14		5,670		6,255
Oregon State University System G.O. Unlimited Refunding Bonds, Series A, 5.00%, 8/1/20		2,020		2,524
Portland Arena G.O. Limited Refunding Bonds, Series B, 5.00%, 6/1/13		100		104
Washington County Clean Water Services Sewer Revenue Bonds, Series A, Senior Lien, 4.00%, 10/1/15		2,435		2,702
				17,741
Pennsylvania - 3.1%
Delaware County G.O. Unlimited Bonds, Series A, 3.00%, 10/1/13		115		119
Delaware River Joint Toll Bridge Commission Revenue Bonds, 5.25%, 7/1/12		250		250
Hempfield School District Lancaster County G.O. Unlimited Bonds, Series A (State Aid Withholding), 3.00%, 10/15/18		300		319
Lehigh County General Purpose Authority Revenue Bonds, Saint Luke’s Hospital Bethlehem, Prerefunded, 5.38%, 8/15/13		1,000		1,058
Pennsylvania State G.O. Unlimited Bonds, First Series (NATL-RE Insured), 5.00%, 1/1/13		220		225
Pennsylvania State G.O. Unlimited Bonds, First Series A, 5.00%, 11/1/12		150		153
Pennsylvania State G.O. Unlimited Bonds, Third Series, 5.00%, 9/1/13		100		106
Pennsylvania State G.O. Unlimited Refunding Bonds, Second Series, 5.00%, 7/1/15		15,000		17,011
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Series A, University of Pennsylvania, 5.00%, 9/1/17		5,000		5,996
Pennsylvania State Turnpike Commission Registration Fee Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 7/15/12		300		301
University of Pittsburgh of the Commonwealth System of Higher Education Revenue Bonds, Series B, Capital Project (G.O. of University), 5.00%, 9/15/14		6,000		6,604
				32,142
Rhode Island - 0.0%
Rhode Island State Clean Water Finance Agency PCR Refunding Bonds, Subseries A, 5.00%, 10/1/14		150		165

TAX-EXEMPT FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Rhode Island - 0.0% continued
Rhode Island State Clean Water Finance Agency Water PCR Bonds, 5.00%, 10/1/12	$	100	$	101
				266
South Carolina - 1.9%
Greenville County School District Installment Purchase Revenue Bonds, Building Equity Sooner Tomorrow, Prerefunded, 5.50%, 12/1/12		1,140		1,177
Horry County School District G.O. Unlimited Refunding Bonds (SCSDE Insured), 5.00%, 3/1/18		5,705		6,871
South Carolina Capital Improvements G.O. Unlimited Bonds, 5.00%, 3/1/15		10,000		11,208
South Carolina State Public Service Authority Revenue Bonds, Series D, Santee Cooper, 5.00%, 1/1/13		110		113
South Carolina State Public Service Authority Revenue Bonds, Series E, Santee Cooper, 5.00%, 1/1/13		100		102
South Carolina State Public Service Authority Revenue Refunding Bonds, Series D (AGM Insured), 5.25%, 1/1/13		220		226
South Carolina State Transportation Infrastructure Bank Revenue Bonds, Series A (AMBAC Insured), 5.00%, 10/1/12		500		506
				20,203
Tennessee - 2.5%
Metropolitan Government Nashville & Davidson County G.O. Unlimited Refunding Bonds, Series D, 4.00%, 7/1/12		5,000		5,001
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue Bonds, Series B, Vanderbilt University (G.O. of University), 5.25%, 10/1/15		5,000		5,734
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue Refunding Bonds, Series B, Vanderbilt University (G.O. of University), 5.00%, 10/1/12		1,600		1,620
Metropolitan Government Nashville & Davidson County Water & Sewer Revenue Refunding Bonds, Subordinated Lien, 5.00%, 7/1/20		1,500		1,820
Shelby County G.O. Unlimited Refunding Bonds, Series A, 5.00%, 4/1/15		4,005		4,495
Shelby County G.O. Unlimited Refunding Bonds, Series A, Escrowed to Maturity, 5.00%, 4/1/15		995		1,118
Tennessee State G.O. Unlimited Bonds, Series A, 5.00%, 5/1/15		5,000		5,639
Tennessee State School Board Authority Revenue Bonds, Series B, Higher Educational Facilities 2nd Program, 4.00%, 5/1/14		1,030		1,100
				26,527
Texas - 5.7%
Alamo Community College District G.O. Limited Maintenance Tax Notes, 3.00%, 2/15/13		300		305
Austin Community College District G.O. Limited Bonds (AMBAC Insured), Prerefunded, 5.00%, 8/1/13		100		105
Austin Public Property Financial Contractual G.O. Limited Bonds, 4.25%, 5/1/13		100		103
Austin Water & Wastewater System Revenue Refunding Bonds (NATL-RE Insured), 5.00%, 11/15/13		100		107
Bell County G.O. Limited Tax Notes, Unrefunded Balance (AMBAC Insured), 5.00%, 2/15/13		170		175
Bryan Independent School District G.O. Unlimited Bonds, Series B (PSF Gtd.), 5.00%, 2/15/13		350		361

NORTHERN FUNDS QUARTERLY REPORT    15    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Texas - 5.7% continued
Carrollton Refunding & Improvement G.O. Limited Bonds, 2.00%, 8/15/12	$	250	$	251
Cypress-Fairbanks Independent School District G.O. Unlimited Bonds, Series 2005-2 (PSF Gtd.), 3.13%, 2/15/17		7,140		7,866
Cypress-Fairbanks Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 3.25%, 2/15/17		7,000		7,752
Dallas County Schools G.O. Limited Bonds, Public Property Finance Contractual Obligation, 3.00%, 12/1/13		250		259
Dallas G.O. Limited Bonds, Equipment Acquisition Contractual Obligation, 4.00%, 8/15/12		500		502
Dallas Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF Gtd.), 5.50%, 2/15/17		10,000		12,092
Dallas Waterworks & Sewer System Revenue Refunding Bonds (AMBAC Insured), 5.00%, 10/1/12		250		253
Fort Worth G.O. Limited Certificates (AGM Insured), Prerefunded, 4.38%, 3/1/13		1,000		1,028
Harris County G.O. Limited Refunding Bonds, Series A, Permanent Improvement, 4.00%, 10/1/12		100		101
Harris County Toll Road G.O. Unlimited Refunding Bonds, Sub Lien (NATL-RE FGIC Insured), 6.00%, 8/1/12		150		151
Harris County Toll Road G.O. Unlimited Subordinate Refunding Bonds, (AGM Insured), Prerefunded, 5.25%, 8/15/12		500		503
Harris County Toll Road Revenue Refunding Bonds, Senior Lien (AGM Insured), Prerefunded, 5.38%, 8/15/12		150		151
Highland Park Independent School District G.O. Unlimited Bonds, School Building Project, 4.00%, 2/15/13		100		102
Houston Combined Utility System Revenue Refunding Bonds, First Lien Series C, 5.00%, 11/15/13		300		319
Houston Public Improvement G.O. Limited Bonds, Series E (AMBAC Insured), Prerefunded, 5.00%, 3/1/15		3,000		3,352
Houston Public Improvement G.O. Limited Refunding Bonds, Series A, 5.00%, 3/1/17		5,000		5,918
Killeen Waterworks & Sewer System Revenue Bonds (NATL-RE Insured), 3.75%, 8/15/12		100		100
La Joya Independent School District Capital Appreciation G.O. Unlimited Refunding Bonds (PSF Gtd.), 1.00%, 8/1/13(1)		125		124
Lower Colorado River Authority Revenue Bonds, Series 2012-1, 5.00%, 5/15/15		1,510		1,692
Lower Colorado River Authority Revenue Refunding Bonds, 5.00%, 5/15/13		490		510
Lower Colorado River Authority Revenue Refunding Bonds, Escrowed to Maturity, 5.00%, 5/15/13		5		5
5.00%, 5/15/13		5		5
5.00%, 5/15/15		5		6
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Escrowed to Maturity, 5.00%, 5/15/15		65		73
Lower Colorado River Authority Revenue Refunding Bonds, Unrefunded Balance, 5.00%, 5/15/13		1,000		1,041
Lubbock County G.O. Limited Bonds (NATL-RE FGIC Insured), 4.00%, 2/15/13		350		358
Mansfield Independent School District G.O. Unlimited Refunding Bonds, 4.00%, 2/15/13		150		154
Mesquite Independent School District G.O. Unlimited Refunding Bonds, Series A (PSF Gtd.), 5.00%, 8/15/12		350		352
North Texas State Municipal Water District System Revenue Bonds, 5.00%, 9/1/13		400		422

TAX-EXEMPT FIXED INCOME FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Texas - 5.7% continued
Round Rock G.O. Limited Refunding Bonds (AMBAC Insured), 5.00%, 8/15/13	$	190	$	200
San Antonio Electric & Gas Revenue Refunding Bonds, Unrefunded Balance, 5.25%, 2/1/13		190		196
San Antonio General Improvement G.O. Limited Refunding Bonds, 4.00%, 8/1/12		1,585		1,590
San Marcos G.O. Limited Certificates (AMBAC Insured), Prerefunded, 4.00%, 8/15/12		250		251
San Marcos Waterworks & Wastewater System Revenue Bonds (AGM Insured), Prerefunded, 4.45%, 8/15/12		175		176
Tarrant County G.O. Limited Tax Notes, 4.00%, 7/15/12		150		150
Texas State PFA G.O. Unlimited Refunding Bonds, Series A, 5.00%, 10/1/15		7,000		7,995
Texas State PFA G.O. Unlimited Refunding Bonds, 5.50%, 10/1/12		2,260		2,291
University of Texas Financing System Revenue Refunding Bonds, Series A, 5.25%, 8/15/12		500		503
University of Texas Financing System Revenue Refunding Bonds, Series C, 5.00%, 8/15/12		100		101
				60,051
Utah - 3.6%
Davis County School District G.O. Unlimited Bonds (School Board Guaranty Program), 3.25%, 6/1/13		330		339
Davis County School District G.O. Unlimited Refunding Bonds, Series C (School Board Guaranty Program), 5.00%, 6/1/18		7,540		9,142
Intermountain Power Agency Supply Revenue Refunding Bonds, Series A, 5.00%, 7/1/12		10,000		10,003
5.50%, 7/1/14		3,500		3,679
Intermountain Power Agency Supply Revenue Refunding Bonds, Sub Series A (AMBAC Insured), 5.00%, 7/1/13		125		131
Uintah County Municipal Building Authority Lease Revenue Bonds, 4.50%, 6/1/14		650		695
Utah State G.O. Unlimited Bonds, Series C, 3.00%, 7/1/12		1,000		1,000
Utah State G.O. Unlimited Bonds, Series A, 5.00%, 7/1/15		10,160		11,538
Utah State G.O. Unlimited Refunding Bonds, Series B, 5.38%, 7/1/12		1,000		1,000
				37,527
Vermont - 0.0%
Vermont State Educational & Health Buildings Financing Agency Revenue Bonds, Series A, Middlebury College Project, Escrowed to Maturity, 5.25%, 11/1/12		225		229
Virginia - 5.8%
Arlington County G.O. Unlimited Refunding Bonds, Series D, 4.00%, 8/1/15		3,235		3,583
Fairfax County Public Improvement G.O. Unlimited Refunding Bonds, Series C (State Aid Withholding), 5.00%, 10/1/15		10,235		11,719
Henrico County Public Improvement G.O. Unlimited Bonds, Series A, 2.00%, 8/1/12		1,790		1,793
Leesburg G.O. Unlimited Refunding Bonds, Series B (NATL-RE Insured State Aid Withholding), 4.00%, 9/15/12		125		126
Loudoun County G.O. Unlimited Bonds, Series B, 5.00%, 11/1/17		10,000		12,105
Loudoun County Public Improvement G.O. Unlimited Bonds, Series B, (State Aid Withholding), 5.00%, 12/1/13		1,000		1,068
Norfolk Capital Improvement G.O. Unlimited Bonds, Series A, 2.25%, 11/1/13		675		693
Virginia State College Building Authority Educational Facilities Revenue Bonds, Series A, Public Higher Education Financing Programme, 5.00%, 9/1/12		200		202

NORTHERN FUNDS QUARTERLY REPORT    17    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Virginia - 5.8% continued
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects, 5.00%, 5/15/20	$	8,170	$	10,092
Virginia State Public Building Authority Public Facilities Revenue Refunding Bonds, Series B, 5.00%, 8/1/12		1,355		1,361
Virginia State Public School Authority Revenue Bonds, Series B-1, School Financing 1997 (State Aid Withholding), 5.00%, 8/1/16		1,000		1,173
Virginia State Public School Authority Revenue Refunding Bonds, Series C, School Financing (State Aid Withholding), 5.00%, 8/1/19		10,000		12,333
Virginia State Resources Authority Infrastructure Revenue Bonds, Senior Non Ace Series A, Pooled Financing Program, 5.00%, 11/1/15		4,025		4,601
Virginia State Resources Senior Authority Infrastructure Revenue Bonds, Unrefunded Balance, 3.00%, 11/1/13		130		135
				60,984
Washington - 4.2%
Central Puget Sound Regional Transportation Authority Sales & Use TRB, Series A (AMBAC Insured), 3.63%, 11/1/13		100		105
Energy Northwest Electric Revenue Bonds, Series A, 5.50%, 7/1/12		200		200
Energy Northwest Electric Revenue Bonds, Series F, Columbia Generating Station (NATL-RE Insured), 5.00%, 7/1/12		125		125
Energy Northwest Electric Revenue Refunding Bonds, Series A, Project 1, 5.00%, 7/1/12		1,270		1,270
5.00%, 7/1/14		3,500		3,821
5.50%, 7/1/14		1,200		1,322
Energy Northwest Electric Revenue Refunding Bonds, Series A, Project 3, 5.00%, 7/1/15		5,000		5,659
5.00%, 7/1/18		10,000		12,108
Energy Northwest Electric Revenue Refunding Bonds, Series A, Project 3 (AMBAC Insured), 5.00%, 7/1/13		150		157
Energy Northwest Electric Revenue Refunding Bonds, Series C, Project 3, 5.00%, 7/1/12		150		150
Energy Northwest Electric Revenue Refunding Bonds, Series D, Project 1, 5.00%, 7/1/12		5,615		5,617
Energy Northwest Electric Revenue Refunding Bonds, Series D, Columbia Generating, 5.00%, 7/1/12		1,495		1,496
Franklin County Public Utility District No. 1 Electric Revenue Refunding Bonds (NATL-RE Insured), Prerefunded, 5.63%, 9/1/12		1,000		1,009
King County G.O. Limited Tax Refunding Bonds (AGM Insured), 4.00%, 1/1/13		100		102
Pierce County School District No. 320 Sumner G.O. Unlimited Refunding Bonds (AGM School Board Guaranty Insured), 4.00%, 12/1/12		100		102
Port Seattle Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 7/1/12		200		200
Seattle Municipal Light & Power Improvement Revenue Refunding Bonds, 5.00%, 4/1/13		200		207
Snohomish County Public Utility District No. 1 Electric Revenue Refunding Bonds (AGM Insured), 5.00%, 12/1/17		3,000		3,387
Snohomish County Public Utility System District No. 1 Electric Revenue Refunding Bonds, 2.00%, 12/1/13		100		102
Washington State G.O. Unlimited Bonds, Series B, Motor Vehicle Fuel Tax, 5.00%, 7/1/13		100		105

TAX-EXEMPT FIXED INCOME FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.9% continued
Washington - 4.2% continued
Washington State G.O. Unlimited Bonds, Series D, 4.25%, 1/1/13	$	145	$	148
Washington State G.O. Unlimited Refunding Bonds, Series R-2011-A, 5.00%, 1/1/18		5,200		6,237
				43,629
Wisconsin - 1.5%
Milwaukee City G.O. Unlimited Promissory Notes, Series N1, 3.00%, 2/15/13		150		152
5.00%, 2/15/16		4,300		4,963
Milwaukee County G.O. Unlimited Refunding Bonds, Series A, 3.40%, 8/1/14		5,000		5,314
Racine Water Works System Mortgage Revenue Bonds (NATL-RE Insured), 4.00%, 9/1/12		100		101
Wisconsin State G.O. Unlimited Bonds, Series D, 5.00%, 5/1/15		4,625		5,208
Wisconsin State Transportation Revenue Refunding Bonds (AGM Insured), 5.25%, 7/1/12		225		225
				15,963
Total Municipal Bonds (Cost $938,543)				980,921
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2.0%
AIM Tax-Free Cash Reserve Portfolio		95,960	$	96
Northern Institutional Funds - Tax-Exempt Portfolio(2) (3)		21,430,901		21,431
Total Investment Companies (Cost $21,527)				21,527
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 3.0%
Citizens Property Insurance Corp. Senior Secured Revenue Bonds, Series A-2, 2.50%, 6/1/13	$	5,000	$	5,088
Michigan State Finance Authority Revenue Bonds, Series C1, State Aid Notes, 2.00%, 8/20/12		7,500		7,518
Richardson G.O. Limited Bonds, Series B, 2.00%, 2/15/13		900		910
South Carolina Economic Development G.O. Unlimited Refunding Bonds, Series A (State Aid Withholding), 3.00%, 4/1/13		20		20
Texas State Transportation TRANS, Series A, 2.50%, 8/30/12		17,500		17,567
Total Short-Term Investments (Cost $31,095)				31,103
Total Investments - 98.9% (Cost $991,165)				1,033,551
Other Assets less Liabilities - 1.1%				11,298
NET ASSETS - 100.0%			$	1,044,849

(1) Zero coupon bond reflects effective yield on the date of purchase.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(3) At March 31, 2012, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $45,177,000 with net sales of approximately $23,746,000 during the three months ended June 30, 2012.

Percentages shown are based on Net Assets.

At June 30, 2012, the industry sectors for the Short-Intermediate Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
General Obligation		34.6	%
General		19.4
School District		13.4
Power		7.8
Transportation		6.2
Higher Education		5.4
All other sectors less than 5%		13.2
Total		100.0	%

NORTHERN FUNDS QUARTERLY REPORT     19    TAX-EXEMPT FIXED INCOME FUNDS

JUNE 30, 2012 (UNAUDITED)

At June 30, 2012, the credit quality distribution for the Short-Intermediate Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		28.7	%
AA		58.5
A		7.0
SP1+/MIG1		2.9
SP1/MIG1		0.3
Not Rated		0.5
Cash and Equivalents		2.1
Total		100.0	%

* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	991,165
Gross tax appreciation of investments	$	43,038
Gross tax depreciation of investments		(652	)
Net tax appreciation of investments	$	42,386

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Short-Intermediate Tax-Exempt Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	980,921	(1)	$	—	$	980,921
Investment Companies		21,527		—			—		21,527
Short-Term Investments		—		31,103			—		31,103
Total Investments	$	21,527	$	1,012,024		$	—	$	1,033,551

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

TAX-EXEMPT FIXED INCOME FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued JUNE 30, 2012 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guarantee Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

COP - Certificate of Participation

EDA - Economic Development Authority

FGIC - Financial Guaranty Insurance Corporation

G.O. - General Obligation

Gtd. - Guaranteed

NATL-RE - National Public Finance Guarantee Corp.

PCR - Pollution Control Revenue

PFA - Public Finance Authority

PSF - Permanent School Fund

TRANS - Tax and Revenue Anticipation Notes

TRB - Tax Revenue Bonds

XLCA - XL Capital Assurance

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes/zero coupon bonds, 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, the next interest reset/ puttable date for floating and variable rate 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 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.

NORTHERN FUNDS QUARTERLY REPORT     21    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.1%
Alaska - 0.3%
Alaska State General Housing Finance Corp. Revenue Bonds, Series B (NATL-RE G.O. of Corp. Insured), 5.25%, 12/1/25	$	3,000	$	3,273
Arizona - 1.6%
Arizona State Transportation Board Highway Revenue Bonds, Series B, 5.00%, 7/1/24		5,000		5,843
Phoenix Civic Plaza Improvement Corp. Excise TRB, Subordinated Series A (BHAC-CR FGIC Insured), 5.00%, 7/1/41		5,000		5,310
Salt River Project Agricultural Improvement & Power District Electric Revenue Refunding Bonds, Series A, 5.00%, 12/1/23		6,000		7,357
				18,510
California - 10.9%
Alvord Unified School District G.O. Unlimited Refunding Bonds, Series A (AGM-CR NATL-RE Insured), 5.90%, 8/1/30		10,000		12,558
Brentwood Infrastructure Financing Authority Water Revenue Bonds, 5.75%, 7/1/38		1,500		1,676
California State G.O. Unlimited Bonds, Series 2007, Unrefunded Balance, 5.75%, 5/1/30		130		130
California State G.O. Unlimited Refunding Bonds, 6.25%, 11/1/34		2,830		3,399
California State Health Facilities Financing Authority Revenue Bonds, Series A, Lucile Packard Childrens Hospital, 5.00%, 8/15/51		5,000		5,348
California State Health Facilities Financing Authority Revenue Bonds, Series A, Memorial Health Services, 5.00%, 10/1/33		2,500		2,802
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 4/1/42		15,400		16,377
California State Various Purpose G.O. Unlimited Refunding Bonds, 5.00%, 4/1/38		10,000		10,498
Carlsbad Unified School District Convertible Capital Appreciation Election G.O. Unlimited Bonds, Series B, 3.19%, 5/1/34(1)		2,500		1,901
Long Beach Harbor Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured), 5.00%, 5/15/21		1,000		1,091
Los Angeles County Sanitation Districts Financing Authority Capital Project Revenue Bonds, Series A (AGM Insured), Partially Prerefunded, 5.00%, 10/1/21		1,000		1,054
Los Angeles Department of Water & Power Waterworks Revenue Bonds, Series A, 5.00%, 7/1/43		10,000		11,176
Menlo Park G.O. Unlimited Bonds, Prerefunded, 5.25%, 8/1/12		1,000		1,015
Metropolitan Water District of Southern California State Revenue Bonds, Series A, 5.00%, 7/1/32		6,105		6,891
Modesto Irrigation District Capital Improvements COP, Series A, 5.75%, 10/1/29		7,020		7,931
Sacramento County Airport System Senior Revenue Bonds, 5.00%, 7/1/28		1,280		1,424
San Diego County Regional Transportation Commission Revenue Bonds, Series A, 5.00%, 4/1/48		5,000		5,527
San Francisco City & County Airports Commission Revenue Bonds, Series E, 5.25%, 5/1/32		5,000		5,625
San Francisco City & County Public Utilities Commission Water Revenue Bonds, 5.00%, 11/1/43		10,000		11,020
San Joaquin County Transportation Authority Measure K Limited TRB, Series A, 5.25%, 3/1/31		5,000		5,726
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1 Election 2008, 6.00%, 7/1/43		1,100		1,334
University of California General Revenue Bonds, Series Q, 5.25%, 5/15/27		2,500		2,910
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election 2002, 5.50%, 8/1/33		7,000		8,319
				125,732

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.1% continued
Colorado - 1.5%
Colorado Springs Utilities System Revenue Refunding Bonds, Series B, 5.00%, 11/15/25	$	2,500	$	3,021
Colorado State Board of Governors University Enterprise System Revenue Refunding Bonds, Series B (State Higher Education Intercept Program Insured), 5.00%, 3/1/24		2,000		2,477
Denver City & County Airport System Revenue Bonds, Series A, 5.25%, 11/15/29		3,000		3,376
Denver City & County Special Facilities Airport Revenue Bonds, Series A (AMT), Rental Car Project (NATL-RE Insured), 6.00%, 1/1/14		2,275		2,284
Mesa County Valley School District No. 51 Grand Junction G.O. Unlimited Refunding Bonds (State Aid Withholding Insured), 5.00%, 12/1/23		5,000		6,182
				17,340
Connecticut - 0.9%
Connecticut State G.O. Unlimited Bonds, Series D, 5.00%, 11/1/23		2,500		3,051
Connecticut State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 6/1/22		5,000		6,272
Connecticut State Higher Education Supplemental Loan Authority Revenue Refunding Bonds, Series A (AMT), Senior Family Education Loan Program (NATL-RE Insured), 4.75%, 11/15/18		735		789
				10,112
Delaware - 0.2%
Delaware State Housing Authority Senior SFM Revenue Bonds, Series A (AMT) (AGM Insured), 5.80%, 7/1/35		1,980		2,070
District of Columbia - 2.1%
District of Columbia University Revenue Bonds, Series D, Georgetown University (BHAC-CR Insured), 5.50%, 4/1/36		1,010		1,122
District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, 5.50%, 10/1/39		20,000		23,018
				24,140
Florida - 5.5%
Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 9/1/24		5,235		5,931
5.00%, 9/1/25		1,000		1,122
Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT), 5.00%, 9/1/23		2,500		2,708
Citizens Property Insurance Corp. Senior Secured Revenue Bonds, Series A-1, 5.00%, 6/1/22		7,000		7,832
Florida State Board of Education G.O. Unlimited Bonds, Escrowed to Maturity, 9.13%, 6/1/14		325		374
Florida State Board of Education G.O. Unlimited Bonds, Unrefunded Balance, 9.13%, 6/1/14		380		409
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series A, Capital Outlay, 2.50%, 6/1/22		1,500		1,534
Florida State Broward County G.O. Unlimited Bonds, Escrowed to Maturity, 10.00%, 7/1/14		9,535		10,418
Florida State Department of Transportation Right of Way G.O. Unlimited Bonds, 5.25%, 7/1/37		10,000		11,494
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 5.25%, 10/1/19		2,000		2,397
6.25%, 10/1/31		3,000		3,570
Miami-Dade County Aviation International Airport Revenue Bonds, Series A, 5.50%, 10/1/29		2,500		2,821
Orlando Utilities Commission Revenue Refunding Bonds, Subseries D, Escrowed to Maturity, 6.75%, 10/1/17		6,805		7,927
Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.50%, 10/1/15		4,855		5,217
				63,754

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.1% continued
Georgia - 1.5%
Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, 5.50%, 1/1/38	$	7,500	$	8,417
Atlanta Airport Revenue Bonds, Series B, 5.00%, 1/1/37		1,000		1,100
Georgia State Municipal Electric Authority Revenue Bonds, Series B, Non-Callable Certificates (FGIC-TCRS Insured), 6.38%, 1/1/16		2,300		2,612
Metropolitan Atlanta Rapid Transit Authority Revenue Refunding Bonds, Series A, Third Indenture, 4.00%, 7/1/40		5,000		4,959
				17,088
Hawaii - 3.0%
Hawaii State Airports System Revenue Bonds, Series A, 5.25%, 7/1/29		5,000		5,603
Hawaii State G.O. Unlimited Refunding Bonds, Series DZ, 5.00%, 12/1/28(2)		5,000		5,928
Honolulu City & County G.O. Unlimited Bonds, Series D, 5.25%, 9/1/34		1,000		1,143
Honolulu City & County Wastewater System Revenue Bonds, Senior Series A (NATL-RE FGIC Insured), 5.00%, 7/1/35		15,000		16,391
University of Hawaii Revenue Bonds, Series A, 5.25%, 10/1/34		5,000		5,648
				34,713
Illinois - 9.8%
Bolingbrook Capital Appreciation G.O. Unlimited Bonds, Series B, Unrefunded Balance (NATL-RE Insured), 13.34%, 1/1/33(1)		505		163
Chicago Midway Airport Revenue Bonds, Series B (NATL-RE Insured), 5.00%, 1/1/31		2,000		2,005
Chicago O’Hare International Airport General Revenue Refunding Bonds, Second Lien (AMT) (AMBAC Insured), 5.50%, 1/1/18		5,000		5,015
Chicago Sales TRB, Series A, 5.00%, 1/1/41		5,000		5,487
Illinois State Educational Facilities Authority Revenue Bonds, Northwestern University, 5.00%, 12/1/38		5,505		5,790
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, 6.00%, 3/1/38		4,850		5,440
5.25%, 3/1/40		2,500		2,744
Illinois State Finance Authority Revenue Bonds, Series A, DePaul University, 6.13%, 10/1/40		5,000		5,766
Illinois State Finance Authority Revenue Bonds, Series B, Loyola University Chicago, 5.00%, 7/1/42		5,000		5,388
Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL-RE FGIC Insured), 5.25%, 2/1/27		5,000		5,535
Illinois State Sales TRB, 5.25%, 6/15/24		5,000		5,190
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series B, 5.50%, 1/1/33		10,500		11,455
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series B (BHAC-CR Insured), 5.50%, 1/1/33		5,000		5,481
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series B, McCormick Place (AGM Insured), 5.00%, 6/15/50		12,500		13,072
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series B-2, McCormick Project, 5.00%, 6/15/50		5,000		5,213
Metropolitan Pier & Exposition Authority Dedicated State TRB, Series A, McCormick Place Expansion (NATL-RE Insured), 5.25%, 6/15/42		5,000		5,059
Metropolitan Pier & Exposition Authority Revenue Bonds, Series B, McCormick Place Project, 5.00%, 6/15/52(2)		15,000		15,769
Metropolitan Pier & Exposition Authority Revenue CABS, Series B, McCormick Place Project, 13.09%, 12/15/41(1)(2)		10,000		2,058

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.1% continued
Illinois - 9.8% continued
20.93%, 12/15/51(1) (2)	$	10,000	$	1,101
Regional Transportation Authority Revenue Bonds, Series A (AGM G.O. of Authority Insured), 5.75%, 6/1/34		2,900		3,621
Springfield Water Revenue Bonds, 5.50%, 3/1/32		2,300		2,571
				113,923
Indiana - 1.5%
Hamilton County Public Building Corp. First Mortgage Revenue Bonds, 7.25%, 8/1/13		4,200		4,354
Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien - CWA Authority, 5.25%, 10/1/38		2,500		2,812
Indiana State Office Building Commission Revenue Bonds, Series B (NATL-RE Insured), 7.40%, 7/1/15		5,620		6,291
Indianapolis Gas Utility Revenue Refunding Bonds, Series B (NATL-RE FGIC Insured), 3.50%, 6/1/18		3,280		3,590
				17,047
Kansas - 0.9%
Wichita G.O. Unlimited Renewal & Improvement Temporary Notes, Series 248, 0.30%, 8/15/13		10,800		10,801
Louisiana - 2.7%
East Baton Rouge Parish Sewer Commission Revenue Bonds, Series A, 5.25%, 2/1/39		5,000		5,523
Louisiana State G.O. Unlimited Bonds, Series A, 5.00%, 8/1/23		10,000		12,387
Louisiana State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 7/15/24		5,000		6,089
Louisiana State Gas & Fuels Tax Revenue Refunding Bonds, Series A-1, 5.00%, 5/1/26		6,000		7,178
				31,177
Maryland - 2.0%
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series B, 3.00%, 3/15/23		1,900		2,012
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series C, 4.00%, 8/15/21		5,000		5,944
Maryland State G.O. Unlimited Bonds, Series B, 5.00%, 8/1/21		5,610		6,876
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, John Hopkins Health System, 5.00%, 7/1/27		2,200		2,601
Prince Georges County G.O. Limited Bonds, Series A, Consolidated Public Improvement, 5.00%, 9/15/21		5,000		6,381
				23,814
Massachusetts - 9.2%
Massachusetts Bay Transportation Authority Sales TRB, Senior Series A, 5.00%, 7/1/30		5,675		7,091
5.25%, 7/1/31		4,130		5,288
5.25%, 7/1/34		7,000		9,033
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series D, 5.00%, 10/1/22		5,000		6,195
5.00%, 10/1/23		14,375		17,576
Massachusetts State G.O. Limited Refunding Bonds, Series B, 5.25%, 8/1/21		2,500		3,182
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series A, Massachusetts Institute of Technology (G.O. of University Insured), 5.00%, 7/1/19		5,000		5,883
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series J1, Partners Healthcare, 5.25%, 7/1/29		5,000		5,622
Massachusetts State School Building Authority Sales Tax Revenue Refunding Bonds, Senior Series A, 5.00%, 8/15/22(2)		10,000		12,585
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), 5.00%, 8/15/30		5,000		5,520

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.1% continued
Massachusetts - 9.2% continued
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Series 14, State Revolving Fund, 5.00%, 8/1/27	$	10,000	$	11,952
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Subseries A, MWRA Program, 6.00%, 8/1/19		3,000		3,913
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B, (AGM Insured), 5.25%, 8/1/28		5,000		6,412
5.25%, 8/1/31		5,000		6,406
				106,658
Michigan - 1.7%
Detroit City School District G.O. Unlimited Refunding Bonds, Series A, School Building & Site Improvement (Q-SBLF Insured), 5.00%, 5/1/22		6,750		7,918
Michigan State Building Authority Revenue Refunding Bonds, Series I-A, Facilities Program, 5.50%, 10/15/45		2,565		2,891
Michigan State Building Authority Revenue Refunding Bonds, Series II-A, Facilities Program, 5.38%, 10/15/36		5,000		5,636
Michigan State G.O. Unlimited Refunding Bonds, Series A, Environmental Program, 1.00%, 12/1/25		3,050		2,186
Wayne Charter County Airport Revenue Refunding Bonds, Series C (NATL-RE FGIC Insured), Prerefunded, 5.38%, 12/1/12		905		924
Wayne Charter County Airport Revenue Refunding Bonds, Series C, Unrefunded Balance (NATL-RE FGIC Insured), 5.38%, 12/1/15		95		97
				19,652
Minnesota - 0.5%
Farmington Independent School District No. 192 G.O. Unlimited Bonds, Series B, School Building Project, (AGM School District Credit Program Insured), 5.00%, 2/1/26		5,000		5,439
Mississippi - 1.0%
Mississippi State G.O. Unlimited Bonds, Series A, Capital Improvement Projects, 5.00%, 10/1/36		10,000		11,363
Mississippi State Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured), 5.40%, 6/1/38		35		36
				11,399
Nebraska - 0.8%
Omaha Public Power District Revenue Bonds, Series B, 5.00%, 2/1/28		5,355		6,280
Omaha Public Power System District Revenue Bonds, Series A, 5.50%, 2/1/39		2,500		2,797
				9,077
Nevada - 0.4%
Clark County Airport System Revenue Bonds, Series C, Sub Lien (AGM Insured), 5.00%, 7/1/26		1,670		1,842
Clark County Passenger Facility Charge Revenue Bonds, Series A-1 (AMT), Las Vegas-McCarran (AMBAC Insured), 5.00%, 7/1/26		2,820		2,943
				4,785
New Hampshire - 1.0%
New Hampshire State Health University System & Education Facilities Authority Revenue Bonds, Dartmouth College, 5.25%, 6/1/39		10,000		11,577
New Jersey - 2.3%
New Jersey State Health Care Facilities Financing Authority Revenue Bonds, Atlantic City Medical, Prerefunded, 6.25%, 7/1/12		445		445
New Jersey State Transportation Trust Fund Authority Capital Appreciation System Revenue Bonds, Series C (AMBAC Insured), 9.49%, 12/15/28(1)		1,000		466
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, 5.00%, 6/15/42		10,000		10,952
New Jersey State Turnpike Authority Growth & Income Securities Revenue Bonds, Series B (AMBAC Insured), 2.21%, 1/1/35(1)		5,000		4,593

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.1% continued
New Jersey - 2.3% continued
North Hudson Sewerage Authority Gross Revenue Lease Certificates, Series A, 5.00%, 6/1/42	$	10,000	$	10,834
				27,290
New Mexico - 0.3%
New Mexico State Mortgage Finance Authority SFM Revenue Bonds, Series 1-C-2 (Collateralized by GNMA/ FNMA/FHLMC Securities), 5.00%, 9/1/26		3,110		3,398
New York - 16.2%
Long Island Power Authority General Revenue Bonds, Series A, 6.00%, 5/1/33		5,000		5,945
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A, 5.50%, 11/15/39		10,000		11,176
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (NATL-RE Insured), 5.00%, 11/15/21		5,000		5,765
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (NATL-RE-IBC Insured), 5.00%, 11/15/30		15,000		15,231
Metropolitan Transportation Authority Revenue Bonds, Series G, 5.25%, 11/15/26		5,000		5,777
New York City G.O. Unlimited Refunding Bonds, Series F, 5.00%, 8/1/21		5,000		6,107
New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Series A, Fiscal 2009, 5.75%, 6/15/40		10,000		12,072
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series D, Fiscal 2011, 5.00%, 2/1/23		3,905		4,663
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E-1, 5.00%, 2/1/26		5,000		5,928
5.00%, 2/1/42		5,000		5,576
New York City Transitional Finance Authority Future TRB (NATL-RE FGIC Insured), Prerefunded, 5.25%, 2/1/13		4,880		5,025
New York City Transitional Finance Authority Future TRB, Subseries F-1, 5.00%, 5/1/34		5,000		5,669
5.00%, 5/1/39		5,000		5,602
New York City Transitional Finance Authority Future TRB, Unrefunded Balance (NATL-RE FGIC Insured), 5.25%, 2/1/17		120		124
New York State Dormitory Authority Non-State Supported Debt Revenue Bonds, Series B, School Districts Financing Program (Assured Guaranty State Aid Withholding), 5.25%, 10/1/23		5,000		5,824
New York State Dormitory Authority Personal Income General Purpose Tax Revenue Refunding Bonds, Series A, 5.00%, 12/15/22		7,000		8,738
New York State Dormitory Authority Revenue Bonds, Series A, Court Facilities Lease Issue (AMBAC Insured), 5.50%, 5/15/28		5,000		6,238
New York State Dormitory Education Authority Personal Income Tax Revenue Refunding Bonds, Series B (AMBAC Insured), 5.50%, 3/15/30		5,000		6,766
New York State Dormitory Education Authority Personal Income TRB, Series B, 5.75%, 3/15/36		11,980		14,160
New York State Environmental Facilities Corp. Clean Water & Drinking Revenue Bonds, Series B, Municipal Water Revolving Funds, 5.00%, 6/15/41		10,000		11,293
New York State Environmental Facilities Corp. Clean Water & Drinking Revenue Bonds, Series B, Revolving Funds Pooled Financing Program, 5.50%, 4/15/35		5,000		6,901
New York State Thruway Authority General Revenue Bonds, Series I, 5.00%, 1/1/37(2)		2,500		2,733
4.13%, 1/1/42(2)		2,500		2,485
New York State Thruway Transportation Authority Personal Income TRB, Series A, 5.25%, 3/15/21		5,000		5,995

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.1% continued
New York - 16.2% continued
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 10/15/19	$	5,000	$	5,535
5.00%, 10/15/24		10,000		10,970
Tobacco Settlement Financing Corp. Asset-Backed Revenue Bonds, Series B-1C, 5.50%, 6/1/19		2,500		2,616
Triborough Bridge & Tunnel Authority General Revenue Bonds, Series A, 4.00%, 11/15/42		2,500		2,506
				187,420
North Carolina - 1.0%
North Carolina State Eastern Municipal Power Agency System Revenue Bonds, Series A, Escrowed to Maturity, 6.50%, 1/1/18		2,655		3,432
North Carolina State Eastern Municipal Power Agency System Revenue Refunding Bonds, Series B (NATL-RE-IBC Insured), 6.00%, 1/1/22		6,015		7,733
				11,165
Ohio - 2.8%
Ohio State Common Schools G.O. Unlimited Bonds, Series B, 5.00%, 9/15/23		10,000		12,068
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series B, 5.00%, 8/1/22		2,500		3,130
Ohio State Higher Educational Facility Commission Revenue Bonds, Cleveland Clinic Health System, 5.00%, 1/1/38		10,000		10,900
Ohio State Infrastructure Improvement G.O. Unlimited Refunding Bonds, Series B, 5.00%, 9/1/21		5,000		6,208
				32,306
Oklahoma - 0.1%
McGee Creek Authority Water Revenue Bonds (NATL-RE Insured), 6.00%, 1/1/13		1,155		1,183
Oregon - 0.3%
Oregon State G.O. Unlimited Refunding Bonds, Series N, 5.00%, 12/1/23		2,845		3,524
Pennsylvania - 0.1%
Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue Bonds, Series A, Student Association, Inc. Project, 6.75%, 9/1/32		1,475		1,479
Puerto Rico - 0.5%
Puerto Rico Sales Tax Financing Corp. TRB, First Subordinate Series A, 6.38%, 8/1/39		5,000		5,803
South Carolina - 2.4%
Piedmont Municipal Power Agency Electric Revenue Bonds, Series 04, Unrefunded Balance (BHAC-CR MBIA Insured), 5.38%, 1/1/25		5,995		7,386
South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper, 5.50%, 1/1/38		13,000		14,850
Spartanburg County Regional Health Services District Revenue Refunding Bonds, Series A, 5.00%, 4/15/37(2)		5,000		5,257
				27,493
Tennessee - 0.5%
Knoxville City G.O. Unlimited Bonds, 2.00%, 5/1/22		2,635		2,604
Metropolitan Government of Nashville & Davidson County Electric Revenue Refunding Bonds, Series B, 5.00%, 5/15/25		2,380		2,824
				5,428
Texas - 4.9%
Dallas Independent School District School Building G.O. Unlimited Bonds (PSF Gtd.), 6.38%, 2/15/34		5,000		6,225
Dallas-Fort Worth International Airport Joint Revenue Bonds, Series A (AMT) (NATL-RE Insured), 5.50%, 11/1/20		835		881
Denton County Permanent Improvement G.O. Limited Refunding Bonds, 5.00%, 7/15/22		1,780		2,165
Frisco Independent School District School Building G.O. Unlimited Bonds, Series A (PSF Gtd.), 6.00%, 8/15/38		5,000		6,220

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 93.1% continued
Texas - 4.9% continued
Frisco Independent School District School Building G.O. Unlimited Bonds, Series B (PSF Gtd.), Prerefunded, 5.00%, 8/15/13	$	10,695	$	11,255
Grand Prairie Independent School District Capital Appreciation G.O. Unlimited Refunding Bonds, 14.33%, 8/15/29(1)		12,505		4,826
Houston Airport System Revenue Refunding Bonds, Series A (AMT), Subordinate Lien, 5.00%, 7/1/23		5,000		5,733
Leander Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.00%, 8/15/32		5,000		5,025
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, 6.25%, 5/15/31		10,000		11,701
Sam Rayburn Municipal Power Agency Revenue Refunding Bonds, 6.00%, 10/1/16		1,000		1,010
6.00%, 10/1/21		1,250		1,260
				56,301
Virginia - 0.1%
Norfolk Water Revenue Refunding Bonds, 5.00%, 11/1/21		1,500		1,887
Washington - 0.8%
Washington State G.O. Unlimited Bonds, Series B & AT-7, 6.40%, 6/1/17		5,200		6,121
Washington State Various Purpose G.O. Unlimited Refunding Bonds, Series R-2012C, 3.00%, 7/1/29		3,675		3,532
				9,653
Wisconsin - 1.8%
Wisconsin State G.O. Unlimited Refunding Bonds, Series 2, 5.00%, 11/1/21		7,625		9,531
5.00%, 11/1/22		5,000		6,202
Wisconsin State Transportation Revenue Bonds, Series 2, 5.00%, 7/1/21		4,000		4,979
				20,712
Total Municipal Bonds (Cost $1,011,410)				1,077,123
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 5.1%
Northern Institutional Funds - Tax-Exempt Portfolio(3) (4)		59,179,341	$	59,179
Total Investment Companies (Cost $59,179)				59,179
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT - TERM INVESTMENTS - 4.8%
Michigan State Finance Authority State Aid Revenue Notes, Series C-2, (J.P. Morgan Chase Bank N.A. LOC), 2.00%, 8/20/12	$	10,000	$	10,024
Oregon State Health & Science University Revenue Bonds, Series A, 2.00%, 7/1/12		5,000		5,000
Sonoma County G.O. Unlimited TRANS, 2.50%, 10/25/12		10,000		10,072
Texas State TRANS, Series A, 2.50%, 8/30/12		30,000		30,116
Total Short-Term Investments (Cost $55,207)				55,212
Total Investments - 103.0% (Cost $1,125,796)				1,191,514
Liabilities less Other Assets - (3.0)%				(34,525	)
NET ASSETS - 100.0%			$	1,156,989

(1) Zero coupon bond reflects effective yield on the date of purchase.

(2) When-Issued Security.

(3) At March 31, 2012, the value of the Fund’s investment in the Tax-Exempt Portfolio of the Northern Institutional Funds was approximately $157,745,000 with net sales of approximately $98,566,000 during the three months ended June 30, 2012.

(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

Percentages shown are based on Net Assets.

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

At June 30, 2012, the industry sectors for the Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
General		25.7	%
General Obligation		19.7
Water		12.8
School District		6.9
Transportation		6.4
Power		5.7
Financials		5.0
All other sectors less than 5%		17.8
Total		100.0	%

At June 30, 2012, the credit quality distribution for the Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		27.1	%
AA		45.8
A		15.9
BBB		1.1
SP1+/MIG1		5.1
Cash and Equivalents		5.0
Total		100.0	%

* Credit quality ratings are based on converting the available Moody’s, Standard & Poor’s, and/or Fitch ratings to a common numerical basis and averaging that result. If none of these three rating agencies has assigned a rating the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). The Standard & Poor’s short-term municipal rating of SP1 reflects a strong capacity to pay principal and interest (an issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation). The Moody’s short-term municipal rating of MIG1 denotes superior credit quality (excellent protection is afforded by established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing). The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,125,796
Gross tax appreciation of investments	$	66,761
Gross tax depreciation of investments		(1,043	)
Net tax appreciation of investments	$	65,718

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities or other financial instruments, if any. Following is a summary of the inputs used in valuing the Tax-Exempt Fund’s investments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	1,077,123	(1)	$	—	$	1,077,123
Investment Companies		59,179		—			—		59,179
Short-Term Investements		—		55,212			—		55,212
Total Investments	$	59,179	$	1,132,335		$	—	$	1,191,514

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued JUNE 30, 2012 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BHAC - Berkshire Hathaway Assurance Corporation

CABS - Capital Appreciation Bonds

COP - Certificate of Participation

CR - Custodial Receipts

FGIC - Financial Guaranty Insurance Corporation

FHLMC - Federal Home Loan Mortgage Corporation

FNMA - Federal National Mortgage Association

G.O. - General Obligation

GNMA - Government National Mortgage Association

Gtd. - Guaranteed

IBC - Insured Bond Certificates

MBIA - Municipal Bond Insurance Association

MWRA - Massachusetts Water Resources Authority

NATL-RE - National Public Finance Guarantee Corporation

PSF - Permanent School Fund

SFM - Single Family Mortgage

TCRS - Transferable Custodial Receipts

TRB - Tax Revenue Bonds

Interest rates represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes/zero coupon bonds, 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, the next interest reset/ puttable date for floating and variable rate 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 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.

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.7%
Brazil - 8.0%
All America Latina Logistica S.A.		633,402	$	2,674
Amil Participacoes S.A.		260,564		2,556
Banco Bradesco S.A. ADR		495,120		7,362
Banco do Brasil S.A.		670,659		6,495
Banco Santander Brasil S.A.		430,500		3,297
Banco Santander Brasil S.A. ADR		450,571		3,492
BM&FBovespa S.A.		343,447		1,732
BR Malls Participacoes S.A.		767,101		8,689
CETIP S.A. - Mercados Organizados		565,043		7,058
Cia de Saneamento de Minas Gerais-COPASA		44,875		973
Cosan S.A. Industria e Comercio		41,173		630
Diagnosticos da America S.A.		306,632		2,005
EcoRodovias Infraestrutura e Logistica S.A.		611,700		4,931
Ez Tec Empreendimentos e Participacoes S.A.		45,956		472
Fibria Celulose S.A.*		1,653,600		12,333
Gafisa S.A. ADR*		311,282		791
Gerdau S.A. ADR		536,200		4,697
Localiza Rent a Car S.A.		527,111		7,928
MRV Engenharia e Participacoes S.A.		461,061		2,123
Natura Cosmeticos S.A.		127,332		2,935
Obrascon Huarte Lain Brasil S.A.		97,120		856
OGX Petroleo e Gas Participacoes S.A.*		493,461		1,351
Oi S.A. ADR		8,120		38
Petroleo Brasileiro S.A.		102,386		958
Petroleo Brasileiro S.A. ADR		990,929		18,600
Petroleo Brasileiro S.A. ADR		410,040		7,438
Sao Martinho S.A.		16,437		165
Sul America S.A.		87,412		683
Tim Participacoes S.A. ADR		242,600		6,662
Vale S.A.		62,303		1,239
Vale S.A. ADR		783,436		15,551
				136,714
Canada - 0.6%
Methanex Corp.		143,750		4,004
Pacific Rubiales Energy Corp.		277,962		5,886
				9,890
Chile - 0.2%
Banco de Chile		2,860,100		401
Banco Santander Chile ADR		30,398		2,356
Cia Cervecerias Unidas S.A.		61,656		774
ENTEL Chile S.A.		34,667		658
				4,189
China - 9.9%
AAC Technologies Holdings, Inc.		1,222,000		3,539
Anhui Conch Cement Co. Ltd., Class H		1,030,971		2,828
Anta Sports Products Ltd.		3,174,680		1,935
Baidu, Inc. ADR*		118,445		13,619
Bank of China Ltd., Class H		7,669,106		2,934
China Communications Services Corp. Ltd., Class H*		286,742		142
China Construction Bank Corp., Class H		28,440,755		19,609
China Dongxiang Group Co.		17,013,000		1,552
China Life Insurance Co. Ltd., Class H		904,664		2,375
China Merchants Bank Co. Ltd., Class H		2,894,500		5,467
China Petroleum & Chemical Corp., Class H		1,662,363		1,490
China Shenhua Energy Co. Ltd., Class H		2,025,143		7,155
China Zhongwang Holdings Ltd.*		554,800		214
Chongqing Rural Commercial Bank, Class H		1,881,446		765
CNOOC Ltd.		6,677,342		13,470
CNOOC Ltd. ADR		25,760		5,184
CSR Corp. Ltd., Class H		8,361,000		6,543
Ctrip.com International Ltd. ADR*		258,014		4,324
Dongfeng Motor Group Co. Ltd., Class H		3,611,023		5,629
Evergrande Real Estate Group Ltd.		3,251,000		1,681
Giant Interactive Group, Inc. ADR		197,003		951
Great Wall Motor Co. Ltd., Class H		715,920		1,439
Guangzhou Automobile Group Co. Ltd., Class H*		17,119,421		14,408
Harbin Electric Co. Ltd., Class H		4,448,978		3,620
Hengan International Group Co. Ltd.		380,500		3,700
Huadian Power International Co., Class H*		13,687,000		4,144
Industrial & Commercial Bank of China, Class H		9,909,088		5,541
Inner Mongolia Yitai Coal Co., Class B*		144,180		815
Jiangxi Copper Co. Ltd., Class H		2,230,000		4,949
Lenovo Group Ltd.		5,520,546		4,710
Mindray Medical International Ltd. ADR		71,663		2,171
Parkson Retail Group Ltd.		4,299,175		3,848
PetroChina Co. Ltd. ADR		36,070		4,658
PetroChina Co. Ltd., Class H		1,656,024		2,155
Ping An Insurance Group Co., Class H		484,500		3,910
Soho China Ltd.		1,102,442		844

NORTHERN FUNDS QUARTERLY REPORT    1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.7% continued
China - 9.9% continued
Tencent Holdings Ltd.		221,200	$	6,532
Yanzhou Coal Mining Co. Ltd., Class H*		850,684		1,306
				170,156
Colombia - 0.2%
Almacenes Exito S.A.		34,034		564
Bancolombia S.A. ADR		31,551		1,951
Ecopetrol S.A.		294,285		823
				3,338
Czech Republic - 1.0%
CEZ A.S.		10,850		375
Komercni Banka A.S.		94,738		16,460
				16,835
Egypt - 0.5%
Commercial International Bank Egypt S.A.E.		2,235,026		9,572
Hong Kong - 5.6%
Beijing Enterprises Holdings Ltd.		882,000		5,324
Belle International Holdings Ltd.		4,947,493		8,463
Central China Real Estate Ltd.		1,410,883		364
Chaoda Modern Agriculture Holdings Ltd.(1)†*		5,742,000		—
China Mobile Ltd.		4,800,085		52,756
China Power International Development Ltd.		15,077,400		3,970
Cosco International Holdings Ltd.		765,998		295
Galaxy Entertainment Group Ltd.*		1,789,000		4,494
Haier Electronics Group Co. Ltd.*		2,900,000		3,503
Huabao International Holdings Ltd.		4,673,581		2,300
Kingboard Laminates Holdings Ltd.		8,169,500		3,013
KWG Property Holding Ltd.		502,500		319
Pacific Basin Shipping Ltd.		9,955,600		4,277
Shenzhen Investment Ltd.		567,332		134
Shougang Fushan Resources Group Ltd.		5,323,623		1,384
Skyworth Digital Holdings Ltd.		1,068,000		479
Stella International Holdings Ltd.		682,000		1,692
Texwinca Holdings Ltd.		3,366,000		3,186
Yuexiu Real Estate Investment Trust		380,514		183
				96,136
Hungary - 0.3%
EGIS Pharmaceuticals PLC		2,006		130
Magyar Telekom Telecommunications PLC		1,454,450		2,858
OTP Bank PLC		175,000		2,784
Richter Gedeon Nyrt		1,296		214
				5,986
India - 5.2%
Allahabad Bank		25,714		69
Andhra Bank		295,025		630
Bajaj Holdings and Investment Ltd.*		24,294		340
Bank of Baroda		178,889		2,364
Central Bank of India		612,800		906
Chambal Fertilizers & Chemicals Ltd.		57,149		75
Corporation Bank		134,338		1,002
Dr. Reddy’s Laboratories Ltd. ADR		87,400		2,594
GAIL India Ltd.		508,200		3,216
Gitanjali Gems Ltd.		68,051		368
Grasim Industries Ltd.		18,767		887
Gujarat Mineral Development Corp. Ltd.		44,806		150
HCL Technologies Ltd.		465,563		3,974
HDFC Bank Ltd. ADR		293,920		9,582
Housing Development Finance Corp.		281,680		3,312
Indiabulls Financial Services Ltd.		211,095		869
Indian Bank		421,807		1,336
Infosys Ltd. ADR		109,939		4,954
McLeod Russel India Ltd.		25,269		135
Oil & Natural Gas Corp. Ltd.		169,386		868
Patni Computer Systems Ltd.*		59,503		549
Power Finance Corp. Ltd.		404,390		1,294
State Bank of India GDR		48,145		3,742
Syndicate Bank*		164,918		315
Tata Chemicals Ltd.		69,251		387
Tata Consultancy Services Ltd.		999,597		22,972
Tata Motors Ltd. ADR		50,040		1,099
UCO Bank		503,823		726
United Phosphorus Ltd.		210,399		477
Vijaya Bank		544,325		570
Wipro Ltd.		2,782,101		20,010
				89,772
Indonesia - 1.6%
Adaro Energy Tbk PT		26,249,916		4,103
AKR Corporindo Tbk PT		1,101,000		410
Aneka Tambang Persero Tbk PT		2,698,825		387
Astra Agro Lestari Tbk PT		331,320		709
Bank Bukopin Tbk PT		3,167,276		213
Bank Mandiri Persero Tbk PT		4,768,304		3,690
Bank Rakyat Indonesia Persero Tbk PT		6,546,500		4,479

MULTI-MANAGER FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.7% continued
Indonesia - 1.6% continued
Indo Tambangraya Megah Tbk PT		158,222	$	609
Indofood Sukses Makmur Tbk PT		5,041,000		2,610
Kalbe Farma Tbk PT		26,500		11
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		2,318,060		665
Sampoerna Agro PT*		633,000		201
Semen Gresik Persero Tbk PT		5,369,000		6,482
Tambang Batubara Bukit Asam Persero Tbk PT		1,026,343		1,621
Telekomunikasi Indonesia Persero Tbk PT		1,056,263		919
				27,109
Israel - 0.2%
Israel Chemicals Ltd.		300,046		3,312
Malaysia - 1.4%
Axiata Group Bhd.		3,304,800		5,706
Berjaya Sports Toto Bhd.		164,604		224
British American Tobacco Malaysia Bhd.		26,192		464
DiGi.Com Bhd.		866,298		1,162
DRB-Hicom Bhd.		1,297,862		1,041
Genting Bhd.		512,203		1,545
Genting Malaysia Bhd.		3,039,287		3,462
Hong Leong Financial Group Bhd.		167,040		651
KLCC Property Holdings Bhd.		138,522		203
Kulim Malaysia Bhd.		278,000		412
Lafarge Malayan Cement Bhd.		157,548		363
Malayan Banking Bhd.		339,248		932
Malaysia Building Society		768,344		554
Media Prima Bhd.		107,350		74
Parkson Holdings Bhd.		250,381		364
Sime Darby Bhd.		1,829,500		5,709
Telekom Malaysia Bhd.		121,787		217
Tradewinds Malaysia Bhd.		47,515		134
UMW Holdings Bhd.		177,300		513
				23,730
Mexico - 7.7%
Alfa S.A.B. de C.V., Class A		102,357		1,636
America Movil S.A.B. de C.V., Series L ADR		1,625,001		42,348
America Movil S.A.B. de C.V., Series L		1,680,291		2,197
Arca Continental S.A.B. de C.V.		1,890,472		10,968
Corporacion GEO S.A.B. de C.V., Series B*		1,434,128		1,614
Desarrolladora Homex S.A.B. de C.V. ADR*		125,675		1,935
Fomento Economico Mexicano S.A.B. de C.V. ADR		71,787		6,407
Gruma S.A.B. de C.V., Class B*		266,849		660
Grupo Bimbo S.A.B. de C.V., Series A		3,026,000		7,437
Grupo Financiero Banorte S.A.B. de C.V., Class O		2,732,244		14,119
Grupo Herdez S.A.B. de C.V.		37,571		86
Grupo Mexico S.A.B. de C.V., Series B		2,229,851		6,627
Grupo Modelo S.A.B. de C.V., Series C		232,111		2,053
Grupo Televisa S.A.B. ADR		1,358,683		29,184
Industrias C.H. S.A.B. de C.V., Series B*		989,144		4,480
				131,751
Netherlands - 0.2%
Yandex N.V., Class A*		178,983		3,410
Norway - 0.0%
STX OSV Holdings Ltd.		226,000		270
Panama - 0.3%
Copa Holdings S.A., Class A		59,700		4,924
Peru - 0.5%
BBVA Banco Continental S.A.		105,111		237
Credicorp Ltd.		61,100		7,692
Intergroup Financial Services Corp.		10,366		316
				8,245
Philippines - 0.6%
Megaworld Corp.		9,301,000		486
Metropolitan Bank & Trust		4,210,757		9,263
				9,749
Poland - 0.6%
Bank Pekao S.A.		76,919		3,508
Cyfrowy Polsat S.A.*		812,096		3,564
KGHM Polska Miedz S.A.		48,198		2,106
PGE S.A.		204,170		1,192
				10,370
Portugal - 0.2%
Jeronimo Martins SGPS S.A.		221,479		3,737
Qatar - 0.2%
Industries Qatar QSC		78,475		2,702
Russia - 4.7%
Gazprom OAO ADR		1,500,140		14,201
Lukoil OAO ADR		188,980		10,564
Magnit OJSC GDR (Registered)		238,704		7,198

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.7% continued
Russia - 4.7% continued
Magnitogorsk Iron & Steel Works
GDR (Registered)*		256,428	$	953
Mail.ru Group Ltd. GDR (Registered)*		163,387		5,565
MMC Norilsk Nickel OJSC ADR		62,633		1,038
Mobile Telesystems OJSC ADR		209,752		3,608
Novolipetsk Steel OJSC GDR (Registered)		154,872		2,552
Rosneft Oil Co. GDR (Registered)		1,401,568		8,796
Sberbank of Russia		6,255,123		16,685
Sberbank of Russia ADR		278,642		3,031
Sberbank of Russia ADR (OTC Exchange)		39,314		425
Severstal OAO GDR (Registered)		48,661		573
Surgutneftegas OJSC ADR		65,966		548
Tatneft ADR		6,587		222
TMK OAO GDR (Registered)		449,926		5,415
				81,374
Singapore - 0.2%
China Yuchai International Ltd.		30,403		415
ComfortDelGro Corp. Ltd.		353,000		432
DBS Group Holdings Ltd.		96,000		1,060
Golden Agri-Resources Ltd.		2,148,673		1,149
Indofood Agri Resources Ltd.		293,059		335
				3,391
South Africa - 8.8%
ABSA Group Ltd.		162,537		2,818
African Bank Investments Ltd.		505,149		2,245
Aspen Pharmacare Holdings Ltd.*		395,323		6,098
Aveng Ltd.		372,300		1,633
Barloworld Ltd.		2,278,624		22,600
Bidvest Group Ltd.		141,592		3,163
Clicks Group Ltd.		797,283		5,252
Coronation Fund Managers Ltd.		58,944		200
Emira Property Fund		102,646		160
Exxaro Resources Ltd.		223,129		5,209
FirstRand Ltd.		3,028,043		9,808
Fountainhead Property Trust		389,481		353
Gold Fields Ltd.		90,770		1,159
Imperial Holdings Ltd.		279,663		5,898
Investec Ltd.		164,072		966
JSE Ltd.		19,666		180
Liberty Holdings Ltd.		91,159		968
Life Healthcare Group Holdings Ltd.		233,582		890
Massmart Holdings Ltd.		429,568		8,891
MTN Group Ltd.		339,660		5,869
Naspers Ltd., Class N		194,597		10,401
Reunert Ltd.		85,421		712
RMB Holdings Ltd.		168,772		723
Sanlam Ltd.		16,978		74
Sasol Ltd.		141,262		5,940
Standard Bank Group Ltd.		1,064,421		14,433
Truworths International Ltd.		3,149,730		34,529
				151,172
South Korea - 15.1%
BS Financial Group, Inc.		661,899		7,387
Daelim Industrial Co. Ltd.		18,735		1,499
Daesang Corp.		34,747		538
Daishin Securities Co. Ltd.		17,022		126
Daou Technology, Inc.		47,881		519
Dongbu Insurance Co. Ltd.		120,262		4,439
Doosan Corp.		5,813		662
E-Mart Co. Ltd.		27,270		5,990
Grand Korea Leisure Co. Ltd.		174,070		3,622
Halla Climate Control Corp.		52,652		1,118
Hana Financial Group, Inc.		160,945		5,138
Hankook Tire Co. Ltd.		470,461		18,696
Hyundai Department Store Co. Ltd.		17,084		2,135
Hyundai Mipo Dockyard		49,025		5,127
Hyundai Motor Co.		121,222		24,868
Industrial Bank of Korea		414,270		4,662
KB Financial Group, Inc. ADR		200,746		6,562
KCC Corp.		2,601		636
Kia Motors Corp.		15,014		989
Korea Gas Corp.		12,308		437
Korea Zinc Co. Ltd.		4,226		1,434
KP Chemical Corp.		7,293		86
KT Corp.		15,093		399
KT&G Corp.		26,187		1,857
LG Chem Ltd.		25,066		6,483
LG Electronics, Inc.		104,523		5,639
Mando Corp.		14,940		2,225
NHN Corp.		51,104		11,207
NongShim Co. Ltd.		986		178
POSCO		137		44
POSCO ADR		54,800		4,408
Samsung Electronics Co. Ltd.		79,978		84,794
Samsung Engineering Co. Ltd.		30,812		4,891
Samsung Heavy Industries Co. Ltd.		225,779		7,480
Shinhan Financial Group Co. Ltd.		574,264		19,987

MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.7% continued
South Korea - 15.1% continued
SK Holdings Co. Ltd.		8,635	$	1,013
SK Innovation Co. Ltd.		4,727		579
SK Telecom Co. Ltd.		42,683		4,655
SK Telecom Co. Ltd. ADR		63,300		766
Taekwang Industrial Co. Ltd.		155		114
Woongjin Coway Co. Ltd.		138,958		4,331
Woori Finance Holdings Co. Ltd.		124,960		1,372
Youngone Corp.		20,830		574
				259,666
Sweden - 0.1%
Oriflame Cosmetics S.A. SDR		43,800		1,466
Taiwan - 8.2%
Advanced Semiconductor Engineering, Inc. ADR		152,930		622
Advanced Semiconductor Engineering, Inc.		2,533,000		2,066
AmTRAN Technology Co. Ltd.		313,000		255
Asustek Computer, Inc.		158,923		1,470
Catcher Technology Co. Ltd.		315,000		2,132
Chicony Electronics Co. Ltd.		207,945		386
Chipbond Technology Corp.		456,000		618
Compal Electronics, Inc.		3,563,000		3,280
Farglory Land Development Co. Ltd.		377,870		674
Formosa Chemicals & Fibre Corp.		49,041		130
Highwealth Construction Corp.		210,206		331
Hon Hai Precision Industry Co. Ltd.		10,057,348		30,326
Hon Hai Precision Industry Co. Ltd. GDR (Registered)		115,775		701
Lite-On Technology Corp.		945,491		1,193
MStar Semiconductor, Inc.		227,000		1,532
Pegatron Corp.		1,759,383		2,329
Phison Electronics Corp.		150,698		1,232
Pou Chen Corp.		1,185,147		1,014
President Chain Store Corp.		3,475,721		18,549
Radiant Opto-Electronics Corp.*		328,120		1,664
Synnex Technology International Corp.		1,959,820		4,793
Taiwan Semiconductor Manufacturing Co. Ltd. ADR*		1,404,797		19,611
Taiwan Semiconductor Manufacturing Co. Ltd.*		12,056,542		33,000
Teco Electric and Machinery Co. Ltd.*		1,910,497		1,249
TSRC Corp.		117,310		290
U-Ming Marine Transport Corp.		87,804		140
Unimicron Technology Corp.		2,752,229		3,149
Uni-President Enterprises Corp.		571,698		918
United Microelectronics Corp.		1,706,074		746
Vanguard International Semiconductor Corp.		340,000		159
Wistron Corp.		1,131,414		1,393
Yageo Corp.		17,119,000		5,057
				141,009
Thailand - 2.8%
Bangkok Bank PCL (Registered)		681,170		4,455
Bangkok Bank PCL NVDR		671,492		4,064
Banpu PCL (Registered)		98,856		1,382
Banpu PCL NVDR		339,550		4,814
BEC World PCL (Registered)		218,300		347
Charoen Pokphand Foods PCL NVDR		2,896,300		3,527
CP ALL PCL NVDR		1,177,764		1,324
Kasikornbank PCL (Registered)		905,198		4,727
Kasikornbank PCL NVDR		1,487,500		7,626
Kiatnakin Bank PCL (Registered)		378,700		429
Krung Thai Bank PCL (Registered)		891,134		452
Land and Houses PCL (Registered)		683,300		165
Land and Houses PCL NVDR		29,490,021		7,301
PTT PCL NVDR		593,300		6,066
Siam Makro PCL (Registered)		29,900		335
Thai Airways International PCL (Registered)*		1,018,800		693
Thai Beverage PCL		1,328,160		358
Total Access Communication PCL NVDR		174,092		409
				48,474
Turkey - 3.1%
Akbank T.A.S.		500,975		1,839
Anadolu Efes Biracilik Ve Malt Sanayii A.S.		102,380		1,312
Arcelik A.S.		582,100		2,947
Eregli Demir ve Celik Fabrikalari T.A.S.		982,099		1,095
Ford Otomotiv Sanayi A.S.		421,821		3,829
Haci Omer Sabanci Holding A.S.		1,012,013		4,267
Koza Altin Isletmeleri A.S.		279,598		5,418
Tekfen Holding A.S.		93,576		343
Tofas Turk Otomobil Fabrikasi A.S.		240,042		1,030
Trakya Cam Sanayi A.S.*		122,178		164
Tupras Turkiye Petrol Rafinerileri A.S.		803,541		17,215
Turkiye Garanti Bankasi A.S.		1,063,713		4,192
Turkiye Sinai Kalkinma Bankasi A.S.		4,585,783		4,675
Turkiye Sise ve Cam Fabrikalari A.S.		616,619		1,011
Turkiye Vakiflar Bankasi Tao, Class D		1,525,375		3,181

NORTHERN FUNDS QUARTERLY REPORT    5    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.7% continued
Turkey - 3.1% continued
Ulker Biskuvi Sanayi A.S.		77,010	$	296
				52,814
United Arab Emirates - 0.0%
Aldar Properties PJSC		2,484,175		762
United Kingdom - 1.8%
Afren PLC*		2,900,240		4,721
Anglo American PLC		479,237		16,000
BHP Billiton PLC		137,251		3,969
Eurasia Drilling Co. Ltd. GDR (Registered)		95,944		2,449
SABMiller PLC		99,459		4,018
				31,157
United States - 1.9%
Central European Media Enterprises Ltd.,
Class A*		371,176		1,886
Cognizant Technology Solutions Corp.,
Class A*		94,500		5,670
First Cash Financial Services, Inc.*		100,800		4,049
Southern Copper Corp.		122,000		3,844
Tenaris S.A. ADR		472,744		16,532
				31,981
Total Common Stocks(2) (Cost $1,512,645)				1,575,163
PREFERRED STOCKS - 3.6%
Brazil - 3.6%
Banco Bradesco S.A.		33,306		494
Banco do Estado do Rio Grande do Sul,
Class B		87,606		619
Bradespar S.A.		33,750		552
Cia de Bebidas das Americas ADR		161,704		6,198
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.		49,779		627
Itau Unibanco Holding S.A.		64,294		899
Itau Unibanco Holding S.A. ADR		1,690,960		23,538
Klabin S.A.		173,260		768
Lojas Americanas S.A.		1,422,084		9,325
Marcopolo S.A.		1,052,100		4,662
Metalurgica Gerdau S.A.		72,157		790
Petroleo Brasileiro S.A.		667,456		6,038
Randon Participacoes S.A.		162,775		729
Usinas Siderurgicas de Minas Gerais S.A., Class A		998,300		3,181
Vale S.A.		135,514		2,636
				61,056
Total Preferred Stocks(2) (Cost $73,746)				61,056
	NUMBER OF WARRANTS		VALUE (000S)
EQUITY-LINKED SECURITIES - 0.9%
Taiwan - 0.8%
Catcher Technology Co. Ltd.(3) *		273,800	$	1,825
Chinatrust Financial Holding Co. Ltd.*		10,561,951		6,020
Hon Hai Precision Industry Co. Ltd.(3) (4) *		1,693,500		5,082
United Kingdom - 0.1%
Simplo Technology Co. Ltd.*		290,000		1,976
Total Equity-Linked Securities(2) (Cost $16,358)				14,903
WARRANTS - 0.5%
India - 0.5%
ITC Ltd., Exp. 5/28/13, Strike $0.00*		907,300		4,224
Maruti Suzuki India Ltd., Exp. 2/2/15, Strike $0.01*		250,850		5,277
Total Warrants(2) (Cost $10,443)				9,501
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2.6%
Northern Institutional Funds - Diversified Assets Portfolio(5)(6)		45,018,008	$	45,018
Total Investment Companies (Cost $45,018)				45,018
Total Investments - 99.3% (Cost $1,658,210)				1,705,641
Other Assets less Liabilities - 0.7%				12,282
NET ASSETS - 100.0%			$	1,717,923

(1) Security has been deemed worthless.

MULTI-MANAGER FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

(2) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.

(3) 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.

(4) Restricted security that has been deemed illiquid. At June 30, 2012, the value of the restricted illiquid security amounted to approximately $5,082,000 or 0.3% of net assets. Additional information on the restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000S)
Hon Hai Precision Industry Co. Ltd., Exp. 1/17/17		11/11/11-12/28/11	$	4,546

(5) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $33,932,000 with net purchases of approximately $11,086,000 during the three months ended June 30, 2012.

(6) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

† Level 3 asset that is worthless, bankrupt or has been delisted.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the industry sectors for the Multi-Manager Emerging Markets Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		14.8	%
Consumer Staples		7.2
Energy		11.4
Financials		22.8
Health Care		1.0
Industrials		6.6
Information Technology		19.4
Materials		8.0
Telecommunication Services		7.9
Utilities		0.9
Total		100.0	%

At June 30, 2012, the Multi-Manager Emerging Markets Equity Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
United States Dollar		25.4	%
Korean Won		14.9
Hong Kong Dollar		14.1
South African Rand		10.6
Taiwan Dollar		7.2
Brazilian Real		6.2
All other currencies less than 5%		21.6
Total		100.0	%

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,689,250
Gross tax appreciation of investments	$	227,230
Gross tax depreciation of investments		(210,839	)
Net tax appreciation of investments	$	16,391

At June 30, 2012, the Multi-Manager Emerging Markets Equity Fund had outstanding foreign currency exchange contracts as follows:

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
United States Dollar		2	Brazilian Real		5		7/2/2012	$	—	*
Hong Kong Dollar		332	United States Dollar		43		7/3/2012		—	*
Hong Kong Dollar		90	United States Dollar		12		7/3/2012		—	*
Hong Kong Dollar		54	United States Dollar		7		7/3/2012		—	*
South African Rand		7,516	United States Dollar		888		7/3/2012		(30	)
United States Dollar		181	Russian Ruble		5,954		7/6/2012		3
Total								$	(27	)

* Amount rounds to less than one thousand.

NORTHERN FUNDS QUARTERLY REPORT    7    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on June 30, 2012 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.

Level 3 - Valuations based on inputs that are unobservable and significant. The Fund utilized the following techniques on Level 3 investments: The Fund valued certain securities using prices provided by NTGI PVC.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Emerging Markets Equity Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	39,219	$	191,196		$	—	$	230,415
Consumer Staples		6,971		101,967			—		108,938
Energy		59,121		124,021			—		183,142
Financials		44,024		302,826			—		346,850
Health Care		4,765		11,903			—		16,668
Industrials		5,340		99,611			—		104,951
Information Technology		48,837		264,316			549		313,702
Materials		32,504		92,318			—		124,822
Telecommunication
Services		53,421		77,947			—		131,368
Utilities		—		14,307			—		14,307
Preferred Stocks
Consumer Discretionary		—		9,325			—		9,325
Consumer Staples		6,198		—			—		6,198
Energy		—		6,038			—		6,038
Financials		23,538		2,012			—		25,550
Industrials		—		5,391			—		5,391
Materials		—		7,927			—		7,927
Utilities		—		627			—		627
Equity - Linked Securities
Financials		6,020		—			—		6,020
Information Technology		8,883		—			—		8,883
Warrants
Consumer Discretionary		5,277		—			—		5,277
Consumer Staples		4,224		—			—		4,224
Investment Companies		45,018		—			—		45,018
Total Investments	$	393,360	$	1,311,732		$	549	$	1,705,641
OTHER FINANCIAL INSTRUMENTS
Assets
Foreign Currency Exchange Contracts	$	—	$	3		$	—	$	3
Liabilities
Foreign Currency Exchange Contracts		—		(30	)		—		(30	)
Total Other Financial Instruments	$	—	$	(27	)	$	—	$	(27	)

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, the Fund had a transfer between Level 2 and Level 3. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

MULTI-MANAGER FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	BALANCE AS OF 3/31/12 (000S)		REALIZED GAINS (000S)		REALIZED LOSSES (000S)		CHANGE IN UNREALIZED APPRECIATION (000S)		CHANGE IN UNREALIZED DEPRECIATION (000S)			PURCHASES (000S)		SALES (000S)		TRANSFERS INTO LEVEL 3 (000S) (1)(2)		TRANSFERS OUT OF LEVEL 3 (000S) (2)		BALANCE AS OF 6/30/12 (000S)
Common Stock
Information Technology		—	$	—	$	—	$	—	$	(26	)	$	39	$	—	$	536	$	—	$	549

(1) Transferred into Level 3 investments occurred from using a fair value price provided by NTGI PVC.

(2) The value of Transfers In and/or Out of Level 3 was measured using the fair value as of the end of the period ended, June 30, 2012.

The amount of change in net unrealized appreciation (depreciation) on investment in Level 3 securities still held at June 30, 2012 was approximately $(26).

NORTHERN FUNDS QUARTERLY REPORT    9    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.7%
Australia - 5.4%
BGP Holdings PLC - (Fractional Shares)*		3,277,404	$	—
Centro Retail Australia		2,315,416		4,704
CFS Retail Property Trust Group		600,000		1,193
Dexus Property Group		3,378,157		3,230
Goodman Group		926,589		3,511
GPT Group		2,775,583		9,386
Investa Office Fund		545,650		1,523
Mirvac Group		470,321		616
Stockland		4,005,450		12,679
Westfield Group		1,384,680		13,486
Westfield Retail Trust		1,360,051		3,986
				54,314
Brazil - 0.3%
Aliansce Shopping Centers S.A.		178,859		1,525
MRV Engenharia e Participacoes S.A.		154,250		710
PDG Realty S.A. Empreendimentos e Participacoes		242,756		427
Sonae Sierra Brasil S.A.		38,000		548
				3,210
Canada - 3.3%
Boardwalk Real Estate Investment Trust		150,500		8,663
Calloway Real Estate Investment Trust		60,500		1,664
Canadian Real Estate Investment Trust		28,800		1,150
Cominar Real Estate Investment Trust		22,800		537
Dundee Real Estate		15,648		587
Dundee Real Estate Investment Trust		49,019		1,839
Primaris Retail Real Estate Investment Trust		178,881		4,139
RioCan Real Estate Investment Trust		550,079		14,965
				33,544
China - 1.6%
Agile Property Holdings Ltd.		3,388,000		4,401
Country Garden Holdings Co. Ltd.*		20,616,033		8,154
Guangzhou R&F Properties Co. Ltd., Class H		1,741,000		2,311
Longfor Properties Co. Ltd.		537,000		844
				15,710
France - 4.2%
Fonciere Des Regions		8,544		615
Gecina S.A.		21,145		1,892
ICADE		101,490		7,699
Klepierre		292,639		9,644
Societe Immobiliere de Location pour I’Industrie et le Commerce		8,220		783
Unibail-Rodamco S.E.		120,586		22,249
				42,882
Germany - 0.9%
Deutsche Wohnen A.G. (Bearer)		304,802		5,137
GAGFAH S.A.*		171,134		1,633
GSW Immobilien A.G.		58,928		2,013
				8,783
Hong Kong - 13.7%
Cheung Kong Holdings Ltd.		69,200		854
China Overseas Land & Investment Ltd.		6,212,440		14,574
China Resources Land Ltd.		1,758,000		3,631
Great Eagle Holdings Ltd.		188,900		486
Hang Lung Properties Ltd.		5,175,696		17,618
Hongkong Land Holdings Ltd.		2,776,670		15,989
Hysan Development Co. Ltd.		2,851,770		10,847
Kerry Properties Ltd.		2,624,600		11,246
KWG Property Holding Ltd.		2,246,000		1,426
Lifestyle International Holdings Ltd.		4,144,400		9,122
Link REIT (The)		1,224,800		5,008
Shangri-La Asia Ltd.		4,734,333		9,080
Sino Land Co. Ltd.		3,957,840		6,008
Sun Hung Kai Properties Ltd.		1,690,042		20,055
Swire Pacific Ltd., Class A		303,500		3,540
Wharf Holdings Ltd.		1,803,090		10,024
				139,508
Japan - 7.9%
Aeon Mall Co. Ltd.		355,000		7,552
Daiwa House Industry Co. Ltd.		540,000		7,667
Japan Real Estate Investment Corp.		352		3,237
Japan Retail Fund Investment Corp.		908		1,440
Kenedix Realty Investment Corp.		196		634
Mitsubishi Estate Co. Ltd.		1,482,680		26,600
Mitsui Fudosan Co. Ltd.		987,884		19,165
Nippon Accommodations Fund, Inc.		84		545
Nippon Building Fund, Inc.		91		881
Nomura Real Estate Holdings, Inc.		65,000		1,190
Sumitomo Realty & Development Co. Ltd.		272,000		6,693
Tokyo Tatemono Co. Ltd.*		538,000		2,026
United Urban Investment Corp.		2,447		2,640
				80,270
Mexico - 0.2%
Fibra Uno Administracion S.A. de C.V.		1,127,016		2,315

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.7% continued
Netherlands - 0.9%
Corio N.V.		97,858	$	4,311
Eurocommercial Properties N.V. - CVA		131,325		4,551
				8,862
Norway - 0.1%
Norwegian Property ASA		969,681		1,332
Philippines - 0.2%
SM Prime Holdings, Inc.		5,095,542		1,586
Singapore - 3.9%
CapitaCommercial Trust		2,667,000		2,682
CapitaLand Ltd.		3,845,379		8,301
CapitaMall Trust		1,233,100		1,868
CapitaMalls Asia Ltd.		1,801,000		2,246
CDL Hospitality Trusts		936,000		1,448
City Developments Ltd.		1,108,000		9,902
Global Logistic Properties Ltd.*		4,952,600		8,250
Keppel Land Ltd.		1,798,000		4,621
				39,318
Spain - 0.4%
Melia Hotels International S.A.		692,900		4,042
Sweden - 0.8%
Castellum AB		364,110		4,411
Fabege AB		433,534		3,404
Hufvudstaden AB, Class A		65,980		708
				8,523
Thailand - 0.5%
Central Pattana PCL (Registered)		3,460,000		5,065
United Kingdom - 5.3%
British Land Co. PLC		414,803		3,323
Derwent London PLC		409,677		11,904
Great Portland Estates PLC		893,051		5,528
Hammerson PLC		1,532,790		10,685
Land Securities Group PLC		1,387,065		16,087
Safestore Holdings PLC		364,600		581
Segro PLC		919,387		3,134
Shaftesbury PLC		340,000		2,749
				53,991
United States - 46.1%
Alexandria Real Estate Equities, Inc.		84,800		6,167
American Campus Communities, Inc.		113,800		5,119
American Tower Corp.		30,100		2,104
Apartment Investment & Management Co., Class A		191,869		5,186
AvalonBay Communities, Inc.		58,942		8,339
Boston Properties, Inc.		212,300		23,007
Brandywine Realty Trust		191,501		2,363
BRE Properties, Inc.		74,500		3,726
Brookdale Senior Living, Inc.*		233,763		4,147
Brookfield Office Properties, Inc.		897,809		15,640
CBL & Associates Properties, Inc.		198,325		3,875
Colonial Properties Trust		131,828		2,919
CubeSmart		278,537		3,251
DDR Corp.		611,400		8,951
Digital Realty Trust, Inc.		45,831		3,441
Douglas Emmett, Inc.		202,600		4,680
DuPont Fabros Technology, Inc.		121,816		3,479
Education Realty Trust, Inc.		259,051		2,870
Equity Residential		467,193		29,134
Essex Property Trust, Inc.		109,900		16,916
Federal Realty Investment Trust		89,900		9,358
First Industrial Realty Trust, Inc.*		229,581		2,897
General Growth Properties, Inc.		589,606		10,666
HCP, Inc.		278,600		12,300
Health Care REIT, Inc.		263,900		15,385
Hersha Hospitality Trust		591,961		3,126
Highwoods Properties, Inc.		43,000		1,447
Host Hotels & Resorts, Inc.		884,682		13,996
Hyatt Hotels Corp., Class A*		185,368		6,888
Kilroy Realty Corp.		105,623		5,113
Kimco Realty Corp.		188,600		3,589
Liberty Property Trust		104,800		3,861
Macerich (The) Co.		111,921		6,609
Mack-Cali Realty Corp.		122,214		3,553
Orient-Express Hotels Ltd., Class A*		418,264		3,501
Pebblebrook Hotel Trust		51,200		1,193
Post Properties, Inc.		69,800		3,417
ProLogis, Inc.		847,027		28,147
Public Storage		125,197		18,080
Regency Centers Corp.		79,679		3,790
Simon Property Group, Inc.		391,567		60,951
SL Green Realty Corp.		208,545		16,734
Sovran Self Storage, Inc.		92,468		4,632
Starwood Hotels & Resorts Worldwide, Inc.		117,000		6,206
Strategic Hotels & Resorts, Inc.*		209,101		1,351
Tanger Factory Outlet Centers		65,900		2,112
Taubman Centers, Inc.		113,900		8,788
UDR, Inc.		446,022		11,525

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.7% continued
United States - 46.1% continued
Ventas, Inc.		368,461	$	23,257
Vornado Realty Trust		215,051		18,060
Weingarten Realty Investors		85,593		2,254
				468,100
Total Common Stocks(1) (Cost $805,106)				971,355
INVESTMENT COMPANIES - 3.4%
Northern Institutional Funds - Diversified Assets Portfolio(2) (3)		34,214,465		34,214
Total Investment Companies (Cost $34,214)				34,214
Total Investments - 99.1% (Cost $839,320)				1,005,569
Other Assets less Liabilities - 0.9%				9,613
NET ASSETS - 100.0%			$	1,015,182

(1) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $16,417,000 with net purchases of approximately $17,797,000 during the three months ended June 30, 2012.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the industry sectors for the Multi-Manager Global Real Estate Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Department Stores		0.9	%
Diversified Real Estate Activities		14.9
Diversified REITs		9.0
Health Care Facilities		0.4
Homebuilding		0.1
Hotels, Resorts & Cruise Lines		3.1
Industrial REITs		3.9
Office REITs		10.2
Real Estate Development		4.8
Real Estate Operating Companies		9.1
Residential REITs		10.1

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Retail REITs		23.2	%
Specialized REITs		10.3
Total		100.0	%

At June 30, 2012, the Multi-Manager Global Real Estate Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
United States Dollar		49.8	%
Hong Kong Dollar		14.3
Japanese Yen		8.3
Euro		6.6
Australian Dollar		5.6
British Pound		5.6
All other currencies less than 5%		9.8
Total		100.0	%

At June 30, 2012, the Multi-Manager Global Real Estate Fund had outstanding foreign currency exchange contracts as follows:

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
British Pound		65	United States Dollar		102		7/2/12	$	(1	)
Euro		128	United States Dollar		160		7/2/12		(2	)
Euro		29	United States Dollar		36		7/2/12		(1	)
Singapore Dollar		35	United States Dollar		27		7/2/12		—	*
United States Dollar		371	Australian Dollar		368		7/2/12		6
United States Dollar		8	Euro		6		7/2/12		—	*
British Pound		28	United States Dollar		44		7/3/12		—	*
Euro		171	United States Dollar		213		7/3/12		(4	)
Hong Kong Dollar		10,879	United States Dollar		1,402		7/3/12		—	*
Hong Kong Dollar		1,774	United States Dollar		229		7/3/12		—	*
Hong Kong Dollar		771	United States Dollar		99		7/3/12		—	*
Singapore Dollar		29	United States Dollar		22		7/3/12		—	*
United States Dollar		765	Australian Dollar		747		7/3/12		(1	)
United States Dollar		1,382	British Pound		890		7/3/12		13
United States Dollar		381	Euro		301		7/3/12		—	*
United States Dollar		119	Hong Kong Dollar		921		7/3/12		—	*
British Pound		2,121	United States Dollar		3,323		7/5/12		—	*

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
British Pound		101	United States Dollar		158		7/5/12	$	—	*
Euro		375	United States Dollar		475		7/5/12		—	*
Hong Kong Dollar		8,372	United States Dollar		1,079		7/5/12		—	*
Hong Kong Dollar		1,228	United States Dollar		158		7/5/12		—	*
Singapore Dollar		1,181	United States Dollar		932		7/5/12		—	*
Singapore Dollar		45	United States Dollar		36		7/5/12		—	*
Total								$	10

* Amount rounds to less than one thousand.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	854,191
Gross tax appreciation of investments	$	160,517
Gross tax depreciation of investments		(9,139	)
Net tax appreciation of investments	$	151,378

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on June 30, 2012 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Global Real Estate Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	16,595	$	23,381		$	—	$	39,976
Financials		480,903		446,329			—		927,232
Health Care		4,147		—			—		4,147
Investment Companies		34,214		—			—		34,214
Total Investments	$	535,859	$	469,710		$	—	$	1,005,569
OTHER FINANCIAL INSTRUMENTS
Assets
Foreign Currency
Exchange Contracts	$	—	$	19		$	—	$	19
Liabilities
Foreign Currency
Exchange Contracts		—		(9	)		—		(9	)
Total Other Financial Investments	$	—	$	10		$	—	$	10

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    4    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.9%
Australia - 1.4%
Australia & New Zealand Banking Group Ltd.		410,545	$	9,317
BHP Billiton Ltd. ADR		106,900		6,981
Cochlear Ltd.		22,897		1,550
Incitec Pivot Ltd.		1,801,944		5,310
Telstra Corp. Ltd.		1,168,000		4,425
				27,583
Austria - 0.9%
Andritz A.G.		57,429		2,957
Conwert Immobilien Invest S.E.		302,900		3,324
Erste Group Bank A.G.*		301,740		5,737
Schoeller-Bleckmann Oilfield Equipment A.G.		71,014		5,735
				17,753
Belgium - 0.5%
Anheuser-Busch InBev N.V.		136,530		10,615
Brazil - 3.5%
Amil Participacoes S.A.		523,700		5,137
Banco Bradesco S.A. ADR		873,100		12,983
Banco do Brasil S.A.		458,500		4,440
BR Malls Participacoes S.A.		150,000		1,699
BR Properties S.A.		128,200		1,500
CCR S.A.		286,400		2,323
CETIP S.A. - Mercados Organizados		75,444		942
Cia de Saneamento Basico do Estado de Sao Paulo ADR		250,400		18,995
Cia Hering		94,676		1,798
Cielo S.A.		70,740		2,069
Iochpe-Maxion S.A.		24,000		275
Odontoprev S.A.		136,600		689
Petroleo Brasileiro S.A.		199,100		1,864
Petroleo Brasileiro S.A. ADR		293,400		5,507
Qualicorp S.A.*		61,300		531
T4F Entretenimento S.A.		89,900		738
Tractebel Energia S.A.		80,000		1,466
Vale S.A. ADR		421,400		8,365
Valid Solucoes e Servicos de Segurancaem Meios de Pagamento e Identificacao S.A.		35,500		524
				71,845
Canada - 5.0%
Agrium, Inc.		116,564		10,312
Alimentation Couche Tard, Inc., Class B		98,886		4,318
Brookfield Asset Management, Inc., Class A		209,382		6,931
Canadian Natural Resources Ltd.		173,380		4,650
Cenovus Energy, Inc.		53,269		1,693
CI Financial Corp.		98,510		2,136
Dollarama, Inc.		38,803		2,332
Encana Corp.		171,909		3,579
Kinross Gold Corp.		474,780		3,875
Lundin Mining Corp.*		812,030		3,366
Magna International, Inc.		105,500		4,163
Manulife Financial Corp.		731,300		7,964
Metro, Inc.		49,706		2,545
Nexen, Inc.		519,400		8,773
Peyto Exploration & Development Corp.		132,271		2,499
Potash Corp of Saskatchewan, Inc.		50,000		2,185
Precision Drilling Corp.*		262,806		1,789
Rogers Communications, Inc., Class B		94,800		3,433
Talisman Energy Inc		452,200		5,183
Tim Hortons, Inc.		17,010		897
Toronto-Dominion Bank (The)		114,800		8,981
Yamana Gold, Inc.		654,950		10,086
				101,690
Chile - 0.4%
Banco Santander Chile ADR		27,378		2,122
CFR Pharmaceuticals S.A.		3,865,598		868
ENTEL Chile S.A.		96,520		1,831
Parque Arauco S.A.		828,931		1,473
Sociedad Quimica y Minera de Chile S.A. ADR		35,406		1,971
Sonda S.A.		246,221		692
				8,957
China - 2.6%
Anhui Conch Cement Co. Ltd., Class H		1,654,000		4,537
China BlueChemical Ltd., Class H		1,500,000		858
China Oilfield Services Ltd., Class H		3,592,000		5,206
China Petroleum & Chemical Corp., Class H		4,773,700		4,279
China Shipping Container Lines Co. Ltd., Class H*		13,622,000		3,308
CNOOC Ltd.		2,382,000		4,805
Dongyue Group		359,000		169
Great Wall Motor Co. Ltd., Class H		316,000		635
Haitian International Holdings Ltd.		504,000		500
Hollysys Automation Technologies Ltd.*		50,550		431

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.9% continued
China - 2.6% continued
Industrial & Commercial Bank of China, Class H		5,367,000	$	3,001
Lenovo Group Ltd.		4,630,000		3,950
Mindray Medical International Ltd. ADR		168,600		5,107
PetroChina Co. Ltd., Class H		4,574,000		5,952
Spreadtrum Communications, Inc. ADR		39,707		701
Sun Art Retail Group Ltd.		581,500		638
Weichai Power Co. Ltd., Class H*		1,455,000		5,819
WuXi PharmaTech Cayman, Inc. ADR*		37,654		532
Yanzhou Coal Mining Co. Ltd. ADR		202,200		3,096
				53,524
Colombia - 0.4%
Bancolombia S.A. ADR		95,900		5,931
Ecopetrol S.A.		852,007		2,382
				8,313
Czech Republic - 0.2%
Komercni Banka A.S.		19,800		3,440
Denmark - 1.1%
Chr Hansen Holding A/S		46,329		1,191
Coloplast A/S, Class B		18,311		3,291
Novo Nordisk A/S, Class B		100,590		14,555
SimCorp A/S		4,326		744
William Demant Holding A/S*		30,865		2,774
				22,555
Finland - 0.3%
Kone OYJ, Class B		47,927		2,902
Nokia OYJ		790,341		1,628
Nokian Renkaat OYJ		50,502		1,925
				6,455
France - 6.7%
Accor S.A.		98,130		3,090
Alstom S.A.		88,770		2,820
Arkema S.A.		36,521		2,393
AXA S.A.		1,107,161		14,819
BNP Paribas S.A.		279,063		10,773
Cap Gemini S.A.		114,900		4,236
Carrefour S.A.		194,351		3,591
Christian Dior S.A.		34,255		4,718
Cie de St-Gobain		85,660		3,170
Cie Generale d’Optique Essilor International S.A.		80,883		7,514
Danone S.A.		115,610		7,178
France Telecom S.A.		672,503		8,850
JCDecaux S.A.		113,330		2,501
L’Oreal S.A.		99,690		11,678
Pernod-Ricard S.A.		77,780		8,321
Sanofi		248,238		18,825
Schneider Electric S.A.		133,900		7,461
Societe Generale S.A.*		78,200		1,844
Total S.A.		70,546		3,184
Unibail-Rodamco S.E.		38,210		7,050
Zodiac Aerospace		16,137		1,642
				135,658
Germany - 4.6%
Adidas A.G.		47,490		3,406
Allianz S.E. (Registered)		141,450		14,224
BASF S.E.		17,344		1,205
Bayer A.G. (Registered)		113,423		8,179
Bayerische Motoren Werke A.G.		83,624		6,059
Brenntag A.G.		13,271		1,468
Daimler A.G. (Registered)		218,380		9,822
Deutsche Bank A.G. (Registered)		28,256		1,027
Deutsche Boerse A.G.		199,629		10,775
E.ON A.G.		204,840		4,413
Gerry Weber International A.G.		33,920		1,402
Hugo Boss A.G.		6,935		686
Linde A.G.		63,080		9,826
MTU Aero Engines Holding A.G.		31,801		2,335
Pfeiffer Vacuum Technology A.G.		4,422		450
SAP A.G.		124,030		7,325
Siemens A.G. (Registered)		77,237		6,493
Symrise A.G.		167,085		5,076
				94,171
Hong Kong - 2.1%
AIA Group Ltd.		1,871,400		6,452
Cheung Kong Holdings Ltd.		719,417		8,881
China High Precision Automation Group Ltd.		392,000		76
China Mobile Ltd.		693,000		7,616
China Overseas Land & Investment Ltd.		852,000		1,999
Hang Lung Properties Ltd.		624,000		2,124
Hang Seng Bank Ltd.		321,700		4,409
Hutchison Telecommunications Hong Kong Holdings Ltd.		3,115,000		1,449
Orient Overseas International Ltd.		1,158,000		5,674
SA SA International Holdings Ltd.		1,076,000		680

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.9% continued
Hong Kong - 2.1% continued
SmarTone Telecommunications Holding Ltd.		649,000	$	1,252
Value Partners Group Ltd.		1,116,000		544
Yingde Gases		664,500		606
				41,762
India - 1.0%
HDFC Bank Ltd. ADR		139,065		4,533
ICICI Bank Ltd. ADR		97,000		3,144
Infosys Ltd. ADR		115,417		5,201
Tata Motors Ltd. ADR		306,099		6,722
				19,600
Indonesia - 0.3%
Alam Sutera Realty Tbk PT		8,568,500		451
Bank Rakyat Indonesia Persero Tbk PT ADR		108,200		1,463
Kalbe Farma Tbk PT		3,307,500		1,331
Media Nusantara Citra Tbk PT		3,420,000		728
United Tractors Tbk PT		1,108,166		2,550
				6,523
Ireland - 1.9%
Covidien PLC		162,420		8,690
CRH PLC		295,513		5,735
Experian PLC		194,445		2,747
ICON PLC ADR*		253,500		5,711
Paddy Power PLC		23,969		1,565
Shire PLC		396,739		11,403
WPP PLC		210,952		2,564
				38,415
Israel - 0.8%
Ceragon Networks Ltd.*		149,835		1,284
Check Point Software Technologies Ltd.*		32,468		1,610
Israel Chemicals Ltd.		379,400		4,188
Teva Pharmaceutical Industries Ltd. ADR		209,170		8,250
				15,332
Italy - 0.1%
Pirelli & C. S.p.A.		157,003		1,656
Japan - 12.9%
Aeon Co. Ltd.		742,900		9,261
Ain Pharmaciez, Inc.		10,900		656
Amada Co. Ltd.		548,403		3,253
Asahi Glass Co. Ltd.		576,500		3,881
Bank of Yokohama (The) Ltd.		1,713,119		8,092
Canon, Inc.		172,100		6,892
Cosmos Pharmaceutical Corp.		400		27
CyberAgent, Inc.		547		1,410
Daito Trust Construction Co. Ltd.		30,000		2,846
Denso Corp.		210,500		7,168
Exedy Corp.		34,500		749
FamilyMart Co. Ltd.		44,200		2,024
FANUC Corp.		57,920		9,517
Fast Retailing Co. Ltd.		18,500		3,714
Fuji Heavy Industries Ltd.		1,134,200		9,156
Gree, Inc.		99,200		1,994
Hitachi Ltd.		2,430,300		14,948
Inpex Corp.		900		5,046
Japan Tobacco, Inc.		322,000		9,543
KDDI Corp.		1,435		9,257
Komatsu Ltd.		312,700		7,495
Lawson, Inc.		33,800		2,365
Miraca Holdings, Inc.		22,100		919
Mitsubishi Corp.		380,022		7,675
Mitsui & Co. Ltd.		618,700		9,180
Mizuho Financial Group, Inc.		5,562,800		9,418
MS&AD Insurance Group Holdings		219,841		3,848
Nexon Co. Ltd.*		48,800		955
Nikon Corp.		264,500		8,036
Nintendo Co. Ltd.		35,690		4,165
Nippon Steel Corp.		1,719,000		3,896
Nitori Holdings Co. Ltd.		40,200		3,807
Nitto Denko Corp.		211,500		9,021
NKSJ Holdings, Inc.		266,435		5,679
ORIX Corp.		75,210		7,001
Secom Co. Ltd.		151,000		6,932
Sega Sammy Holdings, Inc.		213,600		4,345
Ship Healthcare Holdings, Inc.		31,900		768
SMC Corp.		63,991		11,076
Softbank Corp.		68,200		2,536
Sugi Holdings Co. Ltd.		85,528		2,809
Sumitomo Metal Mining Co. Ltd.		137,843		1,552
Sumitomo Mitsui Financial Group, Inc.		321,300		10,600
Sumitomo Mitsui Trust Holdings, Inc.		2,101,889		6,280
Sundrug Co Ltd.		13,500		439
Suzuki Motor Corp.		395,785		8,113
THK Co. Ltd.		160,658		3,043
Toyota Motor Corp.		211,100		8,509
Tsuruha Holdings, Inc.		6,800		423

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.9% continued
Japan - 12.9% continued
United Arrows Ltd.		24,400	$	609
				260,928
Malaysia - 0.6%
Genting Bhd.		1,671,700		5,043
Sime Darby Bhd.		2,197,495		6,857
				11,900
Netherlands - 4.5%
ASML Holding N.V.		180,001		9,173
Core Laboratories N.V.		103,600		12,007
Heineken N.V.		276,124		14,424
Koninklijke KPN N.V.		255,700		2,449
Reed Elsevier N.V.		815,700		9,331
Royal Dutch Shell PLC, Class A		755,585		25,534
Royal Dutch Shell PLC, Class B		259,131		9,044
Unilever N.V. - CVA		277,429		9,286
				91,248
Nigeria - 0.0%
Guaranty Trust Bank PLC		9,513,498		877
Norway - 2.3%
DNB ASA		664,600		6,611
Norsk Hydro ASA		2,138,718		9,652
Norwegian Air Shuttle AS*		44,560		811
Schibsted ASA		38,193		1,244
Seadrill Ltd.		131,500		4,694
Statoil ASA		579,632		13,859
Statoil ASA ADR		235,800		5,626
Telenor ASA		294,980		4,919
				47,416
Peru - 0.2%
Credicorp Ltd.		26,858		3,381
Philippines - 0.1%
International Container Terminal Services, Inc.		330,980		580
SM Prime Holdings, Inc.		2,742,875		853
				1,433
Singapore - 1.4%
DBS Group Holdings Ltd.		451,418		4,983
Global Logistic Properties Ltd.*		1,709,000		2,847
Golden Agri-Resources Ltd.		2,945,397		1,575
Keppel Corp. Ltd.		570,700		4,676
United Overseas Bank Ltd.		962,100		14,297
				28,378
South Africa - 1.9%
Aspen Pharmacare Holdings Ltd.*		132,202		2,039
Bidvest Group Ltd.		112,589		2,515
FirstRand Ltd.		934,475		3,027
Foschini Group (The) Ltd.		126,667		1,986
Life Healthcare Group Holdings Ltd.		469,552		1,789
Mr Price Group Ltd.		17,060		234
MTN Group Ltd.		367,130		6,343
Naspers Ltd., Class N		50,138		2,680
Sasol Ltd.		56,057		2,357
Sasol Ltd. ADR		298,500		12,671
Shoprite Holdings Ltd.		119,872		2,214
Tiger Brands Ltd.		50,348		1,512
				39,367
South Korea - 2.6%
Celltrion, Inc.		71,787		1,918
Hanjin Shipping Co. Ltd.*		166,800		2,167
Hyundai Mobis		24,600		5,955
Hyundai Motor Co.		29,090		5,968
POSCO		13,200		4,215
POSCO ADR		108,700		8,744
Samsung Electronics Co. Ltd.		8,758		9,285
Samsung Heavy Industries Co. Ltd.		73,530		2,436
SK Telecom Co. Ltd. ADR		676,400		8,184
Woori Finance Holdings Co. Ltd. ADR		137,000		4,551
				53,423
Spain - 0.6%
Banco Santander S.A.		400,938		2,678
Inditex S.A.		75,693		7,829
Viscofan S.A.		31,712		1,366
				11,873
Sweden - 3.0%
Atlas Copco AB, Class A		725,633		15,667
Axis Communications AB		27,511		599
Getinge AB, Class B		493,551		12,230
Investor AB, Class B		269,940		5,164
JM AB		42,600		754
Millicom International Cellular S.A. SDR		35,934		3,390
Nibe Industrier AB, Class B		6,996		96
Sandvik AB		476,200		6,131
Svenska Cellulosa AB, Class B		302,800		4,547

NORTHERN FUNDS QUARTERLY REPORT    4    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.9% continued
Sweden - 3.0% continued
Telefonaktiebolaget LM Ericsson, Class B		765,201	$	6,982
Volvo AB, Class B		405,340		4,643
				60,203
Switzerland - 8.0%
ABB Ltd. (Registered)		328,880		5,368
Cie Financiere Richemont S.A.,
Class A (Bearer)		119,190		6,542
Credit Suisse Group A.G. ADR		168,600		3,090
Foster Wheeler A.G.*		227,215		3,938
Geberit A.G. (Registered)*		17,072		3,368
Glencore International PLC		590,937		2,746
Holcim Ltd. (Registered)		95,410		5,286
Nestle S.A. (Registered)		495,801		29,578
Noble Corp.		141,940		4,617
Novartis A.G. (Registered)		282,786		15,775
Novartis A.G. ADR		83,800		4,684
Orascom Development Holding A.G.*		6,832		109
Partners Group Holding A.G.		12,695		2,257
Roche Holding A.G. (Genusschein)		154,890		26,741
SGS S.A. (Registered)		1,079		2,022
Sika A.G. (Bearer)		438		844
Syngenta A.G. (Registered)		33,156		11,320
Transocean Ltd.		89,300		3,994
UBS A.G. (Registered)		713,130		8,340
Xstrata PLC		717,835		9,061
Zurich Insurance Group A.G.		58,500		13,200
				162,880
Taiwan - 0.8%
Advanced Semiconductor Engineering, Inc.		7,495,000		6,113
Taiwan Semiconductor Manufacturing Co. Ltd. ADR*		777,590		10,855
				16,968
Thailand - 0.4%
Advanced Info Service PCL (Registered)		513,000		2,979
BEC World PCL (Registered)		492,400		783
CP ALL PCL (Registered)		1,793,800		2,005
Kasikornbank PCL (Registered)		495,900		2,590
				8,357
Turkey - 0.8%
Akbank T.A.S.		1,216,300		4,464
BIM Birlesik Magazalar A.S.		52,235		2,155
KOC Holding A.S. ADR		83,790		1,608
Turkiye Garanti Bankasi A.S.		1,814,090		7,148
Turkiye Halk Bankasi A.S.		222,287		1,745
				17,120
United Kingdom - 15.7%
Abcam PLC		307,072		2,008
AMEC PLC		185,677		2,931
Amlin PLC		301,200		1,672
Anglo American PLC		338,115		11,094
ARM Holdings PLC		205,963		1,640
ARM Holdings PLC ADR		530,700		12,625
Ashmore Group PLC		355,584		1,951
AstraZeneca PLC		319,600		14,286
Babcock International Group PLC		299,385		4,006
BAE Systems PLC		2,050,000		9,277
Berkeley Group Holdings PLC*		138,921		3,078
BG Group PLC		345,760		7,077
BHP Billiton PLC		216,710		6,189
BP PLC ADR		120,984		4,905
British American Tobacco PLC		260,527		13,261
Croda International PLC		51,007		1,811
Derwent London PLC		54,979		1,598
Diageo PLC		1,794,968		46,178
Dunelm Group PLC		163,563		1,332
Elementis PLC		319,821		999
GlaxoSmithKline PLC		451,287		10,234
Halma PLC		216,042		1,419
Hiscox Ltd.		148,618		996
HSBC Holdings PLC		473,800		4,178
IG Group Holdings PLC		203,532		1,532
Imperial Tobacco Group PLC		458,180		17,630
InterContinental Hotels Group PLC		56,874		1,375
ITV PLC		1,619,743		1,955
John Wood Group PLC		184,995		1,995
Johnson Matthey PLC		123,548		4,284
Jupiter Fund Management PLC		231,848		783
Kingfisher PLC		390,223		1,765
Lancashire Holdings Ltd.		170,825		2,141
Marks & Spencer Group PLC		866,500		4,430
Meggitt PLC		302,197		1,833
Moneysupermarket.com Group PLC		276,715		544
Next PLC		46,300		2,322
Ocado Group PLC*		536,567		654
Pearson PLC		327,052		6,496
Petrofac Ltd.		60,615		1,325
Polyus Gold International Ltd.*		333,074		1,043

MULTI-MANAGER FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.9% continued
United Kingdom - 15.7% continued
Prudential PLC		350,791	$	4,065
Rightmove PLC		65,661		1,639
Rio Tinto PLC		263,150		12,568
Rio Tinto PLC ADR		154,300		7,377
Rolls-Royce Holdings PLC*		1,035,896		13,976
Rotork PLC		45,212		1,397
RPS Group PLC		165,388		542
Sage Group (The) PLC		1,091,600		4,743
Spirax-Sarco Engineering PLC		31,643		986
Sports Direct International PLC*		106,499		511
SSE PLC		313,168		6,828
St. James’s Place PLC		143,776		754
Standard Chartered PLC		646,402		14,093
Tullow Oil PLC		113,527		2,621
Unilever PLC		271,100		9,112
Victrex PLC		59,703		1,191
Vodafone Group PLC ADR		296,726		8,362
Weir Group (The) PLC		56,440		1,361
Willis Group Holdings PLC		246,425		8,992
				317,970
United States - 2.3%
Axis Capital Holdings Ltd.		278,200		9,056
Bunge Ltd.		77,940		4,890
Carnival Corp.		143,300		4,911
Copa Holdings S.A., Class A		18,864		1,556
Everest Re Group Ltd.		68,300		7,068
Freeport-McMoRan Copper & Gold, Inc.		114,434		3,899
Philip Morris International, Inc.		68,316		5,961
RenaissanceRe Holdings Ltd.		68,451		5,203
Schlumberger Ltd.		68,790		4,465
				47,009
Total Common Stocks(1) (Cost $1,866,500)				1,866,578
PREFERRED STOCKS - 1.7%
Brazil - 1.5%
Banco Bradesco S.A.		442,200		6,559
Cia Paranaense de Energia, Class B ADR		619,700		13,435
Itau Unibanco Holding S.A. ADR		311,720		4,339
Petroleo Brasileiro S.A.		549,500		4,971
Suzano Papel e Celulose S.A., Class A		124,200		246
				29,550
Germany - 0.2%
Henkel A.G. & Co. KGaA		75,998		5,047
Total Preferred Stocks (1) (Cost $39,788)				34,597
INVESTMENT COMPANIES - 6.0%
iShares MSCI EAFE Index Fund		147,700		7,379
iShares MSCI United Kingdom Index Fund		268,900		4,381
Northern Institutional Funds - Diversified Assets Portfolio(2) (3)		110,580,123		110,580
Total Investment Companies (Cost $122,085)				122,340
SHORT-TERM INVESTMENTS - 0.2%
U.S. Treasury Bill,
0.14%, 11/1/12(4)	$	2,945	$	2,944
Total Short-Term Investments (Cost $2,944)				2,944
Total Investments - 99.8% (Cost $2,031,317)				2,026,459
Other Assets less Liabilities - 0.2%				4,675
NET ASSETS - 100.0%			$	2,031,134

(1) In accordance with the Fund’s prospectus, adjustment factors were provided by an independent evaluation service to determine the value of certain foreign securities.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(3) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $79,254,000 with net purchases of approximately $31,326,000 during the three months ended June 30, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

NORTHERN FUNDS QUARTERLY REPORT    6    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

At June 30, 2012, the Multi-Manager International Equity Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
Mini MSCI EAFE Index		398	$	28,334		Long		9/12	$	1,155

At June 30, 2012, the Multi-Manager International Equity Fund had outstanding foreign currency exchange contracts as follows:

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
British Pound		65	United States Dollar		101		7/2/12	$	(1	)
British Pound		111	United States Dollar		173		7/2/12		(1	)
Danish Krone		15	United States Dollar		2		7/2/12		—	*
Danish Krone		169	United States Dollar		28		7/2/12		(1	)
Euro		309	United States Dollar		385		7/2/12		(6	)
Euro		340	United States Dollar		422		7/2/12		(8	)
Euro		2,015	United States Dollar		2,503		7/2/12		(48	)
Japanese Yen		17,318	United States Dollar		218		7/2/12		2
Japanese Yen		11,250	United States Dollar		142		7/2/12		1
Japanese Yen		9,021	United States Dollar		114		7/2/12		1
Japanese Yen		5,925	United States Dollar		75		7/2/12		1
Japanese Yen		3,646	United States Dollar		46		7/2/12		—	*
Japanese Yen		13,828	United States Dollar		173		7/2/12		—	*
Norwegian Kroner		1,189	United States Dollar		197		7/2/12		(3	)
Singapore Dollar		88	United States Dollar		69		7/2/12		(1	)
Singapore Dollar		100	United States Dollar		78		7/2/12		(1	)
Swiss Franc		438	United States Dollar		455		7/2/12		(7	)
United States Dollar		108	Australian Dollar		107		7/2/12		2
United States Dollar		654	British Pound		420		7/2/12		4
United States Dollar		54	British Pound		35		7/2/12		1
United States Dollar		5	British Pound		3		7/2/12		—	*
United States Dollar		710	Euro		570		7/2/12		11
United States Dollar		540	Euro		435		7/2/12		11
United States Dollar		198	Euro		158		7/2/12		3
United States Dollar		37	Euro		30		7/2/12		1
United States Dollar		280	Israeli Shekel		1,104		7/2/12		2
United States Dollar		43	Japanese Yen		3,458		7/2/12		—	*
United States Dollar		50	Japanese Yen		3,967		7/2/12		—	*
United States Dollar		66	Japanese Yen		5,304		7/2/12		—	*
United States Dollar		70	Japanese Yen		5,555		7/2/12		—	*
United States Dollar		41	South African Rand		352		7/2/12		2
British Pound		56	United States Dollar		86		7/3/12		(1	)
British Pound		71	United States Dollar		110		7/3/12		(1	)
British Pound		398	United States Dollar		617		7/3/12		(7	)
British Pound		1,085	United States Dollar		1,684		7/3/12		(16	)
Canadian Dollar		100	United States Dollar		97		7/3/12		(1	)
Euro		492	United States Dollar		622		7/3/12		—	*
Euro		181	United States Dollar		225		7/3/12		(4	)
Hong Kong Dollar		600	United States Dollar		77		7/3/12		—	*
Hong Kong Dollar		165	United States Dollar		21		7/3/12		—	*
Hong Kong Dollar		242	United States Dollar		31		7/3/12		—	*
Hong Kong Dollar		292	United States Dollar		38		7/3/12		—	*
Japanese Yen		18,949	United States Dollar		239		7/3/12		2
Japanese Yen		563	United States Dollar		7		7/3/12		—	*
Japanese Yen		3,963	United States Dollar		50		7/3/12		—	*
Japanese Yen		19,101	United States Dollar		239		7/3/12		—	*
Norwegian Kroner		18	United States Dollar		3		7/3/12		—	*
Singapore Dollar		45	United States Dollar		35		7/3/12		—	*
Singapore Dollar		79	United States Dollar		62		7/3/12		(1	)
South African Rand		10,186	United States Dollar		1,208		7/3/12		(37	)
Swiss Franc		14	United States Dollar		15		7/3/12		—	*
United States Dollar		176	Australian Dollar		175		7/3/12		3
United States Dollar		131	Australian Dollar		128		7/3/12		—	*
United States Dollar		367	British Pound		237		7/3/12		4
United States Dollar		34	British Pound		22		7/3/12		—	*
United States Dollar		246	Canadian Dollar		255		7/3/12		4
United States Dollar		211	Canadian Dollar		215		7/3/12		—	*
United States Dollar		45	Canadian Dollar		46		7/3/12		—	*

MULTI-MANAGER FUNDS    7    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
United States Dollar		543	Euro		437		7/3/12	$	10
United States Dollar		503	Euro		405		7/3/12		10
United States Dollar		470	Euro		378		7/3/12		9
United States Dollar		150	Euro		121		7/3/12		3
United States Dollar		43	Euro		35		7/3/12		1
United States Dollar		654	Euro		517		7/3/12		—	*
United States Dollar		487	Euro		385		7/3/12		—	*
United States Dollar		823	Hong Kong Dollar		6,384		7/3/12		—	*
United States Dollar		98	Hong Kong Dollar		757		7/3/12		—	*
United States Dollar		96	Hong Kong Dollar		748		7/3/12		—	*
United States Dollar		224	Hong Kong Dollar		1,736		7/3/12		—	*
United States Dollar		13	Japanese Yen		1,056		7/3/12		—	*
United States Dollar		32	Japanese Yen		2,554		7/3/12		—	*
United States Dollar		68	Japanese Yen		5,461		7/3/12		—	*
United States Dollar		74	Japanese Yen		5,926		7/3/12		—	*
United States Dollar		12	Japanese Yen		984		7/3/12		—	*
United States Dollar		13	Japanese Yen		1,042		7/3/12		—	*
United States Dollar		26	Japanese Yen		2,032		7/3/12		—	*
United States Dollar		226	Japanese Yen		18,017		7/3/12		—	*
United States Dollar		51	Japanese Yen		4,031		7/3/12		—	*
United States Dollar		766	Japanese Yen		61,146		7/3/12		(1	)
United States Dollar		153	Japanese Yen		12,150		7/3/12		(1	)
United States Dollar		1,692	Japanese Yen		134,206		7/3/12		(13	)
United States Dollar		112	South African Rand		941		7/3/12		3
United States Dollar		100	South African Rand		847		7/3/12		3
United States Dollar		70	South African Rand		590		7/3/12		2
United States Dollar		1,506	Swedish Krona		10,637		7/3/12		32
United States Dollar		411	Swedish Krona		2,904		7/3/12		9
United States Dollar		759	Swiss Franc		734		7/3/12		14
British Pound		496	United States Dollar		779		7/5/12		1
Euro		353	United States Dollar		447		7/5/12		—	*
Hong Kong Dollar		345	United States Dollar		44		7/5/12		—	*
Hong Kong Dollar		233	United States Dollar		30		7/5/12		—	*
Japanese Yen		37,428	United States Dollar		469		7/5/12		—	*
Singapore Dollar		15	United States Dollar		12		7/5/12		—	*
Singapore Dollar		18	United States Dollar		15		7/5/12		—	*
South African Rand		3,809	United States Dollar		452		7/5/12		(14	)
United States Dollar		79	South African Rand		665		7/5/12		2
United States Dollar		32	South African Rand		270		7/5/12		1
United States Dollar		129	South African Rand		1,054		7/6/12		—	*
British Pound		10,546	United States Dollar		17,010		7/26/12		495
British Pound		8,503	United States Dollar		13,786		7/26/12		470
United States Dollar		30,130	British Pound		19,049		7/26/12		(299	)
Japanese Yen		425,213	United States Dollar		5,328		9/20/12		2
Total								$	649

* Amount rounds to less than one thousand.

At June 30, 2012, the industry sectors for the Multi-Manager International Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		10.1	%
Consumer Staples		12.7
Energy		10.5
Financials		21.4
Health Care		10.3
Industrials		11.3
Information Technology		6.4
Materials		10.9
Telecommunication Services		4.0
Utilities		2.4
Total		100.0	%

NORTHERN FUNDS QUARTERLY REPORT    8    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

At June 30, 2012, the Multi-Manager International Equity Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
United States Dollar		20.3	%
Euro		18.5
British Pound		16.7
Japanese Yen		13.6
Swiss Franc		6.8
All other currencies less than 5%		24.1
Total		100.0	%

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	2,062,471
Gross tax appreciation of investments	$	115,884
Gross tax depreciation of investments		(151,896	)
Net tax depreciation of investments	$	(36,012	)

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on June 30, 2012 using adjustment factors designed to reflect more accurately the fair value of the securities. The fair valuation of these securities resulted in their categorization as Level 2 investments.

Level 3 - Valuations based on inputs that are unobservable and significant. The Fund utilized the following techniques on Level 3 investments: The Fund valued a security using a price provided by NTGI PVC.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager International Equity Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL  3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	19,024	$	173,603		$	—	$	192,627
Consumer Staples		17,714		219,863			—		237,577
Energy		87,438		107,508			—		194,946
Financials		96,942		289,441			—		386,383
Health Care		32,974		164,824			—		197,798
Industrials		7,101		208,718			76		215,895
Information Technology		32,707		90,096			—		122,803
Materials		67,160		142,412			—		209,572
Telecommunication Services		19,979		57,296			—		77,275
Utilities		18,995		12,707			—		31,702
Preferred Stocks
Consumer Staples		—		5,047			—		5,047
Energy		—		4,971			—		4,971
Financials		4,339		6,559			—		10,898
Materials		—		246			—		246
Utilities		13,435		—			—		13,435
Investment Companies		122,340		—			—		122,340
Short-Term Investments		—		2,944			—		2,944
Total Investments	$	540,148	$	1,486,235		$	76	$	2,026,459
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	1,155	$	—		$	—	$	1,155
Foreign Currency Exchange Contracts		—		1,122			—		1,122
Liabilities
Foreign Currency Exchange Contracts		—		(473	)		—		(473	)
Total Other Financial Instruments	$	1,155	$	649		$	—	$	1,804

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

MULTI-MANAGER FUNDS    9    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	BALANCE AS OF 3/31/12 (000S)		REALIZED GAINS (000S)		REALIZED LOSSES (000S)		CHANGE IN UNREALIZED APPRECIATION (000S)		CHANGE IN UNREALIZED DEPRECIATION (000S)		PURCHASES (000S)		SALES (000S)		TRANSFERS INTO LEVEL 3 (000S)		TRANSFERS OUT OF LEVEL 3 (000S)		BALANCE AS OF 6/30/12 (000S)
Common Stock
Industrials	$	—	$	—	$	—	$	—	$	—	$	76	$	—	$	—	$	—	$	76

The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at June 30, 2012 was $(185).

NORTHERN FUNDS QUARTERLY REPORT    10    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER LARGE CAP FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.2%
Aerospace/Defense - 2.7%
Boeing (The) Co.		38,342	$	2,849
Northrop Grumman Corp.		129,900		8,286
Raytheon Co.		220,300		12,467
United Technologies Corp.		35,071		2,649
				26,251
Agriculture - 1.1%
Archer-Daniels-Midland Co.		252,500		7,454
Philip Morris International, Inc.		38,900		3,394
				10,848
Apparel - 1.9%
Burberry Group PLC ADR		43,605		1,816
Coach, Inc.		78,120		4,568
NIKE, Inc., Class B		108,284		9,505
Ralph Lauren Corp.		20,495		2,871
				18,760
Auto Manufacturers - 1.0%
General Motors Co.*		299,100		5,898
PACCAR, Inc.		112,000		4,390
				10,288
Auto Parts & Equipment - 0.2%
BorgWarner, Inc.*		28,943		1,898
Banks - 5.6%
Bank of New York Mellon (The) Corp.		383,300		8,413
Capital One Financial Corp.		19,600		1,071
Citigroup, Inc.		295,390		8,097
Goldman Sachs Group (The), Inc.		85,783		8,223
JPMorgan Chase & Co.		150,000		5,360
Morgan Stanley		113,398		1,655
U.S. Bancorp		226,335		7,279
Wells Fargo & Co.		467,017		15,617
				55,715
Beverages - 0.3%
Anheuser-Busch InBev N.V. ADR		33,853		2,696
Biotechnology - 1.6%
Alexion Pharmaceuticals, Inc.*		25,625		2,545
Biogen Idec, Inc.*		69,776		10,074
Illumina, Inc.*		8,127		328
Vertex Pharmaceuticals, Inc.*		54,295		3,036
				15,983
Chemicals - 2.8%
E.I. du Pont de Nemours & Co.		164,200		8,304
Monsanto Co.		120,409		9,967
Mosaic (The) Co.		85,700		4,693
Praxair, Inc.		44,682		4,858
				27,822
Commercial Services - 0.6%
Mastercard, Inc., Class A		12,591		5,416
Computers - 5.7%
Accenture PLC, Class A		94,395		5,672
Apple, Inc.*		55,710		32,535
EMC Corp.*		226,719		5,811
Hewlett-Packard Co.		322,000		6,475
International Business Machines Corp.		21,476		4,200
NetApp, Inc.*		38,346		1,220
Teradata Corp.*		7,747		558
				56,471
Cosmetics/Personal Care - 0.6%
Estee Lauder (The) Cos., Inc., Class A		99,783		5,400
Distribution/Wholesale - 0.3%
W.W. Grainger, Inc.		15,511		2,966
Diversified Financial Services - 1.2%
American Express Co.		43,384		2,525
Visa, Inc., Class A		70,974		8,775
				11,300
Electric - 1.2%
Edison International		175,200		8,094
NRG Energy, Inc.*		194,100		3,370
				11,464
Electronics - 0.3%
Agilent Technologies, Inc.		77,093		3,025
Environmental Control - 0.8%
Waste Management, Inc.		245,500		8,200
Food - 2.0%
Kraft Foods, Inc., Class A		210,300		8,122
Safeway, Inc.		420,262		7,627
Whole Foods Market, Inc.		40,074		3,820
				19,569
Healthcare - Products - 0.8%
Baxter International, Inc.		156,300		8,307
Healthcare - Services - 1.2%
Quest Diagnostics, Inc.		140,000		8,386

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.2% continued
Healthcare - Services - 1.2% continued
UnitedHealth Group, Inc.		52,826	$	3,090
				11,476
Household Products/Wares - 0.8%
Kimberly-Clark Corp.		97,200		8,142
Insurance - 6.8%
Allstate (The) Corp.		238,600		8,373
American International Group, Inc.*		158,400		5,083
Aon PLC		122,300		5,721
Hartford Financial Services Group, Inc.		472,900		8,337
Lincoln National Corp.		85,000		1,859
Loews Corp.		158,400		6,480
Marsh & McLennan Cos., Inc.		248,400		8,006
MetLife, Inc.		256,400		7,910
Travelers (The) Cos., Inc.		128,600		8,210
Unum Group		379,000		7,250
				67,229
Internet - 4.5%
Amazon.com, Inc.*		38,326		8,752
Baidu, Inc. ADR*		87,226		10,029
Facebook, Inc., Class A*		102,124		3,178
Google, Inc., Class A*		8,421		4,885
LinkedIn Corp., Class A*		46,885		4,982
priceline.com, Inc.*		15,209		10,107
Rackspace Hosting, Inc.*		25,802		1,134
Tencent Holdings Ltd. ADR		52,618		1,548
Youku, Inc. ADR*		8,473		184
				44,799
Leisure Time - 0.2%
Harley-Davidson, Inc.		50,145		2,293
Lodging - 0.5%
Marriott International, Inc., Class A - (Fractional Shares)*		9,000		—
Wynn Resorts Ltd.		49,789		5,164
				5,164
Machinery - Diversified - 0.4%
Cummins, Inc.		26,375		2,556
Roper Industries, Inc.		13,223		1,304
				3,860
Media - 2.8%
Comcast Corp., Class A		260,500		8,328
Time Warner, Inc.		160,000		6,160
Viacom, Inc., Class B		215,000		10,110
Walt Disney (The) Co.		57,056		2,767
				27,365
Metal Fabrication/Hardware - 0.9%
Precision Castparts Corp.		53,755		8,842
Mining - 1.6%
AngloGold Ashanti Ltd. ADR		277,000		9,512
Barrick Gold Corp.		173,500		6,519
				16,031
Miscellaneous Manufacturing - 0.7%
Danaher Corp.		46,881		2,442
Ingersoll-Rand PLC		114,000		4,808
				7,250
Office/Business Equipment - 1.0%
Pitney Bowes, Inc.		129,100		1,932
Xerox Corp.		1,045,700		8,230
				10,162
Oil & Gas - 6.9%
Apache Corp.		115,000		10,108
Canadian Natural Resources Ltd.		281,600		7,561
Chevron Corp.		78,600		8,292
Concho Resources, Inc.*		30,198		2,571
ConocoPhillips		115,000		6,426
Marathon Oil Corp.		329,500		8,425
Noble Energy, Inc.		55,000		4,665
Occidental Petroleum Corp.		123,036		10,553
Talisman Energy, Inc.		868,600		9,954
				68,555
Oil & Gas Services - 2.2%
Halliburton Co.		523,769		14,870
National Oilwell Varco, Inc.		101,348		6,531
				21,401
Pharmaceuticals - 10.8%
Abbott Laboratories		11,369		733
Allergan, Inc.		70,993		6,572
Bristol-Myers Squibb Co.		171,614		6,170
Cardinal Health, Inc.		192,600		8,089
Express Scripts Holding Co.*		183,754		10,259
Johnson & Johnson		120,300		8,127
Mead Johnson Nutrition Co.		90,524		7,288
Merck & Co., Inc.		310,000		12,943
Novo Nordisk A/S ADR		26,977		3,921

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER LARGE CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.2% continued
Pharmaceuticals - 10.8% continued
Perrigo Co.		525	$	62
Pfizer, Inc.		904,365		20,800
Sanofi ADR		300,000		11,334
Shire PLC ADR		37,892		3,273
Teva Pharmaceutical Industries Ltd. ADR		170,000		6,705
				106,276
Pipelines - 0.8%
Williams (The) Cos., Inc.		269,800		7,776
Real Estate Investment Trusts - 0.4%
American Tower Corp.		53,148		3,716
Retail - 10.7%
AutoZone, Inc.*		6,711		2,464
Best Buy Co., Inc.		198,000		4,150
Chipotle Mexican Grill, Inc.*		13,887		5,276
Cie Financiere Richemont S.A. ADR		229,636		1,242
Costco Wholesale Corp.		42,285		4,017
CVS Caremark Corp.		316,400		14,785
Dollar General Corp.*		21,330		1,160
Dollar Tree, Inc.*		30,458		1,639
Dunkin’ Brands Group, Inc.		54,906		1,886
Home Depot (The), Inc.		115,703		6,131
Inditex S.A. ADR		88,094		1,819
Limited Brands, Inc.		82,069		3,490
Lowe’s Cos., Inc.		293,100		8,336
Lululemon Athletica, Inc.*		78,200		4,663
McDonald’s Corp.		62,239		5,510
O’Reilly Automotive, Inc.*		54,834		4,594
Panera Bread Co., Class A*		5,651		788
Starbucks Corp.		203,427		10,847
TJX Cos., Inc.		332,974		14,295
Wal-Mart Stores, Inc.		17,532		1,222
Yum! Brands, Inc.		118,627		7,642
				105,956
Semiconductors - 1.7%
ARM Holdings PLC ADR		39,987		951
Avago Technologies Ltd.		52,164		1,873
Intel Corp.		305,200		8,133
QUALCOMM, Inc.		111,366		6,201
				17,158
Software - 4.1%
CA, Inc.		704,000		19,071
Check Point Software Technologies Ltd.*		43,358		2,150
Intuit, Inc.		22,664		1,345
Microsoft Corp.		230,300		7,045
Red Hat, Inc.*		51,372		2,901
Salesforce.com, Inc.*		21,515		2,975
VMware, Inc., Class A*		51,741		4,711
				40,198
Telecommunications - 4.3%
AT&T, Inc.		228,400		8,145
Cisco Systems, Inc.		975,200		16,744
Crown Castle International Corp.*		22,519		1,321
Motorola Solutions, Inc.		164,814		7,929
Verizon Communications, Inc.		182,300		8,102
				42,241
Transportation - 1.2%
Union Pacific Corp.		100,983		12,048
Total Common Stocks (Cost $813,391)				940,317
PREFERRED STOCKS - 0.1%
Banks - 0.1%
Wells Fargo & Co.*		34,675		1,047
Total Preferred Stocks (Cost $575)				1,047
INVESTMENT COMPANIES - 3.2%
Northern Institutional Funds - Diversified Assets Portfolio(1) (2)		31,038,820		31,039
Total Investment Companies (Cost $31,039)				31,039

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.1%
U.S. Treasury Bill,
0.14%, 11/1/12(3)	$	1,115	$	1,115
Total Short-Term Investments (Cost $1,114)				1,115
Total Investments - 98.6% (Cost $846,119)				973,518
Other Assets less Liabilities - 1.4%				14,320
NET ASSETS - 100.0%			$	987,838

(1) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $30,790,000 with net purchases of approximately $249,000 during the three months ended June 30, 2012.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the Multi-Manager Large Cap Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
S&P 500		19	$	6,443		Long		9/12	$	364

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	857,286
Gross tax appreciation of investments	$	171,426
Gross tax depreciation of investments		(55,194	)
Net tax appreciation of investments	$	116,232

At June 30, 2012, the industry sectors for the Multi-Manager Large Cap Fund were:

INDUSTRY SECTOR	% OF  LONG-TERM INVESTMENTS
Consumer Discretionary		17.6	%
Consumer Staples		7.9
Energy		10.4
Financials		13.8
Health Care		14.6
Industrials		8.0
Information Technology		19.9
Materials		4.7
Telecommunication Services		1.9
Utilities		1.2
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Large Cap Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	940,317	(1)	$	—	$	—	$	940,317
Preferred Stocks		1,047			—		—		1,047
Investment Companies		31,039			—		—		31,039
Short-Term Investments		—			1,115		—		1,115
Total Investments	$	972,403		$	1,115	$	—	$	973,518
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	364		$	—	$	—	$	364

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    4    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6%
Aerospace/Defense - 1.7%
Exelis, Inc.		41,100	$	405
L-3 Communications Holdings, Inc.		63,800		4,722
Northrop Grumman Corp.		51,100		3,260
Raytheon Co.		50,700		2,869
Triumph Group, Inc.		75,375		4,241
				15,497
Agriculture - 0.6%
Archer-Daniels-Midland Co.		118,700		3,504
Lorillard, Inc.		14,650		1,933
				5,437
Airlines - 0.0%
SkyWest, Inc.		68,200		445
Apparel - 1.2%
Coach, Inc.		59,250		3,465
Gildan Activewear, Inc.		133,400		3,671
Jones Group (The), Inc.		42,900		410
Michael Kors Holdings Ltd.*		89,500		3,745
				11,291
Auto Manufacturers - 0.3%
Navistar International Corp.*		38,800		1,101
Oshkosh Corp.*		70,900		1,485
				2,586
Auto Parts & Equipment - 1.4%
Autoliv, Inc.		48,000		2,624
BorgWarner, Inc.*		53,400		3,502
Cooper Tire & Rubber Co.		91,000		1,596
Dana Holding Corp.		92,500		1,185
Delphi Automotive PLC*		47,500		1,211
TRW Automotive Holdings Corp.*		70,400		2,588
				12,706
Banks - 4.5%
Capital One Financial Corp.		30,300		1,656
Comerica, Inc.		217,725		6,686
East West Bancorp, Inc.		106,055		2,488
Fifth Third Bancorp		431,825		5,786
Huntington Bancshares, Inc.		592,500		3,792
KeyCorp		1,281,500		9,919
Regions Financial Corp.		830,450		5,606
Signature Bank*		48,540		2,960
State Street Corp.		69,500		3,102
				41,995
Beverages - 0.4%
Coca-Cola Enterprises, Inc.		121,725		3,413
Biotechnology - 1.4%
Charles River Laboratories International, Inc.*		61,150		2,003
Human Genome Sciences, Inc.*		418,492		5,495
Illumina, Inc.*		61,300		2,476
Vertex Pharmaceuticals, Inc.*		47,700		2,667
				12,641
Chemicals - 2.8%
A. Schulman, Inc.		81,600		1,620
Agrium, Inc.		18,525		1,639
Ashland, Inc.		103,375		7,165
Cytec Industries, Inc.		70,250		4,119
Kronos Worldwide, Inc.		67,316		1,063
NewMarket Corp.		4,700		1,018
PolyOne Corp.		112,700		1,542
PPG Industries, Inc.		26,275		2,788
Sigma-Aldrich Corp.		41,515		3,069
Stepan Co.		18,790		1,770
				25,793
Commercial Services - 2.5%
Convergys Corp.		203,200		3,001
Green Dot Corp., Class A*		149,100		3,298
Hertz Global Holdings, Inc.*		372,650		4,770
R.R. Donnelley & Sons Co.		94,600		1,114
Robert Half International, Inc.		159,600		4,560
SAIC, Inc.		50,900		617
TeleTech Holdings, Inc.*		69,400		1,110
United Rentals, Inc.*		148,150		5,043
				23,513
Computers - 4.3%
Cadence Design Systems, Inc.*		584,875		6,428
Cognizant Technology Solutions Corp., Class A*		64,300		3,858
Computer Sciences Corp.		60,000		1,489
Diebold, Inc.		96,400		3,558
Fusion-io, Inc.*		49,662		1,037
IHS, Inc., Class A*		85,470		9,208
Lexmark International, Inc., Class A		52,200		1,388
MICROS Systems, Inc.*		79,944		4,093
Seagate Technology PLC		112,000		2,770
Sykes Enterprises, Inc.*		69,800		1,114
Teradata Corp.*		45,360		3,266

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Computers - 4.3% continued
Western Digital Corp.*		45,600	$	1,390
				39,599
Distribution/Wholesale - 1.5%
Fastenal Co.		184,585		7,441
Fossil, Inc.*		13,400		1,026
Ingram Micro, Inc., Class A*		55,300		966
LKQ Corp.*		134,986		4,508
				13,941
Diversified Financial Services - 4.1%
Affiliated Managers Group, Inc.*		26,640		2,916
Aircastle Ltd.		138,300		1,667
Ameriprise Financial, Inc.		89,900		4,698
Discover Financial Services		253,325		8,760
GFI Group, Inc.		158,800		565
IntercontinentalExchange, Inc.*		23,370		3,178
Invesco Ltd.		84,175		1,902
Raymond James Financial, Inc.		159,175		5,450
SLM Corp.		301,775		4,741
T. Rowe Price Group, Inc.		70,800		4,458
				38,335
Electric - 4.2%
Ameren Corp.		89,000		2,985
American Electric Power Co., Inc.		100,700		4,018
Cleco Corp.		100,525		4,205
CMS Energy Corp.		300,650		7,065
DTE Energy Co.		37,400		2,219
Entergy Corp.		71,900		4,881
FirstEnergy Corp.		31,125		1,531
Portland General Electric Co.		151,700		4,044
PPL Corp.		225,550		6,273
Public Service Enterprise Group, Inc.		67,800		2,204
				39,425
Electrical Components & Equipment - 0.5%
AMETEK, Inc.		68,095		3,399
Universal Display Corp.*		25,500		916
				4,315
Electronics - 2.9%
Agilent Technologies, Inc.		97,475		3,825
Amphenol Corp., Class A		69,445		3,814
FEI Co.*		37,475		1,793
Gentex Corp.		122,310		2,553
Jabil Circuit, Inc.		122,150		2,483
PerkinElmer, Inc.		86,600		2,234
Pulse Electronics Corp.		33,600		66
TE Connectivity Ltd.		85,400		2,725
Tech Data Corp.*		65,300		3,146
Trimble Navigation Ltd.*		75,535		3,475
Vishay Intertechnology, Inc.*		76,700		723
				26,837
Engineering & Construction - 0.5%
KBR, Inc.		65,525		1,619
Tutor Perini Corp.*		98,100		1,243
URS Corp.		54,000		1,884
				4,746
Environmental Control - 0.7%
Clean Harbors, Inc.*		28,895		1,630
Stericycle, Inc.*		50,315		4,613
				6,243
Food - 1.9%
Chiquita Brands International, Inc.*		65,800		329
Fresh Del Monte Produce, Inc.		42,800		1,005
Hain Celestial Group (The), Inc.*		30,050		1,654
JM Smucker (The) Co.		34,110		2,576
Kroger (The) Co.		107,900		2,502
Safeway, Inc.		239,500		4,347
Smithfield Foods, Inc.*		126,000		2,725
SUPERVALU, Inc.		67,800		351
Tyson Foods, Inc., Class A		114,400		2,154
				17,643
Forest Products & Paper - 0.7%
Boise, Inc.		241,400		1,588
International Paper Co.		34,500		997
MeadWestvaco Corp.		134,800		3,876
				6,461
Gas - 1.1%
Atmos Energy Corp.		37,100		1,301
NiSource, Inc.		259,925		6,433
UGI Corp.		82,300		2,422
				10,156
Hand/Machine Tools - 0.6%
Lincoln Electric Holdings, Inc.		67,930		2,975
Snap-on, Inc.		16,050		999

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Hand/Machine Tools - 0.6% continued
Stanley Black & Decker, Inc.		28,425	$	1,829
				5,803
Healthcare - Products - 3.6%
Boston Scientific Corp.*		311,700		1,767
C.R. Bard, Inc.		21,090		2,266
DENTSPLY International, Inc.		47,825		1,808
Edwards Lifesciences Corp.*		25,720		2,657
IDEXX Laboratories, Inc.*		47,805		4,596
Intuitive Surgical, Inc.*		12,288		6,805
Sirona Dental Systems, Inc.*		80,700		3,632
Varian Medical Systems, Inc.*		62,570		3,802
Volcano Corp.*		77,435		2,219
Zimmer Holdings, Inc.		68,000		4,377
				33,929
Healthcare - Services - 1.0%
Aetna, Inc.		87,300		3,385
Cigna Corp.		53,800		2,367
Coventry Health Care, Inc.		68,100		2,165
LifePoint Hospitals, Inc.*		41,100		1,684
				9,601
Home Builders - 0.3%
MDC Holdings, Inc.		77,050		2,517
Home Furnishings - 0.9%
Harman International Industries, Inc.		122,554		4,853
Whirlpool Corp.		58,300		3,566
				8,419
Household Products/Wares - 0.6%
American Greetings Corp., Class A		31,900		467
Church & Dwight Co., Inc.		86,606		4,804
				5,271
Housewares - 0.1%
Newell Rubbermaid, Inc.		67,100		1,217
Insurance - 5.5%
ACE Ltd.		70,300		5,211
Aflac, Inc.		13,700		583
Allstate (The) Corp.		211,700		7,429
American Financial Group, Inc.		49,800		1,954
Aspen Insurance Holdings Ltd.		30,700		887
Assurant, Inc.		49,600		1,728
Chubb (The) Corp.		11,300		823
Endurance Specialty Holdings Ltd.		53,153		2,037
Everest Re Group Ltd.		23,100		2,391
Genworth Financial, Inc., Class A*		35,900		203
Hartford Financial Services Group, Inc.		138,560		2,443
Lincoln National Corp.		380,575		8,323
Meadowbrook Insurance Group, Inc.		173,800		1,528
Montpelier Re Holdings Ltd.		33,200		707
PartnerRe Ltd.		10,700		810
Presidential Life Corp.		44,400		436
Principal Financial Group, Inc.		123,800		3,247
Tower Group, Inc.		139,500		2,911
Unum Group		100,500		1,923
Validus Holdings Ltd.		184,150		5,898
				51,472
Internet - 3.2%
Baidu, Inc. ADR*		28,400		3,265
Ctrip.com International Ltd. ADR*		158,653		2,659
F5 Networks, Inc.*		51,905		5,168
LinkedIn Corp., Class A*		18,100		1,923
Rackspace Hosting, Inc.*		41,500		1,824
SINA Corp.*		29,600		1,534
Splunk, Inc.*		60,400		1,697
TripAdvisor, Inc.*		87,550		3,913
ValueClick, Inc.*		275,650		4,518
Youku, Inc. ADR*		136,780		2,965
				29,466
Iron/Steel - 1.2%
Allegheny Technologies, Inc.		121,200		3,865
Cliffs Natural Resources, Inc.		84,700		4,175
Nucor Corp.		95,225		3,609
				11,649
Leisure Time - 0.3%
Polaris Industries, Inc.		41,960		2,999
Lodging - 0.2%
Marriott International, Inc., Class A - (Fractional Shares)*		34,801		—
Wyndham Worldwide Corp.		43,375		2,288
				2,288
Machinery - Diversified - 2.0%
AGCO Corp.*		124,600		5,698
Albany International Corp., Class A		63,400		1,186
IDEX Corp.		68,410		2,666
NACCO Industries, Inc., Class A		7,929		922
Rockwell Automation, Inc.		49,000		3,237

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Machinery - Diversified - 2.0% continued
Roper Industries, Inc.		49,541	$	4,884
				18,593
Media - 1.0%
CBS Corp., Class B (Non Voting)		82,425		2,702
DISH Network Corp., Class A		47,700		1,362
FactSet Research Systems, Inc.		34,260		3,184
Gannett Co., Inc.		130,900		1,928
				9,176
Metal Fabrication/Hardware - 0.9%
Timken Co.		190,350		8,716
Mining - 0.0%
USEC, Inc.*		172,000		170
Miscellaneous Manufacturing - 0.3%
Eaton Corp.		81,100		3,214
Multi-National - 0.1%
Banco Latinoamericano de Comercio Exterior S.A., Class E		57,900		1,241
Office/Business Equipment - 0.2%
Xerox Corp.		226,400		1,782
Oil & Gas - 4.6%
Concho Resources, Inc.*		40,470		3,445
Energen Corp.		161,925		7,308
Hess Corp.		47,200		2,051
HollyFrontier Corp.		177,825		6,300
Marathon Petroleum Corp.		55,125		2,476
Murphy Oil Corp.		70,600		3,550
Oasis Petroleum, Inc.*		90,345		2,185
Range Resources Corp.		37,440		2,316
Tesoro Corp.*		111,600		2,785
Valero Energy Corp.		154,600		3,734
W&T Offshore, Inc.		121,900		1,865
Western Refining, Inc.		129,000		2,873
Whiting Petroleum Corp.*		47,225		1,942
				42,830
Oil & Gas Services - 3.6%
Core Laboratories N.V.		58,400		6,769
FMC Technologies, Inc.*		175,210		6,873
Lufkin Industries, Inc.		69,473		3,774
Oceaneering International, Inc.		109,400		5,236
Oil States International, Inc.*		96,320		6,376
Superior Energy Services, Inc.*		216,702		4,384
				33,412
Packaging & Containers - 0.1%
Owens-Illinois, Inc.*		64,600		1,238
Pharmaceuticals - 2.7%
Cardinal Health, Inc.		128,950		5,416
Herbalife Ltd.		54,950		2,656
Ironwood Pharmaceuticals, Inc.*		82,700		1,140
McKesson Corp.		17,900		1,678
Mylan, Inc.*		191,438		4,091
Par Pharmaceutical Cos., Inc.*		80,800		2,920
Perrigo Co.		26,755		3,155
SXC Health Solutions Corp.*		39,080		3,877
				24,933
Real Estate Investment Trusts - 5.3%
American Capital Agency Corp.		63,700		2,141
BioMed Realty Trust, Inc.		282,375		5,275
Brandywine Realty Trust		647,875		7,995
Capstead Mortgage Corp.		111,100		1,546
CBL & Associates Properties, Inc.		383,728		7,498
CommonWealth REIT		100,500		1,922
Digital Realty Trust, Inc.		49,625		3,725
DuPont Fabros Technology, Inc.		59,425		1,697
Home Properties, Inc.		38,625		2,370
Hospitality Properties Trust		159,100		3,941
Kilroy Realty Corp.		48,550		2,350
Lexington Realty Trust		349,100		2,957
MFA Financial, Inc.		394,700		3,114
Parkway Properties, Inc.		53,600		613
Weyerhaeuser Co.		83,775		1,873
				49,017
Retail - 9.5%
Arcos Dorados Holdings, Inc., Class A		288,500		4,264
Bob Evans Farms, Inc.		22,700		913
Brinker International, Inc.		53,700		1,711
CarMax, Inc.*		134,600		3,492
Chipotle Mexican Grill, Inc.*		9,790		3,720
Copart, Inc.*		105,880		2,508
Dick’s Sporting Goods, Inc.		195,945		9,405
Dillard’s, Inc., Class A		53,900		3,432
Foot Locker, Inc.		231,200		7,070
GameStop Corp., Class A		161,900		2,973
Gap (The), Inc.		128,800		3,524

NORTHERN FUNDS QUARTERLY REPORT    4    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Retail - 9.5% continued
GNC Holdings, Inc., Class A		125,700	$	4,927
Kohl’s Corp.		68,300		3,107
Macy’s, Inc.		248,250		8,527
MSC Industrial Direct Co., Inc., Class A		52,300		3,428
Nu Skin Enterprises, Inc., Class A		64,800		3,039
O’Reilly Automotive, Inc.*		51,790		4,338
Panera Bread Co., Class A*		31,755		4,428
Pier 1 Imports, Inc.		238,650		3,921
Pricesmart, Inc.		28,171		1,902
PVH Corp.		31,450		2,447
RadioShack Corp.		109,800		422
Ruby Tuesday, Inc.*		71,600		488
Tractor Supply Co.		52,230		4,338
				88,324
Savings & Loans - 0.1%
Hudson City Bancorp, Inc.		132,000		841
Semiconductors - 2.6%
Amkor Technology, Inc.*		242,600		1,184
ARM Holdings PLC ADR		169,240		4,026
Avago Technologies Ltd.		89,500		3,213
Broadcom Corp., Class A*		40,625		1,373
Cavium, Inc.*		126,205		3,534
Fairchild Semiconductor International, Inc.*		125,700		1,773
KLA-Tencor Corp.		30,600		1,507
Lam Research Corp.*		73,825		2,786
Skyworks Solutions, Inc.*		159,525		4,366
				23,762
Shipbuilding - 0.0%
Huntington Ingalls Industries, Inc.*		8,516		343
Software - 5.2%
ANSYS, Inc.*		69,640		4,395
athenahealth, Inc.*		66,535		5,268
CA, Inc.		127,000		3,440
Cerner Corp.*		61,633		5,095
Citrix Systems, Inc.*		49,905		4,189
Fidelity National Information Services, Inc.		39,700		1,353
Fiserv, Inc.*		44,780		3,234
Intuit, Inc.		79,445		4,715
QLIK Technologies, Inc.*		155,981		3,450
Red Hat, Inc.*		61,005		3,446
Salesforce.com, Inc.*		45,800		6,332
ServiceNow, Inc.*		7,100		175
VMware, Inc., Class A*		35,402		3,223
				48,315
Telecommunications - 0.9%
Comtech Telecommunications Corp.		31,600		903
Harris Corp.		90,600		3,792
IPG Photonics Corp.*		41,500		1,809
Telephone & Data Systems, Inc.		67,502		1,437
USA Mobility, Inc.		41,200		530
				8,471
Transportation - 1.3%
C.H. Robinson Worldwide, Inc.		38,115		2,231
Expeditors International of Washington, Inc.		132,730		5,143
Genesee & Wyoming, Inc., Class A*		41,785		2,208
Ryder System, Inc.		58,000		2,089
				11,671
Trucking & Leasing - 0.2%
AMERCO		22,800		2,051
Water - 0.3%
American Water Works Co., Inc.		77,225		2,647
Total Common Stocks (Cost $787,477)				908,396
INVESTMENT COMPANIES - 2.5%
Northern Institutional Funds - Diversified Assets Portfolio (1) (2)		23,191,751		23,192
Total Investment Companies (Cost $23,192)				23,192

MULTI-MANAGER FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.1%
U.S. Treasury Bill, 0.14%, 11/1/12(3)	$	995	$	994
Total Short-Term Investments (Cost $994)				994
Total Investments - 100.2% (Cost $811,663)				932,582
Liabilities less Other Assets - (0.2)%				(1,556	)
NET ASSETS - 100.0%			$	931,026

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $25,021,000 with net sales of approximately $1,829,000 during the three months ended June 30, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the Multi-Manager Mid Cap Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
E-mini S&P MidCap 400		91	$	8,549		Long		9/12	$	298

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	817,239
Gross tax appreciation of investments	$	173,112
Gross tax depreciation of investments		(57,769	)
Net tax appreciation of investments	$	115,343

At June 30, 2012, the industry sectors for the Multi-Manager Mid Cap Fund were:

INDUSTRY SECTOR	% OF  LONG-TERM INVESTMENTS
Consumer Discretionary		15.4	%
Consumer Staples		4.3
Energy		8.4
Financials		20.3
Health Care		10.4
Industrials		13.7
Information Technology		16.5
Materials		5.0
Telecommunication Services		0.2
Utilities		5.8
Total		100.0	%

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Mid Cap Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	908,396	(1)	$	—	$	—	$	908,396
Investment Companies		23,192			—		—		23,192
Short-Term Investments		—			994		—		994
Total Investments	$	931,588		$	994	$	—	$	932,582
OTHER FINANCIAL INTRUMENTS
Assets
Futures Contracts	$	298		$	—	$	—	$	298

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    6    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.7%
Advertising - 0.6%
Interpublic Group of (The) Cos., Inc.		71,700	$	778
MDC Partners, Inc., Class A		163,845		1,858
				2,636
Aerospace/Defense - 2.5%
Alliant Techsystems, Inc.		62,900		3,181
Cubic Corp.		18,700		899
Curtiss-Wright Corp.		23,550		731
Embraer S.A. ADR		11,500		305
Kaman Corp.		93,085		2,880
Teledyne Technologies, Inc.*		49,983		3,082
				11,078
Airlines - 0.2%
Copa Holdings S.A., Class A		8,515		702
Apparel - 1.3%
Crocs, Inc.*		60,600		979
Ennis, Inc.		36,387		560
Jones Group (The), Inc.		131,700		1,259
Quiksilver, Inc.*		1,021,300		2,379
Steven Madden Ltd.*		16,250		516
				5,693
Auto Manufacturers - 0.6%
Tesla Motors, Inc.*		30,050		940
Wabash National Corp.*		298,483		1,976
				2,916
Auto Parts & Equipment - 1.2%
Cooper Tire & Rubber Co.		78,064		1,369
Meritor, Inc.*		76,800		401
Miller Industries, Inc.		185,892		2,961
Tenneco, Inc.*		28,030		752
				5,483
Banks - 3.9%
Associated Banc-Corp.		65,800		868
Bank of the Ozarks, Inc.		35,750		1,075
CapitalSource, Inc.		304,900		2,049
Cass Information Systems, Inc.		32,221		1,297
Community Bank System, Inc.		41,250		1,119
First Horizon National Corp.		193,085		1,670
First Horizon National Corp. - (Fractional Shares)*		63,966		—
First Interstate Bancsystem, Inc.		85,237		1,214
Fulton Financial Corp.		166,675		1,665
Synovus Financial Corp.		355,700		704
TCF Financial Corp.		43,100		495
Trustmark Corp.		48,750		1,193
Webster Financial Corp.		69,000		1,495
Westamerica Bancorporation		38,032		1,795
Wintrust Financial Corp.		30,760		1,092
				17,731
Biotechnology - 1.4%
Amarin Corp. PLC ADR*		77,470		1,120
Ariad Pharmaceuticals, Inc.*		48,075		827
Cubist Pharmaceuticals, Inc.*		25,730		976
Emergent Biosolutions, Inc.*		112,010		1,697
Myriad Genetics, Inc.*		64,610		1,536
				6,156
Building Materials - 0.3%
Fortune Brands Home & Security, Inc.*		67,100		1,494
Chemicals - 1.6%
American Vanguard Corp.		43,250		1,150
Cabot Corp.		38,211		1,555
Innophos Holdings, Inc.		19,518		1,102
Sensient Technologies Corp.		43,550		1,600
W.R. Grace & Co.*		31,400		1,584
				6,991
Commercial Services - 13.9%
Acacia Research Corp.*		53,065		1,976
American Public Education, Inc.*		87,697		2,806
Avis Budget Group, Inc.*		80,300		1,221
Brink’s (The) Co.		58,484		1,356
Capella Education Co.*		16,657		579
CBIZ, Inc.*		266,837		1,585
Chemed Corp.		45,175		2,730
Convergys Corp.		184,900		2,731
CoStar Group, Inc.*		28,670		2,328
DeVry, Inc.		30,200		935
Forrester Research, Inc.		20,715		701
Geo Group (The), Inc.*		109,100		2,479
Global Cash Access Holdings, Inc.*		160,412		1,157
Global Payments, Inc.		35,900		1,552
Grand Canyon Education, Inc.*		117,647		2,464
Heidrick & Struggles International, Inc.		61,400		1,074
HMS Holdings Corp.*		14,095		469
Hudson Global, Inc.*		497,055		2,073
KAR Auction Services, Inc.*		143,000		2,458
Lender Processing Services, Inc.		106,635		2,696

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.7% continued
Commercial Services - 13.9% continued
Manpower, Inc.		18,500	$	678
MAXIMUS, Inc.		90,815		4,700
Medifast, Inc.*		53,837		1,060
PARAXEL International Corp.*		24,925		704
PHH Corp.*		140,300		2,452
Rent-A-Center, Inc.		72,700		2,453
Resources Connection, Inc.		69,356		853
Ritchie Bros. Auctioneers, Inc.		95,432		2,028
Rollins, Inc.		159,315		3,564
ServiceSource International, Inc.*		82,950		1,149
United Rentals, Inc.*		36,970		1,258
Valassis Communications, Inc.*		211,800		4,607
VistaPrint N.V.*		45,987		1,485
				62,361
Computers - 1.6%
3D Systems Corp.*		30,976		1,058
CIBER, Inc.*		90,800		391
j2 Global, Inc.		100,600		2,658
Lexmark International, Inc., Class A		31,000		824
Maxwell Technologies, Inc.*		68,470		449
Mitek Systems, Inc.*		126,085		490
Stratasys, Inc.*		31,219		1,547
				7,417
Distribution/Wholesale - 1.8%
Beacon Roofing Supply, Inc.*		82,645		2,084
LKQ Corp.*		88,895		2,969
Owens & Minor, Inc.		59,226		1,814
Titan Machinery, Inc.*		36,150		1,098
				7,965
Diversified Financial Services - 3.0%
Affiliated Managers Group, Inc.*		14,200		1,554
Encore Capital Group, Inc.*		69,158		2,049
Financial Engines, Inc.*		125,175		2,685
Nelnet, Inc., Class A		122,018		2,806
Portfolio Recovery Associates, Inc.*		28,033		2,558
WisdomTree Investments, Inc.*		255,992		1,682
				13,334
Electric - 2.0%
El Paso Electric Co.		22,500		746
Great Plains Energy, Inc.		144,000		3,083
Portland General Electric Co.		140,400		3,743
UNS Energy Corp.		21,700		834
Westar Energy, Inc.		15,900		476
				8,882
Electrical Components & Equipment - 0.2%
Belden, Inc.		32,931		1,098
Electronics - 1.7%
CTS Corp.		77,997		735
FARO Technologies, Inc.*		29,760		1,252
Gentex Corp.		74,933		1,564
National Instruments Corp.		107,830		2,896
Park Electrochemical Corp.		38,105		986
				7,433
Engineering & Construction - 0.1%
Aegion Corp.*		26,104		467
Entertainment - 1.4%
Lakes Entertainment, Inc.*		53,400		155
Marriott Vacations Worldwide Corp.*		19,300		598
Pinnacle Entertainment, Inc.*		105,650		1,016
Shuffle Master, Inc.*		49,125		678
Six Flags Entertainment Corp.		71,556		3,877
				6,324
Food - 1.8%
Calavo Growers, Inc.		45,500		1,164
Fresh Market (The), Inc.*		33,675		1,806
Overhill Farms, Inc.*		390,452		1,531
Smart Balance, Inc.*		39,570		371
United Natural Foods, Inc.*		55,729		3,057
				7,929
Forest Products & Paper - 0.8%
Buckeye Technologies, Inc.		55,250		1,574
Schweitzer-Mauduit International, Inc.		30,900		2,106
				3,680
Hand/Machine Tools - 0.2%
Franklin Electric Co., Inc.		21,670		1,108
Healthcare - Products - 4.4%
Abaxis, Inc.*		48,465		1,793
ABIOMED, Inc.*		49,525		1,130
Align Technology, Inc.*		39,315		1,316
AngioDynamics, Inc.*		38,855		467
Cepheid, Inc.*		82,197		3,678
Insulet Corp.*		39,450		843
Luminex Corp.*		39,685		972

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.7% continued
Healthcare - Products - 4.4% continued
Meridian Bioscience, Inc.		73,806	$	1,510
OraSure Technologies, Inc.*		95,696		1,076
STERIS Corp.		30,904		969
Techne Corp.		24,761		1,837
Teleflex, Inc.		29,600		1,803
West Pharmaceutical Services, Inc.		49,600		2,504
				19,898
Healthcare - Services - 2.1%
Bio-Reference Labs, Inc.*		76,060		1,999
IPC The Hospitalist Co., Inc.*		58,505		2,651
LifePoint Hospitals, Inc.*		31,100		1,274
Lincare Holdings, Inc.		34,300		1,167
MEDNAX, Inc.*		33,450		2,293
				9,384
Home Furnishings - 0.2%
Furniture Brands International, Inc.*		160,700		199
Skullcandy, Inc.*		56,450		799
				998
Household Products/Wares - 0.4%
Helen of Troy Ltd.*		35,400		1,200
Tumi Holdings, Inc.*		40,013		700
				1,900
Housewares - 0.2%
Toro (The) Co.		13,919		1,020
Insurance - 4.9%
Alterra Capital Holdings Ltd.		78,324		1,829
American Equity Investment Life Holding Co.		137,227		1,511
Argo Group International Holdings Ltd.		38,100		1,115
Aspen Insurance Holdings Ltd.		49,600		1,434
CNO Financial Group, Inc.		302,300		2,358
Employers Holdings, Inc.		52,900		954
Endurance Specialty Holdings Ltd.		62,550		2,397
Global Indemnity PLC*		87,123		1,764
Horace Mann Educators Corp.		139,200		2,433
Kemper Corp.		29,250		899
National Western Life Insurance Co., Class A		1,400		199
Protective Life Corp.		46,350		1,363
StanCorp Financial Group, Inc.		34,096		1,267
Symetra Financial Corp.		193,310		2,440
				21,963
Internet - 3.7%
Boingo Wireless, Inc.*		66,900		777
BroadSoft, Inc.*		63,497		1,839
Cogent Communications Group, Inc.*		47,936		923
Constant Contact, Inc.*		129,521		2,316
DealerTrack Holdings, Inc.*		77,465		2,332
ExactTarget, Inc.*		30,550		668
InterActiveCorp		60,000		2,736
Pandora Media, Inc.*		81,150		882
Shutterfly, Inc.*		35,990		1,105
SPS Commerce, Inc.*		51,493		1,564
ValueClick, Inc.*		85,000		1,393
				16,535
Investment Companies - 0.4%
Hercules Technology Growth Capital, Inc.		160,037		1,815
Leisure Time - 0.5%
Life Time Fitness, Inc.*		49,055		2,282
Machinery - Diversified - 0.2%
Manitowoc (The) Co., Inc.		70,055		820
Media - 0.4%
Digital Generation, Inc.*		34,500		427
Dolan (The) Co.*		177,736		1,196
				1,623
Metal Fabrication/Hardware - 0.9%
CIRCOR International, Inc.		47,300		1,613
Dynamic Materials Corp.		66,014		1,144
Haynes International, Inc.		19,146		975
Mueller Water Products, Inc., Class A		140,400		486
				4,218
Mining - 1.5%
Compass Minerals International, Inc.		11,900		908
Globe Specialty Metals, Inc.		123,824		1,663
Horsehead Holding Corp.*		168,297		1,676
Noranda Aluminum Holding Corp.		171,400		1,364
U.S. Antimony Corp.*		305,700		1,235
				6,846
Miscellaneous Manufacturing - 0.8%
Actuant Corp., Class A		31,700		861
Polypore International, Inc.*		64,380		2,600
				3,461
Oil & Gas - 3.9%
Berry Petroleum Co., Class A		27,600		1,095

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.7% continued
Oil & Gas - 3.9% continued
Bonanza Creek Energy, Inc.*		54,200	$	901
Carrizo Oil & Gas, Inc.*		88,040		2,070
Cobalt International Energy, Inc.*		29,100		684
Comstock Resources, Inc.*		206,557		3,392
Goodrich Petroleum Corp.*		184,585		2,558
Oasis Petroleum, Inc.*		27,800		672
PDC Energy, Inc.*		30,800		755
Quicksilver Resources, Inc.*		354,460		1,921
SandRidge Energy, Inc.*		186,291		1,246
Stone Energy Corp.*		85,900		2,177
				17,471
Oil & Gas Services - 0.3%
Tesco Corp.*		111,523		1,338
Packaging & Containers - 0.8%
Silgan Holdings, Inc.		89,182		3,807
Pharmaceuticals - 1.6%
Medicis Pharmaceutical Corp., Class A		58,300		1,991
Neogen Corp.*		51,101		2,361
PharMerica Corp.*		66,500		726
Questcor Pharmaceuticals, Inc.*		42,800		2,279
				7,357
Real Estate Investment Trusts - 4.5%
Brandywine Realty Trust		121,130		1,495
CapLease, Inc.		65,500		272
CubeSmart		97,600		1,139
CYS Investments, Inc.		197,490		2,719
DuPont Fabros Technology, Inc.		45,550		1,301
Entertainment Properties Trust		34,800		1,431
Equity Lifestyle Properties, Inc.		13,832		954
Government Properties Income Trust		43,718		989
Granite Real Estate, Inc.		54,900		1,862
Hatteras Financial Corp.		99,050		2,833
LTC Properties, Inc.		38,200		1,386
Medical Properties Trust, Inc.		219,800		2,114
Starwood Property Trust, Inc.		72,000		1,534
				20,029
Retail - 5.0%
AFC Enterprises, Inc.*		20,025		463
Bob Evans Farms, Inc.		50,725		2,039
Casey’s General Stores, Inc.		29,250		1,726
Cash America International, Inc.		86,452		3,807
CEC Entertainment, Inc.		42,250		1,537
Cheesecake Factory (The), Inc.*		63,770		2,038
Dillard’s, Inc., Class A		7,250		462
DineEquity, Inc.*		29,500		1,317
Finish Line (The), Inc., Class A		78,913		1,650
HSN, Inc.		37,200		1,501
Regis Corp.		71,495		1,284
Stage Stores, Inc.		73,774		1,352
Steinway Musical Instruments, Inc.*		38,260		937
World Fuel Services Corp.		65,000		2,472
				22,585
Savings & Loans - 0.8%
First Financial Holdings, Inc.		46,900		503
First Niagara Financial Group, Inc.		49,900		382
HomeStreet, Inc.*		32,600		1,043
Northwest Bancshares, Inc.		131,700		1,542
				3,470
Semiconductors - 2.7%
Cabot Microelectronics Corp.		37,970		1,109
Cavium, Inc.*		80,050		2,241
Inphi Corp.*		156,350		1,482
Intersil Corp., Class A		82,950		884
ON Semiconductor Corp.*		233,400		1,657
Power Integrations, Inc.		44,445		1,658
Semtech Corp.*		98,560		2,397
TriQuint Semiconductor, Inc.*		111,100		611
				12,039
Shipbuilding - 0.7%
Huntington Ingalls Industries, Inc.*		79,400		3,195
Software - 5.1%
ACI Worldwide, Inc.*		63,900		2,825
athenahealth, Inc.*		28,201		2,233
Blackbaud, Inc.		8,624		221
Broadridge Financial Solutions, Inc.		58,300		1,240
Concur Technologies, Inc.*		29,432		2,004
Digi International, Inc.*		124,970		1,280
Ebix, Inc.		111,339		2,221
InnerWorkings, Inc.*		123,025		1,664
Pegasystems, Inc.		35,355		1,166
QLIK Technologies, Inc.*		30,850		682
Rosetta Stone, Inc.*		53,011		734
SciQuest, Inc.*		52,895		950
Ultimate Software Group, Inc.*		47,740		4,255

NORTHERN FUNDS QUARTERLY REPORT    4    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.7% continued
Software - 5.1% continued
Verint Systems, Inc.*		47,121	$	1,391
				22,866
Storage/Warehousing - 0.4%
Mobile Mini, Inc.*		138,345		1,992
Telecommunications - 4.2%
Acme Packet, Inc.*		108,975		2,032
Arris Group, Inc.*		226,000		3,144
Aruba Networks, Inc.*		66,500		1,001
Comverse Technology, Inc.*		273,600		1,592
InterDigital, Inc.		46,600		1,375
IPG Photonics Corp.*		49,625		2,163
Loral Space & Communications, Inc.		36,200		2,438
Plantronics, Inc.		74,000		2,472
Sycamore Networks, Inc.*		154,807		2,248
Symmetricom, Inc.*		80,900		485
				18,950
Transportation - 3.5%
Atlas Air Worldwide Holdings, Inc.*		66,900		2,911
Bristow Group, Inc.		36,550		1,486
Celadon Group, Inc.		48,358		792
Con-way, Inc.		107,000		3,864
Echo Global Logistics, Inc.*		69,246		1,320
Forward Air Corp.		30,860		996
Scorpio Tankers, Inc.*		189,656		1,212
Swift Transportation Co.*		72,175		682
Teekay Tankers Ltd., Class A		65,050		297
Tidewater, Inc.		33,686		1,562
Vitran Corp., Inc.*		100,426		602
				15,724
Trucking & Leasing - 0.5%
GATX Corp.		25,360		976
Greenbrier Cos., Inc.*		70,975		1,248
				2,224
Total Common Stocks (Cost $398,467)				434,688
INVESTMENT COMPANIES - 2.9%
Northern Institutional Funds - Diversified Assets Portfolio(1) (2)		12,888,037		12,888
Total Investment Companies (Cost $12,888)				12,888
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.4%
U.S. Treasury Bill,
0.14%, 6/30/12(3)	$	1,765	$	1,764
Total Short-Term Investments (Cost $1,764)				1,764
Total Investments - 100.0% (Cost $413,119)				449,340
Liabilities less Other Assets - 0.0%				(46	)
NET ASSETS - 100.0%			$	449,294

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is an investment adviser of the Fund and the investment adviser to the Northern Institutional Funds.

(2) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $21,078,000 with net sales of approximately $8,190,000 during the three months ended June 30, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At June 30, 2012, the Multi-Manager Small Cap Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
Russell 2000 Mini		43	$	3,420		Long		9/12	$	232

At June 30, 2012, the industry sectors for the Multi-Manager Small Cap Fund were:

INDUSTRY SECTOR	% OF  LONG-TERM INVESTMENTS
Consumer Discretionary		13.3	%
Consumer Staples		2.5
Energy		5.9
Financials		18.1
Health Care		11.7
Industrials		18.9
Information Technology		22.1
Materials		5.1
Telecommunication Services		0.4
Utilities		2.0
Total		100.0	%

MULTI-MANAGER FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	419,100
Gross tax appreciation of investments	$	62,021
Gross tax depreciation of investments		(31,781	)
Net tax appreciation of investments	$	30,240

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager Small Cap Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	434,688	(1)	$	—	$	—	$	434,688
Investment Companies		12,888			—		—		12,888
Short-Term Investments		—			1,764		—		1,764
Total Investments	$	447,576		$	1,764	$	—	$	449,340
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	232		$	—	$	—	$	232

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

NORTHERN FUNDS QUARTERLY REPORT    6    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2.4%
Commercial Mortgage-Backed Securities - 0.5%
CW Capital Cobalt Ltd., Series 2006-C1, Class AM,
5.25%, 8/15/48	$	500	$	492
GS Mortgage Securities Corp. II, Series 2007-GG10, Class AM,
5.98%, 8/10/45		2,730		2,443
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-9, Class AM,
5.86%, 9/12/49		1,025		940
				3,875
Home Equity - 0.1%
New Century Home Equity Loan Trust, Series 2005-2, Class M2,
0.70%, 6/25/35		375		229
Option One Mortgage Loan Trust, Series 2007-1, Class 2A2,
0.35%, 1/25/37		689		411
				640
Other - 0.4%
Ameriquest Mortgage Securities, Inc., Series 2005-R11, Class M1,
0.70%, 1/25/36		300		190
Countrywide Asset-Backed Certificates, Series 2004-13, Class AF5B,
5.10%, 5/25/35		225		182
DSC Floorplan Master Owner Trust, Series 2011-1, Class B,
8.11%, 3/15/16(1)		500		506
First Franklin Mortgage Loan Asset Backed Certificates, Series 2006-FF10, Class A4,
0.40%, 7/25/36		472		359
Fremont Home Loan Trust, Series 2006-D, Class 2A3,
0.40%, 11/25/36		1,323		401
Saxon Asset Securities Trust, Series 2004-3, Class M2,
0.90%, 12/26/34		190		141
Sierra Receivables Funding Co. LLC, Series 2011-3A, Class C,
9.31%, 7/20/28(1) (2)		772		772
				2,551
Whole Loan - 1.4%
Adjustable Rate Mortgage Trust, Series 2005-10, Class 5A1,
0.51%, 1/25/36		157		101
American Home Mortgage Investment Trust, Series 2005-2, Class 4A1,
2.24%, 9/25/45		480		385
American Home Mortgage Investment Trust, Series 2005-4, Class 1A1,
0.54%, 11/25/45		262		165
American Home Mortgage Investment Trust, Series 2006-1, Class 11A1,
0.39%, 3/25/46		312		203
Banc of America Mortgage Securities, Inc., Series 2005-A, Class 2A1,
3.00%, 2/25/35		111		95
Citimortgage Alternative Loan Trust, Series 2006-A3, Class 1A7,
6.00%, 7/25/36		216		157
Countrywide Alternative Loan Trust, Series 2005-14, Class 2A1,
0.46%, 5/25/35		690		398
Countrywide Alternative Loan Trust, Series 2006-J4, Class 1A3,
6.25%, 7/25/36		631		393
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-11, Class 3A3,
2.93%, 4/25/35		548		258
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-2, Class 2A3,
0.59%, 3/25/35		561		306
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 2A1,
3.17%, 6/19/35		665		621
GMAC Mortgage Corp. Loan Trust, Series 2005-AR4, Class 3A1,
3.21%, 7/19/35		729		628
GSR Mortgage Loan Trust, Series 2005-AR4, Class 4A1,
3.13%, 7/25/35		283		241
Indymac Index Mortgage Loan Trust, Series 2006-AR7, Class 4A1,
5.19%, 5/25/36		488		236
JP Morgan Alternative Loan Trust, Series 2006-A1, Class 5A1,
5.26%, 3/25/36		237		165
Lehman Mortgage Trust, Series 2005-3, Class 1A6,
0.75%, 1/25/36		260		156

MULTI-MANAGER FUNDS    1    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2.4% continued
Whole Loan - 1.4% continued
Lehman Mortgage Trust, Series 2006-1, Class 3A5,
5.50%, 2/25/36	$	373	$	343
Lehman Mortgage Trust, Series 2007-8, Class 2A1,
6.50%, 9/25/37		563		431
Lehman XS Trust, Series 2007-10H, Class 1A11,
0.37%, 7/25/37		310		145
Mastr Adjustable Rate Mortgages Trust, Series 2005-2, Class 3A1,
2.80%, 3/25/35		614		428
Mastr Adjustable Rate Mortgages Trust, Series 2007-1, Class I2A1,
0.41%, 1/25/47		936		474
MASTR Asset Securitization Trust, Series 2007-1, Class 1A4,
6.50%, 11/25/37		613		528
Merrill Lynch Alternative Note Asset, Series 2007-F1, Class 2A7,
6.00%, 3/25/37		840		539
New York Mortgage Trust, Series 2006-1, Class 2A2,
2.95%, 5/25/36		293		238
Residential Accredit Loans, Inc., Series 2006-QS6, Class 1A16,
6.00%, 6/25/36		812		512
Residential Asset Securitization Trust, Series 2006-A2, Class A11,
6.00%, 1/25/46		655		438
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-14, Class A1,
0.56%, 7/25/35		599		347
WaMu Mortgage Pass Through Certificates, Series 2006-AR11, Class 2A,
2.64%, 9/25/46		584		443
WaMu Mortgage Pass Through Certificates, Series 2007-OA3, Class 2A1A,
0.91%, 4/25/47		267		188
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2006-AR6, Class 2A,
1.11%, 8/25/46		911		407
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2007-OC1, Class A1,
0.49%, 1/25/47		930		407
				10,376
Total Asset-Backed Securities (Cost $17,959)				17,442
CONVERTIBLE BONDS - 5.0%
Airlines - 0.2%
AirTran Holdings, Inc.,
5.25%, 11/1/16		83		106
United Continental Holdings, Inc.,
4.50%, 6/30/21		1,525		1,434
				1,540
Apparel - 0.2%
Iconix Brand Group, Inc.,
2.50%, 6/1/16(1)		1,395		1,344
Auto Manufacturers - 0.5%
Ford Motor Co.,
4.25%, 11/15/16		2,465		3,411
Auto Parts & Equipment - 0.3%
Meritor, Inc.,
4.00%, 2/15/27		2,665		1,945
TRW Automotive, Inc.,
3.50%, 12/1/15		107		156
				2,101
Biotechnology - 0.5%
Dendreon Corp.,
2.88%, 1/15/16		25		17
Vertex Pharmaceuticals, Inc.,
3.35%, 10/1/15		2,450		3,201
				3,218
Building Materials - 0.0%
Cemex S.A.B. de C.V.,
3.75%, 3/15/18		89		74
Coal - 0.2%
Peabody Energy Corp.,
4.75%, 12/15/41		1,415		1,144

NORTHERN FUNDS QUARTERLY REPORT    2    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CONVERTIBLE BONDS - 5.0% continued
Computers - 0.0%
SanDisk Corp.,
1.50%, 8/15/17	$	220	$	229
Food - 0.0%
Smithfield Foods, Inc.,
4.00%, 6/30/13		32		35
Tyson Foods, Inc.,
3.25%, 10/15/13		90		109
				144
Home Builders - 0.4%
Lennar Corp.,
2.00%, 12/1/20(1)		105		132
2.75%, 12/15/20(1)		70		107
3.25%, 11/15/21(1) (2)		1,165		1,755
Ryland Group (The), Inc.,
1.63%, 5/15/18		495		538
				2,532
Internet - 0.0%
Symantec Corp.,
1.00%, 6/15/13		148		150
WebMD Health Corp.,
2.50%, 1/31/18		71		59
				209
Iron/Steel - 0.0%
Steel Dynamics, Inc.,
5.13%, 6/15/14		320		336
Lodging - 0.0%
Home Inns & Hotels Management, Inc.,
2.00%, 12/15/15		37		29
Machinery - Diversified - 0.0%
Altra Holdings, Inc.,
2.75%, 3/1/31		94		86
Metal Fabrication/Hardware - 0.0%
RTI International Metals, Inc.,
3.00%, 12/1/15		66		67
Miscellaneous Manufacturing - 0.3%
Trinity Industries, Inc.,
3.88%, 6/1/36		2,415		2,382
Oil & Gas - 0.1%
Chesapeake Energy Corp.,
2.75%, 11/15/35		125		115
2.50%, 5/15/37		625		538
Stone Energy Corp.,
1.75%, 3/1/17(1)		32		30
				683
Oil & Gas Services - 0.0%
Hornbeck Offshore Services, Inc.,
1.63%, 11/15/26		10		11
Newpark Resources, Inc.,
4.00%, 10/1/17		69		65
Subsea 7 S.A.,
2.25%, 10/11/13		200		220
				296
Semiconductors - 1.2%
Intel Corp.,
2.95%, 12/15/35		4,310		4,843
Micron Technology, Inc.,
1.50%, 8/1/31(1)		24		21
1.88%, 8/1/31(1) (2)		2,700		2,406
2.38%, 5/1/32(1) (2)		1,205		1,110
ON Semiconductor Corp.,
2.63%, 12/15/26		33		35
				8,415
Software - 0.0%
Callidus Software, Inc.,
4.75%, 6/1/16		59		60
Telecommunications - 1.1%
Alcatel-Lucent,
5.00%, 1/1/15(3)		4,845		168
Alcatel-Lucent USA, Inc.,
2.88%, 6/15/23		310		235
2.88%, 6/15/25		1,000		984
Ciena Corp.,
4.00%, 3/15/15(1)		337		377
0.88%, 6/15/17		5,285		4,525
3.75%, 10/15/18(1)		240		270
Clearwire Communications LLC/Clearwire Finance, Inc.,
8.25%, 12/1/40(1)		320		196
Comtech Telecommunications Corp.,
3.00%, 5/1/29		5		5
Level 3 Communications, Inc.,
7.00%, 3/15/15		485		585

MULTI-MANAGER FUNDS    3    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CONVERTIBLE BONDS - 5.0% continued
Telecommunications - 1.1% continued
Portugal Telecom International Finance B.V.,
4.13%, 8/28/14(3)	$	150	$	180
				7,525
Trucking & Leasing - 0.0%
Greenbrier Cos., Inc.,
3.50%, 4/1/18		100		88
Total Convertible Bonds (Cost $33,390)				35,913
CORPORATE BONDS - 67.2%
Advertising - 0.6%
Lamar Media Corp.,
5.88%, 2/1/22(1)		875		897
Visant Corp.,
10.00%, 10/1/17		3,605		3,578
				4,475
Aerospace/Defense - 0.3%
Meccanica Holdings USA, Inc.,
7.38%, 7/15/39(1)		1,300		1,054
TransDigm, Inc.,
7.75%, 12/15/18		850		933
				1,987
Airlines - 1.0%
Continental Airlines, Inc.,
6.75%, 9/15/15(1)		555		570
Continental Airlines, Series 1998-1, Class B, Pass Through Trust,
6.75%, 3/15/17		15		15
Continental Airlines, Series 1999-1, Class B, Pass Through Trust,
6.80%, 8/2/18		828		819
Continental Airlines, Series 1999-2, Class B, Pass Through Trust,
7.57%, 3/15/20		110		110
Continental Airlines, Series 2000-1, Class A-1, Pass Through Trust,
8.05%, 11/1/20		231		254
Continental Airlines, Series 2001-1, Class A-1, Pass Through Trust,
6.70%, 6/15/21		145		155
Continental Airlines, Series 2007-1, Class B, Pass Through Trust,
6.90%, 4/19/22		110		111
Delta Air Lines, Inc.,
9.50%, 9/15/14(1)		1,026		1,084
UAL, Series 2009-1, Pass Through Trust,
10.40%, 11/1/16		226		258
UAL, Series 2009-2A, Pass Through Trust,
9.75%, 1/15/17		472		537
United Air Lines, Inc.,
9.88%, 8/1/13(1)		777		801
US Airways 2012-1, Class B, Pass Through Trust,
8.00%, 10/1/19		880		902
US Airways 2012-1, Class C, Pass Through Trust,
9.13%, 10/1/15		1,550		1,554
				7,170
Apparel - 0.7%
Jones Group (The), Inc.,
6.13%, 11/15/34		3,485		2,579
Levi Strauss & Co.,
7.63%, 5/15/20		450		478
6.88%, 5/1/22(1) (2)		500		513
Quiksilver, Inc.,
6.88%, 4/15/15		1,100		1,062
				4,632
Auto Manufacturers - 0.3%
Chrysler Group LLC/CG Co-Issuer, Inc.,
8.00%, 6/15/19		1,105		1,136
8.25%, 6/15/21		475		488
Ford Motor Co.,
9.98%, 2/15/47		255		362
				1,986
Auto Parts & Equipment - 0.4%
Allison Transmission, Inc.,
7.13%, 5/15/19(1)		350		365
Goodyear Tire & Rubber (The) Co.,
7.00%, 5/15/22		645		644
7.00%, 3/15/28		80		76
Tomkins LLC/Tomkins, Inc.,
9.00%, 10/1/18		697		775
UCI International, Inc.,
8.63%, 2/15/19		1,050		1,057
				2,917

NORTHERN FUNDS QUARTERLY REPORT    4    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Banks - 2.9%
Ally Financial, Inc.,
4.63%, 6/26/15	$	970	$	976
5.50%, 2/15/17		295		300
6.25%, 12/1/17		1,585		1,669
8.00%, 12/31/18		680		753
8.00%, 3/15/20		1,540		1,771
7.50%, 9/15/20		1,295		1,455
8.00%, 11/1/31		3,361		3,941
CIT Group, Inc.,
7.00%, 5/2/17(1)		768		769
5.00%, 5/15/17		1,120		1,154
5.25%, 3/15/18		1,005		1,038
6.63%, 4/1/18(1)		2,055		2,214
5.50%, 2/15/19(1) (2)		2,695		2,769
Morgan Stanley,
8.00%, 5/9/17(4)		1,300		1,399
Provident Funding Associates L.P./PFG Finance Corp.,
10.25%, 4/15/17(1)		315		328
10.13%, 2/15/19(1)		400		372
				20,908
Beverages - 0.1%
Cott Beverages, Inc.,
8.38%, 11/15/17		700		761
Building Materials - 1.4%
Griffon Corp.,
7.13%, 4/1/18		1,590		1,614
Louisiana-Pacific Corp.,
7.50%, 6/1/20(1)		1,030		1,079
Masco Corp.,
6.13%, 10/3/16		340		363
6.50%, 8/15/32		200		192
Ply Gem Industries, Inc.,
8.25%, 2/15/18		1,960		1,921
USG Corp.,
6.30%, 11/15/16		2,517		2,410
9.75%, 1/15/18		740		777
8.38%, 10/15/18(1)		910		955
7.88%, 3/30/20(1) (2) (5)		445		461
				9,772
Chemicals - 1.4%
Braskem America Finance Co.,
7.13%, 7/22/41(1) (2)		400		399
Hercules, Inc.,
6.50%, 6/30/29(5)		1,565		1,368
Hexion US Finance Corp.,
6.63%, 4/15/20		945		969
Hexion US Finance Corp./Hexion Nova Scotia Finance ULC,
8.88%, 2/1/18		535		546
9.00%, 11/15/20		30		26
Huntsman International LLC,
8.63%, 3/15/20		315		354
8.63%, 3/15/21		380		428
MacDermid, Inc.,
9.50%, 4/15/17(1)		1,100		1,149
Momentive Performance Materials, Inc.,
11.50%, 12/1/16		300		223
10.00%, 10/15/20(1) (2)		665		667
9.00%, 1/15/21		4,215		3,193
Reichhold Industries, Inc.,
9.00%, 5/8/17(1) (2)		955		697
				10,019
Coal - 1.1%
Arch Coal, Inc.,
8.75%, 8/1/16		65		62
7.25%, 10/1/20		620		524
7.25%, 6/15/21		3,300		2,764
Cloud Peak Energy Resources LLC/Cloud Peak Energy Finance Corp.,
8.50%, 12/15/19		670		695
CONSOL Energy, Inc.,
8.25%, 4/1/20		900		945
Peabody Energy Corp.,
6.00%, 11/15/18(1)		990		985
6.50%, 9/15/20		250		253
6.25%, 11/15/21(1)		1,440		1,426
				7,654
Commercial Services - 3.5%
American Residential Services LLC,
12.00%, 4/15/15(1)		725		741
ARAMARK Holdings Corp.,
8.63%, 5/1/16(1)		725		742
Brickman Group Holdings, Inc.,
9.13%, 11/1/18(1)		700		683
Ceridian Corp.,
11.25%, 11/15/15		1,690		1,623

MULTI-MANAGER FUNDS    5    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Commercial Services - 3.5% continued
12.25%, 11/15/15	$	770	$	747
8.88%, 7/15/19(1) (5)		710		733
Emergency Medical Services Corp.,
8.13%, 6/1/19		3,675		3,836
Hertz (The) Corp.,
7.50%, 10/15/18		155		166
Interactive Data Corp.,
10.25%, 8/1/18		900		1,008
Iron Mountain, Inc.,
7.75%, 10/1/19		505		546
Jaguar Holding Co. II/Jaguar Merger Sub, Inc.,
9.50%, 12/1/19(1)		670		733
Knowledge Learning Corp.,
7.75%, 2/1/15(1)		510		411
Monitronics International, Inc.,
9.13%, 4/1/20(1)		92		88
Prospect Medical Holdings, Inc.,
8.38%, 5/1/19(1) (2)		495		486
R.R. Donnelley & Sons Co.,
8.60%, 8/15/16		455		482
7.25%, 5/15/18		4,820		4,591
8.25%, 3/15/19		2,450		2,401
7.63%, 6/15/20		505		472
RSC Equipment Rental, Inc./RSC Holdings III LLC,
8.25%, 2/1/21		305		325
ServiceMaster Co.,
8.00%, 2/15/20		553		602
7.45%, 8/15/27		1,710		1,419
TransUnion Holding Co., Inc.,
9.63%, 6/15/18(1)		290		313
TransUnion LLC/TransUnion Financing Corp.,
11.38%, 6/15/18		725		853
United Rentals N.A., Inc.,
10.88%, 6/15/16		455		511
UR Financing Escrow Corp.,
5.75%, 7/15/18(1) (2)		160		167
7.63%, 4/15/22(1) (2)		360		377
				25,056
Computers - 0.3%
iGATE Corp.,
9.00%, 5/1/16		880		942
SunGard Data Systems, Inc.,		985		1,056
7.38%, 11/15/18
7.63%, 11/15/20		260		277
				2,275
Cosmetics/Personal Care - 0.1%
Elizabeth Arden, Inc.,
7.38%, 3/15/21		680		746
Distribution/Wholesale - 0.0%
Baker & Taylor, Inc.,
11.50%, 7/1/13(1)		400		231
Diversified Financial Services - 4.4%
Ford Holdings LLC,
9.30%, 3/1/30		545		744
Ford Motor Credit Co. LLC,
8.13%, 1/15/20		2,840		3,469
5.75%, 2/1/21		975		1,071
Icahn Enterprises L.P./Icahn Enterprises Finance Corp.,
7.75%, 1/15/16		1,515		1,593
8.00%, 1/15/18		1,875		1,992
International Lease Finance Corp.,
6.63%, 11/15/13		240		248
5.65%, 6/1/14		715		733
8.63%, 9/15/15		585		646
8.75%, 3/15/17		1,310		1,471
8.88%, 9/1/17		2,115		2,385
5.88%, 4/1/19		600		601
6.25%, 5/15/19		865		881
8.25%, 12/15/20		1,422		1,628
Jefferies Group, Inc.,
5.13%, 4/13/18		520		504
6.88%, 4/15/21		75		75
6.45%, 6/8/27		1,125		1,069
6.25%, 1/15/36		1,245		1,121
Residential Capital LLC,
9.63%, 5/15/15(6)		3,590		3,464
SLM Corp.,
5.00%, 6/15/18		45		43
Springleaf Finance Corp.,
5.90%, 9/15/12		300		299
3.25%, 1/16/13(3)		550		667
5.85%, 6/1/13		1,425		1,368

NORTHERN FUNDS QUARTERLY REPORT    6    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Diversified Financial Services - 4.4% continued
5.40%, 12/1/15	$	1,055	$	878
5.75%, 9/15/16		715		570
6.50%, 9/15/17		300		237
6.90%, 12/15/17		4,660		3,719
				31,476
Electric - 2.7%
AES (The) Corp.,
8.00%, 10/15/17		875		995
7.38%, 7/1/21(1)		725		807
Calpine Corp.,
7.25%, 10/15/17(1)		355		382
7.88%, 7/31/20(1)		1,325		1,461
7.50%, 2/15/21(1)		475		513
CMS Energy Corp.,
6.55%, 7/17/17		530		601
Dynegy Holdings LLC,
7.75%, 6/1/19(6)		1,810		1,213
Edison Mission Energy,
7.75%, 6/15/16		1,616		909
7.00%, 5/15/17		800		448
7.20%, 5/15/19		3,450		1,923
7.63%, 5/15/27		2,115		1,153
GenOn Energy, Inc.,
9.50%, 10/15/18		405		400
9.88%, 10/15/20		690		673
Ipalco Enterprises, Inc.,
7.25%, 4/1/16(1)		975		1,059
5.00%, 5/1/18		265		268
NRG Energy, Inc.,
7.63%, 1/15/18		475		492
8.50%, 6/15/19		1,500		1,567
8.25%, 9/1/20		1,655		1,713
7.88%, 5/15/21		2,305		2,328
Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc.,
11.50%, 10/1/20(1)		1,095		747
				19,652
Entertainment - 1.7%
AMC Entertainment, Inc.,
8.75%, 6/1/19		650		697
9.75%, 12/1/20		1,175		1,269
American Casino & Entertainment Properties LLC/ACEP Finance Corp.,
11.00%, 6/15/14		560		588
Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp.,
9.13%, 8/1/18		640		710
Cinemark USA, Inc.,
8.63%, 6/15/19		600		665
7.38%, 6/15/21		835		906
Isle of Capri Casinos, Inc.,
7.00%, 3/1/14		1,050		1,049
7.75%, 3/15/19		650		666
Pinnacle Entertainment, Inc.,
8.63%, 8/1/17		250		272
8.75%, 5/15/20		750		821
7.75%, 4/1/22		462		494
Regal Entertainment Group,
9.13%, 8/15/18		1,350		1,485
Seminole Indian Tribe of Florida,
7.75%, 10/1/17(1)		575		627
WMG Acquisition Corp.,
9.50%, 6/15/16		1,535		1,673
9.50%, 6/15/16(1)		55		60
				11,982
Food - 0.9%
Dean Foods Co.,
9.75%, 12/15/18		1,585		1,767
Del Monte Corp.,
7.63%, 2/15/19		1,865		1,881
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp.,
9.25%, 4/1/15		825		848
8.25%, 9/1/17		500		529
Post Holdings, Inc.,
7.38%, 2/15/22(1)		1,535		1,619
				6,644
Forest Products & Paper - 0.4%
Mercer International, Inc.,
9.50%, 12/1/17		745		773
NewPage Corp.,
11.38%, 12/31/14(6)		570		368
Verso Paper Holdings LLC/Verso Paper, Inc.,
11.38%, 8/1/16		218		102
11.75%, 1/15/19(1)		178		135
8.75%, 2/1/19		325		128

MULTI-MANAGER FUNDS    7    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Forest Products & Paper - 0.4% continued
Westvaco Corp.,
8.20%, 1/15/30	$	400	$	475
Xerium Technologies, Inc.,
8.88%, 6/15/18		755		595
				2,576
Healthcare - Products - 0.3%
Biomet, Inc.,
11.63%, 10/15/17		865		933
Kinetic Concepts, Inc./KCI USA, Inc.,
10.50%, 11/1/18(1)		780		819
12.50%, 11/1/19(1)		415		376
				2,128
Healthcare - Services - 4.3%
American Renal Holdings Co., Inc.,
8.38%, 5/15/18		850		899
CHS/Community Health Systems, Inc.,
8.00%, 11/15/19		3,015		3,211
Fresenius Medical Care US Finance II, Inc.,
5.63%, 7/31/19(1) (2)		595		620
5.88%, 1/31/22(1)		1,030		1,072
Fresenius Medical Care US Finance, Inc.,
6.50%, 9/15/18(1)		835		908
HCA Holdings, Inc.,
7.75%, 5/15/21		1,115		1,196
HCA, Inc.,
7.19%, 11/15/15		1,015		1,071
6.50%, 2/15/20		1,485		1,609
7.50%, 2/15/22		1,365		1,488
5.88%, 3/15/22		1,530		1,599
7.50%, 12/15/23		260		250
8.36%, 4/15/24		680		690
7.69%, 6/15/25		1,310		1,261
7.58%, 9/15/25		225		215
7.05%, 12/1/27		65		58
7.50%, 11/6/33		3,465		3,248
7.75%, 7/15/36		420		395
Health Management Associates, Inc.,
7.38%, 1/15/20(1)		865		920
HealthSouth Corp.,
8.13%, 2/15/20		650		710
IASIS Healthcare LLC/IASIS Capital Corp.,
8.38%, 5/15/19		1,150		1,139
Radiation Therapy Services, Inc.,
9.88%, 4/15/17		1,050		822
Surgical Care Affiliates, Inc.,
10.00%, 7/15/17(1)		900		902
Tenet Healthcare Corp.,
9.25%, 2/1/15		280		312
8.88%, 7/1/19		1,340		1,504
6.88%, 11/15/31		1,725		1,462
United Surgical Partners International, Inc.,
9.00%, 4/1/20(1) (5)		2,130		2,258
Universal Health Services, Inc.,
7.13%, 6/30/16		505		563
Vanguard Health Holding Co. II LLC/Vanguard Holding Co. II, Inc.,
8.00%, 2/1/18		720		736
Vanguard Health Systems, Inc.,
12.08%, 2/1/16(7)		1		1
				31,119
Home Builders - 1.4%
Beazer Homes USA, Inc.,
9.13%, 6/15/18		580		512
9.13%, 5/15/19		875		763
K Hovnanian Enterprises, Inc.,
10.63%, 10/15/16		680		648
KB Home,
5.88%, 1/15/15		2		2
6.25%, 6/15/15		42		42
7.25%, 6/15/18		2,970		2,955
8.00%, 3/15/20		945		964
PulteGroup, Inc.,
7.88%, 6/15/32		2,545		2,418
6.38%, 5/15/33		390		322
6.00%, 2/15/35		290		232
Shea Homes L.P./Shea Homes Funding Corp.,
8.63%, 5/15/19		630		677
Standard Pacific Corp.,
8.38%, 5/15/18		178		194
8.38%, 1/15/21		370		401
				10,130
Home Furnishings - 0.1%
Norcraft Cos. L.P./Norcraft Finance Corp.,
10.50%, 12/15/15		950		940

NORTHERN FUNDS QUARTERLY REPORT    8    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Household Products/Wares - 1.2%
Armored Autogroup, Inc.,
9.50%, 11/1/18(1)	$	450	$	388
Mead Products LLC/ACCO Brands Corp.,
6.75%, 4/30/20(1)		700		738
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu,
7.75%, 10/15/16(1)		625		658
7.13%, 4/15/19(1)		120		126
9.00%, 4/15/19(1)		300		299
7.88%, 8/15/19(1)		1,530		1,656
9.88%, 8/15/19(1)		1,300		1,349
9.88%, 8/15/19(1)		835		866
6.88%, 2/15/21(1)		465		484
8.50%, 2/15/21(1)		1,900		1,805
				8,369
Housewares - 0.0%
American Standard Americas,
10.75%, 1/15/16(1)		385		302
Insurance - 0.4%
American International Group, Inc.,
6.25%, 3/15/37		200		185
8.18%, 5/15/58		1,240		1,345
Genworth Financial, Inc.,
7.63%, 9/24/21		1,015		959
				2,489
Internet - 0.1%
GXS Worldwide, Inc.,
9.75%, 6/15/15		930		928
Iron/Steel - 0.4%
AK Steel Corp.,
7.63%, 5/15/20		430		363
United States Steel Corp.,
6.65%, 6/1/37		3,332		2,599
				2,962
Lodging - 2.6%
Boyd Gaming Corp.,
7.13%, 2/1/16		260		251
9.13%, 12/1/18		1,315		1,355
Caesars Entertainment Operating Co., Inc.,
12.75%, 4/15/18		205		161
10.00%, 12/15/18		1,645		1,125
Choice Hotels International, Inc.,
5.75%, 7/1/22		460		481
CityCenter Holdings LLC/CityCenter Finance Corp.,
7.63%, 1/15/16(1) (2)		670		705
7.63%, 1/15/16		365		385
10.75%, 1/15/17		1,009		1,112
MGM Resorts International,
6.63%, 7/15/15		415		427
6.88%, 4/1/16		790		794
7.50%, 6/1/16		3,705		3,835
7.63%, 1/15/17		2,460		2,540
8.63%, 2/1/19(1)		510		546
9.00%, 3/15/20		275		305
7.75%, 3/15/22		3,350		3,459
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
7.75%, 8/15/20		841		931
				18,412
Machinery - Construction & Mining - 0.2%
Terex Corp.,
8.00%, 11/15/17		530		550
6.50%, 4/1/20		625		633
				1,183
Machinery - Diversified - 0.5%
Case New Holland, Inc.,
7.88%, 12/1/17		2,265		2,616
Manitowoc (The) Co., Inc.,
9.50%, 2/15/18		650		712
8.50%, 11/1/20		465		502
				3,830
Media - 5.5%
Allbritton Communications Co.,
8.00%, 5/15/18		1,065		1,113
AMC Networks, Inc.,
7.75%, 7/15/21(1)		790		871
Cablevision Systems Corp.,
7.75%, 4/15/18		825		879
CCO Holdings LLC/CCO Holdings Capital Corp.,
7.25%, 10/30/17		1,320		1,439
7.00%, 1/15/19		155		167
8.13%, 4/30/20		250		279
6.63%, 1/31/22		1,055		1,129

MULTI-MANAGER FUNDS    9    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Media - 5.5% continued
Cengage Learning Acquisitions, Inc.,
10.50%, 1/15/15(1)	$	645	$	490
11.50%, 4/15/20(1) (2)		480		497
Cequel Communications Holdings I LLC/Cequel Capital Corp.,
8.63%, 11/15/17(1)		1,795		1,934
Clear Channel Communications, Inc.,
5.75%, 1/15/13		115		114
5.50%, 9/15/14		4,285		3,664
10.75%, 8/1/16		1,230		775
Clear Channel Worldwide Holdings, Inc.,
9.25%, 12/15/17		335		365
7.63%, 3/15/20(1) (2)		1,085		1,060
CSC Holdings LLC,
8.50%, 4/15/14		420		462
7.63%, 7/15/18		565		631
8.63%, 2/15/19		850		982
6.75%, 11/15/21(1)		1,255		1,336
Cumulus Media Holdings, Inc.,
7.75%, 5/1/19		815		768
DISH DBS Corp.,
7.75%, 5/31/15		245		272
7.13%, 2/1/16		280		307
4.63%, 7/15/17(1)		1,600		1,602
7.88%, 9/1/19		1,500		1,729
6.75%, 6/1/21		690		745
5.88%, 7/15/22(1)		1,255		1,267
Entravision Communications Corp.,
8.75%, 8/1/17		1,298		1,376
Fox Acquisition Sub LLC,
13.38%, 7/15/16(1)		780		835
Gannett Co., Inc.,
9.38%, 11/15/17		210		234
7.13%, 9/1/18		1,610		1,723
Local TV Finance LLC,
9.25%, 6/15/15(1)		435		439
McClatchy (The) Co.,
11.50%, 2/15/17		1,325		1,375
Mediacom LLC/Mediacom Capital Corp.,
9.13%, 8/15/19		175		192
7.25%, 2/15/22		875		890
Radio One, Inc.,
15.00%, 5/24/16		707		561
Sinclair Television Group, Inc.,
8.38%, 10/15/18		1,145		1,248
Univision Communications, Inc.,
6.88%, 5/15/19(1)		1,125		1,159
7.88%, 11/1/20(1)		1,475		1,578
8.50%, 5/15/21(1)		1,298		1,308
XM Satellite Radio, Inc.,
13.00%, 8/1/13(1)		470		524
7.63%, 11/1/18(1)		1,205		1,295
				39,614
Metal Fabrication/Hardware - 0.2%
Atkore International, Inc.,
9.88%, 1/1/18		1,070		1,038
Mueller Water Products, Inc.,
7.38%, 6/1/17		435		435
				1,473
Miscellaneous Manufacturing - 0.4%
JM Huber Corp.,
9.88%, 11/1/19(1)		935		1,005
Park-Ohio Industries, Inc.,
8.13%, 4/1/21		375		383
RBS Global, Inc./Rexnord LLC,
8.50%, 5/1/18		1,150		1,248
				2,636
Oil & Gas - 5.9%
ATP Oil & Gas Corp.,
11.88%, 5/1/15		296		138
Calumet Specialty Products Partners L.P./Calumet Finance Corp.,
9.38%, 5/1/19		555		556
9.38%, 5/1/19		535		536
9.63%, 8/1/20(1) (2)		440		447
Chesapeake Energy Corp.,
9.50%, 2/15/15		235		253
6.50%, 8/15/17		330		328
6.88%, 8/15/18		75		75
6.78%, 3/15/19		1,396		1,361
6.63%, 8/15/20		745		738
6.88%, 11/15/20		695		685
6.13%, 2/15/21		2,040		1,974
Cimarex Energy Co.,
5.88%, 5/1/22(5)		1,075		1,117
Concho Resources, Inc.,
7.00%, 1/15/21		1,050		1,124

NORTHERN FUNDS QUARTERLY REPORT    10    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Oil & Gas - 5.9% continued
Denbury Resources, Inc.,
8.25%, 2/15/20	$	1,500	$	1,642
EP Energy LLC/EP Energy Finance, Inc.,		745		779
6.88%, 5/1/19(1) (2)
9.38%, 5/1/20(1) (2)		2,698		2,796
EXCO Resources, Inc.,
7.50%, 9/15/18		1,590		1,375
Forest Oil Corp.,
7.25%, 6/15/19		1,260		1,156
Halcon Resources Corp.,
9.75%, 7/15/20(1) (5)		1,160		1,172
Hercules Offshore, Inc.,
7.13%, 4/1/17(1)		360		349
10.50%, 10/15/17(1)		989		989
10.25%, 4/1/19(1)		87		83
Laredo Petroleum, Inc.,
7.38%, 5/1/22(1) (2)		480		499
Linn Energy LLC/Linn Energy Finance Corp.,
6.25%, 11/1/19(1) (2)		1,145		1,122
8.63%, 4/15/20		700		754
7.75%, 2/1/21		2,430		2,539
Newfield Exploration Co.,
5.75%, 1/30/22		820		857
5.63%, 7/1/24		390		399
Oasis Petroleum, Inc.,
7.25%, 2/1/19		1,300		1,332
Parker Drilling Co.,
9.13%, 4/1/18		1,015		1,073
9.13%, 4/1/18(1) (2)		235		249
Pioneer Natural Resources Co.,
5.88%, 7/15/16		670		745
Plains Exploration & Production Co.,
7.63%, 6/1/18		310		329
8.63%, 10/15/19		280		309
7.63%, 4/1/20		625		659
6.63%, 5/1/21		970		980
6.75%, 2/1/22		1,350		1,377
QEP Resources, Inc.,
5.38%, 10/1/22		965		967
Range Resources Corp.,
5.75%, 6/1/21		265		277
5.00%, 8/15/22		1,410		1,392
SandRidge Energy, Inc.,
8.00%, 6/1/18(1)		2,670		2,703
7.50%, 3/15/21		1,100		1,086
8.13%, 10/15/22(1) (2)		565		571
Venoco, Inc.,
8.88%, 2/15/19		725		660
WPX Energy, Inc.,
5.25%, 1/15/17(1) (2)		496		502
6.00%, 1/15/22(1)		1,495		1,488
				42,542
Oil & Gas Services - 0.5%
Basic Energy Services, Inc.,
7.13%, 4/15/16		625		617
Hornbeck Offshore Services, Inc.,
8.00%, 9/1/17		650		698
5.88%, 4/1/20(1)		525		521
Pioneer Drilling Co.,
9.88%, 3/15/18		480		504
SESI LLC,
6.38%, 5/1/19		939		983
7.13%, 12/15/21(1)		465		506
				3,829
Packaging & Containers - 1.0%
Berry Plastics Corp.,
9.50%, 5/15/18		1,305		1,390
9.75%, 1/15/21		3,220		3,502
Owens-Brockway Glass Container, Inc.,
7.38%, 5/15/16		535		596
Sealed Air Corp.,
8.38%, 9/15/21(1)		1,685		1,904
				7,392
Pharmaceuticals - 1.1%
Endo Pharmaceuticals Holdings, Inc.,
7.00%, 7/15/19		580		631
Mylan, Inc.,
7.63%, 7/15/17(1)		525		577
7.88%, 7/15/20(1)		310		348
NBTY, Inc.,
9.00%, 10/1/18		1,200		1,326
Valeant Pharmaceuticals International,
6.50%, 7/15/16(1)		645		674
6.75%, 10/1/17(1)		320		334
6.88%, 12/1/18(1) (2)		1,170		1,209

MULTI-MANAGER FUNDS    11    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Pharmaceuticals - 1.1% continued
6.75%, 8/15/21(1)	$	1,320	$	1,294
7.25%, 7/15/22(1)		1,405		1,408
				7,801
Pipelines - 2.4%
Atlas Pipeline Partners L.P./Atlas Pipeline Finance Corp.,
8.75%, 6/15/18		1,075		1,148
Chesapeake Midstream Partners L.P./CHKM Finance Corp.,
5.88%, 4/15/21		55		53
6.13%, 7/15/22		2,010		1,970
Copano Energy LLC/Copano Energy Finance Corp.,
7.13%, 4/1/21		875		901
Eagle Rock Energy Partners L.P./Eagle Rock Energy Finance Corp.,
8.38%, 6/1/19		1,050		1,047
El Paso Corp.,
7.00%, 6/15/17		890		1,010
7.25%, 6/1/18		220		254
7.80%, 8/1/31		665		746
7.75%, 1/15/32		965		1,085
Energy Transfer Equity L.P.,
7.50%, 10/15/20		1,230		1,350
Kinder Morgan Finance Co. LLC,
6.00%, 1/15/18(1)		1,160		1,207
MarkWest Energy Partners L.P./MarkWest Energy Finance Corp.,
8.75%, 4/15/18		745		795
6.25%, 6/15/22		505		520
NGPL PipeCo. LLC,
9.63%, 6/1/19(1) (2)		665		713
7.77%, 12/15/37(1) (2)		1,555		1,485
Regency Energy Partners L.P./Regency Energy Finance Corp.,
6.88%, 12/1/18		720		758
Rockies Express Pipeline LLC,
6.88%, 4/15/40(1) (2)		1,680		1,445
Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,
7.88%, 10/15/18		200		216
6.88%, 2/1/21		175		182
				16,885
Real Estate - 0.7%
Colonial Realty L.P.,
6.05%, 9/1/16		2,200		2,373
Realogy Corp.,
7.63%, 1/15/20(1) (2)		510		527
Toys R Us Property Co. I LLC,
10.75%, 7/15/17		1,925		2,103
				5,003
Real Estate Investment Trusts - 0.5%
Host Hotels & Resorts L.P.,
5.88%, 6/15/19		1,270		1,371
6.00%, 10/1/21		100		110
Omega Healthcare Investors, Inc.,
6.75%, 10/15/22		1,645		1,756
				3,237
Retail- 3.7%
AmeriGas Finance LLC/AmeriGas Finance Corp.,
6.75%, 5/20/20		860		877
7.00%, 5/20/22		925		953
Claire’s Stores, Inc.,
9.25%, 6/1/15		325		276
9.63%, 6/1/15		156		133
8.88%, 3/15/19		650		556
Dillard’s, Inc.,
7.88%, 1/1/23		330		344
7.75%, 7/15/26		495		496
7.75%, 5/15/27		465		459
Express LLC/Express Finance Corp.,
8.75%, 3/1/18		675		729
Ferrellgas L.P./Ferrellgas Finance Corp.,
9.13%, 10/1/17		1,295		1,353
GRD Holdings III Corp.,
10.75%, 6/1/19(1)		415		411
Inergy L.P./Inergy Finance Corp.,
7.00%, 10/1/18		620		639
6.88%, 8/1/21		1,250		1,250
J.C. Penney Corp., Inc.,
6.38%, 10/15/36		2,653		2,003
7.40%, 4/1/37		1,345		1,126
Landry’s, Inc.,
9.38%, 5/1/20(1) (2)		1,115		1,133
Limited Brands, Inc.,
5.63%, 2/15/22		470		484
7.60%, 7/15/37		1,050		1,046

NORTHERN FUNDS QUARTERLY REPORT    12    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Retail - 3.7% continued
Michaels Stores, Inc.,
11.38%, 11/1/16	$	630	$	669
7.75%, 11/1/18		250		264
New Albertsons, Inc.,
7.45%, 8/1/29		2,890		2,124
8.70%, 5/1/30		1,050		856
8.00%, 5/1/31		1,425		1,104
PVH Corp.,
7.75%, 11/15/23		290		338
RadioShack Corp.,
6.75%, 5/15/19		500		371
Rite Aid Corp.,
9.50%, 6/15/17		85		87
10.25%, 10/15/19		295		332
8.00%, 8/15/20		645		731
Sears Holdings Corp.,
6.63%, 10/15/18		2,890		2,579
Toys R Us Property Co. II LLC,
8.50%, 12/1/17		930		968
Toys R Us, Inc.,
7.38%, 10/15/18		2,235		1,816
				26,507
Semiconductors - 0.1%
Freescale Semiconductor, Inc.,
9.25%, 4/15/18(1)		510		546
MEMC Electronic Materials, Inc.,
7.75%, 4/1/19		605		478
				1,024
Software - 1.5%
Fidelity National Information Services, Inc.,
7.63%, 7/15/17		465		513
7.88%, 7/15/20		450		506
First Data Corp.,
11.25%, 3/31/16		1,560		1,470
7.38%, 6/15/19(1) (2)		1,555		1,586
8.25%, 1/15/21(1)		2,450		2,450
12.63%, 1/15/21		985		986
Lawson Software, Inc.,
11.50%, 7/15/18(1)		1,055		1,192
9.38%, 4/1/19(1)		325		347
Sophia L.P./Sophia Finance, Inc.,
9.75%, 1/15/19(1)(2)		730		776
SSI Investments II Ltd./SSI Co-Issuer LLC,
11.13%, 6/1/18		770		865
				10,691
Storage/Warehousing - 0.1%
Niska Gas Storage US LLC/Niska Gas Storage Canada ULC,
8.88%, 3/15/18		590		575
Telecommunications - 7.8%
Alcatel-Lucent USA, Inc.,
6.50%, 1/15/28		50		34
6.45%, 3/15/29		4,585		3,118
CenturyLink, Inc.,
6.45%, 6/15/21		245		255
5.80%, 3/15/22		970		966
7.60%, 9/15/39		1,155		1,115
7.65%, 3/15/42		1,000		971
Cincinnati Bell Telephone Co. LLC,
6.30%, 12/1/28		50		41
Cincinnati Bell, Inc.,
8.25%, 10/15/17		1,075		1,118
8.75%, 3/15/18		1,785		1,718
Clearwire Communications LLC/Clearwire Finance, Inc.,
12.00%, 12/1/15(1)		1,445		1,315
CommScope, Inc.,
8.25%, 1/15/19(1)		1,595		1,687
CPI International, Inc.,
8.00%, 2/15/18		800		721
Cricket Communications, Inc.,
7.75%, 5/15/16		1,060		1,125
Frontier Communications Corp.,
8.25%, 4/15/17		420		451
8.50%, 4/15/20		330		350
9.25%, 7/1/21		655		704
7.88%, 1/15/27		1,830		1,610
9.00%, 8/15/31		5,809		5,548
7.45%, 7/1/35		10		8
Integra Telecom Holdings, Inc.,
10.75%, 4/15/16(1)		695		678
ITC Deltacom, Inc.,
10.50%, 4/1/16		850		905
Level 3 Financing, Inc.,
8.75%, 2/15/17		985		1,024

MULTI-MANAGER FUNDS    13    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 67.2% continued
Telecommunications - 7.8% continued
10.00%, 2/1/18	$	1,149	$	1,244
8.13%, 7/1/19		2,975		3,053
8.63%, 7/15/20		1,195		1,255
Nextel Communications, Inc.,
7.38%, 8/1/15		500		501
PAETEC Holding Corp.,
8.88%, 6/30/17		460		496
9.88%, 12/1/18		190		212
Qwest Capital Funding, Inc.,
7.63%, 8/3/21		260		269
6.88%, 7/15/28		650		627
Qwest Communications International, Inc.,
7.13%, 4/1/18		635		670
Qwest Corp.,
6.75%, 12/1/21		350		394
7.50%, 6/15/23		215		216
6.88%, 9/15/33		2,490		2,478
Sprint Capital Corp.,
6.90%, 5/1/19		10		9
6.88%, 11/15/28		8,050		6,480
8.75%, 3/15/32		4,750		4,322
Sprint Nextel Corp.,
9.13%, 3/1/17(1)		745		782
9.00%, 11/15/18(1)		245		274
7.00%, 3/1/20(1) (2)		860		894
Syniverse Holdings, Inc.,
9.13%, 1/15/19		1,275		1,383
Windstream Corp.,
8.13%, 8/1/13		295		311
7.88%, 11/1/17		125		136
7.75%, 10/15/20		255		270
7.75%, 10/1/21		1,425		1,510
7.50%, 6/1/22		900		927
7.50%, 4/1/23		1,994		2,044
				56,219
Transportation - 0.1%
Gulfmark Offshore, Inc.,
6.38%, 3/15/22(1) (2)		865		874
Total Corporate Bonds (Cost $474,635)				482,013
FOREIGN ISSUER BONDS - 14.3%
Airlines - 0.1%
Air Canada,
9.25%, 8/1/15(1) (2)		760		743
12.00%, 2/1/16(1) (2)		55		48
				791
Banks - 0.9%
Export-Import Bank of Korea,
4.00%, 11/26/15(8)		151,800		3,643
HBOS PLC,
6.75%, 5/21/18(1) (2)		2,700		2,547
6.00%, 11/1/33(1) (2)		200		157
				6,347
Building Materials - 0.8%
Ainsworth Lumber Co. Ltd.,
11.00%, 7/29/15(1)		1,024		891
Corp. GEO S.A.B. de C.V.,
8.88%, 3/27/22(1) (2)		800		824
Desarrolladora Homex S.A.B. de C.V.,
9.75%, 3/25/20(1) (2)		1,720		1,806
Masonite International Corp.,
8.25%, 4/15/21(1) (2)		1,230		1,267
Urbi Desarrollos Urbanos S.A.B. de C.V.,
9.50%, 1/21/20(1)		115		120
9.75%, 2/3/22(1) (2)		600		633
				5,541
Chemicals - 0.9%
Ineos Finance PLC,
8.38%, 2/15/19(1)		735		761
Ineos Group Holdings Ltd.,
8.50%, 2/15/16(1)		1,210		1,110
LyondellBasell Industries N.V.,
5.00%, 4/15/19(1) (2) (5)		1,835		1,925
6.00%, 11/15/21(1)		1,480		1,624
5.75%, 4/15/24(1) (2)		35		38
NOVA Chemicals Corp.,
8.38%, 11/1/16		750		834
				6,292
Commercial Services - 0.3%
DP World Ltd.,
6.85%, 7/2/37(1) (2)		2,000		1,965
Computers - 0.1%
Seagate HDD Cayman,
7.00%, 11/1/21		755		814

NORTHERN FUNDS QUARTERLY REPORT    14    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 14.3% continued
Distribution/Wholesale - 0.1%
Marfrig Overseas Ltd.,
9.50%, 5/4/20(1) (2)	$	500	$	390
Diversified Financial Services - 0.1%
Aircastle Ltd.,
6.75%, 4/15/17		655		662
7.63%, 4/15/20		195		198
				860
Electric - 0.5%
EDP Finance B.V.,
6.00%, 2/2/18(1) (2)		1,000		870
4.90%, 10/1/19(1) (2)		2,610		2,079
Enel Finance International N.V.,
6.00%, 10/7/39(1) (2)		1,200		942
				3,891
Electronics - 0.2%
NXP B.V./NXP Funding LLC,
9.75%, 8/1/18(1) (2)		1,300		1,482
Food - 0.1%
Campofrio Food Group S.A.,
8.25%, 10/31/16(3)		450		564
Forest Products & Paper - 0.3%
Cascades, Inc.,
7.75%, 12/15/17		585		589
Catalyst Paper Corp.,
11.00%, 12/15/16(1) (2) (6)		800		392
Fibria Overseas Finance Ltd.,
6.75%, 3/3/21(1) (2)		1,050		1,048
				2,029
Healthcare - Products - 0.1%
ConvaTec Healthcare E S.A.,
10.50%, 12/15/18(1) (2)		875		879
Holding Companies - Diversified - 0.2%
Votorantim Cimentos S.A.,
7.25%, 4/5/41(1) (2)		1,200		1,200
Internet - 0.1%
eAccess Ltd.,
8.25%, 4/1/18(1)		800		728
Investment Companies - 0.1%
Boparan Finance PLC,
9.75%, 4/30/18(3)		500		668
Iron/Steel - 0.4%
APERAM,
7.38%, 4/1/16(1) (2)		400		344
7.75%, 4/1/18(1)		475		404
ArcelorMittal,
6.75%, 3/1/41		705		658
Essar Steel Algoma, Inc.,
9.88%, 6/15/15(1)		1,505		1,275
				2,681
Leisure Time - 0.1%
Royal Caribbean Cruises Ltd.,
7.50%, 10/15/27		945		954
Media - 0.4%
Nara Cable Funding Ltd.,
8.88%, 12/1/18(1) (3)		1,590		1,367
Ono Finance II PLC,
10.88%, 7/15/19(1) (2)		305		236
Unitymedia GmbH,
9.50%, 3/15/21(3)		600		827
Ziggo Bond Co. B.V.,
8.00%, 5/15/18(3)		485		669
				3,099
Mining - 1.3%
FMG Resources August 2006 Pty Ltd.,
7.00%, 11/1/15(1) (2)		3,625		3,697
6.00%, 4/1/17(1) (2)		1,125		1,131
8.25%, 11/1/19(1) (2)		1,395		1,479
6.88%, 4/1/22(1) (2)		205		207
Novelis, Inc.,
8.38%, 12/15/17(1)		925		990
Taseko Mines Ltd.,
7.75%, 4/15/19		900		859
Vedanta Resources PLC,
9.50%, 7/18/18(1) (2)		1,400		1,305
				9,668
Miscellaneous Manufacturing - 0.4%
Bombardier, Inc.,
7.45%, 5/1/34(1)		2,500		2,513
Multi-National - 0.3%
European Bank for Reconstruction & Development,
9.25%, 9/10/12(9)		4,250		2,130

MULTI-MANAGER FUNDS    15    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 14.3% continued
Oil & Gas - 1.1%
Connacher Oil and Gas Ltd.,
8.75%, 8/1/18(1) (10)	$	1,290	$	1,068
8.50%, 8/1/19(1) (2)		185		157
Kodiak Oil & Gas Corp.,
8.13%, 12/1/19(1)		580		597
MEG Energy Corp.,
6.50%, 3/15/21(1) (2)		950		970
Offshore Group Investments Ltd.,
11.50%, 8/1/15		990		1,074
11.50%, 8/1/15(1) (2)		430		467
OGX Austria GmbH,
8.50%, 6/1/18(1) (2)		2,850		2,537
8.38%, 4/1/22(1) (2)		1,400		1,208
				8,078
Oil & Gas Services - 0.2%
MBPS Finance Co.,
11.25%, 11/15/15(1) (2)		1,080		876
Trinidad Drilling Ltd.,
7.88%, 1/15/19(1) (2)		852		905
				1,781
Packaging & Containers - 0.2%
ARD Finance S.A.,
11.13%, 6/1/18(1)		505		470
Ardagh Packaging Finance PLC,
9.13%, 10/15/20(1)		975		1,033
9.25%, 10/15/20(3)		200		254
				1,757
Sovereign - 2.5%
Brazilian Government International Bond,
8.50%, 1/5/24(9)		1,050		569
10.25%, 1/10/28(9)		6,000		3,709
Ireland Government Bond,
4.50%, 10/18/18(3)		175		205
4.50%, 4/18/20(3)		340		386
5.00%, 10/18/20(3)		40		47
5.40%, 3/13/25(3)		1,495		1,748
Italy Buoni Poliennali Del Tesoro,
5.25%, 11/1/29(3)		105		122
5.75%, 2/1/33(3)		90		108
5.00%, 8/1/34(3)		110		120
Mexican Bonos,
7.75%, 12/14/17(11)		61,300		5,208
8.00%, 12/7/23(11)		16,500		1,502
Philippine Government International Bond,
4.95%, 1/15/21(8)		10,000		246
6.25%, 1/14/36(8)		40,000		1,011
Portugal Obrigacoes do Tesouro OT,
4.80%, 6/15/20(3)		25		22
4.95%, 10/25/23(3)		1,855		1,553
Uruguay Government International Bond,
3.70%, 6/26/37(12)		17,225		1,155
				17,711
Telecommunications - 2.3%
America Movil S.A.B. de C.V.,
8.46%, 12/18/36(11)		3,400		265
Axtel S.A.B. de C.V.,
9.00%, 9/22/19(1) (2)		1,445		954
Bakrie Telecom Pte Ltd.,
11.50%, 5/7/15(1) (2)		1,700		995
Intelsat Jackson Holdings S.A.,
7.25%, 4/1/19		1,160		1,218
8.50%, 11/1/19		360		399
Intelsat Luxembourg S.A.,
11.25%, 2/4/17		3,840		3,955
11.50%, 2/4/17		690		712
Matterhorn Mobile Holdings S.A.,
8.25%, 2/15/20(3)		400		527
Portugal Telecom International Finance B.V.,
5.63%, 2/8/16(3)		100		118
5.00%, 11/4/19(3)		450		463
4.50%, 6/16/25(3)		250		221
Telecom Italia Capital S.A.,
6.38%, 11/15/33		70		55
6.00%, 9/30/34		765		587
Telefonica Emisiones S.A.U.,
5.13%, 4/27/20		1,875		1,615
7.05%, 6/20/36		975		852
UPC Holding B.V.,
9.88%, 4/15/18(1)		743		814
8.38%, 8/15/20(3)		325		425
UPCB Finance V Ltd.,
7.25%, 11/15/21(1) (2)		275		287
Wind Acquisition Finance S.A.,
7.25%, 2/15/18(1) (2)		785		683
7.25%, 2/15/18(1) (2)		440		385

NORTHERN FUNDS QUARTERLY REPORT    16    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 14.3% continued
Telecommunications - 2.3% continued
Wind Acquisition Holdings Finance S.A.,
12.25%, 7/15/17(1) (2)	$	1,505	$	1,031
				16,561
Transportation - 0.2%
CHC Helicopter S.A.,
9.25%, 10/15/20		720		704
Teekay Corp.,
8.50%, 1/15/20		671		681
				1,385
Total Foreign Issuer Bonds (Cost $103,180)				102,759
TERM LOANS - 2.5%
Auto Manufacturers - 0.1%
Chrysler Group LLC,
6.00%, 5/24/17		738		742
Auto Parts & Equipment - 0.2%
Goodyear Tire & Rubber (The) Co.,
4.75%, 4/19/19(5)		1,320		1,287
Coal - 0.1%
Arch Coal, Inc.,
5.75%, 5/14/18		1,065		1,043
Commercial Services - 0.3%
Emergency Medical Services Corp.,
5.25%, 5/25/18		614		607
Monitronics International, Inc.,
5.50%, 1/28/15		550		545
Pharmaceutical Product Development, Inc.,
6.25%, 12/5/18		648		650
				1,802
Diversified Financial Services - 0.2%
Springleaf Financial Funding Co.,
5.50%, 5/10/17(5)		1,839		1,728
Electric - 0.2%
Texas Competitive Electric Holdings Co. LLC,
4.74%, 10/10/17		2,351		1,402
Lodging - 0.3%
Caesars Entertainment Operating Co., Inc.,
4.50%, 1/28/18		1,446		1,238
Caesars Entertainment Operating Co., Inc. (Tranche B6),
5.50%, 1/28/18(5)		987		872
				2,110
Media - 0.3%
Cengage Learning, Inc.,
5.75%, 7/9/17		411		353
Charter Communications Operating LLC,
4.00%, 5/15/19		556		552
Clear Channel Communications, Inc.,
3.65%, 7/30/14(5)		285		259
Univision Communications, Inc.,
4.50%, 3/31/17		660		621
				1,785
Miscellaneous Manufacturing - 0.1%
Trinseo Materials Operating S.C.A.,
6.00%, 8/2/17		940		880
Oil & Gas - 0.1%
Chesapeake Energy Corp.,
8.50%, 12/2/17		805		797
Real Estate - 0.3%
Realogy Corp.,
4.49%, 10/10/16(5)		1,895		1,781
Real Estate Investment Trusts - 0.1%
iStar Financial, Inc.,
7.00%, 6/30/14		1,028		1,026
Retail - 0.1%
Lord & Taylor LLC,
5.75%, 1/11/19		628		628
Software - 0.1%
First Data Corp.,
5.25%, 3/24/17		392		372
Sophia L.P.,
6.25%, 7/19/18(5)		400		402
				774
Telecommunications - 0.0%
Level 3 Financing, Inc.,
5.75%, 9/1/18		230		229
Total Term Loans (Cost $18,691)				18,014

MULTI-MANAGER FUNDS    17    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
PREFERRED STOCKS - 0.4%
Banks - 0.4%
Ally Financial, Inc.*		41,725	$	958
Ally Financial, Inc.(1) (2) *		2,245		2,000
				2,958
Home Builders - 0.0%
Hovnanian Enterprises, Inc.*		10,100		62
Total Preferred Stocks (Cost $3,108)				3,020
CONVERTIBLE PREFERRED STOCKS - 1.5%
Auto Manufacturers - 0.6%
General Motors Co.,
4.75%		125,450		4,165
Auto Parts & Equipment - 0.3%
Goodyear Tire & Rubber (The) Co.,
5.88%*		52,200		2,255
Banks - 0.0%
Bank of America Corp.,
7.25%		75		73
Commercial Services - 0.0%
United Rentals Trust I,
6.50%*		1,680		85
Housewares - 0.3%
Newell Financial Trust I,
5.25%*		51,950		2,611
Insurance - 0.0%
Hartford Financial Services Group, Inc.,
7.25%		67		1
Mining - 0.0%
Molycorp, Inc.,
5.50%*		568		30
Oil & Gas - 0.0%
Apache Corp.,
6.00%		1,380		69
SandRidge Energy, Inc.,
8.50%*		500		54
				123
Pipelines - 0.2%
El Paso Energy Capital Trust I,
4.75%*		24,025		1,217
Telecommunications - 0.1%
Lucent Technologies Capital Trust I.,
7.75%*		750		506
Total Convertible Preferred Stocks (Cost $12,643)				11,066
COMMON STOCKS - 0.0%
Transportation - 0.0%
General Maritime Corp.†*		871		—
Total Common Stocks (Cost $1,122)				—
	NUMBER OF WARRANTS		VALUE (000S)
WARRANTS - 0.0%
General Maritime Corp.,
Exp. 5/17/17*		1,347	$	—
Total Warrants (Cost $ — )				—
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 5.9%
Northern Institutional Funds - Diversified Assets Portfolio(13)		42,118,112	$	42,118
Total Investment Companies (Cost $42,118)				42,118
Total Investments - 99.2% (Cost $706,846)				712,345
Other Assets less Liabilities - 0.8%				5,483
NET ASSETS - 100.0%			$	717,828

(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 June 30, 2012, the value of these restricted illiquid securities amounted to approximately $76,157,000 or 10.6% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
Air Canada,
9.25%, 8/1/15	11/9/11-2/24/12	$	725
Air Canada,
12.00%, 2/1/16	11/8/11		52
Ally Financial, Inc.,	11/3/10-6/20/12		1,962
APERAM,
7.38%, 4/1/16	3/25/11		400

NORTHERN FUNDS QUARTERLY REPORT    18    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
Axtel S.A.B. de C.V.,
9.00%, 9/22/19	9/25/09-10/21/11	$	1,281
Bakrie Telecom Pte Ltd.,
11.50%, 5/7/15	4/30/10-9/13/11		1,559
Braskem America Finance Co.,
7.13%, 7/22/41	11/3/11-11/4/11		393
Calumet Specialty Products Partners L.P./Calumet Finance Corp.,
9.63%, 8/1/20	6/21/12-6/28/12		438
Catalyst Paper Corp.,
11.00%, 12/15/16	11/4/10-7/15/11		731
Cengage Learning Acquisitions, Inc.,
11.50%, 4/15/20	4/3/12		482
CIT Group, Inc.,
5.50%, 2/15/19	2/2/12-6/6/12		2,684
CityCenter Holdings LLC/CityCenter Finance Corp.,
7.63%, 1/15/16	2/13/12		702
Clear Channel Worldwide Holdings, Inc.,
7.63%, 3/15/20	6/6/12-6/13/12		270
Connacher Oil and Gas Ltd.,
8.50%, 8/1/19	8/5/11-8/8/11		169
ConvaTec Healthcare E S.A.,
10.50%, 12/15/18	12/17/10-12/20/10		875
Corp. GEO S.A.B. de C.V.,
8.88%, 3/27/22	3/21/12		800
Desarrolladora Homex S.A.B. de C.V.,
9.75%, 3/25/20	2/2/12-2/9/12		1,707
DP World Ltd.,
6.85%, 7/2/37	11/25/09-6/24/11		1,556
EDP Finance B.V.,
4.90%, 10/1/19	2/2/12-6/18/12		2,072
EDP Finance B.V.,
6.00%, 2/2/18	2/9/12-3/21/12		851
Enel Finance International N.V.,
6.00%, 10/7/39	5/22/12-6/19/12		946
EP Energy LLC/EP Energy Finance, Inc.,
6.88%, 5/1/19	4/10/12-6/7/12		762
EP Energy LLC/EP Energy Finance, Inc.,
9.38%, 5/1/20	4/10/12-6/29/12		2,005
Fibria Overseas Finance Ltd.,
6.75%, 3/3/21	2/28/11		1,041
First Data Corp.,
7.38%, 6/15/19	3/9/12		552
FMG Resources August 2006 Pty Ltd.,
6.00%, 4/1/17	3/14/12-6/1/12		1,115
FMG Resources August 2006 Pty Ltd.,
7.00%, 11/1/15	10/26/10-6/22/12		3,716
FMG Resources August 2006 Pty Ltd.,
8.25%, 11/1/19	10/25/11-2/22/12		1,422
FMG Resources August 2006 Pty Ltd.,
6.88%, 4/1/22	5/22/12-5/29/12		200
Fresenius Medical Care US Finance II, Inc.,
5.63%, 7/31/19	1/17/12		595
Gulfmark Offshore, Inc.,
6.38%, 3/15/22	4/26/12-4/27/12		889
HBOS PLC,
6.00%, 11/1/33	11/10/11		130
HBOS PLC,
6.75%, 5/21/18	11/14/11-12/14/11		2,152
Landry’s, Inc.,
9.38%, 5/1/20	4/19/12-5/2/12		1,131
Laredo Petroleum, Inc.,
7.38%, 5/1/22	4/24/12-4/25/12		485
Lennar Corp.,
3.25%, 11/15/21	11/23/11		1,165
Levi Strauss & Co.,
6.88%, 5/1/22	4/24/12		500
Linn Energy LLC/Linn Energy Finance Corp.,
6.25%, 11/1/19	2/28/12		1,145
LyondellBasell Industries N.V.,
5.00%, 4/15/19	3/26/12		1,835
LyondellBasell Industries N.V.,
5.75%, 4/15/24	6/11/12		37
Marfrig Overseas Ltd.,
9.50%, 5/4/20	4/29/10		492
Masonite International Corp.,
8.25%, 4/15/21	4/8/11		1,230
MBPS Finance Co.,
11.25%, 11/15/15	11/8/10		1,080
MEG Energy Corp.,
6.50%, 3/15/21	3/14/11		950
Micron Technology, Inc.,
1.88%, 8/1/31	7/21/11-11/28/11		2,407
Micron Technology, Inc.,
2.38%, 5/1/32	5/22/12-6/28/12		1,063
Momentive Performance Materials, Inc.,
10.00%, 10/15/20	5/17/12-6/6/12		664
NGPL PipeCo. LLC,
9.63%, 6/1/19	5/22/12		665
NGPL PipeCo. LLC,
7.77%, 12/15/37	3/29/12-5/21/12		1,392
NXP B.V./NXP Funding LLC,
9.75%, 8/1/18	10/12/10-12/1/11		487

MULTI-MANAGER FUNDS    19    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
Offshore Group Investments Ltd.,
11.50%, 8/1/15	4/2/12	$	464
OGX Austria GmbH,
8.38%, 4/1/22	3/27/12-6/29/12		1,365
OGX Austria GmbH,
8.50%, 6/1/18	5/26/11-6/29/12		2,832
Ono Finance II PLC,
10.88%, 7/15/19	1/21/11-1/31/11		311
Parker Drilling Co.,
9.13%, 4/1/18	4/11/12		244
Prospect Medical Holdings, Inc.,
8.38%, 5/1/19	4/26/12-5/1/12		495
Realogy Corp.,
7.63%, 1/15/20	1/25/12		510
Reichhold Industries, Inc.,
9.00%, 5/8/17	3/16/10-4/1/10		850
Rockies Express Pipeline LLC,
6.88%, 4/15/40	1/31/12-4/20/12		1,355
SandRidge Energy, Inc.,
8.13%, 10/15/22	4/2/12		340
Sierra Receivables Funding Co. LLC, Series 2011-3A, Class C,
9.31%, 7/20/28	11/4/11		772
Sophia L.P./Sophia Finance, Inc.,
9.75%, 1/15/19	1/11/12-4/16/12		743
Sprint Nextel Corp.,
7.00%, 3/1/20	2/27/12-4/17/12		869
Trinidad Drilling Ltd.,
7.88%, 1/15/19	12/9/10-11/16/11		862
UPCB Finance V Ltd.,
7.25%, 11/15/21	11/8/11		275
UR Financing Escrow Corp.,
5.75%, 7/15/18	2/24/12		160
UR Financing Escrow Corp.,
7.63%, 4/15/22	2/24/12		360
Urbi Desarrollos Urbanos S.A.B. de C.V.,
9.75%, 2/3/22	1/27/12		591
USG Corp.,
7.88%, 3/30/20	3/29/12		442
Valeant Pharmaceuticals International,
6.88%, 12/1/18	4/24/12		1,193
Vedanta Resources PLC,
9.50%, 7/18/18	5/26/11		1,400
Votorantim Cimentos S.A.,
7.25%, 4/5/41	2/2/12		1,193
Wind Acquisition Finance S.A.,
7.25%, 2/15/18	9/12/11-11/30/11		402
Wind Acquisition Finance S.A.,
7.25%, 2/15/18	4/4/12-5/25/12		695
Wind Acquisition Holdings Finance S.A.,
12.25%, 7/15/17	5/26/10-2/6/12		1,528
WPX Energy, Inc.,
5.25%, 1/15/17	4/12/12-4/18/12		483

(3) Principal amount is denoted in Euro.

(4) Par value is denoted in Australian Dollar.

(5) When-Issued Security.

(6) Issuer has defaulted on terms of debt obligation.

(7) Zero coupon bond reflects effective yield on the date of purchase.

(8) Principal amount is denoted in Philippine Peso.

(9) Principal amount is denoted in Brazilian Real.

(10) Par value is denoted in Canadian Dollar.

(11) Par Value is denoted in Mexican Peso.

(12) Principal amount is denoted in Uruguayan Peso.

(13) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfilio of the Northern Institutional Funds was approximately $14,708,000 with net purchases of approximately $27,410,000 during the three months ended June 30, 2012.

† Level 3 asset that is worthless, bankrupt or has been delisted.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	708,754
Gross tax appreciation of investments	$	25,039
Gross tax depreciation of investments		(21,448	)
Net tax appreciation of investments	$	3,591

At June 30, 2012, the Multi-Manager High Yield Opportunity Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
United States Dollar		96.2	%
All other currencies less than 5%		3.8
Total		100.0	%

NORTHERN FUNDS QUARTERLY REPORT    20    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

At June 30, 2012, the credit quality distribution for the Multi-Manager High Yield Opportunity Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF LONG TERM INVESTMENTS
AAA		0.3	%
A		1.4
BBB		4.6
BB		25.0
B		39.6
CCC or Below		21.6
Non-Rated		1.8
Cash Equivalents		5.7
Total		100.0	%

* Credit quality ratings are compiled from two external rating agencies: Moody’s and Standard & Poor’s. We report the lowest rating of the two in the event there are any differences between them. If neither of these rating agencies has assigned a rating, the Fund will assign a rating of not rated. The ratings, expressed in Standard & Poor’s nomenclature, range from AAA (extremely strong capacity to meet its financial commitment) to D (in default). Short-term ratings, expressed in Standard & Poor’s nomenclature, range from A-1 (obligor’s capacity to meet its financial commitment on the obligation is strong) to A-3 (exhibits adequate protection parameters). Government securities consist of obligations issued or guaranteed by the U.S. Treasury. The ratings represent the rating agencies’ opinions of the quality of the securities they rate. Ratings are relative and subjective and are not absolute standards of quality.

At June 30, 2012, the Multi-Manager High Yield Opportunity Fund had outstanding foreign currency exchange contracts as follows:

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
Euro		4,990	United States Dollar		6,545		7/31/12	$	229
Euro		42	United States Dollar		52		7/31/12		(1	)
Euro		3,099	United States Dollar		3,870		7/31/12		(53	)
United States Dollar		993	Euro		800		7/31/12		20
Total								$	195

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Valuations based on inputs that are unobservable and insignificant. The Fund utilized the following techniques on Level 3 investments: The Fund valued certain securities using prices provided by a third party pricing provider.

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Multi-Manager High Yield Opportunity Fund’s investments and other financial instruments, which are carried at fair value, as of June 30, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Asset-Backed Securities	$	—		$	17,442	(1)	$	—	$	17,442
Convertible Bonds
Oil & Gas Services		—			76			220		296
Software		—			—			60		60
All Other Industries		—			35,557	(1)		—		35,557
Corporate Bonds		—			482,013	(1)		—		482,013
Foreign Issuer Bonds
Airlines		—			791			—		791
Banks		—			2,704			3,643		6,347
Building Materials		—			5,541			—		5,541
Chemicals		—			6,292			—		6,292
Commercial Services		—			1,965			—		1,965
Computers		—			814			—		814
Distribution/Wholesale		—			390			—		390
Diversified Financial Services		—			860			—		860
Electric		—			3,891			—		3,891
Electronics		—			1,482			—		1,482
Food		—			564			—		564
Forest Products & Paper		—			2,029			—		2,029
Healthcare - Products		—			879			—		879
Holding Companies - Diversified		—			1,200			—		1,200
Internet		—			728			—		728
Investment Companies		—			668			—		668
Iron/Steel		—			2,681			—		2,681
Leisure Time		—			954			—		954
Media		—			3,099			—		3,099
Mining		—			9,668			—		9,668
Miscellaneous Manufacturing		—			2,513			—		2,513
Multi-National		—			2,130			—		2,130
Oil & Gas		—			8,078			—		8,078
Oil & Gas Services		—			1,781			—		1,781
Packaging & Containers		—			1,757			—		1,757
Sovereign		—			11,021			6,690		17,711
Telecommunications		—			16,561			—		16,561
Transportation		—			1,385			—		1,385
Term Loans		—			18,014	(1)		—		18,014
Preferred Stocks
Banks		958			2,000			—		2,958
Home Builders		62			—			—		62
Convertible Preferred Stocks
Commercial Services		—			85			—		85
All Other Industries		10,981	(1)		—			—		10,981
Investment Companies		42,118			—			—		42,118
Total Investments	$	54,119		$	647,613		$	10,613	$	712,345

MULTI-MANAGER FUNDS    21    NORTHERN FUNDS QUARTERLY REPORT

JUNE 30, 2012 (UNAUDITED)

OTHER FINANCIAL INSTRUMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Assets
Foreign Currency Exchange Contracts	$	—	$	249		$	—	$	249
Liabilities
Foreign Currency Exchange Contracts		—		(54	)		—		(54	)
Total Other Financial Instruments	$	—	$	195		$	—	$	195

(1) Classifications as defined in the Schedule of Investments.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

The following is a reconciliation of investments in which significant unobservable inputs (Level 3) were used in determining fair value:

	BALANCE AS OF 3/31/12 (000S)		REALIZED GAINS (000S)		REALIZED LOSSES (000S)			CHANGE IN UNREALIZED APPRECIATION (000S)		CHANGE IN UNREALIZED DEPRECIATION (000S)			PURCHASES (000S)		SALES (000S)			TRANSFERS INTO LEVEL 3 (000S) (1)		TRANSFERS OUT OF LEVEL 3 (000S)(1)		BALANCE AS OF 6/30/12 (000S)
Convertible Bonds
Oil & Gas Services	$	249	$	—	$	—		$	—	$	(29	)	$	—	$	—		$	—	$	—	$	220
Software		—		—		—			1		—			59		—			—		—		60
Foreign Issuer Bonds
Banks		8,712		—		(427	)		200		—			—		(4,842	)		—		—		3,643
Multi-National		879		—		(10	)		—		(8	)		—		(861	)		—		—		—
Sovereign		7,269		34		—			—		(318	)		578		(873	)		—		—		6,690
Total	$	17,109	$	34	$	(437	)	$	201	$	(355	)	$	637	$	(6,576	)	$	—	$	—	$	10,613

(1) The value of Transfers Into and Out of Level 3 are measured using the fair value as of the end of the period ended, June 30, 2012.

The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at June 30, 2012 was approximately $(1,353).

NORTHERN FUNDS QUARTERLY REPORT    22    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL TACTICAL ASSET ALLOCATION FUND JUNE 30, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
FUND ALLOCATION - INVESTMENT COMPANIES - 100.1%
FlexShares Morningstar Global Upstream Natural Resources Index Fund(1)		26,217	$	866
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund(1)		32,512		842
SPDR Gold Trust ETF*		16,604		2,577
Northern Funds - Bond Index Fund(1)		438,016		4,822
Northern Funds - Emerging Markets Equity Index Fund(1)		283,331		3,026
Northern Funds - Global Real Estate Index Fund(1)		257,383		2,162
Northern Funds - High Yield Fixed Income Fund(1)		874,446		6,322
Northern Funds - Mid Cap Index Fund(1)		86,329		1,081
Northern Institutional Funds - Diversified Assets Portfolio(1)		222,735		223
Northern Institutional Funds - Equity Index Portfolio(1)		792,548		10,739
Northern Institutional Funds - International Equity Index Portfolio(1)		575,766		4,347
Northern Institutional Funds - Short Bond Portfolio(1)		252,455		4,829
Northern Institutional Funds - Small Company Index Portfolio(1)		60,168		1,080
Total Investment Companies (Cost $41,563)				42,916
Total Investments - 100.1% (Cost $41,563)				42,916
Liabilities less Other Assets - (0.1)%				(44	)
NET ASSETS - 100.0%			$	42,872

(1) Investment in affiliated fund. Northern Trust Investments, Inc. is the investment adviser of the Fund and the investment adviser to other Northern Funds, to the Northern Institutional Funds and to FlexShares Trust.

* Non-Income Producing Security

ETF - Exchange Traded Fund

NF - Northern Funds

NIF - Northern Institutional Funds

TIPS - Treasury Inflation Protected Securities

Percentages shown are based on Net Assets.

At June 30, 2012, the asset class weightings for the Global Tactical Asset Allocation Fund were:

ASSET CLASS	WEIGHT			INVESTMENT VEHICLE
U.S. Equity - Large		25.0	%	NIF Equity Index
U.S. Equity - Mid		2.5		NF Mid Cap Index
U.S. Equity - Small		2.5		NIF Small Company Index
Non U.S. Equity - Developed		10.1		NIF International Equity Index
Non U.S. Equity - Emerging Markets		7.1		NF Emerging Markets Equity Index
Global Real Estate		5.1		NF Global Real Estate Index
U.S. Bonds - High Yield		14.7		NF High Yield Fixed Income
U.S. Bonds - Intermediate		11.2		NF Bond Index
U.S. Bonds - Inflation Protected		2.0		FlexShares iBoxx 5-Year Target Duration TIPS Index
U.S. Bonds - Short		11.3		NIF Short Bond
Gold		6.0		SPDR Gold Trust ETF
Global Natural Resources		2.0		FlexShares Morningstar Global Upstream Natural Resources Index
Cash		0.5		NIF Diversified Assets
Total		100.0	%

Federal Tax Information:

At June 30, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	41,906
Gross tax appreciation of investments	$	1,400
Gross tax depreciation of investments		(390	)
Net tax appreciation of investments	$	1,010

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in three levels listed below:

Level 1 - Unadjusted quoted market prices in active markets for identical securities on the measurement date.

Level 2 - Other observable inputs (e.g., quoted prices in active markets for similar securities, securities valuations based on commonly quoted benchmark interest rates and yield curves, maturities, ratings and/or securities indices).

Level 3 - Significant unobservable inputs (e.g., information about assumptions, including risk, market participants would use in pricing a security).

NORTHERN FUNDS QUARTERLY REPORT    1    GLOBAL TACTICAL ASSET ALLOCATION FUND

SCHEDULE OF INVESTMENTS

GLOBAL TACTICAL ASSET ALLOCATION FUND continued

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities and other financial instruments, if any. Following is a summary of the inputs used in valuing the Global Tactical Asset Allocation Fund’s investments, which are carried at fair value, as of June 30, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)		LEVEL 3 (000S) $		TOTAL (000S)
Investment Companies	$	42,916	$	—		—	$	42,916

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At June 30, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications based on levels assigned to the securities on March 31, 2012. U.S. GAAP provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have significantly decreased as well as guidance on identifying circumstances that indicate when a transaction is not orderly.

Transactions in affiliated portfolios for the three months ended June 30, 2012, were as follows:

	VALUE, BEGINNING OF PERIOD (000S)		PURCHASES (000S)		SALES PROCEEDS (000S)		NET REALIZED GAINS (LOSSES) (000S)			DIVIDEND INCOME (000S)		VALUE, END OF PERIOD (000S)
FlexShares Morningstar Global Upstream Natural Resources Index Fund	$	690	$	253	$	27	$	(4	)	$	—	$	866
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		698		164		29		—			5		842
Northern Funds - Bond Index Fund		4,749		923		913		27			31		4,822
Northern Funds - Emerging Markets Equity Index Fund		2,463		845		69		(15	)		—		3,026
Northern Funds - Global Real Estate Index Fund		1,055		1,144		63		(2	)		17		2,162
Northern Funds - High Yield Fixed Income Fund		4,573		1,970		169		(6	)		103		6,322
Northern Funds - Mid Cap Index Fund		879		268		23		(1	)		—		1,081
Northern Institutional Funds - Diversified Assets Portfolio		102		2,643		2,522		—			—		223
Northern Institutional Funds - Equity Index Portfolio		8,795		2,382		172		(1	)		55		10,739
Northern Institutional Funds - International Equity Index Portfolio		3,518		1,135		71		(13	)		—		4,347
Northern Institutional Funds - Short Bond Portfolio		4,749		922		847		13			19		4,829
Northern Institutional Funds - Small Company Index Portfolio		879		257		32		(2	)		—		1,080
	$	33,150	$	12,906	$	4,937	$	(4	)	$	230	$	40,339

GLOBAL TACTICAL ASSET ALLOCATION FUND    2    NORTHERN FUNDS QUATERLY REPORT

JUNE 30, 2012 (UNAUDITED)

SECURITY VALUATIONS

Northern Trust’s Pricing Unit (the “NT Pricing Unit”) is responsible for supplying a value for each portfolio security used in the NAV computations. Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing are fair valued in accordance with policies and procedures established by and subject to oversight by the Funds’ Board of Trustees (the “Board”). Northern Trust Global Investments has established a pricing and valuation committee (the “NTGI PVC”) whose membership includes representatives of the Funds’ investment adviser, Northern Trust Investments, Inc. (the “Adviser” and “NTI”), as well as independent control personnel from the Northern Trust Company’s Legal and NTI’s Compliance and Risk Management. NTGI PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process of securities.

NTGI PVC is responsible for making the final determination of the fair value of the security. In making its determination, NTGI PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of security; the current financial position of the company; the cost of the investment; information as to any transaction or offers with respect to the security; market value of a similar freely traded security; and news events. The Adviser will continue to monitor markets and the issuer’s circumstances that affect the security’s valuation to determine the continued appropriateness of the security’s fair valuation. NTGI PVC will review if the markets and issuer’s circumstances relevant to the valuation of the fair valued security change materially.

For each level 3 security that has been fair valued pursuant to the policies adopted by the Board, the fair value price is compared against the last available and next available market quotations. The results of such back testing and fair valuation occurrences are reported to the Valuation Committee of the Board quarterly.

Global Real Estate Index Fund
Amounts in thousands	Fair Value at 6/30/12		Valuation Techniques	Unobservable Inputs
Common Stocks	$	721	Discounted Cash Flow	Discovery Price set at Privatization
International Equity Index Fund
Amounts in thousands	Fair Value at 6/30/12		Valuation Techniques	Unobservable Inputs
Common Stocks	$	64	Discounted Cash Flow	Entitlement Offer
Rights		8	Discounted Cash Flow	Delisted Asset
Multi-Manager International Equity Fund
Amounts in thousands	Fair Value at 6/30/12		Valuation Techniques	Unobservable Inputs
Common Stocks	$	76	Market Comparable Companies/Discounted Cash Flow	Liquidity Discount
Multi-Manager Emerging Markets Equity Fund
Amounts in thousands	Fair Value at 6/30/12		Valuation Techniques	Unobservable Inputs
Common Stocks	$	549	Book Value	Discovery Price set at Acquisition
High Yield Municipal Fund
Amounts in thousands	Fair Value at 6/30/12		Valuation Techniques	Unobservable Inputs
Municipal Bonds	$	34	Discounted Cash Flow	Estimated Recovery Value

The significant unobservable inputs used in the fair value measurement of the common stocks are discovery prices, entitlement offers and liquidity discounts. Significant increases (decreases) in discovery prices or entitlement offers in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) fair value measurement.

The significant unobservable inputs used in the fair value measurement of the municipal bond are distressed/defaulted market discount and estimated recovery value. Significant increases (decreases) in estimated recovery value would result in a significantly higher (lower) fair value measurement.

Item 2. 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 1940 Act (17 CFR 270.30a-3(c))) are effective, based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended, (17 CFR 240.13a-15(b) or 240.15d-15(b)) 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 (17 CFR 270.30a-3(d))) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

(a) Separate certifications for the principal executive and principal financial officers of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)) are attached hereto.

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.

Northern Funds

By:	/s/ Lloyd A. Wennlund
	Lloyd A. Wennlund, President
	(Principal Executive Officer)
Date:	August 29, 2012

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:	/s/ Lloyd A. Wennlund
	Lloyd A. Wennlund, President
	(Principal Executive Officer)
Date:	August 29, 2012

By:	/s/ Randal Rein
	Randal Rein, Treasurer
	(Principal Financial and Accounting Officer)
Date:	August 29, 2012