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: December 31, 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 DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.3%
Advertising - 1.3%
Interpublic Group of (The) Cos., Inc.		4,652	$	51
Omnicom Group, Inc.		1,873		94
				145
Aerospace/Defense - 3.0%
Alliant Techsystems, Inc.		173		11
General Dynamics Corp.		409		28
Lockheed Martin Corp.		1,158		107
Northrop Grumman Corp.		1,453		98
Raytheon Co.		1,816		105
				349
Agriculture - 1.9%
Altria Group, Inc.		4,263		134
Archer-Daniels-Midland Co.		1,267		35
Philip Morris International, Inc.		577		48
				217
Apparel - 0.1%
Deckers Outdoor Corp.*		247		10
Auto Manufacturers - 0.3%
Ford Motor Co.		883		11
General Motors Co.*		362		11
Navistar International Corp.*		384		8
				30
Auto Parts & Equipment - 0.2%
Lear Corp.		226		11
TRW Automotive Holdings Corp.*		191		10
				21
Banks - 8.3%
Bank of America Corp.		12,494		145
Bank of New York Mellon (The) Corp.		731		19
Capital One Financial Corp.		986		57
Citigroup, Inc.		4,164		165
Goldman Sachs Group (The), Inc.		1,130		144
JPMorgan Chase & Co.		3,454		152
Morgan Stanley		505		10
PNC Financial Services Group, Inc.		244		14
Regions Financial Corp.		13,085		93
SunTrust Banks, Inc.		3,433		97
Wells Fargo & Co.		1,871		64
				960
Beverages - 1.7%
Coca-Cola (The) Co.		1,209		44
Green Mountain Coffee Roasters, Inc.*		408		17
PepsiCo, Inc.		2,063		141
				202
Biotechnology - 1.2%
Amgen, Inc.		1,613		139
Chemicals - 3.1%
CF Industries Holdings, Inc.		454		92
E.I. du Pont de Nemours & Co.		2,353		106
Eastman Chemical Co.		601		41
Huntsman Corp.		581		9
LyondellBasell Industries N.V., Class A		1,924		110
				358
Coal - 0.2%
Alpha Natural Resources, Inc.*		1,079		10
Peabody Energy Corp.		345		9
Walter Energy, Inc.		243		9
				28
Commercial Services - 2.4%
Apollo Group, Inc., Class A*		3,305		69
DeVry, Inc.		367		9
H&R Block, Inc.		347		7
ITT Educational Services, Inc.*		283		5
R.R. Donnelley & Sons Co.		5,559		50
Total System Services, Inc.		3,653		78
Western Union (The) Co.		4,440		60
				278
Computers - 7.9%
Accenture PLC, Class A		1,030		69
Apple, Inc.		679		362
Dell, Inc.		1,269		13
Hewlett-Packard Co.		630		9
International Business Machines Corp.		1,328		254
Lexmark International, Inc., Class A		427		10
Seagate Technology PLC		3,132		95
Western Digital Corp.		2,422		103
				915
Cosmetics/Personal Care - 0.6%
Procter & Gamble (The) Co.		1,105		75
Distribution/Wholesale - 0.8%
Genuine Parts Co.		1,334		85

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

ENHANCED LARGE CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.3% continued
Distribution/Wholesale - 0.8% continued
WESCO International, Inc.*		158	$	10
				95
Diversified Financial Services - 0.8%
SLM Corp.		5,472		94
Electric - 3.3%
AES Corp.		2,438		26
Ameren Corp.		2,780		86
American Electric Power Co., Inc.		655		28
DTE Energy Co.		1,413		85
Entergy Corp.		1,146		73
FirstEnergy Corp.		1,086		45
Public Service Enterprise Group, Inc.		1,245		38
				381
Electrical Components & Equipment - 0.8%
Emerson Electric Co.		1,696		90
GrafTech International Ltd.*		885		8
				98
Electronics - 0.1%
Gentex Corp.		523		10
Thermo Fisher Scientific, Inc.		50		3
				13
Engineering & Construction - 0.2%
AECOM Technology Corp.*		427		10
Engility Holdings, Inc.*		468		9
				19
Food - 2.4%
Campbell Soup Co.		2,568		90
ConAgra Foods, Inc.		2,452		72
Dean Foods Co.*		5,659		93
Safeway, Inc.		566		10
Tyson Foods, Inc., Class A		554		11
				276
Healthcare - Products - 1.4%
Baxter International, Inc.		471		31
Medtronic, Inc.		2,922		120
Stryker Corp.		287		16
				167
Healthcare - Services - 1.7%
Aetna, Inc.		907		42
Health Net, Inc.*		385		9
Humana, Inc.		119		8
UnitedHealth Group, Inc.		2,343		127
WellPoint, Inc.		143		9
				195
Home Furnishings - 1.0%
Tempur-Pedic International, Inc.*		277		9
Whirlpool Corp.		1,064		108
				117
Household Products/Wares - 1.1%
Clorox (The) Co.		222		16
Kimberly-Clark Corp.		1,317		111
				127
Insurance - 4.5%
Allstate (The) Corp.		2,491		100
American International Group, Inc.*		1,280		45
Assurant, Inc.		2,481		86
Assured Guaranty Ltd.		627		9
Berkshire Hathaway, Inc., Class B*		609		55
Genworth Financial, Inc., Class A*		1,601		12
Hartford Financial Services Group, Inc.		416		9
Lincoln National Corp.		3,858		100
MetLife, Inc.		1,479		49
StanCorp Financial Group, Inc.		278		10
Torchmark Corp.		936		48
				523
Internet - 1.9%
Expedia, Inc.		495		30
GOOGLE, Inc., Class A*		201		143
Groupon, Inc.*		1,730		8
TripAdvisor, Inc.*		219		9
Yahoo!, Inc.*		930		19
Zynga, Inc., Class A*		3,592		9
				218
Iron/Steel - 0.3%
Allegheny Technologies, Inc.		283		8
Cliffs Natural Resources, Inc.		217		8
Nucor Corp.		37		2
Steel Dynamics, Inc.		723		10
United States Steel Corp.		414		10
				38
Leisure Time - 0.3%
Carnival Corp.		1,061		39

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.3% continued
Lodging - 0.7%
Marriott International, Inc., Class A		2,082	$	78
Machinery - Construction & Mining - 0.1%
Joy Global, Inc.		152		10
Media - 1.7%
Gannett Co., Inc.		5,062		91
McGraw-Hill (The) Cos., Inc.		1,856		102
				193
Mining - 0.1%
Molycorp, Inc.*		814		8
Miscellaneous Manufacturing - 4.9%
3M Co.		1,491		138
Dover Corp.		1,490		98
General Electric Co.		5,285		111
Illinois Tool Works, Inc.		1,836		112
Parker Hannifin Corp.		1,157		98
Polypore International, Inc.*		253		12
				569
Office/Business Equipment - 0.6%
Pitney Bowes, Inc.		6,930		74
Oil & Gas - 10.1%
Chevron Corp.		2,376		257
ConocoPhillips		2,470		143
EXCO Resources, Inc.		1,032		7
Exxon Mobil Corp.		4,812		416
Helmerich & Payne, Inc.		1,085		61
Murphy Oil Corp.		599		36
Patterson-UTI Energy, Inc.		535		10
Phillips 66		571		30
SM Energy Co.		159		8
Tesoro Corp.		2,034		90
Ultra Petroleum Corp.*		387		7
Valero Energy Corp.		3,200		109
				1,174
Oil & Gas Services - 0.7%
CARBO Ceramics, Inc.		139		11
National Oilwell Varco, Inc.		951		65
Superior Energy Services, Inc.*		441		9
				85
Packaging & Containers - 0.4%
Bemis Co., Inc.		1,516		51
Pharmaceuticals - 7.1%
Abbott Laboratories		1,315		86
Bristol-Myers Squibb Co.		3,969		129
Eli Lilly & Co.		2,711		134
Forest Laboratories, Inc.*		62		2
Johnson & Johnson		1,126		79
McKesson Corp.		1,143		111
Merck & Co., Inc.		4,359		178
Pfizer, Inc.		4,098		103
				822
Real Estate Investment Trusts - 2.4%
Chimera Investment Corp.		3,383		9
CommonWealth REIT		595		10
HCP, Inc.		1,233		56
Host Hotels & Resorts, Inc.		5,998		94
Kimco Realty Corp.		4,564		88
Piedmont Office Realty Trust, Inc., Class A		518		9
Retail Properties of America, Inc., Class A		763		9
				275
Retail - 6.9%
Abercrombie & Fitch Co., Class A		266		13
Bed Bath & Beyond, Inc.*		1,569		88
Best Buy Co., Inc.		1,569		19
Big Lots, Inc.*		1,063		30
CVS Caremark Corp.		2,844		137
GameStop Corp., Class A		3,887		98
Gap (The), Inc.		2,661		83
Macy’s, Inc.		2,567		100
Staples, Inc.		782		9
TJX Cos., Inc.		506		21
Walgreen Co.		1,060		39
Wal-Mart Stores, Inc.		2,371		162
				799
Semiconductors - 2.2%
Advanced Micro Devices, Inc.*		2,825		7
Intel Corp.		7,052		145
KLA-Tencor Corp.		1,941		93
QUALCOMM, Inc.		59		3
Rovi Corp.*		631		10
				258
Software - 3.9%
CA, Inc.		3,616		79
Electronic Arts, Inc.*		688		10
Microsoft Corp.		9,114		244

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

ENHANCED LARGE CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.3% continued
Software - 3.9% continued
Oracle Corp.		3,611	$	120
				453
Telecommunications - 4.7%
Acme Packet, Inc.*		558		12
AT&T, Inc.		4,700		159
Cisco Systems, Inc.		8,862		174
NII Holdings, Inc.*		1,167		8
Polycom, Inc.*		860		9
Verizon Communications, Inc.		4,116		178
				540
Transportation - 0.0%
Norfolk Southern Corp.		74		5
Total Common Stocks (Cost $10,124)				11,521
INVESTMENT COMPANIES - 0.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1) (2)		44,044		44
SPDR S&P 500 ETF Trust		328		47
Total Investment Companies (Cost $90)				91
Total Investments - 100.1% (Cost $10,214)				11,612
Liabilities less Other Assets - (0.1)%				(14	)
NET ASSETS - 100.0%			$	11,598

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 $333,000 during the nine months ended December 31, 2012.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Enhanced Large Cap Fund were :

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.4	%
Consumer Staples		10.7
Energy		11.0
Financials		16.4
Health Care		11.5
Industrials		10.3
Information Technology		18.4
Materials		4.0
Telecommunication Services		3.0
Utilities		3.3
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 Enhanced Large Cap Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	11,521	(1)	$	—	$	—	$	11,521
Investment Companies		91			—		—		91
Total Investments	$	11,612		$	—	$	—	$	11,612

(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 December 31, 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

DECEMBER 31, 2012 (UNAUDITED)

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	10,369
Gross tax appreciation of investments	$	1,528
Gross tax depreciation of investments		(285	)
Net tax appreciation of investments	$	1,243

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INCOME EQUITY FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 61.2%
Banks - 3.0%
Banco Santander S.A. ADR		252,218	$	2,061
JPMorgan Chase & Co.		84,300		3,707
Morgan Stanley		217,500		4,158
				9,926
Beverages - 1.0%
Coca-Cola (The) Co.		93,300		3,382
Chemicals - 1.6%
Dow Chemical (The) Co.		156,540		5,059
Computers - 1.7%
Accenture PLC, Class A		59,400		3,950
International Business Machines Corp.		8,850		1,695
				5,645
Cosmetics/Personal Care - 2.2%
Avon Products, Inc.		225,215		3,234
Procter & Gamble (The) Co.		56,120		3,810
				7,044
Electric - 1.9%
Exelon Corp.		45,000		1,338
Great Plains Energy, Inc.		238,629		4,847
				6,185
Electrical Components & Equipment - 1.2%
Emerson Electric Co.		74,250		3,932
Food - 3.0%
Kellogg Co.		72,740		4,063
Kraft Foods Group, Inc.		46,613		2,119
Mondelez International, Inc., Class A		139,840		3,562
				9,744
Household Products/Wares - 1.3%
Kimberly-Clark Corp.		51,936		4,385
Insurance - 2.6%
Chubb (The) Corp.		45,840		3,453
Travelers (The) Cos., Inc.		67,740		4,865
				8,318
Media - 3.5%
Comcast Corp., Class A		144,880		5,415
Walt Disney (The) Co.		122,890		6,119
				11,534
Miscellaneous Manufacturing - 4.6%
3M Co.		60,060		5,577
Eaton Corp. PLC		95,100		5,155
General Electric Co.		198,400		4,164
				14,896
Office/Business Equipment - 1.3%
Xerox Corp.		608,620		4,151
Oil & Gas - 8.3%
Cenovus Energy, Inc.		110,000		3,689
Chevron Corp.		33,270		3,598
ConocoPhillips		66,220		3,840
Devon Energy Corp.		76,610		3,987
Encana Corp.		196,450		3,882
Marathon Oil Corp.		120,020		3,680
Occidental Petroleum Corp.		58,240		4,462
				27,138
Pharmaceuticals - 9.6%
Abbott Laboratories		72,130		4,725
Bristol-Myers Squibb Co.		133,020		4,335
GlaxoSmithKline PLC ADR		115,160		5,006
Johnson & Johnson		82,250		5,766
Merck & Co., Inc.		137,286		5,620
Pfizer, Inc.		235,460		5,905
				31,357
Real Estate Investment Trusts - 3.5%
Healthcare Realty Trust, Inc.		187,550		4,503
Rayonier, Inc.		131,370		6,809
				11,312
Retail - 1.7%
Target Corp.		94,850		5,612
Savings & Loans - 1.8%
New York Community Bancorp, Inc.		435,510		5,705
Semiconductors - 0.5%
Intel Corp.		80,000		1,651
Software - 1.3%
Activision Blizzard, Inc.		413,450		4,391
Telecommunications - 3.8%
Cisco Systems, Inc.		257,500		5,060
Verizon Communications, Inc.		112,605		4,872
Vodafone Group PLC ADR		100,000		2,519
				12,451

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INCOME EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 61.2% continued
Toys, Games & Hobbies - 1.8%
Mattel, Inc.		159,680	$	5,848
Total Common Stocks (Cost $166,772)				199,666
CONVERTIBLE PREFERRED STOCKS - 6.5%
Auto Manufacturers - 0.9%
General Motors Co., 4.75%		70,000		3,089
Banks - 1.3%
Bank of America Corp., 7.25%		3,775		4,285
Computers - 1.0%
Unisys Corp., 6.25%		61,600		3,246
Insurance - 1.3%
Hartford Financial Services Group, Inc., 7.25%		199,097		4,111
Oil & Gas - 2.0%
Apache Corp., 6.00%		68,000		3,108
Chesapeake Energy Corp., 5.75%(1) (2)		3,850		3,419
				6,527
Total Convertible Preferred Stocks (Cost $23,609)				21,258
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CONVERTIBLE BONDS - 31 .6%
Aerospace/Defense - 1.0%
Alliant Techsystems, Inc.,
3.00%, 8/15/24	$	3,000	$	3,158
Coal - 1.3%
Peabody Energy Corp.,
4.75%, 12/15/41		4,450		4,278
Computers - 3.9%
CACI International, Inc.,
2.13%, 5/1/14		6,000		6,728
SanDisk Corp.,
1.50%, 8/15/17		5,300		6,141
				12,869
Electrical Components & Equipment - 2.2%
EnerSys, Inc.,
3.38%, 6/1/38		3,350		3,894
General Cable Corp.,
4.50%, 11/15/29		3,000		3,240
				7,134
Electronics - 1.7%
TTM Technologies, Inc.,
3.25%, 5/15/15		5,409		5,436
Food - 2.1%
Tyson Foods, Inc.,
3.25%, 10/15/13		5,750		6,900
Healthcare - Products - 1.3%
Hologic, Inc.,
2.00%, 3/1/42		4,345		4,280
Healthcare - Services - 2.1%
LifePoint Hospitals, Inc.,
3.50%, 5/15/14		5,000		5,156
WellPoint, Inc.,
2.75%, 10/15/42(1) (2)		1,700		1,815
				6,971
Home Builders - 2.0%
D.R. Horton, Inc.,
2.00%, 5/15/14		4,125		6,425
Internet - 1.2%
Symantec Corp.,
1.00%, 6/15/13		3,700		3,931
Investment Companies - 2.4%
Fifth Street Finance Corp.,
5.38%, 4/1/16		7,582		7,677
Mining - 3.4%
Kaiser Aluminum Corp.,
4.50%, 4/1/15		3,447		4,696
Newmont Mining Corp.,
1.63%, 7/15/17		5,000		6,519
				11,215
Pharmaceuticals - 1.0%
Omnicare, Inc.,
3.75%, 12/15/25		2,250		3,313
Retail - 2.3%
Regis Corp.,
5.00%, 7/15/14		6,060		7,401

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CONVERTIBLE BONDS - 31.6% continued
Semiconductors - 2.5%
Intel Corp.,
2.95%, 12/15/35	$	2,400	$	2,481
Lam Research Corp.,
1.25%, 5/15/18		5,650		5,579
				8,060
Telecommunications - 1.2%
Comtech Telecommunications Corp.,
3.00%, 5/1/29		3,875		3,957
Total Convertible Bonds (Cost $94,562)				103,005
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 0.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(3) (4)		2,679,345	$	2,679
Total Investment Companies (Cost $2,679)				2,679
Total Investments - 100.1% (Cost $287,622)				326,608
Liabilities less Other Assets - (0.1)%				(223	)
NET ASSETS - 100.0%			$	326,385

(1) Restricted security that has been deemed illiquid. At December 31, 2012, the value of these restricted illiquid securities amounted to approximately $5,234,000 or 1.6% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
Chesapeake Energy Corp.,
5.75%	1/18/12-1/27/12	$	3,850
WellPoint, Inc.,
2.75%, 10/15/42	10/3/12		1,700

(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 to 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 $537,000 with net purchases of approximately $2,142,000 during the nine months ended December 31, 2012.

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Income Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		12.3	%
Consumer Staples		9.7
Energy		11.7
Financials		15.9
Health Care		14.2
Industrials		9.0
Information Technology		18.0
Materials		5.0
Telecommunication Services		2.3
Utilities		1.9
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 Income Equity Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	199,666	(1)	$	—		$	—	$	199,666
Convertible Preferred Stocks
Oil & Gas		3,108			3,419			—		6,527
All Other Industries		14,731	(1)		—			—		14,731
Convertible Bonds		—			103,005	(1)		—		103,005
Investment Companies		2,679			—			—		2,679
Total Investments	$	220,184		$	106,424		$	—	$	326,608

(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 December 31, 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

INCOME EQUITY FUND continued

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	287,677
Gross tax appreciation of investments	$	50,736
Gross tax depreciation of investments		(11,805	)
Net tax appreciation of investments	$	38,931

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 93.2%
Australia - 2.6%
BHP Billiton Ltd.		79,016	$	3,086
Woodside Petroleum Ltd.		72,047		2,568
WorleyParsons Ltd.		60,207		1,485
				7,139
Belgium - 2.4%
Anheuser-Busch InBev N.V.		73,992		6,466
Brazil - 2.7%
Petroleo Brasileiro S.A. ADR		135,617		2,641
Vale S.A. ADR		221,102		4,634
				7,275
Canada - 1.2%
Potash Corp. of Saskatchewan, Inc.		80,193		3,264
China - 1.6%
Bank of China Ltd., Class H		9,659,245		4,373
Denmark - 1.0%
Novo Nordisk A/S, Class B		17,340		2,832
France - 11.8%
ArcelorMittal		260,247		4,505
BNP Paribas S.A.		70,604		3,980
Bouygues S.A.		151,255		4,460
Danone S.A.		60,767		4,015
European Aeronautic Defence and Space Co. N.V.		119,894		4,699
Societe Generale S.A.*		98,268		3,696
Total S.A.		53,347		2,761
Wendel S.A.		35,076		3,631
				31,747
Germany - 15.5%
Adidas A.G.		37,171		3,313
Allianz S.E. (Registered)		31,434		4,355
Bayer A.G. (Registered)		36,638		3,479
Deutsche Bank A.G. (Registered)		85,698		3,734
E.ON S.E.		36,306		676
GEA Group A.G.		117,898		3,808
Infineon Technologies A.G.		551,774		4,477
Rheinmetall A.G.		89,567		4,309
SAP A.G.		98,335		7,877
Siemens A.G. (Registered)		53,714		5,838
				41,866
Hong Kong - 0.7%
AIA Group Ltd.		499,250		1,990
Japan - 9.3%
Kawasaki Heavy Industries Ltd.		1,804,200		4,903
KDDI Corp.		43,400		3,066
Kubota Corp.		287,500		3,302
Mitsubishi UFJ Financial Group, Inc.		1,146,838		6,171
Mitsui & Co. Ltd.		229,300		3,430
Tokio Marine Holdings, Inc.		153,700		4,286
				25,158
Netherlands - 1.8%
Royal Dutch Shell PLC, Class B		134,355		4,755
Norway - 0.7%
TGS Nopec Geophysical Co. ASA		58,628		1,921
Portugal - 1.4%
Jeronimo Martins SGPS S.A.		191,220		3,690
Singapore - 1.5%
DBS Group Holdings Ltd.		330,954		4,051
South Korea - 4.0%
Hyundai Motor Co.		20,773		4,276
Samsung Electronics Co. Ltd.		2,700		3,864
SK Telecom Co. Ltd. ADR		170,646		2,701
				10,841
Spain - 1.3%
Banco Santander S.A.		427,559		3,447
Sweden - 3.8%
Autoliv, Inc.		44,940		3,029
Husqvarna AB, Class B		651,355		3,948
Telefonaktiebolaget LM Ericsson, Class B		329,697		3,316
				10,293
Switzerland - 8.3%
ABB Ltd. (Registered)		70,427		1,462
Credit Suisse Group A.G. (Registered)		124,750		3,130
Givaudan S.A. (Registered)		2,686		2,848
Novartis A.G. (Registered)		93,705		5,933
Roche Holding A.G. (Genusschein)		29,484		6,007
Syngenta A.G. (Registered)		7,502		3,026
				22,406
United Kingdom - 17.3%
Barclays PLC		2,174,898		9,392
BP PLC		701,193		4,858
Compass Group PLC		227,347		2,689
GlaxoSmithKline PLC		197,804		4,295
Man Group PLC		2,274,227		3,050

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 93.2% continued
United Kingdom - 17.3% continued
Prudential PLC		348,621	$	4,864
Rolls-Royce Holdings PLC		144,434		2,081
Standard Chartered PLC		209,016		5,298
Vodafone Group PLC		2,256,140		5,674
WPP PLC		312,529		4,543
				46,744
United States - 4.3%
Halliburton Co.		134,645		4,671
Mead Johnson Nutrition Co.		46,448		3,060
Schlumberger Ltd.		56,642		3,925
				11,656
Total Common Stocks(1) (Cost $214,850)				251,914
PREFERRED STOCKS - 3.9%
Brazil - 1.8%
Itau Unibanco Holding S.A. ADR		297,897		4,904
Germany - 2.1%
Volkswagen A.G.		24,866		5,657
Total Preferred Stocks (1) (Cost $10,767)				10,561
INVESTMENT COMPANIES - 0.5%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(2) (3)		1,175,651		1,176
Total Investment Companies (Cost $1,176)				1,176
Total Investments - 97.6% (Cost $226,793)				263,651
Other Assets less Liabilities - 2.4%				6,583
NET ASSETS - 100.0%			$	270,234

(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 $2,705,000 during the nine months ended December 31, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets

At December 31, 2012, the industry sectors for the International Equity Fund were:

INDUSTRY SECTOR	% OF LONG TERM INVESTMENTS
Consumer Discretionary		10.5	%
Consumer Staples		6.5
Energy		11.3
Financials		28.3
Health Care		8.6
Industrials		14.6
Information Technology		7.4
Materials		8.1
Telecommunication Services		4.4
Utilities		0.3
Total		100.0	%

At December 31, 2012, the International Equity Fund’s investments were denominated in the following currencies :

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
Euro		35.4	%
British Pound		19.6
United States Dollar		11.3
Japanese Yen		9.6
Swiss Franc		8.5
All other currencies less than 5%		15.6
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). The Fund adjusted the price of certain foreign equity securities held in the portfolio on December 31, 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).

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 International Equity Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	3,028	$	18,769	$	—	$	21,797
Consumer Staples		3,060		14,171		—		17,231
Energy		11,236		18,349		—		29,585
Financials		—		69,448		—		69,448
Health Care		—		22,545		—		22,545
Industrials		—		38,293		—		38,293
Information Technology		—		19,535		—		19,535
Materials		7,898		13,465		—		21,363
Telecommunication Services		2,701		8,740		—		11,441
Utilities		—		676		—		676
Preferred Stocks
Consumer Discretionary		—		5,657		—		5,657
Financials		4,904		—		—		4,904
Investment Companies		1,176		—		—		1,176
Total Investments	$	34,003	$	229,648	$	—	$	263,651

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	233,190
Gross tax appreciation of investments	$	48,669
Gross tax depreciation of investments		(18,208	)
Net tax appreciation of investments	$	30,461

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP EQUITY FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.8%
Aerospace/Defense - 1.1%
Boeing (The) Co.		21,345	$	1,609
Agriculture - 2.5%
Philip Morris International, Inc.		46,189		3,863
Apparel - 2.4%
Coach, Inc.		27,776		1,542
VF Corp.		14,551		2,197
				3,739
Banks - 11.6%
BB&T Corp.		54,273		1,580
Capital One Financial Corp.		47,000		2,723
Citigroup, Inc.		44,629		1,765
JPMorgan Chase & Co.		121,985		5,364
U.S. Bancorp		72,611		2,319
Wells Fargo & Co.		116,673		3,988
				17,739
Beverages - 1.3%
Anheuser-Busch InBev N.V. ADR		22,481		1,965
Biotechnology - 1.0%
Celgene Corp.*		19,086		1,502
Chemicals - 3.2%
E.I. du Pont de Nemours & Co.		35,341		1,589
Monsanto Co.		23,563		2,230
Potash Corp. of Saskatchewan, Inc.		26,582		1,082
				4,901
Coal - 0.7%
Peabody Energy Corp.		42,954		1,143
Computers - 8.6%
Apple, Inc.		14,496		7,727
EMC Corp.*		108,381		2,742
International Business Machines Corp.		7,853		1,504
Teradata Corp.*		19,119		1,183
				13,156
Cosmetics/Personal Care - 1.2%
Procter & Gamble (The) Co.		27,820		1,889
Diversified Financial Services - 1.2%
IntercontinentalExchange, Inc.*		14,315		1,772
Electric - 2.8%
Dominion Resources, Inc.		39,141		2,028
Southern (The) Co.		52,494		2,247
				4,275
Electrical Components & Equipment - 1.3%
Emerson Electric Co.		38,969		2,064
Electronics - 1.0%
Honeywell International, Inc.		25,239		1,602
Healthcare - Products - 1.4%
St. Jude Medical, Inc.		59,016		2,133
Healthcare - Services - 1.5%
Aetna, Inc.		49,268		2,281
Household Products/Wares - 0.7%
Church & Dwight Co., Inc.		21,338		1,143
Insurance - 2.9%
American International Group, Inc.*		23,002		812
CNO Financial Group, Inc.		135,069		1,260
MetLife, Inc.		59,526		1,961
MGIC Investment Corp.*		127,785		340
				4,373
Internet - 1.2%
GOOGLE, Inc., Class A*		2,616		1,856
Media - 2.0%
Comcast Corp., Class A		37,200		1,391
Walt Disney (The) Co.		35,192		1,752
				3,143
Metal Fabrication/Hardware - 1.3%
Precision Castparts Corp.		10,497		1,988
Mining - 1.7%
BHP Billiton Ltd. ADR		32,887		2,580
Miscellaneous Manufacturing - 5.2%
Danaher Corp.		29,401		1,643
Dover Corp.		25,367		1,667
General Electric Co.		218,802		4,593
				7,903
Oil & Gas - 10.9%
Apache Corp.		12,131		952
BP PLC ADR		45,874		1,910
Chevron Corp.		27,702		2,996
Exxon Mobil Corp.		61,458		5,319
Noble Corp.		70,654		2,460
Noble Energy, Inc.		14,885		1,515
Suncor Energy, Inc.		46,783		1,543
				16,695

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 99.8% continued
Oil & Gas Services - 2.8%
National Oilwell Varco, Inc.		25,541	$	1,745
Schlumberger Ltd.		37,765		2,617
				4,362
Pharmaceuticals - 6.3%
BioMarin Pharmaceutical, Inc.*		18,639		918
Express Scripts Holding Co.*		47,659		2,574
Merck & Co., Inc.		77,729		3,182
Pfizer, Inc.		122,147		3,063
				9,737
Real Estate Investment Trusts - 1.3%
Digital Realty Trust, Inc.		30,181		2,049
Retail - 9.1%
CVS Caremark Corp.		66,620		3,221
Dick’s Sporting Goods, Inc.		21,398		973
McDonald’s Corp.		33,729		2,975
Starbucks Corp.		51,210		2,746
Target Corp.		25,983		1,538
TJX Cos., Inc.		59,135		2,510
				13,963
Semiconductors - 3.0%
Intel Corp.		92,628		1,911
QUALCOMM, Inc.		43,051		2,670
				4,581
Software - 4.0%
Check Point Software Technologies Ltd.*		31,867		1,518
Citrix Systems, Inc.*		24,627		1,620
Oracle Corp.		90,252		3,007
				6,145
Telecommunications - 4.6%
AT&T, Inc.		49,254		1,660
CenturyLink, Inc.		57,456		2,248
Cisco Systems, Inc.		159,956		3,143
				7,051
Total Common Stocks (Cost $132,235)				153,202
INVESTMENT COMPANIES - 1 .2%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1) (2)		1,826,780		1,827
Total Investment Companies (Cost $1,827)				1,827
Total Investments - 101.0% (Cost $134,062)				155,029
Liabilities less Other Assets - (1.0)%				(1,503	)
NET ASSETS - 100.0%			$	153,526

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 $650,000 during the nine months ended December 31, 2012.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Large Cap Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.5	%
Consumer Staples		7.9
Energy		14.5
Financials		16.9
Health Care		10.2
Industrials		9.9
Information Technology		18.9
Materials		4.9
Telecommunication Services		2.5
Utilities		2.8
Total		100.0	%

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	153,202	(1)	$	—	$	—	$	153,202
Investment Companies		1,827			—		—		1,827
Total Investments	$	155,029		$	—	$	—	$	155,029

(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 December 31, 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 nine months ended December 31, 2012, were as follows:

	NUMBER OF CONTRACTS			PREMIUMS RECEIVED (000’S)
Options outstanding at March 31, 2012		60		$	13
Options Written		80			8
Options expired and closed		(140	)		(21	)
Options outstanding at December 31, 2012		—		$	—

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	136,176
Gross tax appreciation of investments	$	21,594
Gross tax depreciation of investments		(2,741	)
Net tax appreciation of investments	$	18,853

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP GROWTH FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.4%
Aerospace/Defense - 1.0%
Boeing (The) Co.		27,232	$	2,052
Apparel - 3.2%
Coach, Inc.		31,689		1,759
Michael Kors Holdings Ltd.*		38,700		1,975
NIKE, Inc., Class B		51,861		2,676
				6,410
Beverages - 1.8%
PepsiCo, Inc.		53,701		3,675
Biotechnology - 5.6%
Alexion Pharmaceuticals, Inc.*		34,096		3,199
Biogen Idec, Inc.*		21,823		3,201
Celgene Corp.*		49,318		3,882
Gilead Sciences, Inc.*		13,318		978
				11,260
Chemicals - 3.3%
E.I. du Pont de Nemours & Co.		69,642		3,132
Monsanto Co.		37,077		3,509
				6,641
Commercial Services - 2.3%
Mastercard, Inc., Class A		9,362		4,599
Computers - 11.7%
Apple, Inc.		26,559		14,157
EMC Corp.*		137,265		3,473
International Business Machines Corp.		18,443		3,533
Teradata Corp.*		39,319		2,433
				23,596
Cosmetics/Personal Care - 1.3%
Estee Lauder (The) Cos., Inc., Class A		44,689		2,675
Distribution/Wholesale - 1.0%
W.W. Grainger, Inc.		9,551		1,933
Diversified Financial Services - 2.7%
American Express Co.		61,352		3,527
IntercontinentalExchange, Inc.*		15,290		1,893
				5,420
Electronics - 1.3%
Trimble Navigation Ltd.*		42,047		2,514
Environmental Control - 1.1%
Stericycle, Inc.*		22,632		2,111
Food - 1.8%
Whole Foods Market, Inc.		40,620		3,710
Healthcare - Products - 4.1%
Covidien PLC		39,041		2,254
Edwards Lifesciences Corp.*		19,031		1,716
Intuitive Surgical, Inc.*		8,910		4,369
				8,339
Internet - 10.0%
Amazon.com, Inc.*		18,578		4,666
F5 Networks, Inc.*		32,529		3,160
GOOGLE, Inc., Class A*		13,037		9,248
priceline.com, Inc.*		4,948		3,074
				20,148
Machinery - Diversified - 2.0%
Cummins, Inc.		19,189		2,079
Deere & Co.		21,456		1,854
				3,933
Media - 2.7%
DIRECTV*		39,559		1,984
Walt Disney (The) Co.		68,151		3,393
				5,377
Metal Fabrication/Hardware - 1.5%
Precision Castparts Corp.		15,920		3,016
Miscellaneous Manufacturing - 1.7%
Danaher Corp.		61,028		3,411
Oil & Gas - 1.4%
Noble Energy, Inc.		27,223		2,770
Oil & Gas Services - 3.2%
National Oilwell Varco, Inc.		43,838		2,996
Schlumberger Ltd.		50,994		3,534
				6,530
Pharmaceuticals - 6.5%
Abbott Laboratories		51,802		3,393
Allergan, Inc.		26,049		2,389
BioMarin Pharmaceutical, Inc.*		25,976		1,279
Bristol-Myers Squibb Co.		44,875		1,463
Express Scripts Holding Co.*		43,778		2,364
Perrigo Co.		20,273		2,109
				12,997
Real Estate Investment Trusts - 2.3%
American Tower Corp.		34,425		2,660

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP GROWTH FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.4% continued
Real Estate Investment Trusts - 2.3% continued
Digital Realty Trust, Inc.		30,107	$	2,044
				4,704
Retail - 10.8%
Chipotle Mexican Grill, Inc.*		3,748		1,115
Costco Wholesale Corp.		29,089		2,873
Dick’s Sporting Goods, Inc.		27,443		1,248
Dollar Tree, Inc.*		25,482		1,034
Home Depot (The), Inc.		42,954		2,657
McDonald’s Corp.		34,174		3,014
Panera Bread Co., Class A*		11,054		1,756
Starbucks Corp.		71,677		3,843
Tractor Supply Co.		28,256		2,497
Ulta Salon Cosmetics & Fragrance, Inc.		16,236		1,595
				21,632
Semiconductors - 2.3%
QUALCOMM, Inc.		74,772		4,637
Software - 5.3%
Cerner Corp.*		21,783		1,691
Citrix Systems, Inc.*		49,728		3,269
Red Hat, Inc.*		42,084		2,229
Salesforce.com, Inc.*		20,087		3,377
				10,566
Telecommunications - 1.7%
Verizon Communications, Inc.		80,238		3,472
Transportation - 1.8%
Kansas City Southern		43,322		3,617
Total Common Stocks (Cost $154,369)				191,745
INVESTMENT COMPANIES - 4.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1) (2)		9,596,359		9,596
Total Investment Companies (Cost $9,596)				9,596
Total Investments - 100.2% (Cost $163,965)				201,341
Liabilities less Other Assets - (0.2)%				(306	)
NET ASSETS - 100.0%			$	201,035

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 $6,210,000 during the nine months ended December 31, 2012.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Large Cap Growth Fund were:

INDUSTRY SECTOR	% OF LONG TERM INVESTMENTS
Consumer Discretionary		20.0	%
Consumer Staples		6.7
Energy		4.8
Financials		5.3
Health Care		17.9
Industrials		10.5
Information Technology		29.5
Materials		3.5
Telecommunication Services		1.8
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 Growth Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	191,745	(1)	$	—	$	—	$	191,745
Investment Companies		9,596			—		—		9,596
Total Investments	$	201,341		$	—	$	—	$	201,341

(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 December 31, 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

DECEMBER 31, 2012 (UNAUDITED)

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	164,377
Gross tax appreciation of investments	$	37,497
Gross tax depreciation of investments		(533	)
Net tax appreciation of investments	$	36,964

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP VALUE FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 100.0%
Advertising - 2.6%
Omnicom Group, Inc.		53,302	$	2,663
Aerospace/Defense - 2.8%
Boeing (The) Co.		37,971		2,861
Agriculture - 1.3%
Philip Morris International, Inc.		15,546		1,300
Apparel - 1.1%
Coach, Inc.		19,257		1,069
Auto Parts & Equipment - 1.8%
Johnson Controls, Inc.		60,000		1,842
Banks - 11.1%
Bank of New York Mellon (The) Corp.		55,403		1,424
Goldman Sachs Group (The), Inc.		20,364		2,598
JPMorgan Chase & Co.		64,854		2,852
PNC Financial Services Group, Inc.		18,408		1,073
Wells Fargo & Co.		96,088		3,284
				11,231
Beverages - 1.4%
PepsiCo, Inc.		21,198		1,451
Chemicals - 1.6%
Dow Chemical (The) Co.		51,323		1,659
Computers - 2.6%
Apple, Inc.		911		485
Hewlett-Packard Co.		80,183		1,143
SanDisk Corp.*		23,788		1,036
				2,664
Diversified Financial Services - 6.4%
BlackRock, Inc.		11,076		2,290
CME Group, Inc.		31,462		1,595
Invesco Ltd.		99,514		2,596
				6,481
Electrical Components & Equipment - 2.1%
Energizer Holdings, Inc.		26,198		2,095
Healthcare - Products - 3.0%
Medtronic, Inc.		50,318		2,064
St. Jude Medical, Inc.		26,436		955
				3,019
Housewares - 2.3%
Newell Rubbermaid, Inc.		102,697		2,287
Insurance - 7.2%
Allstate (The) Corp.		61,524		2,471
MetLife, Inc.		74,910		2,468
Prudential Financial, Inc.		43,707		2,331
				7,270
Mining - 2.3%
Freeport-McMoRan Copper & Gold, Inc.		53,113		1,817
Newmont Mining Corp.		10,407		483
				2,300
Miscellaneous Manufacturing - 6.3%
3M Co.		10,701		994
General Electric Co.		118,267		2,482
Siemens A.G. ADR		26,921		2,947
				6,423
Oil & Gas - 11.6%
BP PLC ADR		36,146		1,505
Chevron Corp.		30,843		3,335
Ensco PLC, Class A		36,877		2,186
Exxon Mobil Corp.		39,693		3,436
Occidental Petroleum Corp.		17,286		1,324
				11,786
Oil & Gas Services - 4.5%
Baker Hughes, Inc.		62,914		2,570
Schlumberger Ltd.		29,141		2,019
				4,589
Pharmaceuticals - 10.4%
Abbott Laboratories		24,096		1,578
Johnson & Johnson		29,984		2,102
Merck & Co., Inc.		49,755		2,037
Pfizer, Inc.		109,860		2,755
Teva Pharmaceutical Industries Ltd. ADR		57,178		2,135
				10,607
Retail - 1.9%
Target Corp.		32,780		1,940
Savings & Loans - 2.0%
New York Community Bancorp, Inc.		151,728		1,988
Semiconductors - 4.9%
Applied Materials, Inc.		101,325		1,159
Intel Corp.		94,198		1,943
QUALCOMM, Inc.		30,401		1,886
				4,988

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

LARGE CAP VALUE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 100.0% continued
Software - 2.1%
Microsoft Corp.		81,255	$	2,172
Telecommunications - 6.7%
AT&T, Inc.		61,405		2,070
Cisco Systems, Inc.		119,351		2,345
Vodafone Group PLC ADR		93,692		2,360
				6,775
Total Common Stocks (Cost $85,395)				101,460
INVESTMENT COMPANIES - 0.2%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1) (2)		225,779		226
Total Investment Companies (Cost $226)				226
Total Investments - 100.2% (Cost $85,621)				101,686
Liabilities less Other Assets - (0.2)%				(172	)
NET ASSETS - 100.0%			$	101,514

(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 sales of approximately $1,832,000 during the nine months ended December 31, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Large Cap Value Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		9.7	%
Consumer Staples		4.8
Energy		16.1
Financials		26.6
Health Care		13.4
Industrials		9.1
Information Technology		12.0
Materials		3.9
Telecommunication Services		4.4
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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	101,460	(1)	$	—	$	—	$	101,460
Investment Companies		226			—		—		226
Total Investments	$	101,686		$	—	$	—	$	101,686

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	86,096
Gross tax appreciation of investments	$	17,798
Gross tax depreciation of investments		(2,208	)
Net tax appreciation of investments	$	15,590

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9%
Advertising - 0.0%
Harte-Hanks, Inc.		7,184	$	42
Marchex, Inc., Class B		3,371		14
				56
Aerospace/Defense - 1.6%
AAR Corp.		4,086		76
Aerovironment, Inc.*		1,213		26
Alliant Techsystems, Inc.		4,400		273
Astronics Corp.*		3,044		70
Astronics Corp., Class B*		601		14
Breeze-Eastern Corp.*		6,755		51
Cubic Corp.		4,053		194
Curtiss-Wright Corp.		5,543		182
Ducommun, Inc.*		2,979		48
Esterline Technologies Corp.*		3,270		208
GenCorp, Inc.*		13,200		121
HEICO Corp.		7,012		314
Kaman Corp.		4,166		153
Kratos Defense & Security Solutions, Inc.*		557		3
LMI Aerospace, Inc.*		1,714		33
Moog, Inc., Class A*		6,136		252
National Presto Industries, Inc.		937		65
Orbital Sciences Corp.*		6,353		87
SIFCO Industries, Inc.		522		8
Teledyne Technologies, Inc.*		5,467		356
Triumph Group, Inc.		4,856		317
				2,851
Agriculture - 0.3%
Adecoagro S.A.*		1,025		9
Alico, Inc.		1,147		42
Alliance One International, Inc.*		10,293		38
Andersons (The), Inc.		3,343		143
Cadiz, Inc.*		4,335		34
Griffin Land & Nurseries, Inc.		153		4
Tejon Ranch Co.*		2,858		80
Universal Corp.		3,527		176
Vector Group Ltd.		7,476		111
				637
Airlines - 0.6%
Alaska Air Group, Inc.*		9,783		422
Allegiant Travel Co.		2,868		211
Hawaiian Holdings, Inc.*		1,883		12
JetBlue Airways Corp.*		24,705		141
Republic Airways Holdings, Inc.*		1,618		9
SkyWest, Inc.		7,999		100
US Airways Group, Inc.*		18,928		255
				1,150
Apparel - 1.4%
Carter’s, Inc.*		5,981		333
Cherokee, Inc.		554		8
Columbia Sportswear Co.		2,590		138
Crocs, Inc.*		11,002		158
Delta Apparel, Inc.*		1,398		20
G-III Apparel Group Ltd.*		4,590		157
Iconix Brand Group, Inc.*		9,764		218
Jones Group (The), Inc.		8,951		99
K-Swiss, Inc., Class A*		2,442		8
Maidenform Brands, Inc.*		554		11
Oxford Industries, Inc.		2,859		132
Perry Ellis International, Inc.		2,702		54
Quiksilver, Inc.*		21,001		89
Skechers U.S.A., Inc., Class A*		4,070		75
Steven Madden Ltd.*		4,984		211
Superior Uniform Group, Inc.		3,836		44
True Religion Apparel, Inc.		4,454		113
Unifi, Inc.*		2,442		32
Warnaco Group (The), Inc.*		5,726		410
Weyco Group, Inc.		665		15
Wolverine World Wide, Inc.		7,727		317
				2,642
Auto Manufacturers - 0.0%
Wabash National Corp.*		8,018		72
Auto Parts & Equipment - 0.8%
American Axle & Manufacturing Holdings, Inc.*		2,964		33
Cooper Tire & Rubber Co.		8,555		217
Dana Holding Corp.		20,430		319
Dorman Products, Inc.		4,308		152
Exide Technologies*		6,620		23
Fuel Systems Solutions, Inc.*		5,193		76
Gentherm, Inc.*		934		12
Meritor, Inc.*		2,183		10
Miller Industries, Inc.		3,568		54
Modine Manufacturing Co.*		7,414		60
Spartan Motors, Inc.		1,367		7
Standard Motor Products, Inc.		4,184		93
Superior Industries International, Inc.		4,878		100

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Auto Parts & Equipment - 0.8% continued
Tenneco, Inc.*		6,820	$	240
Titan International, Inc.		4,971		108
				1,504
Banks - 5.3%
1st Source Corp.		5,711		126
Alliance Bancorp, Inc. of Pennsylvania		567		7
Alliance Financial Corp.		150		7
American National Bankshares, Inc.		2,719		55
Ameris Bancorp*		827		10
Ames National Corp.		2,691		59
Arrow Financial Corp.		2,838		71
Banco Latinoamericano de Comercio Exterior S.A., Class E		3,734		81
Bancorp (The), Inc.*		1,480		16
BancorpSouth, Inc.		10,536		153
Bank of Kentucky Financial Corp.		1,025		25
Bank of Marin Bancorp		430		16
Bank of South Carolina Corp.		200		2
Bank of the Ozarks, Inc.		2,961		99
Banner Corp.		193		6
Bar Harbor Bankshares		1,851		62
BBCN Bancorp, Inc.		941		11
BCB Bancorp, Inc.		665		6
Berkshire Bancorp, Inc.		321		3
Boston Private Financial Holdings, Inc.		2,708		24
Bryn Mawr Bank Corp.		3,324		74
Camden National Corp.		832		28
Capital City Bank Group, Inc.*		4,080		46
Cardinal Financial Corp.		1,202		20
Cass Information Systems, Inc.		183		8
Cathay General Bancorp		7,885		154
Center Bancorp, Inc.		5,717		66
Centerstate Banks, Inc.		671		6
Century Bancorp, Inc., Class A		2,620		86
Chemical Financial Corp.		4,682		111
Citizens & Northern Corp.		688		13
City Holding Co.		2,720		95
CoBiz Financial, Inc.		1,644		12
Columbia Banking System, Inc.		3,382		61
Commercial National Financial Corp.		121		2
Community Bank System, Inc.		3,236		89
Community Trust Bancorp, Inc.		2,557		84
CVB Financial Corp.		13,772		143
Eagle Bancorp, Inc.*		4,080		81
Enterprise Bancorp, Inc.		657		11
Enterprise Financial Services Corp.		803		11
Farmers Capital Bank Corp.*		663		8
Fidelity Southern Corp.		1,735		17
Financial Institutions, Inc.		3,794		71
First Bancorp		1,578		20
First Bancorp, Inc.		3,247		53
First Busey Corp.		15,652		73
First Citizens BancShares, Inc., Class A		372		61
First Community Bancshares, Inc.		4,626		74
First Financial Bancorp		7,296		107
First Financial Bankshares, Inc.		3,052		119
First Financial Corp.		2,863		87
First Horizon National Corp. - (Fractional Shares)*		38,609		—
First Merchants Corp.		1,221		18
First Midwest Bancorp, Inc.		7,990		100
First of Long Island (The) Corp.		2,638		75
First South Bancorp, Inc.*		522		3
FirstMerit Corp.		12,611		179
FNB Corp.		14,475		154
German American Bancorp, Inc.		411		9
Glacier Bancorp, Inc.		8,017		118
Great Southern Bancorp, Inc.		5,851		149
Guaranty Bancorp*		4,886		10
Hancock Holding Co.		7,751		246
Hanmi Financial Corp.*		151		2
Hawthorn Bancshares, Inc.		611		5
Heartland Financial USA, Inc.		663		17
Heritage Financial Corp.		657		10
Home BancShares, Inc.		372		12
Hudson Valley Holding Corp.		186		3
Iberiabank Corp.		3,411		168
Independent Bank Corp.		3,525		102
International Bancshares Corp.		5,441		98
Jeffersonville Bancorp		214		2
Lakeland Bancorp, Inc.		7,490		76
Lakeland Financial Corp.		1,080		28
MainSource Financial Group, Inc.		1,204		15
MB Financial, Inc.		6,237		123
Merchants Bancshares, Inc.		2,461		66
Metro Bancorp, Inc.*		814		11
Middleburg Financial Corp.		2,590		46
MidSouth Bancorp, Inc.		798		13
MidWestOne Financial Group, Inc.		525		11

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Banks - 5.3% continued
National Bankshares, Inc.		1,900	$	62
National Penn Bancshares, Inc.		15,172		141
NBT Bancorp, Inc.		4,871		99
Northrim BanCorp, Inc.		3,051		69
Norwood Financial Corp.		2,047		61
Ohio Valley Banc Corp.		758		14
Old National Bancorp		9,483		113
Oriental Financial Group, Inc.		7,671		102
Orrstown Financial Services, Inc.*		1,758		17
Pacific Continental Corp.		814		8
PacWest Bancorp		4,845		120
Park National Corp.		2,051		133
Peapack Gladstone Financial Corp.		671		9
Peoples Bancorp, Inc.		832		17
Peoples Financial Corp.		421		4
Pinnacle Financial Partners, Inc.*		4,626		87
Popular, Inc.*		10,937		227
Porter Bancorp, Inc.*		723		1
Premier Financial Bancorp, Inc.		951		10
PrivateBancorp, Inc.		5,012		77
Prosperity Bancshares, Inc.		5,559		233
QCR Holdings, Inc.		716		10
Renasant Corp.		2,163		41
Republic Bancorp, Inc., Class A		1,964		42
Republic First Bancorp, Inc.*		1,490		3
S&T Bancorp, Inc.		4,885		88
S.Y. Bancorp, Inc.		2,809		63
Sandy Spring Bancorp, Inc.		4,070		79
SCBT Financial Corp.		4,201		169
Seacoast Banking Corp. of Florida*		4,325		7
Shore Bancshares, Inc.		832		4
Sierra Bancorp		832		10
Signature Bank*		4,664		333
Simmons First National Corp., Class A		2,728		69
Southern National Bancorp of Virginia, Inc.		712		6
Southside Bancshares, Inc.		3,005		63
Southwest Bancorp, Inc.*		827		9
StellarOne Corp.		1,236		17
Sterling Bancorp		942		9
Sterling Financial Corp.		3,636		76
Suffolk Bancorp*		665		9
Sun Bancorp, Inc.*		1,750		6
Susquehanna Bancshares, Inc.		19,743		207
SVB Financial Group*		4,614		258
Synovus Financial Corp.		79,816		196
Texas Capital Bancshares, Inc.*		4,704		211
Tompkins Financial Corp.		2,525		100
TowneBank		1,547		24
Trico Bancshares		3,113		52
TrustCo Bank Corp. NY		9,086		48
Trustmark Corp.		6,523		147
UMB Financial Corp.		4,886		214
Umpqua Holdings Corp.		14,521		171
Union First Market Bankshares Corp.		832		13
United Bancorp, Inc.		665		4
United Bankshares, Inc.		5,701		139
United Community Bancorp		1,021		6
United Community Banks, Inc.*		5,944		56
Univest Corp. of Pennsylvania		554		9
Valley National Bancorp		696		6
ViewPoint Financial Group, Inc.		1,770		37
Washington Banking Co.		657		9
Washington Trust Bancorp, Inc.		3,652		96
Webster Financial Corp.		6,384		131
WesBanco, Inc.		2,578		57
West Bancorporation, Inc.		1,095		12
Westamerica Bancorporation		3,391		144
Western Alliance Bancorp*		1,743		18
Wilshire Bancorp, Inc.*		693		4
Wintrust Financial Corp.		2,858		105
Yadkin Valley Financial Corp.*		2,176		6
				9,796
Beverages - 0.2%
Boston Beer (The) Co., Inc., Class A*		832		112
Central European Distribution Corp.*		9,231		20
Coca-Cola Bottling Co. Consolidated		1,745		116
Craft Brew Alliance, Inc.*		7,645		50
Farmer Bros. Co.*		6,889		99
National Beverage Corp.		3,106		45
				442
Biotechnology - 1.8%
Acorda Therapeutics, Inc.*		6,615		164
Aegerion Pharmaceuticals, Inc.*		2,517		64
Affymax, Inc.*		1,783		34
Arena Pharmaceuticals, Inc.*		5,157		47
Ariad Pharmaceuticals, Inc.*		20,564		394
Arqule, Inc.*		2,150		6

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Biotechnology - 1.8% continued
Astex Pharmaceuticals*		1,890	$	5
BioCryst Pharmaceuticals, Inc.*		1,097		2
Biota Pharmaceuticals, Inc.		992		4
Cambrex Corp.*		21,932		250
Celldex Therapeutics, Inc.*		7,623		51
Charles River Laboratories International, Inc.*		6,899		259
Chelsea Therapeutics International Ltd.*		2,431		2
Cubist Pharmaceuticals, Inc.*		7,970		335
Curis, Inc.*		2,168		7
Cytokinetics, Inc.*		3,516		2
Emergent Biosolutions, Inc.*		3,516		56
Enzo Biochem, Inc.*		1,638		4
Enzon Pharmaceuticals, Inc.		13,696		61
Exelixis, Inc.*		14,397		66
Geron Corp.*		7,865		11
GTx, Inc.*		1,780		7
Harvard Bioscience, Inc.*		2,297		10
Idera Pharmaceuticals, Inc.*		1,758		2
Immunogen, Inc.*		5,542		71
Immunomedics, Inc.*		17,772		52
Incyte Corp. Ltd.*		10,190		169
InterMune, Inc.*		6,630		64
Lexicon Pharmaceuticals, Inc.*		2,047		5
Ligand Pharmaceuticals, Inc., Class B*		3,623		75
Maxygen, Inc.		3,129		8
Medicines (The) Co.*		8,366		201
Momenta Pharmaceuticals, Inc.*		5,713		67
Myriad Genetics, Inc.*		2,331		64
Nanosphere, Inc.*		1,900		5
Novavax, Inc.*		2,970		6
NPS Pharmaceuticals, Inc.*		8,446		77
OncoGenex Pharmaceutical, Inc.*		5,496		72
PDL BioPharma, Inc.		21,339		150
Protalix BioTherapeutics, Inc.*		14,345		74
Repligen Corp.*		4,118		26
RTI Biologics, Inc.*		4,208		18
Sangamo Biosciences, Inc.*		3,803		23
Seattle Genetics, Inc.*		8,266		192
Sequenom, Inc.*		4,903		23
Spectrum Pharmaceuticals, Inc.		8,005		90
Vical, Inc.*		2,180		6
				3,381
Building Materials - 1.3%
AAON, Inc.		4,016		84
Apogee Enterprises, Inc.		7,262		174
Builders FirstSource, Inc.*		2,171		12
Comfort Systems USA, Inc.		7,176		87
Drew Industries, Inc.		6,385		206
Eagle Materials, Inc.		7,527		440
Gibraltar Industries, Inc.*		1,648		26
Griffon Corp.		6,914		79
Headwaters, Inc.*		4,903		42
Louisiana-Pacific Corp.*		19,595		378
LSI Industries, Inc.		1,228		9
NCI Building Systems, Inc.*		271		4
Nortek, Inc.*		100		7
Quanex Building Products Corp.		4,304		88
Simpson Manufacturing Co., Inc.		4,903		161
Texas Industries, Inc.*		4,195		214
Trex Co., Inc.*		3,531		131
Universal Forest Products, Inc.		3,252		124
USG Corp.*		7,272		204
				2,470
Chemicals - 1.9%
A. Schulman, Inc.		5,305		153
Aceto Corp.		15,563		156
American Vanguard Corp.		4,028		125
Balchem Corp.		2,313		84
Chemtura Corp.*		13,054		278
Codexis, Inc.*		556		1
Eastman Chemical Co.		780		53
Ferro Corp.*		16,374		68
Georgia Gulf Corp.		4,737		196
H.B. Fuller Co.		7,193		250
Hawkins, Inc.		2,627		102
Innophos Holdings, Inc.		3,574		166
Innospec, Inc.		5,960		206
Intrepid Potash, Inc.		7,400		158
KMG Chemicals, Inc.		2,590		46
Kraton Performance Polymers, Inc.*		2,610		63
Landec Corp.*		1,615		15
Minerals Technologies, Inc.		4,372		175
Oil-Dri Corp. of America		285		8
Olin Corp.		8,292		179
OM Group, Inc.*		3,239		72
OMNOVA Solutions, Inc.*		4,626		32
PolyOne Corp.		10,455		213

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Chemicals - 1.9% continued
Quaker Chemical Corp.		3,657	$	197
Sensient Technologies Corp.		6,849		244
Spartech Corp.*		3,135		28
Stepan Co.		4,084		227
Zep, Inc.		3,913		56
Zoltek Cos., Inc.*		2,555		20
				3,571
Coal - 0.3%
Arch Coal, Inc.		28,800		211
Cloud Peak Energy, Inc.*		7,272		140
James River Coal Co.*		3,676		12
Patriot Coal Corp.*		13,520		1
SunCoke Energy, Inc.*		9,600		150
Westmoreland Coal Co.*		689		6
				520
Commercial Services - 5.7%
Aaron’s, Inc.		1,212		34
ABM Industries, Inc.		5,542		111
Acacia Research Corp.*		5,128		132
Accretive Health, Inc.*		2,610		30
Advisory Board (The) Co.*		5,678		266
Albany Molecular Research, Inc.*		2,987		16
American Public Education, Inc.*		3,252		117
American Reprographics Co.*		3,139		8
Arbitron, Inc.		4,627		216
Ascent Capital Group, Inc., Class A*		2,490		154
AVEO Pharmaceuticals, Inc.*		3,543		28
Barrett Business Services, Inc.		832		32
Bridgepoint Education, Inc.*		2,983		31
Brink’s (The) Co.		5,128		146
Capella Education Co.*		1,351		38
Cardtronics, Inc.*		5,151		122
Career Education Corp.*		6,993		25
CBIZ, Inc.*		9,230		55
CDI Corp.		1,559		27
Cenveo, Inc.*		3,537		10
Chemed Corp.		4,052		278
Collectors Universe		3,729		37
Consolidated Graphics, Inc.*		1,855		65
Convergys Corp.		15,353		252
CoreLogic, Inc.*		12,214		329
Corinthian Colleges, Inc.*		6,902		17
Corporate Executive Board (The) Co.		3,899		185
Corvel Corp.*		2,594		116
CoStar Group, Inc.*		4,018		359
CPI Corp.*		4,128		—
CRA International, Inc.*		3,136		62
Cross Country Healthcare, Inc.*		2,693		13
Deluxe Corp.		5,959		192
Electro Rent Corp.		6,278		97
Ennis, Inc.		5,021		78
Euronet Worldwide, Inc.*		7,739		183
ExlService Holdings, Inc.*		4,347		115
Forrester Research, Inc.		4,470		120
Franklin Covey Co.*		1,076		14
FTI Consulting, Inc.*		5,035		166
Geo Group (The), Inc.		11,426		322
Global Cash Access Holdings, Inc.*		5,013		39
Great Lakes Dredge & Dock Corp.		3,918		35
H&E Equipment Services, Inc.		2,285		34
Hackett Group (The), Inc.		2,585		11
Healthcare Services Group, Inc.		9,100		211
Heartland Payment Systems, Inc.		5,097		150
Hill International, Inc.*		1,354		5
HMS Holdings Corp.*		10,142		263
Huron Consulting Group, Inc.*		2,952		99
ICF International, Inc.*		1,386		32
Information Services Group, Inc.*		2,979		3
Insperity, Inc.		4,236		138
Intersections, Inc.		1,238		12
ITT Educational Services, Inc.*		3,449		60
K12, Inc.*		3,345		68
Kelly Services, Inc., Class A		5,273		83
Kforce, Inc.		5,830		84
Korn/Ferry International*		5,594		89
Landauer, Inc.		1,643		101
Learning Tree International, Inc.*		663		4
Live Nation Entertainment, Inc.*		15,684		146
Mac-Gray Corp.		938		12
Matthews International Corp., Class A		4,590		147
MAXIMUS, Inc.		7,349		465
McGrath RentCorp		4,359		126
Medifast, Inc.*		554		15
MoneyGram International, Inc.*		234		3
Monro Muffler Brake, Inc.		4,196		147
Monster Worldwide, Inc.*		12,308		69
Multi-Color Corp.		3,073		74

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Commercial Services - 5.7% continued
National Research Corp.		2,630	$	143
Navigant Consulting, Inc.*		7,340		82
Net 1 UEPS Technologies, Inc.*		6,662		34
Odyssey Marine Exploration, Inc.*		3,782		11
On Assignment, Inc.*		1,217		25
PAREXEL International Corp.*		8,446		250
PDI, Inc.*		1,116		8
Pendrell Corp.*		40,851		52
PHH Corp.*		7,199		164
Providence Service (The) Corp.*		5,881		100
QC Holdings, Inc.		1,359		4
Rent-A-Center, Inc.		7,312		251
Resources Connection, Inc.		6,635		79
Sotheby’s		7,783		262
Standard Parking Corp.*		4,892		108
StarTek, Inc.*		1,080		4
Steiner Leisure Ltd.*		1,498		72
Stewart Enterprises, Inc., Class A		11,450		87
Strayer Education, Inc.		1,585		89
Team, Inc.*		3,511		134
TeleTech Holdings, Inc.*		7,326		130
TNS, Inc.*		2,699		56
TrueBlue, Inc.*		5,035		79
Universal Technical Institute, Inc.		1,645		16
Valassis Communications, Inc.		6,223		160
Viad Corp.		4,623		126
VistaPrint N.V.*		4,781		157
Volt Information Sciences, Inc.*		2,331		15
WEX, Inc.*		6,662		502
				10,523
Computers - 2.1%
3D Systems Corp.*		4,548		243
Agilysys, Inc.*		9,102		76
Astro-Med, Inc.		863		9
CACI International, Inc., Class A*		3,889		214
CIBER, Inc.*		6,513		22
Cogo Group, Inc.*		10,955		24
Computer Services, Inc.		2,424		69
Computer Task Group, Inc.*		3,597		66
Cray, Inc.*		1,359		22
Datalink Corp.*		1,503		13
Digimarc Corp.		2,590		54
Dynamics Research Corp.*		832		5
iGATE Corp.*		2,859		45
Imation Corp.*		2,848		13
Immersion Corp.*		2,174		15
Insight Enterprises, Inc.*		7,605		132
j2 Global, Inc.		5,702		174
Jack Henry & Associates, Inc.		10,099		396
Lexmark International, Inc., Class A		9,400		218
LivePerson, Inc.*		7,428		98
Manhattan Associates, Inc.*		3,945		238
Mattersight Corp.*		1,758		9
Mentor Graphics Corp.*		11,612		198
Mercury Systems, Inc.*		2,285		21
MTS Systems Corp.		4,320		220
Netscout Systems, Inc.*		6,786		176
PAR Technology Corp.*		4,019		20
Quantum Corp.*		15,730		19
Radisys Corp.*		949		3
Rimage Corp.		412		3
Riverbed Technology, Inc.*		1,206		24
Silicon Graphics International Corp.*		1,751		18
Spansion, Inc., Class A*		4,195		58
STEC, Inc.*		4,348		21
Stratasys Ltd.*		3,587		287
Super Micro Computer, Inc.*		5,039		51
Sykes Enterprises, Inc.*		5,164		79
Synaptics, Inc.*		5,008		150
Syntel, Inc.		4,333		232
Transact Technologies, Inc.		951		7
Unisys Corp.*		4,615		80
Virtusa Corp.*		940		15
				3,837
Cosmetics/Personal Care - 0.2%
Elizabeth Arden, Inc.*		3,943		178
Inter Parfums, Inc.		5,096		99
Revlon, Inc., Class A*		554		8
				285
Distribution/Wholesale - 1.1%
Beacon Roofing Supply, Inc.*		7,187		239
BlueLinx Holdings, Inc.*		2,586		7
Core-Mark Holding Co., Inc.		1,023		49
Houston Wire & Cable Co.		2,044		25
MWI Veterinary Supply, Inc.*		2,007		221
Owens & Minor, Inc.		8,397		239
Pool Corp.		6,791		287

EQUITY FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Distribution/Wholesale - 1.1% continued
Rentrak Corp.*		2,707	$	53
ScanSource, Inc.*		4,903		156
School Specialty, Inc.*		3,802		4
Titan Machinery, Inc.*		832		21
United Stationers, Inc.		7,364		228
Watsco, Inc.		3,819		286
WESCO International, Inc.*		1,990		134
				1,949
Diversified Financial Services - 2.3%
Aircastle Ltd.		4,604		58
Arlington Asset Investment Corp., Class A		554		11
Asset Acceptance Capital Corp.*		1,082		5
Atlanticus Holdings Corp.*		2,864		10
BGC Partners, Inc., Class A		2,030		7
Calamos Asset Management, Inc., Class A		1,913		20
California First National Bancorp		1,506		23
Cohen & Steers, Inc.		3,159		96
Credit Acceptance Corp.*		3,242		330
DFC Global Corp.*		5,062		94
Diamond Hill Investment Group, Inc.		277		19
Doral Financial Corp.*		2,441		2
Duff & Phelps Corp., Class A		4,347		68
Encore Capital Group, Inc.*		4,471		137
Epoch Holding Corp.		2,781		78
Evercore Partners, Inc., Class A		2,435		73
FBR & Co.*		4,622		18
Financial Engines, Inc.*		2,797		78
First Marblehead (The) Corp.*		1,639		1
GAMCO Investors, Inc., Class A		2,567		136
GFI Group, Inc.		10,594		34
Gleacher & Co., Inc.*		2,171		2
Higher One Holdings, Inc.*		5,408		57
Institutional Financial Markets, Inc.		894		1
Interactive Brokers Group, Inc., Class A		7,896		108
INTL. FCStone, Inc.*		4,185		73
Investment Technology Group, Inc.*		9,852		89
Janus Capital Group, Inc.		21,912		187
JMP Group, Inc.		944		6
KBW, Inc.		4,195		64
MarketAxess Holdings, Inc.		4,876		172
MicroFinancial, Inc.		2,182		16
National Financial Partners Corp.*		6,902		118
Nelnet, Inc., Class A		6,123		182
NewStar Financial, Inc.*		1,744		24
Ocwen Financial Corp.*		13,184		456
Penson Worldwide, Inc.*		2,187		—
Piper Jaffray Cos.*		2,691		86
Portfolio Recovery Associates, Inc.*		1,606		172
Pzena Investment Management, Inc., Class A		4,321		23
SeaCube Container Leasing Ltd.		3,170		60
Siebert Financial Corp.*		858		1
Stifel Financial Corp.*		5,916		189
SWS Group, Inc.*		2,590		14
U.S. Global Investors, Inc., Class A		1,202		5
Virtus Investment Partners, Inc.*		2,556		309
Walter Investment Management Corp.*		6,208		267
Westwood Holdings Group, Inc.		522		21
World Acceptance Corp.*		3,239		241
				4,241
Electric - 2.0%
ALLETE, Inc.		5,101		209
Avista Corp.		9,471		228
Black Hills Corp.		5,845		212
CH Energy Group, Inc.		2,331		152
Cleco Corp.		8,527		341
El Paso Electric Co.		6,761		216
Empire District Electric (The) Co.		5,545		113
IDACORP, Inc.		7,890		342
MGE Energy, Inc.		2,827		144
NorthWestern Corp.		4,903		170
NRG Energy, Inc.		14,310		329
Ormat Technologies, Inc.		1,491		29
Otter Tail Corp.		4,195		105
Pike Electric Corp.		2,174		21
PNM Resources, Inc.		10,290		211
Portland General Electric Co.		11,515		315
UIL Holdings Corp.		7,366		264
Unitil Corp.		3,648		95
UNS Energy Corp.		6,042		256
				3,752
Electrical Components & Equipment - 1.1%
Acuity Brands, Inc.		5,870		398
Advanced Energy Industries, Inc.*		9,510		131
American Superconductor Corp.*		4,070		11
Belden, Inc.		5,683		256
Encore Wire Corp.		1,471		45
EnerSys, Inc.*		5,949		224

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Electrical Components & Equipment - 1.1% continued
Generac Holdings, Inc.		2,797	$	96
General Cable Corp.*		7,086		215
GrafTech International Ltd.*		4,373		41
Graham Corp.		2,421		47
Insteel Industries, Inc.		1,900		24
Littelfuse, Inc.		2,308		142
Orion Energy Systems, Inc.*		1,350		2
Powell Industries, Inc.*		2,881		120
Power-One, Inc.*		5,683		23
PowerSecure International, Inc.*		1,480		12
SL Industries, Inc.		839		15
SunPower Corp.*		7,256		41
Ultralife Corp.*		2,321		7
Universal Display Corp.*		3,794		97
Vicor Corp.*		2,566		14
				1,961
Electronics - 2.6%
American Science & Engineering, Inc.		1,960		128
Analogic Corp.		2,439		181
Badger Meter, Inc.		3,510		166
Bel Fuse, Inc., Class B		1,614		32
Benchmark Electronics, Inc.*		6,499		108
Brady Corp., Class A		5,972		199
Checkpoint Systems, Inc.*		6,369		68
Coherent, Inc.		3,449		175
CTS Corp.		7,065		75
CyberOptics Corp.*		4,153		31
Cymer, Inc.*		3,516		318
Daktronics, Inc.		3,656		40
Electro Scientific Industries, Inc.		5,947		59
ESCO Technologies, Inc.		3,532		132
FARO Technologies, Inc.*		2,144		76
FEI Co.		5,282		293
Identive Group, Inc.*		3,378		5
II-VI, Inc.*		6,271		115
Image Sensing Systems, Inc.*		800		4
InvenSense, Inc.*		9,790		109
Itron, Inc.*		4,561		203
LGL Group (The), Inc.*		4,137		22
Measurement Specialties, Inc.*		3,113		107
MEMSIC, Inc.*		2,294		8
Mesa Laboratories, Inc.		1,769		89
Methode Electronics, Inc.		7,609		76
MOCON, Inc.		6,720		97
Multi-Fineline Electronix, Inc.*		3,570		72
Newport Corp.*		6,917		93
NVE Corp.*		1,530		85
OSI Systems, Inc.*		2,704		173
Park Electrochemical Corp.		3,087		79
Plexus Corp.*		4,745		122
Pulse Electronics Corp.*		2,191		1
Rofin-Sinar Technologies, Inc.*		5,165		112
Rogers Corp.*		3,400		169
Sanmina Corp.*		5,967		66
Sparton Corp.*		952		13
Stoneridge, Inc.*		1,103		6
Taser International, Inc.*		4,063		36
Transcat, Inc.*		283		2
TTM Technologies, Inc.*		9,466		87
Viasystems Group, Inc.*		3,543		43
Vishay Intertechnology, Inc.*		17,806		189
Vishay Precision Group, Inc.*		265		4
Watts Water Technologies, Inc., Class A		4,455		192
Woodward, Inc.		7,865		300
Zygo Corp.*		1,202		19
				4,779
Energy - Alternate Sources - 0.1%
Clean Energy Fuels Corp.*		5,072		63
Green Plains Renewable Energy, Inc.*		663		5
Plug Power, Inc.*		14,452		7
REX American Resources Corp.*		5,573		108
				183
Engineering & Construction - 1.1%
Aegion Corp.*		3,815		85
Argan, Inc.		6,182		111
Dycom Industries, Inc.*		7,139		141
EMCOR Group, Inc.		9,335		323
ENGlobal Corp.*		2,849		2
Exponent, Inc.*		3,126		175
Granite Construction, Inc.		7,031		236
Integrated Electrical Services, Inc.*		1,638		8
Layne Christensen Co.*		3,503		85
MasTec, Inc.*		7,875		196
Michael Baker Corp.		4,073		102
MYR Group, Inc.*		2,405		54
National Technical Systems, Inc.*		7,075		54
Orion Marine Group, Inc.*		1,217		9

EQUITY FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Engineering & Construction - 1.1% continued
Shaw Group (The), Inc.*		8,800	$	410
Sterling Construction Co., Inc.*		554		5
VSE Corp.		1,611		39
				2,035
Entertainment - 1.1%
Bluegreen Corp.*		1,625		15
Carmike Cinemas, Inc.*		1,105		17
Churchill Downs, Inc.		2,305		153
Cinemark Holdings, Inc.		11,417		297
Dover Downs Gaming & Entertainment, Inc.		1,777		4
DreamWorks Animation SKG, Inc., Class A*		9,324		155
International Speedway Corp., Class A		4,755		131
Isle of Capri Casinos, Inc.*		9,582		54
Lakes Entertainment, Inc.*		3,801		11
Madison Square Garden (The) Co., Class A*		2,983		132
Multimedia Games Holding Co., Inc.*		1,638		24
National CineMedia, Inc.		4,895		69
Pinnacle Entertainment, Inc.*		6,270		99
Reading International, Inc., Class A*		1,223		7
Rick’s Cabaret International, Inc.*		6,433		52
Scientific Games Corp., Class A*		8,648		75
SHFL Entertainment, Inc.*		4,177		61
Six Flags Entertainment Corp.		6,154		377
Speedway Motorsports, Inc.		2,315		41
Vail Resorts, Inc.		4,173		226
				2,000
Environmental Control - 0.5%
Calgon Carbon Corp.*		8,913		126
Darling International, Inc.*		16,515		265
EnergySolutions, Inc.*		3,411		11
Fuel Tech, Inc.*		1,364		6
Heritage-Crystal Clean, Inc.*		665		10
Metalico, Inc.*		1,362		3
Met-Pro Corp.		832		8
Mine Safety Appliances Co.		3,781		161
Perma-Fix Environmental Services*		3,943		3
Sharps Compliance Corp.*		2,237		5
Tetra Tech, Inc.*		7,987		211
TRC Cos., Inc.*		2,048		12
US Ecology, Inc.		4,513		106
				927
Food - 2.0%
Amcon Distributing Co.		515		33
Arden Group, Inc., Class A		1,151		104
B&G Foods, Inc.		9,174		260
Bridgford Foods Corp.		542		4
Calavo Growers, Inc.		554		14
Cal-Maine Foods, Inc.		2,968		119
Chiquita Brands International, Inc.*		6,510		54
Dean Foods Co.*		2,051		34
Diamond Foods, Inc.		3,085		42
Feihe International, Inc.*		277		2
Fresh Del Monte Produce, Inc.		5,035		133
Fresh Market (The), Inc.*		3,729		179
Golden Enterprises, Inc.		624		2
Hain Celestial Group (The), Inc.*		5,572		302
Harris Teeter Supermarkets, Inc.		6,910		266
Ingles Markets, Inc., Class A		3,934		68
J&J Snack Foods Corp.		3,118		199
Lancaster Colony Corp.		2,572		178
Lifeway Foods, Inc.		277		2
Nash Finch Co.		3,252		69
Sanderson Farms, Inc.		2,838		135
Seaboard Corp.		63		159
Seneca Foods Corp., Class A*		277		8
Smart Balance, Inc.*		1,610		21
Snyders-Lance, Inc.		6,360		153
Spartan Stores, Inc.		2,427		37
SUPERVALU, Inc.		28,345		70
Tootsie Roll Industries, Inc.		5,464		142
TreeHouse Foods, Inc.*		4,603		240
United Natural Foods, Inc.*		6,867		368
Village Super Market, Inc., Class A		1,364		45
Weis Markets, Inc.		3,663		144
				3,586
Forest Products & Paper - 0.7%
Boise, Inc.		12,538		100
Buckeye Technologies, Inc.		6,274		180
Clearwater Paper Corp.*		3,274		128
Deltic Timber Corp.		932		66
KapStone Paper and Packaging Corp.		1,063		24
Neenah Paper, Inc.		6,550		187
Orchids Paper Products Co.		554		11
P.H. Glatfelter Co.		9,386		164
Resolute Forest Products*		4,941		65
Schweitzer-Mauduit International, Inc.		6,258		244

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Forest Products & Paper - 0.7% continued
Wausau Paper Corp.		3,932	$	34
				1,203
Gas - 1.0%
Chesapeake Utilities Corp.		3,056		139
Delta Natural Gas Co., Inc.		284		6
Laclede Group (The), Inc.		2,787		108
New Jersey Resources Corp.		5,711		226
Northwest Natural Gas Co.		4,423		195
Piedmont Natural Gas Co., Inc.		8,969		281
RGC Resources, Inc.		643		12
South Jersey Industries, Inc.		4,077		205
Southwest Gas Corp.		6,870		291
WGL Holdings, Inc.		7,414		291
				1,754
Hand/Machine Tools - 0.1%
Franklin Electric Co., Inc.		3,393		211
Healthcare - Products - 3.7%
Abaxis, Inc.		3,396		126
ABIOMED, Inc.*		7,327		99
Accuray, Inc.*		738		5
Affymetrix, Inc.*		6,925		22
Alere, Inc.*		10,800		200
Align Technology, Inc.*		9,712		269
Allied Healthcare Products*		428		1
Alphatec Holdings, Inc.*		1,744		3
AngioDynamics, Inc.*		3,263		36
ArthroCare Corp.*		3,170		110
AtriCure, Inc.*		2,466		17
Atrion Corp.		608		119
BioMimetic Therapeutics, Inc.*		5,624		41
Bovie Medical Corp.*		1,560		4
Bruker Corp.*		8,513		130
Cantel Medical Corp.		5,704		170
CardioNet, Inc.*		1,610		4
Cardiovascular Systems, Inc.*		5,962		75
Cepheid, Inc.*		7,869		266
Chindex International, Inc.*		5,273		55
Conceptus, Inc.*		5,281		111
CONMED Corp.		4,626		129
Cooper (The) Cos., Inc.		643		59
CryoLife, Inc.		1,223		8
Cutera, Inc.*		5,310		48
Cyberonics, Inc.*		3,825		201
Cynosure, Inc., Class A*		6,730		162
Daxor Corp.		522		4
DexCom, Inc.*		2,438		33
Digirad Corp.*		2,144		4
Endologix, Inc.*		4,740		67
Exactech, Inc.*		2,172		37
Female Health (The) Co.		1,073		8
Greatbatch, Inc.*		5,090		118
Haemonetics Corp.*		8,584		351
Hanger, Inc.*		5,295		145
Hansen Medical, Inc.*		2,020		4
ICU Medical, Inc.*		3,081		188
Insulet Corp.*		2,176		46
Integra LifeSciences Holdings Corp.*		3,683		143
Invacare Corp.		5,551		90
Iridex Corp.*		200		1
LCA-Vision, Inc.*		7,587		22
Luminex Corp.*		6,097		102
MAKO Surgical Corp.*		676		9
Masimo Corp.		8,098		170
Medical Action Industries, Inc.*		6,784		18
MELA Sciences, Inc.*		1,913		3
Merge Healthcare, Inc.*		2,163		5
Meridian Bioscience, Inc.		5,029		102
Merit Medical Systems, Inc.*		8,086		112
Natus Medical, Inc.*		4,382		49
NuVasive, Inc.*		5,598		87
NxStage Medical, Inc.*		5,160		58
OraSure Technologies, Inc.*		13,034		94
Orthofix International N.V.*		4,635		182
Palomar Medical Technologies, Inc.*		3,051		28
PSS World Medical, Inc.*		7,726		223
Quidel Corp.*		6,517		122
Rochester Medical Corp.*		1,344		14
Rockwell Medical Technologies, Inc.*		1,217		10
Sirona Dental Systems, Inc.*		3,030		195
Span-America Medical Systems, Inc.		392		7
Spectranetics Corp.*		1,573		23
Stereotaxis, Inc.*		248		1
STERIS Corp.		7,709		268
SurModics, Inc.*		2,742		61
Symmetry Medical, Inc.*		3,543		37
Thoratec Corp.*		7,645		287
TranS1, Inc.*		2,286		6

EQUITY FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Healthcare - Products - 3.7% continued
United-Guardian, Inc.		560	$	11
Utah Medical Products, Inc.		2,564		92
Vascular Solutions, Inc.*		5,603		88
Volcano Corp.*		6,773		160
West Pharmaceutical Services, Inc.		5,438		298
Wright Medical Group, Inc.*		4,382		92
Young Innovations, Inc.		2,421		95
				6,840
Healthcare - Services - 2.0%
Addus HomeCare Corp.*		1,212		9
Air Methods Corp.		6,861		253
Alliance HealthCare Services, Inc.*		1,082		7
Almost Family, Inc.		5,230		106
Amedisys, Inc.*		5,080		57
Amsurg Corp.*		5,147		155
Assisted Living Concepts, Inc., Class A		7,657		75
Bio-Reference Labs, Inc.*		6,224		179
Capital Senior Living Corp.*		1,609		30
Centene Corp.*		6,773		278
Emeritus Corp.*		6,206		153
Ensign Group (The), Inc.		2,319		63
Gentiva Health Services, Inc.*		4,086		41
Health Management Associates, Inc., Class A*		34,400		321
HealthSouth Corp.*		9,915		209
IPC The Hospitalist Co., Inc.*		3,242		129
Kindred Healthcare, Inc.*		7,816		85
LHC Group, Inc.*		3,393		72
LifePoint Hospitals, Inc.*		6,500		245
Magellan Health Services, Inc.*		4,885		239
Medcath Corp.(1) *		7,953		—
Molina Healthcare, Inc.*		4,858		132
National Healthcare Corp.		1,460		69
RadNet, Inc.*		32,899		83
Skilled Healthcare Group, Inc., Class A*		15,064		96
Sunrise Senior Living, Inc.*		3,508		50
Triple-S Management Corp., Class B*		3,808		70
U.S. Physical Therapy, Inc.		4,076		112
Universal American Corp.		7,587		65
WellCare Health Plans, Inc.*		5,918		288
				3,671
Holding Companies - Diversified - 0.1%
Compass Diversified Holdings		4,820		71
Harbinger Group, Inc.*		12,836		99
Resource America, Inc., Class A		2,029		13
				183
Home Builders - 0.7%
AMREP Corp.*		6,493		98
Beazer Homes USA, Inc.*		356		6
Brookfield Residential Properties, Inc.*		618		11
Cavco Industries, Inc.*		2,961		148
Hovnanian Enterprises, Inc., Class A*		1,750		12
KB Home		8,407		133
M/I Homes, Inc.*		810		21
MDC Holdings, Inc.		7,179		264
Meritage Homes Corp.*		5,314		198
Nobility Homes, Inc.*		858		4
Ryland Group (The), Inc.		4,903		179
Skyline Corp.*		2,443		10
Thor Industries, Inc.		4,991		187
Winnebago Industries, Inc.*		4,594		79
				1,350
Home Furnishings - 0.5%
American Woodmark Corp.*		3,546		99
DTS, Inc.*		2,011		34
Emerson Radio Corp.*		3,292		6
Ethan Allen Interiors, Inc.		5,408		139
Flexsteel Industries, Inc.		1,402		30
Furniture Brands International, Inc.*		3,243		3
Hooker Furniture Corp.		5,713		83
Kimball International, Inc., Class B		3,671		43
La-Z-Boy, Inc.		8,279		117
Sealy Corp.*		4,622		10
Select Comfort Corp.*		7,235		189
Stanley Furniture Co., Inc.*		1,505		7
TiVo, Inc.*		9,763		120
Universal Electronics, Inc.*		1,081		21
VOXX International Corp.*		1,063		7
				908
Household Products/Wares - 0.3%
ACCO Brands Corp.*		10,998		81
American Greetings Corp., Class A		4,767		81
Blyth, Inc.		2,536		39
Central Garden and Pet Co., Class A*		4,349		45
CSS Industries, Inc.		1,391		30
Helen of Troy Ltd.*		3,146		105
Prestige Brands Holdings, Inc.*		2,849		57

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Household Products/Wares - 0.3% continued
Standard Register (The) Co.		20,498	$	13
WD-40 Co.		3,811		180
				631
Insurance - 3.3%
Alterra Capital Holdings Ltd.		10,938		308
American Equity Investment Life Holding Co.		9,241		113
American Safety Insurance Holdings Ltd.*		6,306		119
AMERISAFE, Inc.*		2,131		58
Amtrust Financial Services, Inc.		4,931		142
Argo Group International Holdings Ltd.		2,161		73
Baldwin & Lyons, Inc., Class B		3,646		87
Citizens, Inc.*		11,848		131
CNO Financial Group, Inc.		27,270		254
Crawford & Co., Class B		16,644		133
Donegal Group, Inc., Class A		1,646		23
Eastern Insurance Holdings, Inc.		1,202		21
eHealth, Inc.*		5,009		138
EMC Insurance Group, Inc.		5,619		134
Employers Holdings, Inc.		6,433		132
Endurance Specialty Holdings Ltd.		5,310		211
FBL Financial Group, Inc., Class A		1,889		65
First Acceptance Corp.*		3,114		4
First American Financial Corp.		11,133		268
GAINSCO, Inc.		714		6
Global Indemnity PLC*		559		12
Greenlight Capital Re Ltd., Class A*		4,200		97
Hallmark Financial Services, Inc.*		940		9
Hanover Insurance Group (The), Inc.		4,755		184
Hilltop Holdings, Inc.*		2,853		39
Horace Mann Educators Corp.		3,912		78
Independence Holding Co.		1,046		10
Infinity Property & Casualty Corp.		466		27
Investors Title Co.		2,022		121
Kansas City Life Insurance Co.		1,895		72
Kemper Corp.		5,408		160
Life Partners Holdings, Inc.		15,996		42
Maiden Holdings Ltd.		264		2
Meadowbrook Insurance Group, Inc.		3,683		21
MGIC Investment Corp.*		21,580		57
Montpelier Re Holdings Ltd.		9,501		217
National Interstate Corp.		3,245		94
National Western Life Insurance Co., Class A		563		89
OneBeacon Insurance Group Ltd., Class A		4,195		58
Phoenix (The) Cos., Inc.*		353		9
Platinum Underwriters Holdings Ltd.		5,003		230
Primerica, Inc.		3,574		107
Primus Guaranty Ltd.*		2,024		18
ProAssurance Corp.		7,708		325
Protective Life Corp.		10,070		288
Radian Group, Inc.		14,359		88
RLI Corp.		3,128		202
Safety Insurance Group, Inc.		2,423		112
SeaBright Holdings, Inc.		1,202		13
Selective Insurance Group, Inc.		5,829		112
StanCorp Financial Group, Inc.		5,314		195
Stewart Information Services Corp.		5,172		135
Symetra Financial Corp.		4,941		64
Tower Group, Inc.		4,486		80
Unico American Corp.		214		3
United Fire Group, Inc.		5,020		110
Universal Insurance Holdings, Inc.		1,637		7
Validus Holdings Ltd.		1,781		62
				5,969
Internet - 1.8%
1-800-Flowers.com, Inc., Class A*		3,508		13
AOL, Inc.*		7,645		226
AsiaInfo-Linkage, Inc.*		8,767		95
Blucora, Inc.*		3,110		49
Blue Nile, Inc.*		3,422		132
BroadSoft, Inc.*		1,678		61
Cogent Communications Group, Inc.		7,712		175
comScore, Inc.*		2,989		41
Crexendo, Inc.		1,588		5
Dealertrack Technologies, Inc.*		7,186		206
ePlus, Inc.		4,070		168
Global Sources Ltd.*		4,222		27
HealthStream, Inc.*		2,890		70
ICG Group, Inc.*		1,476		17
Internap Network Services Corp.*		3,914		27
IPass, Inc.*		1,989		4
Keynote Systems, Inc.		6,770		95
Lionbridge Technologies, Inc.*		2,708		11
Liquidity Services, Inc.*		4,321		177
ModusLink Global Solutions, Inc.*		7,603		22
Move, Inc.*		1,186		9
Move, Inc. - (Fractional Shares)*		25,000		—

EQUITY FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Internet - 1.8% continued
NIC, Inc.		5,274	$	86
Nutrisystem, Inc.		2,868		23
Online Resources Corp.*		1,889		4
OpenTable, Inc.*		1,746		85
Orbitz Worldwide, Inc.*		3,162		9
Overstock.com, Inc.*		832		12
PC-Tel, Inc.		1,358		10
Perficient, Inc.*		3,136		37
RealNetworks, Inc.*		2,944		22
Saba Software, Inc.*		1,350		12
Safeguard Scientifics, Inc.*		3,008		44
Sapient Corp.*		10,292		109
Shutterfly, Inc.*		3,862		115
Sourcefire, Inc.*		4,990		236
Stamps.com, Inc.*		5,028		127
support.com, Inc.*		2,849		12
TeleCommunication Systems, Inc., Class A*		6,107		15
Travelzoo, Inc.*		3,539		67
United Online, Inc.		18,732		105
Unwired Planet, Inc.*		3,125		4
ValueClick, Inc.*		9,921		193
VASCO Data Security International, Inc.*		3,130		26
VirnetX Holding Corp.*		2,704		79
Vocus, Inc.*		2,590		45
Web.com Group, Inc.*		1,902		28
Websense, Inc.*		6,391		96
Zix Corp.*		3,388		9
				3,240
Investment Companies - 0.5%
Apollo Investment Corp.		22,090		185
BlackRock Kelso Capital Corp.		10,855		109
Capital Southwest Corp.		797		79
Gladstone Investment Corp.		1,218		8
Harris & Harris Group, Inc.*		1,480		5
Hercules Technology Growth Capital, Inc.		2,849		32
KCAP Financial, Inc.		1,628		15
MCG Capital Corp.		4,736		22
Medallion Financial Corp.		936		11
NGP Capital Resources Co.		960		7
PennantPark Investment Corp.		1,202		13
Prospect Capital Corp.		9,759		106
Solar Capital Ltd.		2,704		65
Steel Excel, Inc.*		2,778		69
TICC Capital Corp.		1,480		15
Triangle Capital Corp.		3,263		83
				824
Iron/Steel - 0.3%
AK Steel Holding Corp.		11,655		53
Commercial Metals Co.		15,664		233
Great Northern Iron Ore Properties		277		19
Schnitzer Steel Industries, Inc., Class A		2,424		73
Shiloh Industries, Inc.		1,618		17
Universal Stainless & Alloy*		2,719		100
				495
Leisure Time - 0.6%
Ambassadors Group, Inc.		832		4
Arctic Cat, Inc.*		3,543		118
Bowl America, Inc., Class A		560		7
Brunswick Corp.		12,120		353
Callaway Golf Co.		11,136		72
Interval Leisure Group, Inc.		3,229		63
Johnson Outdoors, Inc., Class A*		3,672		73
Life Time Fitness, Inc.*		5,472		269
Marine Products Corp.		2,710		15
Town Sports International Holdings, Inc.		3,268		35
WMS Industries, Inc.*		7,459		131
				1,140
Lodging - 0.3%
Ameristar Casinos, Inc.		7,059		185
Boyd Gaming Corp.*		1,235		8
Marcus Corp.		2,441		31
Monarch Casino & Resort, Inc.*		942		10
Morgans Hotel Group Co.*		8,091		45
Orient-Express Hotels Ltd., Class A*		6,620		77
Red Lion Hotels Corp.*		1,220		10
Ryman Hospitality Properties		4,921		189
				555
Machinery - Construction & Mining - 0.1%
Astec Industries, Inc.		3,263		109
Hyster-Yale Materials Handling, Inc.		2,414		118
				227
Machinery - Diversified - 1.9%
Alamo Group, Inc.		1,114		36
Altra Holdings, Inc.		6,661		147
Applied Industrial Technologies, Inc.		6,529		274
Briggs & Stratton Corp.		6,391		135

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Machinery - Diversified - 1.9% continued
Cascade Corp.		1,919	$	123
Chart Industries, Inc.*		3,409		227
Cognex Corp.		4,195		155
Columbus McKinnon Corp.*		1,341		22
DXP Enterprises, Inc.*		3,723		183
Flow International Corp.*		6,211		22
Global Power Equipment Group, Inc.		4,136		71
Gorman-Rupp (The) Co.		4,011		120
Hollysys Automation Technologies Ltd.*		4,102		49
Hurco Cos., Inc.*		1,080		25
Intermec, Inc.*		7,038		69
iRobot Corp.*		3,438		64
Kadant, Inc.*		800		21
Key Technology, Inc.*		4,860		51
Lindsay Corp.		1,480		119
Manitowoc (The) Co., Inc.		17,554		275
Middleby Corp.*		2,700		346
NACCO Industries, Inc., Class A		1,207		73
Robbins & Myers, Inc.		4,251		253
Sauer-Danfoss, Inc.		2,097		112
Tecumseh Products Co., Class A*		1,236		6
Tennant Co.		2,890		127
Twin Disc, Inc.		2,717		47
Zebra Technologies Corp., Class A*		6,800		267
				3,419
Media - 0.5%
Courier Corp.		9,638		106
Crown Media Holdings, Inc., Class A*		4,197		8
Daily Journal Corp.*		700		65
Digital Generation, Inc.*		3,390		37
Dolan (The) Co.*		832		3
Entercom Communications Corp., Class A*		6,247		44
Fisher Communications, Inc.		524		14
Journal Communications, Inc., Class A*		4,328		23
LIN TV Corp., Class A*		3,658		28
LodgeNet Interactive Corp.*		1,758		—
Martha Stewart Living Omnimedia, Class A*		2,829		7
Meredith Corp.		3,521		121
New York Times (The) Co., Class A*		13,427		115
Nexstar Broadcasting Group, Inc., Class A*		1,900		20
Outdoor Channel Holdings, Inc.		8,322		63
Saga Communications, Inc., Class A		522		24
Scholastic Corp.		3,781		112
Sinclair Broadcast Group, Inc., Class A		5,851		74
Value Line, Inc.		2,839		25
World Wrestling Entertainment, Inc., Class A		7,341		58
				947
Metal Fabrication/Hardware - 1.1%
A.M. Castle & Co.*		5,410		80
Ampco-Pittsburgh Corp.		1,855		37
CIRCOR International, Inc.		2,729		108
Dynamic Materials Corp.		3,280		46
Eastern (The) Co.		4,034		64
Furmanite Corp.*		9,081		49
Haynes International, Inc.		2,529		131
Kaydon Corp.		3,801		91
L.B. Foster Co., Class A		4,499		195
Lawson Products, Inc.		2,523		25
Mueller Industries, Inc.		5,551		278
Mueller Water Products, Inc., Class A		18,167		102
Northwest Pipe Co.*		4,321		103
Olympic Steel, Inc.		2,590		57
Omega Flex, Inc.		555		7
RBC Bearings, Inc.*		4,211		211
RTI International Metals, Inc.*		4,941		136
Sun Hydraulics Corp.		3,449		90
Worthington Industries, Inc.		8,824		229
				2,039
Mining - 0.7%
AMCOL International Corp.		2,421		74
Century Aluminum Co.*		4,382		39
Coeur d’Alene Mines Corp.*		12,121		298
General Moly, Inc.*		3,101		13
Globe Specialty Metals, Inc.		9,697		133
Gold Resource Corp.		4,755		73
Hecla Mining Co.		30,117		176
Horsehead Holding Corp.*		8,828		90
Kaiser Aluminum Corp.		1,753		108
Materion Corp.		1,769		46
McEwen Mining, Inc.*		2,407		9
Stillwater Mining Co.*		14,019		179
United States Lime & Minerals, Inc.*		1,480		70
Uranerz Energy Corp.*		9,067		13
Uranium Energy Corp.*		2,051		5

EQUITY FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Mining - 0.7% continued
USEC, Inc.*		79,734	$	42
				1,368
Miscellaneous Manufacturing - 2.3%
A.O. Smith Corp.		4,881		308
Actuant Corp., Class A		8,708		243
American Railcar Industries, Inc.		3,463		110
AZZ, Inc.		5,418		208
Barnes Group, Inc.		6,233		140
Blount International, Inc.*		5,912		94
Chase Corp.		526		10
CLARCOR, Inc.		6,849		327
Colfax Corp.*		2,592		105
Eastman Kodak Co.*		28,500		5
EnPro Industries, Inc.*		2,313		95
Federal Signal Corp.*		14,051		107
FreightCar America, Inc.		4,186		94
GP Strategies Corp.*		947		20
Harsco Corp.		10,700		251
Hexcel Corp.*		11,809		318
Hillenbrand, Inc.		9,137		207
Koppers Holdings, Inc.		2,160		82
LSB Industries, Inc.*		2,977		105
Metabolix, Inc.*		2,174		3
Movado Group, Inc.		1,774		54
Myers Industries, Inc.		3,540		54
NL Industries, Inc.		3,507		40
PMFG, Inc.*		3,288		30
Polypore International, Inc.*		6,194		288
Raven Industries, Inc.		5,734		151
Smith & Wesson Holding Corp.*		1,496		13
Standex International Corp.		3,033		156
STR Holdings, Inc.*		5,314		13
Sturm Ruger & Co., Inc.		7,168		325
Tredegar Corp.		6,433		131
Trimas Corp.*		3,596		101
				4,188
Office Furnishings - 0.4%
Compx International, Inc.		101		2
Herman Miller, Inc.		5,851		125
HNI Corp.		5,707		172
Interface, Inc.		8,289		133
Knoll, Inc.		7,443		114
Steelcase, Inc., Class A		11,935		152
Virco Manufacturing Corp.*		2,033		5
				703
Oil & Gas - 3.1%
Alon USA Energy, Inc.		3,386		61
Apco Oil and Gas International, Inc.		1,297		16
Approach Resources, Inc.*		3,533		88
ATP Oil & Gas Corp.*		4,866		1
Berry Petroleum Co., Class A		6,369		214
Bill Barrett Corp.*		4,748		85
Callon Petroleum Co.*		6,642		31
Carrizo Oil & Gas, Inc.*		5,352		112
Cheniere Energy, Inc.*		11,754		221
Clayton Williams Energy, Inc.*		1,087		44
Comstock Resources, Inc.*		4,848		73
Contango Oil & Gas Co.		2,180		92
CVR Energy, Inc.*		12,890		629
Delek US Holdings, Inc.		3,523		89
Double Eagle Petroleum Co.*		5,687		22
Endeavour International Corp.*		1,100		6
Energy XXI Bermuda Ltd.		8,671		279
EPL Oil & Gas, Inc.*		4,009		90
Evolution Petroleum Corp.*		7,552		61
FX Energy, Inc.*		7,400		30
GMX Resources, Inc.*		19,683		10
Gran Tierra Energy, Inc.*		40,356		222
Gulfport Energy Corp.*		7,741		296
Halcon Resources Corp.*		5,036		35
Harvest Natural Resources, Inc.*		10,542		96
Hercules Offshore, Inc.*		5,683		35
Houston American Energy Corp.*		1,335		—
Isramco, Inc.*		566		59
Kodiak Oil & Gas Corp.*		28,718		254
Magnum Hunter Resources Corp.*		15,851		63
McMoRan Exploration Co.*		11,282		181
Northern Oil and Gas, Inc.*		8,697		146
Oasis Petroleum, Inc.*		8,391		267
Panhandle Oil and Gas, Inc., Class A		3,629		103
PDC Energy, Inc.*		3,794		126
Penn Virginia Corp.		8,083		36
PetroQuest Energy, Inc.*		10,570		52
PrimeEnergy Corp.*		4,608		106
Quicksilver Resources, Inc.*		13,147		38
Rex Energy Corp.*		5,904		77
Rosetta Resources, Inc.*		6,209		282

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Oil & Gas - 3.1% continued
SandRidge Energy, Inc.*		11,772	$	75
Stone Energy Corp.*		7,258		149
Swift Energy Co.*		5,381		83
Texas Pacific Land Trust		1,480		79
Triangle Petroleum Corp.*		3,861		23
Vaalco Energy, Inc.*		11,811		102
Vanguard Natural Resources LLC		7,056		184
W&T Offshore, Inc.		6,247		100
Warren Resources, Inc.*		2,978		8
Western Refining, Inc.		8,597		242
ZaZa Energy Corp.*		4,371		9
Zion Oil & Gas, Inc.*		1,221		2
				5,784
Oil & Gas Services - 1.8%
Basic Energy Services, Inc.*		6,256		71
Bolt Technology Corp.		6,555		94
Cal Dive International, Inc.*		13,818		24
Dawson Geophysical Co.*		2,976		79
Dril-Quip, Inc.*		5,432		397
Exterran Holdings, Inc.*		12,681		278
Geokinetics, Inc.*		9,456		—
Geospace Technologies Corp.*		2,528		225
Global Geophysical Services, Inc.*		2,722		10
Gulf Island Fabrication, Inc.		2,693		65
Helix Energy Solutions Group, Inc.*		13,450		278
Hornbeck Offshore Services, Inc.*		4,326		149
ION Geophysical Corp.*		21,620		141
Key Energy Services, Inc.*		18,606		129
Lufkin Industries, Inc.		4,546		264
Matrix Service Co.*		4,435		51
Mitcham Industries, Inc.*		3,077		42
Natural Gas Services Group, Inc.*		5,187		85
Newpark Resources, Inc.*		14,512		114
Pioneer Energy Services Corp.*		8,707		63
RPC, Inc.		14,401		176
Superior Energy Services, Inc.*		6,925		144
T.G.C. Industries, Inc.		6,758		55
Targa Resources Corp.		5,035		266
TETRA Technologies, Inc.*		8,951		68
Willbros Group, Inc.*		10,160		54
				3,322
Packaging & Containers - 0.1%
AEP Industries, Inc.*		2,289		136
Graphic Packaging Holding Co.*		10,460		67
				203
Pharmaceuticals - 2.4%
Acura Pharmaceuticals, Inc.*		24,508		54
Akorn, Inc.*		11,357		152
Alimera Sciences, Inc.*		3,791		6
Alkermes PLC*		8,140		151
Allos Therapeutics, Inc.(1) *		7,039		—
Amicus Therapeutics, Inc.*		2,204		6
Anika Therapeutics, Inc.*		1,398		14
Array BioPharma, Inc.*		2,730		10
Auxilium Pharmaceuticals, Inc.*		3,794		70
AVANIR Pharmaceuticals, Inc., Class A*		37,562		99
BioDelivery Sciences International, Inc.*		2,164		9
BioScrip, Inc.*		5,572		60
Biospecifics Technologies Corp.*		277		4
Clovis Oncology, Inc.*		2,097		34
Cumberland Pharmaceuticals, Inc.*		100		—
Cytori Therapeutics, Inc.*		1,102		3
Depomed, Inc.*		1,630		10
Durect Corp.*		3,795		4
Dyax Corp.*		2,589		9
Heska Corp.		3,729		30
Hi-Tech Pharmacal Co., Inc.		2,051		72
Idenix Pharmaceuticals, Inc.*		2,318		11
Impax Laboratories, Inc.*		8,904		182
Infinity Pharmaceuticals, Inc.*		1,341		47
Isis Pharmaceuticals, Inc.*		14,266		149
Jazz Pharmaceuticals PLC*		4,229		225
Lannett Co., Inc.*		1,609		8
MAP Pharmaceuticals, Inc.*		7,772		122
Natural Alternatives International, Inc.*		867		4
Nature’s Sunshine Products, Inc.		7,472		108
Nektar Therapeutics*		8,017		59
Neogen Corp.*		2,299		104
Neurocrine Biosciences, Inc.*		1,918		14
Nutraceutical International Corp.		1,885		31
Obagi Medical Products, Inc.*		7,163		97
Omega Protein Corp.*		1,069		7
Onyx Pharmaceuticals, Inc.*		6,846		517
Opko Health, Inc.*		10,455		50
Optimer Pharmaceuticals, Inc.*		1,642		15
Orexigen Therapeutics, Inc.*		40,037		211
Osiris Therapeutics, Inc.*		2,590		23

EQUITY FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Pharmaceuticals - 2.4% continued
Pain Therapeutics, Inc.*		4,335	$	12
Pharmacyclics, Inc.*		7,300		423
PharMerica Corp.*		7,698		110
Pozen, Inc.*		1,341		7
Progenics Pharmaceuticals, Inc.*		1,504		5
Questcor Pharmaceuticals, Inc.		6,899		184
Salix Pharmaceuticals Ltd.*		7,792		315
Santarus, Inc.*		2,290		25
Sciclone Pharmaceuticals, Inc.*		2,305		10
SIGA Technologies, Inc.*		6,664		18
Sucampo Pharmaceuticals, Inc., Class A*		11,315		56
Synageva BioPharma Corp.*		621		29
Synta Pharmaceuticals Corp.*		1,913		17
Targacept, Inc.*		2,704		12
USANA Health Sciences, Inc.*		1,480		49
Vanda Pharmaceuticals, Inc.*		832		3
ViroPharma, Inc.*		11,592		264
				4,320
Pipelines - 0.2%
Crosstex Energy, Inc.		3,525		50
Niska Gas Storage Partners LLC, Class U		8,112		88
SemGroup Corp., Class A*		5,874		230
				368
Real Estate - 0.3%
Alexander & Baldwin, Inc.*		5,830		171
American Realty Investors, Inc.*		665		2
AV Homes, Inc.*		6,532		93
Consolidated-Tomoka Land Co.		1,887		59
Forestar Group, Inc.*		7,008		121
Kennedy-Wilson Holdings, Inc.		2,162		30
St. Joe (The) Co.*		6,713		155
Stratus Properties, Inc.*		214		2
Trinity Place Holdings, Inc.*		1,013		5
				638
Real Estate Investment Trusts - 7.1%
Acadia Realty Trust		5,267		132
Agree Realty Corp.		5,051		135
Alexander’s, Inc.		563		186
American Assets Trust, Inc.		1,707		48
American Realty Capital Trust, Inc.		22,000		254
Anworth Mortgage Asset Corp.		13,427		78
Apollo Commercial Real Estate Finance, Inc.		6,806		110
Arbor Realty Trust, Inc.		3,264		20
ARMOUR Residential REIT, Inc.		18,928		122
Ashford Hospitality Trust, Inc.		17,886		188
Associated Estates Realty Corp.		5,299		85
Brandywine Realty Trust		18,617		227
BRT Realty Trust*		3,541		23
Capital Trust, Inc., Class A		2,797		6
CapLease, Inc.		17,256		96
Capstead Mortgage Corp.		11,855		136
Cedar Realty Trust, Inc.		15,982		84
Chesapeake Lodging Trust		4,102		86
Colonial Properties Trust		11,841		253
Colony Financial, Inc.		6,340		124
CommonWealth REIT		10,548		167
Coresite Realty Corp.		186		5
Cousins Properties, Inc.		11,946		100
CreXus Investment Corp.		3,543		43
CubeSmart		16,109		235
CYS Investments, Inc.		16,162		191
DCT Industrial Trust, Inc.		30,583		199
DiamondRock Hospitality Co.		27,358		246
DuPont Fabros Technology, Inc.		9,883		239
Dynex Capital, Inc.		7,584		72
EastGroup Properties, Inc.		4,470		241
Education Realty Trust, Inc.		14,835		158
EPR Properties		6,305		291
Equity Lifestyle Properties, Inc.		4,274		288
Equity One, Inc.		6,663		140
Excel Trust, Inc.		2,517		32
FelCor Lodging Trust, Inc.*		14,915		70
First Industrial Realty Trust, Inc.*		12,352		174
First Potomac Realty Trust		4,867		60
Franklin Street Properties Corp.		7,739		95
Getty Realty Corp.		4,644		84
Gladstone Commercial Corp.		3,781		68
Glimcher Realty Trust		14,820		164
Gramercy Capital Corp.*		2,428		7
Gyrodyne Co. of America, Inc.		353		25
Healthcare Realty Trust, Inc.		10,951		263
Hersha Hospitality Trust		14,466		72
Highwoods Properties, Inc.		9,669		323
Hudson Pacific Properties, Inc.		740		16
Inland Real Estate Corp.		12,028		101
Invesco Mortgage Capital, Inc.		14,990		295

NORTHERN FUNDS QUARTERLY REPORT    17    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Real Estate Investment Trusts - 7.1% continued
Investors Real Estate Trust		12,587	$	110
iStar Financial, Inc.*		9,644		79
Kite Realty Group Trust		1,919		11
LaSalle Hotel Properties		12,720		323
Lexington Realty Trust		20,233		211
LTC Properties, Inc.		3,405		120
Medical Properties Trust, Inc.		15,060		180
MHI Hospitality Corp.		643		2
Mission West Properties, Inc.		1,085		10
Monmouth Real Estate Investment Corp., Class A		8,132		84
MPG Office Trust, Inc.*		9,039		28
National Health Investors, Inc.		3,270		185
New York Mortgage Trust, Inc.		1,025		6
Newcastle Investment Corp.		14,647		127
NorthStar Realty Finance Corp.		15,722		111
Omega Healthcare Investors, Inc.		15,920		380
One Liberty Properties, Inc.		2,598		53
Parkway Properties, Inc.		8,296		116
Pebblebrook Hotel Trust		6,975		161
Pennsylvania Real Estate Investment Trust		8,798		155
PennyMac Mortgage Investment Trust		6,340		160
PMC Commercial Trust		935		7
Post Properties, Inc.		7,419		371
Potlatch Corp.		5,574		218
PS Business Parks, Inc.		2,322		151
RAIT Financial Trust		20,396		115
Ramco-Gershenson Properties Trust		4,748		63
Redwood Trust, Inc.		8,670		146
Resource Capital Corp.		7,715		43
Retail Opportunity Investments Corp.		10,349		133
Sabra Health Care REIT, Inc.		5,027		109
Saul Centers, Inc.		2,402		103
Sovran Self Storage, Inc.		4,475		278
Starwood Property Trust, Inc.		16,151		371
Strategic Hotels & Resorts, Inc.*		24,367		156
Sun Communities, Inc.		5,685		227
Sunstone Hotel Investors, Inc.*		18,182		195
Terreno Realty Corp.		3,170		49
Two Harbors Investment Corp.		29,735		329
UMH Properties, Inc.		2,231		23
Universal Health Realty Income Trust		1,367		69
Urstadt Biddle Properties, Inc., Class A		3,660		72
Washington Real Estate Investment Trust		10,276		269
Whitestone REIT		1,864		26
Winthrop Realty Trust		8,989		99
				13,091
Retail - 5.9%
Aeropostale, Inc.*		9,231		120
AFC Enterprises, Inc.*		3,856		101
ALCO Stores, Inc.*		800		7
America’s Car-Mart, Inc.*		2,580		105
ANN, Inc.*		1,456		49
Asbury Automotive Group, Inc.*		5,297		170
Big 5 Sporting Goods Corp.		1,909		25
Biglari Holdings, Inc.*		279		109
BJ’s Restaurants, Inc.*		3,144		103
Bob Evans Farms, Inc.		4,409		177
Books-A-Million, Inc.*		2,579		7
Brown Shoe Co., Inc.		7,887		145
Buckle (The), Inc.		3,794		169
Buffalo Wild Wings, Inc.*		2,868		209
Build-A-Bear Workshop, Inc.*		1,894		7
Cabela’s, Inc.*		7,465		312
Carrols Restaurant Group, Inc.*		1,358		8
Casey’s General Stores, Inc.		7,197		382
Cash America International, Inc.		3,809		151
Cato (The) Corp., Class A		3,371		92
CEC Entertainment, Inc.		5,410		180
Cheesecake Factory (The), Inc.		7,601		249
Children’s Place Retail Stores (The), Inc.*		3,794		168
Christopher & Banks Corp.*		2,713		15
Citi Trends, Inc.*		1,202		17
Coinstar, Inc.*		3,540		184
Conn’s, Inc.*		2,704		83
Cracker Barrel Old Country Store, Inc.		2,156		139
Denny’s Corp.*		2,152		10
Destination Maternity Corp.		839		18
DineEquity, Inc.*		1,641		110
Domino’s Pizza, Inc.		7,062		308
Einstein Noah Restaurant Group, Inc.		3,826		47
Express, Inc.*		12,186		184
Ezcorp, Inc., Class A*		5,874		117
Famous Dave’s Of America, Inc.*		2,317		21
Fiesta Restaurant Group, Inc.*		1,358		21
Finish Line (The), Inc., Class A		6,764		128
First Cash Financial Services, Inc.*		4,053		201
Francesca’s Holdings Corp.*		3,600		93
Fred’s, Inc., Class A		6,159		82

EQUITY FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Retail - 5.9% continued
Frisch’s Restaurants, Inc.		3,450	$	64
Gaiam, Inc., Class A*		800		3
Genesco, Inc.*		2,704		149
GNC Holdings, Inc., Class A		820		27
Group 1 Automotive, Inc.		2,590		161
Haverty Furniture Cos., Inc.		2,174		35
hhgregg, Inc.*		2,321		16
Hibbett Sports, Inc.*		4,744		250
Hot Topic, Inc.		3,249		31
HSN, Inc.		6,154		339
Jack in the Box, Inc.*		6,928		198
Jos. A. Bank Clothiers, Inc.*		4,882		208
Kirkland’s, Inc.*		4,290		45
Kona Grill, Inc.*		6,247		54
Krispy Kreme Doughnuts, Inc.*		10,325		97
Lithia Motors, Inc., Class A		1,492		56
Luby’s, Inc.*		1,473		10
Lumber Liquidators Holdings, Inc.*		2,377		126
Men’s Wearhouse (The), Inc.		5,829		182
New York & Co., Inc.*		2,296		9
Nu Skin Enterprises, Inc., Class A		6,772		251
Office Depot, Inc.*		31,609		104
OfficeMax, Inc.		16,520		161
Pacific Sunwear of California, Inc.*		7,723		12
Pantry (The), Inc.*		793		10
Papa John’s International, Inc.*		2,459		135
PC Connection, Inc.		1,235		14
PC Mall, Inc.*		1,094		7
Penske Automotive Group, Inc.		9,345		281
Pep Boys-Manny, Moe & Jack (The)		7,872		77
PetMed Express, Inc.		2,849		32
Pier 1 Imports, Inc.		12,056		241
Pricesmart, Inc.		2,969		229
RadioShack Corp.		12,028		25
Red Robin Gourmet Burgers, Inc.*		6,292		222
Regis Corp.		9,345		158
Rite Aid Corp.*		17,921		24
Ruby Tuesday, Inc.*		13,714		108
rue21, Inc.*		1,118		32
Rush Enterprises, Inc., Class A*		5,297		109
Ruth’s Hospitality Group, Inc.*		3,239		24
Saks, Inc.*		13,038		137
Shoe Carnival, Inc.		3,909		80
Sonic Automotive, Inc., Class A		7,670		160
Sonic Corp.*		12,087		126
Stage Stores, Inc.		6,624		164
Stein Mart, Inc.		3,270		25
Steinway Musical Instruments, Inc.*		2,701		57
Susser Holdings Corp.*		819		28
Systemax, Inc.		7,179		69
Texas Roadhouse, Inc.		9,746		164
Tuesday Morning Corp.*		1,360		8
Vera Bradley, Inc.*		559		14
Vitamin Shoppe, Inc.*		2,797		160
Wendy’s (The) Co.		38,000		179
West Marine, Inc.*		936		10
Wet Seal (The), Inc., Class A*		2,589		7
World Fuel Services Corp.		8,537		351
Zale Corp.*		2,567		11
Zumiez, Inc.*		2,072		40
				10,929
Savings & Loans - 1.5%
Astoria Financial Corp.		10,909		102
Bank Mutual Corp.		5,430		23
BankFinancial Corp.		1,890		14
Beneficial Mutual Bancorp, Inc.*		9,347		89
Berkshire Hills Bancorp, Inc.		9,229		220
Brookline Bancorp, Inc.		5,840		50
Cape Bancorp, Inc.		1,086		10
Capitol Federal Financial, Inc.		19,674		230
Cheviot Financial Corp.		692		7
Chicopee Bancorp, Inc.*		832		13
Clifton Savings Bancorp, Inc.		2,869		32
Dime Community Bancshares, Inc.		2,844		40
ESB Financial Corp.		626		9
ESSA Bancorp, Inc.		832		9
First Clover Leaf Financial Corp.		267		2
First Defiance Financial Corp.		692		13
First Financial Holdings, Inc.		5,028		66
First Financial Northwest, Inc.*		940		7
First Niagara Financial Group, Inc.		13,150		104
First Pactrust Bancorp, Inc.		932		12
Flushing Financial Corp.		1,760		27
Fox Chase Bancorp, Inc.		5,993		100
Heritage Financial Group, Inc.		3,800		52
HF Financial Corp.		665		9
Hingham Institution for Savings		64		4
Home Federal Bancorp, Inc.		3,409		42

NORTHERN FUNDS QUARTERLY REPORT    19    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Savings & Loans - 1.5% continued
Investors Bancorp, Inc.		3,239	$	58
Kearny Financial Corp.		8,796		86
Kentucky First Federal Bancorp		862		6
Lake Shore Bancorp, Inc.		267		3
Meridian Interstate Bancorp, Inc.*		698		12
Meta Financial Group, Inc.		450		10
MutualFirst Financial, Inc.		546		6
NASB Financial, Inc.*		4,779		102
Newport Bancorp, Inc.*		149		3
Northeast Community Bancorp, Inc.		1,021		5
Northfield Bancorp, Inc.		5,840		89
Northwest Bancshares, Inc.		9,904		120
OceanFirst Financial Corp.		5,309		73
Oritani Financial Corp.		9,192		141
Provident Financial Services, Inc.		9,044		135
Provident New York Bancorp		3,790		35
Prudential Bancorp, Inc. of Pennsylvania*		1,290		9
Pulaski Financial Corp.		797		7
Rockville Financial, Inc.		1,234		16
Roma Financial Corp.		5,711		86
Severn Bancorp, Inc.*		1,582		5
SI Financial Group, Inc.		983		11
Simplicity Bancorp, Inc.		685		10
Teche Holding Co.		142		5
TF Financial Corp.		299		7
United Financial Bancorp, Inc.		3,912		62
Washington Federal, Inc.		9,977		168
Waterstone Financial, Inc.*		3,370		26
Westfield Financial, Inc.		2,304		17
WSFS Financial Corp.		2,856		121
				2,720
Semiconductors - 2.8%
Aeroflex Holding Corp.*		7,832		55
Amkor Technology, Inc.*		15,175		65
ANADIGICS, Inc.*		4,619		12
ATMI, Inc.*		6,154		129
Brooks Automation, Inc.		9,861		79
BTU International, Inc.*		3,981		8
Cabot Microelectronics Corp.		3,136		111
Cascade Microtech, Inc.*		559		3
Cavium, Inc.*		4,102		128
Ceva, Inc.*		2,780		44
Cirrus Logic, Inc.*		11,129		322
Cohu, Inc.		5,331		58
Diodes, Inc.*		5,428		94
DSP Group, Inc.*		2,563		15
Emulex Corp.*		11,817		86
Entegris, Inc.*		14,243		131
Entropic Communications, Inc.*		6,556		35
Exar Corp.*		11,394		101
Fairchild Semiconductor International, Inc.*		13,427		193
FormFactor, Inc.*		5,829		27
GT Advanced Technologies, Inc.*		7,739		23
Hittite Microwave Corp.*		4,386		272
Integrated Device Technology, Inc.*		16,818		123
International Rectifier Corp.*		8,052		143
Intersil Corp., Class A		12,608		105
IXYS Corp.		2,459		22
Kopin Corp.*		6,783		23
Kulicke & Soffa Industries, Inc.*		5,874		70
Lattice Semiconductor Corp.*		15,851		63
LTX-Credence Corp.*		15,291		100
Micrel, Inc.		10,178		97
Microsemi Corp.*		11,929		251
MIPS Technologies, Inc.*		5,608		44
MKS Instruments, Inc.		7,739		200
Monolithic Power Systems, Inc.		4,478		100
OmniVision Technologies, Inc.*		6,564		92
Pericom Semiconductor Corp.*		2,160		17
Photronics, Inc.*		4,555		27
PLX Technology, Inc.*		1,236		4
PMC - Sierra, Inc.*		29,464		154
Power Integrations, Inc.		4,348		146
QLogic Corp.*		11,655		113
Rambus, Inc.*		7,272		35
Rubicon Technology, Inc.*		3,112		19
Rudolph Technologies, Inc.*		2,444		33
Semtech Corp.*		7,576		219
Silicon Image, Inc.*		2,844		14
Silicon Laboratories, Inc.*		5,594		234
Supertex, Inc.		3,516		62
Tessera Technologies, Inc.		7,032		115
TriQuint Semiconductor, Inc.*		15,067		73
Ultratech, Inc.*		4,324		161
Veeco Instruments, Inc.*		4,728		140
Volterra Semiconductor Corp.*		3,525		61
				5,051

EQUITY FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Software - 3.7%
Accelrys, Inc.*		3,370	$	31
ACI Worldwide, Inc.*		5,271		230
Actuate Corp.*		1,351		8
Acxiom Corp.*		7,751		135
Advent Software, Inc.*		6,251		134
American Software, Inc., Class A		15,036		117
Aspen Technology, Inc.*		11,371		314
athenahealth, Inc.*		4,625		340
Avid Technology, Inc.*		6,256		47
Blackbaud, Inc.		5,308		121
Bottomline Technologies, Inc.*		5,314		140
Callidus Software, Inc.*		2,038		9
CommVault Systems, Inc.*		5,698		397
Computer Programs & Systems, Inc.		3,783		190
Concur Technologies, Inc.*		5,062		342
CSG Systems International, Inc.*		5,544		101
Digi International, Inc.*		5,395		51
Digital River, Inc.*		4,348		63
Ebix, Inc.		6,765		109
EPIQ Systems, Inc.		2,182		28
Fair Isaac Corp.		5,712		240
FalconStor Software, Inc.*		1,628		4
Geeknet, Inc.*		2,323		37
GSE Systems, Inc.*		1,480		3
inContact, Inc.*		7,858		41
InnerWorkings, Inc.*		1,228		17
Innodata, Inc.*		1,900		7
Interactive Intelligence Group, Inc.*		1,082		36
Mantech International Corp., Class A		3,794		98
Market Leader, Inc.*		3,371		22
Marlborough Software Development Holdings, Inc.*		1,004		—
MedAssets, Inc.*		2,308		39
Medidata Solutions, Inc.*		3,263		128
MicroStrategy, Inc., Class A*		1,202		112
NetSuite, Inc.*		3,356		226
Official Payments Holdings, Inc.*		1,064		6
Omnicell, Inc.*		5,763		86
Parametric Technology Corp.*		14,639		330
Pegasystems, Inc.		3,378		77
Pervasive Software, Inc.*		1,502		13
Progress Software Corp.*		9,090		191
PROS Holdings, Inc.*		4,714		86
QAD, Inc., Class B		942		12
QLIK Technologies, Inc.*		11,213		244
Quality Systems, Inc.		5,133		89
RealPage, Inc.*		8,951		193
Schawk, Inc.		5,418		71
Seachange International, Inc.*		1,480		14
Smith Micro Software, Inc.*		7,032		11
SolarWinds, Inc.*		6,340		333
Sonic Foundry, Inc.*		4,382		25
SS&C Technologies Holdings, Inc.*		2,704		63
Synchronoss Technologies, Inc.*		5,274		111
SYNNEX Corp.*		3,655		126
Take-Two Interactive Software, Inc.*		7,645		84
Tyler Technologies, Inc.*		5,681		275
Ultimate Software Group, Inc.*		3,543		335
Verint Systems, Inc.*		1,958		57
Wayside Technology Group, Inc.		745		8
				6,757
Storage/Warehousing - 0.1%
Mobile Mini, Inc.*		5,358		112
Telecommunications - 2.9%
8x8, Inc.*		14,915		110
Acme Packet, Inc.*		7,700		170
ADTRAN, Inc.		8,678		170
Alaska Communications Systems Group, Inc.		7,946		15
Anaren, Inc.*		5,105		99
Anixter International, Inc.		4,187		268
Arris Group, Inc.*		13,972		209
Aruba Networks, Inc.*		10,733		223
Atlantic Tele-Network, Inc.		1,210		44
Aviat Networks, Inc.*		29,949		99
Aware, Inc.		738		4
Black Box Corp.		2,448		60
Cbeyond, Inc.*		2,868		26
Ciena Corp.*		9,243		145
Cincinnati Bell, Inc.*		30,363		166
Communications Systems, Inc.		3,131		33
Comtech Telecommunications Corp.		3,393		86
Comverse Technology, Inc.		22,844		88
Comverse, Inc.*		2,284		65
Consolidated Communications Holdings, Inc.		5,275		84
DigitalGlobe, Inc.*		4,848		118
EarthLink, Inc.		18,165		117
Extreme Networks, Inc.*		5,948		22

NORTHERN FUNDS QUARTERLY REPORT    21    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Telecommunications - 2.9% continued
Finisar Corp.*		9,510	$	155
General Communication, Inc., Class A*		4,082		39
GeoEye, Inc.*		3,439		106
Globecomm Systems, Inc.*		1,625		18
Harmonic, Inc.*		11,935		60
HickoryTech Corp.		5,491		53
IDT Corp., Class B		2,051		20
Infinera Corp.*		10,349		60
InterDigital, Inc.		5,713		235
Ixia*		9,234		157
KVH Industries, Inc.*		3,394		47
Leap Wireless International, Inc.*		7,388		49
LogMeIn, Inc.*		2,035		46
Loral Space & Communications, Inc.		932		51
Lumos Networks Corp.		1,287		13
Meru Networks, Inc.*		4,475		12
NETGEAR, Inc.*		4,344		171
NeuStar, Inc., Class A*		7,127		299
Neutral Tandem, Inc.		2,028		5
Novatel Wireless, Inc.*		8,953		12
NTELOS Holdings Corp.		2,499		33
Numerex Corp., Class A*		2,038		27
Oclaro, Inc.*		6,308		10
Oplink Communications, Inc.*		4,632		72
Plantronics, Inc.		6,291		232
Powerwave Technologies, Inc.*		671		—
Preformed Line Products Co.		798		47
Premiere Global Services, Inc.*		14,619		143
RF Micro Devices, Inc.*		33,513		150
RigNet, Inc.*		372		8
Shenandoah Telecommunications Co.		1,904		29
ShoreTel, Inc.*		7,670		33
Sonus Networks, Inc.*		18,555		32
Sycamore Networks, Inc.		2,174		5
Symmetricom, Inc.*		15,138		87
Telestone Technologies Corp.*		2,313		3
Tellabs, Inc.		40,467		92
Tessco Technologies, Inc.		1,474		33
USA Mobility, Inc.		3,917		46
UTStarcom Holdings Corp.*		5,954		6
ViaSat, Inc.*		3,780		147
Warwick Valley Telephone Co.		298		3
				5,267
Textiles - 0.2%
G&K Services, Inc., Class A		3,647		125
Hallwood Group (The), Inc.*		100		1
UniFirst Corp.		2,721		199
				325
Toys, Games & Hobbies - 0.0%
JAKKS Pacific, Inc.		3,130		39
LeapFrog Enterprises, Inc.*		4,055		35
				74
Transportation - 1.9%
Air Transport Services Group, Inc.*		3,510		14
Arkansas Best Corp.		4,195		40
Atlas Air Worldwide Holdings, Inc.*		3,529		156
Bristow Group, Inc.		4,967		267
CAI International, Inc.*		2,851		63
Celadon Group, Inc.		797		14
Con-way, Inc.		7,377		205
Covenant Transportation Group, Inc., Class A*		1,878		10
Eagle Bulk Shipping, Inc.*		310		1
Forward Air Corp.		4,733		166
Frozen Food Express Industries*		7,846		7
Genesee & Wyoming, Inc., Class A*		4,600		350
Golar LNG Ltd.		4,626		170
Gulfmark Offshore, Inc., Class A		2,471		85
Heartland Express, Inc.		9,621		126
Horizon Lines, Inc., Class A*		80		—
Hub Group, Inc., Class A*		4,731		159
International Shipholding Corp.		419		7
Knight Transportation, Inc.		8,660		127
Knightsbridge Tankers Ltd.		4,485		24
Marten Transport Ltd.		4,584		84
Matson, Inc.		5,830		144
Nordic American Tankers Ltd.		3,239		28
Old Dominion Freight Line, Inc.*		9,159		314
Overseas Shipholding Group, Inc.*		3,543		3
P.A.M. Transportation Services, Inc.		7,200		74
Pacer International, Inc.*		2,437		10
Patriot Transportation Holding, Inc.*		1,579		45
PHI, Inc. (Non Voting)*		4,070		136
Providence and Worcester Railroad Co.		2,107		29
Saia, Inc.*		2,298		53
Ship Finance International Ltd.		7,032		117
Teekay Tankers Ltd., Class A		949		3
Ultrapetrol Bahamas Ltd.*		1,646		3

EQUITY FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 94.9% continued
Transportation - 1.9% continued
Universal Truckload Services, Inc.		4,513	$	82
USA Truck, Inc.*		688		2
UTi Worldwide, Inc.		13,800		185
Werner Enterprises, Inc.		6,664		144
				3,447
Trucking & Leasing - 0.4%
Amerco, Inc.		826		105
GATX Corp.		6,873		298
Greenbrier Cos., Inc.*		1,084		17
TAL International Group, Inc.		3,409		124
Textainer Group Holdings Ltd.		2,847		90
Willis Lease Finance Corp.*		808		11
				645
Water - 0.2%
Artesian Resources Corp., Class A		554		13
California Water Service Group		5,948		109
Connecticut Water Service, Inc.		692		21
Consolidated Water Co. Ltd.		4,764		35
Middlesex Water Co.		4,686		92
SJW Corp.		3,098		82
York Water Co.		3,816		67
				419
Total Common Stocks (Cost $156,144)				174,487
PREFERRED STOCKS - 0.0%
Electric - 0.0%
Genie Energy Ltd.*		1,025		7
Total Preferred Stocks (Cost $11)				7
RIGHTS - 0.0%
Healthcare - Products - 0.0%
American Medical Alert Corp.†*		13,109		—
Pharmaceuticals - 0.0%
Forest Laboratories, Inc. (Contingent Value Rights)†*		3,326		—
Total Rights (Cost $ — )				—
OTHER - 0.0%
Escrow Adolor Corp.†*		1,241		—
Total Other (Cost $ — )				—
	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 - 4.4%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(2) (3)		8,070,495	$	8,070
Total Investment Companies (Cost $8,070)				8,070
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.3%
U.S. Treasury Bill,
0.14%, 4/25/13(4)	$	565	$	565
Total Short-Term Investments
(Cost $565)				565
Total Investments - 99.6%
(Cost $164,790)				183,129
Other Assets less Liabilities - 0.4%				653
NET ASSETS - 100.0%			$	183,782

(1) Security has been deemed worthless by the Northern Trust Global Investments Pricing and Valuation Committee (“NTGI PVC”) and is a Level 3 investment.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 $9,851,000 with net sales of approximately $1,781,000 during the nine months ended December 31, 2012.

(4) 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

NORTHERN FUNDS QUARTERLY REPORT     23    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP CORE FUND continued

Percentages shown are based on Net Assets.

At December 31, 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		106	$	8,974		Long		3/13	$	187

At December 31, 2012, the industry sectors for the Small Cap Core Fund were:

INDUSTRY SECTOR	% OF LONG- TERM INVESTMENTS
Consumer Discretionary		13.5	%
Consumer Staples		3.7
Energy		6.5
Financials		21.9
Health Care		12.0
Industrials		16.5
Information Technology		16.8
Materials		5.1
Telecommunication Services		0.6
Utilities		3.4
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 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 Small Cap Core Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Aerospace/Defense	$	2,786		$	51	$	14	$	2,851
Banks		9,792			4		—		9,796
Food		3,582			4		—		3,586
Office Furnishings		701			2		—		703
Real Estate Investment Trusts		13,068			23		—		13,091
Savings & Loans		2,718			2		—		2,720
All Other Industries		141,740	(1)		—		—		141,740
Preferred Stocks		7			—		—		7
Investment Companies		8,070			—		—		8,070
Short-Term Investments		—			565		—		565
Total Investments	$	182,464		$	651	$	14	$	183,129
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	187		$	—	$	—	$	187

(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 December 31, 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	$	51	Valuations at bid price
Banks		4	Valuations at bid price
Food		4	Valuations at bid price
Office Furnishings		2	Valuations at bid price
Real Estate Investment Trusts		23	Valuations at bid price
Savings & Loans		2	Valuations at bid price
Total	$	86
Transfers from Level 2 to Level 1
Industry	Value (000S)		Reason
Common Stocks
Banks	$	14	Valuations at official close price
Diversified Financial Services		1	Valuations at official close price
Food		33	Valuations at official close price
Insurance		6	Valuations at official close price
Oil & Gas		106	Valuations at official close price
Savings & Loans		12	Valuations at official close price
Textiles		1	Valuations at official close price
Total	$	173

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    24    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 APPRE- CIATION (000S)		CHANGE  IN UNREALIZED DEPRE- CIATION (000S)		PUR- CHASES (000S)		SALES (000S)		TRANS- FERS INTO LEVEL 3 (000S) (1)			TRANS- FERS OUT  OF LEVEL 3 (000S) (1)		BALANCE AS OF 12/31/12 (000S)
Common Stocks
Aerospace/Defense	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	14	(2)	$	—	$	14

(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 December 31, 2012.

(2) The Transfers Into Level 3 were due to the security using a price provided by NTGI PVC.

The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at December 31, 2012 was approximately $1, which is included in the Statement of Operations as part of net change in unrealized appreciation (depreciation) on investments.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	164,862
Gross tax appreciation of investments	$	34,922
Gross tax depreciation of investments		(16,655	)
Net tax appreciation of investments	$	18,267

NORTHERN FUNDS QUARTERLY REPORT    25    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9%
Advertising - 0.1%
Harte-Hanks, Inc.		220,259	$	1,300
Aerospace/Defense - 1.9%
AAR Corp.		220,150		4,112
Cubic Corp.		54,522		2,615
Curtiss-Wright Corp.		174,876		5,741
Ducommun, Inc.*		10,041		162
Esterline Technologies Corp.*		103,546		6,587
Kaman Corp.		26,874		989
Moog, Inc., Class A*		235,473		9,662
Orbital Sciences Corp.*		71,373		983
Triumph Group, Inc.		71,591		4,675
				35,526
Agriculture - 0.5%
Andersons (The), Inc.		74,201		3,183
Universal Corp.		127,179		6,348
				9,531
Airlines - 0.4%
JetBlue Airways Corp.*		1,183,236		6,756
Apparel - 1.1%
Columbia Sportswear Co.		126,598		6,755
Iconix Brand Group, Inc.*		313,227		6,991
Jones Group (The), Inc.		198,363		2,194
Perry Ellis International, Inc.		56,255		1,119
Steven Madden Ltd.*		19,893		841
Unifi, Inc.*		48,553		632
Warnaco Group (The), Inc.*		18,815		1,347
				19,879
Auto Parts & Equipment - 0.9%
Cooper Tire & Rubber Co.		157,184		3,986
Dana Holding Corp.		415,187		6,481
Miller Industries, Inc.		89,896		1,371
Standard Motor Products, Inc.		86,894		1,931
Superior Industries International, Inc.		139,361		2,843
				16,612
Banks - 12.3%
Bancfirst Corp.		29,856		1,265
Banco Latinoamericano de Comercio Exterior S.A., Class E		8,800		190
BancorpSouth, Inc.		259,668		3,776
Bank of the Ozarks, Inc.		60,983		2,041
BBCN Bancorp, Inc.		230,467		2,666
Capital City Bank Group, Inc.*		43,675		497
Cardinal Financial Corp.		115,348		1,877
Cathay General Bancorp		232,240		4,529
Chemical Financial Corp.		224,318		5,330
City Holding Co.		93,190		3,248
Columbia Banking System, Inc.		79,711		1,430
Community Bank System, Inc.		283,657		7,761
Community Trust Bancorp, Inc.		107,542		3,525
CVB Financial Corp.		367,734		3,824
East West Bancorp, Inc.		172,047		3,697
Financial Institutions, Inc.		25,292		471
First Financial Bancorp		274,059		4,007
First Financial Corp.		86,686		2,621
First Merchants Corp.		124,648		1,850
First Midwest Bancorp, Inc.		377,286		4,724
FirstMerit Corp.		414,714		5,885
FNB Corp.		721,888		7,666
Fulton Financial Corp.		194,222		1,866
Glacier Bancorp, Inc.		86,360		1,270
Hancock Holding Co.		106,369		3,376
Hanmi Financial Corp.*		37,790		514
Heartland Financial USA, Inc.		76,397		1,998
Home BancShares, Inc.		100,777		3,328
Iberiabank Corp.		84,790		4,165
Independent Bank Corp.		131,493		3,807
International Bancshares Corp.		393,395		7,101
Lakeland Bancorp, Inc.		213,999		2,178
Lakeland Financial Corp.		66,898		1,729
MainSource Financial Group, Inc.		34,442		436
MB Financial, Inc.		11,713		231
National Bankshares, Inc.		24,869		805
National Penn Bancshares, Inc.		360,855		3,363
NBT Bancorp, Inc.		184,151		3,733
Old National Bancorp		458,658		5,444
Park National Corp.		56,211		3,633
Peoples Bancorp, Inc.		22,357		457
Pinnacle Financial Partners, Inc.*		117,378		2,211
PrivateBancorp, Inc.		223,295		3,421
Prosperity Bancshares, Inc.		259,221		10,887
Renasant Corp.		188,913		3,616
S&T Bancorp, Inc.		148,491		2,683
Sandy Spring Bancorp, Inc.		75,896		1,474
SCBT Financial Corp.		82,675		3,322
Sierra Bancorp		127,072		1,452
Simmons First National Corp., Class A		168,632		4,276

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 - 12.3% continued
StellarOne Corp.		147,349	$	2,084
Sterling Bancorp		105,391		960
Susquehanna Bancshares, Inc.		939,661		9,848
SVB Financial Group*		98,727		5,526
Texas Capital Bancshares, Inc.*		110,746		4,964
Trico Bancshares		109,886		1,841
Trustmark Corp.		343,776		7,721
UMB Financial Corp.		174,196		7,637
Umpqua Holdings Corp.		320,325		3,777
Union First Market Bankshares Corp.		124,698		1,966
United Bankshares, Inc.		234,030		5,692
Washington Banking Co.		46,145		628
Washington Trust Bancorp, Inc.		119,932		3,155
Webster Financial Corp.		288,524		5,929
WesBanco, Inc.		94,032		2,089
Wilshire Bancorp, Inc.*		263,501		1,547
Wintrust Financial Corp.		136,851		5,022
				226,042
Biotechnology - 0.1%
PDL BioPharma, Inc.		284,426		2,005
Building Materials - 2.0%
Apogee Enterprises, Inc.		185,681		4,451
Comfort Systems USA, Inc.		227,309		2,764
Drew Industries, Inc.		162,014		5,225
Gibraltar Industries, Inc.*		265,857		4,232
Griffon Corp.		247,225		2,833
Louisiana-Pacific Corp.*		65,620		1,268
Quanex Building Products Corp.		218,964		4,469
Simpson Manufacturing Co., Inc.		161,730		5,303
Texas Industries, Inc.*		37,284		1,902
Universal Forest Products, Inc.		120,050		4,567
				37,014
Chemicals - 2.3%
A. Schulman, Inc.		132,271		3,827
Aceto Corp.		249,668		2,507
Cabot Corp.		98,116		3,904
Cytec Industries, Inc.		25,050		1,724
H.B. Fuller Co.		150,947		5,256
Innophos Holdings, Inc.		57,453		2,671
Minerals Technologies, Inc.		148,580		5,931
Olin Corp.		298,420		6,443
OM Group, Inc.*		209,371		4,648
Sensient Technologies Corp.		158,071		5,621
				42,532
Coal - 0.3%
Arch Coal, Inc.		24,589		180
Cloud Peak Energy, Inc.*		234,257		4,528
James River Coal Co.*		254,152		814
				5,522
Commercial Services - 4.3%
ABM Industries, Inc.		202,469		4,039
Arbitron, Inc.		12,628		589
Barrett Business Services, Inc.		28,202		1,074
Brink’s (The) Co.		21,791		622
CDI Corp.		128,024		2,193
Convergys Corp.		446,094		7,320
Corporate Executive Board (The) Co.		15,463		734
Electro Rent Corp.		162,917		2,506
Ennis, Inc.		214,988		3,326
Euronet Worldwide, Inc.*		158,370		3,738
Geo Group (The), Inc.		255,873		7,216
Great Lakes Dredge & Dock Corp.		190,615		1,702
Kforce, Inc.		102,069		1,463
Korn/Ferry International*		208,329		3,304
MAXIMUS, Inc.		60,028		3,795
Multi-Color Corp.		85,160		2,043
PHH Corp.*		449,059		10,216
Rent-A-Center, Inc.		348,058		11,959
Stewart Enterprises, Inc., Class A		742,199		5,670
Viad Corp.		182,376		4,953
VistaPrint N.V.*		17,882		588
				79,050
Computers - 1.4%
Brocade Communications Systems, Inc.*		521,337		2,779
CACI International, Inc., Class A*		120,007		6,604
Cray, Inc.*		7,296		116
Electronics for Imaging, Inc.*		228,489		4,339
Insight Enterprises, Inc.*		345,005		5,993
Mentor Graphics Corp.*		247,455		4,212
Sykes Enterprises, Inc.*		9,071		138
Xyratex Ltd.		255,015		2,144
				26,325
Cosmetics/Personal Care - 0.3%
Elizabeth Arden, Inc.*		70,793		3,186

EQUITY FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Cosmetics/Personal Care - 0.3% continued
Inter Parfums, Inc.		77,839	$	1,515
				4,701
Distribution/Wholesale - 0.5%
Core-Mark Holding Co., Inc.		72,713		3,443
Owens & Minor, Inc.		64,297		1,833
United Stationers, Inc.		120,350		3,730
				9,006
Diversified Financial Services - 2.1%
Aircastle Ltd.		180,395		2,262
Arlington Asset Investment Corp., Class A		14,129		293
Calamos Asset Management, Inc., Class A		78,464		829
Encore Capital Group, Inc.*		120,787		3,699
GFI Group, Inc.		169,651		550
Janus Capital Group, Inc.		179,889		1,533
KBW, Inc.		69,389		1,062
National Financial Partners Corp.*		213,522		3,660
Nelnet, Inc., Class A		192,745		5,742
NewStar Financial, Inc.*		93,311		1,307
Ocwen Financial Corp.*		283,307		9,800
Oppenheimer Holdings, Inc., Class A		42,873		740
Stifel Financial Corp.*		120,939		3,866
World Acceptance Corp.*		51,024		3,804
				39,147
Electric - 4.7%
ALLETE, Inc.		175,684		7,199
Avista Corp.		301,804		7,276
Black Hills Corp.		141,729		5,150
Cleco Corp.		229,189		9,170
El Paso Electric Co.		273,327		8,722
Empire District Electric (The) Co.		155,869		3,177
IDACORP, Inc.		269,734		11,693
NorthWestern Corp.		162,497		5,643
Otter Tail Corp.		160,349		4,009
PNM Resources, Inc.		327,644		6,720
Portland General Electric Co.		299,588		8,197
UNS Energy Corp.		213,498		9,057
				86,013
Electrical Components & Equipment - 0.6%
Advanced Energy Industries, Inc.*		61,699		852
Encore Wire Corp.		28,759		872
EnerSys, Inc.*		76,253		2,869
Littelfuse, Inc.		87,310		5,388
Power-One, Inc.*		378,994		1,558
				11,539
Electronics - 3.0%
Benchmark Electronics, Inc.*		290,106		4,822
Brady Corp., Class A		263,561		8,803
Coherent, Inc.		124,916		6,323
CTS Corp.		287,577		3,057
FEI Co.		88,455		4,906
Newport Corp.*		140,966		1,896
Park Electrochemical Corp.		92,864		2,389
Plexus Corp.*		121,918		3,145
Rofin-Sinar Technologies, Inc.*		169,047		3,665
Rogers Corp.*		94,314		4,684
Sanmina Corp.*		289,856		3,209
Watts Water Technologies, Inc., Class A		179,933		7,735
Woodward, Inc.		32,079		1,223
				55,857
Energy - Alternate Sources - 0.1%
REX American Resources Corp.*		60,411		1,165
Engineering & Construction - 1.2%
Aegion Corp.*		31,817		706
Dycom Industries, Inc.*		252,750		5,004
EMCOR Group, Inc.		296,524		10,263
Granite Construction, Inc.		163,777		5,506
				21,479
Entertainment - 0.7%
Churchill Downs, Inc.		131,784		8,757
International Speedway Corp., Class A		53,389		1,475
Vail Resorts, Inc.		37,566		2,032
				12,264
Environmental Control - 0.2%
Darling International, Inc.*		234,393		3,760
Mine Safety Appliances Co.		17,082		729
				4,489
Food - 0.6%
Dole Food Co., Inc.*		85,413		980
Fresh Del Monte Produce, Inc.		247,430		6,520
Harris Teeter Supermarkets, Inc.		21,408		825
Sanderson Farms, Inc.		22,030		1,047
Seneca Foods Corp., Class A*		45,709		1,390
				10,762

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
Forest Products & Paper - 1.1%
Boise, Inc.		489,074	$	3,888
Buckeye Technologies, Inc.		35,668		1,024
Domtar Corp.		45,945		3,837
KapStone Paper and Packaging Corp.		111,599		2,476
Mercer International, Inc.*		271,107		1,941
Neenah Paper, Inc.		11,060		315
P.H. Glatfelter Co.		355,572		6,216
Schweitzer-Mauduit International, Inc.		15,032		587
				20,284
Gas - 1.1%
AGL Resources, Inc.		60,297		2,410
Laclede Group (The), Inc.		99,862		3,856
South Jersey Industries, Inc.		59,900		3,015
Southwest Gas Corp.		239,005		10,136
WGL Holdings, Inc.		14,019		549
				19,966
Healthcare - Products - 1.0%
AngioDynamics, Inc.*		162,545		1,786
Cantel Medical Corp.		74,884		2,226
CONMED Corp.		247,390		6,915
CryoLife, Inc.		219,005		1,364
Greatbatch, Inc.*		163,026		3,789
Hanger, Inc.*		93,964		2,571
				18,651
Healthcare - Services - 2.6%
Amedisys, Inc.*		103,079		1,162
Amsurg Corp.*		131,808		3,955
Capital Senior Living Corp.*		89,652		1,676
Centene Corp.*		67,778		2,779
Community Health Systems, Inc.		259,681		7,983
Five Star Quality Care, Inc.*		408,379		2,046
Kindred Healthcare, Inc.*		526,383		5,695
LifePoint Hospitals, Inc.*		130,321		4,920
Magellan Health Services, Inc.*		79,999		3,920
Medcath Corp.(1) *		106,845		—
Molina Healthcare, Inc.*		219,345		5,935
RadNet, Inc.*		137,062		347
Triple-S Management Corp., Class B*		165,041		3,048
Universal American Corp.		248,022		2,130
WellCare Health Plans, Inc.*		34,606		1,685
				47,281
Holding Companies - Diversified - 0.2%
Compass Diversified Holdings		198,951		2,927
Home Builders - 0.7%
Beazer Homes USA, Inc.*		47,911		809
Hovnanian Enterprises, Inc., Class A*		22,837		160
KB Home		44,466		703
MDC Holdings, Inc.		55,098		2,025
Meritage Homes Corp.*		109,284		4,082
Ryland Group (The), Inc.		37,922		1,384
Standard Pacific Corp.*		461,657		3,393
				12,556
Home Furnishings - 0.4%
Ethan Allen Interiors, Inc.		93,268		2,398
Hooker Furniture Corp.		75,964		1,104
La-Z-Boy, Inc.		189,424		2,680
VOXX International Corp.*		157,672		1,061
				7,243
Household Products/Wares - 1.2%
American Greetings Corp., Class A		320,822		5,419
Avery Dennison Corp.		53,049		1,852
Blyth, Inc.		123,532		1,921
CSS Industries, Inc.		69,167		1,514
Helen of Troy Ltd.*		145,230		4,849
Prestige Brands Holdings, Inc.*		336,889		6,748
				22,303
Insurance - 5.5%
Alterra Capital Holdings Ltd.		374,042		10,544
American Equity Investment Life Holding Co.		331,438		4,047
AMERISAFE, Inc.*		70,800		1,929
Argo Group International Holdings Ltd.		25,349		852
Assured Guaranty Ltd.		244,177		3,475
CNO Financial Group, Inc.		1,048,611		9,784
EMC Insurance Group, Inc.		56,530		1,350
Employers Holdings, Inc.		161,085		3,315
Endurance Specialty Holdings Ltd.		47,087		1,869
FBL Financial Group, Inc., Class A		205,531		7,031
First American Financial Corp.		294,192		7,087
Horace Mann Educators Corp.		285,559		5,700
Infinity Property & Casualty Corp.		3,500		204
Kemper Corp.		49,534		1,461
Montpelier Re Holdings Ltd.		203,396		4,650
Navigators Group (The), Inc.*		114,733		5,859
Platinum Underwriters Holdings Ltd.		107,000		4,922

EQUITY FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Insurance - 5.5% continued
Primerica, Inc.		137,919	$	4,139
RLI Corp.		62,451		4,038
Safety Insurance Group, Inc.		26,099		1,205
Selective Insurance Group, Inc.		80,280		1,547
StanCorp Financial Group, Inc.		125,589		4,605
Symetra Financial Corp.		361,665		4,694
United Fire Group, Inc.		91,557		2,000
Validus Holdings Ltd.		127,484		4,408
				100,715
Internet - 0.6%
AsiaInfo-Linkage, Inc.*		14,408		156
Blucora, Inc.*		270,042		4,242
Dealertrack Technologies, Inc.*		19,270		553
PC-Tel, Inc.		107,494		774
Sapient Corp.*		65,055		687
United Online, Inc.		505,637		2,827
WebMD Health Corp.*		161,686		2,319
				11,558
Investment Companies - 1.2%
Apollo Investment Corp.		646,630		5,406
Ares Capital Corp.		118,999		2,083
BlackRock Kelso Capital Corp.		212,989		2,143
Gladstone Capital Corp.		42,569		347
Hercules Technology Growth Capital, Inc.		308,723		3,436
Main Street Capital Corp.		28,874		881
MVC Capital, Inc.		160,779		1,953
Prospect Capital Corp.		428,846		4,662
Steel Excel, Inc.*		23,533		587
				21,498
Leisure Time - 0.2%
WMS Industries, Inc.*		159,498		2,791
Lodging - 0.1%
Marcus Corp.		207,418		2,587
Machinery - Construction & Mining - 0.2%
Hyster-Yale Materials Handling, Inc.		78,478		3,830
Machinery - Diversified - 1.4%
Briggs & Stratton Corp.		359,810		7,585
Cascade Corp.		78,999		5,080
Cognex Corp.		111,567		4,108
Intevac, Inc.*		184,199		842
Kadant, Inc.*		23,235		616
NACCO Industries, Inc., Class A		39,239		2,381
Robbins & Myers, Inc.		74,964		4,456
				25,068
Media - 1.0%
Digital Generation, Inc.*		46,371		504
Entercom Communications Corp., Class A*		238,096		1,662
Gannett Co., Inc.		133,448		2,404
Journal Communications, Inc., Class A*		455,630		2,465
Meredith Corp.		115,569		3,981
Scholastic Corp.		219,698		6,494
				17,510
Metal Fabrication/Hardware - 1.1%
A.M. Castle & Co.*		119,825		1,770
Mueller Industries, Inc.		184,796		9,245
Olympic Steel, Inc.		58,071		1,286
Worthington Industries, Inc.		317,923		8,263
				20,564
Mining - 0.9%
Coeur d’Alene Mines Corp.*		274,812		6,760
Hecla Mining Co.		480,482		2,801
Kaiser Aluminum Corp.		40,443		2,495
Materion Corp.		181,730		4,685
Stillwater Mining Co.*		50,302		643
				17,384
Miscellaneous Manufacturing - 1.2%
A.O. Smith Corp.		38,210		2,410
Actuant Corp., Class A		13,764		384
Barnes Group, Inc.		256,907		5,770
EnPro Industries, Inc.*		34,679		1,418
Myers Industries, Inc.		272,609		4,130
Standex International Corp.		92,166		4,727
Tredegar Corp.		137,152		2,801
				21,640
Office Furnishings - 0.0%
Steelcase, Inc., Class A		19,416		247
Oil & Gas - 2.4%
Alon USA Energy, Inc.		110,065		1,991
Approach Resources, Inc.*		18,438		461
Bill Barrett Corp.*		185,218		3,295
Callon Petroleum Co.*		141,408		665
Carrizo Oil & Gas, Inc.*		77,816		1,628
Delek US Holdings, Inc.		107,549		2,723
Energy XXI Bermuda Ltd.		151,748		4,885

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
Oil & Gas - 2.4% continued
Forest Oil Corp.*		27,297	$	183
Gran Tierra Energy, Inc.*		337,418		1,859
Gulfport Energy Corp.*		126,136		4,821
Parker Drilling Co.*		820,009		3,772
PDC Energy, Inc.*		162,059		5,382
Resolute Energy Corp.*		89,778		730
Rex Energy Corp.*		81,907		1,066
Stone Energy Corp.*		270,030		5,541
Vaalco Energy, Inc.*		385,933		3,338
W&T Offshore, Inc.		87,961		1,410
				43,750
Oil & Gas Services - 1.7%
Basic Energy Services, Inc.*		19,734		225
Dril-Quip, Inc.*		18,632		1,361
Helix Energy Solutions Group, Inc.*		323,311		6,673
Hornbeck Offshore Services, Inc.*		206,956		7,107
Key Energy Services, Inc.*		598,484		4,160
Lufkin Industries, Inc.		16,516		960
Natural Gas Services Group, Inc.*		117,784		1,934
Newpark Resources, Inc.*		630,327		4,948
Oil States International, Inc.*		20,710		1,482
Pioneer Energy Services Corp.*		249,346		1,810
Superior Energy Services, Inc.*		25,038		519
				31,179
Packaging & Containers - 0.4%
Graphic Packaging Holding Co.*		755,159		4,878
Rock-Tenn Co., Class A		36,890		2,579
				7,457
Pharmaceuticals - 0.6%
Nutraceutical International Corp.		82,980		1,373
ViroPharma, Inc.*		443,596		10,096
				11,469
Pipelines - 0.3%
Crosstex Energy, Inc.		244,155		3,501
Enbridge Energy Management LLC*		51,696		1,493
Enbridge Energy Management LLC - (Fractional Shares)*		2,607,403		—
Kinder Morgan Management LLC - (Fractional Shares)*		22,660		—
SemGroup Corp., Class A*		7,078		277
				5,271
Real Estate - 0.2%
WP Carey, Inc.		54,435		2,839
Real Estate Investment Trusts - 10.8%
Acadia Realty Trust		108,829		2,729
Agree Realty Corp.		90,453		2,423
Alexandria Real Estate Equities, Inc.		24,307		1,685
Anworth Mortgage Asset Corp.		802,215		4,637
ARMOUR Residential REIT, Inc.		419,028		2,711
Capstead Mortgage Corp.		415,547		4,766
CBL & Associates Properties, Inc.		272,593		5,782
Cedar Realty Trust, Inc.		455,883		2,407
Colonial Properties Trust		266,051		5,686
Corporate Office Properties Trust		62,961		1,573
CYS Investments, Inc.		469,049		5,539
DiamondRock Hospitality Co.		644,555		5,801
Duke Realty Corp.		220,643		3,060
DuPont Fabros Technology, Inc.		117,688		2,843
Dynex Capital, Inc.		162,815		1,537
EPR Properties		215,111		9,919
Equity One, Inc.		299,416		6,291
First Industrial Realty Trust, Inc.*		227,772		3,207
First Potomac Realty Trust		261,467		3,232
Franklin Street Properties Corp.		316,863		3,901
Gladstone Commercial Corp.		39,130		702
Government Properties Income Trust		110,600		2,651
Hatteras Financial Corp.		209,005		5,185
Healthcare Realty Trust, Inc.		224,372		5,387
Highwoods Properties, Inc.		226,508		7,577
Invesco Mortgage Capital, Inc.		376,974		7,430
Investors Real Estate Trust		254,411		2,221
Kite Realty Group Trust		334,351		1,869
LaSalle Hotel Properties		316,821		8,044
LTC Properties, Inc.		195,363		6,875
Medical Properties Trust, Inc.		803,106		9,605
MFA Financial, Inc.		536,070		4,348
National Health Investors, Inc.		93,776		5,301
NorthStar Realty Finance Corp.		767,511		5,403
One Liberty Properties, Inc.		44,824		910
Pennsylvania Real Estate Investment Trust		249,089		4,394
PS Business Parks, Inc.		48,981		3,183
Ramco-Gershenson Properties Trust		207,047		2,756
Redwood Trust, Inc.		493,532		8,336
Resource Capital Corp.		216,562		1,213
Starwood Property Trust, Inc.		461,060		10,586
Strategic Hotels & Resorts, Inc.*		517,105		3,310

EQUITY FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Real Estate Investment Trusts - 10.8% continued
Sunstone Hotel Investors, Inc.*		64,739	$	693
Two Harbors Investment Corp.		315,358		3,494
Washington Real Estate Investment Trust		167,381		4,377
Weingarten Realty Investors		125,822		3,368
				198,947
Retail - 5.2%
Aeropostale, Inc.*		48,349		629
Bob Evans Farms, Inc.		165,366		6,648
Casey’s General Stores, Inc.		60,244		3,199
Cash America International, Inc.		204,343		8,106
Coinstar, Inc.*		7,184		374
Cracker Barrel Old Country Store, Inc.		86,337		5,548
Domino’s Pizza, Inc.		27,030		1,177
DSW, Inc., Class A		73,946		4,858
Einstein Noah Restaurant Group, Inc.		44,493		543
Fifth & Pacific Cos., Inc.*		278,536		3,468
Fred’s, Inc., Class A		313,428		4,172
Group 1 Automotive, Inc.		87,000		5,393
Haverty Furniture Cos., Inc.		98,516		1,607
Men’s Wearhouse (The), Inc.		294,281		9,170
Pantry (The), Inc.*		139,521		1,692
PC Connection, Inc.		157,956		1,817
Penske Automotive Group, Inc.		204,101		6,141
Pep Boys-Manny, Moe & Jack (The)		227,361		2,235
Pricesmart, Inc.		13,489		1,039
Rush Enterprises, Inc., Class A*		119,469		2,469
Saks, Inc.*		472,350		4,964
Shoe Carnival, Inc.		84,251		1,726
Sonic Automotive, Inc., Class A		470,071		9,820
Stage Stores, Inc.		225,491		5,588
Texas Roadhouse, Inc.		55,591		934
Wet Seal (The), Inc., Class A*		267,087		737
World Fuel Services Corp.		14,286		588
				94,642
Savings & Loans - 2.0%
Astoria Financial Corp.		304,017		2,846
BankFinancial Corp.		64,579		479
Berkshire Hills Bancorp, Inc.		47,328		1,129
Dime Community Bancshares, Inc.		270,332		3,755
First Financial Holdings, Inc.		55,399		725
Flushing Financial Corp.		316,376		4,853
Northwest Bancshares, Inc.		242,325		2,942
OceanFirst Financial Corp.		79,503		1,093
Provident Financial Services, Inc.		410,383		6,123
Provident New York Bancorp		251,310		2,340
United Financial Bancorp, Inc.		158,985		2,499
Washington Federal, Inc.		345,424		5,827
WSFS Financial Corp.		62,804		2,653
				37,264
Semiconductors - 3.0%
Amkor Technology, Inc.*		195,379		830
ATMI, Inc.*		131,190		2,739
Brooks Automation, Inc.		468,497		3,771
Entegris, Inc.*		564,514		5,182
Fairchild Semiconductor International, Inc.*		253,170		3,646
GSI Technology, Inc.*		135,621		850
Intersil Corp., Class A		358,727		2,974
Kulicke & Soffa Industries, Inc.*		245,597		2,945
Lattice Semiconductor Corp.*		268,363		1,071
LTX-Credence Corp.*		108,665		713
MKS Instruments, Inc.		317,210		8,178
Nanometrics, Inc.*		52,515		757
OmniVision Technologies, Inc.*		245,563		3,458
Pericom Semiconductor Corp.*		238,300		1,914
Photronics, Inc.*		270,771		1,614
Power Integrations, Inc.		13,096		440
QLogic Corp.*		75,331		733
Semtech Corp.*		30,788		891
Silicon Image, Inc.*		354,483		1,758
Tessera Technologies, Inc.		146,429		2,404
TriQuint Semiconductor, Inc.*		747,407		3,617
Ultra Clean Holdings*		79,940		393
Veeco Instruments, Inc.*		141,018		4,163
				55,041
Software - 1.3%
Acxiom Corp.*		221,037		3,859
Advent Software, Inc.*		23,583		504
Blackbaud, Inc.		20,098		459
Digi International, Inc.*		285,995		2,708
Ebix, Inc.		52,065		837
Fair Isaac Corp.		22,886		962
MicroStrategy, Inc., Class A*		5,005		467
Parametric Technology Corp.*		54,373		1,224
Progress Software Corp.*		87,049		1,827
Schawk, Inc.		160,842		2,117
SS&C Technologies Holdings, Inc.*		37,017		856

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
Software - 1.3% continued
SYNNEX Corp.*		176,688	$	6,074
Take-Two Interactive Software, Inc.*		199,325		2,195
				24,089
Storage/Warehousing - 0.3%
Mobile Mini, Inc.*		242,828		5,058
Telecommunications - 2.3%
Arris Group, Inc.*		308,262		4,605
Black Box Corp.		131,830		3,209
Comtech Telecommunications Corp.		58,734		1,491
Consolidated Communications Holdings, Inc.		7,413		118
EarthLink, Inc.		582,883		3,765
Extreme Networks, Inc.*		384,835		1,401
Finisar Corp.*		334,897		5,459
General Communication, Inc., Class A*		222,369		2,132
NETGEAR, Inc.*		84,310		3,323
Oplink Communications, Inc.*		136,559		2,128
Plantronics, Inc.		128,148		4,725
Premiere Global Services, Inc.*		354,896		3,471
RF Micro Devices, Inc.*		904,593		4,053
Telephone & Data Systems, Inc.		135,856		3,008
				42,888
Textiles - 0.7%
G&K Services, Inc., Class A		129,978		4,439
UniFirst Corp.		112,380		8,240
				12,679
Toys, Games & Hobbies - 0.1%
JAKKS Pacific, Inc.		193,759		2,426
Transportation - 1.6%
Atlas Air Worldwide Holdings, Inc.*		82,111		3,638
Bristow Group, Inc.		180,067		9,662
Gulfmark Offshore, Inc., Class A		191,713		6,605
PHI, Inc. (Non Voting)*		80,019		2,680
Saia, Inc.*		102,992		2,381
Ship Finance International Ltd.		265,847		4,421
Universal Truckload Services, Inc.		22,608		413
				29,800
Trucking & Leasing - 0.7%
Amerco, Inc.		72,446		9,187
Greenbrier Cos., Inc.*		13,194		213
TAL International Group, Inc.		90,106		3,278
Willis Lease Finance Corp.*		30,530		437
				13,115
Total Common Stocks (Cost $1,467,540)				1,779,033
CONVERTIBLE PREFERRED STOCKS - 0.0%
Healthcare - Products - 0.0%
Alere, Inc.		3,306		612
Total Convertible Preferred Stocks (Cost $723)				612
OTHER - 0.0%(2)
Escrow DLB Oil & Gas*		2,100		—
Escrow Gerber Scientific, Inc.*		264,734		—
Total Other (Cost $ — )				—
INVESTMENT COMPANIES - 2.7%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(3)(4)		50,544,709		50,545
Total Investment Companies (Cost $50,545)				50,545
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.2%
U.S. Treasury Bill,
0.14%, 4/25/13(5)	$	3,149	$	3,148
Total Short-Term Investments (Cost $3,148)				3,148
Total Investments - 99.8% (Cost $1,521,956)				1,833,338
Other Assets less Liabilities - 0.2%				2,950
NET ASSETS - 100.0%			$	1,836,288

(1) Security has been deemed worthless by the Northern Trust Global Investments Pricing and Valuation Committee (“NTGI PVC”) and is a Level 3 investment.

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

(3) 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 $50,072,000 during the nine months ended December 31, 2012.

EQUITY FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

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

(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 December 31, 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 MidCap 400		93	$	9,468		Long		3/13	$	115
Russell 2000 Mini Index		550		46,563		Long		3/13		990
Total									$	1,105

At December 31, 2012, the industry sectors for the Small Cap Value Fund were:

INDUSTRY SECTOR	% OF  LONG-TERM INVESTMENTS
Consumer Discretionary		11.9	%
Consumer Staples		2.4
Energy		6.3
Financials		36.2
Health Care		4.5
Industrials		13.9
Information Technology		12.3
Materials		6.0
Telecommunication Services		0.5
Utilities		6.0
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 Value Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	1,779,033	(1)	$	—	$	—	$	1,779,033
Convertible Preferred Stocks		612	(1)		—		—		612
Investment Companies		50,545			—		—		50,545
Short-Term Investments		—			3,148		—		3,148
Total Investments	$	1,830,190		$	3,148	$	—	$	1,833,338
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	1,105		$	—	$	—	$	1,105

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,523,469
Gross tax appreciation of investments	$	359,732
Gross tax depreciation of investments		(49,863	)
Net tax appreciation of investments	$	309,869

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP VALUE 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 APPRE- CIATION (000S)		CHANGE IN UNREALIZED DEPRE- CIATION (000S)		PUR- CHASES (000S)		SALES (000S)			TRANS- FERS INTO LEVEL 3 (000S)		TRANS- FERS OUT  OF LEVEL 3 (000S)		BALANCE AS OF 12/31/12 (000S)
Common Stock
Biotechnology	$	173	$	—	$	(1,161	)	$	1,033	$	—	$	—	$	(45	)	$	—	$	—	$	—

EQUITY FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

TECHNOLOGY FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 98.3%
Biotechnology - 3.9%
Biogen Idec, Inc.*		12,858	$	1,886
Celgene Corp.*		14,699		1,157
Dynavax Technologies Corp.*		121,308		347
				3,390
Computers - 20.8%
Accenture PLC, Class A		13,138		874
Apple, Inc.		7,884		4,202
Cognizant Technology Solutions Corp., Class A*		28,615		2,119
EMC Corp.*		76,029		1,923
Fortinet, Inc.*		60,752		1,280
Fusion-io, Inc.*		31,929		732
Hewlett-Packard Co.		33,102		472
International Business Machines Corp.		6,551		1,255
NetApp, Inc.*		25,639		860
Qualys, Inc.*		31,554		467
Riverbed Technology, Inc.*		55,564		1,096
SanDisk Corp.*		18,971		826
Teradata Corp.*		31,826		1,970
				18,076
Electronics - 2.4%
FEI Co.		16,416		911
Trimble Navigation Ltd.*		20,043		1,198
				2,109
Healthcare - Products - 2.3%
Intuitive Surgical, Inc.*		2,371		1,163
St. Jude Medical, Inc.		22,498		813
				1,976
Internet - 15.1%
Amazon.com, Inc.*		3,757		943
Bazaarvoice, Inc.*		47,446		444
ExactTarget, Inc.*		23,029		461
F5 Networks, Inc.*		29,733		2,888
GOOGLE, Inc., Class A*		7,894		5,600
LinkedIn Corp., Class A*		6,941		797
Rackspace Hosting, Inc.*		12,350		917
TIBCO Software, Inc.*		46,267		1,018
				13,068
Miscellaneous Manufacturing - 1.0%
Danaher Corp.		15,875		887
Pharmaceuticals - 3.3%
Allergan, Inc.		11,503		1,055
BioMarin Pharmaceutical, Inc.*		28,848		1,421
Idenix Pharmaceuticals, Inc.*		77,201		374
				2,850
Real Estate Investment Trusts - 1.9%
American Tower Corp.		12,432		961
Digital Realty Trust, Inc.		10,327		701
				1,662
Semiconductors - 16.8%
Altera Corp.		46,408		1,598
ARM Holdings PLC ADR		50,141		1,897
ASML Holding N.V. (Registered)		19,580		1,261
Broadcom Corp., Class A		28,611		950
Intel Corp.		40,127		828
KLA-Tencor Corp.		23,697		1,132
Linear Technology Corp.		31,094		1,067
Mellanox Technologies Ltd.*		7,779		462
Microchip Technology, Inc.		42,328		1,379
QUALCOMM, Inc.		42,145		2,614
Xilinx, Inc.		37,083		1,331
				14,519
Software - 20.8%
Activision Blizzard, Inc.		134,631		1,430
Check Point Software Technologies Ltd.*		49,600		2,363
Citrix Systems, Inc.*		29,574		1,945
Informatica Corp.*		57,007		1,728
Microsoft Corp.		24,131		645
Oracle Corp.		78,132		2,603
Proofpoint, Inc.*		36,649		451
QLIK Technologies, Inc.*		43,150		937
Red Hat, Inc.*		29,891		1,583
Salesforce.com, Inc.*		8,553		1,438
SciQuest, Inc.*		29,222		463
SolarWinds, Inc.*		14,766		775
VMware, Inc., Class A*		18,033		1,698
				18,059
Telecommunications - 10.0%
Amdocs Ltd.		33,881		1,152
Aruba Networks, Inc.*		74,068		1,537
Cisco Systems, Inc.		126,569		2,487
Juniper Networks, Inc.*		56,489		1,111
LogMeIn, Inc.*		40,136		899
Polycom, Inc.*		79,052		827

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY FUNDS

SCHEDULE OF INVESTMENTS

TECHNOLOGY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 98.3% continued
Telecommunications - 10.0% continued
Procera Networks, Inc.*		36,831	$	683
				8,696
Total Common Stocks (Cost $78,501)				85,292
INVESTMENT COMPANIES - 11.2%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1) (2)		9,710,591		9,711
Total Investment Companies (Cost $9,711)				9,711
Total Investments - 109.5% (Cost $88,212)				95,003
Liabilities less Other Assets - (9.5)%				(8,236	)
NET ASSETS - 100.0%			$	86,767

(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 purchases of approximately $7,397,000 during the nine months ended December 31, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Technology Fund were:

INDUSTRY SECTOR	% OF  LONG-TERM INVESTMENTS
Consumer Discretionary		1.1	%
Financials		2.0
Health Care		9.6
Industrials		1.0
Information Technology		86.3
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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	85,292	(1)	$	—	$	—	$	85,292
Investment Companies		9,711			—		—		9,711
Total Investments	$	95,003		$	—	$	—	$	95,003

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	89,146
Gross tax appreciation of investments	$	10,813
Gross tax depreciation of investments		(4,956	)
Net tax appreciation of investments	$	5,857

EQUITY FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2%
Brazil - 6.1%
All America Latina Logistica S.A.		221,728	$	900
Amil Participacoes S.A.		62,859		947
Anhanguera Educacional Participacoes S.A.		61,605		1,040
Arteris S.A.		58,100		538
Banco Bradesco S.A.		230,236		3,816
Banco Bradesco S.A. ADR		90,116		1,565
Banco do Brasil S.A.		290,444		3,631
Banco Santander Brasil S.A.		233,736		1,709
Banco Santander Brasil S.A. ADR		152,910		1,112
BM&FBovespa S.A.		896,961		6,133
BR Malls Participacoes S.A.		207,715		2,741
BR Properties S.A.		92,500		1,152
BRF - Brasil Foods S.A.		328,320		6,765
CCR S.A.		444,400		4,222
Centrais Eletricas Brasileiras S.A.		141,951		439
CETIP S.A. - Mercados Organizados		101,856		1,263
Cia de Bebidas das Americas		70,200		2,870
Cia de Saneamento Basico do Estado de Sao Paulo		57,157		2,425
Cia de Saneamento de Minas Gerais-COPASA		29,700		635
Cia Hering		69,261		1,420
Cia Siderurgica Nacional S.A.		364,590		2,112
Cielo S.A.		148,493		4,133
Cosan S.A. Industria e Comercio		61,447		1,253
CPFL Energia S.A.		121,120		1,266
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		148,172		1,295
Diagnosticos da America S.A.		116,342		749
Duratex S.A.		123,606		897
EcoRodovias Infraestrutura e Logistica S.A.		84,070		710
EDP - Energias do Brasil S.A.		117,405		716
Embraer S.A.		280,462		1,979
Fibria Celulose S.A.*		123,917		1,366
Hypermarcas S.A.*		173,858		1,411
JBS S.A.*		213,936		627
Kroton Educacional S.A.*		36,300		820
Light S.A.		31,200		340
Localiza Rent a Car S.A.		66,076		1,210
Lojas Americanas S.A.		62,700		546
Lojas Renner S.A.		62,039		2,416
MPX Energia S.A.*		72,700		396
MRV Engenharia e Participacoes S.A.		158,893		930
Multiplan Empreendimentos Imobiliarios S.A.		38,020		1,118
Multiplus S.A.		23,500		548
Natura Cosmeticos S.A.		86,714		2,483
Odontoprev S.A.		129,650		679
OGX Petroleo e Gas Participacoes S.A.*		650,623		1,392
Oi S.A.		116,832		523
Oi S.A. ADR		24,810		100
PDG Realty S.A. Empreendimentos e Participacoes		579,124		936
Petroleo Brasileiro S.A.		1,385,478		13,229
Petroleo Brasileiro S.A. ADR		73,373		1,416
Petroleo Brasileiro S.A. ADR (New York Exchange)		53,500		1,042
Porto Seguro S.A.		56,408		647
Qualicorp S.A.*		71,200		738
Raia Drogasil S.A.		100,107		1,128
Souza Cruz S.A.		191,740		2,885
Sul America S.A.		55,352		479
Tim Participacoes S.A.		423,836		1,697
Totvs S.A.		55,955		1,104
Tractebel Energia S.A.		82,038		1,336
Ultrapar Participacoes S.A.		164,824		3,726
Vale S.A.		589,462		12,172
Vale S.A. ADR		66,608		1,396
WEG S.A.		109,700		1,447
				122,716
Chile - 1.6%
AES Gener S.A.		1,238,207		795
Aguas Andinas S.A., Class A		1,160,007		823
Banco de Chile		9,337,586		1,509
Banco de Credito e Inversiones		15,811		1,088
Banco Santander Chile		33,026,951		2,326
CAP S.A.		37,023		1,242
Cencosud S.A.		500,602		2,714
Cia Cervecerias Unidas S.A.		55,602		876
Colbun S.A.*		3,986,876		1,100
Corpbanca S.A.		50,285,247		675
E.CL S.A.		257,460		605
Empresa Nacional de Electricidad S.A. ADR		3,800		186
Empresa Nacional de Electricidad S.A.		1,526,549		2,481
Empresas CMPC S.A.		569,520		2,103
Empresas COPEC S.A.		226,999		3,220
Enersis S.A.		6,094,797		2,238
Enersis S.A. ADR		9,024		164
ENTEL Chile S.A.		58,656		1,213

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
Chile - 1.6% continued
Latam Airlines Group S.A.		93,814	$	2,205
Latam Airlines Group S.A. ADR		8,335		196
Latam Airlines Group S.A. BDR*		30,812		707
S.A.C.I. Falabella		246,405		2,538
Sociedad Quimica y Minera de Chile S.A. ADR		3,193		184
Vina Concha y Toro S.A.		216,249		421
				31,609
China - 18.0%
Agile Property Holdings Ltd.		690,000		988
Agricultural Bank of China Ltd., Class H		10,774,367		5,418
Air China Ltd., Class H		922,705		787
Airtac International Group		43,000		250
Aluminum Corp. of China Ltd., Class H*		2,005,435		941
Angang Steel Co. Ltd., Class H*		556,798		423
Anhui Conch Cement Co. Ltd., Class H		620,075		2,307
Anta Sports Products Ltd.		447,432		402
AviChina Industry & Technology Co. Ltd., Class H		970,313		436
Bank of China Ltd., Class H		37,730,652		17,081
Bank of Communications Co. Ltd., Class H		3,506,117		2,679
BBMG Corp., Class H		538,841		502
Beijing Capital International Airport Co. Ltd., Class H		926,000		670
Beijing Enterprises Holdings Ltd.		258,271		1,693
Belle International Holdings Ltd.		2,327,000		5,139
Bosideng International Holdings Ltd.		1,391,677		417
Brilliance China Automotive Holdings Ltd.*		1,259,944		1,577
Byd Co. Ltd., Class H*		262,199		801
China Agri-Industries Holdings Ltd.		1,305,492		734
China BlueChemical Ltd., Class H		890,851		598
China Citic Bank Corp. Ltd., Class H		3,738,286		2,253
China Coal Energy Co. Ltd., Class H		2,056,232		2,299
China Communications Construction Co. Ltd., Class H		2,229,287		2,189
China Communications Services Corp. Ltd., Class H		1,167,035		678
China Construction Bank Corp., Class H		36,179,410		29,486
China COSCO Holdings Co. Ltd., Class H*		1,270,221		640
China Everbright Ltd.		421,110		828
China Gas Holdings Ltd.		1,607,495		1,277
China International Marine Containers Group Co. Ltd., Class H*		317,100		486
China Life Insurance Co. Ltd., Class H		3,732,544		12,310
China Longyuan Power Group Corp., Class H		1,085,473		763
China Mengniu Dairy Co. Ltd.		624,000		1,775
China Merchants Bank Co. Ltd., Class H		1,968,857		4,415
China Merchants Holdings International Co. Ltd.		575,871		1,879
China Minsheng Banking Corp. Ltd., Class H		2,607,927		3,083
China Mobile Ltd.		3,025,712		35,443
China National Building Material Co. Ltd., Class H		1,480,000		2,220
China Oilfield Services Ltd., Class H		771,558		1,606
China Overseas Land & Investment Ltd.		2,056,475		6,229
China Pacific Insurance Group Co. Ltd., Class H		1,188,337		4,457
China Petroleum & Chemical Corp., Class H		8,409,835		9,655
China Railway Construction Corp. Ltd., Class H		979,500		1,126
China Railway Group Ltd., Class H		2,010,827		1,183
China Resources Cement Holdings Ltd.		952,720		642
China Resources Enterprise Ltd.		603,628		2,193
China Resources Gas Group Ltd.		439,958		910
China Resources Land Ltd.		1,023,756		2,815
China Resources Power Holdings Co. Ltd.		970,900		2,494
China Shanshui Cement Group Ltd.		936,907		703
China Shenhua Energy Co. Ltd., Class H		1,702,136		7,594
China Shipping Container Lines Co. Ltd., Class H*		1,843,695		545
China Shipping Development Co. Ltd., Class H		646,095		380
China Southern Airlines Co. Ltd., Class H		893,995		456
China State Construction International Holdings Ltd.		862,534		1,049
China Taiping Insurance Holdings Co. Ltd.*		426,060		867
China Telecom Corp. Ltd., Class H		6,996,339		3,920
China Unicom Hong Kong Ltd.		2,378,494		3,857
China Vanke Co. Ltd., Class B		646,172		1,042
Chongqing Rural Commercial Bank, Class H		1,163,434		648
Citic Pacific Ltd.		635,095		961
CITIC Securities Co. Ltd., Class H		522,000		1,337
CNOOC Ltd.		8,958,433		19,671
COSCO Pacific Ltd.		830,943		1,210
Country Garden Holdings Co. Ltd.*		2,244,472		1,201
CSR Corp. Ltd., Class H		971,669		865

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
China - 18.0% continued
Dah Chong Hong Holdings Ltd.		407,000	$	434
Daphne International Holdings Ltd.		443,100		614
Datang International Power Generation Co. Ltd., Class H		1,443,875		554
Dongfang Electric Corp. Ltd., Class H		160,800		331
Dongfeng Motor Group Co. Ltd., Class H		1,359,169		2,140
ENN Energy Holdings Ltd.		375,279		1,641
Evergrande Real Estate Group Ltd.		2,599,116		1,475
Far East Horizon Ltd.		651,000		530
Fosun International Ltd.		788,660		510
Franshion Properties China Ltd.		1,575,791		572
GCL-Poly Energy Holdings Ltd.		3,913,675		807
Geely Automobile Holdings Ltd.		1,863,423		889
Golden Eagle Retail Group Ltd.		332,675		829
GOME Electrical Appliances Holding Ltd.*		4,950,874		593
Great Wall Motor Co. Ltd., Class H		518,932		1,663
Guangdong Investment Ltd.		1,256,514		988
Guangzhou Automobile Group Co. Ltd., Class H		1,103,760		992
Guangzhou R&F Properties Co. Ltd., Class H		465,214		786
Haier Electronics Group Co. Ltd.*		412,000		606
Haitong Securities Co. Ltd.*		441,600		767
Hengan International Group Co. Ltd.		372,898		3,370
Huabao International Holdings Ltd.		1,008,000		499
Huaneng Power International, Inc., Class H		1,658,501		1,539
Industrial & Commercial Bank of China Ltd., Class H		32,647,515		23,544
Inner Mongolia Yitai Coal Co. Ltd., Class B		308,398		1,759
Intime Department Store Group Co. Ltd.		491,635		585
Jiangsu Expressway Co. Ltd., Class H		576,000		597
Jiangxi Copper Co. Ltd., Class H		700,000		1,882
Kingboard Chemical Holdings Ltd.		302,257		1,088
Kunlun Energy Co. Ltd.		1,619,230		3,399
Lee & Man Paper Manufacturing Ltd.		922,248		587
Lenovo Group Ltd.		3,120,000		2,856
Longfor Properties Co. Ltd.		670,231		1,336
MMG Ltd.*		799,488		339
Nine Dragons Paper Holdings Ltd.		833,923		772
Parkson Retail Group Ltd.		685,500		561
PetroChina Co. Ltd., Class H		10,577,438		15,192
PICC Property & Casualty Co. Ltd., Class H		1,331,733		1,890
Ping An Insurance Group Co. of China Ltd., Class H		941,953		8,016
Poly Property Group Co. Ltd.*		997,737		793
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		792,116		791
Shanghai Electric Group Co. Ltd., Class H		1,390,000		604
Shanghai Industrial Holdings Ltd.		275,043		972
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		303,500		584
Shimao Property Holdings Ltd.		700,903		1,348
Shougang Fushan Resources Group Ltd.		1,577,933		589
Shui On Land Ltd.		1,374,144		668
Sihuan Pharmaceutical Holdings Group Ltd.		913,063		403
Sino-Ocean Land Holdings Ltd.		1,426,330		1,089
Sinopec Shanghai Petrochemical Co. Ltd., Class H		1,160,670		416
Sinopharm Group Co. Ltd., Class H		389,583		1,237
SOHO China Ltd.		1,061,278		860
Sun Art Retail Group Ltd.		1,198,500		1,852
Tencent Holdings Ltd.		509,614		16,585
Tingyi Cayman Islands Holding Corp.		980,435		2,730
Tsingtao Brewery Co. Ltd., Class H		149,767		888
Uni-President China Holdings Ltd.		532,000		566
Want Want China Holdings Ltd.		2,989,870		4,165
Weichai Power Co. Ltd., Class H		246,953		1,121
Wumart Stores, Inc., Class H		253,470		551
Yanzhou Coal Mining Co. Ltd., Class H		1,013,138		1,711
Yingde Gases Group Co.		444,700		458
Yuexiu Property Co. Ltd.		2,519,393		807
Zhaojin Mining Industry Co. Ltd., Class H		447,274		709
Zhejiang Expressway Co. Ltd., Class H		723,294		572
Zhongsheng Group Holdings Ltd.		285,500		436
Zhuzhou CSR Times Electric Co. Ltd., Class H		226,930		857
Zijin Mining Group Co. Ltd., Class H		3,030,162		1,218
Zoomlion Heavy Industry Science and Technology Co. Ltd., Class H		682,147		1,030
ZTE Corp., Class H		311,298		540
				360,165

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
Colombia - 1.0%
Almacenes Exito S.A.		101,186	$	2,033
Bancolombia S.A.		115,235		1,957
Bancolombia S.A. ADR		8,252		549
Bolsa de Valores de Colombia		405,087		574
Cementos Argos S.A.		198,491		1,135
Corp. Financiera Colombiana S.A.		37,063		765
Ecopetrol S.A.		2,442,489		7,547
Ecopetrol S.A. ADR		1,600		96
Grupo Argos S.A.		146,519		1,741
Grupo de Inversiones Suramericana S.A.		119,749		2,575
Interconexion Electrica S.A. ESP		192,443		1,046
				20,018
Czech Republic - 0.3%
CEZ A.S.		80,819		2,907
Komercni Banka A.S.		7,620		1,612
Telefonica Czech Republic A.S.		57,114		972
				5,491
Egypt - 0.3%
Commercial International Bank
Egypt S.A.E.		287,094		1,561
Egyptian Financial Group-Hermes Holding*		179,247		310
Egyptian Kuwaiti Holding Co. S.A.E.		327,594		419
National Societe Generale Bank S.A.E.		52,994		294
Orascom Construction Industries*		48,379		1,920
Orascom Telecom Holding S.A.E.*		1,305,820		815
Talaat Moustafa Group*		455,407		317
Telecom Egypt Co.		168,202		374
				6,010
Hong Kong - 0.0%
China Foods Ltd.		414,000		384
Hungary - 0.2%
Magyar Telekom Telecommunications PLC		225,761		384
MOL Hungarian Oil and Gas PLC		21,094		1,712
OTP Bank PLC		112,881		2,146
				4,242
India - 6.5%
ACC Ltd.		24,625		646
Adani Enterprises Ltd.		106,994		532
Adani Ports and Special Economic Zone		207,961		514
Aditya Birla Nuvo Ltd.		16,342		328
Ambuja Cements Ltd.		310,599		1,145
Asian Paints Ltd.		14,220		1,159
Axis Bank Ltd.		115,613		2,891
Bajaj Auto Ltd.		42,051		1,632
Bank of Baroda		41,124		660
Bank of India		55,686		353
Bharat Heavy Electricals Ltd.		297,715		1,260
Bharat Petroleum Corp. Ltd.		85,587		559
Bharti Airtel Ltd.		292,900		1,702
Cairn India Ltd.		236,833		1,387
Canara Bank		44,195		404
Cipla Ltd.		172,136		1,306
Coal India Ltd.		250,824		1,624
Dabur India Ltd.		202,586		478
Divi’s Laboratories Ltd.		19,866		402
DLF Ltd.		204,398		872
Dr. Reddy’s Laboratories Ltd.		36,532		1,219
Dr. Reddy’s Laboratories Ltd. ADR		15,005		500
GAIL India Ltd.		193,047		1,268
Godrej Consumer Products Ltd.		58,401		772
HCL Technologies Ltd.		102,954		1,166
HDFC Bank Ltd.		672,852		8,358
HDFC Bank Ltd. ADR		31,500		1,283
Hero Motocorp Ltd.		20,541		719
Hindalco Industries Ltd.		521,111		1,258
Hindustan Unilever Ltd.		434,539		4,171
Housing Development Finance Corp.		733,119		11,183
ICICI Bank Ltd.		155,398		3,273
ICICI Bank Ltd. ADR		29,471		1,285
Idea Cellular Ltd.*		342,525		653
IDFC Ltd.		549,404		1,728
Infosys Ltd.		172,800		7,379
Infosys Ltd. ADR		43,137		1,825
ITC Ltd.		1,101,883		5,776
Jaiprakash Associates Ltd.		469,844		847
Jindal Steel & Power Ltd.		194,487		1,597
JSW Steel Ltd.		38,276		572
Kotak Mahindra Bank Ltd.		143,750		1,713
Larsen & Toubro Ltd.		100,918		2,997
Larsen & Toubro Ltd. GDR (Registered)		4,700		138
LIC Housing Finance Ltd.		145,769		778
Lupin Ltd.		73,789		833
Mahindra & Mahindra Ltd.		156,635		2,687
Maruti Suzuki India Ltd.		17,079		468
NTPC Ltd.		281,325		807
Oil & Natural Gas Corp. Ltd.		385,636		1,910
Piramal Enterprises Ltd.		34,562		329

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
India - 6.5% continued
Power Finance Corp. Ltd.		137,122	$	513
Power Grid Corp. of India Ltd.		560,606		1,178
Ranbaxy Laboratories Ltd.*		64,946		599
Reliance Capital Ltd.		49,297		437
Reliance Communications Ltd.		265,352		360
Reliance Industries Ltd.		509,706		7,897
Reliance Industries Ltd. GDR (1) (2)		70,126		2,163
Reliance Infrastructure Ltd.		51,436		496
Reliance Power Ltd.*		292,387		501
Rural Electrification Corp. Ltd.		148,986		662
Satyam Computer Services Ltd.*		328,145		651
Sesa Goa Ltd.		175,980		632
Shriram Transport Finance Co. Ltd.		62,846		864
Siemens Ltd.		32,757		400
State Bank of India		68,299		3,019
Sterlite Industries India Ltd.		646,802		1,387
Sterlite Industries India Ltd. ADR		5,200		45
Sun Pharmaceutical Industries Ltd.		154,728		2,083
Tata Consultancy Services Ltd.		234,969		5,401
Tata Motors Ltd.		347,306		1,989
Tata Motors Ltd. ADR		6,700		192
Tata Power Co. Ltd.		487,387		986
Tata Steel Ltd.		151,835		1,186
Titan Industries Ltd.		107,460		555
Ultratech Cement Ltd.		17,885		652
Unitech Ltd.*		627,301		390
United Breweries Ltd.		32,628		552
United Spirits Ltd.		42,830		1,484
Wipro Ltd.		224,649		1,633
Wipro Ltd. ADR		22,616		198
Zee Entertainment Enterprises Ltd.		231,094		935
				129,386
Indonesia - 2.5%
Adaro Energy Tbk PT		7,149,220		1,184
Astra Agro Lestari Tbk PT		190,537		391
Astra International Tbk PT		10,156,760		8,036
Bank Central Asia Tbk PT		6,146,192		5,823
Bank Danamon Indonesia Tbk PT		1,647,943		967
Bank Mandiri Persero Tbk PT		4,687,455		3,964
Bank Negara Indonesia Persero Tbk PT		3,717,409		1,433
Bank Rakyat Indonesia Persero Tbk PT		5,534,158		4,030
Bumi Resources Tbk PT		7,156,712		440
Charoen Pokphand Indonesia Tbk PT		3,712,935		1,418
Global Mediacom Tbk PT		3,220,000		803
Gudang Garam Tbk PT		238,415		1,397
Indo Tambangraya Megah Tbk PT		197,278		852
Indocement Tunggal Prakarsa Tbk PT		755,303		1,765
Indofood Sukses Makmur Tbk PT		2,171,871		1,320
Indosat Tbk PT		662,347		444
Jasa Marga Persero Tbk PT		995,000		564
Kalbe Farma Tbk PT		11,405,580		1,259
Media Nusantara Citra Tbk PT		2,049,500		533
Perusahaan Gas Negara Persero Tbk PT		5,479,112		2,622
Semen Gresik Persero Tbk PT		1,491,255		2,457
Tambang Batubara Bukit Asam Persero Tbk PT		418,000		658
Telekomunikasi Indonesia Persero Tbk PT		5,060,173		4,761
Unilever Indonesia Tbk PT		773,028		1,677
United Tractors Tbk PT		841,571		1,730
XL Axiata Tbk PT		1,253,860		744
				51,272
Malaysia - 3.4%
AirAsia Bhd.		611,900		551
Alliance Financial Group Bhd.		513,600		740
AMMB Holdings Bhd.		829,237		1,842
Axiata Group Bhd.		1,299,725		2,808
Berjaya Sports Toto Bhd.		328,157		479
British American Tobacco Malaysia Bhd.		57,500		1,167
Bumi Armada Bhd.		583,500		760
CIMB Group Holdings Bhd.		2,426,800		6,062
DiGi.Com Bhd.		1,561,100		2,703
Felda Global Ventures Holdings Bhd.		545,600		825
Gamuda Bhd.		828,100		987
Genting Bhd.		1,037,700		3,133
Genting Malaysia Bhd.		1,531,800		1,785
Genting Plantations Bhd.		115,200		340
Hong Leong Bank Bhd.		279,540		1,354
Hong Leong Financial Group Bhd.		102,900		445
IHH Healthcare Bhd.*		994,400		1,101
IJM Corp. Bhd.		594,420		971
IOI Corp. Bhd.		1,635,640		2,728
Kuala Lumpur Kepong Bhd.		238,350		1,875
Lafarge Malayan Cement Bhd.		187,600		592
Malayan Banking Bhd.		2,072,761		6,237
Malaysia Airports Holdings Bhd.		270,913		462
Malaysia Marine and Heavy Engineering Holdings Bhd.		236,447		343
Maxis Bhd.		1,126,651		2,454

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
Malaysia - 3.4% continued
MISC Bhd.*		568,560	$	801
MMC Corp. Bhd.		382,575		329
Parkson Holdings Bhd.		292,643		500
Petronas Chemicals Group Bhd.		1,399,600		2,927
Petronas Dagangan Bhd.		125,600		962
Petronas Gas Bhd.		297,700		1,903
PPB Group Bhd.		236,800		899
Public Bank Bhd.		9,913		53
Public Bank Bhd. (Registered)		525,600		2,806
RHB Capital Bhd.		308,237		776
Sapurakencana Petroleum Bhd.*		1,114,600		1,153
Sime Darby Bhd.		1,356,815		4,228
Telekom Malaysia Bhd.		547,800		1,083
Tenaga Nasional Bhd.		1,390,350		3,155
UEM Land Holdings Bhd.*		737,717		510
UMW Holdings Bhd.		260,400		1,018
YTL Corp. Bhd.		2,408,880		1,499
YTL Power International Bhd.		1,082,199		553
				67,899
Mexico - 5.0%
Alfa S.A.B. de C.V., Series A		1,422,780		3,025
Alpek S.A. de C.V.		207,960		561
America Movil S.A.B. de C.V., Series L		19,541,879		22,511
Arca Continental S.A.B. de C.V.		162,384		1,209
Cemex S.A.B. de C.V., Series CPO*		5,315,277		5,235
Coca-Cola Femsa S.A.B. de C.V., Series L		217,022		3,226
Compartamos S.A.B. de C.V.		537,772		768
Controladora Comercial Mexicana S.A.B.de C.V., Series UBC		189,500		663
El Puerto de Liverpool S.A.B. de C.V., Series C1		91,900		972
Fomento Economico Mexicano S.A.B. de C.V., Series UBD		976,077		9,774
Grupo Aeroportuario del Pacifico S.A.B.de C.V., Series B		158,652		906
Grupo Aeroportuario del Sureste S.A.B. de C.V., Class B		105,600		1,201
Grupo Bimbo S.A.B. de C.V., Series A		828,328		2,145
Grupo Carso S.A.B. de C.V., Series A1		283,106		1,391
Grupo Financiero Banorte S.A.B. de C.V., Series O		936,759		6,049
Grupo Financiero Inbursa S.A.B. de C.V., Class O		1,003,184		3,041
Grupo Financiero Santander Mexico S.A.B. de C.V., Class B		750,200		2,415
Grupo Mexico S.A.B. de C.V., Series B		1,919,336		6,924
Grupo Modelo S.A.B. de C.V., Series C		318,605		2,858
Grupo Televisa S.A.B., Series CPO		1,291,614		6,823
Industrias C.H. S.A.B. de C.V., Series B*		86,037		649
Industrias Penoles S.A.B. de C.V.		70,272		3,545
Kimberly-Clark de Mexico S.A.B. de C.V., Series A		795,927		2,044
Mexichem S.A.B. de C.V.		518,234		2,879
Minera Frisco S.A.B. de C.V., Series A1*		314,306		1,325
Wal-Mart de Mexico S.A.B. de C.V., Series V		2,669,737		8,712
				100,851
Morocco - 0.1%
Attijariwafa Bank		15,093		558
Douja Promotion Groupe Addoha S.A.		61,138		456
Maroc Telecom S.A.		42,812		536
				1,550
Peru - 0.4%
Cia de Minas Buenaventura S.A. ADR		96,506		3,469
Credicorp Ltd.		34,052		4,991
				8,460
Philippines - 0.9%
Aboitiz Equity Ventures, Inc.		976,339		1,258
Aboitiz Power Corp.		912,944		822
Alliance Global Group, Inc.		2,021,224		826
Ayala Corp.		89,747		1,129
Ayala Land, Inc.		2,766,880		1,788
Bank of the Philippine Islands		363,192		842
BDO Unibank, Inc.*		725,996		1,290
DMCI Holdings, Inc.		389,600		511
Energy Development Corp.		3,723,650		613
Globe Telecom, Inc.		16,060		428
International Container Terminal Services, Inc.		383,310		692
Jollibee Foods Corp.		210,473		525
Metropolitan Bank & Trust		102,242		255
Philippine Long Distance Telephone Co.		21,780		1,345
San Miguel Corp.		232,830		598
SM Investments Corp.		109,617		2,356
SM Prime Holdings, Inc.		3,516,913		1,416
Universal Robina Corp.		433,700		881
				17,575

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
Poland - 1.5%
Asseco Poland S.A.		34,864	$	509
Bank Handlowy w Warszawie S.A.		15,852		506
Bank Millennium S.A.*		215,800		309
Bank Pekao S.A.		59,768		3,261
BRE Bank S.A.*		7,481		793
Cyfrowy Polsat S.A.*		96,984		516
Enea S.A.		56,433		289
Eurocash S.A.		34,481		485
Grupa Lotos S.A.*		32,392		434
Jastrzebska Spolka Weglowa S.A.		17,064		513
KGHM Polska Miedz S.A.		70,416		4,378
PGE S.A.		374,431		2,208
Polski Koncern Naftowy Orlen S.A.*		160,903		2,600
Polskie Gornictwo Naftowe i Gazownictwo S.A.*		887,184		1,510
Powszechna Kasa Oszczednosci Bank Polski S.A.		376,621		4,543
Powszechny Zaklad Ubezpieczen S.A.		28,304		4,019
Synthos S.A.		264,961		467
Tauron Polska Energia S.A.		513,308		789
Telekomunikacja Polska S.A.		369,247		1,463
				29,592
Russia - 5.6%
Federal Grid Co. Unified Energy System JSC*		158,704,477		1,044
Federal Hydrogenerating Co. JSC		35,863,245		861
Federal Hydrogenerating Co. JSC ADR		279,869		656
Gazprom OAO		1,336,583		6,287
Gazprom OAO ADR		1,988,210		19,065
Gazprom OAO ADR (OTC Exchange)		15,600		152
IDGC Holding JSC*		9,446,000		605
Inter Rao Ues OAO*		955,364,281		776
LSR Group OJSC GDR (Registered)		101,447		424
Lukoil OAO		71,708		4,695
Lukoil OAO ADR		3,700		245
Lukoil OAO ADR (London Exchange)		165,685		11,077
Lukoil OAO ADR (OTC Exchange)		14,973		1,011
Magnit OJSC		2,711		425
Magnit OJSC GDR (Registered)		119,341		4,832
Mechel		1,951		13
Mechel ADR		67,956		471
MegaFon OAO GDR*		43,331		1,022
MMC Norilsk Nickel OJSC		13,729		2,518
MMC Norilsk Nickel OJSC ADR		80,388		1,523
MMC Norilsk Nickel OJSC ADR (London Exchange)		22,747		425
Mobile Telesystems OJSC ADR		259,050		4,831
NovaTek OAO GDR (Registered)		45,633		5,497
Novolipetsk Steel OJSC GDR (Registered)		32,112		663
Rosneft OAO		195,465		1,728
Rosneft OAO GDR (Registered)		441,221		3,984
Rostelecom OJSC		593,044		2,337
Sberbank of Russia		3,902,900		11,874
Sberbank of Russia (OTC Exchange)		56,000		172
Sberbank of Russia ADR		364,700		4,533
Severstal OAO		22,803		275
Severstal OAO GDR (Registered)		61,609		765
Sistema JSFC GDR (Registered)		60,751		1,231
Surgutneftegas OAO		1,288,823		1,131
Surgutneftegas OAO ADR		120,622		1,088
Surgutneftegas OJSC ADR (London Exchange)		112,344		1,002
Tatneft OAO		332,714		2,374
Tatneft OAO ADR		1,663		71
Tatneft OAO ADR (London Exchange)		61,329		2,710
TMK OAO GDR (Registered)		28,481		443
Uralkali OJSC		509,249		3,913
Uralkali OJSC GDR (Registered)		30,690		1,182
VTB Bank OJSC		846,000,422		1,484
VTB Bank OJSC GDR(1) (2)		11,036		39
VTB Bank OJSC GDR (Registered)		222,752		778
				112,232
South Africa - 7.6%
ABSA Group Ltd.		143,600		2,800
African Bank Investments Ltd.		358,518		1,379
African Rainbow Minerals Ltd.		54,130		1,237
Anglo American Platinum Ltd.		33,635		1,785
AngloGold Ashanti Ltd.		192,609		6,018
ArcelorMittal South Africa Ltd.*		89,296		385
Aspen Pharmacare Holdings Ltd.*		149,781		2,993
Assore Ltd.		17,690		854
Aveng Ltd.		202,329		732
Barloworld Ltd.		110,348		1,137
Bidvest Group Ltd.		148,879		3,809
Discovery Holdings Ltd.		146,864		1,081
Exxaro Resources Ltd.		62,234		1,274
FirstRand Ltd.		1,552,241		5,740
Foschini Group (The) Ltd.		102,377		1,705
Gold Fields Ltd.		366,831		4,553

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
South Africa - 7.6% continued
Growthpoint Properties Ltd.		838,867	$	2,430
Harmony Gold Mining Co. Ltd.		198,092		1,754
Impala Platinum Holdings Ltd.		269,832		5,448
Imperial Holdings Ltd.		89,909		2,133
Investec Ltd.		118,953		831
Kumba Iron Ore Ltd.		40,258		2,751
Liberty Holdings Ltd.		56,553		743
Life Healthcare Group Holdings Ltd.		474,815		1,907
Massmart Holdings Ltd.		54,451		1,231
MMI Holdings Ltd.		527,617		1,384
Mr. Price Group Ltd.		120,168		2,007
MTN Group Ltd.		850,783		17,882
Naspers Ltd., Class N		196,240		12,609
Nedbank Group Ltd.		101,935		2,280
Netcare Ltd.		432,692		1,003
Northam Platinum Ltd.		118,802		537
Pick n Pay Stores Ltd.		123,494		653
PPC Ltd.		248,015		1,003
Redefine Properties Ltd.		1,401,963		1,553
Remgro Ltd.		216,277		4,068
Reunert Ltd.		90,118		827
RMB Holdings Ltd.		349,878		1,698
RMI Holdings		333,719		825
Sanlam Ltd.		896,207		4,794
Sappi Ltd.*		274,859		1,014
Sasol Ltd.		274,706		11,926
Shoprite Holdings Ltd.		214,746		5,219
Spar Group (The) Ltd.		86,122		1,341
Standard Bank Group Ltd.		598,154		8,464
Steinhoff International Holdings Ltd.*		599,358		1,959
Tiger Brands Ltd.		81,303		3,131
Truworths International Ltd.		219,922		2,851
Vodacom Group Ltd.		186,076		2,754
Woolworths Holdings Ltd.		380,917		3,199
				151,691
South Korea - 14.4%
Amorepacific Corp.		1,612		1,833
AMOREPACIFIC Group		1,447		633
BS Financial Group, Inc.		86,872		1,079
Celltrion, Inc.		60,454		1,476
Cheil Industries, Inc.		23,800		2,106
Cheil Worldwide, Inc.		45,390		916
CJ CheilJedang Corp.		3,887		1,291
CJ Corp.		7,411		827
Coway Co. Ltd.		26,830		1,095
Daelim Industrial Co. Ltd.		13,793		1,133
Daewoo Engineering & Construction Co. Ltd.*		50,230		469
Daewoo International Corp.		22,478		838
Daewoo Securities Co. Ltd.		81,708		927
Daewoo Shipbuilding & Marine Engineering Co. Ltd.		47,270		1,213
DGB Financial Group, Inc.		68,310		932
Dongbu Insurance Co. Ltd.		21,161		911
Doosan Corp.		3,640		442
Doosan Heavy Industries & Construction Co. Ltd.		23,592		1,000
Doosan Infracore Co. Ltd.*		50,640		811
E-Mart Co. Ltd.		10,489		2,334
GS Engineering & Construction Corp.		18,198		985
GS Holdings		25,584		1,733
Hana Financial Group, Inc.		116,390		3,805
Hankook Tire Co. Ltd.*		38,348		1,695
Hanwha Chemical Corp.		42,882		741
Hanwha Corp.		23,085		743
Hanwha Life Insurance Co. Ltd.		85,460		621
Honam Petrochemical Corp.		8,598		1,993
Hyosung Corp.		11,192		776
Hyundai Department Store Co. Ltd.		7,580		1,129
Hyundai Development Co.		27,890		569
Hyundai Engineering & Construction Co. Ltd.		33,584		2,212
Hyundai Glovis Co. Ltd.		6,610		1,376
Hyundai Heavy Industries Co. Ltd.		21,014		4,795
Hyundai Hysco Co. Ltd.		15,688		670
Hyundai Marine & Fire Insurance Co. Ltd.		30,990		967
Hyundai Merchant Marine Co. Ltd.		22,919		508
Hyundai Mipo Dockyard		5,386		647
Hyundai Mobis		34,174		9,269
Hyundai Motor Co.		77,362		15,923
Hyundai Securities Co. Ltd.		57,130		484
Hyundai Steel Co.		27,984		2,313
Hyundai Wia Corp.		7,651		1,247
Industrial Bank of Korea		81,680		910
Kangwon Land, Inc.		48,450		1,330
KB Financial Group, Inc.		184,084		6,568
KCC Corp.		2,078		579
Kia Motors Corp.		132,149		7,032
Korea Aerospace Industries Ltd.		17,060		416

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
South Korea - 14.4% continued
Korea Electric Power Corp.*		128,716	$	3,672
Korea Exchange Bank*		129,110		924
Korea Gas Corp.		11,842		836
Korea Investment Holdings Co. Ltd.		19,010		762
Korea Zinc Co. Ltd.		4,252		1,621
Korean Air Lines Co. Ltd.		18,305		778
KT Corp.		12,509		416
KT Corp. ADR		6,526		109
KT&G Corp.		55,124		4,180
Kumho Petro chemical Co. Ltd.		6,955		857
LG Chem Ltd.		23,270		7,235
LG Corp.		47,982		2,941
LG Display Co. Ltd.		115,210		3,330
LG Display Co. Ltd. ADR*		3,800		55
LG Electronics, Inc.		53,546		3,699
LG Household & Health Care Ltd.		4,751		2,923
LG Innotek Co. Ltd.*		4,863		376
LG Uplus Corp.		117,762		860
Lotte Confectionery Co. Ltd.		367		561
Lotte Shopping Co. Ltd.		5,042		1,780
LS Corp.		8,641		766
LS Industrial Systems Co. Ltd.		7,290		459
Mando Corp.		6,503		785
Mirae Asset Securities Co. Ltd.		11,645		390
NCSoft Corp.		7,718		1,093
Neo Holdings Co. Ltd.*		3,640		—
NHN Corp.		20,494		4,370
OCI Co. Ltd.		7,804		1,214
Orion Corp.		1,796		1,847
POSCO		31,305		10,236
POSCO ADR		5,928		487
S1 Corp.		8,793		575
Samsung C&T Corp.		63,022		3,711
Samsung Card Co. Ltd.		21,092		720
Samsung Electro-Mechanics Co. Ltd.		30,289		2,824
Samsung Electronics Co. Ltd.		55,439		79,346
Samsung Engineering Co. Ltd.		15,057		2,346
Samsung Fire & Marine Insurance Co. Ltd.		17,895		3,648
Samsung Heavy Industries Co. Ltd.		82,200		2,991
Samsung Life Insurance Co. Ltd.		30,472		2,694
Samsung SDI Co. Ltd.		17,176		2,428
Samsung Securities Co. Ltd.		30,755		1,547
Samsung Techwin Co. Ltd.		18,518		1,038
Shinhan Financial Group Co. Ltd.		214,080		7,787
Shinsegae Co. Ltd.		3,540		725
SK C&C Co. Ltd.		11,213		1,085
SK Holdings Co. Ltd.		13,025		2,183
SK Hynix, Inc.		261,640		6,348
SK Innovation Co. Ltd.		30,107		4,939
SK Networks Co. Ltd.		61,100		485
SK Telecom Co. Ltd.		3,806		542
SK Telecom Co. Ltd. ADR		10,300		163
S-Oil Corp.		22,681		2,220
Woori Finance Holdings Co. Ltd.		183,560		2,038
Woori Investment & Securities Co. Ltd.		63,037		705
Yuhan Corp.		4,081		660
				287,612
Taiwan - 10.3%
Acer, Inc.*		1,194,796		1,042
Advanced Semiconductor Engineering, Inc.		3,105,364		2,695
Advantech Co. Ltd.		139,285		589
Asia Cement Corp.		959,266		1,238
Asustek Computer, Inc.		341,546		3,857
AU Optronics Corp.*		3,855,215		1,744
Capital Securities Corp.		798,602		308
Catcher Technology Co. Ltd.		284,111		1,422
Cathay Financial Holding Co. Ltd.		3,561,175		3,869
Chailease Holding Co. Ltd.		334,000		769
Chang Hwa Commercial Bank		2,140,536		1,181
Cheng Shin Rubber Industry Co. Ltd.		919,465		2,394
Cheng Uei Precision Industry Co. Ltd.		187,886		408
Chicony Electronics Co. Ltd.		236,509		549
China Airlines Ltd.*		1,278,307		529
China Development Financial Holding Corp.*		6,151,868		1,637
China Life Insurance Co. Ltd.*		968,661		889
China Motor Corp.		285,000		271
China Petrochemical Development Corp.		802,172		500
China Steel Corp.		5,726,869		5,406
Chinatrust Financial Holding Co. Ltd.		5,652,222		3,351
Chunghwa Telecom Co. Ltd.		1,870,493		6,086
Chunghwa Telecom Co. Ltd. ADR		4,048		131
Clevo Co.		243,970		302
Compal Electronics, Inc.		2,069,759		1,400
CTCI Corp.		296,000		586
Delta Electronics, Inc.		913,521		3,371
E Ink Holdings, Inc.		396,095		304

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
Taiwan - 10.3% continued
E.Sun Financial Holding Co. Ltd.		1,903,541	$	1,069
Epistar Corp.		413,351		756
Eternal Chemical Co. Ltd.		348,207		302
Eva Airways Corp.*		781,271		458
Evergreen Marine Corp. Taiwan Ltd.*		831,795		499
Far Eastern Department Stores Co. Ltd.		460,129		479
Far Eastern New Century Corp.		1,528,404		1,756
Far EasTone Telecommunications Co. Ltd.		805,345		2,058
Farglory Land Development Co. Ltd.		173,000		313
Feng Hsin Iron & Steel Co.		192,160		343
First Financial Holding Co. Ltd.		3,262,814		1,996
Formosa Chemicals & Fibre Corp.		1,578,320		4,091
Formosa International Hotels Corp.		17,385		234
Formosa Petrochemical Corp.		587,487		1,746
Formosa Plastics Corp.		1,991,349		5,412
Formosa Taffeta Co. Ltd.		380,827		368
Foxconn Technology Co. Ltd.		373,614		1,176
Fubon Financial Holding Co. Ltd.		2,867,025		3,480
Giant Manufacturing Co. Ltd.		144,483		831
Hermes Microvision, Inc.		15,000		277
Highwealth Construction Corp.		163,200		308
Hiwin Technologies Corp.		84,603		627
Hon Hai Precision Industry Co. Ltd.		5,047,655		15,560
Hotai Motor Co. Ltd.		120,900		975
HTC Corp.		363,220		3,770
Hua Nan Financial Holdings Co. Ltd.		2,622,530		1,521
Innolux Corp.*		2,702,392		1,464
Inventec Corp.		1,136,314		436
Kinsus Interconnect Technology Corp.		133,587		421
Largan Precision Co. Ltd.		49,835		1,351
LCY Chemical Corp.		215,621		269
Lite-On Technology Corp.		1,041,557		1,386
Macronix International		1,686,982		506
MediaTek, Inc.		576,507		6,449
Mega Financial Holding Co. Ltd.		4,066,972		3,179
Merida Industry Co. Ltd.		98,000		440
MStar Semiconductor, Inc.		108,317		816
Nan Kang Rubber Tire Co. Ltd.		292,769		359
Nan Ya Plastics Corp.		2,369,695		4,589
Novatek Microelectronics Corp.		258,850		1,063
Oriental Union Chemical Corp.		287,000		346
Pegatron Corp.*		774,594		1,008
Phison Electronics Corp.		64,608		430
Pou Chen Corp.		1,082,093		1,140
Powertech Technology, Inc.		352,568		579
President Chain Store Corp.		284,220		1,524
Quanta Computer, Inc.		1,267,576		2,997
Radiant Opto-Electronics Corp.		217,670		903
Realtek Semiconductor Corp.		221,829		469
Richtek Technology Corp.		63,849		374
Ruentex Development Co. Ltd.		301,940		625
Ruentex Industries Ltd.		237,781		592
ScinoPharm Taiwan Ltd.		131,000		316
Shin Kong Financial Holding Co. Ltd.*		2,996,463		849
Siliconware Precision Industries Co.		1,527,480		1,635
Simplo Technology Co. Ltd.		141,532		715
SinoPac Financial Holdings Co. Ltd.		3,036,131		1,309
Standard Foods Corp.		130,080		357
Synnex Technology International Corp.		625,086		1,161
Taishin Financial Holding Co. Ltd.		3,324,372		1,324
Taiwan Business Bank*		1,471,387		444
Taiwan Cement Corp.		1,584,055		2,126
Taiwan Cooperative Financial Holding		2,400,536		1,356
Taiwan Fertilizer Co. Ltd.		365,000		970
Taiwan Glass Industry Corp.		458,377		476
Taiwan Mobile Co. Ltd.		841,076		3,108
Taiwan Semiconductor Manufacturing Co. Ltd.		12,352,193		41,342
Teco Electric and Machinery Co. Ltd.		899,000		691
TPK Holding Co. Ltd.		115,003		2,054
Transcend Information, Inc.		96,442		269
Tripod Technology Corp.		207,082		447
TSRC Corp.		274,892		559
Tung Ho Steel Enterprise Corp.		351,271		360
U-Ming Marine Transport Corp.		214,000		343
Unimicron Technology Corp.		596,418		636
Uni-President Enterprises Corp.		2,081,195		3,828
United Microelectronics Corp.		6,170,043		2,496
Walsin Lihwa Corp.*		1,558,770		535
Wan Hai Lines Ltd.*		571,825		332
Wintek Corp.*		831,162		445
Wistron Corp.		1,056,977		1,101
WPG Holdings Ltd.		709,316		933
Ya Hsin Industrial Co. Ltd.*		121,548		—
Yang Ming Marine Transport Corp.*		671,356		323
Yuanta Financial Holding Co. Ltd.		4,036,647		2,089
Yulon Motor Co. Ltd.		438,257		844

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 90.2% continued
Taiwan - 10.3% continued
Zhen Ding Technology Holding Ltd.		90,800	$	225
				206,946
Thailand - 2.4%
Advanced Info Service PCL (Registered)		194,000		1,325
Advanced Info Service PCL NVDR		403,499		2,776
Airports of Thailand PCL NVDR		211,000		674
Bangkok Bank PCL (Registered)		381,900		2,617
Bangkok Bank PCL NVDR		306,500		1,967
Bangkok Dusit Medical Service PCL NVDR		152,600		569
Bank of Ayudhya PCL (Registered)		518,654		555
Bank of Ayudhya PCL NVDR		715,568		764
Banpu PCL (Registered)		23,350		307
Banpu PCL NVDR		32,158		435
BEC World PCL (Registered)		196,500		456
BEC World PCL NVDR		288,007		673
Central Pattana PCL NVDR		321,800		863
Charoen Pokphand Foods PCL NVDR		1,569,257		1,740
CP ALL PCL (Registered)		905,200		1,361
CP ALL PCL NVDR		1,317,036		1,976
Glow Energy PCL (Registered)		87,100		221
Glow Energy PCL NVDR		162,102		412
Indorama Ventures PCL NVDR		748,547		625
IRPC PCL (Registered)		1,860,900		251
IRPC PCL NVDR		3,024,981		413
Kasikornbank PCL		50,000		317
Kasikornbank PCL (Registered)		280,600		1,782
Kasikornbank PCL NVDR		602,597		3,827
Krung Thai Bank PCL (Registered)		699,750		457
Krung Thai Bank PCL NVDR		1,029,093		663
PTT Exploration & Production PCL NVDR		458,543		2,471
PTT Exploration & Production PCL (Registered)		242,500		1,296
PTT Global Chemical PCL (Registered)		189,814		420
PTT Global Chemical PCL NVDR		674,176		1,562
PTT PCL (Registered)		183,500		1,961
PTT PCL NVDR		245,600		2,678
Siam Cement PCL (Registered)		51,000		785
Siam Cement PCL NVDR		157,698		2,276
Siam Commercial Bank PCL (Registered)		232,700		1,377
Siam Commercial Bank PCL NVDR		651,676		3,879
Siam Makro PCL NVDR		47,300		690
Thai Oil PCL (Registered)		97,800		216
Thai Oil PCL NVDR		321,195		715
				48,352
Turkey - 1.9%
Akbank T.A.S.		902,316		4,462
Anadolu Efes Biracilik Ve Malt Sanayii A.S.		102,778		1,483
Arcelik A.S.		118,590		781
Asya Katilim Bankasi A.S.*		246,921		307
BIM Birlesik Magazalar A.S.		53,399		2,616
Coca-Cola Icecek A.S.		31,310		650
Dogan Yayin Holding A.S.*		1		—
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.		324,220		569
Enka Insaat ve Sanayi A.S.		177,019		527
Eregli Demir ve Celik Fabrikalari T.A.S.		461,001		635
Ford Otomotiv Sanayi A.S.		35,130		423
Haci Omer Sabanci Holding A.S.		409,426		2,263
Is Gayrimenkul Yatirim Ortakligi A.S.		1		—
KOC Holding A.S.		326,042		1,696
Koza Altin Isletmeleri A.S.		19,089		461
TAV Havalimanlari Holding A.S.		81,118		415
Tofas Turk Otomobil Fabrikasi A.S.		59,829		352
Tupras Turkiye Petrol Rafinerileri A.S.		63,393		1,834
Turk Hava Yollari AO*		240,084		845
Turk Telekomunikasyon A.S.		261,115		1,014
Turkcell Iletisim Hizmetleri A.S.*		386,969		2,504
Turkiye Garanti Bankasi A.S.		1,160,080		6,035
Turkiye Halk Bankasi A.S.		315,252		3,103
Turkiye Is Bankasi, Class C		790,771		2,748
Turkiye Sise ve Cam Fabrikalari A.S.		217,446		361
Turkiye Vakiflar Bankasi Tao, Class D		371,361		963
Yapi ve Kredi Bankasi A.S.*		438,208		1,281
				38,328
Ukraine - 0.0%
Kernel Holding S.A.*		25,490		553
United States - 0.2%
Southern Copper Corp.		84,927		3,215
Total Common Stocks(3) (Cost $1,483,511)(3)				1,806,149
PREFERRED STOCKS - 7.2%
Brazil - 6.1%
AES Tiete S.A.		49,753		573
Banco Bradesco S.A.		923,341		15,860
Banco do Estado do Rio Grande do Sul S.A., Class B		89,918		681
Bradespar S.A.		114,201		1,831

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
PREFERRED STOCKS - 7.2% continued
Brazil - 6.1% continued
Braskem S.A., Class A		75,341	$	471
Centrais Eletricas Brasileiras S.A., Class B		113,141		579
Cia Brasileira de Distribuicao Grupo Pao de Acucar		50,160		2,217
Cia de Bebidas das Americas		350,099		14,633
Cia de Bebidas das Americas ADR		28,200		1,184
Cia Energetica de Minas Gerais		240,752		2,658
Cia Energetica de Sao Paulo, Class B		78,808		746
Cia Paranaense de Energia, Class B		52,644		815
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.		48,377		397
Gerdau S.A.		433,461		3,796
Itau Unibanco Holding S.A.		1,144,000		18,656
Itausa - Investimentos Itau S.A.		1,272,722		6,023
Klabin S.A.		226,821		1,417
Lojas Americanas S.A.		204,694		1,833
Marcopolo S.A.		100,676		634
Metalurgica Gerdau S.A.		142,799		1,597
Oi S.A.		367,898		1,495
Petroleo Brasileiro S.A.		1,960,295		18,689
Telefonica Brasil S.A.		137,191		3,283
Telefonica Brasil S.A. ADR		13,245		319
Usinas Siderurgicas de Minas Gerais S.A., Class A		189,444		1,184
Vale S.A.		1,004,430		20,050
				121,621
Chile - 0.1%
Embotelladora Andina S.A., Class B		93,319		587
Sociedad Quimica y Minera de Chile S.A., Class B		42,009		2,414
				3,001
Colombia - 0.2%
Banco Davivienda S.A.		39,811		529
Bancolombia S.A.		130,042		2,195
Grupo Argos S.A.		63,771		769
Grupo Aval Acciones y Valores		689,403		507
Grupo de Inversiones Suramericana S.A.		30,852		681
				4,681
Russia - 0.3%
AK Transneft OAO		788		1,780
Sberbank of Russia		503,994		1,111
Surgutneftegas OAO		2,129,724		1,391
Surgutneftegas OAO ADR		140,161		931
				5,213
South Korea - 0.5%
Hyundai Motor Co. Ltd.		11,883		773
Hyundai Motor Co., Class 2		18,664		1,325
LG Chem Ltd.		3,816		365
Samsung Electronics Co. Ltd.		10,301		8,238
				10,701
Total Preferred Stocks(3) (Cost $139,783)(3)				145,217
RIGHTS - 0.0%
Brazil - 0.0%
Latam Airlines Group S.A.*		481		—
Chile - 0.0%
Banco de Chile*		1		—
Latam Airlines Group S.A.*		1,465		1
				1
Total Rights(3) (Cost $ — )(3)				1
INVESTMENT COMPANIES - 2.8%
iShares MSCI Emerging Markets Index Fund		244,000		10,821
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(4) (5)		31,823,574		31,824
Vanguard MSCI Emerging Markets ETF		305,000		13,582
Total Investment Companies (Cost $55,603)				56,227
Total Investments - 100.2% (Cost $1,678,897)				2,007,594
Liabilities less Other Assets - (0.2)%				(4,791	)
NET ASSETS - 100.0%			$	2,002,803

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 December 31, 2012, the value of these restricted illiquid securities amounted to approximately $2,202,000 or 0.1% of net assets. Additional information on each restricted illiquid security is as follows:

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000S)
Reliance Industries Ltd. GDR		11/1/06-12/06/12	$	1,996
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 purchases of approximately $26,328,000 during the nine months ended December 31, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 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)		5	$	1,257		Long		3/13	$	3
FTSE/JSE Top 40 Index (South African Rand)		113		4,678		Long		3/13		58
Hang Seng Index (Hong Kong Dollar)		39		5,704		Long		1/13		52
MSCI Taiwan Index (United States Dollar)		171		4,709		Long		1/13		63
S&P/TSX 60 Index (Canadian Dollar)		21		3,004		Long		3/13		43
SGX S&P CNX Nifty Index (United States Dollar)		241		2,869		Long		1/13		7
SPI 200 Index (Australian Dollar)		13		1,558		Long		3/13		18
Total									$	244

At December 31, 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)
United States Dollar		130	Czech Koruna		2,457		1/2/13	$	(1	)
United States Dollar		3,640	Hong Kong Dollar		28,215		1/2/13		—	*
United States Dollar		80	Hungarian Forint		17,608		1/2/13		—	*
United States Dollar		3,046	Korean Won		3,261,392		1/2/13		—	*
United States Dollar		603	Malaysian Ringgit		1,845		1/2/13		—	*
United States Dollar		1,030	Mexican Peso		13,399		1/2/13		7
United States Dollar		220	Polish Zloty		676		1/2/13		(2	)
United States Dollar		1,500	South African Rand		12,745		1/2/13		3
United States Dollar		2,504	Brazilian Real		5,140		1/3/13		6
United States Dollar		443	Indonesian Rupiah		4,335,501		1/3/13		7
United States Dollar		1,268	Indian Rupee		69,531		1/3/13		1
United States Dollar		351	Thai Baht		10,734		1/3/13		—	*
Brazilian Real		1,028	United States Dollar		489		3/20/13		(8	)
United States Dollar		3,120	Hong Kong Dollar		24,176		3/20/13		—	*
United States Dollar		874	Indian Rupee		47,954		3/20/13		(11	)
United States Dollar		2,908	Korean Won		3,131,771		3/20/13		19
United States Dollar		243	Mexican Peso		3,120		3/20/13		(3	)
United States Dollar		1,155	Russian Ruble		35,978		3/20/13		11
United States Dollar		2,444	Taiwan Dollar		70,497		3/20/13		6
Total								$	35

* 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 December 31, 2012, the industry sectors for the Emerging Markets Equity Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		7.8	%
Consumer Staples		8.6
Energy		12.4
Financials		27.5
Health Care		1.2
Industrials		6.4
Information Technology		13.6
Materials		11.6
Telecommunication Services		7.6
Utilities		3.3
Total		100.0	%

At December 31, 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		18.1	%
Korean Won		15.1
Brazilian Real		12.0
Taiwan Dollar		10.5
United States Dollar		8.8
South African Rand		7.7
Indian Rupee		6.2
Mexican Peso		5.1
All other currencies less than 5%		16.5
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 December 31, 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 Emerging Markets Equity Index Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

	LEVEL 1		LEVEL 2			LEVEL 3		TOTAL
INVESTMENTS	(000S)		(000S)			(000S)		(000S)
Common Stocks
Consumer Discretionary	$	19,928	$	129,693		$	—	$	149,621
Consumer Staples		55,270		96,634			—		151,904
Energy		51,631		170,953			—		222,584
Financials		70,748		400,465			1,042		472,255
Health Care		3,613		21,072			—		24,685
Industrials		21,184		104,304			—		125,488
Information Technology		7,315		253,147			—		260,462
Materials		61,395		133,802			—		195,197
Telecommunication Services		33,615		111,506			—		145,121
Utilities		20,497		38,335			—		58,832
Preferred Stocks
Consumer Discretionary		1,833		2,098			—		3,931
Consumer Staples		18,621		—			—		18,621
Energy		22,791		—			—		22,791
Financials		46,243		—			—		46,243
Industrials		634		—			—		634
Information Technology		—		8,238			—		8,238
Materials		33,529		365			—		33,894
Telecommunication Services		5,097		—			—		5,097
Utilities		5,768		—			—		5,768
Rights
Industrials		1		—			—		1
Investment Companies		56,227		—			—		56,227
Total Investments	$	535,940	$	1,470,612		$	1,042	$	2,007,594
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	244	$	—		$	—	$	244
Foreign Currency Exchange Contracts		—		60			—		60
Liabilities
Foreign Currency Exchange Contracts		—		(25	)		—		(25	)
Total Other Financial Instruments	$	244	$	35		$	—	$	279

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1

Industry	Value (000S)		Reason
Common Stocks
Consumer Discretionary	$	18,370	Valuations at unadjusted quoted market price
Consumer Staples		49,279	Valuations at unadjusted quoted market price
Energy		35,309	Valuations at unadjusted quoted market price
Financials		47,689	Valuations at unadjusted quoted market price
Health Care		2,376	Valuations at unadjusted quoted market price
Industrials		16,548	Valuations at unadjusted quoted market price
Information Technology		5,237	Valuations at unadjusted quoted market price
Materials		43,254	Valuations at unadjusted quoted market price
Telecommunication Services		27,758	Valuations at unadjusted quoted market price
Utilities		16,867	Valuations at unadjusted quoted market price
Preferred Stocks
Consumer Discretionary		1,833	Valuations at unadjusted quoted market price
Consumer Staples		16,850	Valuations at unadjusted quoted market price
Energy		25,586	Valuations at unadjusted quoted market price
Financials		42,331	Valuations at unadjusted quoted market price
Industrials		634	Valuations at unadjusted quoted market price
Materials		32,760	Valuations at unadjusted quoted market price
Telecommunication Services		3,283	Valuations at unadjusted quoted market price
Utilities		5,768	Valuations at unadjusted quoted market price
Total	$	391,732

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 LOSSES (000S)			CHANGE IN UNREALIZED APPRECIATION (000S)		PURCHASES (000S)		SALES (000S)			TRANSFERS INTO LEVEL 3 (000S) (1)			TRANSFERS OUT OF LEVEL 3 (000S) (1)			BALANCE AS OF 12/31/12 (000S)
Common Stock
Financials	$	—	$	—		$	—	$	—	$	—		$	1,042	(2)	$	—		$	1,042
Materials		3,887		(81	)		133		124		(150	)		—			(3,913	)(3)		—
Total	$	3,887	$	(81	)	$	133	$	124	$	(150	)	$	1,042		$	(3,913	)	$	1,042

(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 December 31, 2012.

(2) Transferred into Level 3 due to security being valued by NTGI PVC.

(3) The Transfers Out of Level 3, noted above, were due to the Fund receiving an evaluated price using observable inputs; quoted prices in active markets for similar securities.

The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at December 31, 2012 was $(122), which is included in the Statement of Operations as part of the net change in unrealized appreciation (depreciation) on investments.

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

EMERGING MARKETS EQUITY INDEX FUND continued

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,690,537
Gross tax appreciation of investments	$	430,081
Gross tax depreciation of investments		(113,024	)
Net tax appreciation of investments	$	317,057

EQUITY INDEX FUNDS     16    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.3%
Australia - 6.9%
BGP Holdings PLC - (Fractional Shares)*		6,535,576	$	—
BWP Trust		507,743		1,146
Centro Retail Australia		1,379,329		3,266
CFS Retail Property Trust Group		2,045,674		4,099
Charter Hall Retail REIT		313,386		1,229
Commonwealth Property Office Fund		2,284,533		2,442
Dexus Property Group		4,677,703		4,960
Goodman Group		1,549,906		7,051
GPT Group		1,707,246		6,597
Investa Office Fund		596,645		1,860
Mirvac Group		3,300,395		5,143
Stockland		2,127,535		7,844
Westfield Group		2,226,770		24,571
Westfield Retail Trust		2,948,728		9,280
				79,488
Austria - 0.7%
Atrium European Real Estate Ltd.		180,348		1,060
CA Immobilien Anlagen A.G.		85,689		1,189
Conwert Immobilien Invest S.E.		77,815		1,006
IMMOFINANZ A.G.*		1,011,413		4,264
				7,519
Belgium - 0.4%
Befimmo S.C.A. Sicafi		18,467		1,192
Cofinimmo		14,861		1,760
Intervest Offices & Warehouses		6,263		167
Leasinvest Real Estate S.C.A.		1,376		121
Warehouses De Pauw S.C.A.		10,385		651
Wereldhave Belgium N.V.		2,311		248
				4,139
Brazil - 2.4%
Aliansce Shopping Centers S.A.		99,579		1,190
BR Malls Participacoes S.A.		434,329		5,732
BR Properties S.A.		299,615		3,731
Brookfield Incorporacoes S.A.		274,879		459
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		303,152		2,649
Even Construtora e Incorporadora S.A.		228,575		1,049
Ez Tec Empreendimentos e Participacoes S.A.		55,740		700
Gafisa S.A.*		412,900		950
General Shopping Brasil S.A.*		21,504		112
Helbor Empreendimentos S.A.		139,448		855
Iguatemi Empresa de Shopping Centers S.A.		77,248		1,028
JHSF Participacoes S.A.		85,216		358
MRV Engenharia e Participacoes S.A.		346,403		2,027
Multiplan Empreendimentos Imobiliarios S.A.		80,294		2,361
PDG Realty S.A. Empreendimentos e Participacoes		1,283,082		2,074
Rodobens Negocios Imobiliarios S.A.		26,343		163
Rossi Residencial S.A.		295,377		656
Sonae Sierra Brasil S.A.		29,762		469
Tecnisa S.A.		135,708		534
Viver Incorporadora e Construtora S.A.*		283,285		88
Viver Incorporadora e Construtora S.A.*		5,859		2
				27,187
Canada - 4.0%
Allied Properties Real Estate
Investment Trust		57,532		1,909
Artis Real Estate Investment Trust		106,517		1,675
Boardwalk Real Estate Investment Trust		46,365		3,008
Calloway Real Estate Investment Trust		103,263		3,005
Canadian Apartment Properties REIT		98,161		2,457
Canadian Real Estate Investment Trust		65,406		2,851
Chartwell Seniors Housing Real Estate Investment Trust		164,857		1,802
Cominar Real Estate Investment Trust		119,351		2,708
Crombie Real Estate Investment Trust		48,581		721
Dundee International Real Estate Investment Trust		65,700		722
Dundee Real Estate Investment Trust		93,069		3,502
Extendicare, Inc.		82,878		637
First Capital Realty, Inc.		78,395		1,483
Granite Real Estate, Inc.		45,500		1,727
H&R Real Estate Investment Trust		187,421		4,541
InnVest Real Estate Investment Trust		92,208		383
Killam Properties, Inc.		51,804		651
Morguard Real Estate Investment Trust		43,756		804
Northern Property Real Estate Investment Trust		30,351		943
NorthWest Healthcare Properties Real Estate Investment Trust		33,576		421
Primaris Retail Real Estate Investment Trust		94,468		2,555
RioCan Real Estate Investment Trust		285,917		7,922
				46,427

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.3% continued
Chile - 0.1%
Parque Arauco S.A.		514,205	$	1,273
China - 2.0%
Agile Property Holdings Ltd.		1,345,979		1,927
Beijing North Star Co. Ltd., Class H		637,662		175
China Merchants Property Development Co. Ltd., Class B		157,308		556
China Vanke Co. Ltd., Class B		1,244,540		2,007
Country Garden Holdings Co. Ltd.*		3,540,233		1,895
Evergrande Real Estate Group Ltd.		5,805,000		3,293
Fantasia Holdings Group Co. Ltd.		1,918,500		323
Greentown China Holdings Ltd.		817,000		1,523
Guangzhou R&F Properties Co. Ltd., Class H		922,202		1,557
Hui Xian Real Estate Investment Trust		1,966,384		1,310
Longfor Properties Co. Ltd.		1,050,500		2,094
Shanghai Lujiazui Finance & Trade Zone Development Co. Ltd., Class B		493,744		621
Shui On Land Ltd.		2,905,333		1,412
Sino-Ocean Land Holdings Ltd.		4,242,386		3,239
SOHO China Ltd.		1,955,756		1,585
				23,517
Egypt - 0.0%
Six of October Development & Investment*		82,598		264
Finland - 0.2%
Citycon OYJ		233,998		795
Sponda OYJ		270,130		1,289
Technopolis OYJ		75,594		377
				2,461
France - 3.1%
Affine S.A.		3,747		62
ANF Immobilier		10,013		317
Fonciere Des Regions		28,056		2,351
Gecina S.A.		17,586		1,963
ICADE		20,102		1,803
Klepierre		94,343		3,803
Mercialys S.A.		44,913		1,021
Orco Property Group*		101,651		335
Societe de la Tour Eiffel		5,749		339
Societe Immobiliere de Location pour I’Industrie et le Commerce		12,692		1,394
Unibail-Rodamco S.E.		89,029		21,795
				35,183
Germany - 1.0%
Alstria Office REIT-A.G.		77,033		943
Colonia Real Estate A.G.*		12,740		78
Deutsche Euroshop A.G.		51,697		2,159
Deutsche Wohnen A.G. (Bearer)		141,346		2,610
DIC Asset A.G.		34,014		328
GAGFAH S.A.*		75,700		886
GSW Immobilien A.G.		48,987		2,071
Hamborner REIT A.G.		43,346		429
IVG Immobilien A.G.*		154,898		391
Patrizia Immobilien A.G.*		26,351		225
Prime Office REIT-A.G.		35,013		149
TAG Immobilien A.G.		126,376		1,588
				11,857
Greece - 0.0%
Eurobank Properties Real Estate Investment Co.		16,797		109
Hong Kong - 11.6%
C C Land Holdings Ltd.		1,237,000		442
Champion REIT		2,704,846		1,300
China Overseas Land & Investment Ltd.		3,942,542		11,943
China Resources Land Ltd.		2,251,218		6,190
Franshion Properties China Ltd.		3,542,000		1,286
Hang Lung Properties Ltd.		2,156,452		8,646
Henderson Land Development Co. Ltd.		1,160,130		8,264
Hongkong Land Holdings Ltd.		1,699,618		11,953
Hopson Development Holdings Ltd.*		668,000		1,075
Hysan Development Co. Ltd.		771,045		3,729
Kerry Properties Ltd.		690,099		3,604
Link REIT (The)		2,205,872		11,033
Mingfa Group International Co. Ltd.		1,115,000		333
New World China Land Ltd.		2,495,899		1,208
New World Development Co. Ltd.		4,420,741		6,938
Poly Property Group Co. Ltd.*		1,752,000		1,392
Shenzhen Investment Ltd.		2,599,108		1,064
Shimao Property Holdings Ltd.		1,329,869		2,557
Sino Land Co. Ltd.		2,845,427		5,153
Sun Hung Kai Properties Ltd.		1,892,619		28,566
Swire Properties Ltd.		1,130,600		3,802
Wharf Holdings Ltd.		1,461,317		11,562
Yuexiu Property Co. Ltd.		6,737,400		2,157
				134,197

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
India - 0.3%
Anant Raj Ltd.		105,351	$	174
DLF Ltd.		496,485		2,119
Orbit Corp. Ltd.*		79,936		81
Parsvnath Developers Ltd.*		114,070		80
Prestige Estates Projects Ltd.		67,908		224
Sunteck Realty Ltd.		16,546		142
Unitech Ltd.*		1,905,482		1,184
				4,004
Indonesia - 0.7%
Agung Podomoro Land Tbk PT		5,600,696		215
Alam Sutera Realty Tbk PT		13,978,140		874
Bakrieland Development Tbk PT*		39,644,643		223
Bumi Serpong Damai PT		6,630,500		785
Ciputra Development Tbk PT		10,885,290		900
Ciputra Property Tbk PT		2,804,438		175
Ciputra Surya Tbk PT		690,500		162
Intiland Development Tbk PT		7,132,500		249
Kawasan Industri Jababeka Tbk PT*		19,767,000		410
Lippo Karawaci Tbk PT		16,838,531		1,749
Pakuwon Jati Tbk PT		13,297,140		310
Sentul City Tbk PT*		23,235,017		457
Summarecon Agung Tbk PT		5,204,500		1,028
				7,537
Israel - 0.1%
Azrieli Group		35,425		911
Italy - 0.1%
Beni Stabili S.p.A.		921,949		545
Immobiliare Grande Distribuzione		115,331		125
				670
Japan - 9.2%
Activia Properties, Inc.		195		1,220
Advance Residence Investment Corp.		800		1,637
Aeon Mall Co. Ltd.		86,697		2,119
Daiwahouse Residential Investment Corp.		153		1,194
Frontier Real Estate Investment Corp.		220		1,918
Industrial & Infrastructure Fund Investment Corp.		134		999
Japan Excellent, Inc.		180		1,008
Japan Prime Realty Investment Corp.		799		2,305
Japan Real Estate Investment Corp.		570		5,591
Japan Retail Fund Investment Corp.		2,004		3,676
Kenedix Realty Investment Corp.		276		960
Mitsubishi Estate Co. Ltd.		1,006,480		24,061
Mitsui Fudosan Co. Ltd.		850,562		20,780
Mori Hills REIT Investment Corp.		221		1,181
Mori Trust Sogo Reit, Inc.		173		1,455
Nippon Accommodations Fund, Inc.		141		977
Nippon Building Fund, Inc.		587		6,052
Nomura Real Estate Holdings, Inc.		73,900		1,410
Nomura Real Estate Office Fund, Inc.		294		1,687
NTT Urban Development Corp.		1,276		1,232
Orix JREIT, Inc.		206		1,012
Premier Investment Corp.		193		711
Sumitomo Realty & Development Co. Ltd.		459,425		15,265
Tokyo Tatemono Co. Ltd.		314,201		1,614
Tokyu Land Corp.		385,556		2,819
Tokyu REIT, Inc.		120		652
Top REIT, Inc.		150		645
United Urban Investment Corp.		2,038		2,335
				106,515
Malaysia - 0.4%
Eastern & Oriental Bhd.		837,500		427
Glomac Bhd.		325,500		88
IGB Corp. Bhd.		1,087,754		821
IJM Land Bhd.		558,550		439
KLCC Property Holdings Bhd.		451,248		928
Land & General Bhd.*		516,827		69
LBS Bina Group Bhd.		267,800		74
Mah Sing Group Bhd.		608,700		412
Pavilion Real Estate Investment Trust		861,100		393
SP Setia Bhd.		583,035		589
Tebrau Teguh Bhd.*		484,700		112
YTL Land & Development Bhd.*		219,300		66
				4,418
Mexico - 0.1%
Consorcio ARA S.A.B. de C.V.*		978,017		313
Corp. GEO S.A.B. de C.V., Series B*		407,334		476
Desarrolladora Homex S.A.B. de C.V.*		248,285		513
Sare Holding S.A.B. de C.V., Class B*		584,105		39
Urbi Desarrollos Urbanos S.A.B. de C.V.*		493,126		309
				1,650
Netherlands - 0.6%
Corio N.V.		69,850		3,178
Eurocommercial Properties N.V. - CVA		39,611		1,581
Nieuwe Steen Investments N.V.		66,473		535
Vastned Retail N.V.		18,134		787

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.3% continued
Netherlands - 0.6% continued
Wereldhave N.V.		20,746	$	1,337
				7,418
New Zealand - 0.1%
Kiwi Income Property Trust		946,334		901
Norway - 0.1%
Norwegian Property ASA		524,819		808
Philippines - 0.7%
Ayala Land, Inc.		5,318,551		3,437
Filinvest Land, Inc.		9,119,989		331
Megaworld Corp.		10,952,101		740
Robinsons Land Corp.		1,579,975		797
SM Development Corp.		1,767,000		254
SM Prime Holdings, Inc.		6,726,453		2,709
Vista Land & Lifescapes, Inc.		3,316,661		393
				8,661
Poland - 0.0%
Globe Trade Centre S.A.*		154,213		498
LC Corp. S.A.*		186,319		71
				569
Singapore - 4.5%
Ascendas India Trust		631,000		388
Ascendas Real Estate Investment Trust		2,167,753		4,247
CapitaCommercial Trust		2,049,014		2,833
CapitaLand Ltd.		3,062,915		9,396
CapitaMall Trust		2,510,715		4,399
CapitaMalls Asia Ltd.		1,505,000		2,421
CDL Hospitality Trusts		710,610		1,098
City Developments Ltd.		659,000		7,029
First Real Estate Investment Trust		449,000		391
Global Logistic Properties Ltd.		2,219,793		5,104
Keppel Land Ltd.		749,027		2,504
Mapletree Commercial Trust		1,333,000		1,332
Mapletree Industrial Trust		1,163,948		1,301
Mapletree Logistics Trust		1,739,722		1,636
Suntec Real Estate Investment Trust		2,167,291		2,987
UOL Group Ltd.		560,000		2,764
Wing Tai Holdings Ltd.		560,355		859
Yanlord Land Group Ltd.*		562,000		705
				51,394
South Africa - 1.4%
Arrowhead Properties Ltd., Class A		157,456		123
Arrowhead Properties Ltd., Class B		167,659		129
Capital Property Fund		1,535,418		1,931
Emira Property Fund		480,174		826
Fountainhead Property Trust		1,104,841		1,105
Growthpoint Properties Ltd.		1,709,383		4,951
Hyprop Investments Ltd.		177,708		1,531
Redefine Properties Ltd.		2,677,853		2,966
Resilient Property Income Fund Ltd.		277,617		1,689
SA Corporate Real Estate Fund Nominees Pty Ltd.		1,989,573		857
				16,108
Sweden - 0.9%
Castellum AB		159,123		2,262
Fabege AB		157,516		1,594
Fastighets AB Balder, Class B*		108,027		621
Hufvudstaden AB, Class A		143,659		1,822
Klovern AB		123,328		486
Kungsleden AB		129,159		708
Wallenstam AB, Class B		112,753		1,385
Wihlborgs Fastigheter AB		73,254		1,151
				10,029
Switzerland - 1.0%
Allreal Holding A.G. (Registered)		7,646		1,182
Mobimo Holding A.G. (Registered)		5,867		1,405
PSP Swiss Property A.G. (Registered)		44,707		4,243
Swiss Prime Site A.G. (Registered)		57,807		4,837
				11,667
Taiwan - 0.0%
Hung Poo Real Estate Development Corp.		144,585		150
Thailand - 0.5%
Amata Corp. PCL (Registered)		141,686		75
Amata Corp. PCL NVDR		351,571		187
Asian Property Development PCL NVDR		415,004		116
Asian Property Development PCL (Registered)		401,278		112
Central Pattana PCL (Registered)		389,263		1,040
Central Pattana PCL NVDR		243,649		653
Land and Houses PCL		483,804		155
Land and Houses PCL (Registered)		1,610,380		516
Land and Houses PCL NVDR		834,400		267
LPN Development PCL (Registered)		8,475		5
LPN Development PCL NVDR		547,301		321
Property Perfect PCL (Registered)		2,765,102		95
Property Perfect PCL NVDR		2,684,895		93

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.3% continued
Thailand - 0.5% continued
Pruksa Real Estate PCL NVDR		636,900	$	441
Quality Houses PCL NVDR		3,541,600		250
Sansiri PCL NVDR		2,940,000		341
SC Asset Corp. PCL (Registered)		118,200		111
SC Asset Corp. PCL NVDR		134,878		127
Siam Future Development PCL NVDR		463,325		107
Supalai PCL (Registered)		224,356		130
Supalai PCL NVDR		353,700		205
Ticon Industrial Connection PCL NVDR		416,837		198
				5,545
Turkey - 0.2%
Akfen Gayrimenkul Yatirim Ortakligi A.S.*		43,280		40
Akmerkez Gayrimenkul Yatirim Ortakligi A.S.		27,521		344
Alarko Gayrimenkul Yatirim Ortakligi A.S.		4,257		54
Emlak Konut Gayrimenkul Yatirim Ortakligi A.S.		723,835		1,270
Is Gayrimenkul Yatirim Ortakligi A.S.		212,327		179
Sinpas Gayrimenkul Yatirim Ortakligi A.S.		220,803		175
Torunlar Gayrimenkul Yatirim Ortakligi A.S.		153,574		278
				2,340
United Arab Emirates - 0.3%
Aldar Properties PJSC		1,548,547		539
Emaar Properties PJSC		2,896,813		2,962
				3,501
United Kingdom - 4.3%
A & J Mucklow Group PLC		54,991		319
Big Yellow Group PLC		124,846		717
British Land Co. PLC		855,221		7,951
Capital & Counties Properties PLC		728,342		2,870
Capital Shopping Centres Group PLC		630,877		3,550
Daejan Holdings PLC		4,407		222
Derwent London PLC		98,386		3,383
Development Securities PLC		112,578		267
Grainger PLC		396,363		767
Great Portland Estates PLC		333,232		2,662
Hammerson PLC		684,070		5,512
Hansteen Holdings PLC		613,060		821
Helical Bar PLC		116,064		437
Land Securities Group PLC		744,934		10,071
London & Stamford Property PLC		527,085		932
Primary Health Properties PLC		76,052		432
Quintain Estates & Development PLC*		511,497		435
Safestore Holdings PLC		172,224		303
Schroder Real Estate Investment Trust Ltd.		317,079		199
Segro PLC		719,302		2,949
Shaftesbury PLC		242,653		2,259
St. Modwen Properties PLC		146,609		552
Unite Group PLC		155,470		699
Workspace Group PLC		137,933		680
				48,989
United States - 38.4%
Acadia Realty Trust		48,544		1,218
Agree Realty Corp.		10,593		284
Alexander’s, Inc.		1,957		647
Alexandria Real Estate Equities, Inc.		61,629		4,272
American Assets Trust, Inc.		38,059		1,063
American Campus Communities, Inc.		101,022		4,660
American Realty Capital Trust, Inc.		153,700		1,775
Apartment Investment & Management Co., Class A		140,791		3,810
Ashford Hospitality Trust, Inc.		65,770		691
Associated Estates Realty Corp.		47,314		763
AvalonBay Communities, Inc.		110,401		14,969
BioMed Realty Trust, Inc.		148,631		2,873
Boston Properties, Inc.		144,461		15,285
Brandywine Realty Trust		137,384		1,675
BRE Properties, Inc.		74,171		3,770
Brookfield Office Properties, Inc.		362,448		6,180
Camden Property Trust		80,634		5,500
Campus Crest Communities, Inc.		38,306		470
CapLease, Inc.		65,469		365
CBL & Associates Properties, Inc.		155,590		3,300
Cedar Realty Trust, Inc.		69,554		367
Chesapeake Lodging Trust		38,579		806
Colonial Properties Trust		85,672		1,831
CommonWealth REIT		81,247		1,287
CommonWealth REIT - (Fractional Shares)*		75,000		—
Corporate Office Properties Trust		78,467		1,960
Cousins Properties, Inc.		99,032		827
CubeSmart		125,307		1,826
DCT Industrial Trust, Inc.		254,601		1,652
DDR Corp.		299,569		4,691
DiamondRock Hospitality Co.		189,425		1,705
Digital Realty Trust, Inc.		119,022		8,080

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.3% continued
United States - 38.4% continued
Douglas Emmett, Inc.		101,234	$	2,359
Duke Realty Corp.		266,208		3,692
DuPont Fabros Technology, Inc.		61,299		1,481
EastGroup Properties, Inc.		28,424		1,530
Education Realty Trust, Inc.		110,030		1,171
EPR Properties		45,002		2,075
Equity Lifestyle Properties, Inc.		39,947		2,688
Equity One, Inc.		56,355		1,184
Equity Residential		313,148		17,746
Essex Property Trust, Inc.		35,151		5,155
Excel Trust, Inc.		42,800		542
Extra Space Storage, Inc.		105,584		3,842
Federal Realty Investment Trust		62,303		6,481
FelCor Lodging Trust, Inc.*		121,504		567
First Industrial Realty Trust, Inc.*		93,694		1,319
First Potomac Realty Trust		48,745		603
Forest City Enterprises, Inc., Class A*		145,103		2,343
Franklin Street Properties Corp.		79,220		975
General Growth Properties, Inc.		452,626		8,985
Getty Realty Corp.		23,989		433
Glimcher Realty Trust		135,581		1,504
Government Properties Income Trust		39,043		936
HCP, Inc.		436,853		19,737
Health Care REIT, Inc.		249,844		15,313
Healthcare Realty Trust, Inc.		84,482		2,028
Hersha Hospitality Trust		192,769		964
Highwoods Properties, Inc.		75,993		2,542
Home Properties, Inc.		49,515		3,036
Hospitality Properties Trust		119,503		2,799
Host Hotels & Resorts, Inc.		694,411		10,881
Hudson Pacific Properties, Inc.		33,600		708
Inland Real Estate Corp.		84,843		711
Investors Real Estate Trust		89,878		785
Kilroy Realty Corp.		72,222		3,421
Kimco Realty Corp.		391,576		7,565
Kite Realty Group Trust		72,518		405
LaSalle Hotel Properties		82,220		2,088
Lexington Realty Trust		171,216		1,789
Liberty Property Trust		113,349		4,055
LTC Properties, Inc.		29,559		1,040
Macerich (The) Co.		131,693		7,678
Mack-Cali Realty Corp.		85,125		2,223
Medical Properties Trust, Inc.		130,460		1,560
Mid-America Apartment Communities, Inc.		40,874		2,647
National Health Investors, Inc.		26,497		1,498
National Retail Properties, Inc.		106,018		3,308
Omega Healthcare Investors, Inc.		108,521		2,588
Parkway Properties, Inc.		39,265		549
Pebblebrook Hotel Trust		58,227		1,345
Pennsylvania Real Estate Investment Trust		54,241		957
Piedmont Office Realty Trust, Inc., Class A		163,157		2,945
Post Properties, Inc.		52,430		2,619
Prologis, Inc.		442,860		16,160
PS Business Parks, Inc.		17,303		1,124
Public Storage		123,092		17,843
Ramco-Gershenson Properties Trust		44,657		594
Realty Income Corp.		128,495		5,167
Regency Centers Corp.		86,777		4,089
Retail Opportunity Investments Corp.		49,373		635
RLJ Lodging Trust		103,000		1,995
Rouse Properties, Inc.		24,227		410
Sabra Health Care REIT, Inc.		35,800		778
Saul Centers, Inc.		14,305		612
Senior Housing Properties Trust		170,392		4,028
Simon Property Group, Inc.		296,205		46,827
SL Green Realty Corp.		86,633		6,640
Sovran Self Storage, Inc.		29,070		1,805
Spirit Realty Capital, Inc.		32,400		576
STAG Industrial, Inc.		34,000		611
Strategic Hotels & Resorts, Inc.*		195,010		1,248
Sun Communities, Inc.		28,750		1,147
Sunstone Hotel Investors, Inc.*		131,490		1,408
Tanger Factory Outlet Centers		90,582		3,098
Taubman Centers, Inc.		59,563		4,689
TravelCenters of America LLC - (Fractional Shares)*		50,000		—
UDR, Inc.		241,873		5,752
Universal Health Realty Income Trust		12,418		628
Urstadt Biddle Properties, Inc., Class A		22,039		434
Ventas, Inc.		283,796		18,367
Vornado Realty Trust		179,617		14,384
Washington Real Estate Investment Trust		63,984		1,673
Weingarten Realty Investors		116,820		3,127
Winthrop Realty Trust		24,552		271
				442,117
Total Common Stocks(1) (Cost $913,406)(1)				1,109,523

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CONVERTIBLE BONDS - 0.0%
YTL Land & Development Bhd.,
3.00%, 10/31/21	$	114	$	16
Total Convertible Bonds(1) (Cost $18)(1)				16
	NUMBER OF  WARRANTS		VALUE (000S)
WARRANTS - 0.0%
Netherlands - 0.0%
Vastned Offices, Exp. 4/1/13*		13,213	$	—
Total Warrants (Cost $ — )				—
	NUMBER OF  SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2 .1%
CPN Retail Growth Leasehold Property Fund		1,180,000	$	735
F&C Commercial Property Trust Ltd.		537,266		919
IRP Property Investments Ltd.		100,008		98
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(2) (3)		21,213,818		21,214
Picton Property Income Ltd.		318,684		187
Standard Life Investment Property Income Trust PLC		121,017		112
UK Commercial Property Trust Ltd.		447,467		479
Total Investment Companies(1) (Cost $23,815)(1)				23,744
Total Investments - 98.4% (Cost $937,239)				1,133,283
Other Assets less Liabilities - 1.6%				18,441
NET ASSETS - 100.0%			$	1,151,724

(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 $12,871,000 during the nine months ended December 31, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 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)		176	$	17,919		Long		3/13	$	238
Euro Stoxx 50 (Euro)		84		2,899		Long		3/13		(10	)
Hang Seng Index (Hong Kong Dollar)		41		5,997		Long		1/13		45
Nikkei 225 (Japanese Yen)		88		5,356		Long		3/13		420
SPI 200 (Australian Dollar)		62		7,430		Long		3/13		61
Total									$	754

At December 31, 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		40.3	%
Hong Kong Dollar		12.9
Japanese Yen		9.6
Australian Dollar		7.2
Euro		6.2
All other currencies less than 5%		23.8
Total		100.0	%

At December 31, 2012, the industry sectors for the Global Real Estate Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Diversified Real Estate Activity		15.8	%
Diversified REITs		10.8
Office REITs		9.5
Real Estate Development		6.8
Real Estate Operating Companies		10.6
Residential REITs		7.9
Retail REITs		21.9
Specialized REITs		11.4
Other Industries Less than 5%		5.3
Total		100.0	%

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL REAL ESTATE INDEX FUND continued

At December 31, 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		800	Canadian Dollar		797		1/2/13	$	1
United States Dollar		250	Australian Dollar		241		1/3/13		—	*
United States Dollar		750	British Pound		461		1/3/13		—	*
United States Dollar		1,200	Euro		910		1/3/13		1
United States Dollar		800	Hong Kong Dollar		6,201		1/3/13		—	*
United States Dollar		800	Singapore Dollar		977		1/3/13		—	*
United States Dollar		100	South African Rand		848		1/3/13		—	*
United States Dollar		200	Swedish Krona		1,301		1/3/13		—	*
United States Dollar		50	Swiss Franc		46		1/3/13		—	*
United States Dollar		32	Indonesian Rupiah		308,379		1/4/13		—	*
United States Dollar		2,000	Japanese Yen		172,933		1/4/13		(4	)
Australian Dollar		1,536	United States Dollar		1,600		3/20/13		15
Australian Dollar		1,351	United States Dollar		1,400		3/20/13		5
British Pound		615	United States Dollar		1,000		3/20/13		—	*
Canadian Dollar		990	United States Dollar		1,000		3/20/13		6
Euro		981	United States Dollar		1,300		3/20/13		4
Euro		531	United States Dollar		700		3/20/13		(1	)
Singapore Dollar		1,218	United States Dollar		1,000		3/20/13		3
Swedish Krona		2,617	United States Dollar		400		3/20/13		(2	)
United States Dollar		350	Australian Dollar		335		3/20/13		(5	)
United States Dollar		980	Australian Dollar		938		3/20/13		(12	)
United States Dollar		2,049	Australian Dollar		1,952		3/20/13		(33	)
United States Dollar		984	British Pound		609		3/20/13		5
United States Dollar		450	British Pound		279		3/20/13		4
United States Dollar		300	British Pound		185		3/20/13		1
United States Dollar		300	Canadian Dollar		296		3/20/13		(3	)
United States Dollar		720	Canadian Dollar		712		3/20/13		(6	)
United States Dollar		970	Canadian Dollar		956		3/20/13		(11	)
United States Dollar		1,290	Euro		985		3/20/13		10
United States Dollar		700	Euro		538		3/20/13		10
United States Dollar		400	Euro		305		3/20/13		3
United States Dollar		2,500	Hong Kong Dollar		19,372		3/20/13		—	*
United States Dollar		690	Hong Kong Dollar		5,346		3/20/13		—	*
United States Dollar		1,750	Hong Kong Dollar		13,560		3/20/13		—	*
United States Dollar		275	Singapore Dollar		336		3/20/13		—	*
United States Dollar		670	Singapore Dollar		818		3/20/13		—	*
United States Dollar		680	Singapore Dollar		829		3/20/13		(1	)
United States Dollar		350	South African Rand		3,068		3/20/13		8
United States Dollar		217	Swiss Franc		201		3/20/13		3
Japanese Yen		143,398	United States Dollar		1,700		3/21/13		44
United States Dollar		580	Japanese Yen		48,360		3/21/13		(21	)
United States Dollar		1,000	Japanese Yen		82,460		3/21/13		(48	)
United States Dollar		1,810	Japanese Yen		150,357		3/21/13		(73	)
Total								$	(97	)

* Amount rounds to less than one thousand.

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 December 31, 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.

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 Global Real Estate Index Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	13,857		$	—		$	—	$	13,857
Financials		504,160			588,862			2,007		1,095,029
Health Care		637			—			—		637
Convertible Bonds
Financials		—			16			—		16
Investment Companies		21,214			2,530			—		23,744
Total Investments	$	539,868		$	591,408		$	2,007	$	1,133,283
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	764		$	—		$	—	$	764
Foreign Currency Exchange Contracts		—			123			—		123
Liabilities
Futures Contracts		(10	)		—			—		(10	)
Foreign Currency Exchange Contracts		—			(220	)		—		(220	)
Total Other Financial Instruments	$	754		$	(97	)	$	—	$	657

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1

Industry	Value (000S)		Reason
Common Stocks
Consumer Discretionary	$	13,855	Valuations at unadjusted quoted market price
Financials		16,254	Valuations at unadjusted quoted market price
Total	$	30,109

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.

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)		BALANCE AS OF 12/31/12 (000S)
Common Stock
Financials	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	2,007	(2)	$	—	$	2,007

(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 December 31, 2012.

(2) The Transfers Into Level 3 were due to the security using a price provided by NTGI PVC.

The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at December 31, 2012 was $509, which is included in the Statement of Operations as part of the net change in unrealized appreciation (depreciation) on investments.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,001,278
Gross tax appreciation of investments	$	177,210
Gross tax depreciation of investments		(45,205	)
Net tax appreciation of investments	$	132,005

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4%
Australia - 4.5%
AGL Energy Ltd.		4,876	$	78
Alumina Ltd.		20,321		20
Amcor Ltd.		11,433		97
AMP Ltd.		25,785		131
Australia & New Zealand Banking Group Ltd.		24,617		644
Bendigo and Adelaide Bank Ltd.		3,278		29
Boral Ltd.		7,360		34
Brambles Ltd.		14,421		115
CFS Retail Property Trust Group		18,596		37
Coca-Cola Amatil Ltd.		5,085		71
Commonwealth Bank of Australia		14,448		939
Computershare Ltd.		4,257		40
Dexus Property Group		42,770		45
Fortescue Metals Group Ltd.		13,116		65
Goodman Group		14,713		67
GPT Group		13,439		52
Insurance Australia Group Ltd.		18,484		91
Lend Lease Group		5,456		53
Metcash Ltd.		8,148		28
Mirvac Group		34,532		54
National Australia Bank Ltd.		20,578		538
Newcrest Mining Ltd.		7,113		166
Orica Ltd.		3,302		87
Origin Energy Ltd.		9,850		121
OZ Minerals Ltd.		2,931		21
Santos Ltd.		9,115		107
Sonic Healthcare Ltd.		3,383		47
SP AusNet		14,728		17
Stockland		19,368		71
Sydney Airport		294		1
Toll Holdings Ltd.		5,792		28
Transurban Group		11,693		74
Westpac Banking Corp.		27,945		764
Woolworths Ltd.		11,146		341
				5,073
Austria - 0.1%
OMV A.G.		1,227		44
Telekom Austria A.G.		2,147		16
Verbund A.G.		553		14
				74
Belgium - 0.2%
Colruyt S.A.		727		36
Delhaize Group S.A.		956		38
KBC Groep N.V.		2,144		74
Solvay S.A., Class A		526		76
Umicore S.A.		1,027		57
				281
Canada - 5.3%
Agnico-Eagle Mines Ltd.		1,515		79
Agrium, Inc.		1,390		139
ARC Resources Ltd.		2,654		65
Bank of Nova Scotia		10,418		602
BCE, Inc.		2,349		101
Canadian National Railway Co.		3,948		359
Canadian Tire Corp. Ltd., Class A		729		51
Canadian Utilities Ltd., Class A		496		36
Cenovus Energy, Inc.		6,932		232
CGI Group, Inc., Class A*		2,000		46
Crescent Point Energy Corp.		3,066		116
Empire Co. Ltd., Class A		300		18
Enbridge, Inc.		6,902		298
Enerplus Corp.		1,744		23
Franco-Nevada Corp.		1,295		74
Gildan Activewear, Inc.		1,013		37
Kinross Gold Corp.		10,243		99
Loblaw Cos. Ltd.		1,072		45
Metro, Inc.		874		56
Nexen, Inc.		4,663		125
Open Text Corp.*		500		28
Osisko Mining Corp.*		3,517		28
Pacific Rubiales Energy Corp.		2,714		63
Penn West Petroleum Ltd.		4,651		50
Potash Corp. of Saskatchewan, Inc.		7,795		317
Rogers Communications, Inc., Class B		3,405		155
Royal Bank of Canada		13,107		789
Saputo, Inc.		1,114		56
Silver Wheaton Corp.		3,200		115
Suncor Energy, Inc.		13,947		459
Talisman Energy, Inc.		9,677		109
Teck Resources Ltd., Class B		5,344		194
Tim Hortons, Inc.		1,400		69
Toronto-Dominion Bank (The)		8,245		694
TransAlta Corp.		2,043		31
Valeant Pharmaceuticals International, Inc.*		2,700		161
Yamana Gold, Inc.		7,008		121
				6,040

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4% continued
Denmark - 0.7%
Danske Bank A/S*		5,869	$	100
Novo Nordisk A/S, Class B		3,699		604
Novozymes A/S, Class B		2,093		59
Tryg A/S		208		16
				779
Finland - 0.3%
Kesko OYJ, Class B		585		19
Metso OYJ		1,212		53
Neste Oil OYJ		1,226		16
Nokia OYJ		34,420		135
Stora Enso OYJ, Class R		5,009		35
UPM-Kymmene OYJ		4,846		58
				316
France - 2.7%
Accor S.A.		1,277		46
Air Liquide S.A.		2,814		353
Bouygues S.A.		1,751		52
Bureau Veritas S.A.		505		56
Carrefour S.A.		5,445		141
Casino Guichard Perrachon S.A.		556		54
Christian Dior S.A.		493		85
Cie de St-Gobain		3,687		158
Cie Generale de Geophysique - Veritas*		1,480		45
CNP Assurances		1,183		18
Danone S.A.		5,236		346
France Telecom S.A.		16,993		190
Gecina S.A.		210		23
Imerys S.A.		274		18
JCDecaux S.A.		637		15
Lagardere S.C.A.		1,022		35
L’Oreal S.A.		2,198		307
Peugeot S.A.*		2,191		16
Renault S.A.		1,739		96
Schneider Electric S.A.		4,749		354
Societe BIC S.A.		277		33
Suez Environnement Co.		2,686		32
Technip S.A.		897		103
Unibail-Rodamco S.E.		839		205
Veolia Environnement S.A.		3,159		39
Vinci S.A.		4,215		201
				3,021
Germany - 3.0%
Adidas A.G.		1,927		172
BASF S.E.		8,308		781
Bayerische Motoren Werke A.G.		3,022		291
Beiersdorf A.G.		894		73
Deutsche Boerse A.G.		1,801		110
Deutsche Lufthansa A.G. (Registered)		1,912		36
Deutsche Post A.G. (Registered)		8,211		180
Fraport A.G. Frankfurt Airport Services Worldwide		323		19
GEA Group A.G.		1,646		53
HeidelbergCement A.G.		1,246		76
Henkel A.G. & Co. KGaA		1,162		80
Hochtief A.G.*		211		12
K+S A.G. (Registered)		1,538		71
Linde A.G.		1,682		293
Merck KGaA		622		82
Metro A.G.		1,195		33
Muenchener Rueckversicherungs A.G. (Registered)		1,639		294
Salzgitter A.G.		322		17
SAP A.G.		8,361		670
Suedzucker A.G.		801		33
				3,376
Greece - 0.0%
Coca Cola Hellenic Bottling Co. S.A.*		1,892		45
Hong Kong - 0.5%
Cathay Pacific Airways Ltd.		10,000		19
CLP Holdings Ltd.		16,599		139
Hang Seng Bank Ltd.		6,778		105
Hong Kong & China Gas Co. Ltd.		47,316		130
Li & Fung Ltd.		52,000		93
MTR Corp. Ltd.		12,791		51
				537
Ireland - 0.5%
CRH PLC		6,690		139
Eaton Corp. PLC		4,189		227
Experian PLC		9,312		150
Kerry Group PLC, Class A		1,432		76
				592
Israel - 0.0%
Delek Group Ltd.		44		10
Italy - 1.5%
Assicurazioni Generali S.p.A.		10,789		197
Atlantia S.p.A.		2,816		51

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4% continued
Italy - 1.5% continued
Enel Green Power S.p.A.		16,590	$	31
Eni S.p.A.		22,901		565
Fiat Industrial S.p.A.		8,173		90
Intesa Sanpaolo S.p.A.		92,833		161
Intesa Sanpaolo S.p.A. (RSP)		6,396		9
Pirelli & C. S.p.A.		2,308		26
Saipem S.p.A.		2,397		93
Snam S.p.A.		16,676		77
Telecom Italia S.p.A.		84,852		77
Tenaris S.A.		4,266		89
Terna Rete Elettrica Nazionale S.p.A.		11,270		45
UniCredit S.p.A.*		37,149		183
				1,694
Japan - 9.8%
Aeon Co. Ltd.		5,400		62
Aeon Credit Service Co. Ltd.		390		8
Aeon Mall Co. Ltd.		600		15
Air Water, Inc.		1,000		13
Aisin Seiki Co. Ltd.		1,600		50
Ajinomoto Co., Inc.		6,000		79
All Nippon Airways Co. Ltd.		9,000		19
Amada Co. Ltd.		3,000		19
Asahi Glass Co. Ltd.		9,000		65
Asahi Kasei Corp.		11,000		65
Asics Corp.		1,500		23
Astellas Pharma, Inc.		4,100		184
Benesse Holdings, Inc.		600		25
Brother Industries Ltd.		2,100		23
Canon, Inc.		10,300		404
Casio Computer Co. Ltd.		1,800		16
Central Japan Railway Co.		1,300		105
Chiyoda Corp.		2,000		29
Chugai Pharmaceutical Co. Ltd.		2,110		40
Chugoku Electric Power (The) Co., Inc.		2,600		41
Cosmo Oil Co. Ltd.		5,000		11
Dai Nippon Printing Co. Ltd.		5,000		39
Daicel Corp.		3,000		20
Daido Steel Co. Ltd.		3,000		15
Daikin Industries Ltd.		2,100		72
Dainippon Sumitomo Pharma Co. Ltd.		1,535		18
Daiwa House Industry Co. Ltd.		5,000		86
Denki Kagaku Kogyo K.K.		4,000		14
Denso Corp.		4,300		150
East Japan Railway Co.		3,200		207
Eisai Co. Ltd.		2,305		96
FamilyMart Co. Ltd.		600		25
Fast Retailing Co. Ltd.		500		127
Fuji Heavy Industries Ltd.		5,608		71
FUJIFILM Holdings Corp.		4,200		85
Fujitsu Ltd.		17,000		71
Furukawa Electric Co. Ltd.*		5,000		11
GS Yuasa Corp.		3,000		12
Hino Motors Ltd.		2,000		18
Hitachi Chemical Co. Ltd.		1,017		15
Hitachi Construction Machinery Co. Ltd.		1,000		21
Hitachi High-Technologies Corp.		543		11
Hitachi Metals Ltd.		1,000		8
Honda Motor Co. Ltd.		14,700		542
Ibiden Co. Ltd.		1,200		19
Idemitsu Kosan Co. Ltd.		200		17
Inpex Corp.		21		112
Isetan Mitsukoshi Holdings Ltd.		2,800		27
Japan Steel Works (The) Ltd.		3,000		19
JSR Corp.		1,600		30
JTEKT Corp.		2,200		21
Jupiter Telecommunications Co. Ltd.		17		21
Kaneka Corp.		2,000		10
Kansai Paint Co. Ltd.		2,000		22
Kao Corp.		4,900		128
KDDI Corp.		2,400		170
Keikyu Corp.		4,000		35
Keio Corp.		5,000		37
Kikkoman Corp.		2,000		29
Kobe Steel Ltd.*		24,551		31
Komatsu Ltd.		8,600		220
Konica Minolta Holdings, Inc.		4,500		32
Kubota Corp.		10,000		115
Kuraray Co. Ltd.		3,300		43
Kurita Water Industries Ltd.		900		20
Kyocera Corp.		1,400		127
Kyowa Hakko Kirin Co. Ltd.		2,000		20
Lawson, Inc.		500		34
LIXIL Group Corp.		2,600		58
Makita Corp.		1,000		46
Marubeni Corp.		14,123		101
Marui Group Co. Ltd.		1,700		14
McDonald’s Holdings Co. Japan Ltd.		500		13
Mitsubishi Chemical Holdings Corp.		12,000		60

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4% continued
Japan - 9.8% continued
Mitsubishi Electric Corp.		17,000	$	145
Mitsubishi Gas Chemical Co., Inc.		3,000		18
Mitsubishi Motors Corp.*		35,910		37
Mitsubishi UFJ Financial Group, Inc.		115,200		620
Mitsubishi UFJ Lease & Finance Co. Ltd.		483		21
Mitsui Chemicals, Inc.		8,000		21
Mitsui Fudosan Co. Ltd.		7,000		171
Mitsui O.S.K. Lines Ltd.		10,000		30
Mizuho Financial Group, Inc.		206,373		378
Murata Manufacturing Co. Ltd.		1,815		107
Nabtesco Corp.		900		20
NGK Insulators Ltd.		3,000		35
NGK Spark Plug Co. Ltd.		2,000		27
Nidec Corp.		1,000		58
Nikon Corp.		3,100		92
Nippon Meat Packers, Inc.		2,000		28
Nippon Steel & Sumitomo Metal Corp.		70,520		173
Nippon Yusen K.K.		14,000		33
Nissan Motor Co. Ltd.		23,000		218
Nisshin Seifun Group, Inc.		1,500		19
Nissin Foods Holdings Co. Ltd.		500		19
Nitto Denko Corp.		1,500		74
Nomura Research Institute Ltd.		866		18
NSK Ltd.		4,000		28
NTT Data Corp.		12		37
NTT DOCOMO, Inc.		141		202
Odakyu Electric Railway Co. Ltd.		6,000		62
Omron Corp.		1,800		43
Osaka Gas Co. Ltd.		17,000		62
Panasonic Corp.		20,800		126
Resona Holdings, Inc.		18,100		82
Ricoh Co. Ltd.		6,000		64
Rohm Co. Ltd.		900		29
Santen Pharmaceutical Co. Ltd.		700		27
Secom Co. Ltd.		1,900		96
Sekisui Chemical Co. Ltd.		4,000		35
Sekisui House Ltd.		5,000		55
Seven & I Holdings Co. Ltd.		6,900		194
Sharp Corp.		9,000		32
Shikoku Electric Power Co., Inc.		1,800		29
Shimizu Corp.		6,000		23
Shin-Etsu Chemical Co. Ltd.		3,800		232
Shizuoka Bank (The) Ltd.		5,000		49
Showa Shell Sekiyu K.K.		1,900		11
Softbank Corp.		8,600		315
Sony Corp.		9,300		104
Stanley Electric Co. Ltd.		1,333		19
Sumitomo Chemical Co. Ltd.		14,000		44
Sumitomo Electric Industries Ltd.		6,800		79
Sumitomo Heavy Industries Ltd.		5,000		24
Sumitomo Metal Mining Co. Ltd.		5,000		71
Sumitomo Mitsui Financial Group, Inc.		12,100		440
Sumitomo Rubber Industries Ltd.		1,400		17
Suruga Bank Ltd.		2,170		27
Suzuken Co. Ltd.		653		18
Suzuki Motor Corp.		3,471		91
Sysmex Corp.		671		31
T&D Holdings, Inc.		5,100		62
Taiyo Nippon Sanso Corp.		2,000		11
Takashimaya Co. Ltd.		2,000		14
Takeda Pharmaceutical Co. Ltd.		7,100		317
TDK Corp.		1,100		40
Teijin Ltd.		9,000		22
Tobu Railway Co. Ltd.		9,000		48
Toho Co. Ltd.		1,100		19
Toho Gas Co. Ltd.		4,000		21
Tokyo Gas Co. Ltd.		22,000		101
Tokyu Corp.		10,000		56
Toppan Printing Co. Ltd.		5,000		31
Toray Industries, Inc.		13,000		79
TOTO Ltd.		3,000		23
Toyo Seikan Kaisha Ltd.		1,300		17
Toyoda Gosei Co. Ltd.		500		10
Toyota Boshoku Corp.		500		6
Toyota Industries Corp.		1,500		48
Toyota Tsusho Corp.		1,900		47
Tsumura & Co.		500		15
Ube Industries Ltd.		10,000		24
Ushio, Inc.		800		9
Yakult Honsha Co. Ltd.		900		39
Yamada Denki Co. Ltd.		756		29
Yamaha Corp.		1,500		16
Yamaha Motor Co. Ltd.		2,700		30
Yamato Holdings Co. Ltd.		3,600		55
Yamazaki Baking Co. Ltd.		859		10
Yokogawa Electric Corp.		1,700		18
				11,038

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4% continued
Netherlands - 1.6%
Akzo Nobel N.V.		2,142	$	141
ASML Holding N.V.*		2,959		192
Core Laboratories N.V.		400		44
DE Master Blenders 1753 N.V.*		5,042		59
Delta Lloyd N.V.		1,005		17
Fugro N.V. - CVA		590		34
Koninklijke Ahold N.V.		9,047		120
Koninklijke DSM N.V.		1,389		84
Koninklijke Philips Electronics N.V.		9,503		255
Koninklijke Vopak N.V.		619		44
LyondellBasell Industries N.V., Class A		2,945		168
Randstad Holding N.V.		1,148		42
Unilever N.V. - CVA		14,718		555
Wolters Kluwer N.V.		2,634		54
				1,809
New Zealand - 0.1%
Auckland International Airport Ltd.		8,445		19
Contact Energy Ltd.*		3,201		14
Fletcher Building Ltd.		5,780		40
				73
Norway - 0.4%
Aker Solutions ASA		1,622		33
DNB ASA		8,792		112
Norsk Hydro ASA		7,964		41
Orkla ASA		7,150		63
Statoil ASA		10,140		254
				503
Portugal - 0.1%
Energias de Portugal S.A.		18,433		55
Galp Energia SGPS S.A.		2,213		34
Jeronimo Martins SGPS S.A.		2,054		40
Portugal Telecom SGPS S.A. (Registered)		6,139		31
				160
Singapore - 0.2%
CapitaMall Trust		20,000		35
Flextronics International Ltd.*		6,253		39
SembCorp Industries Ltd.		9,000		39
Singapore Airlines Ltd.		5,000		44
Singapore Press Holdings Ltd.		15,000		50
				207
Spain - 2.1%
Abertis Infraestructuras S.A.		3,412		57
Acciona S.A.		196		15
ACS Actividades de Construccion y Servicios S.A.		1,154		30
Banco Bilbao Vizcaya Argentaria S.A.		49,309		453
Banco de Sabadell S.A.*		27,085		72
Banco Santander S.A.		93,524		754
Distribuidora Internacional de Alimentacion S.A.		4,984		32
Enagas S.A.		1,588		34
Ferrovial S.A.		3,419		50
Gas Natural SDG S.A.		2,982		54
Grifols S.A.*		1,282		45
Grifols S.A., Class B*		111		3
Iberdrola S.A.		37,144		207
Inditex S.A.		1,989		279
International Consolidated Airlines Group S.A.*		8,898		26
Red Electrica Corp. S.A.		1,018		50
Repsol S.A.		7,626		157
Zardoya Otis S.A.		1,235		18
				2,336
Sweden - 1.9%
Alfa Laval AB		3,248		68
Assa Abloy AB, Class B		3,124		118
Atlas Copco AB, Class A		6,253		173
Atlas Copco AB, Class B		3,708		91
Autoliv, Inc.		813		55
Boliden AB		2,549		48
Electrolux AB, Class B		2,025		53
Hennes & Mauritz AB, Class B		8,649		301
Investment AB Kinnevik, Class B		1,608		34
Nordea Bank AB		24,310		233
Sandvik AB		9,460		152
Scania AB, Class B		2,669		55
Skandinaviska Enskilda Banken AB, Class A		12,721		108
Skanska AB, Class B		3,448		57
SKF AB, Class B		3,621		92
Svenska Cellulosa AB, Class B		5,082		111
Swedbank AB, Class A		7,232		142
TeliaSonera AB		20,073		137
Volvo AB, Class B		12,366		170
				2,198

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4% continued
Switzerland - 3.8%
Adecco S.A. (Registered)		1,110	$	59
Aryzta A.G.*		824		42
Cie Financiere Richemont S.A., Class A (Bearer)		4,732		378
Geberit A.G. (Registered)		325		72
Givaudan S.A. (Registered)*		80		85
Lindt & Spruengli A.G. (Registered)		1		38
Lindt & Spruengli A.G. (Participation Certificate)		8		26
Noble Corp.		2,300		80
Novartis A.G. (Registered)		20,869		1,321
Pentair Ltd. (Registered)		1,979		97
Roche Holding A.G. (Genusschein)		6,374		1,299
Sika A.G. (Bearer)		20		46
STMicroelectronics N.V.		6,046		44
Sulzer A.G. (Registered)		197		31
Swiss Re A.G.		3,228		236
Syngenta A.G. (Registered)		843		340
Wolseley PLC		2,429		116
				4,310
United Kingdom - 9.3%
Aggreko PLC		2,417		69
AMEC PLC		2,665		44
Antofagasta PLC		3,571		79
Associated British Foods PLC		3,300		84
Balfour Beatty PLC		5,989		27
BG Group PLC		30,826		517
British Land Co. PLC		7,183		67
British Sky Broadcasting Group PLC		9,654		121
Bunzl PLC		2,940		48
Burberry Group PLC		3,892		80
Capita PLC		5,988		74
Capital Shopping Centres Group PLC		5,397		30
Centrica PLC		47,598		259
Compass Group PLC		16,597		196
Fresnillo PLC		1,502		47
GlaxoSmithKline PLC		45,183		981
HSBC Holdings PLC		166,366		1,760
Intertek Group PLC		1,546		78
Invensys PLC		7,871		43
J. Sainsbury PLC		10,159		57
Johnson Matthey PLC		1,979		76
Kingfisher PLC		21,447		99
Land Securities Group PLC		7,056		95
Marks & Spencer Group PLC		14,325		89
National Grid PLC		33,038		378
Next PLC		1,491		92
Old Mutual PLC		44,176		131
Pearson PLC		7,542		148
Prudential PLC		23,240		324
Reckitt Benckiser Group PLC		5,926		371
Rexam PLC		7,349		52
RSA Insurance Group PLC		30,907		62
Segro PLC		7,168		29
Smiths Group PLC		3,650		72
SSE PLC		8,766		203
Standard Chartered PLC		21,734		551
Standard Life PLC		21,134		113
Subsea 7 S.A.		2,736		66
Tate & Lyle PLC		4,537		56
TESCO PLC		72,875		400
Tullow Oil PLC		8,446		172
Unilever PLC		11,635		442
United Utilities Group PLC		6,600		72
Vodafone Group PLC		446,652		1,123
Whitbread PLC		1,733		69
WM Morrison Supermarkets PLC		20,232		87
WPP PLC*		11,619		169
Xstrata PLC		19,071		339
				10,541
United States - 47.8%
3M Co.		5,916		549
Abbott Laboratories		14,300		937
Accenture PLC, Class A		5,700		379
ACE Ltd.		3,084		246
Adobe Systems, Inc.*		4,589		173
Advance Auto Parts, Inc.		600		43
Aetna, Inc.		2,963		137
Aflac, Inc.		4,345		231
Agilent Technologies, Inc.		3,160		129
Air Products & Chemicals, Inc.		1,922		161
Alcoa, Inc.		9,700		84
Allegheny Technologies, Inc.		900		27
American Express Co.		9,216		530
American Tower Corp.		3,600		278
American Water Works Co., Inc.		1,600		59
Ameriprise Financial, Inc.		1,900		119
AMETEK, Inc.		2,350		88

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4% continued
United States - 47.8% continued
Analog Devices, Inc.		2,705	$	114
Annaly Capital Management, Inc.		9,000		126
Apache Corp.		3,499		275
Applied Materials, Inc.		11,091		127
Arch Capital Group Ltd.*		1,200		53
Assurant, Inc.		700		24
Autodesk, Inc.*		2,000		71
AutoZone, Inc.*		313		111
Avery Dennison Corp.		800		28
Avon Products, Inc.		3,900		56
Axis Capital Holdings Ltd.		1,100		38
Ball Corp.		1,240		55
Bank of New York Mellon (The) Corp.		10,638		273
Baxter International, Inc.		4,931		329
BB&T Corp.		6,440		187
Becton, Dickinson and Co.		1,813		142
Bed Bath & Beyond, Inc.*		2,050		115
Berkshire Hathaway, Inc., Class B*		8,397		753
Best Buy Co., Inc.		2,725		32
Biogen Idec, Inc.*		2,030		298
BlackRock, Inc.		1,200		248
BorgWarner, Inc.*		960		69
Boston Properties, Inc.		1,370		145
Bristol-Myers Squibb Co.		15,283		498
Bunge Ltd.		1,300		94
C.H. Robinson Worldwide, Inc.		1,470		93
CA, Inc.		3,000		66
Cablevision Systems Corp., Class A (Registered)		1,491		22
Calpine Corp.*		2,569		47
Cameron International Corp.*		2,200		124
Campbell Soup Co.		1,600		56
Capital One Financial Corp.		5,300		307
CarMax, Inc.*		2,000		75
CBRE Group, Inc., Class A*		2,723		54
Celanese Corp., Class A		1,400		62
CenterPoint Energy, Inc.		3,680		71
CenturyLink, Inc.		5,796		227
Charles Schwab (The) Corp.		10,013		144
Chipotle Mexican Grill, Inc.*		294		87
Chubb (The) Corp.		2,432		183
Cigna Corp.		2,569		137
Cimarex Energy Co.		800		46
Cincinnati Financial Corp.		1,400		55
Cisco Systems, Inc.		48,656		956
Citrix Systems, Inc.*		1,800		118
Cliffs Natural Resources, Inc.		1,300		50
Clorox (The) Co.		1,100		81
CME Group, Inc.		2,805		142
Coca-Cola Enterprises, Inc.		2,600		82
Cognizant Technology Solutions Corp., Class A*		2,730		202
Colgate-Palmolive Co.		4,364		456
Comerica, Inc.		1,700		52
ConAgra Foods, Inc.		3,600		106
Concho Resources, Inc.*		873		70
Consolidated Edison, Inc.		2,723		151
Continental Resources, Inc.*		357		26
Corning, Inc.		13,200		167
Crown Castle International Corp.*		2,657		192
CSX Corp.		9,580		189
Cummins, Inc.		1,659		180
Danaher Corp.		5,364		300
Darden Restaurants, Inc.		1,130		51
Deere & Co.		3,354		290
Dell, Inc.		13,039		132
Denbury Resources, Inc.*		3,500		57
DENTSPLY International, Inc.		1,300		51
Devon Energy Corp.		3,505		182
Discover Financial Services		4,790		185
Discovery Communications, Inc., Class A*		1,300		83
Discovery Communications, Inc., Class C*		800		47
Dover Corp.		1,659		109
Dr Pepper Snapple Group, Inc.		1,989		88
Duke Realty Corp.		2,200		31
Dun & Bradstreet (The) Corp.		423		33
Eastman Chemical Co.		1,400		95
Eaton Vance Corp.		1,000		32
Ecolab, Inc.		2,672		192
Edwards Lifesciences Corp.*		1,000		90
EMC Corp.*		19,000		481
Emerson Electric Co.		6,655		352
Energen Corp.		600		27
Energizer Holdings, Inc.		600		48
EOG Resources, Inc.		2,489		301
EQT Corp.		1,305		77
Equifax, Inc.		1,100		60
Estee Lauder (The) Cos., Inc., Class A		2,100		126
Expeditors International of Washington, Inc.		2,090		83

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4% continued
United States - 47.8% continued
Fastenal Co.		2,528	$	118
Federal Realty Investment Trust		600		62
FMC Technologies, Inc.*		2,200		94
Ford Motor Co.		32,200		417
Franklin Resources, Inc.		1,408		177
Frontier Communications Corp.		9,100		39
GameStop Corp., Class A		1,000		25
Gap (The), Inc.		2,975		92
General Mills, Inc.		5,960		241
Genuine Parts Co.		1,520		97
Gilead Sciences, Inc.*		6,862		504
GOOGLE, Inc., Class A*		2,386		1,693
Green Mountain Coffee Roasters, Inc.*		1,221		50
H.J. Heinz Co.		3,000		173
Harley-Davidson, Inc.		2,055		100
Hasbro, Inc.		1,100		39
HCP, Inc.		4,200		190
Health Care REIT, Inc.		2,400		147
Henry Schein, Inc.*		833		67
Herbalife Ltd.		1,000		33
Hess Corp.		2,846		151
Hewlett-Packard Co.		17,983		256
Hormel Foods Corp.		1,400		44
Host Hotels & Resorts, Inc.		6,429		101
Hudson City Bancorp, Inc.		4,565		37
Humana, Inc.		1,447		99
IHS, Inc., Class A*		525		50
Illinois Tool Works, Inc.		3,821		232
Ingersoll-Rand PLC		2,880		138
Integrys Energy Group, Inc.		700		37
Intel Corp.		45,395		936
IntercontinentalExchange, Inc.*		680		84
International Business Machines Corp.		9,861		1,889
International Flavors & Fragrances, Inc.		700		47
International Paper Co.		3,722		148
Intuit, Inc.		2,600		155
Invesco Ltd.		4,200		110
Iron Mountain, Inc.		1,406		44
J.B. Hunt Transport Services, Inc.		800		48
J.C. Penney Co., Inc.		1,512		30
J.M. Smucker (The) Co.		1,000		86
Johnson & Johnson		25,001		1,753
Johnson Controls, Inc.		6,221		191
Joy Global, Inc.		934		60
Kellogg Co.		2,200		123
KeyCorp		8,619		73
Kimberly-Clark Corp.		3,635		307
Kinder Morgan Management LLC*		908		69
Kinder Morgan Management LLC - (Fractional Shares)*		373,204		—
Kohl’s Corp.		2,000		86
Kroger (The) Co.		4,800		125
Lam Research Corp.*		1,700		61
Legg Mason, Inc.		1,200		31
Level 3 Communications, Inc.*		1,400		32
Liberty Global, Inc., Class A*		1,200		76
Liberty Global, Inc., Class C*		1,000		59
Liberty Interactive Corp., Class A*		4,600		91
Liberty Media Corp. - Liberty Capital, Class A*		1,000		116
Liberty Property Trust		1,100		39
Life Technologies Corp.*		1,500		74
LKQ Corp.*		2,500		53
Lowe’s Cos., Inc.		10,700		380
M&T Bank Corp.		1,041		103
Macerich (The) Co.		1,200		70
Macy’s, Inc.		3,600		140
Manpower, Inc.		800		34
Marathon Oil Corp.		6,500		199
Marathon Petroleum Corp.		3,000		189
Marriott International, Inc., Class A		2,416		90
Marriott International, Inc., Class A - (Fractional Shares)*		40,652		—
Marsh & McLennan Cos., Inc.		5,100		176
Masco Corp.		3,140		52
Mattel, Inc.		3,048		112
McCormick & Co., Inc. (Non Voting)		1,100		70
McDonald’s Corp.		9,202		812
MDU Resources Group, Inc.		1,400		30
Mead Johnson Nutrition Co.		1,934		127
MeadWestvaco Corp.		1,438		46
Medtronic, Inc.		9,275		380
Merck & Co., Inc.		27,700		1,134
Microchip Technology, Inc.		1,700		55
Mohawk Industries, Inc.*		565		51
Mondelez International, Inc., Class A		15,263		389
Motorola Solutions, Inc.		2,308		129
NASDAQ OMX Group (The), Inc.		1,100		28
National Oilwell Varco, Inc.		3,812		261

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4% continued
United States - 47.8% continued
Netflix, Inc.*		500	$	46
New York Community Bancorp, Inc.		4,000		52
Newell Rubbermaid, Inc.		2,415		54
Newfield Exploration Co.*		1,300		35
NextEra Energy, Inc.		3,582		248
NIKE, Inc., Class B		6,660		344
NiSource, Inc.		2,500		62
Noble Energy, Inc.		1,600		163
Nordstrom, Inc.		1,457		78
Norfolk Southern Corp.		3,007		186
Northeast Utilities		2,811		110
Northern Trust Corp.(1) (2)		2,000		100
Nuance Communications, Inc.*		2,200		49
Nucor Corp.		2,774		120
NVIDIA Corp.		5,354		66
NYSE Euronext		2,242		71
Oceaneering International, Inc.		1,000		54
ONEOK, Inc.		1,800		77
Oracle Corp.		35,500		1,183
O’Reilly Automotive, Inc.*		1,100		98
Owens-Illinois, Inc.*		1,579		34
PACCAR, Inc.		2,975		134
Pall Corp.		1,000		60
Parker Hannifin Corp.		1,390		118
PartnerRe Ltd.		600		48
Patterson Cos., Inc.		681		23
People’s United Financial, Inc.		3,347		40
Pepco Holdings, Inc.		2,000		39
PepsiCo, Inc.		14,128		967
PetSmart, Inc.		1,000		68
PG&E Corp.		3,835		154
Phillips 66		5,400		287
Pinnacle West Capital Corp.		1,000		51
Pioneer Natural Resources Co.		1,100		117
Pitney Bowes, Inc.		1,950		21
Plains Exploration & Production Co.*		1,200		56
PNC Financial Services Group, Inc.		4,829		282
Praxair, Inc.		2,744		300
Precision Castparts Corp.		1,300		246
Principal Financial Group, Inc.		2,702		77
Procter & Gamble (The) Co.		25,068		1,702
Progressive (The) Corp.		5,471		115
Prologis, Inc.		4,295		157
Prudential Financial, Inc.		4,272		228
QEP Resources, Inc.		1,649		50
QUALCOMM, Inc.		15,500		961
Quanta Services, Inc.*		1,800		49
Range Resources Corp.		1,400		88
Regency Centers Corp.		800		38
Regions Financial Corp.		12,583		90
RenaissanceRe Holdings Ltd.		418		34
ResMed, Inc.		1,200		50
Robert Half International, Inc.		1,200		38
Rock-Tenn Co., Class A		654		46
Rockwell Automation, Inc.		1,267		106
Rockwell Collins, Inc.		1,232		72
Roper Industries, Inc.		889		99
Ross Stores, Inc.		2,002		108
Royal Caribbean Cruises Ltd.		1,200		41
Safeway, Inc.		2,300		42
Salesforce.com, Inc.*		1,200		202
SBA Communications Corp., Class A*		1,100		78
Scripps Networks Interactive, Inc., Class A		800		46
Sealed Air Corp.		1,500		26
Sempra Energy		2,127		151
Sherwin-Williams (The) Co.		800		123
Sigma-Aldrich Corp.		1,100		81
Simon Property Group, Inc.		2,741		433
Sims Metal Management Ltd.		1,335		13
Southwest Airlines Co.		1,600		16
Southwestern Energy Co.*		3,300		110
Spectra Energy Corp.		6,100		167
Sprint Nextel Corp.*		26,752		152
Staples, Inc.		6,655		76
Starbucks Corp.		6,912		371
Starwood Hotels & Resorts Worldwide, Inc.		1,780		102
State Street Corp.		4,326		203
Superior Energy Services, Inc.*		1,378		29
Symantec Corp.*		6,300		119
Sysco Corp.		5,417		172
T. Rowe Price Group, Inc.		2,229		145
Target Corp.		5,671		336
Teradata Corp.*		1,500		93
Texas Instruments, Inc.		10,372		321
Thomson Reuters Corp.		3,397		98
Tiffany & Co.		1,267		73
Time Warner Cable, Inc.		2,800		272
Time Warner, Inc.		8,600		411

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.4% continued
United States - 47.8% continued
TJX Cos., Inc.		6,736	$	286
Travelers (The) Cos., Inc.		3,497		251
Tyco International Ltd.		4,000		117
U.S. Bancorp		17,205		550
Ultra Petroleum Corp.*		1,400		25
Under Armour, Inc., Class A*		800		39
Union Pacific Corp.		4,300		541
United Parcel Service, Inc., Class B		6,641		490
Ventas, Inc.		2,800		181
Vertex Pharmaceuticals, Inc.*		1,900		80
VF Corp.		811		122
Virgin Media, Inc.		2,300		85
Vornado Realty Trust		1,536		123
W.W. Grainger, Inc.		511		103
Waste Management, Inc.		4,100		138
Waters Corp.*		800		70
Weatherford International Ltd.*		6,900		77
WellPoint, Inc.		2,905		177
Whirlpool Corp.		660		67
Whiting Petroleum Corp.*		1,042		45
Whole Foods Market, Inc.		1,600		146
Williams (The) Cos., Inc.		6,100		200
Windstream Corp.		5,090		42
Wisconsin Energy Corp.		2,100		77
Xcel Energy, Inc.		4,600		123
Xerox Corp.		12,131		83
Xylem, Inc.		1,600		43
Yahoo!, Inc.*		10,200		203
				54,001
Total Common Stocks(3) (Cost $90,855)(3)				109,014
PREFERRED STOCKS - 0.2%
Germany - 0.2%
Bayerische Motoren Werke A.G.		470		30
Henkel A.G. & Co. KGaA		1,652		136
ProSiebenSat.1 Media A.G.		736		21
				187
Total Preferred Stocks(3) (Cost $115)(3)				187
RIGHTS - 0.0%
Spain - 0.0%
Grifols S.A.*		1,380		2
Repsol S.A.(4) *		7,166		4
				6
Total Rights(3) (Cost $5)(3)				6
INVESTMENT COMPANIES - 1 .3%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(5) (6)		1,527,962		1,528
Total Investment Companies (Cost $1,528)				1,528
Total Investments - 97.9% (Cost $92,503)				110,735
Other Assets less Liabilities - 2.1%				2,358
NET ASSETS - 100.0%			$	113,093

(1) At March 31, 2012, the value of the Fund’s investment in Northern Trust Corp. was approximately $95,000. There were no purchases and sales during the nine months ended December 31, 2012. The change in net unrealized appreciation during the nine months ended December 31, 2012, was approximately $5,000.

(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) When-Issued Security.

(5) 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 $996,000 during the nine months ended December 31, 2012.

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

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 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)		31	$	2,201		Long		3/13	$	4
Euro Stoxx 50 (Euro)		16		552		Long		3/13		(2	)

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
FTSE 100 Index (British Pound)		4	$	379		Long		3/13	$	(2	)
Nikkei 225 (Japenese Yen)		3		183		Long		3/13		—	*
S&P/TSX 60 Index (Canadian Dollar)		1		143		Long		3/13		1
SPI 200 (Australian Dollar)		1		120		Long		3/13		1
Topix Index (Japenese Yen)		3		298		Long		3/13		19
Total									$	21

* Amounts round to less than one thousand.

At December 31, 2012, the Global Sustainability Index Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
United States Dollar		50.0	%
Euro		12.2
Japanese Yen		10.1
British Pound		9.9
Canadian Dollar		5.6
All other currencies less than 5%		12.2
Total		100.0	%

At December 31, 2012, the industry sectors for the Global Sustainability Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.4	%
Consumer Staples		10.3
Energy		7.3
Financials		21.5
Health Care		11.4
Industrials		11.7
Information Technology		12.6
Materials		7.4
Telecommunication Services		3.0
Utilities		3.4
Total		100.0	%

At December 31, 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)
United States Dollar		200	Canadian Dollar		199		1/2/13	$	—	*
United States Dollar		180	Australian Dollar		173		1/3/13		—	*
United States Dollar		100	British Pound		62		1/3/13		—	*
United States Dollar		400	British Pound		246		1/3/13		—	*
United States Dollar		500	Euro		379		1/3/13		1
United States Dollar		100	Euro		76		1/3/13		—	*
United States Dollar		80	Swedish Krona		520		1/3/13		—	*
United States Dollar		150	Swiss Franc		137		1/3/13		—	*
United States Dollar		400	Japanese Yen		34,587		1/4/13		(1	)
United States Dollar		140	Japanese Yen		12,144		1/7/13		—	*
Australian Dollar		20	United States Dollar		21		3/20/13		—	*
British Pound		129	United States Dollar		210		3/20/13		—	*
Swiss Franc		27	United States Dollar		29		3/20/13		—	*
United States Dollar		104	British Pound		64		3/20/13		1
United States Dollar		120	British Pound		74		3/20/13		—	*
United States Dollar		40	Canadian Dollar		39		3/20/13		(1	)
United States Dollar		128	Euro		98		3/20/13		1
United States Dollar		120	Euro		91		3/20/13		—	*
United States Dollar		20	Swedish Krona		133		3/20/13		1
United States Dollar		34	Swiss Franc		31		3/20/13		—	*
Japanese Yen		5,815	United States Dollar		70		3/21/13		3
United States Dollar		100	Japanese Yen		8,374		3/21/13		(3	)
Total								$	2

* Amounts round to less than one thousand.

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL SUSTAINABILITY INDEX 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 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 indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	7,224		$	5,155		$	—	$	12,379
Consumer Staples		6,164			4,906			—		11,070
Energy		5,315			2,656			—		7,971
Financials		11,167			12,327			—		23,494
Health Care		7,320			5,149			—		12,469
Industrials		6,392			6,328			—		12,720
Information Technology		11,551			2,210			—		13,761
Materials		3,034			5,086			—		8,120
Telecommunication Services		1,017			2,261			—		3,278
Utilities		1,553			2,199			—		3,752
Preferred Stocks
Consumer Discretionary		—			51			—		51
Consumer Staples		—			136			—		136
Rights
Energy		—			4			—		4
Health Care		—			2			—		2
Investment Companies		1,528			—			—		1,528
Total Investments	$	62,265		$	48,470		$	—	$	110,735
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	25		$	—		$	—	$	25
Foreign Currency Exchange Contracts		—			7			—		7
Liabilities
Futures Contracts		(4	)		—			—		(4	)
Foreign Currency Exchange Contracts		—			(5	)		—		(5	)
Total Other Financial Instruments	$	21		$	2		$	—	$	23

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	93,366
Gross tax appreciation of investments	$	21,476
Gross tax depreciation of investments		(4,107	)
Net tax appreciation of investments	$	17,369

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6%
Australia - 8.6%
AGL Energy Ltd.		106,851	$	1,716
ALS Ltd.		62,520		711
Alumina Ltd.		451,666		437
Amcor Ltd.		236,623		2,001
AMP Ltd.		570,457		2,900
APA Group		157,816		911
Asciano Ltd.		181,274		886
ASX Ltd.		32,578		1,063
Aurizon Holdings Ltd.		346,364		1,360
Australia & New Zealand Banking Group Ltd.		521,571		13,655
Bendigo and Adelaide Bank Ltd.		81,771		729
BGP Holdings PLC - (Fractional Shares)*		1,085,479		—
BHP Billiton Ltd.		620,742		24,242
Boral Ltd.		138,419		637
Brambles Ltd.		305,548		2,432
Caltex Australia Ltd.		25,559		515
Centro Retail Australia		283,632		671
CFS Retail Property Trust Group		379,626		761
Coca-Cola Amatil Ltd.		113,182		1,591
Cochlear Ltd.		10,670		883
Commonwealth Bank of Australia		305,617		19,852
Computershare Ltd.		83,001		782
Crown Ltd.		75,414		840
CSL Ltd.		97,527		5,509
Dexus Property Group		879,661		933
Echo Entertainment Group Ltd.		134,801		486
Flight Centre Ltd.		10,098		286
Fortescue Metals Group Ltd.		262,433		1,302
Goodman Group		317,204		1,443
GPT Group		272,294		1,052
Harvey Norman Holdings Ltd.		100,033		199
Iluka Resources Ltd.		77,178		748
Incitec Pivot Ltd.		303,074		1,030
Insurance Australia Group Ltd.		409,732		2,015
James Hardie Industries Plc		81,546		789
Leighton Holdings Ltd.		28,243		531
Lend Lease Group		100,505		979
Macquarie Group Ltd.		61,514		2,288
Metcash Ltd.		160,673		560
Mirvac Group		692,806		1,080
National Australia Bank Ltd.		437,234		11,435
Newcrest Mining Ltd.		147,947		3,454
Orica Ltd.		72,907		1,917
Origin Energy Ltd.		211,742		2,591
OZ Minerals Ltd.		59,453		423
Qantas Airways Ltd.*		218,559		344
QBE Insurance Group Ltd.		229,770		2,630
Ramsay Health Care Ltd.		24,280		690
Rio Tinto Ltd.		84,339		5,870
Santos Ltd.		180,881		2,118
Sims Metal Management Ltd.		30,517		297
Sonic Healthcare Ltd.		69,345		968
SP AusNet		306,691		352
Stockland		424,663		1,566
Suncorp Group Ltd.		252,525		2,685
Sydney Airport		37,428		132
Tabcorp Holdings Ltd.		131,667		421
Tatts Group Ltd.		281,037		885
Telstra Corp. Ltd.		835,513		3,806
Toll Holdings Ltd.		124,983		598
Transurban Group		258,891		1,644
Treasury Wine Estates Ltd.		121,464		598
Wesfarmers Ltd.		193,415		7,464
Westfield Group		413,360		4,561
Westfield Retail Trust		571,390		1,798
Westpac Banking Corp.		592,063		16,186
Whitehaven Coal Ltd.		81,820		303
Woodside Petroleum Ltd.		126,975		4,525
Woolworths Ltd.		237,016		7,244
WorleyParsons Ltd.		38,454		949
				189,259
Austria - 0.3%
Andritz A.G.		13,442		864
Erste Group Bank A.G.*		43,410		1,388
Immofinanz A.G.*		178,172		751
OMV A.G.		27,380		994
Raiffeisen Bank International A.G.		9,636		403
Telekom Austria A.G.		41,495		314
Verbund A.G.		13,306		330
Vienna Insurance Group A.G. Wiener Versicherung Gruppe		7,167		384
Voestalpine A.G.		20,117		740
				6,168
Belgium - 1.1%
Ageas		44,741		1,335
Anheuser-Busch InBev N.V.		154,251		13,480
Belgacom S.A.		28,314		835
Colruyt S.A.		13,847		688

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
Belgium - 1.1% continued
Delhaize Group S.A.		18,883	$	756
Groupe Bruxelles Lambert S.A.		14,979		1,181
KBC Groep N.V.		46,094		1,604
Solvay S.A., Class A		11,638		1,675
Telenet Group Holding N.V.		10,698		497
UCB S.A.		22,182		1,276
Umicore S.A.		22,959		1,266
				24,593
Denmark - 1.1%
A.P. Moller - Maersk A/S, Class A		107		762
A.P. Moller - Maersk A/S, Class B		251		1,921
Carlsberg A/S, Class B		20,758		2,041
Coloplast A/S		21,785		1,068
Danske Bank A/S*		127,187		2,162
DSV A/S		34,998		913
Novo Nordisk A/S, Class B		78,261		12,782
Novozymes A/S, Class B		48,999		1,387
TDC A/S		89,880		637
Tryg A/S		4,687		354
William Demant Holding A/S*		4,993		428
				24,455
Finland - 0.8%
Elisa OYJ		26,642		595
Fortum OYJ		87,489		1,645
Kesko OYJ, Class B		11,968		392
Kone OYJ, Class B		30,353		2,248
Metso OYJ		23,935		1,043
Neste Oil OYJ		23,903		312
Nokia OYJ		724,806		2,850
Nokian Renkaat OYJ		20,665		832
Orion OYJ, Class B		17,352		510
Pohjola Bank PLC, Class A		25,674		383
Sampo OYJ, Class A		81,958		2,650
Stora Enso OYJ, Class R		106,222		751
UPM-Kymmene OYJ		97,931		1,164
Wartsila OYJ Abp		31,399		1,389
				16,764
France - 9.1%
Accor S.A.		30,119		1,080
Aeroports de Paris		5,539		428
Air Liquide S.A.		60,107		7,532
Alstom S.A.		41,173		1,687
ArcelorMittal		181,936		3,150
Arkema S.A.		11,543		1,214
AtoS		10,294		733
AXA S.A.		340,448		6,158
BNP Paribas S.A.		193,039		10,881
Bouygues S.A.		35,516		1,047
Bureau Veritas S.A.		10,979		1,221
Cap Gemini S.A.		29,729		1,296
Carrefour S.A.		116,415		3,015
Casino Guichard Perrachon S.A.		11,443		1,101
Christian Dior S.A.		10,198		1,763
Cie de St-Gobain		77,004		3,295
Cie Generale de Geophysique - Veritas*		30,061		906
Cie Generale des Etablissements Michelin		34,453		3,266
Cie Generale d’Optique Essilor International S.A.		39,132		3,968
CNP Assurances		30,412		463
Credit Agricole S.A.*		186,825		1,517
Danone S.A.		111,355		7,357
Dassault Systemes S.A.		12,161		1,361
Edenred		31,698		986
Electricite de France S.A.		44,389		832
Eurazeo		5,430		263
European Aeronautic Defence and Space Co. N.V.		80,729		3,164
Eutelsat Communications S.A.		24,486		813
Fonciere Des Regions		4,632		388
France Telecom S.A.		358,844		4,019
GDF Suez		246,031		5,069
Gecina S.A.		4,018		448
Groupe Eurotunnel S.A. (Registered)		107,611		831
ICADE		4,431		398
Iliad S.A.		4,295		739
Imerys S.A.		6,415		416
JCDecaux S.A.		12,615		304
Klepierre		20,469		825
Lafarge S.A.		36,216		2,321
Lagardere S.C.A.		21,825		741
Legrand S.A.		46,718		1,972
L’Oreal S.A.		46,182		6,451
LVMH Moet Hennessy Louis Vuitton S.A.		48,970		9,125
Natixis		172,567		597
Pernod-Ricard S.A.		40,462		4,758
Peugeot S.A.*		43,647		324
PPR		14,685		2,737
Publicis Groupe S.A.		33,633		2,015

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
France - 9.1% continued
Remy Cointreau S.A.		4,270	$	467
Renault S.A.		37,694		2,080
Rexel S.A.		20,275		414
Safran S.A.		45,177		1,971
Sanofi		229,321		21,748
Schneider Electric S.A.		101,291		7,555
SCOR S.E.		29,759		802
SES S.A.		60,653		1,755
Societe BIC S.A.		5,958		711
Societe Generale S.A.*		135,455		5,095
Sodexo		18,801		1,575
Suez Environnement Co.		51,987		627
Technip S.A.		19,737		2,272
Thales S.A.		16,558		572
Total S.A.		409,057		21,172
Unibail-Rodamco S.E.		17,491		4,282
Vallourec S.A.		19,247		1,004
Veolia Environnement S.A.		62,900		767
Vinci S.A.		89,494		4,259
Vivendi S.A.		250,838		5,649
Wendel S.A.		6,086		630
Zodiac Aerospace		6,380		713
				201,095
Germany - 7.8%
Adidas A.G.		40,686		3,626
Allianz S.E. (Registered)		87,370		12,104
Axel Springer A.G.		7,259		310
BASF S.E.		176,513		16,591
Bayer A.G. (Registered)		158,918		15,091
Bayerische Motoren Werke A.G.		63,784		6,151
Beiersdorf A.G.		18,858		1,541
Brenntag A.G.		10,047		1,320
Celesio A.G.		15,775		272
Commerzbank A.G.*		730,975		1,391
Continental A.G.		21,233		2,457
Daimler A.G. (Registered)		174,718		9,547
Deutsche Bank A.G. (Registered)		179,169		7,806
Deutsche Boerse A.G.		37,851		2,310
Deutsche Lufthansa A.G. (Registered)		48,105		904
Deutsche Post A.G. (Registered)		175,258		3,843
Deutsche Telekom A.G. (Registered)		540,959		6,146
E.ON S.E.		346,781		6,458
Fraport A.G. Frankfurt Airport Services Worldwide		6,639		387
Fresenius Medical Care A.G. & Co. KGaA		40,971		2,831
Fresenius S.E. & Co. KGaA		24,074		2,771
GEA Group A.G.		35,078		1,133
Hannover Rueckversicherung A.G. (Registered)		11,211		873
HeidelbergCement A.G.		28,111		1,703
HeidelbergCement A.G. (VVPR)†*		83		—
Henkel A.G. & Co. KGaA		24,429		1,673
Hochtief A.G.*		5,763		335
Hugo Boss A.G.		4,842		513
Infineon Technologies A.G.		207,142		1,681
K+S A.G. (Registered)		34,024		1,573
Kabel Deutschland Holding A.G.		16,578		1,240
Lanxess A.G.		16,485		1,442
Linde A.G.		35,619		6,212
MAN S.E.		7,902		845
Merck KGaA		12,257		1,617
Metro A.G.		24,286		673
Muenchener Rueckversicherungs A.G. (Registered)		34,201		6,140
RWE A.G.		94,458		3,899
Salzgitter A.G.		7,184		374
SAP A.G.		177,283		14,201
Siemens A.G. (Registered)		158,039		17,177
Suedzucker A.G.		15,991		654
ThyssenKrupp A.G.		73,114		1,718
United Internet A.G. (Registered)		16,767		362
Volkswagen A.G.		5,622		1,208
				171,103
Greece - 0.1%
Coca Cola Hellenic Bottling Co. S.A.*		37,788		894
OPAP S.A.		48,697		349
				1,243
Hong Kong - 3.1%
AIA Group Ltd.		2,086,111		8,314
ASM Pacific Technology Ltd.		37,300		458
Bank of East Asia Ltd.		259,500		1,004
BOC Hong Kong Holdings Ltd.		713,608		2,239
Cathay Pacific Airways Ltd.		208,506		387
Cheung Kong Holdings Ltd.		268,729		4,160
Cheung Kong Infrastructure Holdings Ltd.		104,353		641
CLP Holdings Ltd.		351,022		2,948
First Pacific Co. Ltd.		386,035		426
Galaxy Entertainment Group Ltd.*		393,148		1,568

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
Hong Kong - 3.1% continued
Hang Lung Properties Ltd.		445,501	$	1,786
Hang Seng Bank Ltd.		148,879		2,300
Henderson Land Development Co. Ltd.		180,778		1,288
HKT Trust/HKT Ltd.		459,000		450
Hong Kong & China Gas Co. Ltd.		1,004,006		2,767
Hong Kong Exchanges and Clearing Ltd.		212,603		3,663
Hopewell Holdings Ltd.		96,500		417
Hutchison Whampoa Ltd.		411,698		4,367
Hysan Development Co. Ltd.		133,501		646
Kerry Properties Ltd.		137,203		717
Li & Fung Ltd.		1,113,218		2,000
Link REIT (The)		441,495		2,208
MGM China Holdings Ltd.		181,316		333
MTR Corp. Ltd.		271,981		1,077
New World Development Co. Ltd.		688,241		1,080
Noble Group Ltd.		715,944		690
NWS Holdings Ltd.		273,902		467
Orient Overseas International Ltd.		42,700		281
PCCW Ltd.		773,374		341
Power Assets Holdings Ltd.		267,433		2,292
Sands China Ltd.		472,341		2,116
Shangri-La Asia Ltd.		292,574		589
Sino Land Co. Ltd.		563,694		1,021
SJM Holdings Ltd.		362,572		853
Sun Hung Kai Properties Ltd.		302,756		4,570
Swire Pacific Ltd., Class A		135,051		1,678
Swire Properties Ltd.		225,000		757
Wharf Holdings Ltd.		296,766		2,348
Wheelock & Co. Ltd.		175,021		891
Wing Hang Bank Ltd.		31,824		335
Wynn Macau Ltd.*		289,346		797
Yangzijiang Shipbuilding Holdings Ltd.		340,566		270
Yue Yuen Industrial Holdings Ltd.		139,710		472
				68,012
Ireland - 0.7%
CRH PLC		1,040		22
CRH PLC (Dublin Exchange)		139,230		2,889
Elan Corp. PLC*		93,829		969
Experian PLC		194,852		3,148
Irish Bank Resolution Corp. Ltd.†*		99,788		—
Kerry Group PLC, Class A		27,916		1,482
Prothena Corp. PLC*		2,288		17
Ryanair Holdings PLC		3,150		19
Ryanair Holdings PLC ADR		5,370		184
Shire PLC		109,196		3,354
WPP PLC*		243,492		3,540
				15,624
Israel - 0.5%
Bank Hapoalim B.M.*		196,099		844
Bank Leumi Le-Israel B.M.*		237,545		812
Bezeq The Israeli Telecommunication Corp. Ltd.		373,642		432
Delek Group Ltd.		845		199
Israel (The) Corp. Ltd.		427		280
Israel Chemicals Ltd.		82,466		994
Mellanox Technologies Ltd.*		6,643		400
Mizrahi Tefahot Bank Ltd.*		22,821		236
NICE Systems Ltd.*		11,272		378
Teva Pharmaceutical Industries Ltd.		182,142		6,817
				11,392
Italy - 2.2%
Assicurazioni Generali S.p.A.		225,720		4,117
Atlantia S.p.A.		61,607		1,117
Banca Monte dei Paschi di Siena S.p.A.*		1,204,779		372
Banco Popolare SC*		328,607		550
Enel Green Power S.p.A.		318,998		597
Enel S.p.A.		1,272,811		5,295
Eni S.p.A.		489,655		12,080
Exor S.p.A.		12,084		304
Fiat Industrial S.p.A.		168,196		1,844
Fiat S.p.A.*		162,446		821
Finmeccanica S.p.A.*		73,497		426
Intesa Sanpaolo S.p.A.		1,953,329		3,379
Intesa Sanpaolo S.p.A. (RSP)		171,823		244
Luxottica Group S.p.A.		31,613		1,314
Mediobanca S.p.A.		97,340		603
Pirelli & C. S.p.A.		44,994		516
Prysmian S.p.A.		37,225		753
Saipem S.p.A.		51,193		1,986
Snam S.p.A.		324,804		1,510
Telecom Italia S.p.A.		1,856,450		1,678
Telecom Italia S.p.A. (RSP)		1,115,214		882
Tenaris S.A.		92,087		1,920
Terna Rete Elettrica Nazionale S.p.A.		245,824		985
UniCredit S.p.A.*		784,493		3,874
Unione di Banche Italiane S.C.P.A.		167,252		780
				47,947

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
Japan - 19.2%
ABC-Mart, Inc.		4,600	$	200
Acom Co. Ltd.*		7,100		204
Advantest Corp.		28,700		453
Aeon Co. Ltd.		120,100		1,373
Aeon Credit Service Co. Ltd.		15,000		303
Aeon Mall Co. Ltd.		13,300		325
Air Water, Inc.		25,569		325
Aisin Seiki Co. Ltd.		38,400		1,198
Ajinomoto Co., Inc.		127,000		1,680
Alfresa Holdings Corp.		7,200		281
All Nippon Airways Co. Ltd.		210,000		440
Amada Co. Ltd.		71,000		462
Aozora Bank Ltd.		119,000		366
Asahi Glass Co. Ltd.		201,000		1,460
Asahi Group Holdings Ltd.		76,000		1,611
Asahi Kasei Corp.		254,000		1,500
Asics Corp.		26,000		396
Astellas Pharma, Inc.		85,400		3,836
Bank of Kyoto (The) Ltd.		62,971		530
Bank of Yokohama (The) Ltd.		228,000		1,058
Benesse Holdings, Inc.		12,400		514
Bridgestone Corp.		126,600		3,282
Brother Industries Ltd.		42,500		459
Calbee, Inc.		2,900		204
Canon, Inc.		218,300		8,562
Casio Computer Co. Ltd.		42,200		370
Central Japan Railway Co.		27,600		2,239
Chiba Bank (The) Ltd.		144,000		842
Chiyoda Corp.		27,746		397
Chubu Electric Power Co., Inc.		127,900		1,707
Chugai Pharmaceutical Co. Ltd.		45,755		877
Chugoku Bank (The) Ltd.		31,000		433
Chugoku Electric Power (The) Co., Inc.		54,700		858
Citizen Holdings Co. Ltd.		49,900		264
Coca-Cola West Co. Ltd.		12,500		192
Cosmo Oil Co. Ltd.		105,000		233
Credit Saison Co. Ltd.		29,800		745
Dai Nippon Printing Co. Ltd.		104,000		815
Daicel Corp.		53,000		351
Daido Steel Co. Ltd.		54,000		271
Daihatsu Motor Co. Ltd.		40,000		791
Dai-ichi Life Insurance (The) Co. Ltd.		1,666		2,344
Daiichi Sankyo Co. Ltd.		133,200		2,043
Daikin Industries Ltd.		46,700		1,605
Dainippon Sumitomo Pharma Co. Ltd.		29,400		353
Daito Trust Construction Co. Ltd.		13,800		1,299
Daiwa House Industry Co. Ltd.		98,000		1,686
Daiwa Securities Group, Inc.		316,000		1,760
Dena Co. Ltd.		20,000		658
Denki Kagaku Kogyo K.K.		86,000		294
Denso Corp.		94,000		3,271
Dentsu, Inc.		33,918		911
Don Quijote Co. Ltd.		9,900		363
East Japan Railway Co.		65,512		4,236
Eisai Co. Ltd.		49,600		2,071
Electric Power Development Co. Ltd.		22,400		531
FamilyMart Co. Ltd.		11,000		453
FANUC Corp.		36,900		6,862
Fast Retailing Co. Ltd.		10,300		2,616
Fuji Electric Co. Ltd.		108,000		266
Fuji Heavy Industries Ltd.		117,000		1,473
FUJIFILM Holdings Corp.		88,300		1,778
Fujitsu Ltd.		370,000		1,554
Fukuoka Financial Group, Inc.		142,000		568
Furukawa Electric Co. Ltd.*		111,000		249
Gree, Inc.		17,581		273
GS Yuasa Corp.		68,000		274
Gunma Bank (The) Ltd.		73,000		355
Hachijuni Bank (The) Ltd.		74,395		373
Hakuhodo DY Holdings, Inc.		4,280		277
Hamamatsu Photonics K.K.		13,085		472
Hankyu Hanshin Holdings, Inc.		217,000		1,120
Hino Motors Ltd.		49,000		439
Hirose Electric Co. Ltd.		5,500		658
Hiroshima Bank (The) Ltd.		92,000		385
Hisamitsu Pharmaceutical Co., Inc.		12,700		630
Hitachi Chemical Co. Ltd.		19,000		283
Hitachi Construction Machinery Co. Ltd.		19,500		409
Hitachi High-Technologies Corp.		12,500		259
Hitachi Ltd.		895,000		5,267
Hitachi Metals Ltd.		29,000		245
Hokkaido Electric Power Co., Inc.		32,500		395
Hokuriku Electric Power Co.		30,300		358
Honda Motor Co. Ltd.		313,800		11,566
Hoya Corp.		87,000		1,713
Hulic Co. Ltd.		45,000		306
Ibiden Co. Ltd.		22,900		366
Idemitsu Kosan Co. Ltd.		4,300		375

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
Japan - 19.2% continued
IHI Corp.		241,000	$	619
Inpex Corp.		427		2,279
Isetan Mitsukoshi Holdings Ltd.		68,060		662
Isuzu Motors Ltd.		236,000		1,406
ITOCHU Corp.		291,700		3,079
Itochu Techno-Solutions Corp.		4,700		194
Iyo Bank (The) Ltd.		44,000		347
J Front Retailing Co. Ltd.		93,000		513
Japan Airlines Co. Ltd.*		11,100		475
Japan Petroleum Exploration Co.		5,200		182
Japan Prime Realty Investment Corp.		165		476
Japan Real Estate Investment Corp.		109		1,069
Japan Retail Fund Investment Corp.		387		710
Japan Steel Works (The) Ltd.		59,000		382
Japan Tobacco, Inc.		173,100		4,880
JFE Holdings, Inc.		92,800		1,750
JGC Corp.		40,000		1,246
Joyo Bank (The) Ltd.		122,000		577
JSR Corp.		32,700		618
JTEKT Corp.		39,500		377
Jupiter Telecommunications Co. Ltd.		397		493
JX Holdings, Inc.		442,497		2,492
Kajima Corp.		154,000		509
Kamigumi Co. Ltd.		47,000		373
Kaneka Corp.		57,000		287
Kansai Electric Power (The) Co., Inc.		149,000		1,566
Kansai Paint Co. Ltd.		38,000		409
Kao Corp.		102,400		2,668
Kawasaki Heavy Industries Ltd.		262,000		712
KDDI Corp.		52,000		3,673
Keikyu Corp.		87,000		770
Keio Corp.		108,000		805
Keisei Electric Railway Co. Ltd.		59,000		498
Keyence Corp.		8,939		2,467
Kikkoman Corp.		33,000		471
Kinden Corp.		29,000		188
Kintetsu Corp.		305,000		1,248
Kirin Holdings Co. Ltd.		171,000		2,009
Kobe Steel Ltd.*		464,000		592
Koito Manufacturing Co. Ltd.		16,814		245
Komatsu Ltd.		180,300		4,614
Konami Corp.		18,000		405
Konica Minolta Holdings, Inc.		89,000		641
Kubota Corp.		214,000		2,458
Kuraray Co. Ltd.		63,500		831
Kurita Water Industries Ltd.		21,400		470
Kyocera Corp.		29,900		2,711
Kyowa Hakko Kirin Co. Ltd.		50,000		494
Kyushu Electric Power Co., Inc.		79,900		912
Lawson, Inc.		11,200		761
LIXIL Group Corp.		49,000		1,091
M3, Inc.		117		186
Mabuchi Motor Co. Ltd.		4,300		183
Makita Corp.		23,000		1,070
Marubeni Corp.		325,000		2,329
Marui Group Co. Ltd.		43,200		346
Maruichi Steel Tube Ltd.		8,400		192
Mazda Motor Corp.*		511,000		1,043
McDonald’s Holdings Co. Japan Ltd.		12,600		332
Medipal Holdings Corp.		27,400		302
MEIJI Holdings Co. Ltd.		11,563		501
Miraca Holdings, Inc.		10,041		404
Mitsubishi Chemical Holdings Corp.		252,000		1,257
Mitsubishi Corp.		271,200		5,213
Mitsubishi Electric Corp.		378,000		3,217
Mitsubishi Estate Co. Ltd.		241,000		5,761
Mitsubishi Gas Chemical Co., Inc.		77,000		472
Mitsubishi Heavy Industries Ltd.		586,000		2,834
Mitsubishi Logistics Corp.		22,000		316
Mitsubishi Materials Corp.		210,000		716
Mitsubishi Motors Corp.*		722,000		746
Mitsubishi Tanabe Pharma Corp.		42,100		549
Mitsubishi UFJ Financial Group, Inc.		2,447,495		13,170
Mitsubishi UFJ Lease & Finance Co. Ltd.		11,200		482
Mitsui & Co. Ltd.		335,800		5,024
Mitsui Chemicals, Inc.		157,000		410
Mitsui Fudosan Co. Ltd.		162,000		3,958
Mitsui O.S.K. Lines Ltd.		216,000		644
Mizuho Financial Group, Inc.		4,389,589		8,031
MS&AD Insurance Group Holdings		100,243		2,003
Murata Manufacturing Co. Ltd.		39,397		2,324
Nabtesco Corp.		18,499		409
Namco Bandai Holdings, Inc.		32,100		416
NEC Corp.*		492,000		1,036
Nexon Co. Ltd.*		20,300		205
NGK Insulators Ltd.		53,000		623
NGK Spark Plug Co. Ltd.		32,000		425
NHK Spring Co. Ltd.		27,700		228

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
Japan - 19.2% continued
Nidec Corp.		20,400	$	1,193
Nikon Corp.		63,800		1,884
Nintendo Co. Ltd.		20,600		2,198
Nippon Building Fund, Inc.		117		1,206
Nippon Electric Glass Co. Ltd.		71,500		406
Nippon Express Co. Ltd.		158,000		653
Nippon Meat Packers, Inc.		33,000		454
Nippon Paper Group, Inc.		19,358		269
Nippon Steel & Sumitomo Metal Corp.		1,470,615		3,617
Nippon Telegraph & Telephone Corp.		83,978		3,528
Nippon Yusen K.K.		314,000		739
Nishi-Nippon City Bank (The) Ltd.		129,000		318
Nissan Motor Co. Ltd.		479,400		4,550
Nisshin Seifun Group, Inc.		34,000		425
Nissin Foods Holdings Co. Ltd.		11,000		417
Nitori Holdings Co. Ltd.		6,100		447
Nitto Denko Corp.		31,100		1,530
NKSJ Holdings, Inc.		74,545		1,588
NOK Corp.		19,700		305
Nomura Holdings, Inc.		709,200		4,187
Nomura Real Estate Holdings, Inc.		17,300		330
Nomura Real Estate Office Fund, Inc.		52		298
Nomura Research Institute Ltd.		18,200		377
NSK Ltd.		96,000		684
NTT Data Corp.		233		728
NTT DOCOMO, Inc.		2,933		4,212
NTT Urban Development Corp.		203		196
Obayashi Corp.		125,000		704
Odakyu Electric Railway Co. Ltd.		126,000		1,311
Oji Holdings Corp.		156,000		539
Olympus Corp.*		40,500		786
Omron Corp.		38,400		921
Ono Pharmaceutical Co. Ltd.		16,800		857
Oracle Corp. Japan		6,900		288
Oriental Land Co. Ltd.		9,400		1,136
ORIX Corp.		20,480		2,311
Osaka Gas Co. Ltd.		379,000		1,377
Otsuka Corp.		2,700		204
Otsuka Holdings Co. Ltd.		71,015		1,994
Panasonic Corp.		429,000		2,607
Park24 Co. Ltd.		18,100		285
Rakuten, Inc.		134,100		1,046
Resona Holdings, Inc.		372,610		1,689
Ricoh Co. Ltd.		118,000		1,254
Rinnai Corp.		5,900		401
Rohm Co. Ltd.		17,500		569
Sankyo Co. Ltd.		9,000		356
Sanrio Co. Ltd.		7,797		248
Santen Pharmaceutical Co. Ltd.		13,100		502
SBI Holdings, Inc.		40,660		363
Secom Co. Ltd.		41,400		2,087
Sega Sammy Holdings, Inc.		38,400		649
Sekisui Chemical Co. Ltd.		82,000		710
Sekisui House Ltd.		110,000		1,204
Seven & I Holdings Co. Ltd.		145,000		4,081
Seven Bank Ltd.		103,900		274
Sharp Corp.		186,000		652
Shikoku Electric Power Co., Inc.		30,600		488
Shimadzu Corp.		40,000		270
Shimamura Co. Ltd.		4,300		416
Shimano, Inc.		15,300		976
Shimizu Corp.		112,000		421
Shin-Etsu Chemical Co. Ltd.		79,200		4,837
Shinsei Bank Ltd.		300,000		601
Shionogi & Co. Ltd.		60,800		1,013
Shiseido Co. Ltd.		73,500		1,034
Shizuoka Bank (The) Ltd.		102,000		996
Showa Denko K.K.		260,000		398
Showa Shell Sekiyu K.K.		33,400		190
SMC Corp.		10,600		1,923
Softbank Corp.		182,300		6,671
Sojitz Corp.		240,400		356
Sony Corp.		190,500		2,132
Sony Financial Holdings, Inc.		31,900		574
Square Enix Holdings Co. Ltd.		12,100		153
Stanley Electric Co. Ltd.		27,200		387
Sumco Corp.*		20,800		202
Sumitomo Chemical Co. Ltd.		278,000		877
Sumitomo Corp.		218,800		2,805
Sumitomo Electric Industries Ltd.		148,800		1,722
Sumitomo Heavy Industries Ltd.		103,000		492
Sumitomo Metal Mining Co. Ltd.		99,000		1,397
Sumitomo Mitsui Financial Group, Inc.		258,042		9,374
Sumitomo Mitsui Trust Holdings, Inc.		608,190		2,137
Sumitomo Realty & Development Co. Ltd.		70,000		2,326
Sumitomo Rubber Industries Ltd.		31,800		384
Suruga Bank Ltd.		35,000		430
Suzuken Co. Ltd.		13,397		378

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
Japan - 19.2% continued
Suzuki Motor Corp.		72,100	$	1,885
Sysmex Corp.		13,549		621
T&D Holdings, Inc.		109,700		1,337
Taiheiyo Cement Corp.		211,000		581
Taisei Corp.		182,000		602
Taisho Pharmaceutical Holdings Co. Ltd.		7,200		492
Taiyo Nippon Sanso Corp.		50,000		286
Takashimaya Co. Ltd.		50,000		356
Takeda Pharmaceutical Co. Ltd.		151,000		6,748
TDK Corp.		23,200		844
Teijin Ltd.		170,000		419
Terumo Corp.		28,800		1,144
THK Co. Ltd.		22,200		399
Tobu Railway Co. Ltd.		205,000		1,085
Toho Co. Ltd.		22,400		395
Toho Gas Co. Ltd.		78,000		419
Tohoku Electric Power Co., Inc.*		83,300		775
Tokio Marine Holdings, Inc.		133,400		3,719
Tokyo Electric Power Co., Inc.*		268,100		643
Tokyo Electron Ltd.		32,500		1,495
Tokyo Gas Co. Ltd.		481,000		2,199
Tokyu Corp.		229,000		1,286
Tokyu Land Corp.		77,000		563
TonenGeneral Sekiyu K.K.		53,000		457
Toppan Printing Co. Ltd.		104,000		641
Toray Industries, Inc.		279,000		1,701
Toshiba Corp.		784,000		3,100
TOTO Ltd.		50,000		376
Toyo Seikan Kaisha Ltd.		29,200		393
Toyo Suisan Kaisha Ltd.		16,000		426
Toyoda Gosei Co. Ltd.		12,700		258
Toyota Boshoku Corp.		11,600		135
Toyota Industries Corp.		30,800		983
Toyota Motor Corp.		530,300		24,753
Toyota Tsusho Corp.		40,400		997
Trend Micro, Inc.		20,500		619
Tsumura & Co.		10,800		325
Ube Industries Ltd.		196,000		471
Unicharm Corp.		23,100		1,203
Ushio, Inc.		19,100		209
USS Co. Ltd.		3,930		407
West Japan Railway Co.		34,400		1,355
Yahoo Japan Corp.		2,969		961
Yakult Honsha Co. Ltd.		17,600		771
Yamada Denki Co. Ltd.		16,299		629
Yamaguchi Financial Group, Inc.		41,000		362
Yamaha Corp.		29,300		310
Yamaha Motor Co. Ltd.		50,900		564
Yamato Holdings Co. Ltd.		70,300		1,069
Yamato Kogyo Co. Ltd.		7,600		222
Yamazaki Baking Co. Ltd.		17,905		199
Yaskawa Electric Corp.		40,000		386
Yokogawa Electric Corp.		39,300		428
				423,017
Netherlands - 4.5%
Aegon N.V.		338,024		2,154
Akzo Nobel N.V.		46,147		3,045
ASML Holding N.V.*		60,738		3,932
Corio N.V.		12,212		556
DE Master Blenders 1753 N.V.*		117,796		1,370
Delta Lloyd N.V.		28,324		471
Fugro N.V. - CVA		12,956		759
Gemalto N.V.		14,731		1,334
Heineken Holding N.V.		18,778		1,029
Heineken N.V.		44,275		2,953
ING Groep N.V. - CVA*		738,295		7,060
Koninklijke Ahold N.V.		194,105		2,578
Koninklijke Boskalis Westminster N.V.		13,319		607
Koninklijke DSM N.V.		30,239		1,821
Koninklijke KPN N.V.		203,584		1,007
Koninklijke Philips Electronics N.V.		200,038		5,367
Koninklijke Vopak N.V.		14,034		989
QIAGEN N.V.*		48,233		875
Randstad Holding N.V.		22,203		820
Reed Elsevier N.V.		134,085		1,987
Royal Dutch Shell PLC, Class A		713,272		25,203
Royal Dutch Shell PLC, Class B		504,599		17,859
TNT Express N.V.		60,560		685
Unilever N.V. - CVA		311,458		11,752
Wolters Kluwer N.V.		56,037		1,159
Ziggo N.V.		25,309		818
				98,190
New Zealand - 0.1%
Auckland International Airport Ltd.		173,679		384
Contact Energy Ltd.*		71,358		308
Fletcher Building Ltd.		125,962		881
SKYCITY Entertainment Group Ltd.		107,941		339

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
New Zealand - 0.1% continued
Telecom Corp. of New Zealand Ltd.		354,630	$	671
				2,583
Norway - 0.8%
Aker Solutions ASA		30,824		634
DNB ASA		189,900		2,421
Gjensidige Forsikring ASA		37,590		541
Norsk Hydro ASA		191,766		977
Orkla ASA		155,476		1,361
Seadrill Ltd.		68,293		2,517
Statoil ASA		213,851		5,366
Telenor ASA		134,372		2,730
Yara International ASA		36,720		1,823
				18,370
Portugal - 0.2%
Banco Espirito Santo S.A. (Registered)*		373,287		451
Energias de Portugal S.A.		358,200		1,077
Galp Energia SGPS S.A.		54,338		844
Jeronimo Martins SGPS S.A.		41,582		802
Portugal Telecom SGPS S.A. (Registered)		113,023		565
				3,739
Singapore - 1.7%
Ascendas Real Estate Investment Trust		389,879		764
CapitaCommercial Trust		414,000		572
CapitaLand Ltd.		481,750		1,478
CapitaMall Trust		437,800		767
CapitaMalls Asia Ltd.		239,658		385
City Developments Ltd.		97,000		1,035
ComfortDelGro Corp. Ltd.		373,000		547
DBS Group Holdings Ltd.		352,626		4,317
Fraser and Neave Ltd.		183,911		1,464
Genting Singapore PLC		1,141,380		1,306
Global Logistic Properties Ltd.		390,939		899
Golden Agri-Resources Ltd.		1,435,892		773
Hutchison Port Holdings Trust, Class U		974,000		773
Jardine Cycle & Carriage Ltd.		19,446		774
Keppel Corp. Ltd.		279,550		2,540
Keppel Land Ltd.		143,473		479
Olam International Ltd.		306,479		393
Oversea-Chinese Banking Corp. Ltd.		498,944		4,014
SembCorp Industries Ltd.		201,644		879
SembCorp Marine Ltd.		150,800		574
Singapore Airlines Ltd.		101,734		900
Singapore Exchange Ltd.		162,000		939
Singapore Press Holdings Ltd.		296,295		980
Singapore Technologies Engineering Ltd.		282,000		890
Singapore Telecommunications Ltd.		1,531,925		4,166
StarHub Ltd.		104,000		325
United Overseas Bank Ltd.		245,875		4,027
UOL Group Ltd.		87,739		433
Wilmar International Ltd.		394,000		1,089
				38,482
Spain - 2.9%
Abertis Infraestructuras S.A.		68,193		1,137
Acciona S.A.		5,488		416
ACS Actividades de Construccion y Servicios S.A.		27,820		712
Amadeus IT Holding S.A., Class A		58,555		1,469
Banco Bilbao Vizcaya Argentaria S.A.		1,049,864		9,638
Banco de Sabadell S.A.*		554,138		1,468
Banco Popular Espanol S.A.		1,088,972		839
Banco Santander S.A.		1,986,772		16,020
Bankia S.A.*		190,965		98
CaixaBank		152,259		532
Distribuidora Internacional de Alimentacion S.A.		111,790		718
Enagas S.A.		38,230		818
Ferrovial S.A.		76,143		1,123
Gas Natural SDG S.A.		67,993		1,243
Grifols S.A.*		25,360		892
Grifols S.A., Class B*		2,665		67
Iberdrola S.A.		770,073		4,294
Inditex S.A.		41,983		5,882
Mapfre S.A.		148,201		457
Red Electrica Corp. S.A.		19,952		986
Repsol S.A.		157,470		3,234
Telefonica S.A.		789,508		10,721
Zardoya Otis S.A.		28,281		408
				63,172
Sweden - 3.0%
Alfa Laval AB		67,149		1,407
Assa Abloy AB, Class B		65,443		2,464
Atlas Copco AB, Class A		115,812		3,206
Atlas Copco AB, Class B		92,302		2,265
Boliden AB		50,696		964
Electrolux AB, Class B		48,234		1,267
Elekta AB, Class B		68,344		1,078
Getinge AB, Class B		38,265		1,296

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
Sweden - 3.0% continued
Hennes & Mauritz AB, Class B		182,689	$	6,348
Hexagon AB, Class B		44,017		1,106
Husqvarna AB, Class B		74,959		454
Industrivarden AB, Class C		21,617		360
Investment AB Kinnevik, Class B		37,734		788
Investor AB, Class B		88,545		2,322
Lundin Petroleum AB*		42,954		991
Millicom International Cellular S.A. SDR		11,713		1,018
Nordea Bank AB		505,971		4,846
Ratos AB, Class B		34,739		335
Sandvik AB		190,377		3,060
Scania AB, Class B		59,632		1,240
Securitas AB, Class B		59,599		524
Skandinaviska Enskilda Banken AB, Class A		275,008		2,345
Skanska AB, Class B		76,126		1,252
SKF AB, Class B		76,404		1,933
Svenska Cellulosa AB, Class B		109,487		2,397
Svenska Handelsbanken AB, Class A		96,108		3,444
Swedbank AB, Class A		155,182		3,054
Swedish Match AB		39,573		1,333
Tele2 AB, Class B		59,553		1,080
Telefonaktiebolaget LM Ericsson, Class B		588,166		5,916
TeliaSonera AB		415,008		2,827
Volvo AB, Class B		269,179		3,712
				66,632
Switzerland - 9.0%
ABB Ltd. (Registered)		423,085		8,785
Actelion Ltd. (Registered)		20,541		987
Adecco S.A. (Registered)		26,560		1,408
Aryzta A.G.*		13,437		689
Aryzta A.G. (Dublin Exchange)*		4,637		245
Baloise Holding A.G. (Registered)		8,627		753
Banque Cantonale Vaudoise (Registered)		552		293
Barry Callebaut A.G. (Registered)*		350		338
Cie Financiere Richemont S.A., Class A (Bearer)		100,600		8,044
Credit Suisse Group A.G. (Registered)		242,017		6,073
EMS-Chemie Holding A.G. (Registered)		1,481		349
Geberit A.G. (Registered)*		7,033		1,557
Givaudan S.A. (Registered)*		1,655		1,755
Glencore International PLC		733,903		4,277
Holcim Ltd. (Registered)		44,121		3,250
Julius Baer Group Ltd.		42,402		1,526
Kuehne + Nagel International A.G. (Registered)		10,795		1,314
Lindt & Spruengli A.G. (Registered)		19		717
Lindt & Spruengli A.G. (Participation Certificate)		164		535
Lonza Group A.G. (Registered)		9,521		515
Nestle S.A. (Registered)		619,228		40,358
Novartis A.G. (Registered)		441,403		27,946
Pargesa Holding S.A. (Bearer)		5,243		363
Partners Group Holding A.G.		3,579		827
Roche Holding A.G. (Genusschein)		134,836		27,469
Schindler Holding A.G. (Registered)		3,855		546
Schindler Holding A.G. (Participation Certificate)		9,886		1,428
SGS S.A. (Registered)		1,075		2,388
Sika A.G. (Bearer)		403		934
Sonova Holding A.G. (Registered)		9,216		1,021
STMicroelectronics N.V.		119,851		874
Sulzer A.G. (Registered)		4,405		698
Swatch Group (The) A.G. (Bearer)		5,978		3,076
Swatch Group (The) A.G. (Registered)		8,135		710
Swiss Life Holding A.G. (Registered)		5,600		747
Swiss Prime Site A.G. (Registered)*		10,306		862
Swiss Re A.G.		67,603		4,934
Swisscom A.G. (Registered)		4,604		1,986
Syngenta A.G. (Registered)		17,889		7,216
Transocean Ltd.		69,783		3,118
UBS A.G. (Registered)		700,821		11,021
Wolseley PLC		52,270		2,484
Xstrata PLC		404,875		7,201
Zurich Insurance Group A.G.		28,242		7,552
				199,169
United Kingdom - 18.8%
3i Group PLC		178,792		625
Aberdeen Asset Management PLC		161,226		956
Admiral Group PLC		38,118		730
Aggreko PLC		50,223		1,440
AMEC PLC		61,270		1,002
Anglo American PLC		268,225		8,562
Antofagasta PLC		77,636		1,725
ARM Holdings PLC		266,876		3,413
Associated British Foods PLC		70,583		1,797
AstraZeneca PLC		238,936		11,296
Aviva PLC		568,540		3,432
Babcock International Group PLC		66,713		1,035

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 95.6% continued
United Kingdom - 18.8% continued
BAE Systems PLC		628,369	$	3,452
Balfour Beatty PLC		123,186		550
Barclays PLC		2,237,355		9,662
BG Group PLC		653,813		10,963
BHP Billiton PLC		407,168		14,308
BP PLC		3,659,616		25,357
British American Tobacco PLC		373,227		18,911
British Land Co. PLC		170,130		1,582
British Sky Broadcasting Group PLC		208,652		2,606
BT Group PLC		1,515,051		5,711
Bunzl PLC		66,267		1,082
Burberry Group PLC		83,045		1,700
Capita PLC		129,817		1,607
Capital Shopping Centres Group PLC		102,759		578
Carnival PLC		36,604		1,415
Centrica PLC		996,998		5,416
Cobham PLC		203,151		739
Compass Group PLC		359,814		4,255
Croda International PLC		25,660		994
Diageo PLC		480,707		13,995
Eurasian Natural Resources Corp. PLC		47,313		228
Evraz PLC		63,849		282
Fresnillo PLC		33,133		1,028
G4S PLC		261,493		1,092
GKN PLC		322,932		1,205
GlaxoSmithKline PLC		955,836		20,753
Hammerson PLC		131,579		1,060
Hargreaves Lansdown PLC		44,488		494
HSBC Holdings PLC		3,516,735		37,196
ICAP PLC		103,587		530
IMI PLC		60,256		1,072
Imperial Tobacco Group PLC		190,745		7,366
Inmarsat PLC		84,809		819
InterContinental Hotels Group PLC		53,798		1,513
International Consolidated Airlines Group S.A.*		172,077		509
Intertek Group PLC		31,793		1,604
Invensys PLC		151,268		822
Investec PLC		98,431		670
ITV PLC		689,093		1,182
J. Sainsbury PLC		246,655		1,388
Johnson Matthey PLC		38,193		1,467
Kazakhmys PLC		39,560		520
Kingfisher PLC		460,894		2,129
Land Securities Group PLC		153,610		2,077
Legal & General Group PLC		1,132,404		2,734
Lloyds Banking Group PLC*		8,121,388		6,507
London Stock Exchange Group PLC		34,771		607
Marks & Spencer Group PLC		301,960		1,883
Meggitt PLC		145,082		904
Melrose Industries PLC		223,601		833
National Grid PLC		697,260		7,987
Next PLC		31,473		1,943
Old Mutual PLC		949,596		2,821
Pearson PLC		158,087		3,090
Petrofac Ltd.		51,454		1,394
Prudential PLC		490,686		6,847
Randgold Resources Ltd.		17,066		1,682
Reckitt Benckiser Group PLC		124,754		7,815
Reed Elsevier PLC		237,382		2,492
Resolution Ltd.		263,353		1,051
Rexam PLC		162,529		1,142
Rio Tinto PLC		258,401		15,058
Rolls-Royce Holdings PLC*		360,702		5,197
Royal Bank of Scotland Group PLC*		395,135		2,128
RSA Insurance Group PLC		708,821		1,431
SABMiller PLC		183,621		8,643
Sage Group (The) PLC		245,668		1,177
Schroders PLC		20,912		588
Segro PLC		133,334		547
Serco Group PLC		101,981		878
Severn Trent PLC		44,524		1,141
Smith & Nephew PLC		178,100		1,971
Smiths Group PLC		78,501		1,545
SSE PLC		181,344		4,191
Standard Chartered PLC		460,146		11,664
Standard Life PLC		460,516		2,460
Subsea 7 S.A.		53,951		1,290
Tate & Lyle PLC		94,210		1,168
Tesco PLC		1,546,123		8,493
TUI Travel PLC		88,073		410
Tullow Oil PLC		175,087		3,566
Unilever PLC		246,044		9,339
United Utilities Group PLC		136,624		1,499
Vedanta Resources PLC		21,327		417
Vodafone Group PLC		9,457,507		23,784
Weir Group (The) PLC		40,417		1,255
Whitbread PLC		33,189		1,323
WM Morrison Supermarkets PLC		446,802		1,911
				412,708
Total Common Stocks(1) (Cost $1,832,785)(1)				2,103,717

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
PREFERRED STOCKS - 0.6%
Germany - 0.6%
Bayerische Motoren Werke A.G.		9,858	$	637
Henkel A.G. & Co. KGaA		34,225		2,811
Porsche Automobil Holding S.E.		29,007		2,364
ProSiebenSat.1 Media A.G.		17,328		487
RWE A.G. (Non Voting)		7,016		264
Volkswagen A.G.		27,844		6,335
				12,898
Total Preferred Stocks(1) (Cost $7,315)(1)				12,898
RIGHTS - 0.0%
Austria - 0.0%
Immoeast A.G.*		62,543		—
Immoeast A.G.*		57,496		—
				—
France - 0.0%
Eurazeo*		36		—
Singapore - 0.0%
Olam International Ltd.*		95,927		—
Spain - 0.0%
CaixaBank*		149,670		12
Grifols S.A.*		28,020		33
Repsol S.A.*		157,470		96
				141
Total Rights(1) (Cost $112)(1)				141
INVESTMENT COMPANIES - 2.4%
iShares MSCI EAFE Index Fund		341,510		19,405
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(2) (3)		34,145,868		34,146
Total Investment Companies (Cost $53,398)				53,551
Total Investments - 98.6% (Cost $1,893,610)				2,170,307
Other Assets less Liabilities - 1.4%				31,013
NET ASSETS - 100.0%			$	2,201,320

(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 $2,864,000 with net purchases of approximately $31,282,000 during the nine months ended December 31, 2012.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 December 31, 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)		586	$	20,227		Long		3/13	$	(144	)
FTSE 100 Index (British Pound)		168		15,960		Long		3/13		(100	)
Hang Seng Index (Hong Kong Dollar)		14		2,048		Long		1/13		10
MSCI EAFE Mini Index (United States Dollar)		95		7,696		Long		3/13		(15	)
Nikkei 225 (Japanese Yen)		37		2,215		Long		3/13		188
SPI 200 (Australian Dollar)		55		6,591		Long		3/13		38

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
Topix Index (Japanese Yen)		26	$	2,585		Long		3/13	$	228
Yen Denom Nikkei (Japanese Yen)		118		7,181		Long		3/13		315
Total									$	520

At December 31, 2012, the International Equity Index Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
Euro		28.5	%
British Pound		22.4
Japanese Yen		19.8
Australian Dollar		8.9
Swiss Franc		8.6
All other currencies less than 5%		11.8
Total		100.0	%

At December 31, 2012, the industry sectors for the International Equity Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		10.6	%
Consumer Staples		11.4
Energy		7.7
Financials		25.4
Health Care		9.7
Industrials		12.5
Information Technology		4.3
Materials		9.8
Telecommunication Services		4.8
Utilities		3.8
Total		100.0	%

At December 31, 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)
United States Dollar		500	Danish Krone		2,817		1/2/13	$	(2	)
United States Dollar		700	Australian Dollar		673		1/3/13		(1	)
United States Dollar		1,500	British Pound		924		1/3/13		1
United States Dollar		2,020	Euro		1,532		1/3/13		2
United States Dollar		600	Swiss Franc		549		1/4/13		1
United States Dollar		1,600	Japanese Yen		138,789		1/7/13		2
Australian Dollar		191	United States Dollar		200		3/20/13		3
British Pound		62	United States Dollar		100		3/20/13		(1	)
British Pound		744	United States Dollar		1,200		3/20/13		(8	)
Euro		381	United States Dollar		500		3/20/13		(3	)
Swiss Franc		182	United States Dollar		200		3/20/13		1
Swiss Franc		458	United States Dollar		495		3/20/13		(6	)
United States Dollar		1,500	Australian Dollar		1,454		3/20/13		1
United States Dollar		131	Australian Dollar		125		3/20/13		(2	)
United States Dollar		200	Australian Dollar		191		3/20/13		(3	)
United States Dollar		200	Australian Dollar		191		3/20/13		(3	)
United States Dollar		4,400	British Pound		2,732		3/20/13		37
United States Dollar		764	British Pound		473		3/20/13		4
United States Dollar		500	British Pound		310		3/20/13		3
United States Dollar		400	British Pound		248		3/20/13		3
United States Dollar		800	Euro		611		3/20/13		6
United States Dollar		300	Euro		226		3/20/13		(1	)
United States Dollar		5,500	Euro		4,150		3/20/13		(18	)
United States Dollar		4,553	Euro		3,475		3/20/13		37
United States Dollar		300	Euro		230		3/20/13		4
United States Dollar		690	Hong Kong Dollar		5,347		3/20/13		—	*
United States Dollar		500	Hong Kong Dollar		3,875		3/20/13		—	*
United States Dollar		200	Hong Kong Dollar		1,550		3/20/13		—	*
United States Dollar		275	Singapore Dollar		336		3/20/13		—	*

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

INTERNATIONAL EQUITY 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		280	Singapore Dollar		341		3/20/13	$	—	*
United States Dollar		110	Swedish Krona		734		3/20/13		3
United States Dollar		500	Swedish Krona		3,256		3/20/13		—	*
United States Dollar		100	Swedish Krona		669		3/20/13		3
United States Dollar		1,600	Swiss Franc		1,459		3/20/13		(3	)
United States Dollar		150	Swiss Franc		139		3/20/13		2
United States Dollar		200	Swiss Franc		184		3/20/13		2
United States Dollar		956	Swiss Franc United States		871		3/20/13		(3	)
Japanese Yen		41,723	Dollar United States		500		3/21/13		18
Japanese Yen		16,696	Dollar		200		3/21/13		7
United States Dollar		200	Japanese Yen		16,561		3/21/13		(9	)
United States Dollar		3,800	Japanese Yen		326,914		3/21/13		(24	)
United States Dollar		1,840	Japanese Yen		152,849		3/21/13		(74	)
United States Dollar		450	Japanese Yen		37,958		3/21/13		(12	)
Total								$	(33	)

* Amount rounds to less than one thousand.

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 indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 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 Index Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	—		$	216,570		$	—	$	216,570
Consumer Staples		—			241,591			—		241,591
Energy		—			163,146			—		163,146
Financials		—			523,679			—		523,679
Health Care		17			206,603			—		206,620
Industrials		184			266,705			—		266,889
Information Technology		—			91,842			—		91,842
Materials		—			208,808			—		208,808
Telecommunication Services		—			103,330			—		103,330
Utilities		—			81,242			—		81,242
Preferred Stocks
Consumer Discretionary		—			9,823			—		9,823
Consumer Staples		—			2,811			—		2,811
Utilities		—			264			—		264
Rights
Energy		—			96			—		96
Financials		12			—	*		—		12
Health Care		—			33			—		33
Investment Companies		53,551			—			—		53,551
Total Investments	$	53,764		$	2,116,543		$	—	$	2,170,307
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	779		$	—		$	—	$	779
Foreign Currency Exchange Contracts		—			140			—		140
Liabilities
Futures Contracts		(259	)		—			—		(259	)
Foreign Currency Exchange Contracts		—			(173	)		—		(173	)
Total Other Financial Instruments	$	520		$	(33	)	$	—	$	487

* Amount rounds to less than one thousand.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 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:

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,990,143
Gross tax appreciation of investments	$	388,609
Gross tax depreciation of investments		(208,445	)
Net tax appreciation of investments	$	180,164

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6%
Advertising - 0.2%
Lamar Advertising Co., Class A*		35,944	$	1,393
Aerospace/Defense - 1.2%
Alliant Techsystems, Inc.		21,169		1,312
B/E Aerospace, Inc.*		67,418		3,331
Esterline Technologies Corp.*		20,049		1,275
Exelis, Inc.		121,944		1,374
Triumph Group, Inc.		32,411		2,116
				9,408
Agriculture - 0.1%
Universal Corp.		15,207		759
Airlines - 0.4%
Alaska Air Group, Inc.*		45,651		1,967
JetBlue Airways Corp.*		148,434		848
				2,815
Apparel - 1.2%
Carter’s, Inc.*		32,939		1,833
Deckers Outdoor Corp.*		22,896		922
Hanesbrands, Inc.*		64,037		2,294
Under Armour, Inc., Class A*		50,629		2,457
Warnaco Group (The), Inc.*		26,568		1,901
				9,407
Auto Manufacturers - 0.2%
Oshkosh Corp.*		59,403		1,761
Banks - 3.5%
Associated Banc-Corp.		111,537		1,463
BancorpSouth, Inc.		53,876		783
Bank of Hawaii Corp.		29,491		1,299
Cathay General Bancorp		47,645		929
City National Corp.		31,057		1,538
Commerce Bancshares, Inc.		50,709		1,778
Cullen/Frost Bankers, Inc.		39,774		2,159
East West Bancorp, Inc.		90,867		1,953
FirstMerit Corp.		71,035		1,008
Fulton Financial Corp.		130,784		1,257
Hancock Holding Co.		54,932		1,744
International Bancshares Corp.		34,871		629
Prosperity Bancshares, Inc.		28,614		1,202
Signature Bank*		30,027		2,142
SVB Financial Group*		29,174		1,633
Synovus Financial Corp.		515,191		1,262
TCF Financial Corp.		106,648		1,296
Trustmark Corp.		42,082		945
Valley National Bancorp		129,089		1,200
Webster Financial Corp.		51,966		1,068
Westamerica Bancorporation		17,563		748
				28,036
Beverages - 0.4%
Green Mountain Coffee Roasters, Inc.*		80,105		3,313
Biotechnology - 2.3%
Bio-Rad Laboratories, Inc., Class A*		13,090		1,375
Charles River Laboratories International, Inc.*		31,248		1,171
Regeneron Pharmaceuticals, Inc.*		48,978		8,379
United Therapeutics Corp.*		30,689		1,639
Vertex Pharmaceuticals, Inc.*		140,956		5,912
				18,476
Building Materials - 1.2%
Fortune Brands Home & Security, Inc.*		105,776		3,091
Lennox International, Inc.		29,738		1,562
Louisiana-Pacific Corp.*		89,852		1,736
Martin Marietta Materials, Inc.		29,763		2,806
				9,195
Chemicals - 2.9%
Albemarle Corp.		58,068		3,607
Ashland, Inc.		47,665		3,833
Cabot Corp.		38,806		1,544
Cytec Industries, Inc.		29,540		2,033
Intrepid Potash, Inc.		34,232		729
Minerals Technologies, Inc.		22,850		912
NewMarket Corp.		7,024		1,842
Olin Corp.		52,688		1,138
RPM International, Inc.		86,390		2,536
Sensient Technologies Corp.		32,385		1,152
Valspar Corp.		54,776		3,418
				22,744
Coal - 0.3%
Alpha Natural Resources, Inc.*		144,500		1,407
Arch Coal, Inc.		137,699		1,008
				2,415
Commercial Services - 5.5%
Aaron’s, Inc.		45,736		1,293
Alliance Data Systems Corp.*		32,420		4,693
Brink’s (The) Co.		31,355		894
Convergys Corp.		70,728		1,161

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Commercial Services - 5.5% continued
CoreLogic, Inc.*		63,278	$	1,703
Corporate Executive Board (The) Co.		21,746		1,032
Corrections Corp. of America		64,863		2,301
Deluxe Corp.		33,397		1,077
DeVry, Inc.		37,449		889
FTI Consulting, Inc.*		27,371		903
Gartner, Inc.*		61,165		2,815
Global Payments, Inc.		51,195		2,319
HMS Holdings Corp.*		56,241		1,458
Lender Processing Services, Inc.		55,077		1,356
Manpower, Inc.		50,886		2,160
Matthews International Corp., Class A		18,094		581
Monster Worldwide, Inc.*		76,025		427
R.R. Donnelley & Sons Co.		116,976		1,053
Rent-A-Center, Inc.		38,477		1,322
Rollins, Inc.		42,632		940
SEI Investments Co.		87,920		2,052
Service Corp. International		137,628		1,901
Sotheby’s		44,175		1,485
Strayer Education, Inc.		7,620		428
Towers Watson & Co., Class A		37,090		2,085
TravelCenters of America LLC - (Fractional Shares)*		80,000		—
United Rentals, Inc.*		60,164		2,739
Valassis Communications, Inc.		25,266		651
WEX, Inc.*		25,057		1,888
				43,606
Computers - 2.4%
Cadence Design Systems, Inc.*		182,002		2,459
Diebold, Inc.		41,253		1,263
DST Systems, Inc.		19,821		1,201
Jack Henry & Associates, Inc.		55,840		2,192
Lexmark International, Inc., Class A		41,938		973
Mentor Graphics Corp.*		62,055		1,056
MICROS Systems, Inc.*		52,027		2,208
NCR Corp.*		104,138		2,653
Riverbed Technology, Inc.*		104,292		2,057
Synopsys, Inc.*		96,761		3,081
				19,143
Distribution/Wholesale - 1.4%
Arrow Electronics, Inc.*		68,837		2,621
Ingram Micro, Inc., Class A*		97,698		1,653
LKQ Corp.*		193,487		4,082
Owens & Minor, Inc.		41,621		1,187
Watsco, Inc.		19,304		1,446
				10,989
Diversified Financial Services - 2.3%
Affiliated Managers Group, Inc.*		33,709		4,387
CBOE Holdings, Inc.		56,649		1,669
Eaton Vance Corp.		74,693		2,379
Federated Investors, Inc., Class B		60,839		1,231
Greenhill & Co., Inc.		16,914		879
Janus Capital Group, Inc.		121,472		1,035
Jefferies Group, Inc.		83,563		1,552
Raymond James Financial, Inc.		72,573		2,796
Waddell & Reed Financial, Inc., Class A		55,685		1,939
				17,867
Electric - 3.3%
Alliant Energy Corp.		72,696		3,192
Black Hills Corp.		28,615		1,040
Cleco Corp.		39,409		1,577
Great Plains Energy, Inc.		99,193		2,015
Hawaiian Electric Industries, Inc.		62,969		1,583
IDACORP, Inc.		32,707		1,418
MDU Resources Group, Inc.		122,515		2,602
National Fuel Gas Co.		54,075		2,741
NV Energy, Inc.		153,077		2,777
OGE Energy Corp.		64,061		3,607
PNM Resources, Inc.		52,377		1,074
Westar Energy, Inc.		81,911		2,344
				25,970
Electrical Components & Equipment - 1.9%
Acuity Brands, Inc.		27,843		1,886
AMETEK, Inc.		158,048		5,938
Energizer Holdings, Inc.		40,261		3,220
General Cable Corp.*		32,263		981
Hubbell, Inc., Class B		34,602		2,928
				14,953
Electronics - 2.5%
Avnet, Inc.*		89,144		2,729
Gentex Corp.		92,443		1,740
Itron, Inc.*		25,377		1,131
Mettler-Toledo International, Inc.*		19,935		3,853
National Instruments Corp.		61,239		1,581
Tech Data Corp.*		24,434		1,112
Trimble Navigation Ltd.*		82,040		4,904
Vishay Intertechnology, Inc.*		85,717		911

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Electronics - 2.5% continued
Woodward, Inc.		39,534	$	1,507
				19,468
Engineering & Construction - 1.2%
AECOM Technology Corp.*		70,304		1,673
Granite Construction, Inc.		23,527		791
KBR, Inc.		96,325		2,882
Shaw Group (The), Inc.*		43,377		2,022
URS Corp.		49,700		1,951
				9,319
Entertainment - 0.6%
Bally Technologies, Inc.*		26,553		1,187
Cinemark Holdings, Inc.		66,383		1,725
DreamWorks Animation SKG, Inc., Class A*		46,414		769
International Speedway Corp., Class A		16,419		454
Scientific Games Corp., Class A*		35,338		306
				4,441
Environmental Control - 0.7%
Clean Harbors, Inc.*		34,260		1,884
Mine Safety Appliances Co.		20,179		862
Waste Connections, Inc.		79,925		2,701
				5,447
Food - 2.2%
Flowers Foods, Inc.		74,928		1,744
Harris Teeter Supermarkets, Inc.		32,214		1,242
Hillshire Brands Co.		79,506		2,237
Ingredion, Inc.		49,808		3,209
Lancaster Colony Corp.		12,515		866
Post Holdings, Inc.*		21,524		737
Ralcorp Holdings, Inc.*		35,713		3,202
Smithfield Foods, Inc.*		81,206		1,752
SUPERVALU, Inc.		139,235		344
Tootsie Roll Industries, Inc.		13,362		346
United Natural Foods, Inc.*		32,052		1,718
				17,397
Forest Products & Paper - 0.2%
Domtar Corp.		22,941		1,916
Gas - 1.2%
Atmos Energy Corp.		58,404		2,051
Questar Corp.		113,967		2,252
UGI Corp.		73,815		2,415
Vectren Corp.		53,262		1,566
WGL Holdings, Inc.		33,682		1,320
				9,604
Hand/Machine Tools - 0.8%
Kennametal, Inc.		51,933		2,077
Lincoln Electric Holdings, Inc.		54,216		2,639
Regal-Beloit Corp.		29,117		2,052
				6,768
Healthcare - Products - 3.3%
Cooper (The) Cos., Inc.		31,056		2,872
Henry Schein, Inc.*		57,138		4,597
Hill-Rom Holdings, Inc.		39,914		1,138
Hologic, Inc.*		173,510		3,475
IDEXX Laboratories, Inc.*		35,478		3,292
Masimo Corp.		33,837		711
ResMed, Inc.		93,099		3,870
STERIS Corp.		37,917		1,317
Techne Corp.		22,447		1,534
Teleflex, Inc.		26,518		1,891
Thoratec Corp.*		38,100		1,430
				26,127
Healthcare - Services - 1.8%
Community Health Systems, Inc.		59,728		1,836
Covance, Inc.*		35,793		2,068
Health Management Associates, Inc., Class A*		167,569		1,562
Health Net, Inc.*		52,833		1,284
LifePoint Hospitals, Inc.*		31,954		1,206
MEDNAX, Inc.*		32,295		2,568
Universal Health Services, Inc., Class B		57,697		2,789
WellCare Health Plans, Inc.*		28,055		1,366
				14,679
Home Builders - 1.1%
KB Home		49,948		789
MDC Holdings, Inc.		25,010		919
NVR, Inc.*		2,987		2,748
Thor Industries, Inc.		28,440		1,065
Toll Brothers, Inc.*		97,117		3,140
				8,661
Home Furnishings - 0.2%
Tempur-Pedic International, Inc.*		39,024		1,229
Household Products/Wares - 1.4%
Church & Dwight Co., Inc.		91,008		4,875

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Household Products/Wares - 1.4% continued
Jarden Corp.*		47,724	$	2,468
Scotts Miracle-Gro (The) Co., Class A		24,971		1,100
Tupperware Brands Corp.		36,177		2,319
				10,762
Insurance - 4.5%
Alleghany Corp.*		11,025		3,698
American Financial Group, Inc.		49,519		1,957
Arthur J. Gallagher & Co.		81,331		2,818
Aspen Insurance Holdings Ltd.		46,465		1,491
Brown & Brown, Inc.		77,171		1,965
Everest Re Group Ltd.		33,615		3,696
Fidelity National Financial, Inc., Class A		137,900		3,248
First American Financial Corp.		68,929		1,661
Hanover Insurance Group (The), Inc.		28,973		1,122
HCC Insurance Holdings, Inc.		66,129		2,461
Kemper Corp.		35,131		1,036
Mercury General Corp.		23,538		934
Old Republic International Corp.		156,658		1,668
Protective Life Corp.		51,275		1,465
Reinsurance Group of America, Inc.		47,847		2,561
StanCorp Financial Group, Inc.		28,582		1,048
W.R. Berkley Corp.		71,336		2,692
				35,521
Internet - 2.1%
AOL, Inc.*		54,337		1,609
Equinix, Inc.*		31,650		6,526
Rackspace Hosting, Inc.*		71,232		5,291
TIBCO Software, Inc.*		101,106		2,225
ValueClick, Inc.*		45,962		892
				16,543
Investment Companies - 0.1%
Apollo Investment Corp.		131,481		1,099
Iron/Steel - 1.0%
Carpenter Technology Corp.		28,717		1,483
Commercial Metals Co.		75,275		1,118
Reliance Steel & Aluminum Co.		49,243		3,058
Steel Dynamics, Inc.		142,075		1,951
				7,610
Leisure Time - 0.7%
Life Time Fitness, Inc.*		25,898		1,274
Polaris Industries, Inc.		41,749		3,513
WMS Industries, Inc.*		35,172		616
				5,403
Machinery - Construction & Mining - 0.2%
Terex Corp.*		71,629		2,014
Machinery - Diversified - 2.0%
AGCO Corp.*		63,093		3,099
Gardner Denver, Inc.		32,061		2,196
Graco, Inc.		39,227		2,020
IDEX Corp.		53,524		2,490
Nordson Corp.		36,591		2,310
Wabtec Corp.		31,318		2,742
Zebra Technologies Corp., Class A*		33,054		1,298
				16,155
Media - 0.9%
AMC Networks, Inc., Class A*		37,174		1,840
FactSet Research Systems, Inc.		26,575		2,340
John Wiley & Sons, Inc., Class A		30,590		1,191
Meredith Corp.		23,430		807
New York Times (The) Co., Class A*		79,361		677
Scholastic Corp.		16,995		503
				7,358
Metal Fabrication/Hardware - 0.7%
Timken Co.		51,702		2,473
Valmont Industries, Inc.		15,178		2,073
Worthington Industries, Inc.		34,260		890
				5,436
Mining - 0.6%
Compass Minerals International, Inc.		21,468		1,604
Royal Gold, Inc.		42,299		3,439
				5,043
Miscellaneous Manufacturing - 2.2%
Aptargroup, Inc.		43,165		2,060
Carlisle Cos., Inc.		40,982		2,408
CLARCOR, Inc.		32,656		1,560
Crane Co.		30,905		1,430
Donaldson Co., Inc.		87,795		2,883
Harsco Corp.		52,150		1,226
ITT Corp.		59,944		1,406
SPX Corp.		32,910		2,309
Trinity Industries, Inc.		51,284		1,837
				17,119

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Office Furnishings - 0.2%
Herman Miller, Inc.		37,881	$	811
HNI Corp.		29,800		896
				1,707
Oil & Gas - 3.3%
Atwood Oceanics, Inc.*		36,892		1,689
Bill Barrett Corp.*		31,686		564
Cimarex Energy Co.		56,286		3,249
Energen Corp.		46,754		2,108
Forest Oil Corp.*		77,810		521
HollyFrontier Corp.		131,510		6,122
Northern Oil and Gas, Inc.*		39,143		658
Patterson-UTI Energy, Inc.		97,108		1,809
Plains Exploration & Production Co.*		83,646		3,926
Quicksilver Resources, Inc.*		78,225		224
Rosetta Resources, Inc.*		34,296		1,556
SM Energy Co.		42,951		2,242
Unit Corp.*		28,031		1,263
				25,931
Oil & Gas Services - 1.9%
CARBO Ceramics, Inc.		12,747		999
Dresser-Rand Group, Inc.*		49,092		2,756
Dril-Quip, Inc.*		23,629		1,726
Helix Energy Solutions Group, Inc.*		63,450		1,310
Oceaneering International, Inc.		70,026		3,767
Oil States International, Inc.*		35,899		2,568
Superior Energy Services, Inc.*		101,903		2,111
				15,237
Packaging & Containers - 1.2%
Greif, Inc., Class A		19,746		879
Packaging Corp. of America		63,661		2,449
Rock-Tenn Co., Class A		46,267		3,234
Silgan Holdings, Inc.		32,117		1,336
Sonoco Products Co.		65,193		1,938
				9,836
Pharmaceuticals - 0.7%
Endo Health Solutions, Inc.*		74,172		1,948
Omnicare, Inc.		71,686		2,588
VCA Antech, Inc.*		56,941		1,199
				5,735
Real Estate - 0.4%
Alexander & Baldwin, Inc.*		28,060		824
Jones Lang LaSalle, Inc.		28,568		2,398
				3,222
Real Estate Investment Trusts - 9.2%
Alexandria Real Estate Equities, Inc.		41,423		2,871
American Campus Communities, Inc.		68,106		3,142
BioMed Realty Trust, Inc.		100,020		1,933
BRE Properties, Inc.		49,805		2,532
Camden Property Trust		54,790		3,737
Corporate Office Properties Trust		52,611		1,314
Duke Realty Corp.		178,398		2,474
Equity One, Inc.		39,988		840
Essex Property Trust, Inc.		23,835		3,495
Federal Realty Investment Trust		42,126		4,382
Highwoods Properties, Inc.		51,108		1,710
Home Properties, Inc.		33,389		2,047
Hospitality Properties Trust		80,092		1,876
Liberty Property Trust		76,953		2,753
Macerich (The) Co.		88,885		5,182
Mack-Cali Realty Corp.		54,343		1,419
National Retail Properties, Inc.		72,055		2,248
Omega Healthcare Investors, Inc.		72,893		1,739
Potlatch Corp.		26,227		1,028
Rayonier, Inc.		80,295		4,162
Rayonier, Inc. - (Fractional Shares)*		50,000		—
Realty Income Corp.		86,551		3,480
Regency Centers Corp.		58,920		2,776
Senior Housing Properties Trust		114,466		2,706
SL Green Realty Corp.		58,788		4,506
Taubman Centers, Inc.		40,033		3,151
UDR, Inc.		162,358		3,861
Weingarten Realty Investors		72,322		1,936
				73,300
Retail - 6.4%
Advance Auto Parts, Inc.		47,625		3,446
Aeropostale, Inc.*		50,870		662
American Eagle Outfitters, Inc.		117,243		2,405
ANN, Inc.*		31,454		1,064
Ascena Retail Group, Inc.*		81,943		1,515
Barnes & Noble, Inc.*		24,158		364
Bob Evans Farms, Inc.		18,352		738
Brinker International, Inc.		47,227		1,464
Cabela’s, Inc.*		30,025		1,254
Cheesecake Factory (The), Inc.		32,137		1,051

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Retail - 6.4% continued
Chico’s FAS, Inc.		107,674	$	1,988
Copart, Inc.*		69,098		2,038
Dick’s Sporting Goods, Inc.		63,895		2,907
Foot Locker, Inc.		97,968		3,147
Guess?, Inc.		39,762		976
HSN, Inc.		23,504		1,295
MSC Industrial Direct Co., Inc., Class A		30,121		2,270
Office Depot, Inc.*		187,638		615
Panera Bread Co., Class A*		18,422		2,926
PVH Corp.		46,000		5,106
Regis Corp.		37,635		637
Saks, Inc.*		65,113		684
Signet Jewelers Ltd.		52,466		2,802
Tractor Supply Co.		45,712		4,039
Wendy’s (The) Co.		182,850		859
Williams-Sonoma, Inc.		56,161		2,458
World Fuel Services Corp.		46,730		1,924
				50,634
Savings & Loans - 0.9%
Astoria Financial Corp.		53,979		505
First Niagara Financial Group, Inc.		228,573		1,813
New York Community Bancorp, Inc.		284,586		3,728
Washington Federal, Inc.		68,413		1,154
				7,200
Semiconductors - 2.0%
Atmel Corp.*		286,773		1,878
Cree, Inc.*		75,950		2,581
Cypress Semiconductor Corp.*		84,949		921
Fairchild Semiconductor International, Inc.*		81,765		1,178
Integrated Device Technology, Inc.*		94,504		690
International Rectifier Corp.*		45,185		801
Intersil Corp., Class A		83,503		692
MEMC Electronic Materials, Inc.*		152,082		488
QLogic Corp.*		59,327		577
Rovi Corp.*		67,199		1,037
Semtech Corp.*		43,341		1,255
Silicon Laboratories, Inc.*		24,858		1,039
Skyworks Solutions, Inc.*		126,309		2,564
				15,701
Shipbuilding - 0.2%
Huntington Ingalls Industries, Inc.		32,222		1,397
Software - 3.4%
ACI Worldwide, Inc.*		25,382		1,109
Acxiom Corp.*		48,893		854
Advent Software, Inc.*		20,242		433
Allscripts Healthcare Solutions, Inc.*		111,333		1,049
ANSYS, Inc.*		60,307		4,061
Broadridge Financial Solutions, Inc.		79,620		1,822
Compuware Corp.*		138,511		1,506
Concur Technologies, Inc.*		29,284		1,977
Fair Isaac Corp.		22,695		954
Informatica Corp.*		70,402		2,134
Mantech International Corp., Class A		15,540		403
MSCI, Inc.*		79,030		2,449
Parametric Technology Corp.*		78,057		1,757
SolarWinds, Inc.*		39,942		2,095
Solera Holdings, Inc.		44,726		2,391
VeriFone Systems, Inc.*		69,966		2,077
				27,071
Telecommunications - 1.5%
ADTRAN, Inc.		40,198		786
Ciena Corp.*		65,304		1,025
InterDigital, Inc.		26,626		1,094
NeuStar, Inc., Class A*		43,032		1,804
Plantronics, Inc.		28,004		1,033
Polycom, Inc.*		113,611		1,188
RF Micro Devices, Inc.*		179,627		805
Telephone & Data Systems, Inc.		65,417		1,448
Tellabs, Inc.		226,492		517
tw telecom, Inc.*		98,913		2,519
				12,219
Textiles - 0.4%
Mohawk Industries, Inc.*		37,869		3,426
Transportation - 2.5%
Con-way, Inc.		36,260		1,009
Genesee & Wyoming, Inc., Class A*		28,426		2,163
J.B. Hunt Transport Services, Inc.		59,226		3,536
Kansas City Southern		71,626		5,979
Kirby Corp.*		36,238		2,243
Landstar System, Inc.		30,305		1,590
Matson, Inc.		27,808		687
Tidewater, Inc.		32,408		1,448
UTi Worldwide, Inc.		67,813		909
Werner Enterprises, Inc.		29,133		631
				20,195

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.6% continued
Trucking & Leasing - 0.2%
GATX Corp.		30,658	$	1,328
Water - 0.3%
Aqua America, Inc.		90,641		2,304
Total Common Stocks (Cost $652,318)				773,812
INVESTMENT COMPANIES -1.9%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1) (2)		15,148,854		15,149
Total Investment Companies (Cost $15,149)				15,149
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.3%
U.S. Treasury Bill,
0.14%, 4/25/13(3)	$	2,115	$	2,114
Total Short-Term Investments (Cost $2,114)				2,114
Total Investments - 99.8% (Cost $669,581)				791,075
Other Assets less Liabilities - 0.2%				1,463
NET ASSETS - 100.0%			$	792,538

(1) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 $6,827,000 during the nine months ended December 31, 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 December 31, 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		181	$	18,428		Long		3/13	$	198

At December 31, 2012, the industry sectors for the Mid Cap Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		13.2	%
Consumer Staples		3.8
Energy		6.1
Financials		22.1
Health Care		9.4
Industrials		17.3
Information Technology		15.5
Materials		7.2
Telecommunication Services		0.5
Utilities		4.9
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 Mid Cap Index Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

	LEVEL 1			LEVEL 2		LEVEL 3		TOTAL
INVESTMENTS	(000S)			(000S)		(000S)		(000S)
Common Stocks	$	773,812	(1)	$	—	$	—	$	773,812
Investment Companies		15,149			—		—		15,149
Short-Term Investments		—			2,114		—		2,114
Total Investments	$	788,961		$	2,114	$	—	$	791,075
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	198		$	—	$	—	$	198

(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 December 31, 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    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

MID CAP INDEX FUND continued

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	687,339
Gross tax appreciation of investments	$	140,683
Gross tax depreciation of investments		(36,947	)
Net tax appreciation of investments	$	103,736

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5%
Advertising - 0.1%
Harte-Hanks, Inc.		22,645	$	134
Marchex, Inc., Class B		11,759		48
MDC Partners, Inc., Class A		13,135		148
Millennial Media, Inc.*		5,496		69
				399
Aerospace/Defense - 1.3%
AAR Corp.		21,062		394
Aerovironment, Inc.*		8,801		191
API Technologies Corp.*		15,734		46
Astronics Corp.*		6,222		142
CPI Aerostructures, Inc.*		3,613		36
Cubic Corp.		8,388		402
Curtiss-Wright Corp.		24,452		803
Esterline Technologies Corp.*		15,998		1,018
GenCorp, Inc.*		31,465		288
HEICO Corp.		27,460		1,229
Kaman Corp.		13,840		509
Kratos Defense & Security Solutions, Inc.*		21,132		106
LMI Aerospace, Inc.*		4,779		93
M/A-COM Technology Solutions Holdings, Inc.*		2,951		44
Moog, Inc., Class A*		23,612		969
National Presto Industries, Inc.		2,490		172
Orbital Sciences Corp.*		31,231		430
SIFCO Industries, Inc.		1,212		19
Teledyne Technologies, Inc.*		19,175		1,248
				8,139
Agriculture - 0.3%
Alico, Inc.		1,729		63
Alliance One International, Inc.*		48,511		177
Andersons (The), Inc.		9,850		423
Cadiz, Inc.*		6,194		49
Griffin Land & Nurseries, Inc.		1,373		37
Limoneira Co.		4,452		86
Tejon Ranch Co.*		6,743		189
Universal Corp.		12,132		606
Vector Group Ltd.		29,114		433
				2,063
Airlines - 0.8%
Alaska Air Group, Inc.*		36,963		1,593
Allegiant Travel Co.		7,786		572
Hawaiian Holdings, Inc.*		26,819		176
JetBlue Airways Corp.*		121,431		693
Republic Airways Holdings, Inc.*		25,713		146
SkyWest, Inc.		26,711		333
Spirit Airlines, Inc.*		22,031		390
US Airways Group, Inc.*		84,642		1,143
				5,046
Apparel - 1.3%
Cherokee, Inc.		4,567		63
Columbia Sportswear Co.		6,534		349
Crocs, Inc.*		46,909		675
Delta Apparel, Inc.*		3,479		49
G-III Apparel Group Ltd.*		8,891		304
Iconix Brand Group, Inc.*		36,858		823
Jones Group (The), Inc.		43,074		476
K-Swiss, Inc., Class A*		13,781		46
Maidenform Brands, Inc.*		12,705		248
Oxford Industries, Inc.		7,442		345
Perry Ellis International, Inc.		5,964		119
Quiksilver, Inc.*		67,168		285
R.G. Barry Corp.		4,251		60
Skechers U.S.A., Inc., Class A*		20,106		372
Steven Madden Ltd.*		20,498		866
True Religion Apparel, Inc.		13,266		337
Unifi, Inc.*		7,517		98
Warnaco Group (The), Inc.*		21,375		1,530
Weyco Group, Inc.		3,491		82
Wolverine World Wide, Inc.		25,383		1,040
				8,167
Auto Manufacturers - 0.1%
Wabash National Corp.*		36,373		326
Auto Parts & Equipment - 1.0%
Accuride Corp.*		22,876		73
American Axle & Manufacturing Holdings, Inc.*		35,408		397
Commercial Vehicle Group, Inc.*		12,960		106
Cooper Tire & Rubber Co.		32,553		826
Dana Holding Corp.		77,063		1,203
Dorman Products, Inc.		12,901		456
Douglas Dynamics, Inc.		11,294		162
Exide Technologies*		39,317		134
Federal-Mogul Corp.*		8,938		72
Fuel Systems Solutions, Inc.*		7,419		109
Gentherm, Inc.*		15,244		203
Meritor, Inc.*		49,068		232

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Auto Parts & Equipment - 1.0% continued
Miller Industries, Inc.		5,637	$	86
Modine Manufacturing Co.*		23,988		195
Spartan Motors, Inc.		17,640		87
Standard Motor Products, Inc.		10,091		224
Superior Industries International, Inc.		11,745		240
Tenneco, Inc.*		31,673		1,112
Titan International, Inc.		24,950		542
Tower International, Inc.*		2,742		22
				6,481
Banks - 6.4%
1st Source Corp.		7,570		167
1st United Bancorp, Inc.		16,043		100
Access National Corp.		3,581		47
Alliance Financial Corp.		2,493		108
American National Bankshares, Inc.		3,756		76
Ameris Bancorp*		12,577		157
Ames National Corp.		3,804		83
Arrow Financial Corp.		5,359		134
Bancfirst Corp.		3,360		142
Banco Latinoamericano de Comercio Exterior S.A., Class E		14,538		313
Bancorp (The), Inc.*		14,557		160
BancorpSouth, Inc.		48,979		712
Bank of Kentucky Financial Corp.		2,819		70
Bank of Marin Bancorp		2,805		105
Bank of the Ozarks, Inc.		15,327		513
Banner Corp.		9,753		300
Bar Harbor Bankshares		1,855		62
BBCN Bancorp, Inc.		40,971		474
Berkshire Bancorp, Inc.		2,068		17
Boston Private Financial Holdings, Inc.		41,428		373
Bridge Bancorp, Inc.		4,121		84
Bridge Capital Holdings*		4,442		69
Bryn Mawr Bank Corp.		6,093		136
C&F Financial Corp.		1,769		69
Camden National Corp.		3,985		135
Capital Bank Financial Corp., Class A*		5,108		87
Capital City Bank Group, Inc.*		5,654		64
Cardinal Financial Corp.		14,842		241
Cascade Bancorp*		2,511		16
Cass Information Systems, Inc.		5,274		223
Cathay General Bancorp		41,070		801
Center Bancorp, Inc.		5,721		66
Centerstate Banks, Inc.		15,137		129
Central Pacific Financial Corp.*		11,093		173
Century Bancorp, Inc., Class A		1,694		56
Chemical Financial Corp.		14,783		351
Citizens & Northern Corp.		6,176		117
Citizens Republic Bancorp, Inc.*		21,103		400
City Holding Co.		7,841		273
CNB Financial Corp.		6,534		107
CoBiz Financial, Inc.		17,525		131
Columbia Banking System, Inc.		21,106		379
Community Bank System, Inc.		20,428		559
Community Trust Bancorp, Inc.		7,253		238
Crescent Financial Bancshares, Inc.*		1,837		8
CVB Financial Corp.		46,092		479
Eagle Bancorp, Inc.*		9,294		186
Enterprise Bancorp, Inc.		2,928		48
Enterprise Financial Services Corp.		9,421		123
Farmers National Banc Corp.		8,960		56
Fidelity Southern Corp.		4,689		45
Financial Institutions, Inc.		7,066		132
First Bancorp		8,077		104
First BanCorp (New York Exchange)*		36,091		165
First Bancorp, Inc.		4,445		73
First Busey Corp.		38,284		178
First California Financial Group, Inc.*		12,711		98
First Commonwealth Financial Corp.		56,194		383
First Community Bancshares, Inc.		8,924		142
First Connecticut Bancorp, Inc.		9,205		127
First Financial Bancorp		30,920		452
First Financial Bankshares, Inc.		16,472		643
First Financial Corp.		5,769		174
First Interstate Bancsystem, Inc.		8,303		128
First Merchants Corp.		14,576		216
First Midwest Bancorp, Inc.		39,213		491
First of Long Island (The) Corp.		3,867		109
FirstMerit Corp.		57,035		809
FNB Corp.		72,561		771
FNB United Corp.*		4,792		56
Franklin Financial Corp.		7,353		122
German American Bancorp, Inc.		6,635		144
Glacier Bancorp, Inc.		37,455		551
Great Southern Bancorp, Inc.		5,653		144
Guaranty Bancorp*		36,489		71
Hancock Holding Co.		39,622		1,258
Hanmi Financial Corp.*		16,890		229

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Banks - 6.4% continued
Heartland Financial USA, Inc.		7,866	$	206
Heritage Commerce Corp.*		10,917		76
Heritage Financial Corp.		8,139		120
Heritage Oaks Bancorp*		9,584		56
Home BancShares, Inc.		11,696		386
Horizon Bancorp		3,288		65
Hudson Valley Holding Corp.		8,175		127
Iberiabank Corp.		15,381		755
Independent Bank Corp.		11,690		338
International Bancshares Corp.		27,938		504
Lakeland Bancorp, Inc.		14,423		147
Lakeland Financial Corp.		8,809		228
MainSource Financial Group, Inc.		10,562		134
MB Financial, Inc.		28,520		563
Mercantile Bank Corp.		4,773		79
Merchants Bancshares, Inc.		2,776		74
Metro Bancorp, Inc.*		7,576		100
MetroCorp Bancshares, Inc.*		7,596		83
Middleburg Financial Corp.		2,592		46
MidSouth Bancorp, Inc.		4,025		66
MidWestOne Financial Group, Inc.		3,249		67
National Bankshares, Inc.		3,631		118
National Penn Bancshares, Inc.		64,269		599
NBT Bancorp, Inc.		17,603		357
Northrim BanCorp, Inc.		3,093		70
Old National Bancorp		52,854		627
OmniAmerican Bancorp, Inc.*		5,914		137
Oriental Financial Group, Inc.		23,856		318
Pacific Continental Corp.		9,570		93
Pacific Mercantile Bancorp*		5,164		32
PacWest Bancorp		16,071		398
Park National Corp.		6,031		390
Park Sterling Corp.*		21,801		114
Peapack Gladstone Financial Corp.		4,238		60
Penns Woods Bancorp, Inc.		1,743		65
Peoples Bancorp, Inc.		5,602		114
Pinnacle Financial Partners, Inc.*		18,471		348
Preferred Bank*		5,638		80
PrivateBancorp, Inc.		31,595		484
Prosperity Bancshares, Inc.		24,506		1,029
Renasant Corp.		12,892		247
Republic Bancorp, Inc., Class A		4,964		105
S&T Bancorp, Inc.		14,805		267
S.Y. Bancorp, Inc.		6,419		144
Sandy Spring Bancorp, Inc.		12,636		245
SCBT Financial Corp.		8,588		345
Seacoast Banking Corp. of Florida*		36,808		59
Sierra Bancorp		5,853		67
Simmons First National Corp., Class A		8,791		223
Southside Bancshares, Inc.		9,435		199
Southwest Bancorp, Inc.*		10,933		122
State Bank Financial Corp.		16,916		269
StellarOne Corp.		12,066		171
Sterling Bancorp		16,243		148
Sterling Financial Corp.		14,368		300
Suffolk Bancorp*		4,828		63
Sun Bancorp, Inc.*		19,707		70
Susquehanna Bancshares, Inc.		97,571		1,023
Taylor Capital Group, Inc.*		8,348		151
Texas Capital Bancshares, Inc.*		20,841		934
Tompkins Financial Corp.		5,721		227
TowneBank		14,174		220
Trico Bancshares		8,332		140
TrustCo Bank Corp. NY		48,889		258
Trustmark Corp.		33,611		755
UMB Financial Corp.		16,754		734
Umpqua Holdings Corp.		58,176		686
Union First Market Bankshares Corp.		10,629		168
United Bankshares, Inc.		26,137		636
United Community Banks, Inc.*		21,518		203
Univest Corp. of Pennsylvania		8,822		151
ViewPoint Financial Group, Inc.		17,801		373
Virginia Commerce Bancorp, Inc.*		14,028		126
Walker & Dunlop, Inc.*		6,037		101
Washington Banking Co.		8,072		110
Washington Trust Bancorp, Inc.		7,411		195
Webster Financial Corp.		37,485		770
WesBanco, Inc.		13,418		298
West Bancorporation, Inc.		7,215		78
West Coast Bancorp		9,937		220
Westamerica Bancorporation		14,514		618
Western Alliance Bancorp*		38,477		405
Wilshire Bancorp, Inc.*		31,711		186
Wintrust Financial Corp.		18,715		687
				40,882
Beverages - 0.1%
Boston Beer (The) Co., Inc., Class A*		4,065		546
Central European Distribution Corp.*		33,467		73

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Beverages - 0.1% continued
Coca-Cola Bottling Co. Consolidated		2,408	$	160
Craft Brew Alliance, Inc.*		5,462		35
Farmer Bros. Co.*		3,720		54
National Beverage Corp.		5,895		86
				954
Biotechnology - 2.2%
Acorda Therapeutics, Inc.*		21,039		523
Aegerion Pharmaceuticals, Inc.*		13,319		338
Affymax, Inc.*		18,474		351
Agenus, Inc.*		13,290		55
Alnylam Pharmaceuticals, Inc.*		24,395		445
AMAG Pharmaceuticals, Inc.*		10,937		161
Arena Pharmaceuticals, Inc.*		113,144		1,021
Arqule, Inc.*		28,735		80
Astex Pharmaceuticals*		49,202		143
BioCryst Pharmaceuticals, Inc.*		23,583		34
Biotime, Inc.*		14,832		47
Cambrex Corp.*		14,862		169
Celldex Therapeutics, Inc.*		32,512		218
Ceres, Inc.*		2,658		12
Coronado Biosciences, Inc.*		8,659		39
Cubist Pharmaceuticals, Inc.*		32,968		1,387
Curis, Inc.*		40,471		139
Dendreon Corp.*		81,377		430
Discovery Laboratories, Inc.*		21,097		45
Dynavax Technologies Corp.*		88,811		254
Emergent Biosolutions, Inc.*		14,056		225
Enzon Pharmaceuticals, Inc.		21,906		97
Exact Sciences Corp.*		33,801		358
Exelixis, Inc.*		96,426		441
Geron Corp.*		64,666		91
GTx, Inc.*		13,639		57
Halozyme Therapeutics, Inc.*		47,504		319
Harvard Bioscience, Inc.*		12,187		53
Immunogen, Inc.*		43,586		556
Immunomedics, Inc.*		34,582		101
Intercept Pharmaceuticals, Inc.*		2,488		85
InterMune, Inc.*		33,834		328
KYTHERA Biopharmaceuticals, Inc.*		2,714		82
Lexicon Pharmaceuticals, Inc.*		111,131		247
Ligand Pharmaceuticals, Inc., Class B*		8,777		182
Maxygen, Inc.		13,240		33
Medicines (The) Co.*		28,879		692
Merrimack Pharmaceuticals, Inc.*		7,398		45
Momenta Pharmaceuticals, Inc.*		24,041		283
NewLink Genetics Corp.*		6,850		86
Novavax, Inc.*		68,605		130
NPS Pharmaceuticals, Inc.*		45,388		413
Omeros Corp.*		12,707		66
OncoGenex Pharmaceutical, Inc.*		7,299		96
Oncothyreon, Inc.*		29,388		56
Pacific Biosciences of California, Inc.*		17,892		30
PDL BioPharma, Inc.		72,794		513
Repligen Corp.*		16,755		105
RTI Biologics, Inc.*		28,050		120
Sangamo Biosciences, Inc.*		26,580		160
Seattle Genetics, Inc.*		49,615		1,151
Sequenom, Inc.*		60,671		286
Spectrum Pharmaceuticals, Inc.		31,666		354
Sunesis Pharmaceuticals, Inc.*		14,835		62
Transcept Pharmaceuticals, Inc.*		6,136		27
Trius Therapeutics, Inc.*		15,058		72
Verastem, Inc.*		2,820		25
Vical, Inc.*		39,981		116
XOMA Corp.*		41,455		99
ZIOPHARM Oncology, Inc.*		34,708		144
				14,277
Building Materials - 1.4%
AAON, Inc.		9,493		198
American DG Energy, Inc.*		11,842		27
Apogee Enterprises, Inc.		14,828		355
Builders FirstSource, Inc.*		23,285		130
Comfort Systems USA, Inc.		19,352		235
Drew Industries, Inc.		10,203		329
Eagle Materials, Inc.		25,479		1,491
Gibraltar Industries, Inc.*		16,257		259
Griffon Corp.		23,147		265
Headwaters, Inc.*		31,173		267
Louisiana-Pacific Corp.*		71,717		1,386
LSI Industries, Inc.		10,061		71
NCI Building Systems, Inc.*		9,017		125
Nortek, Inc.*		4,163		276
Patrick Industries, Inc.*		1,923		30
PGT, Inc.*		9,458		43
Quanex Building Products Corp.		19,516		398
Simpson Manufacturing Co., Inc.		20,926		686
Texas Industries, Inc.*		11,787		601
Trex Co., Inc.*		7,952		296

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Building Materials - 1.4% continued
Universal Forest Products, Inc.		10,426	$	397
USG Corp.*		38,657		1,085
				8,950
Chemicals - 1.9%
A. Schulman, Inc.		15,522		449
Aceto Corp.		13,577		136
American Vanguard Corp.		14,666		456
Balchem Corp.		15,361		559
Chemtura Corp.*		51,435		1,094
Codexis, Inc.*		12,804		28
Ferro Corp.*		43,639		182
Georgia Gulf Corp.		17,867		738
H.B. Fuller Co.		26,019		906
Hawkins, Inc.		4,678		181
Innophos Holdings, Inc.		11,401		530
Innospec, Inc.		12,167		420
KMG Chemicals, Inc.		3,733		66
Kraton Performance Polymers, Inc.*		17,069		410
Landec Corp.*		12,935		123
Minerals Technologies, Inc.		18,411		735
Oil-Dri Corp. of America		2,411		67
Olin Corp.		41,691		900
OM Group, Inc.*		16,687		370
OMNOVA Solutions, Inc.*		23,842		167
PolyOne Corp.		46,685		953
Quaker Chemical Corp.		6,653		358
Rentech, Inc.		120,156		316
Sensient Technologies Corp.		26,046		926
Spartech Corp.*		16,224		147
Stepan Co.		8,812		489
Zep, Inc.		11,494		166
Zoltek Cos., Inc.*		13,748		107
				11,979
Coal - 0.3%
Arch Coal, Inc.		110,802		811
Cloud Peak Energy, Inc.*		31,903		617
Hallador Energy Co.		3,203		26
SunCoke Energy, Inc.*		36,552		570
Westmoreland Coal Co.*		5,230		49
				2,073
Commercial Services - 6.2%
ABM Industries, Inc.		28,005		559
Acacia Research Corp.*		25,966		666
Accretive Health, Inc.*		28,893		334
Advisory Board (The) Co.*		17,822		834
American Public Education, Inc.*		9,580		346
American Reprographics Co.*		17,200		44
AMN Healthcare Services, Inc.*		23,232		268
Arbitron, Inc.		13,761		642
Ascent Capital Group, Inc., Class A*		7,452		462
AVEO Pharmaceuticals, Inc.*		20,092		162
Avis Budget Group, Inc.*		55,275		1,096
Barrett Business Services, Inc.		3,801		145
Bridgepoint Education, Inc.*		8,490		87
Brink’s (The) Co.		24,678		704
Capella Education Co.*		6,462		182
Cardtronics, Inc.*		23,080		548
Career Education Corp.*		27,715		98
Carriage Services, Inc.		8,541		101
CBIZ, Inc.*		21,310		126
CDI Corp.		7,187		123
Cenveo, Inc.*		25,681		69
Chemed Corp.		10,019		687
Collectors Universe		2,618		26
Consolidated Graphics, Inc.*		4,061		142
Convergys Corp.		56,896		934
Corinthian Colleges, Inc.*		40,864		100
Corporate Executive Board (The) Co.		17,480		830
Corvel Corp.*		3,163		142
CoStar Group, Inc.*		14,722		1,316
CRA International, Inc.*		5,076		100
Cross Country Healthcare, Inc.*		13,763		66
Deluxe Corp.		26,542		856
Education Management Corp.*		13,040		57
Electro Rent Corp.		9,901		152
Ennis, Inc.		13,368		207
Euronet Worldwide, Inc.*		26,472		625
ExamWorks Group, Inc.*		14,871		208
ExlService Holdings, Inc.*		11,992		318
Forrester Research, Inc.		7,581		203
Franklin Covey Co.*		6,774		87
FTI Consulting, Inc.*		21,885		722
Geo Group (The), Inc.		38,192		1,077
Global Cash Access Holdings, Inc.*		34,957		274
Grand Canyon Education, Inc.*		20,928		491
Great Lakes Dredge & Dock Corp.		31,448		281
Green Dot Corp., Class A*		12,416		151

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Commercial Services - 6.2% continued
H&E Equipment Services, Inc.		15,367	$	232
Hackett Group (The), Inc.		12,782		55
Healthcare Services Group, Inc.		35,084		815
Heartland Payment Systems, Inc.		20,244		597
Heidrick & Struggles International, Inc.		9,332		142
Hill International, Inc.*		10,305		38
HMS Holdings Corp.*		44,842		1,162
Hudson Global, Inc.*		16,161		72
Huron Consulting Group, Inc.*		12,106		408
ICF International, Inc.*		10,679		250
Insperity, Inc.		11,612		378
Intersections, Inc.		5,090		48
K12, Inc.*		13,820		282
Kelly Services, Inc., Class A		13,633		215
Kforce, Inc.		15,592		223
Korn/Ferry International*		24,461		388
Landauer, Inc.		4,885		299
LifeLock, Inc.*		9,738		79
Lincoln Educational Services Corp.		10,843		61
Live Nation Entertainment, Inc.*		73,144		681
Mac-Gray Corp.		5,490		69
Matthews International Corp., Class A		14,762		474
MAXIMUS, Inc.		17,685		1,118
McGrath RentCorp		13,223		384
Medifast, Inc.*		7,093		187
MoneyGram International, Inc.*		10,997		146
Monro Muffler Brake, Inc.		16,150		565
Monster Worldwide, Inc.*		64,145		360
Multi-Color Corp.		6,948		167
National American University Holdings, Inc.		3,846		15
National Research Corp.		1,396		76
Navigant Consulting, Inc.*		26,817		299
Odyssey Marine Exploration, Inc.*		39,083		116
On Assignment, Inc.*		22,599		458
PAREXEL International Corp.*		31,124		921
PDI, Inc.*		4,879		37
Pendrell Corp.*		81,765		104
Performant Financial Corp.*		4,664		47
PHH Corp.*		29,535		672
Premier Exhibitions, Inc.*		12,488		34
PRGX Global, Inc.*		12,608		81
Providence Service (The) Corp.*		7,096		121
Quad/Graphics, Inc.		13,400		273
Rent-A-Center, Inc.		30,962		1,064
Resources Connection, Inc.		22,536		269
RPX Corp.*		11,238		102
ServiceSource International, Inc.*		25,278		148
Sotheby’s		35,310		1,187
Standard Parking Corp.*		8,169		180
Steiner Leisure Ltd.*		8,134		392
Stewart Enterprises, Inc., Class A		38,765		296
Strayer Education, Inc.		6,284		353
Swisher Hygiene, Inc.*		62,190		109
Team Health Holdings, Inc.*		14,939		430
Team, Inc.*		10,611		404
TeleTech Holdings, Inc.*		11,744		209
TMS International Corp., Class A*		6,398		80
TNS, Inc.*		12,553		260
Tree.com, Inc.		2,907		52
TrueBlue, Inc.*		20,819		328
Universal Technical Institute, Inc.		11,015		111
Valassis Communications, Inc.		20,780		536
Viad Corp.		10,689		290
VistaPrint N.V.*		17,827		586
Westway Group, Inc.*		5,887		39
WEX, Inc.*		20,250		1,526
Zipcar, Inc.*		14,544		120
				39,868
Computers - 1.8%
3D Systems Corp.*		24,415		1,303
Acorn Energy, Inc.		9,737		76
Agilysys, Inc.*		7,365		62
CACI International, Inc., Class A*		11,815		650
Carbonite, Inc.*		5,492		51
CIBER, Inc.*		38,284		128
Computer Task Group, Inc.*		7,954		145
Cray, Inc.*		18,964		302
Datalink Corp.*		7,295		62
Digimarc Corp.		3,418		71
Echelon Corp.*		17,446		43
Electronics for Imaging, Inc.*		24,506		465
FleetMatics Group PLC*		4,719		119
iGATE Corp.*		16,718		264
Imation Corp.*		16,930		79
Immersion Corp.*		13,843		95
Insight Enterprises, Inc.*		23,438		407
j2 Global, Inc.		24,132		738
Key Tronic Corp.*		5,007		51

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Computers - 1.8% continued
KEYW Holding (The) Corp.*		12,684	$	161
LivePerson, Inc.*		29,129		383
Manhattan Associates, Inc.*		10,589		639
Mattersight Corp.*		4,936		25
Maxwell Technologies, Inc.*		14,499		120
Mentor Graphics Corp.*		48,450		825
Mercury Systems, Inc.*		15,611		144
MTS Systems Corp.		8,470		431
Netscout Systems, Inc.*		19,251		500
OCZ Technology Group, Inc.*		32,586		62
Qualys, Inc.*		4,694		69
Quantum Corp.*		124,189		154
Radisys Corp.*		11,331		34
RealD, Inc.*		22,126		248
Riverbed Technology, Inc.*		2,105		42
Silicon Graphics International Corp.*		16,414		168
Spansion, Inc., Class A*		25,713		358
STEC, Inc.*		18,800		93
Super Micro Computer, Inc.*		15,240		155
Sykes Enterprises, Inc.*		19,927		303
Synaptics, Inc.*		17,647		529
Syntel, Inc.		8,130		436
Unisys Corp.*		23,146		400
Virtusa Corp.*		9,524		156
Vocera Communications, Inc.*		3,643		91
				11,637
Cosmetics/Personal Care - 0.1%
Elizabeth Arden, Inc.*		13,180		593
Inter Parfums, Inc.		8,959		174
Revlon, Inc., Class A*		5,634		82
				849
Distribution/Wholesale - 1.0%
Beacon Roofing Supply, Inc.*		24,469		814
BlueLinx Holdings, Inc.*		11,783		33
Core-Mark Holding Co., Inc.		6,132		290
Houston Wire & Cable Co.		9,152		112
MWI Veterinary Supply, Inc.*		6,637		730
Owens & Minor, Inc.		33,014		941
Pool Corp.		24,639		1,043
Rentrak Corp.*		5,001		98
ScanSource, Inc.*		14,497		461
Titan Machinery, Inc.*		8,583		212
United Stationers, Inc.		21,212		657
Watsco, Inc.		15,332		1,149
				6,540
Diversified Financial Services - 2.5%
Aircastle Ltd.		31,284		392
Arlington Asset Investment Corp., Class A		6,144		128
Artio Global Investors, Inc.		15,807		30
Asset Acceptance Capital Corp.*		7,535		34
Asta Funding, Inc.		5,265		50
BGC Partners, Inc., Class A		49,513		171
Calamos Asset Management, Inc., Class A		9,899		105
California First National Bancorp		1,114		17
CIFC Corp.*		3,110		25
Cohen & Steers, Inc.		9,522		290
Cowen Group, Inc., Class A*		46,021		113
Credit Acceptance Corp.*		4,171		424
DFC Global Corp.*		23,136		428
Diamond Hill Investment Group, Inc.		1,355		92
Doral Financial Corp.*		61,551		45
Duff & Phelps Corp., Class A		15,943		249
Ellie Mae, Inc.*		13,342		370
Encore Capital Group, Inc.*		11,277		345
Epoch Holding Corp.		8,144		227
Evercore Partners, Inc., Class A		15,038		454
FBR & Co.*		20,815		81
Federal Agricultural Mortgage Corp., Class C		5,210		169
Financial Engines, Inc.*		24,153		670
First Marblehead (The) Corp.*		28,529		22
FXCM, Inc., Class A		13,198		133
Gain Capital Holdings, Inc.		7,220		29
GAMCO Investors, Inc., Class A		2,621		139
GFI Group, Inc.		36,025		117
Greenhill & Co., Inc.		15,139		787
Higher One Holdings, Inc.*		16,379		173
Horizon Technology Finance Corp.		3,872		58
INTL. FCStone, Inc.*		7,612		132
Investment Technology Group, Inc.*		20,084		181
JMP Group, Inc.		7,898		48
KBW, Inc.		18,326		280
Knight Capital Group, Inc., Class A*		92,759		326
Ladenburg Thalmann Financial Services, Inc.*		52,380		73
Manning & Napier, Inc.		7,131		90
MarketAxess Holdings, Inc.		19,028		672

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Diversified Financial Services - 2.5% continued
Marlin Business Services Corp.		4,120	$	83
Medley Capital Corp.		14,879		217
MicroFinancial, Inc.		4,123		30
National Financial Partners Corp.*		21,415		367
Nationstar Mortgage Holdings, Inc.*		10,079		312
Nelnet, Inc., Class A		12,322		367
Netspend Holdings, Inc.*		14,494		171
NewStar Financial, Inc.*		13,061		183
Nicholas Financial, Inc.		4,779		59
Ocwen Financial Corp.*		56,047		1,939
Oppenheimer Holdings, Inc., Class A		5,504		95
Piper Jaffray Cos.*		7,814		251
Portfolio Recovery Associates, Inc.*		8,930		954
Pzena Investment Management, Inc., Class A		4,841		26
Regional Management Corp.*		2,344		39
SeaCube Container Leasing Ltd.		5,733		108
Stifel Financial Corp.*		28,046		897
SWS Group, Inc.*		14,209		75
Virtus Investment Partners, Inc.*		3,083		373
WageWorks, Inc.*		3,686		66
Walter Investment Management Corp.*		18,651		802
Westwood Holdings Group, Inc.		3,442		141
WisdomTree Investments, Inc.*		29,933		183
World Acceptance Corp.*		5,469		408
				16,315
Electric - 2.1%
ALLETE, Inc.		19,723		808
Ameresco, Inc., Class A*		10,615		104
Atlantic Power Corp.		59,470		680
Avista Corp.		30,590		737
Black Hills Corp.		22,954		834
CH Energy Group, Inc.		7,740		505
Cleco Corp.		31,639		1,266
El Paso Electric Co.		21,156		675
Empire District Electric (The) Co.		22,364		456
EnerNOC, Inc.*		12,397		146
Genie Energy Ltd., Class B		7,053		50
IDACORP, Inc.		26,131		1,133
MGE Energy, Inc.		12,183		621
NorthWestern Corp.		19,062		662
Ormat Technologies, Inc.		9,081		175
Otter Tail Corp.		19,203		480
Pike Electric Corp.		8,521		81
PNM Resources, Inc.		41,771		857
PNM Resources, Inc. - (Fractional Shares)*		50,000		—
Portland General Electric Co.		38,869		1,063
UIL Holdings Corp.		26,187		938
Unitil Corp.		7,140		185
UNS Energy Corp.		20,899		887
				13,343
Electrical Components & Equipment - 1.0%
Acuity Brands, Inc.		22,082		1,496
Advanced Energy Industries, Inc.*		20,993		290
American Superconductor Corp.*		18,754		49
Belden, Inc.		23,705		1,067
Capstone Turbine Corp.*		152,936		136
Coleman Cable, Inc.		4,256		39
Encore Wire Corp.		8,781		266
EnerSys, Inc.*		25,002		941
Generac Holdings, Inc.		13,066		448
Graham Corp.		5,323		104
Insteel Industries, Inc.		9,342		117
Littelfuse, Inc.		11,244		694
Powell Industries, Inc.*		4,547		189
Power-One, Inc.*		36,800		151
SunPower Corp.*		21,963		123
Universal Display Corp.*		20,783		533
Vicor Corp.*		9,665		52
				6,695
Electronics - 2.4%
American Science & Engineering, Inc.		4,503		294
Analogic Corp.		6,434		478
Badger Meter, Inc.		7,686		364
Bel Fuse, Inc., Class B		5,212		102
Benchmark Electronics, Inc.*		30,230		502
Brady Corp., Class A		25,558		854
Checkpoint Systems, Inc.*		20,824		224
Coherent, Inc.		12,362		626
CTS Corp.		17,699		188
Cymer, Inc.*		16,120		1,458
Daktronics, Inc.		18,494		205
Electro Scientific Industries, Inc.		11,919		119
ESCO Technologies, Inc.		14,023		525
FARO Technologies, Inc.*		8,720		311
FEI Co.		19,778		1,097
Fluidigm Corp.*		12,378		177

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Electronics - 2.4% continued
GSI Group, Inc.*		15,344	$	133
II-VI, Inc.*		27,514		503
InvenSense, Inc.*		19,585		217
Kemet Corp.*		23,373		117
Measurement Specialties, Inc.*		7,829		269
Mesa Laboratories, Inc.		1,235		62
Methode Electronics, Inc.		18,934		190
Multi-Fineline Electronix, Inc.*		4,312		87
Newport Corp.*		20,344		274
NVE Corp.*		2,502		139
OSI Systems, Inc.*		10,342		662
Park Electrochemical Corp.		10,611		273
Plexus Corp.*		18,393		474
Rofin-Sinar Technologies, Inc.*		14,979		325
Rogers Corp.*		8,635		429
Sanmina Corp.*		42,830		474
Stoneridge, Inc.*		13,873		71
Sypris Solutions, Inc.		5,125		20
Taser International, Inc.*		26,365		236
TTM Technologies, Inc.*		28,626		263
Viasystems Group, Inc.*		2,155		26
Vishay Precision Group, Inc.*		6,636		88
Watts Water Technologies, Inc., Class A		14,486		623
Woodward, Inc.		36,096		1,376
Zagg, Inc.*		13,583		100
Zygo Corp.*		8,363		131
				15,086
Energy - Alternate Sources - 0.2%
Amyris, Inc.*		14,744		46
Clean Energy Fuels Corp.*		34,699		432
Enphase Energy, Inc.*		3,870		14
FuelCell Energy, Inc.*		77,879		71
FutureFuel Corp.		9,998		118
Gevo, Inc.*		14,687		23
Green Plains Renewable Energy, Inc.*		13,295		105
KiOR, Inc., Class A*		14,190		91
Renewable Energy Group, Inc.*		3,240		19
REX American Resources Corp.*		2,908		56
Saratoga Resources, Inc.*		10,633		38
Solazyme, Inc.*		17,042		134
				1,147
Engineering & Construction - 0.8%
Aegion Corp.*		20,677		459
Argan, Inc.		5,503		99
Dycom Industries, Inc.*		17,859		354
EMCOR Group, Inc.		34,732		1,202
Exponent, Inc.*		7,113		397
Granite Construction, Inc.		20,128		677
Layne Christensen Co.*		10,704		260
MasTec, Inc.*		28,391		708
Michael Baker Corp.		4,429		110
Mistras Group, Inc.*		7,957		196
MYR Group, Inc.*		10,926		243
Orion Marine Group, Inc.*		14,133		103
Sterling Construction Co., Inc.*		8,127		81
Tutor Perini Corp.*		18,160		249
VSE Corp.		2,157		53
				5,191
Entertainment - 1.0%
Bluegreen Corp.*		6,975		66
Carmike Cinemas, Inc.*		9,277		139
Churchill Downs, Inc.		6,858		456
International Speedway Corp., Class A		14,625		404
Isle of Capri Casinos, Inc.*		10,404		58
Lions Gate Entertainment Corp.*		44,222		725
Marriott Vacations Worldwide Corp.*		13,877		578
Multimedia Games Holding Co., Inc.*		13,929		205
National CineMedia, Inc.		29,544		418
Pinnacle Entertainment, Inc.*		30,696		486
Reading International, Inc., Class A*		8,010		48
Scientific Games Corp., Class A*		27,147		235
SHFL Entertainment, Inc.*		29,021		421
Six Flags Entertainment Corp.		20,671		1,265
Speedway Motorsports, Inc.		6,149		110
Vail Resorts, Inc.		18,808		1,017
				6,631
Environmental Control - 0.6%
ADA-ES, Inc.*		4,332		73
Calgon Carbon Corp.*		30,025		426
Casella Waste Systems, Inc., Class A*		19,039		83
Ceco Environmental Corp.		3,467		35
Darling International, Inc.*		61,313		983
Energy Recovery, Inc.*		23,459		80
EnergySolutions, Inc.*		41,175		128
GSE Holding, Inc.*		3,730		23
Heckmann Corp.*		73,600		297

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Environmental Control - 0.6% continued
Heritage-Crystal Clean, Inc.*		3,688	$	55
Metalico, Inc.*		19,728		39
Met-Pro Corp.		7,108		69
Mine Safety Appliances Co.		14,398		615
Tetra Tech, Inc.*		33,070		875
TRC Cos., Inc.*		7,014		41
US Ecology, Inc.		10,000		235
				4,057
Food - 1.9%
Annie’s, Inc.*		2,653		89
Arden Group, Inc., Class A		548		49
B&G Foods, Inc.		27,451		777
Calavo Growers, Inc.		6,134		155
Cal-Maine Foods, Inc.		7,434		299
Chefs’ Warehouse (The), Inc.*		6,262		99
Chiquita Brands International, Inc.*		23,387		193
Diamond Foods, Inc.		11,443		156
Dole Food Co., Inc.*		18,458		212
Fresh Del Monte Produce, Inc.		19,918		525
Hain Celestial Group (The), Inc.*		19,231		1,043
Harris Teeter Supermarkets, Inc.		23,028		888
Ingles Markets, Inc., Class A		6,506		112
Inventure Foods, Inc.*		6,333		41
J&J Snack Foods Corp.		7,766		497
John B. Sanfilippo & Son, Inc.		3,801		69
Lancaster Colony Corp.		9,585		663
Lifeway Foods, Inc.		2,538		22
Nash Finch Co.		6,247		133
Pilgrim’s Pride Corp.*		30,726		223
Post Holdings, Inc.*		13,604		466
Sanderson Farms, Inc.		11,959		569
Seaboard Corp.		162		410
Seneca Foods Corp., Class A*		4,563		139
Smart Balance, Inc.*		31,099		401
Snyders-Lance, Inc.		23,111		557
Spartan Stores, Inc.		11,839		182
SUPERVALU, Inc.		112,018		277
Tootsie Roll Industries, Inc.		12,543		325
TreeHouse Foods, Inc.*		18,769		978
United Natural Foods, Inc.*		25,440		1,363
Village Super Market, Inc., Class A		4,316		142
Weis Markets, Inc.		5,601		219
				12,273
Forest Products & Paper - 0.7%
Boise, Inc.		52,987		421
Buckeye Technologies, Inc.		20,612		592
Clearwater Paper Corp.*		12,269		480
Deltic Timber Corp.		5,801		410
KapStone Paper and Packaging Corp.		21,278		472
Neenah Paper, Inc.		8,128		231
Orchids Paper Products Co.		2,745		55
P.H. Glatfelter Co.		22,520		394
Resolute Forest Products*		42,357		561
Schweitzer-Mauduit International, Inc.		16,215		633
Wausau Paper Corp.		22,510		195
				4,444
Gas - 1.0%
Chesapeake Utilities Corp.		4,958		225
Delta Natural Gas Co., Inc.		3,252		64
Laclede Group (The), Inc.		11,830		457
New Jersey Resources Corp.		21,693		860
Northwest Natural Gas Co.		13,997		619
Piedmont Natural Gas Co., Inc.		37,404		1,171
South Jersey Industries, Inc.		15,863		798
Southwest Gas Corp.		24,009		1,018
WGL Holdings, Inc.		26,623		1,043
				6,255
Hand/Machine Tools - 0.1%
Franklin Electric Co., Inc.		12,248		761
Hardinge, Inc.		5,595		56
				817
Healthcare - Products - 3.3%
Abaxis, Inc.		11,432		424
ABIOMED, Inc.*		17,321		233
Accuray, Inc.*		38,047		245
Affymetrix, Inc.*		35,119		111
Align Technology, Inc.*		37,465		1,040
Alphatec Holdings, Inc.*		28,433		47
AngioDynamics, Inc.*		12,959		142
ArthroCare Corp.*		14,501		502
AtriCure, Inc.*		6,909		48
Atrion Corp.		781		153
BG Medicine, Inc.*		5,233		12
Cantel Medical Corp.		10,948		326
Cardiovascular Systems, Inc.*		8,377		105
Cepheid, Inc.*		34,249		1,158
Cerus Corp.*		27,082		86

EQUITY INDEX FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Healthcare - Products - 3.3% continued
Chindex International, Inc.*		6,022	$	63
Conceptus, Inc.*		16,617		349
CONMED Corp.		14,919		417
CryoLife, Inc.		14,116		88
Cyberonics, Inc.*		14,350		754
Cynosure, Inc., Class A*		6,492		157
DexCom, Inc.*		35,996		490
Endologix, Inc.*		29,261		417
EnteroMedics, Inc.*		12,311		35
Exactech, Inc.*		4,769		81
Female Health (The) Co.		9,225		66
Genomic Health, Inc.*		8,165		223
Globus Medical, Inc., Class A*		4,668		49
Greatbatch, Inc.*		12,223		284
Haemonetics Corp.*		26,198		1,070
Hanger, Inc.*		17,878		489
Hansen Medical, Inc.*		28,016		58
HeartWare International, Inc.*		7,374		619
ICU Medical, Inc.*		6,593		402
ImmunoCellular Therapeutics Ltd.*		27,534		53
Insulet Corp.*		24,987		530
Integra LifeSciences Holdings Corp.*		10,356		404
Invacare Corp.		17,022		277
Luminex Corp.*		22,112		371
MAKO Surgical Corp.*		20,605		265
Masimo Corp.		26,095		548
Merge Healthcare, Inc.*		29,147		72
Meridian Bioscience, Inc.		21,719		440
Merit Medical Systems, Inc.*		21,647		301
Natus Medical, Inc.*		15,119		169
Navidea Biopharmaceuticals, Inc.*		51,024		144
NuVasive, Inc.*		22,947		355
NxStage Medical, Inc.*		27,205		306
OraSure Technologies, Inc.*		27,668		199
Orthofix International N.V.*		9,889		389
Palomar Medical Technologies, Inc.*		10,011		92
PhotoMedex, Inc.*		7,328		106
PSS World Medical, Inc.*		26,215		757
Quidel Corp.*		14,594		272
Rochester Medical Corp.*		5,028		51
Rockwell Medical Technologies, Inc.*		11,827		95
Solta Medical, Inc.*		34,991		93
Spectranetics Corp.*		17,436		258
Staar Surgical Co.*		19,383		118
STERIS Corp.		30,067		1,044
SurModics, Inc.*		6,783		152
Symmetry Medical, Inc.*		19,133		201
Tornier N.V.*		8,742		147
Unilife Corp.*		39,994		91
Utah Medical Products, Inc.		1,551		56
Vascular Solutions, Inc.*		8,315		131
Volcano Corp.*		27,839		657
West Pharmaceutical Services, Inc.		17,540		960
Wright Medical Group, Inc.*		20,691		434
Young Innovations, Inc.		2,775		109
Zeltiq Aesthetics, Inc.*		8,069		37
				21,427
Healthcare - Services - 1.6%
Acadia Healthcare Co., Inc.*		14,078		328
Air Methods Corp.		20,067		740
Almost Family, Inc.		4,415		89
Amedisys, Inc.*		15,399		174
Amsurg Corp.*		16,597		498
Assisted Living Concepts, Inc., Class A		9,535		93
Bio-Reference Labs, Inc.*		13,045		374
Capital Senior Living Corp.*		14,372		269
Centene Corp.*		26,849		1,101
Emeritus Corp.*		15,778		390
Ensign Group (The), Inc.		9,358		254
Five Star Quality Care, Inc.*		21,188		106
Gentiva Health Services, Inc.*		15,494		156
HealthSouth Corp.*		49,892		1,053
Healthways, Inc.*		18,009		193
IPC The Hospitalist Co., Inc.*		8,480		337
Kindred Healthcare, Inc.*		28,180		305
LHC Group, Inc.*		7,975		170
Magellan Health Services, Inc.*		14,255		698
Molina Healthcare, Inc.*		15,764		427
National Healthcare Corp.		5,509		259
Select Medical Holdings Corp.		17,796		168
Skilled Healthcare Group, Inc., Class A*		9,713		62
Sunrise Senior Living, Inc.*		30,576		440
Triple-S Management Corp., Class B*		10,041		185
U.S. Physical Therapy, Inc.		5,954		164
Universal American Corp.		19,192		165
Vanguard Health Systems, Inc.*		16,329		200
WellCare Health Plans, Inc.*		22,490		1,095
				10,493

NORTHERN FUNDS QUARTERLY REPORT    11    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Holding Companies - Diversified - 0.1%
Harbinger Group, Inc.*		21,015	$	161
Horizon Pharma, Inc.*		18,025		42
National Bank Holdings Corp., Class A		3,729		71
Primoris Services Corp.		16,145		243
Resource America, Inc., Class A		5,846		39
				556
Home Builders - 0.7%
Beazer Homes USA, Inc.*		12,482		211
Cavco Industries, Inc.*		3,518		176
Hovnanian Enterprises, Inc., Class A*		54,972		385
KB Home		40,248		636
M/I Homes, Inc.*		10,879		288
MDC Holdings, Inc.		19,954		733
Meritage Homes Corp.*		15,996		597
Ryland Group (The), Inc.		23,276		850
Standard Pacific Corp.*		60,853		447
Winnebago Industries, Inc.*		15,242		261
				4,584
Home Furnishings - 0.5%
American Woodmark Corp.*		5,062		141
Bassett Furniture Industries, Inc.		5,348		67
DTS, Inc.*		9,992		167
Ethan Allen Interiors, Inc.		12,442		320
Flexsteel Industries, Inc.		2,161		46
Hooker Furniture Corp.		5,162		75
Kimball International, Inc., Class B		16,878		196
La-Z-Boy, Inc.		27,334		387
Sealy Corp.*		25,991		56
Select Comfort Corp.*		29,597		774
Skullcandy, Inc.*		7,787		61
TiVo, Inc.*		64,836		799
Universal Electronics, Inc.*		7,671		148
VOXX International Corp.*		10,056		68
				3,305
Household Products/Wares - 0.5%
A.T. Cross Co., Class A*		5,139		55
ACCO Brands Corp.*		59,494		437
American Greetings Corp., Class A		16,468		278
Blyth, Inc.		5,204		81
Central Garden and Pet Co., Class A*		19,912		208
CSS Industries, Inc.		4,738		104
Helen of Troy Ltd.*		16,570		553
Prestige Brands Holdings, Inc.*		26,315		527
Spectrum Brands Holdings, Inc.		12,012		540
Tumi Holdings, Inc.*		10,994		229
WD-40 Co.		8,470		399
				3,411
Housewares - 0.0%
Libbey, Inc.*		10,460		203
Lifetime Brands, Inc.		4,739		50
				253
Insurance - 2.5%
Alterra Capital Holdings Ltd.		44,655		1,259
American Equity Investment Life Holding Co.		31,923		390
American Safety Insurance Holdings Ltd.*		4,570		86
AMERISAFE, Inc.*		9,729		265
Amtrust Financial Services, Inc.		13,709		393
Argo Group International Holdings Ltd.		13,516		454
Baldwin & Lyons, Inc., Class B		4,826		115
Citizens, Inc.*		20,353		225
CNO Financial Group, Inc.		104,912		979
Crawford & Co., Class B		11,835		94
Donegal Group, Inc., Class A		3,523		49
Eastern Insurance Holdings, Inc.		3,205		55
eHealth, Inc.*		10,137		279
EMC Insurance Group, Inc.		2,156		51
Employers Holdings, Inc.		16,793		346
Enstar Group Ltd.*		4,442		497
FBL Financial Group, Inc., Class A		4,866		166
First American Financial Corp.		55,299		1,332
Fortegra Financial Corp.*		3,245		29
Global Indemnity PLC*		5,806		128
Greenlight Capital Re Ltd., Class A*		14,375		332
Hallmark Financial Services, Inc.*		6,807		64
Hilltop Holdings, Inc.*		20,516		278
Homeowners Choice, Inc.		4,655		97
Horace Mann Educators Corp.		20,968		419
Independence Holding Co.		3,400		32
Infinity Property & Casualty Corp.		6,280		366
Investors Title Co.		601		36
Kansas City Life Insurance Co.		2,108		80
Maiden Holdings Ltd.		26,065		240
Meadowbrook Insurance Group, Inc.		25,520		148
MGIC Investment Corp.*		98,487		262
Montpelier Re Holdings Ltd.		26,031		595
National Interstate Corp.		3,360		97

EQUITY INDEX FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Insurance - 2.5% continued
National Western Life Insurance Co., Class A		1,125	$	177
Navigators Group (The), Inc.*		5,126		262
OneBeacon Insurance Group Ltd., Class A		11,743		163
Phoenix (The) Cos., Inc.*		3,002		74
Platinum Underwriters Holdings Ltd.		16,992		782
Primerica, Inc.		22,915		688
Radian Group, Inc.		68,181		417
RLI Corp.		11,016		712
Safety Insurance Group, Inc.		6,596		305
SeaBright Holdings, Inc.		9,977		110
Selective Insurance Group, Inc.		28,605		551
State Auto Financial Corp.		7,556		113
Stewart Information Services Corp.		9,510		247
Symetra Financial Corp.		40,524		526
Tower Group, Inc.		17,867		318
United Fire Group, Inc.		10,820		236
Universal Insurance Holdings, Inc.		10,403		46
				15,965
Internet - 2.3%
1-800-Flowers.com, Inc., Class A*		11,889		44
Active Network (The), Inc.*		19,560		96
Ambient Corp.*		1,421		4
Angie’s List, Inc.*		18,101		217
Bankrate, Inc.*		23,681		295
Bazaarvoice, Inc.*		5,180		48
Blucora, Inc.*		20,573		323
Blue Nile, Inc.*		6,485		250
Boingo Wireless, Inc.*		7,553		57
Brightcove, Inc.*		2,662		24
BroadSoft, Inc.*		14,395		523
CafePress, Inc.*		2,223		13
Cogent Communications Group, Inc.		24,605		557
comScore, Inc.*		18,852		260
Constant Contact, Inc.*		16,232		231
DealerTrack Holdings, Inc.*		22,201		638
Dice Holdings, Inc.*		22,733		209
Envivio, Inc.*		3,757		6
ePlus, Inc.		2,267		94
ExactTarget, Inc.*		5,116		102
Global Sources Ltd.*		9,021		58
HealthStream, Inc.*		10,130		246
ICG Group, Inc.*		19,217		220
Internap Network Services Corp.*		26,977		187
IntraLinks Holdings, Inc.*		20,129		124
Ipass, Inc.*		25,227		46
Kayak Software Corp.*		1,726		69
Keynote Systems, Inc.		8,248		116
Limelight Networks, Inc.*		32,775		73
Lionbridge Technologies, Inc.*		29,242		118
Liquidity Services, Inc.*		12,360		505
magicJack VocalTec Ltd.*		7,753		141
MeetMe, Inc.*		9,021		32
ModusLink Global Solutions, Inc.*		20,063		58
Move, Inc.*		20,424		155
NIC, Inc.		33,766		552
Nutrisystem, Inc.		14,675		120
OpenTable, Inc.*		11,771		574
Orbitz Worldwide, Inc.*		10,632		29
Overstock.com, Inc.*		6,185		89
PC-Tel, Inc.		8,780		63
Perficient, Inc.*		17,549		207
QuinStreet, Inc.*		17,459		117
ReachLocal, Inc.*		5,023		65
RealNetworks, Inc.*		10,774		81
Responsys, Inc.*		18,323		109
Saba Software, Inc.*		15,251		133
Safeguard Scientifics, Inc.*		10,627		157
Sapient Corp.*		64,415		680
Shutterfly, Inc.*		18,677		558
Shutterstock, Inc.*		2,777		72
Sourcefire, Inc.*		15,421		728
Spark Networks, Inc.*		5,524		43
SPS Commerce, Inc.*		6,345		237
Stamps.com, Inc.*		7,199		181
support.com, Inc.*		24,205		101
Synacor, Inc.*		3,283		18
TechTarget, Inc.*		7,357		41
Towerstream Corp.*		22,837		74
Travelzoo, Inc.*		3,420		65
Trulia, Inc.*		3,724		60
United Online, Inc.		48,145		269
Unwired Planet, Inc.*		41,649		50
US Auto Parts Network, Inc.*		7,783		14
ValueClick, Inc.*		39,347		764
VASCO Data Security International, Inc.*		15,044		123
VirnetX Holding Corp.*		21,895		641
Vitacost.com, Inc.*		10,568		72

NORTHERN FUNDS QUARTERLY REPORT    13    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Internet - 2.3% continued
Vocus, Inc.*		10,535	$	183
Web.com Group, Inc.*		18,140		268
WebMD Health Corp.*		26,676		383
Websense, Inc.*		19,321		291
XO Group, Inc.*		12,980		121
Yelp, Inc.*		4,070		77
Zillow, Inc., Class A*		1,916		53
Zix Corp.*		32,581		91
				14,693
Investment Companies - 1.1%
Apollo Investment Corp.		105,252		880
BlackRock Kelso Capital Corp.		38,920		392
Capital Southwest Corp.		1,530		152
Fidus Investment Corp.		6,050		100
Fifth Street Finance Corp.		54,044		563
Firsthand Technology Value Fund, Inc.*		4,099		72
Gladstone Capital Corp.		10,663		87
Gladstone Investment Corp.		13,225		92
Golub Capital BDC, Inc.		7,766		124
GSV Capital Corp.*		10,969		92
Harris & Harris Group, Inc.*		15,622		52
Hercules Technology Growth Capital, Inc.		28,137		313
Home Loan Servicing Solutions Ltd.		14,752		279
KCAP Financial, Inc.		11,261		104
Main Street Capital Corp.		15,951		487
MCG Capital Corp.		39,414		181
Medallion Financial Corp.		9,431		111
MVC Capital, Inc.		12,573		153
New Mountain Finance Corp.		10,099		150
NGP Capital Resources Co.		11,777		85
OFS Capital Corp.*		3,478		48
PennantPark Investment Corp.		34,397		378
Prospect Capital Corp.		99,154		1,078
Solar Capital Ltd.		20,050		479
Solar Senior Capital Ltd.		5,105		95
Stellus Capital Investment Corp.		4,173		68
TCP Capital Corp.		2,787		41
THL Credit, Inc.		7,451		110
TICC Capital Corp.		22,296		226
Triangle Capital Corp.		14,495		369
				7,361
Iron/Steel - 0.2%
AK Steel Holding Corp.		70,929		326
Metals USA Holdings Corp.		5,814		102
Schnitzer Steel Industries, Inc., Class A		13,332		404
Shiloh Industries, Inc.		2,777		29
Universal Stainless & Alloy*		3,573		131
				992
Leisure Time - 0.6%
Arctic Cat, Inc.*		6,714		224
Black Diamond, Inc.*		11,164		92
Brunswick Corp.		46,592		1,356
Callaway Golf Co.		32,969		214
Interval Leisure Group, Inc.		20,492		397
Johnson Outdoors, Inc., Class A*		2,709		54
Life Time Fitness, Inc.*		22,357		1,100
Marine Products Corp.		4,958		28
Town Sports International Holdings, Inc.		11,925		127
WMS Industries, Inc.*		28,864		505
				4,097
Lodging - 0.4%
Ameristar Casinos, Inc.		17,201		451
Boyd Gaming Corp.*		29,922		199
Caesars Entertainment Corp.*		19,719		136
Marcus Corp.		10,392		130
Monarch Casino & Resort, Inc.*		4,433		48
Morgans Hotel Group Co.*		10,957		61
MTR Gaming Group, Inc.*		10,998		46
Orient-Express Hotels Ltd., Class A*		50,555		591
Red Lion Hotels Corp.*		7,021		55
Ryman Hospitality Properties		18,968		730
				2,447
Machinery - Construction & Mining - 0.1%
Astec Industries, Inc.		10,340		345
Hyster-Yale Materials Handling, Inc.		5,809		283
				628
Machinery - Diversified - 1.6%
Alamo Group, Inc.		3,634		119
Albany International Corp., Class A		14,257		323
Altra Holdings, Inc.		13,830		305
Applied Industrial Technologies, Inc.		21,994		924
Briggs & Stratton Corp.		25,350		534
Cascade Corp.		4,735		304
Chart Industries, Inc.*		15,599		1,040
Cognex Corp.		22,319		822
Columbus McKinnon Corp.*		9,961		164

EQUITY INDEX FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Machinery - Diversified - 1.6% continued
DXP Enterprises, Inc.*		4,481	$	220
Flow International Corp.*		23,050		81
Global Power Equipment Group, Inc.		8,852		152
Gorman-Rupp (The) Co.		7,797		233
Hurco Cos., Inc.*		3,218		74
Intermec, Inc.*		31,386		309
Intevac, Inc.*		11,286		52
iRobot Corp.*		14,160		265
Kadant, Inc.*		6,015		159
Lindsay Corp.		6,648		533
Middleby Corp.*		9,762		1,252
NACCO Industries, Inc., Class A		2,979		181
Robbins & Myers, Inc.		19,993		1,189
Sauer-Danfoss, Inc.		6,230		332
Tennant Co.		9,912		436
Twin Disc, Inc.		4,426		77
				10,080
Media - 0.7%
Beasley Broadcasting Group, Inc., Class A		2,154		11
Belo Corp., Class A		49,446		379
Central European Media Enterprises Ltd., Class A*		18,977		116
Courier Corp.		5,247		58
Crown Media Holdings, Inc., Class A*		16,923		31
Cumulus Media, Inc., Class A*		31,705		85
Daily Journal Corp.*		476		44
Demand Media, Inc.*		15,517		144
Digital Generation, Inc.*		14,103		153
Dolan (The) Co.*		16,787		65
E.W. Scripps (The) Co., Class A*		16,380		177
Entercom Communications Corp., Class A*		13,178		92
Entravision Communications Corp., Class A		21,156		35
Fisher Communications, Inc.		4,415		119
Journal Communications, Inc., Class A*		22,332		121
LIN TV Corp., Class A*		16,123		121
Martha Stewart Living Omnimedia, Class A*		13,411		33
McClatchy (The) Co., Class A*		28,194		92
Meredith Corp.		18,836		649
New York Times (The) Co., Class A*		71,094		606
Nexstar Broadcasting Group, Inc., Class A*		6,113		65
Outdoor Channel Holdings, Inc.		7,098		54
Saga Communications, Inc., Class A		1,749		81
Salem Communications Corp., Class A		4,931		27
Scholastic Corp.		13,684		405
Sinclair Broadcast Group, Inc., Class A		26,818		339
Value Line, Inc.		400		4
World Wrestling Entertainment, Inc., Class A		13,929		110
				4,216
Metal Fabrication/Hardware - 0.8%
A.M. Castle & Co.*		8,815		130
Ampco-Pittsburgh Corp.		4,494		90
CIRCOR International, Inc.		8,944		354
Dynamic Materials Corp.		6,649		92
Eastern (The) Co.		2,960		47
Furmanite Corp.*		18,603		100
Haynes International, Inc.		6,518		338
Kaydon Corp.		16,866		404
L.B. Foster Co., Class A		4,657		202
Mueller Industries, Inc.		10,376		519
Mueller Water Products, Inc., Class A		82,659		464
NN, Inc.*		8,400		77
Northwest Pipe Co.*		4,781		114
Olympic Steel, Inc.		4,924		109
Omega Flex, Inc.		1,590		20
RBC Bearings, Inc.*		11,591		580
Rexnord Corp.*		15,366		327
RTI International Metals, Inc.*		15,997		441
Sun Hydraulics Corp.		11,025		288
Worthington Industries, Inc.		27,218		707
				5,403
Mining - 1.1%
AMCOL International Corp.		13,289		408
Century Aluminum Co.*		26,099		229
Coeur d’Alene Mines Corp.*		46,904		1,154
General Moly, Inc.*		33,375		134
Globe Specialty Metals, Inc.		32,197		443
Gold Reserve, Inc.*		28,377		94
Gold Resource Corp.		15,892		245
Golden Minerals Co.*		16,884		77
Golden Star Resources Ltd.*		136,712		251
Hecla Mining Co.		148,884		868
Horsehead Holding Corp.*		23,484		240
Kaiser Aluminum Corp.		10,010		617
Materion Corp.		10,972		283
McEwen Mining, Inc.*		113,511		435

NORTHERN FUNDS QUARTERLY REPORT    15    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Mining - 1.1% continued
Midway Gold Corp.*		64,541	$	90
Noranda Aluminum Holding Corp.		17,622		108
Paramount Gold and Silver Corp.*		66,742		155
Revett Minerals, Inc.*		12,819		36
Stillwater Mining Co.*		60,335		771
United States Antimony Corp.*		25,670		45
United States Lime & Minerals, Inc.*		819		38
Uranerz Energy Corp.*		31,393		44
Uranium Energy Corp.*		45,367		116
US Silica Holdings, Inc.		6,053		101
Vista Gold Corp.*		31,164		84
				7,066
Miscellaneous Manufacturing - 2.0%
A.O. Smith Corp.		20,199		1,274
Actuant Corp., Class A		38,043		1,062
American Railcar Industries, Inc.		4,807		152
AZZ, Inc.		13,248		509
Barnes Group, Inc.		28,334		636
Blount International, Inc.*		26,036		412
Chase Corp.		3,258		61
CLARCOR, Inc.		26,193		1,251
EnPro Industries, Inc.*		10,828		443
Fabrinet*		11,693		154
Federal Signal Corp.*		32,529		248
FreightCar America, Inc.		5,987		134
GP Strategies Corp.*		7,661		158
Handy & Harman Ltd.*		2,288		34
Hexcel Corp.*		51,898		1,399
Hillenbrand, Inc.		28,711		649
John Bean Technologies Corp.		14,899		265
Koppers Holdings, Inc.		10,989		419
LSB Industries, Inc.*		9,991		354
Lydall, Inc.*		8,628		124
Movado Group, Inc.		9,316		286
Myers Industries, Inc.		17,804		270
NL Industries, Inc.		3,043		35
Park-Ohio Holdings Corp.*		4,531		97
PMFG, Inc.*		10,344		94
Proto Labs, Inc.*		2,582		102
Raven Industries, Inc.		19,006		501
Smith & Wesson Holding Corp.*		33,468		282
Standex International Corp.		6,511		334
STR Holdings, Inc.*		13,760		35
Sturm Ruger & Co., Inc.		10,071		457
Tredegar Corp.		12,298		251
Trimas Corp.*		16,945		474
				12,956
Office Furnishings - 0.4%
Compx International, Inc.		1,003		14
Herman Miller, Inc.		30,441		652
HNI Corp.		23,793		715
Interface, Inc.		30,737		494
Knoll, Inc.		25,489		392
Steelcase, Inc., Class A		40,007		510
				2,777
Oil & Gas - 3.1%
Abraxas Petroleum Corp.*		40,586		89
Adams Resources & Energy, Inc.		1,025		36
Alon USA Energy, Inc.		5,320		96
Apco Oil and Gas International, Inc.		4,760		59
Approach Resources, Inc.*		17,483		437
Arabian American Development Co.*		9,609		80
Berry Petroleum Co., Class A		27,320		917
Bill Barrett Corp.*		25,211		449
Bonanza Creek Energy, Inc.*		5,069		141
BPZ Resources, Inc.*		57,696		182
Callon Petroleum Co.*		20,009		94
Carrizo Oil & Gas, Inc.*		20,790		435
Clayton Williams Energy, Inc.*		3,000		120
Comstock Resources, Inc.*		25,379		384
Contango Oil & Gas Co.		6,528		277
Crimson Exploration, Inc.*		11,038		30
CVR Energy, Inc.*		8,741		427
Delek US Holdings, Inc.		8,649		219
Diamondback Energy, Inc.*		7,560		145
Emerald Oil, Inc.*		8,209		43
Endeavour International Corp.*		24,149		125
Energy XXI Bermuda Ltd.		41,135		1,324
EPL Oil & Gas, Inc.*		14,742		332
Evolution Petroleum Corp.*		8,526		69
Forest Oil Corp.*		61,926		414
FX Energy, Inc.*		29,340		121
Gastar Exploration Ltd.*		28,161		34
Goodrich Petroleum Corp.*		13,007		121
Gulfport Energy Corp.*		29,027		1,109
Halcon Resources Corp.*		58,730		406
Harvest Natural Resources, Inc.*		20,716		188

EQUITY INDEX FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Oil & Gas - 3.1% continued
Hercules Offshore, Inc.*		83,353	$	515
Isramco, Inc.*		504		52
Kodiak Oil & Gas Corp.*		137,402		1,216
Magnum Hunter Resources Corp.*		75,907		303
Matador Resources Co.*		7,218		59
McMoRan Exploration Co.*		52,918		849
Midstates Petroleum Co., Inc.*		13,643		94
Miller Energy Resources, Inc.*		16,070		64
Northern Oil and Gas, Inc.*		33,185		558
Oasis Petroleum, Inc.*		41,624		1,324
Panhandle Oil and Gas, Inc., Class A		3,505		99
Parker Drilling Co.*		63,239		291
PDC Energy, Inc.*		15,648		520
Penn Virginia Corp.		27,936		123
PetroQuest Energy, Inc.*		28,466		141
Quicksilver Resources, Inc.*		59,710		171
Resolute Energy Corp.*		26,326		214
Rex Energy Corp.*		22,304		290
Rosetta Resources, Inc.*		27,611		1,252
Sanchez Energy Corp.*		6,140		111
Stone Energy Corp.*		25,893		531
Swift Energy Co.*		22,683		349
Synergy Resources Corp.*		21,214		114
Triangle Petroleum Corp.*		23,054		138
Vaalco Energy, Inc.*		30,824		267
Vantage Drilling Co.*		100,800		184
W&T Offshore, Inc.		18,510		297
Warren Resources, Inc.*		36,707		103
Western Refining, Inc.		29,831		841
ZaZa Energy Corp.*		12,097		25
				19,998
Oil & Gas Services - 1.7%
Basic Energy Services, Inc.*		15,873		181
Bolt Technology Corp.		4,087		58
C&J Energy Services, Inc.*		23,343		501
Cal Dive International, Inc.*		47,671		83
Dawson Geophysical Co.*		4,119		109
Dril-Quip, Inc.*		20,935		1,529
Edgen Group, Inc.*		7,151		51
Exterran Holdings, Inc.*		33,769		740
Flotek Industries, Inc.*		25,568		312
Forbes Energy Services Ltd.*		7,180		18
Forum Energy Technologies, Inc.*		11,262		279
Geospace Technologies Corp.*		6,663		592
Global Geophysical Services, Inc.*		8,627		33
Gulf Island Fabrication, Inc.		7,896		190
Helix Energy Solutions Group, Inc.*		55,028		1,136
Hornbeck Offshore Services, Inc.*		18,421		633
ION Geophysical Corp.*		69,446		452
Key Energy Services, Inc.*		78,880		548
Lufkin Industries, Inc.		17,514		1,018
Matrix Service Co.*		14,015		161
Mitcham Industries, Inc.*		6,831		93
Natural Gas Services Group, Inc.*		6,540		107
Newpark Resources, Inc.*		46,114		362
Pioneer Energy Services Corp.*		32,061		233
T.G.C. Industries, Inc.		6,954		57
Targa Resources Corp.		15,079		797
Tesco Corp.*		15,914		181
TETRA Technologies, Inc.*		39,555		300
Thermon Group Holdings, Inc.*		7,465		168
Willbros Group, Inc.*		19,241		103
				11,025
Packaging & Containers - 0.2%
AEP Industries, Inc.*		2,125		126
Berry Plastics Group, Inc.*		15,287		246
Graphic Packaging Holding Co.*		87,516		565
UFP Technologies, Inc.*		2,598		47
				984
Pharmaceuticals - 3.0%
Achillion Pharmaceuticals, Inc.*		30,238		243
Acura Pharmaceuticals, Inc.*		5,615		13
Akorn, Inc.*		30,052		402
Alkermes PLC*		63,952		1,184
Amicus Therapeutics, Inc.*		17,069		46
Ampio Pharmaceuticals, Inc.*		13,428		48
Anacor Pharmaceuticals, Inc.*		8,953		47
Anika Therapeutics, Inc.*		5,642		56
Antares Pharma, Inc.*		54,441		207
Array BioPharma, Inc.*		60,965		227
Auxilium Pharmaceuticals, Inc.*		25,415		471
AVANIR Pharmaceuticals, Inc., Class A*		69,158		182
BioDelivery Sciences International, Inc.*		14,626		63
BioScrip, Inc.*		22,324		240
Biospecifics Technologies Corp.*		2,403		36
Cadence Pharmaceuticals, Inc.*		31,814		152
Cempra, Inc.*		2,237		14

NORTHERN FUNDS QUARTERLY REPORT    17    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Pharmaceuticals - 3.0% continued
ChemoCentryx, Inc.*		3,186	$	35
Clovis Oncology, Inc.*		7,004		112
Corcept Therapeutics, Inc.*		24,718		35
Cornerstone Therapeutics, Inc.*		4,456		21
Cumberland Pharmaceuticals, Inc.*		5,769		24
Cytori Therapeutics, Inc.*		33,905		96
Depomed, Inc.*		30,411		188
Derma Sciences, Inc.*		6,397		71
Durata Therapeutics, Inc.*		4,259		33
Dyax Corp.*		50,554		176
Endocyte, Inc.*		15,428		139
Furiex Pharmaceuticals, Inc.*		3,526		68
Hi-Tech Pharmacal Co., Inc.		5,462		191
Idenix Pharmaceuticals, Inc.*		45,868		223
Impax Laboratories, Inc.*		34,985		717
Infinity Pharmaceuticals, Inc.*		14,761		517
Ironwood Pharmaceuticals, Inc.*		39,637		440
Isis Pharmaceuticals, Inc.*		52,381		548
Jazz Pharmaceuticals PLC*		21,679		1,153
Keryx Biopharmaceuticals, Inc.*		37,957		99
Lannett Co., Inc.*		6,864		34
MannKind Corp.*		59,415		137
MAP Pharmaceuticals, Inc.*		14,311		225
Natural Grocers by Vitamin Cottage, Inc.*		3,522		67
Nature’s Sunshine Products, Inc.		6,152		89
Nektar Therapeutics*		60,480		448
Neogen Corp.*		12,297		557
Neurocrine Biosciences, Inc.*		35,201		263
Nutraceutical International Corp.		4,319		71
Obagi Medical Products, Inc.*		9,633		131
Omega Protein Corp.*		9,540		58
Opko Health, Inc.*		54,658		263
Optimer Pharmaceuticals, Inc.*		24,353		220
Orexigen Therapeutics, Inc.*		38,041		201
Osiris Therapeutics, Inc.*		8,368		75
Pacira Pharmaceuticals, Inc.*		9,495		166
Pain Therapeutics, Inc.*		19,915		54
Pernix Therapeutics Holdings*		4,427		34
Pharmacyclics, Inc.*		28,370		1,643
PharMerica Corp.*		15,310		218
Pozen, Inc.*		13,386		67
Progenics Pharmaceuticals, Inc.*		22,067		66
Questcor Pharmaceuticals, Inc.		28,041		749
Raptor Pharmaceutical Corp.*		28,511		167
Regulus Therapeutics, Inc.*		7,211		45
Repros Therapeutics, Inc.*		8,645		136
Rigel Pharmaceuticals, Inc.*		45,723		297
Sagent Pharmaceuticals, Inc.*		5,429		87
Santarus, Inc.*		28,106		309
Sciclone Pharmaceuticals, Inc.*		29,085		125
SIGA Technologies, Inc.*		18,091		47
Star Scientific, Inc.*		77,257		207
Sucampo Pharmaceuticals, Inc., Class A*		5,216		26
Supernus Pharmaceuticals, Inc.*		2,171		16
Synageva BioPharma Corp.*		5,350		248
Synergy Pharmaceuticals, Inc.*		22,337		118
Synta Pharmaceuticals Corp.*		20,813		188
Synutra International, Inc.*		7,803		36
Targacept, Inc.*		14,098		62
TESARO, Inc.*		2,499		42
Theravance, Inc.*		31,711		706
Threshold Pharmaceuticals, Inc.*		25,191		106
USANA Health Sciences, Inc.*		3,079		101
Vanda Pharmaceuticals, Inc.*		14,222		53
Ventrus Biosciences, Inc.*		6,077		13
ViroPharma, Inc.*		34,420		783
Vivus, Inc.*		52,046		698
XenoPort, Inc.*		21,853		170
Zogenix, Inc.*		26,191		35
				19,174
Pipelines - 0.2%
Crosstex Energy, Inc.		21,795		312
SemGroup Corp., Class A*		21,640		846
				1,158
Real Estate - 0.2%
AV Homes, Inc.*		4,700		67
Consolidated-Tomoka Land Co.		2,152		67
Forestar Group, Inc.*		18,557		321
HFF, Inc., Class A		17,525		261
Kennedy-Wilson Holdings, Inc.		22,150		310
Thomas Properties Group, Inc.		15,473		84
				1,110
Real Estate Investment Trusts - 8.0%
Acadia Realty Trust		25,951		651
AG Mortgage Investment Trust, Inc.		11,574		272
Agree Realty Corp.		5,897		158
Alexander’s, Inc.		1,108		367

EQUITY INDEX FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Real Estate Investment Trusts - 8.0% continued
American Assets Trust, Inc.		17,446	$	487
American Capital Mortgage Investment Corp.		19,025		448
American Realty Capital Trust, Inc.		81,629		943
AmREIT, Inc., Class B		1,521		26
Anworth Mortgage Asset Corp.		72,678		420
Apollo Commercial Real Estate Finance, Inc.		12,365		201
Apollo Residential Mortgage, Inc.		12,828		259
Ares Commercial Real Estate Corp.		3,685		61
ARMOUR Residential REIT, Inc.		155,316		1,005
Ashford Hospitality Trust, Inc.		28,662		301
Associated Estates Realty Corp.		26,042		420
Campus Crest Communities, Inc.		19,759		242
CapLease, Inc.		33,711		188
Capstead Mortgage Corp.		51,941		596
Cedar Realty Trust, Inc.		30,764		162
Chatham Lodging Trust		7,199		111
Chesapeake Lodging Trust		20,951		437
Colonial Properties Trust		45,690		976
Colony Financial, Inc.		27,431		535
Coresite Realty Corp.		10,494		290
Cousins Properties, Inc.		48,706		407
CreXus Investment Corp.		35,349		433
CubeSmart		64,030		933
CYS Investments, Inc.		91,152		1,077
DCT Industrial Trust, Inc.		127,495		827
DiamondRock Hospitality Co.		98,195		884
DuPont Fabros Technology, Inc.		32,031		774
Dynex Capital, Inc.		28,957		273
EastGroup Properties, Inc.		14,750		794
Education Realty Trust, Inc.		59,149		629
EPR Properties		24,353		1,123
Equity One, Inc.		28,599		601
Excel Trust, Inc.		17,041		216
FelCor Lodging Trust, Inc.*		64,214		300
First Industrial Realty Trust, Inc.*		51,285		722
First Potomac Realty Trust		26,239		324
Franklin Street Properties Corp.		38,256		471
Getty Realty Corp.		13,157		238
Gladstone Commercial Corp.		5,702		102
Glimcher Realty Trust		72,668		806
Government Properties Income Trust		22,341		536
Gramercy Capital Corp.*		22,236		65
Gyrodyne Co. of America, Inc.		660		48
Healthcare Realty Trust, Inc.		45,391		1,090
Hersha Hospitality Trust		90,792		454
Highwoods Properties, Inc.		40,320		1,349
Hudson Pacific Properties, Inc.		18,412		388
Inland Real Estate Corp.		40,946		343
Invesco Mortgage Capital, Inc.		60,146		1,186
Investors Real Estate Trust		48,257		421
iStar Financial, Inc.*		45,123		368
JAVELIN Mortgage Investment Corp.		3,877		74
Kite Realty Group Trust		36,014		201
LaSalle Hotel Properties		44,625		1,133
Lexington Realty Trust		68,750		718
LTC Properties, Inc.		15,966		562
Medical Properties Trust, Inc.		70,735		846
Monmouth Real Estate Investment Corp., Class A		20,812		216
National Health Investors, Inc.		12,779		722
New York Mortgage Trust, Inc.		26,565		168
NorthStar Realty Finance Corp.		85,445		602
Omega Healthcare Investors, Inc.		58,085		1,385
One Liberty Properties, Inc.		5,936		120
Parkway Properties, Inc.		11,308		158
Pebblebrook Hotel Trust		31,699		732
Pennsylvania Real Estate Investment Trust		29,365		518
PennyMac Mortgage Investment Trust		30,677		776
Potlatch Corp.		20,936		821
PS Business Parks, Inc.		9,624		625
RAIT Financial Trust		25,025		141
Ramco-Gershenson Properties Trust		23,681		315
Redwood Trust, Inc.		41,264		697
Resource Capital Corp.		53,083		297
Retail Opportunity Investments Corp.		27,293		351
RLJ Lodging Trust		55,710		1,079
Rouse Properties, Inc.		11,316		191
Sabra Health Care REIT, Inc.		19,567		425
Saul Centers, Inc.		3,982		170
Select Income REIT		6,034		149
Sovran Self Storage, Inc.		15,051		935
Spirit Realty Capital, Inc.		17,377		309
STAG Industrial, Inc.		15,876		285
Starwood Property Trust, Inc.		70,144		1,611
Strategic Hotels & Resorts, Inc.*		94,724		606
Summit Hotel Properties, Inc.		22,072		210
Sun Communities, Inc.		15,630		624
Sunstone Hotel Investors, Inc.*		71,482		766

NORTHERN FUNDS QUARTERLY REPORT    19    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Real Estate Investment Trusts - 8.0% continued
Terreno Realty Corp.		6,947	$	107
Two Harbors Investment Corp.		153,864		1,705
UMH Properties, Inc.		7,268		75
Universal Health Realty Income Trust		6,153		311
Urstadt Biddle Properties, Inc., Class A		12,708		250
Washington Real Estate Investment Trust		34,345		898
Western Asset Mortgage Capital Corp.		9,627		190
Whitestone REIT		7,112		100
Winthrop Realty Trust		15,048		166
				51,078
Retail - 6.2%
Aeropostale, Inc.*		42,425		552
AFC Enterprises, Inc.*		12,976		339
America’s Car-Mart, Inc.*		4,362		177
ANN, Inc.*		25,419		860
Asbury Automotive Group, Inc.*		14,637		469
Barnes & Noble, Inc.*		14,421		218
bebe stores, Inc.		17,889		71
Big 5 Sporting Goods Corp.		8,767		115
Biglari Holdings, Inc.*		623		243
BJ’s Restaurants, Inc.*		12,872		423
Bloomin’ Brands, Inc.*		9,728		152
Bob Evans Farms, Inc.		15,193		611
Body Central Corp.*		8,749		87
Bon-Ton Stores (The), Inc.		6,835		83
Bravo Brio Restaurant Group, Inc.*		10,120		136
Brown Shoe Co., Inc.		21,936		403
Buckle (The), Inc.		14,452		645
Buffalo Wild Wings, Inc.*		9,674		704
Cabela’s, Inc.*		24,327		1,016
Caribou Coffee Co., Inc.*		10,941		177
Carrols Restaurant Group, Inc.*		7,578		45
Casey’s General Stores, Inc.		19,855		1,054
Cash America International, Inc.		15,346		609
Casual Male Retail Group, Inc.*		20,636		87
Cato (The) Corp., Class A		14,497		398
CEC Entertainment, Inc.		9,592		318
Cheesecake Factory (The), Inc.		28,030		917
Children’s Place Retail Stores (The), Inc.*		12,667		561
Chuy’s Holdings, Inc.*		3,308		74
Citi Trends, Inc.*		7,387		102
Coinstar, Inc.*		16,310		848
Conn’s, Inc.*		8,799		270
Cracker Barrel Old Country Store, Inc.		9,972		641
Del Frisco’s Restaurant Group, Inc.*		2,860		45
Denny’s Corp.*		49,837		243
Destination Maternity Corp.		6,936		150
DineEquity, Inc.*		8,008		536
Domino’s Pizza, Inc.		30,149		1,313
Einstein Noah Restaurant Group, Inc.		3,305		40
Express, Inc.*		46,618		703
Ezcorp, Inc., Class A*		25,156		500
Fiesta Restaurant Group, Inc.*		8,561		131
Fifth & Pacific Cos., Inc.*		56,744		706
Finish Line (The), Inc., Class A		26,617		504
First Cash Financial Services, Inc.*		14,928		741
Five Below, Inc.*		5,730		184
Francesca’s Holdings Corp.*		18,245		474
Fred’s, Inc., Class A		19,571		260
Frisch’s Restaurants, Inc.		1,514		28
Genesco, Inc.*		12,800		704
Gordmans Stores, Inc.*		4,049		61
Group 1 Automotive, Inc.		11,955		741
Haverty Furniture Cos., Inc.		9,763		159
hhgregg, Inc.*		7,527		53
Hibbett Sports, Inc.*		13,736		724
Hot Topic, Inc.		22,582		218
HSN, Inc.		18,561		1,022
Ignite Restaurant Group, Inc.*		3,224		42
Jack in the Box, Inc.*		23,006		658
Jamba, Inc.*		41,058		92
Jos. A. Bank Clothiers, Inc.*		14,537		619
Kirkland’s, Inc.*		6,839		72
Krispy Kreme Doughnuts, Inc.*		31,835		299
Lithia Motors, Inc., Class A		11,419		427
Luby’s, Inc.*		9,647		65
Lumber Liquidators Holdings, Inc.*		14,361		759
MarineMax, Inc.*		9,914		89
Mattress Firm Holding Corp.*		5,617		138
Men’s Wearhouse (The), Inc.		26,561		828
Nathan’s Famous, Inc.*		1,286		43
New York & Co., Inc.*		13,308		51
Office Depot, Inc.*		148,538		487
OfficeMax, Inc.		45,657		446
Orchard Supply Hardware Stores Corp., Class A*		924		7
Pantry (The), Inc.*		12,042		146
Papa John’s International, Inc.*		9,382		515
PC Connection, Inc.		4,675		54

EQUITY INDEX FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Retail - 6.2% continued
Penske Automotive Group, Inc.		22,178	$	667
Pep Boys-Manny, Moe & Jack (The)		28,365		279
Perfumania Holdings, Inc.*		2,462		12
PetMed Express, Inc.		10,569		117
Pier 1 Imports, Inc.		50,621		1,012
Pricesmart, Inc.		9,514		733
RadioShack Corp.		52,395		111
Red Robin Gourmet Burgers, Inc.*		7,468		264
Regis Corp.		30,013		508
Restoration Hardware Holdings, Inc.*		2,914		98
Rite Aid Corp.*		350,465		477
Roundy’s, Inc.		9,869		44
Ruby Tuesday, Inc.*		33,809		266
rue21, Inc.*		8,327		236
Rush Enterprises, Inc., Class A*		17,101		353
Ruth’s Hospitality Group, Inc.*		18,024		131
Saks, Inc.*		57,268		602
Shoe Carnival, Inc.		7,322		150
Sonic Automotive, Inc., Class A		22,319		466
Sonic Corp.*		29,363		306
Stage Stores, Inc.		16,266		403
Stein Mart, Inc.		14,303		108
Steinway Musical Instruments, Inc.*		3,338		71
Susser Holdings Corp.*		5,694		196
Systemax, Inc.		5,355		52
Teavana Holdings, Inc.*		4,427		69
Texas Roadhouse, Inc.		32,507		546
Tilly’s, Inc., Class A*		4,406		59
Tuesday Morning Corp.*		21,334		133
Vera Bradley, Inc.*		10,251		257
Vitamin Shoppe, Inc.*		15,364		881
West Marine, Inc.*		7,404		80
Wet Seal (The), Inc., Class A*		46,992		130
Winmark Corp.		1,088		62
Zumiez, Inc.*		11,304		219
				39,580
Savings & Loans - 1.1%
Astoria Financial Corp.		45,729		428
Bank Mutual Corp.		24,942		107
BankFinancial Corp.		10,140		75
Beneficial Mutual Bancorp, Inc.*		17,026		162
Berkshire Hills Bancorp, Inc.		13,183		315
BofI Holding, Inc.*		5,640		157
Brookline Bancorp, Inc.		36,153		307
BSB Bancorp, Inc.*		3,955		48
Cape Bancorp, Inc.		5,773		50
Charter Financial Corp.		2,789		30
Clifton Savings Bancorp, Inc.		4,064		46
Dime Community Bancshares, Inc.		16,144		224
ESB Financial Corp.		5,331		74
ESSA Bancorp, Inc.		4,267		46
EverBank Financial Corp.		11,353		169
First Defiance Financial Corp.		4,818		92
First Federal Bancshares of Arkansas, Inc.*		1,686		16
First Financial Holdings, Inc.		8,670		113
First Financial Northwest, Inc.*		7,624		58
First Pactrust Bancorp, Inc.		5,643		69
Flushing Financial Corp.		16,728		257
Fox Chase Bancorp, Inc.		6,436		107
Heritage Financial Group, Inc.		4,866		67
Hingham Institution for Savings		616		39
Home Bancorp, Inc.*		3,234		59
Home Federal Bancorp, Inc.		7,739		96
HomeStreet, Inc.*		4,586		117
HomeTrust Bancshares, Inc.*		11,501		155
Investors Bancorp, Inc.		23,373		416
Kearny Financial Corp.		7,223		70
Meridian Interstate Bancorp, Inc.*		4,593		77
NASB Financial, Inc.*		1,994		43
Northfield Bancorp, Inc.		7,670		117
Northwest Bancshares, Inc.		50,615		614
OceanFirst Financial Corp.		7,836		108
Oritani Financial Corp.		24,199		371
Peoples Federal Bancshares, Inc.		2,845		49
Provident Financial Holdings, Inc.		5,214		91
Provident Financial Services, Inc.		31,598		471
Provident New York Bancorp		21,018		196
Rockville Financial, Inc.		15,480		200
Roma Financial Corp.		3,823		58
SI Financial Group, Inc.		5,002		58
Simplicity Bancorp, Inc.		4,279		64
Territorial Bancorp, Inc.		5,504		126
United Financial Bancorp, Inc.		10,746		169
Waterstone Financial, Inc.*		3,547		28
Westfield Financial, Inc.		13,209		96
WSFS Financial Corp.		3,894		165
				7,070

NORTHERN FUNDS QUARTERLY REPORT    21    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Semiconductors - 3.2%
Aeroflex Holding Corp.*		9,392	$	66
Alpha & Omega Semiconductor Ltd.*		8,530		72
Ambarella, Inc.*		3,275		36
Amkor Technology, Inc.*		38,040		162
ANADIGICS, Inc.*		39,811		100
Applied Micro Circuits Corp.*		34,106		286
ATMI, Inc.*		16,711		349
Axcelis Technologies, Inc.*		50,187		70
AXT, Inc.*		16,645		47
Brooks Automation, Inc.		35,653		287
Cabot Microelectronics Corp.		12,422		441
Cavium, Inc.*		25,939		809
Ceva, Inc.*		11,815		186
Cirrus Logic, Inc.*		33,647		975
Cohu, Inc.		11,866		129
Diodes, Inc.*		18,264		317
DSP Group, Inc.*		11,437		66
Emulex Corp.*		46,300		338
Entegris, Inc.*		71,496		656
Entropic Communications, Inc.*		46,846		248
Exar Corp.*		19,058		170
First Solar, Inc.*		31,399		970
FormFactor, Inc.*		26,200		119
GSI Technology, Inc.*		10,479		66
GT Advanced Technologies, Inc.*		61,203		185
Hittite Microwave Corp.*		16,383		1,017
Inphi Corp.*		12,498		120
Integrated Device Technology, Inc.*		74,636		545
Integrated Silicon Solution, Inc.*		13,954		126
Intermolecular, Inc.*		6,597		59
International Rectifier Corp.*		36,177		641
Intersil Corp., Class A		66,534		552
IXYS Corp.		12,816		117
Kopin Corp.*		33,390		111
Lattice Semiconductor Corp.*		60,916		243
LTX-Credence Corp.*		25,783		169
Mattson Technology, Inc.*		28,465		24
MaxLinear, Inc., Class A*		10,569		53
MEMC Electronic Materials, Inc.*		119,061		382
Micrel, Inc.		24,825		236
Microsemi Corp.*		46,314		974
Mindspeed Technologies, Inc.*		19,262		90
MIPS Technologies, Inc.*		24,432		191
MKS Instruments, Inc.		27,414		707
Monolithic Power Systems, Inc.		15,670		349
MoSys, Inc.*		16,895		59
Nanometrics, Inc.*		11,997		173
OmniVision Technologies, Inc.*		27,632		389
Peregrine Semiconductor Corp.*		3,119		48
Pericom Semiconductor Corp.*		12,592		101
Photronics, Inc.*		30,965		184
PLX Technology, Inc.*		22,704		82
Power Integrations, Inc.		14,868		500
QLogic Corp.*		51,232		498
QuickLogic Corp.*		23,701		51
Rambus, Inc.*		58,108		284
Richardson Electronics Ltd.		7,221		82
Rubicon Technology, Inc.*		9,007		55
Rudolph Technologies, Inc.*		16,662		224
Semtech Corp.*		34,034		985
Sigma Designs, Inc.*		17,448		90
Silicon Image, Inc.*		42,836		212
Supertex, Inc.		5,302		93
Tessera Technologies, Inc.		27,287		448
TriQuint Semiconductor, Inc.*		88,804		430
Ultra Clean Holdings*		11,326		56
Ultratech, Inc.*		13,751		513
Veeco Instruments, Inc.*		20,285		599
Volterra Semiconductor Corp.*		13,455		231
				20,243
Software - 3.8%
Accelrys, Inc.*		29,583		268
ACI Worldwide, Inc.*		20,738		906
Actuate Corp.*		25,583		143
Acxiom Corp.*		40,094		700
Advent Software, Inc.*		16,752		358
American Software, Inc., Class A		12,495		97
Aspen Technology, Inc.*		48,751		1,347
athenahealth, Inc.*		18,665		1,371
Audience, Inc.*		2,940		31
AVG Technologies N.V.*		4,627		73
Avid Technology, Inc.*		16,562		126
Blackbaud, Inc.		23,600		539
Bottomline Technologies, Inc.*		18,402		486
Callidus Software, Inc.*		20,006		91
CommVault Systems, Inc.*		23,287		1,623
Computer Programs & Systems, Inc.		5,900		297
Cornerstone OnDemand, Inc.*		17,661		521

EQUITY INDEX FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Software - 3.8% continued
CSG Systems International, Inc.*		18,065	$	328
Demandware, Inc.*		3,482		95
Digi International, Inc.*		13,610		129
Digital River, Inc.*		19,778		285
E2open, Inc.*		2,392		34
Ebix, Inc.		14,360		231
Eloqua, Inc.*		4,520		107
Envestnet, Inc.*		10,740		150
EPAM Systems, Inc.*		2,309		42
EPIQ Systems, Inc.		16,421		210
Epocrates, Inc.*		9,998		88
Exa Corp.*		2,197		21
Fair Isaac Corp.		17,886		752
FalconStor Software, Inc.*		16,087		37
Geeknet, Inc.*		2,358		38
Glu Mobile, Inc.*		26,111		60
Greenway Medical Technologies*		4,008		62
Guidance Software, Inc.*		7,707		91
Guidewire Software, Inc.*		10,662		317
Imperva, Inc.*		4,978		157
inContact, Inc.*		19,083		99
Infoblox, Inc.*		3,712		67
InnerWorkings, Inc.*		16,160		223
Innodata, Inc.*		10,790		41
Interactive Intelligence Group, Inc.*		7,870		264
Jive Software, Inc.*		8,703		126
Mantech International Corp., Class A		12,278		318
Market Leader, Inc.*		10,536		69
MedAssets, Inc.*		30,499		511
Medidata Solutions, Inc.*		11,672		457
MicroStrategy, Inc., Class A*		4,488		419
Monotype Imaging Holdings, Inc.		18,888		302
Omnicell, Inc.*		17,955		267
Parametric Technology Corp.*		62,272		1,402
PDF Solutions, Inc.*		12,278		169
Pegasystems, Inc.		9,284		211
Pervasive Software, Inc.*		6,277		56
Progress Software Corp.*		32,801		688
Proofpoint, Inc.*		3,070		38
PROS Holdings, Inc.*		11,158		204
QAD, Inc., Class A		3,181		46
QLIK Technologies, Inc.*		44,549		968
Quality Systems, Inc.		20,953		364
RealPage, Inc.*		18,958		409
Rosetta Stone, Inc.*		5,910		73
Sapiens International Corp. N.V.*		6,631		26
Schawk, Inc.		5,688		75
SciQuest, Inc.*		9,222		146
Seachange International, Inc.*		14,844		144
SS&C Technologies Holdings, Inc.*		17,919		414
Synchronoss Technologies, Inc.*		14,244		300
SYNNEX Corp.*		13,678		470
Take-Two Interactive Software, Inc.*		41,015		452
Tangoe, Inc.*		16,024		190
Tyler Technologies, Inc.*		15,660		759
Ultimate Software Group, Inc.*		13,867		1,309
Verint Systems, Inc.*		11,216		329
				24,616
Storage/Warehousing - 0.1%
Mobile Mini, Inc.*		20,271		422
Wesco Aircraft Holdings, Inc.*		9,244		122
				544
Telecommunications - 3.1%
8x8, Inc.*		35,948		266
ADTRAN, Inc.		33,283		650
Anaren, Inc.*		7,212		140
Anixter International, Inc.		14,645		937
Arris Group, Inc.*		58,856		879
Aruba Networks, Inc.*		58,359		1,211
Atlantic Tele-Network, Inc.		4,882		179
Aviat Networks, Inc.*		30,663		101
Aware, Inc.		5,567		31
Black Box Corp.		8,916		217
CalAmp Corp.*		14,963		125
Calix, Inc.*		20,105		155
Cbeyond, Inc.*		13,467		122
Ciena Corp.*		51,723		812
Cincinnati Bell, Inc.*		103,143		565
Comtech Telecommunications Corp.		9,659		245
Comverse Technology, Inc.		115,261		443
Comverse, Inc.*		11,721		334
Consolidated Communications Holdings, Inc.		20,561		327
DigitalGlobe, Inc.*		18,990		464
EarthLink, Inc.		56,274		364
Extreme Networks, Inc.*		48,112		175
Fairpoint Communications, Inc.*		10,645		85
Finisar Corp.*		47,603		776

NORTHERN FUNDS QUARTERLY REPORT    23    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Telecommunications - 3.1% continued
General Communication, Inc., Class A*		19,403	$	186
GeoEye, Inc.*		7,679		236
Globecomm Systems, Inc.*		11,968		135
Harmonic, Inc.*		62,354		316
Hawaiian Telcom Holdco, Inc.*		5,508		107
HickoryTech Corp.		6,444		63
IDT Corp., Class B		8,099		77
Infinera Corp.*		56,536		329
InterDigital, Inc.		21,372		878
Iridium Communications, Inc.*		25,489		172
Ixia*		21,658		368
KVH Industries, Inc.*		7,406		104
Leap Wireless International, Inc.*		27,262		181
LogMeIn, Inc.*		11,216		251
Loral Space & Communications, Inc.		5,584		305
Lumos Networks Corp.		8,221		82
Neonode, Inc.*		10,946		53
NeoPhotonics Corp.*		9,308		53
NETGEAR, Inc.*		19,841		782
Neutral Tandem, Inc.		13,582		35
NTELOS Holdings Corp.		7,308		96
Numerex Corp., Class A*		5,054		66
Oclaro, Inc.*		35,137		55
Oplink Communications, Inc.*		9,787		153
ORBCOMM, Inc.*		18,206		71
Parkervision, Inc.*		42,991		87
Plantronics, Inc.		22,184		818
Preformed Line Products Co.		1,238		74
Premiere Global Services, Inc.*		25,624		251
Primus Telecommunications Group, Inc.		6,525		71
Procera Networks, Inc.*		9,834		182
RF Micro Devices, Inc.*		145,019		650
RigNet, Inc.*		6,472		132
Ruckus Wireless, Inc.*		4,398		99
Shenandoah Telecommunications Co.		12,815		196
ShoreTel, Inc.*		25,541		108
Sonus Networks, Inc.*		114,402		195
Sycamore Networks, Inc.		9,898		22
Symmetricom, Inc.*		21,197		122
Telenav, Inc.*		8,841		71
Tellabs, Inc.		191,465		437
Telular Corp.		8,942		85
Tessco Technologies, Inc.		2,569		57
Ubiquiti Networks, Inc.		5,023		61
USA Mobility, Inc.		11,506		134
ViaSat, Inc.*		19,597		762
Vonage Holdings Corp.*		80,962		192
Westell Technologies, Inc., Class A*		23,237		43
				19,606
Textiles - 0.2%
Culp, Inc.		4,130		62
G&K Services, Inc., Class A		10,128		346
UniFirst Corp.		7,562		554
				962
Toys, Games & Hobbies - 0.1%
JAKKS Pacific, Inc.		11,218		140
LeapFrog Enterprises, Inc.*		27,061		234
				374
Transportation - 1.7%
Air Transport Services Group, Inc.*		29,856		120
Arkansas Best Corp.		12,516		119
Atlas Air Worldwide Holdings, Inc.*		13,804		612
Bristow Group, Inc.		18,556		996
CAI International, Inc.*		7,608		167
Celadon Group, Inc.		10,428		188
Echo Global Logistics, Inc.*		7,719		139
Forward Air Corp.		15,237		533
Frontline Ltd.*		27,384		89
GasLog Ltd.		12,245		152
Genco Shipping & Trading Ltd.*		16,002		56
Genesee & Wyoming, Inc., Class A*		23,066		1,755
Gulfmark Offshore, Inc., Class A		14,035		483
Heartland Express, Inc.		25,683		336
Hub Group, Inc., Class A*		19,282		648
International Shipholding Corp.		2,688		44
Knight Transportation, Inc.		30,349		444
Knightsbridge Tankers Ltd.		12,025		63
Marten Transport Ltd.		7,875		145
Nordic American Tankers Ltd.		27,440		240
Old Dominion Freight Line, Inc.*		37,080		1,271
Pacer International, Inc.*		20,426		80
Patriot Transportation Holding, Inc.*		3,040		86
PHI, Inc. (Non Voting)*		7,080		237
Quality Distribution, Inc.*		11,458		69
Rand Logistics, Inc.*		8,415		55
Roadrunner Transportation Systems, Inc.*		7,649		139
Saia, Inc.*		8,374		194

EQUITY INDEX FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.5% continued
Transportation - 1.7% continued
Scorpio Tankers, Inc.*		19,832	$	141
Ship Finance International Ltd.		25,660		427
Swift Transportation Co.*		41,943		382
Teekay Tankers Ltd., Class A		33,398		97
Universal Truckload Services, Inc.		2,687		49
Werner Enterprises, Inc.		23,111		501
XPO Logistics, Inc.*		9,238		160
				11,217
Trucking & Leasing - 0.2%
Amerco, Inc.		4,538		575
Greenbrier Cos., Inc.*		11,750		190
TAL International Group, Inc.		15,291		556
Textainer Group Holdings Ltd.		7,040		222
Willis Lease Finance Corp.*		2,670		38
				1,581
Water - 0.3%
American States Water Co.		9,909		475
Artesian Resources Corp., Class A		3,874		87
California Water Service Group		21,956		403
Connecticut Water Service, Inc.		5,825		174
Consolidated Water Co. Ltd.		7,393		55
Middlesex Water Co.		8,157		160
PICO Holdings, Inc.*		11,809		239
SJW Corp.		7,795		207
York Water Co.		6,909		121
				1,921
Total Common Stocks (Cost $542,706)				625,835
OTHER - 0.0%(1)
Escrow DLB Oil & Gas*		1,200		—
Escrow Gerber Scientific, Inc.*		9,016		—
Escrow Position PetroCorp.*		420		—
Total Other (Cost $ — )				—
RIGHTS - 0.0%
Pharmaceuticals - 0.0%
Allos Therapeutics, Inc.(2) *		39,794		—
Savings & Loans - 0.0%
CSF Holdings, Inc.*		6,212		—
Total Rights (Cost $ — )				—
	NUMBER OF WARRANTS		VALUE (000S)
WARRANTS - 0.0%
Magnum Hunter Resources Corp., Exp. 10/14/13, Strike $10.50*		3,855	$	—
Total Warrants (Cost $ — )				—
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 1.7%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(3)(4)		10,622,300	$	10,622
Total Investment Companies (Cost $10,622)				10,622
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.4%
U.S. Treasury Bill,
0.14%, 4/25/13(5)	$	2,555	$	2,554
Total Short-Term Investments (Cost $2,554)				2,554
Total Investments - 99.6% (Cost $555,882)				639,011
Other Assets less Liabilities - 0.4%				2,649
NET ASSETS - 100.0%			$	641,660

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

(2) Security has been deemed worthless by the Northern Trust Global Investments Pricing and Valuation Committee.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 $10,877,000 with net sales of approximately $255,000 during the nine months ended December 31, 2012.

NORTHERN FUNDS QUARTERLY REPORT    25    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

SMALL CAP INDEX FUND continued

(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 December 31, 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 Index		199	$	16,847		Long		3/13	$	468

At December 31, 2012, the industry sectors for the Small Cap Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		14.0	%
Consumer Staples		3.5
Energy		6.1
Financials		22.8
Health Care		12.1
Industrials		15.5
Information Technology		16.6
Materials		5.3
Telecommunication Services		0.7
Utilities		3.4
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 strategy).

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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	87,676	$	—		$	—	$	87,676
Consumer Staples		22,005		—			—		22,005
Energy		37,859		—			—		37,859
Financials		142,873		—			—		142,873
Health Care		75,727		—			—		75,727
Industrials		97,146		14			—		97,160
Information Technology		103,989		—			—		103,989
Materials		33,135		—			—		33,135
Telecommunication Services		4,387		—			—		4,387
Utilities		21,024		—			—		21,024
Warrants
Energy		—		—	*		—		—
Investment Companies		10,622		—			—		10,622
Short-Term Investments		—		2,554			—		2,554
Total Investments	$	636,443	$	2,568		$	—	$	639,011
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	468	$	—		$	—	$	468

* Amount rounds to less than one thousand.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, the Fund had transfers from Level 1 to Level 2 as disclosed below:

Transfers from Level 1 to Level 2

Industry	Value (000S)		Reason
Common Stocks
Office Furnishings	$	14	Valuations at 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	563,848
Gross tax appreciation of investments	$	131,318
Gross tax depreciation of investments		(56,155	)
Net tax appreciation of investments	$	75,163

EQUITY INDEX FUNDS    26    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0%
Advertising - 0.1%
Interpublic Group of (The) Cos., Inc.		139,375	$	1,536
Omnicom Group, Inc.		84,536		4,223
				5,759
Aerospace/Defense - 1.7%
Boeing (The) Co.		216,115		16,286
General Dynamics Corp.		105,563		7,312
L-3 Communications Holdings, Inc.		30,211		2,315
Lockheed Martin Corp.		85,563		7,897
Northrop Grumman Corp.		77,935		5,267
Raytheon Co.		104,655		6,024
Rockwell Collins, Inc.		44,952		2,615
United Technologies Corp.		268,501		22,020
				69,736
Agriculture - 1.9%
Altria Group, Inc.		645,015		20,266
Archer-Daniels-Midland Co.		209,369		5,735
Lorillard, Inc.		41,032		4,787
Philip Morris International, Inc.		531,952		44,493
Reynolds American, Inc.		103,503		4,288
				79,569
Airlines - 0.1%
Southwest Airlines Co.		234,942		2,406
Apparel - 0.6%
Coach, Inc.		90,653		5,032
NIKE, Inc., Class B		232,272		11,985
Ralph Lauren Corp.		19,638		2,944
VF Corp.		27,964		4,222
				24,183
Auto Manufacturers - 0.5%
Ford Motor Co.		1,215,946		15,746
PACCAR, Inc.		112,005		5,064
				20,810
Auto Parts & Equipment - 0.3%
BorgWarner, Inc.*		37,189		2,663
Delphi Automotive PLC*		93,977		3,595
Goodyear Tire & Rubber (The) Co.*		77,583		1,071
Johnson Controls, Inc.		217,290		6,671
				14,000
Banks - 7.1%
Bank of America Corp.		3,431,855		39,810
Bank of New York Mellon (The) Corp.		372,047		9,562
BB&T Corp.		222,252		6,470
Capital One Financial Corp.		185,347		10,737
Citigroup, Inc.		933,805		36,941
Comerica, Inc.		61,048		1,852
Fifth Third Bancorp		285,918		4,343
First Horizon National Corp.		80,085		794
First Horizon National Corp. - (Fractional Shares)*		495,018		—
Goldman Sachs Group (The), Inc.		140,678		17,945
Huntington Bancshares, Inc.		274,432		1,754
JPMorgan Chase & Co.		1,210,452		53,224
KeyCorp		297,763		2,507
M&T Bank Corp.		38,686		3,809
Morgan Stanley		439,482		8,403
Northern Trust Corp.(1) (2)		71,137		3,568
PNC Financial Services Group, Inc.		168,343		9,816
Regions Financial Corp.		452,640		3,223
State Street Corp.		148,031		6,959
SunTrust Banks, Inc.		171,443		4,860
U.S. Bancorp		598,455		19,115
Wells Fargo & Co.		1,558,428		53,267
Zions Bancorporation		58,762		1,257
				300,216
Beverages - 2.3%
Beam, Inc.		50,417		3,080
Brown-Forman Corp., Class B		48,076		3,041
Coca-Cola (The) Co.		1,228,008		44,515
Coca-Cola Enterprises, Inc.		86,181		2,734
Constellation Brands, Inc., Class A*		48,251		1,708
Dr Pepper Snapple Group, Inc.		66,047		2,918
Molson Coors Brewing Co., Class B		49,204		2,105
Monster Beverage Corp.*		47,489		2,511
PepsiCo, Inc.		492,746		33,719
				96,331
Biotechnology - 1.6%
Alexion Pharmaceuticals, Inc.*		61,882		5,805
Amgen, Inc.		244,232		21,082
Biogen Idec, Inc.*		75,427		11,063
Celgene Corp.*		134,674		10,601
Gilead Sciences, Inc.*		241,223		17,718
Life Technologies Corp.*		54,868		2,693
				68,962

NORTHERN FUNDS QUARTERLY REPORT    1    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Building Materials - 0.0%
Masco Corp.		112,239	$	1,870
Chemicals - 2.4%
Air Products & Chemicals, Inc.		67,856		5,701
Airgas, Inc.		22,458		2,050
CF Industries Holdings, Inc.		20,023		4,068
Dow Chemical (The) Co.		382,112		12,350
E.I. du Pont de Nemours & Co.		296,952		13,354
Eastman Chemical Co.		48,497		3,300
Ecolab, Inc.		84,239		6,057
FMC Corp.		44,014		2,576
International Flavors & Fragrances, Inc.		26,305		1,750
LyondellBasell Industries N.V., Class A		120,535		6,882
Monsanto Co.		170,198		16,109
Mosaic (The) Co.		87,884		4,977
PPG Industries, Inc.		48,838		6,610
Praxair, Inc.		94,645		10,359
Sherwin-Williams (The) Co.		27,245		4,191
Sigma-Aldrich Corp.		38,275		2,816
				103,150
Coal - 0.1%
CONSOL Energy, Inc.		72,340		2,322
Peabody Energy Corp.		86,369		2,298
				4,620
Commercial Services - 1.2%
ADT (The) Corp.		74,232		3,451
Apollo Group, Inc., Class A*		31,422		657
Automatic Data Processing, Inc.		154,137		8,787
Equifax, Inc.		37,684		2,039
H&R Block, Inc.		85,407		1,586
Iron Mountain, Inc.		53,930		1,675
Mastercard, Inc., Class A		33,992		16,700
Moody’s Corp.		61,976		3,119
Paychex, Inc.		103,400		3,220
Quanta Services, Inc.*		68,633		1,873
Robert Half International, Inc.		44,541		1,417
SAIC, Inc.		91,608		1,037
Total System Services, Inc.		50,617		1,084
Western Union (The) Co.		189,394		2,578
				49,223
Computers - 7.0%
Accenture PLC, Class A		203,311		13,520
Apple, Inc.		299,538		159,663
Cognizant Technology Solutions Corp., Class A*		95,619		7,081
Computer Sciences Corp.		49,177		1,969
Dell, Inc.		463,134		4,692
EMC Corp.*		671,039		16,977
Hewlett-Packard Co.		624,725		8,902
International Business Machines Corp.		338,204		64,783
NetApp, Inc.*		113,979		3,824
SanDisk Corp.*		76,761		3,344
Seagate Technology PLC		107,049		3,263
Teradata Corp.*		53,872		3,334
Western Digital Corp.		69,623		2,958
				294,310
Cosmetics/Personal Care - 1.9%
Avon Products, Inc.		137,831		1,979
Colgate-Palmolive Co.		141,513		14,794
Estee Lauder (The) Cos., Inc., Class A		76,462		4,577
Procter & Gamble (The) Co.		870,562		59,103
				80,453
Distribution/Wholesale - 0.3%
Fastenal Co.		85,736		4,003
Fossil, Inc.*		17,355		1,616
Genuine Parts Co.		49,225		3,130
W.W. Grainger, Inc.		19,155		3,876
				12,625
Diversified Financial Services - 2.3%
American Express Co.		309,895		17,813
Ameriprise Financial, Inc.		65,493		4,102
BlackRock, Inc.		39,927		8,253
Charles Schwab (The) Corp.		348,315		5,002
CME Group, Inc.		97,132		4,926
Discover Financial Services		160,630		6,192
E*TRADE Financial Corp.*		82,415		738
Franklin Resources, Inc.		43,829		5,509
IntercontinentalExchange, Inc.*		23,320		2,887
Invesco Ltd.		140,224		3,659
Legg Mason, Inc.		37,445		963
NASDAQ OMX Group (The), Inc.		37,640		941
NYSE Euronext		76,849		2,424
SLM Corp.		147,405		2,525
T. Rowe Price Group, Inc.		81,059		5,279
Visa, Inc., Class A		166,000		25,162
				96,375

EQUITY INDEX FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Electric - 3.0%
AES (The) Corp.		194,409	$	2,080
Ameren Corp.		77,429		2,379
American Electric Power Co., Inc.		155,038		6,617
CMS Energy Corp.		83,266		2,030
Consolidated Edison, Inc.		93,214		5,177
Dominion Resources, Inc.		182,950		9,477
DTE Energy Co.		54,734		3,287
Duke Energy Corp.		224,360		14,314
Edison International		103,783		4,690
Entergy Corp.		56,877		3,626
Exelon Corp.		271,398		8,071
FirstEnergy Corp.		132,906		5,550
Integrys Energy Group, Inc.		24,553		1,282
NextEra Energy, Inc.		134,693		9,319
Northeast Utilities		100,498		3,928
NRG Energy, Inc.		102,217		2,350
Pepco Holdings, Inc.		73,869		1,449
PG&E Corp.		136,774		5,496
Pinnacle West Capital Corp.		35,174		1,793
PPL Corp.		184,384		5,279
Public Service Enterprise Group, Inc.		161,273		4,935
SCANA Corp.		41,534		1,896
Southern (The) Co.		278,812		11,936
TECO Energy, Inc.		65,295		1,094
Wisconsin Energy Corp.		73,282		2,700
Xcel Energy, Inc.		155,645		4,157
				124,912
Electrical Components & Equipment - 0.3%
Emerson Electric Co.		230,907		12,229
Molex, Inc.		43,960		1,201
				13,430
Electronics - 1.1%
Agilent Technologies, Inc.		110,955		4,542
Amphenol Corp., Class A		51,368		3,323
FLIR Systems, Inc.		48,575		1,084
Garmin Ltd.		34,679		1,416
Honeywell International, Inc.		249,435		15,832
Jabil Circuit, Inc.		60,583		1,169
PerkinElmer, Inc.		36,040		1,144
TE Connectivity Ltd.		134,437		4,990
Thermo Fisher Scientific, Inc.		114,711		7,316
Tyco International Ltd.		148,287		4,337
Waters Corp.*		27,617		2,406
				47,559
Engineering & Construction - 0.1%
Fluor Corp.		53,374		3,135
Jacobs Engineering Group, Inc.*		41,426		1,764
				4,899
Entertainment - 0.0%
International Game Technology		84,902		1,203
Environmental Control - 0.2%
Republic Services, Inc.		95,220		2,793
Stericycle, Inc.*		27,469		2,562
Waste Management, Inc.		138,708		4,680
				10,035
Food - 1.8%
Campbell Soup Co.		56,406		1,968
ConAgra Foods, Inc.		130,094		3,838
Dean Foods Co.*		57,693		952
General Mills, Inc.		205,729		8,313
H.J. Heinz Co.		102,578		5,917
Hershey (The) Co.		47,664		3,442
Hormel Foods Corp.		41,911		1,308
J.M. Smucker (The) Co.		34,481		2,974
Kellogg Co.		78,581		4,389
Kraft Foods Group, Inc.		189,018		8,595
Kroger (The) Co.		163,213		4,247
McCormick & Co., Inc. (Non Voting)		41,976		2,667
Mondelez International, Inc., Class A		566,214		14,421
Safeway, Inc.		77,498		1,402
Sysco Corp.		186,530		5,905
Tyson Foods, Inc., Class A		91,596		1,777
Whole Foods Market, Inc.		55,153		5,037
				77,152
Forest Products & Paper - 0.2%
International Paper Co.		140,385		5,593
MeadWestvaco Corp.		55,668		1,774
				7,367
Gas - 0.3%
AGL Resources, Inc.		37,171		1,486
CenterPoint Energy, Inc.		135,542		2,609
NiSource, Inc.		98,686		2,456
Sempra Energy		71,991		5,107
				11,658

NORTHERN FUNDS QUARTERLY REPORT    3    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Hand/Machine Tools - 0.1%
Snap-on, Inc.		18,457	$	1,458
Stanley Black & Decker, Inc.		53,452		3,954
				5,412
Healthcare - Products - 1.8%
Baxter International, Inc.		174,923		11,660
Becton, Dickinson and Co.		62,764		4,908
Boston Scientific Corp.*		438,344		2,512
C.R. Bard, Inc.		24,159		2,361
CareFusion Corp.*		71,237		2,036
Covidien PLC		150,717		8,702
DENTSPLY International, Inc.		45,800		1,814
Edwards Lifesciences Corp.*		36,601		3,300
Hospira, Inc.*		52,717		1,647
Intuitive Surgical, Inc.*		12,688		6,222
Medtronic, Inc.		322,074		13,212
Patterson Cos., Inc.		26,501		907
St. Jude Medical, Inc.		98,181		3,548
Stryker Corp.		91,883		5,037
Varian Medical Systems, Inc.*		35,002		2,459
Zimmer Holdings, Inc.		55,051		3,670
				73,995
Healthcare - Services - 1.1%
Aetna, Inc.		106,813		4,945
Cigna Corp.		90,693		4,848
Coventry Health Care, Inc.		42,897		1,923
DaVita HealthCare Partners, Inc.*		26,496		2,929
Humana, Inc.		50,198		3,445
Laboratory Corp. of America Holdings*		29,998		2,598
Quest Diagnostics, Inc.		50,963		2,970
Tenet Healthcare Corp.*		33,990		1,104
UnitedHealth Group, Inc.		325,400		17,650
WellPoint, Inc.		96,506		5,879
				48,291
Holding Companies - Diversified - 0.0%
Leucadia National Corp.		63,481		1,510
Home Builders - 0.1%
D.R. Horton, Inc.		87,981		1,740
Lennar Corp., Class A		52,535		2,032
PulteGroup, Inc.*		108,221		1,965
				5,737
Home Furnishings - 0.1%
Harman International Industries, Inc.		21,709		969
Whirlpool Corp.		24,814		2,525
				3,494
Household Products/Wares - 0.3%
Avery Dennison Corp.		31,610		1,104
Clorox (The) Co.		41,807		3,061
Kimberly-Clark Corp.		124,551		10,516
				14,681
Housewares - 0.1%
Newell Rubbermaid, Inc.		91,724		2,043
Insurance - 3.9%
ACE Ltd.		108,373		8,648
Aflac, Inc.		148,865		7,908
Allstate (The) Corp.		152,828		6,139
American International Group, Inc.*		470,358		16,604
American International Group, Inc. - (Fractional Shares)*		81,909		—
Aon PLC		101,488		5,643
Assurant, Inc.		24,457		849
Berkshire Hathaway, Inc., Class B*		580,848		52,102
Chubb (The) Corp.		83,474		6,287
Cincinnati Financial Corp.		47,090		1,844
Genworth Financial, Inc., Class A*		155,657		1,169
Hartford Financial Services Group, Inc.		139,089		3,121
Lincoln National Corp.		87,572		2,268
Loews Corp.		99,550		4,057
Marsh & McLennan Cos., Inc.		172,813		5,957
MetLife, Inc.		347,522		11,447
Principal Financial Group, Inc.		87,914		2,507
Progressive (The) Corp.		178,107		3,758
Prudential Financial, Inc.		148,237		7,905
Torchmark Corp.		30,304		1,566
Travelers (The) Cos., Inc.		121,492		8,726
Unum Group		86,509		1,801
XL Group PLC		95,095		2,383
				162,689
Internet - 3.3%
Amazon.com, Inc.*		115,351		28,969
eBay, Inc.*		370,828		18,920
Expedia, Inc.		30,065		1,848
F5 Networks, Inc.*		25,192		2,447
Google, Inc., Class A*		84,752		60,121
Netflix, Inc.*		17,692		1,641
priceline.com, Inc.*		15,908		9,882

EQUITY INDEX FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Internet - 3.3% continued
Symantec Corp.*		220,759	$	4,153
TripAdvisor, Inc.*		34,707		1,456
VeriSign, Inc.*		49,533		1,923
Yahoo!, Inc.*		331,217		6,591
				137,951
Iron/Steel - 0.2%
Allegheny Technologies, Inc.		34,033		1,033
Cliffs Natural Resources, Inc.		45,531		1,756
Nucor Corp.		101,381		4,377
United States Steel Corp.		46,246		1,104
				8,270
Leisure Time - 0.2%
Carnival Corp.		142,225		5,230
Harley-Davidson, Inc.		72,420		3,537
				8,767
Lodging - 0.3%
Marriott International, Inc., Class A		78,322		2,919
Marriott International, Inc., Class A - (Fractional Shares)*		83,178		—
Starwood Hotels & Resorts Worldwide, Inc.		62,707		3,597
Wyndham Worldwide Corp.		44,299		2,357
Wynn Resorts Ltd.		25,156		2,830
				11,703
Machinery - Construction & Mining - 0.5%
Caterpillar, Inc.		208,255		18,655
Joy Global, Inc.		33,756		2,153
				20,808
Machinery - Diversified - 0.7%
Cummins, Inc.		56,291		6,099
Deere & Co.		124,430		10,753
Flowserve Corp.		15,902		2,335
Rockwell Automation, Inc.		44,365		3,726
Roper Industries, Inc.		31,112		3,469
Xylem, Inc.		60,008		1,626
				28,008
Media - 3.3%
Cablevision Systems Corp., Class A (Registered)		68,067		1,017
CBS Corp., Class B (Non Voting)		187,819		7,147
Comcast Corp., Class A		845,995		31,623
DIRECTV*		192,446		9,653
Discovery Communications, Inc., Class A*		76,077		4,829
Gannett Co., Inc.		73,684		1,327
McGraw-Hill (The) Cos., Inc.		88,237		4,824
News Corp., Class A		642,038		16,398
Scripps Networks Interactive, Inc., Class A		27,817		1,611
Time Warner Cable, Inc.		96,089		9,339
Time Warner, Inc.		301,388		14,415
Viacom, Inc., Class B		147,146		7,761
Walt Disney (The) Co.		564,212		28,092
Washington Post (The) Co., Class B		1,400		511
				138,547
Metal Fabrication/Hardware - 0.2%
Precision Castparts Corp.		46,441		8,797
Mining - 0.5%
Alcoa, Inc.		338,419		2,938
Freeport-McMoRan Copper & Gold, Inc.		301,711		10,319
Newmont Mining Corp.		157,664		7,322
Titanium Metals Corp.		24,194		399
Vulcan Materials Co.		41,583		2,164
				23,142
Miscellaneous Manufacturing - 3.2%
3M Co.		202,599		18,811
Danaher Corp.		185,586		10,374
Dover Corp.		57,039		3,748
Eaton Corp. PLC		147,213		7,979
General Electric Co.		3,339,099		70,088
Illinois Tool Works, Inc.		135,739		8,254
Ingersoll-Rand PLC		89,124		4,274
Leggett & Platt, Inc.		44,238		1,204
Pall Corp.		35,401		2,133
Parker Hannifin Corp.		47,524		4,043
Pentair Ltd. (Registered)		67,294		3,308
Textron, Inc.		88,886		2,204
				136,420
Office/Business Equipment - 0.1%
Pitney Bowes, Inc.		64,325		685
Xerox Corp.		403,422		2,751
				3,436
Oil & Gas - 8.5%
Anadarko Petroleum Corp.		159,371		11,843
Apache Corp.		124,939		9,808
Cabot Oil & Gas Corp.		66,468		3,306
Chesapeake Energy Corp.		165,048		2,743

NORTHERN FUNDS QUARTERLY REPORT    5    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Oil & Gas - 8.5% continued
Chevron Corp.		623,030	$	67,374
ConocoPhillips		386,557		22,416
Denbury Resources, Inc.*		121,812		1,973
Devon Energy Corp.		120,483		6,270
Diamond Offshore Drilling, Inc.		22,184		1,508
Ensco PLC, Class A		74,080		4,391
EOG Resources, Inc.		86,255		10,419
EQT Corp.		47,310		2,790
Exxon Mobil Corp.		1,451,642		125,640
Helmerich & Payne, Inc.		33,743		1,890
Hess Corp.		94,486		5,004
Marathon Oil Corp.		225,527		6,915
Marathon Petroleum Corp.		108,206		6,817
Murphy Oil Corp.		58,903		3,508
Nabors Industries Ltd.*		92,510		1,337
Newfield Exploration Co.*		42,250		1,131
Noble Corp.		80,009		2,786
Noble Energy, Inc.		56,437		5,742
Occidental Petroleum Corp.		258,009		19,766
Phillips 66		199,083		10,571
Pioneer Natural Resources Co.		39,258		4,185
QEP Resources, Inc.		56,106		1,698
Range Resources Corp.		52,029		3,269
Rowan Cos. PLC,Class A*		39,329		1,230
Southwestern Energy Co.*		111,349		3,720
Tesoro Corp.		44,196		1,947
Valero Energy Corp.		176,631		6,027
WPX Energy, Inc.*		63,642		947
				358,971
Oil & Gas Services - 1.5%
Baker Hughes, Inc.		139,517		5,698
Cameron International Corp.*		78,256		4,418
FMC Technologies, Inc.*		75,628		3,239
Halliburton Co.		295,954		10,267
National Oilwell Varco, Inc.		136,090		9,302
Schlumberger Ltd.		422,736		29,291
				62,215
Packaging & Containers - 0.1%
Ball Corp.		48,486		2,170
Bemis Co., Inc.		32,751		1,096
Owens-Illinois, Inc.*		52,294		1,112
Sealed Air Corp.		61,743		1,081
				5,459
Pharmaceuticals - 6.7%
Abbott Laboratories		503,305		32,967
Allergan, Inc.		97,754		8,967
AmerisourceBergen Corp.		74,802		3,230
Bristol-Myers Squibb Co.		525,657		17,131
Cardinal Health, Inc.		108,638		4,474
Eli Lilly & Co.		325,436		16,051
Express Scripts Holding Co.*		259,986		14,039
Forest Laboratories, Inc.*		74,702		2,638
Johnson & Johnson		882,325		61,851
McKesson Corp.		74,973		7,269
Mead Johnson Nutrition Co.		64,700		4,263
Merck & Co., Inc.		968,523		39,651
Mylan, Inc.*		129,887		3,569
Perrigo Co.		28,002		2,913
Pfizer, Inc.		2,344,288		58,795
Watson Pharmaceuticals, Inc.*		40,773		3,507
				281,315
Pipelines - 0.5%
Kinder Morgan, Inc.		202,152		7,142
ONEOK, Inc.		65,719		2,809
Spectra Energy Corp.		212,454		5,817
Williams (The) Cos., Inc.		215,297		7,049
				22,817
Real Estate - 0.0%
CBRE Group, Inc., Class A*		95,478		1,900
Real Estate Investment Trusts - 2.1%
American Tower Corp.		126,129		9,746
Apartment Investment & Management Co., Class A		47,253		1,279
AvalonBay Communities, Inc.		36,488		4,948
Boston Properties, Inc.		48,042		5,083
Equity Residential		102,634		5,816
HCP, Inc.		143,322		6,475
Health Care REIT, Inc.		82,791		5,074
Host Hotels & Resorts, Inc.		230,290		3,609
Kimco Realty Corp.		130,474		2,521
Plum Creek Timber Co., Inc.		51,506		2,285
Prologis, Inc.		146,602		5,350
Public Storage		45,745		6,631
Simon Property Group, Inc.		98,465		15,566
Ventas, Inc.		93,771		6,069
Vornado Realty Trust		53,844		4,312

EQUITY INDEX FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Real Estate Investment Trusts - 2.1% continued
Weyerhaeuser Co.		172,768	$	4,806
				89,570
Retail - 6.1%
Abercrombie & Fitch Co., Class A		24,960		1,197
AutoNation, Inc.*		12,162		483
AutoZone, Inc.*		11,760		4,168
Bed Bath & Beyond, Inc.*		72,984		4,080
Best Buy Co., Inc.		84,554		1,002
Big Lots, Inc.*		17,623		502
CarMax, Inc.*		73,040		2,742
Chipotle Mexican Grill, Inc.*		10,062		2,993
Costco Wholesale Corp.		137,876		13,618
CVS Caremark Corp.		396,957		19,193
Darden Restaurants, Inc.		40,499		1,825
Dollar General Corp.*		83,687		3,690
Dollar Tree, Inc.*		72,170		2,927
Family Dollar Stores, Inc.		30,812		1,954
GameStop Corp., Class A		38,620		969
Gap (The), Inc.		94,796		2,942
Home Depot (The), Inc.		475,987		29,440
J.C. Penney Co., Inc.		44,673		880
Kohl’s Corp.		67,424		2,898
Limited Brands, Inc.		76,213		3,587
Lowe’s Cos., Inc.		358,095		12,719
Macy’s, Inc.		125,910		4,913
McDonald’s Corp.		319,707		28,201
Nordstrom, Inc.		48,555		2,598
O’Reilly Automotive, Inc.*		36,505		3,264
PetSmart, Inc.		34,249		2,341
Ross Stores, Inc.		70,834		3,836
Staples, Inc.		215,412		2,456
Starbucks Corp.		236,790		12,697
Target Corp.		207,234		12,262
Tiffany & Co.		37,576		2,155
TJX Cos., Inc.		232,136		9,854
Urban Outfitters, Inc.*		35,274		1,388
Walgreen Co.		273,663		10,128
Wal-Mart Stores, Inc.		532,547		36,336
Yum! Brands, Inc.		143,876		9,553
				255,791
Savings & Loans - 0.1%
Hudson City Bancorp, Inc.		151,273		1,230
People’s United Financial, Inc.		109,636		1,325
				2,555
Semiconductors - 2.7%
Advanced Micro Devices, Inc.*		193,301		464
Altera Corp.		101,740		3,504
Analog Devices, Inc.		96,337		4,052
Applied Materials, Inc.		381,920		4,369
Broadcom Corp., Class A		165,333		5,491
First Solar, Inc.*		19,710		609
Intel Corp.		1,584,642		32,691
KLA-Tencor Corp.		53,127		2,537
Lam Research Corp.*		54,128		1,956
Linear Technology Corp.		74,012		2,539
LSI Corp.*		174,073		1,232
Microchip Technology, Inc.		61,302		1,998
Micron Technology, Inc.*		322,927		2,051
NVIDIA Corp.		199,340		2,450
QUALCOMM, Inc.		542,656		33,655
Teradyne, Inc.*		59,986		1,013
Texas Instruments, Inc.		357,074		11,048
Xilinx, Inc.		82,624		2,966
				114,625
Software - 3.6%
Adobe Systems, Inc.*		157,691		5,942
Akamai Technologies, Inc.*		56,109		2,295
Autodesk, Inc.*		71,923		2,543
BMC Software, Inc.*		45,122		1,790
CA, Inc.		106,934		2,350
Cerner Corp.*		46,616		3,619
Citrix Systems, Inc.*		59,485		3,911
Dun & Bradstreet (The) Corp.		14,394		1,132
Electronic Arts, Inc.*		96,633		1,404
Fidelity National Information Services, Inc.		79,527		2,768
Fiserv, Inc.*		42,628		3,369
Intuit, Inc.		88,674		5,276
Microsoft Corp.		2,412,026		64,473
Oracle Corp.		1,196,880		39,880
Red Hat, Inc.*		61,850		3,276
Salesforce.com, Inc.*		41,604		6,994
				151,022
Telecommunications - 4.1%
AT&T, Inc.		1,808,691		60,971
CenturyLink, Inc.		199,059		7,787

NORTHERN FUNDS QUARTERLY REPORT    7    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

STOCK INDEX FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Telecommunications - 4.1% continued
Cisco Systems, Inc.		1,690,660	$	33,222
Corning, Inc.		469,338		5,923
Crown Castle International Corp.*		93,378		6,738
Frontier Communications Corp.		317,098		1,357
Harris Corp.		35,669		1,746
JDS Uniphase Corp.*		74,431		1,008
Juniper Networks, Inc.*		164,286		3,232
MetroPCS Communications, Inc.*		98,857		983
Motorola Solutions, Inc.		89,465		4,981
Sprint Nextel Corp.*		952,624		5,401
Verizon Communications, Inc.		908,871		39,327
Windstream Corp.		185,488		1,536
				174,212
Textiles - 0.0%
Cintas Corp.		33,683		1,378
Toys, Games & Hobbies - 0.1%
Hasbro, Inc.		37,036		1,329
Mattel, Inc.		108,707		3,981
				5,310
Transportation - 1.5%
C.H. Robinson Worldwide, Inc.		51,506		3,256
CSX Corp.		328,383		6,479
Expeditors International of Washington, Inc.		67,178		2,657
FedEx Corp.		92,944		8,525
Norfolk Southern Corp.		100,694		6,227
Ryder System, Inc.		16,135		805
Union Pacific Corp.		149,740		18,825
United Parcel Service, Inc., Class B		227,746		16,792
				63,566
Total Common Stocks (Cost $3,240,759)				4,057,220
INVESTMENT COMPANIES - 3.3%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(3) (4)		139,492,101		139,492
Total Investment Companies (Cost $139,492)				139,492
	PRINCIPAL
	AMOUNT		VALUE
	(000S)		(000S)
SHORT-TERM INVESTMENTS - 0.3%
U.S. Treasury Bill,
0.14%, 4/25/13(5)	$	10,505	$	10,501
Total Short-Term Investments (Cost $10,501)				10,501
Total Investments - 99.6% (Cost $3,390,752)				4,207,213
Other Assets less Liabilities - 0.4%				17,603
NET ASSETS - 100.0%			$	4,224,816

(1) At March 31, 2012, the value of the Fund’s investment in Northern Trust Corp. was approximately $2,498,000. The net purchases during the nine months ended December 31, 2012, were approximately $874,000, with net realized losses of approximately $79,000. The net change in unrealized appreciation during the nine months ended December 31, 2012, was approximately $275,000.

(2) Investment in affiliate.

(3) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 purchases of approximately $30,878,000 during the nine months ended December 31, 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 December 31, 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)
E-Mini S&P 500		2,352	$	167,004		Long		3/13	$	366

EQUITY INDEX FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

At December 31, 2012, the industry sectors for the Stock Index Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		11.5	%
Consumer Staples		10.6
Energy		11.0
Financials		15.6
Health Care		12.0
Industrials		10.1
Information Technology		19.1
Materials		3.6
Telecommunication Services		3.1
Utilities		3.4
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 December 31, 2012:

	LEVEL 1			LEVEL 2		LEVEL 3		TOTAL
INVESTMENTS	(000S)			(000S)		(000S)		(000S)
Common Stocks	$	4,057,220	(1)	$	—	$	—	$	4,057,220
Investment Companies		139,492			—		—		139,492
Short-Term Investments		—			10,501		—		10,501
Total Investments	$	4,196,712		$	10,501	$	—	$	4,207,213
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	366		$	—	$	—	$	366

⁽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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	3,530,749
Gross tax appreciation of investments	$	821,054
Gross tax depreciation of investments		(144,590	)
Net tax appreciation of investments	$	676,464

NORTHERN FUNDS QUARTERLY REPORT    9    EQUITY INDEX FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.0%
California - 97.0%
ABAG Finance Authority For Nonprofit Corp. California COPS VRDB, Episcopal Homes Foundation, (Wells Fargo Bank N.A. LOC), 0.10%, 1/9/13	$	4,700	$	4,700
Alameda County California IDA Revenue VRDB, Convergent Laser Tech, (Wells Fargo Bank N.A. LOC), 0.13%, 1/9/13		3,060		3,060
California Health Facilities Financing Authority Revenue VRDB, (Bank of Montreal LOC), 0.13%, 1/9/13		6,725		6,725
California Health Facilities Financing Authority Revenue VRDB, Adventist Health Systems West, Series B, (U.S. Bank N.A. LOC), 0.07%, 1/2/13		3,500		3,500
California Infrastructure & Economic Development Bank Revenue VRDB, Pinewood School Project, (Comerica LOC), 0.14%, 1/9/13		9,100		9,100
California Infrastructure & Economic Development Bank Revenue VRDB, Southern California Public Radio Project, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/2/13		2,400		2,400
California Municipal Finance Authority Revenue Refunding VRDB, Touro University California Project, (FHLB of San Francisco LOC), 0.11%, 1/9/13		14,505		14,505
California Municipal Finance Authority Revenue VRDB, Chevron USA-Recovery Zone, 0.09%, 1/2/13		1,800		1,800
California Municipal Finance Authority Revenue VRDB, Westmont College, Series A, (Comerica LOC), 0.17%, 1/9/13		5,500		5,500
California Pollution Control Financing Authority Solid Waste Disposal Revenue VRDB, Big Bear Disposal, Inc. Project, (Union Bank N.A. LOC), 0.15%, 1/9/13		500		500
California Pollution Control Financing Authority Solid Waste Disposal Revenue VRDB, Mission Trail Waste, Series A, (Comerica LOC), 0.16%, 1/9/13		2,745		2,745
California State G.O., Floating, Series C-4, (Citibank N.A. LOC), 0.13%, 1/9/13		3,800		3,800
California State School Cash Reserve Program Authority Revenue Notes, Series D, 2.00%, 2/1/13		3,000		3,003
California State School Cash Reserve Program Authority Revenue Senior Notes, Series A, 2.00%, 3/1/13		3,500		3,510
California Statewide Communities Development Authority Gas Supply Revenue VRDB, 0.12%, 1/9/13		7,000		7,000
California Statewide Communities Development Authority Multifamily Housing Revenue Refunding VRDB, Series C-2, (JPMorgan Chase Bank N.A. LOC), 0.21%, 1/9/13(1)		10,000		10,000
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, (FHLB of San Francisco LOC), 0.15%, 1/9/13		8,500		8,500
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Broadway Studios Apartments, Series A, (FHLB of San Francisco LOC), 0.15%, 1/9/13		1,300		1,300
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Highlander Pointe Apartments, Series A, (FHLB of San Francisco LOC), 0.15%, 1/9/13		5,000		5,000
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Lincoln Walk Apartment Project, Series D (PNC Bancorp, Inc. LOC), 0.16%, 1/9/13		500		500

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.0% continued
California - 97.0% continued
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Pine View Apartments, Series A, (Citibank N.A. LOC), 0.15%, 1/9/13	$	700	$	700
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, South Shore Apartments, Series M (FHLB of San Francisco LOC), 0.12%, 1/9/13		10,290		10,290
California Statewide Communities Development Authority Multifamily Revenue VRDB, Varenna Assisted Living, Series F, (FHLB of San Francisco LOC), 0.12%, 1/9/13		7,785		7,785
California Statewide Communities Development Authority Revenue Refunding VRDB, Retirement Housing Foundation, (KBC Groep N.V. LOC), 0.10%, 1/9/13		19,200		19,200
California Statewide Communities Development Authority Revenue VRDB, American Baptist Homes West, (Bank of America N.A. LOC), 0.12%, 1/9/13		10,415		10,415
California Statewide Communities Development Authority Revenue VRDB, Kaiser Permanente, Series A, (Kaiser Permanente Gtd.), 0.12%, 1/9/13		10,000		10,000
California Statewide Communities Development Authority Revenue VRDB, Series 2005, University of San Diego, (BNP Paribas LOC), 0.12%, 1/9/13		3,400		3,400
California Statewide Communities Development Corp. COPS VRDB, Covenant Retirement Communities, (Bank of America N.A. LOC), 0.10%, 1/9/13		2,400		2,400
Carlsbad California Multifamily Housing Revenue Refunding VRDB, Santa Fe Ranch Apartments Project, (FHLMC Insured), 0.16%, 1/9/13		6,420		6,420
Castaic Lake Water Agency California Revenue COPS VRDB, 1994 Refunding Project, Series A, (Wells Fargo Bank N.A. LOC), 0.11%, 1/9/13		4,500		4,500
City of Fresno California Multifamily Housing Revenue Refunding VRDB, Heron Pointe Apartments, Series A (FNMA LOC), 0.15%, 1/9/13		10,650		10,650
City of Manhattan Beach California COPS Refunding VRDB, (Union Bank N.A. LOC), 0.12%, 1/9/13		2,235		2,235
City of Oceanside California Multifamily Housing Revenue VRDB, Shadow Way, Non AMT, (FHLMC LOC), 0.12%, 1/9/13		3,850		3,850
County of San Bernardino California G.O. TRANS, Series A 2.00%, 6/28/13		3,500		3,531
Deutsche Bank Spears/Lifers Trust, Goldman Sachs G.O., Series DB-461, (Deutsche Bank A.G. Gtd.), 0.16%, 1/9/13(1)		7,010		7,010
Deutsche Bank Spears/Lifers Trust, Goldman Sachs G.O., Series DBE-637 (Deutsche Bank A.G. LOC), 0.23%, 1/9/13(1)		8,006		8,006
Irvine Unified School Community District 09, Special Tax, Series A, (U.S. Bank N.A. LOC), 0.07%, 1/2/13		4,040		4,040
Los Angeles California COPS VRDB, Kadima Hebrew Academy, Series A, (U.S. Bank N.A. LOC), 0.12%, 1/9/13		500		500
Los Angeles California Department of Water & Power Revenue VRDB, Power Systems, Subseries A-8, 0.11%, 1/9/13		100		100
Los Angeles California Department of Water & Power Waterworks Revenue VRDB, Subseries B-4, 0.11%, 1/9/13		4,825		4,825

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.0% continued
California - 97.0% continued
Los Angeles California G.O. TRANS, Series A, 2.00%, 2/28/13	$	2,000	$	2,006
Los Angeles California Multifamily Revenue Refunding VRDB, Mountainback, Series B, (FHLMC LOC), 0.16%, 1/9/13		8,240		8,240
Los Angeles California Wastewater System Revenue Refunding VRDB, Subseries C, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/9/13		2,500		2,500
Los Angeles Community Redevelopment Agency Multifamily Housing Revenue Refunding VRDB, Grand Promenade Project, (FHLMC Gtd.), 0.15%, 1/9/13		20,000		20,000
Los Angeles Department of Water & Power Revenue VRDB, Subseries B-1, 0.11%, 1/9/13		1,700		1,700
Los Angeles Department of Water & Power Waterworks Revenue VRDB, Subseries B-2, 0.08%, 1/2/13		2,300		2,300
Los Angeles Municipal Improvement Corp., Municipal Interest Bearing CP, (JPMorgan Chase Bank N.A. LOC), 0.20%, 2/12/13		3,000		3,000
Orange County California Apartment Development Revenue Refunding Bonds, Larkspur Canyon Apartments, Series A, (FNMA LOC), 0.11%, 1/9/13		7,435		7,435
Riverside County California COPS VRDB, Aces-Riverside County Public Facilities, Series B, (State Street Bank & Trust Co. LOC), 0.13%, 1/9/13		4,250		4,250
Series C, (State Street Bank & Trust Co. LOC), 0.13%, 1/9/13		1,000		1,000
Riverside County Multifamily Housing Authority Revenue Refunding VRDB, Tyler Springs Apartments, Series C, (FNMA Gtd.), 0.12%, 1/9/13		7,750		7,750
Sacramento County California Housing Authority Multifamily Housing Revenue Refunding VRDB, Seasons of Winter, Series C-2, (FHLMC Gtd.), 0.15%, 1/9/13		6,900		6,900
Sacramento County California Multifamily Housing Authority Revenue Refunding VRDB, Ashford, Series D, (FNMA Insured), 0.10%, 1/9/13		5,820		5,820
Sacramento County Sanitation Districts Financing Authority Revenue Refunding VRDB, Series E, (U.S. Bank N.A. LOC) 0.13%, 1/9/13		2,900		2,900
Salinas California Economic Development Revenue VRDB, Monterey County Public Building, Series A, (Bank of New York Mellon Corp. LOC), 0.10%, 1/9/13		10,000		10,000
San Bernardino County California Multifamily Revenue Refunding VRDB, Housing Mortgage Mountain View, Series A, (FNMA LOC), 0.19%, 1/9/13		7,110		7,110
San Diego Unified School District G.O. TRANS, Series A-2, 2.00%, 6/28/13		3,500		3,530
San Francisco California City & County Multifamily Housing Revenue Refunding VRDB, Post Street Towers, Series A, (FHLMC Insured), 0.11%, 1/9/13		12,000		12,000
San Francisco City & County Airports Commission International Airport Revenue Refunding VRDB, Series 37C, (Union Bank N.A. LOC), 0.13%, 1/9/13		13,895		13,895
San Francisco City & County California Redevelopment Agency Revenue Bonds, Series C, 3rd Mission, (FNMA Insured), 0.11%, 1/9/13		11,100		11,100
Southern California Public Power Authority Revenue VRDB, Natural Gas Project, (Citibank N.A. LOC), 0.13%, 1/9/13		1,320		1,320

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.0% continued
California - 97.0% continued
Southern California State Public Power Authority Revenue Refunding VRDB, Magnolia Power Project, (Wells Fargo Bank N.A. LOC), 0.12%, 1/9/13	$	15,690	$	15,690
State of California G.O., Series A-3, (Bank of Montreal LOC), 0.09%, 1/2/13		200		200
Sunnyvale California COPS Refunding VRDB, Government Center Site, Series A, (Union Bank N.A. LOC), 0.14%, 1/9/13		11,885		11,885
Tahoe Forest Hospital District California Revenue VRDB, Health Facility, (U.S. Bank N.A. LOC), 0.10%, 1/2/13		2,455		2,455
Western Municipal California Water District Facilities Authority Revenue Refunding Bonds, Series A, (Union Bank N.A. LOC), 0.10%, 1/9/13		10,000		10,000
				391,991
Total Municipal Investments (Cost $391,991)				391,991
Total Investments - 97.0% (Cost $391,991)(2)				391,991
Other Assets less Liabilities - 3.0%				12,173
NET ASSETS - 100.0%			$	404,164

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 $391,991.

Percentages shown are based on Net Assets.

At December 31, 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		13.0	%
Educational Services		9.9
Electric Services, Power and Utility		6.0
Executive, Legislative and General Government		13.5
General Medical and Surgical Hospitals, Health Services and Residential Care		13.9
Urban and Community Development and Housing Programs		36.2
All other sectors less than 5%		7.5
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 California Municipal Money Market Fund’s investments, which are carried at amortized cost, which approximates fair value, as of December 31, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Investments held by California Municipal Money Market Fund	$	—	$	391,991	(1) (2)	$	—	$	391,991

(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 December 31, 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 the stated date on the security, the next interest reset/puttable date for floating rate and variable securities.

MONEY MARKET FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

ABAG - Association of Bay Area Governments

AMT - Alternative Minimum Tax

COPS - Certificates of Participation

CP - Commercial Paper

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

NORTHERN FUNDS QUARTERLY REPORT    5    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 0.2%
Auto Receivables - 0.1%
Honda Auto Receivables Owner Trust, Series 2012-2, Class A1, 0.30%, 1/25/13	$	3,950	$	3,950
Honda Auto Receivables Owner Trust, Series 2012-3, Class A1, 0.29%, 2/25/13		6,276		6,276
				10,226
Other - 0.1%
John Deere Owner Trust, Series 2012-B, Class A1, 0.27%, 4/15/13		8,694		8,694
Total Asset-Backed Securities (Cost $18,920)				18,920
CERTIFICATES OF DEPOSIT - 24.2%
Non-U.S. Depository Institutions - 23.0%
Bank of Montreal, Chicago Branch, 0.19%, 1/4/13		61,000		61,000
0.22%, 2/4/13		38,000		38,000
0.33%, 3/18/13, FRCD		15,000		15,000
0.46%, 8/1/13		30,000		30,000
Bank of Montreal, London, 0.30%, 2/26/13		38,000		38,000
Bank of Nova Scotia, Houston Branch, 0.49%, 3/18/13, FRCD		15,000		15,016
0.66%, 3/18/13, FRCD		10,000		10,023
Bank of Nova Scotia, Houston, 0.28%, 1/1/13, FRCD		20,000		20,000
0.34%, 1/1/13, FRCD		45,000		45,000
0.24%, 1/22/13, FRCD		20,000		20,000
0.24%, 2/4/13		69,000		69,000
Bank Tokyo - Mitsubishi UFJ Financial Group, Inc., 0.24%, 2/25/13		39,585		39,585
Barclays Bank PLC, New York Branch, 0.50%, 4/9/13		43,000		43,000
0.48%, 6/6/13		77,165		77,165
BNP Paribas S.A., New York Branch, 0.35%, 2/5/13		14,701		14,701
0.34%, 2/13/13		27,000		27,000
Canadian Imperial Bank of Commerce, 0.29%, 1/1/13, FRCD		35,000		35,000
0.36%, 2/28/13, FRCD		40,000		40,000
Commonwealth Bank of Australia, London, 0.24%, 1/4/13		60,000		60,000
0.24%, 1/22/13		63,000		63,000
0.24%, 3/13/13		43,030		43,030
Credit Agricole CIB, New York, 0.50%, 1/9/13		30,000		30,000
Credit Agricole S.A., London, 0.47%, 2/1/13		97,000		97,000
Credit Suisse, New York, 0.34%, 5/2/13		40,000		40,000
0.34%, 5/13/13		34,700		34,700
Den Norske Bank ASA, London, 0.31%, 4/19/13		75,000		75,000
Den Norske Bank ASA, New York, 0.31%, 5/17/13		40,135		40,135
Deutsche Bank A.G., New York Branch, 0.26%, 2/26/13		57,000		57,000
HSBC Holdings PLC, London Branch, 0.30%, 5/20/13		75,000		75,000
Mizuho Corporate Bank, USA, 0.25%, 3/1/13		27,000		27,000
0.38%, 6/14/13		79,450		79,450
National Australia Bank, 0.41%, 1/25/13, FRCD		37,000		37,000
Nordea Bank Finland PLC, New York, 0.30%, 5/6/13		56,000		56,000
0.30%, 6/14/13		75,000		74,998
Norinchukin Bank, New York Branch, 0.28%, 3/11/13		40,000		40,000
Rabobank Nederland , New York Branch, 0.39%, 4/2/13		128,000		128,000
Rabobank Nederland, 0.31%, 5/20/13		59,975		59,975
Royal Bank of Canada, New York, 0.36%, 2/6/13, FRCD		29,000		29,000
Skandinaviska Enskildabanken AB, New York, 0.39%, 4/17/13		60,000		60,000
0.38%, 6/7/13		45,970		45,970
Societe Generale, London Branch, 0.40%, 3/4/13		67,000		67,000
Societe Generale, New York Branch, 0.45%, 1/9/13		30,000		30,000

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CERTIFICATES OF DEPOSIT - 24.2% continued
Non-U.S. Depository Institutions - 23.0% continued
Sumitomo Mutsui Bank, New York, 0.24%, 2/13/13	$	57,000	$	57,000
Svenska Handelsbanken, New York, 0.25%, 1/22/13		52,000		52,000
Toronto Dominion Bank, New York, 0.22%, 2/6/13		56,000		56,000
0.30%, 4/1/13		22,000		22,000
0.30%, 4/22/13		15,000		15,000
0.30%, 6/19/13		5,000		5,000
Westpac Banking Corp., New York, 0.50%, 8/1/13		32,000		32,000
				2,225,748
U.S. Depository Institutions - 1.2%
Chase Bank USA, N.A., 0.22%, 3/12/13		78,785		78,785
0.22%, 3/13/13		34,000		34,000
				112,785
Total Certificates of Deposit (Cost $2,338,533)				2,338,533
COMMERCIAL PAPER - 12.7%
Food and Beverage - 0.3%
Nestle Capital Corp., 0.39%, 5/20/13		32,875		32,825
Foreign Agencies - 2.7%
Caisse Des Depots Et Consignations, 0.30%, 2/1/13		60,000		59,985
0.31%, 3/18/13		35,000		34,977
0.33%, 4/24/13		58,000		57,940
Electricite De France, 0.36%, 3/11/13		49,655		49,620
KFW, 0.24%, 2/4/13		20,000		19,995
Oesterreich Kontrollbank, 0.20%, 1/8/13		9,815		9,815
0.19%, 1/24/13		15,000		14,998
0.20%, 1/25/13		4,000		3,999
0.20%, 2/15/13		10,745		10,742
				262,071
Foreign Local Government - 0.9%
NRW.BANK, 0.21%, 1/8/13		24,545		24,544
0.22%, 2/4/13		24,440		24,435
Queensland Treasury Corp., 0.21%, 2/15/13		32,420		32,411
				81,390
Multi-Seller Conduits - 6.1%
Atlantic Asset Securitization Corp., 0.38%, 1/15/13		8,450		8,449
Barton Capital LLC, 0.42%, 2/12/13		56,385		56,357
Chariot Funding LLC, 0.21%, 3/13/13		32,030		32,017
0.21%, 3/14/13		17,800		17,793
Gemini Securitization Corp. LLC, 0.18%, 1/2/13		135,000		134,999
0.22%, 1/11/13		25,165		25,164
Gotham Funding, 0.21%, 1/9/13		14,725		14,724
Kells Funding LLC, 0.23%, 1/7/13		33,000		32,999
0.34%, 2/1/13		23,000		22,993
0.28%, 2/12/13		8,000		7,997
0.27%, 2/21/13		8,000		7,997
0.27%, 3/11/13		16,000		15,992
0.28%, 3/18/13		32,000		31,980
0.28%, 4/3/13		40,000		39,971
LMA Americas LLC, 0.39%, 1/22/13		15,705		15,702
Market Street Funding LLC, 0.20%, 1/28/13		22,210		22,207
0.21%, 2/11/13		11,270		11,267
0.22%, 2/13/13		22,885		22,879
0.22%, 2/15/13		43,368		43,356
Victory Receivables Corp., 0.21%, 1/7/13		19,155		19,154
0.21%, 1/16/13		8,335		8,334
				592,331
Non-U.S. Depository Institutions - 1.6%
Australia and New Zealand Bank, 0.36%, 2/19/13		16,000		16,000
0.37%, 2/19/13		12,000		12,000
Commonwealth Bank of Australia, 0.35%, 1/4/13		15,000		14,999
0.29%, 5/23/13		39,000		38,955

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
COMMERCIAL PAPER - 12.7% continued
Non-U.S. Depository Institutions - 1.6% continued
Lloyds TSB Bank PLC, 0.26%, 3/14/13	$	69,120	$	69,085
				151,039
U.S. Depository Institutions - 1.1%
JPMorgan Chase & Co., 0.30%, 5/1/13		73,000		72,927
0.29%, 6/11/13		33,100		33,058
				105,985
Total Commercial Paper (Cost $1,225,641)				1,225,641
CORPORATE NOTES/BONDS - 5.2%
Foreign Agencies - 2.0%
Export Development Canada, 0.32%, 1/1/13, FRN(1)		45,000		45,000
0.42%, 2/5/13(1)		47,235		47,235
KFW, 0.43%, 2/22/13, FRN		19,320		19,322
Kommunalbanken A.S. 0.34%, 1/1/13, FRN		16,000		16,000
Kommunalbanken A.S., 0.34%, 1/1/13, FRN(1)		40,000		40,000
0.40%, 6/18/13(1)		13,500		13,500
Network Rail Infrastructure Finance PLC, Government Gtd., 0.39%, 2/8/13, FRN(1)		12,250		12,250
				193,307
Insurance Carriers - 0.2%
Berkshire Hathaway, Inc., 0.74%, 2/11/13, FRN		15,000		15,011
Non-U.S. Depository Institutions - 0.1%
Commonwealth Bank of Australia, 0.36%, 1/2/13, FRN(1)		15,000		14,994
Paper and Allied Products - 0.5%
Kimberly-Clark, 4.22%, 12/19/13(1) (2)		50,000		51,883
Property and Casualty - 0.2%
Berkshire Hathaway Finance Corp., 5.00%, 8/15/13		15,000		15,430
Retailers - 0.5%
Wal-Mart Stores, 5.48%, 6/1/13, FRN		39,000		39,836
7.25%, 6/1/13		9,784		10,062
				49,898
Supranational - 0.9%
International Bank for Reconstruction, 0.24%, 1/1/13, FRN		55,000		55,000
International Finance Corp., 0.23%, 1/15/13, FRN		15,000		15,000
0.23%, 1/29/13, FRN		15,000		15,000
				85,000
U.S. Depository Institutions - 0.8%
JPMorgan Chase & Co., 4.75%, 5/1/13		33,925		34,417
JPMorgan Chase Bank N.A., New York Branch, 0.33%, 1/28/13, FRN		47,000		47,010
				81,427
Total Corporate Notes/Bonds (Cost $506,950)				506,950
EURODOLLAR TIME DEPOSITS - 21 .1%
Non-U.S. Depository Institutions - 21.1%
Australia and New Zealand Bank, 0.05%, 1/2/13		141,615		141,615
Bank of Nova Scotia, Toronto Branch, 0.03%, 1/2/13		275,000		275,000
Bank of Tokyo-Mitsubishi, Grand Cayman, 0.06%, 1/2/13		410,000		410,000
Credit Agricole S.A., London, 0.30%, 1/2/13		235,010		235,010
0.23%, 1/3/13		235,675		235,675
HSBC Holdings PLC, Paris Branch, 0.30%, 1/2/13		142,000		142,000
Skandinaviska Enskildabanken AB, 0.03%, 1/2/13		350,000		350,000
Societe Generale, Cayman Islands, 0.15%, 1/2/13		257,025		257,025
				2,046,325
Total Eurodollar Time Deposits (Cost $2,046,325)				2,046,325

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 15.4%(3)
Federal Farm Credit Bank - 2.3%
FFCB FRN, 0.18%, 1/1/13	$	77,000	$	77,012
0.39%, 1/1/13		10,000		9,999
0.18%, 1/11/13		14,000		14,000
0.17%, 1/13/13		35,000		34,995
0.20%, 1/18/13		15,000		15,004
0.20%, 1/19/13		15,000		15,005
0.15%, 1/20/13		35,000		34,994
0.10%, 1/23/13		25,000		25,000
				226,009
Federal Home Loan Bank - 8.4%
FHLB Bonds, 0.17%, 2/11/13		19,054		19,054
0.20%, 6/7/13		65,000		64,988
0.24%, 6/14/13		24,000		23,998
0.25%, 6/28/13		25,000		25,006
0.25%, 7/1/13		20,000		19,997
FHLB FRN, 0.19%, 1/1/13		25,000		24,996
0.20%, 1/1/13		35,000		34,994
0.22%, 1/1/13		113,000		112,995
0.23%, 1/1/13		55,000		55,000
0.25%, 1/1/13		20,000		19,993
0.26%, 1/1/13		40,000		39,993
0.27%, 1/1/13		20,000		19,998
0.33%, 1/1/13		45,000		44,998
0.34%, 1/1/13		40,000		40,000
0.35%, 1/1/13		90,000		89,999
0.36%, 1/1/13		15,000		15,000
0.16%, 1/15/13		50,000		49,995
0.17%, 1/16/13		15,000		15,000
0.17%, 1/27/13		35,000		35,000
0.10%, 2/13/13		22,000		21,998
0.09%, 2/14/13		35,000		35,000
				808,002
Federal Home Loan Mortgage Corporation - 4.4%
FHLMC FRN, 0.34%, 1/1/13		20,000		20,000
0.16%, 1/3/13		10,000		9,999
0.16%, 1/4/13		65,000		64,997
0.16%, 1/6/13		25,000		25,001
0.15%, 1/13/13		22,880		22,879
0.16%, 1/17/13		212,000		211,987
0.17%, 1/21/13		70,000		70,002
				424,865
Federal National Mortgage Association - 0.3%
FNMA FRN, 0.41%, 1/1/13		15,000		14,998
0.20%, 1/12/13		15,000		14,997
				29,995
Total U.S. Government Agencies (Cost $1,488,871)				1,488,871
U.S. GOVERNMENT OBLIGATIONS - 3.0%
U.S. Treasury Bills - 0.7%
0.08%, 1/3/13		29,000		29,000
0.08%, 2/21/13		14,500		14,499
0.06%, 2/28/13		28,410		28,407
				71,906
U.S. Treasury Notes - 2.3%
1.38%, 1/15/13		60,375		60,403
1.75%, 4/15/13		45,000		45,205
1.13%, 6/15/13		45,000		45,183
1.00%, 7/15/13		65,000		65,259
0.38%, 7/31/13		8,000		8,008
				224,058
Total U.S. Government Obligations (Cost $295,964)				295,964
Investments, at Amortized Cost ($7,921,204)				7,921,204
REPURCHASE AGREEMENTS - 16.6%
Joint Repurchase Agreements - 0.8%(4)
Bank of America Securities LLC, dated 12/31/12, repurchase price $17,727 0.16%, 1/2/13		17,727		17,727
Morgan Stanley & Co., Inc., dated 12/31/12, repurchase price $17,727 0.18%, 1/2/13		17,727		17,727
Societe Generale, New York Branch, dated 12/31/12, repurchase price $17,727 0.19%, 1/2/13		17,727		17,727

MONEY MARKET FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
REPURCHASE AGREEMENTS - 16.6% continued
Joint Repurchase Agreements - 0.8%(4) continued
UBS Securities LLC, dated 12/31/12, repurchase price $26,591 0.16%, 1/2/13	$	26,591	$	26,591
				79,772
Repurchase Agreements - 15.8%(5)
Bank of America N.A., dated 12/31/12, repurchase price $540,006 0.19%, 1/2/13		540,000		540,000
BNP Paribas Securities, dated 12/31/12, repurchase price $250,003 0.21%, 1/2/13		250,000		250,000
Citigroup Global Markets, dated 12/31/12, repurchase price $200,002 0.20%, 1/2/13		200,000		200,000
Goldman Sachs & Co., dated 11/29/12, repurchase price $40,015 0.22%, 1/28/13		40,000		40,000
Goldman Sachs & Co., dated 12/3/12, repurchase price $30,013 0.25%, 2/5/13		30,000		30,000
JPMorgan Securities LLC, dated 10/19/12, repurchase price $30,029 0.39%, 1/17/13		30,000		30,000
JPMorgan Securities LLC, dated 11/29/12, repurchase price $50,011 0.22%, 1/3/13		50,000		50,000
JPMorgan Securities LLC, dated 12/20/12, repurchase price $60,039 0.38%, 2/20/13		60,000		60,000
JPMorgan Securities LLC, dated 12/31/12, repurchase price $50,001 0.25%, 1/2/13		50,000		50,000
Merrill Lynch, dated 12/31/12, repurchase price $275,003 0.19%, 1/2/13		275,000		275,000
				1,525,000
Total Repurchase Agreements (Cost $1,604,772)				1,604,772
Total Investments - 98.4% (Cost $9,525,976)(6)				9,525,976
Other Assets less Liabilities - 1.6%				152,499
NET ASSETS - 100.0%			$	9,678,475

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 December 31, 2012, the value of this restricted illiquid security amounted to approximately $51,883 or 0.5% of net assets. Additional information on this restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
Kimberly-Clark,
4.22%, 12/19/13	12/14/12	$	51,952

(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 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.

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

NAME	FAIR VALUE (000S)		COUPON RATES	MATURITY DATES
U.S. Treasury Bonds	$	36,954	2.13% - 5.50%	4/15/28 - 5/15/41
U.S. Treasury Notes	$	44,215	0.63% - 4.00%	8/15/13 - 1/15/21
Total	$	81,169

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

NAME	FAIR VALUE (000S)		COUPON RATES	MATURITY DATES
Commercial Paper	$	84,007	0.10% - 0.21%	2/6/13 - 3/15/13
Corporate Bonds	$	64,203	3.55% - 8.00%	2/15/22 - 3/15/40
FHLB	$	40,802	0.17%	9/6/13
FHLMC	$	138,634	2.14% - 5.67%	8/1/27 - 2/1/42
FNMA	$	196,116	3.50%	12/1/41 - 12/1/42
GNMA	$	1,050,600	3.50% - 6.00%	10/20/36 - 12/20/42
Total	$	1,574,362

(6) The cost for federal income tax purposes was $9,525,976.

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).

NORTHERN FUNDS QUARTERLY REPORT    5    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MONEY MARKET 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 Money Market Fund’s investments, which are carried at amortized cost, which approximates fair value, as of December 31, 2012.

	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Investments held by Money Market Fund	$	—	$	9,525,976	(1)	$	—	$	9,525,976

(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 December 31, 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 the stated date on the security, the next interest reset/puttable date for floating rate and variable 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

MONEY MARKET FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5%
Alabama - 1.0%
Chatom Alabama IDB Gulf Opportunity Zone VRDB, Powersouth Energy Cooperative, (Natural Rural Utilities Cooperative Finance Corp. LOC), 0.28%, 1/9/13	$	20,000	$	20,000
Dothan Alabama Downtown Redevelopment Authority Revenue VRDB, Northside Mall Project, (Wells Fargo Bank N.A. LOC), 0.14%, 1/9/13		12,000		12,000
Mobile Alabama IDB PCR VRDB, Alabama Power, 1st Series, 0.14%, 1/2/13		7,300		7,300
Mobile County Alabama IDA PCR Refunding VRDB, Exxonmobil Project, (Exxon Gtd.) 0.11%, 1/2/13		400		400
Taylor-Ryan Improvement District No. 2 VRDB, Special Assessment, Improvement, (Wachovia Bank N.A. LOC), 0.14%, 1/9/13		5,000		5,000
Washington County Alabama IDA Revenue VRDB, Bay Gas Storage Co. Ltd., Project, (UBS A.G. LOC), 0.15%, 1/9/13		9,165		9,165
West Jefferson IDB PCR Refunding VRDB, Series C, Alabama Power Co. Project, 0.13%, 1/9/13		24,000		24,000
				77,865
Alaska - 1.6%
Alaska State Housing Finance Corp. Revenue VRDB, Series C, Capital Project, 0.11%, 1/9/13		51,265		51,265
Valdez Alaska Marine Terminal Revenue Refunding VRDB, Series A, ConocoPhillips, 0.11%, 1/9/13		65,000		65,000
				116,265
Arizona - 1.6%
Apache County Arizona IDA PCR Refunding VRDB, Tucson Electric Power, Series A, (U.S. Bancorp LOC), 0.14%, 1/9/13		25,425		25,425
Phoenix Arizona IDA Multifamily Housing Revenue Refunding VRDB, Southwest Village Apartments Project, (FNMA Gtd.), 0.16%, 1/9/13		9,600		9,600
Phoenix Arizona IDA Student Housing Revenue VRDB, (Wells Fargo & Co. Gtd.), 0.15%, 1/9/13(1)		16,450		16,450
Phoenix Civic Improvement Corp. Municipal Interest Bearing CP, (Barclays PLC LOC), 0.22%, 1/18/13		35,000		35,000
Pima County Arizona IDA Multifamily Housing Revenue Refunding VRDB, Eastside Place Apartments Project, (FNMA LOC), 0.16%, 1/9/13		6,790		6,790
Salt River Project Arizona Agriculture Improvement & Power District Electrical Systems Revenue VRDB, Salt River Project, Series A, 0.13%, 1/9/13(1)		8,700		8,700
Tucson Arizona IDA VRDB, Family Housing Resource Projects, Series A, (FNMA LOC), 0.12%, 1/9/13		16,620		16,620
				118,585
California - 6.6%
ABAG Finance Authority For Nonprofit Corp. California COPS VRDB, Episcopal Homes Foundation, (Wells Fargo Bank N.A. LOC), 0.10%, 1/9/13		12,200		12,200
California Health Facilities Financing Authority Revenue VRDB, Catholic Healthcare, Series H, (Citibank N.A. LOC), 0.12%, 1/9/13		2,000		2,000
California Infrastructure & Economic Development Bank Revenue Refunding VRDB, Los Angeles Museum, Series A, (Wells Fargo Bank N.A. LOC), 0.11%, 1/2/13		6,500		6,500
California Infrastructure & Economic Development Bank Revenue Refunding VRDB, Pacific Gas Electric, Series A, (Mizuho Corporate Bank Ltd. LOC), 0.11%, 1/2/13		16,600		16,600

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
California - 6.6% continued
California Infrastructure & Economic Development Bank Revenue VRDB, Pinewood School Project, (Comerica LOC), 0.14%, 1/9/13	$	2,630	$	2,630
California Municipal Finance Authority Revenue Refunding VRDB, Touro University California Project, (FHLB of San Francisco LOC), 0.11%, 1/9/13		1,600		1,600
California Municipal Finance Authority Revenue VRDB, Chevron USA-Recovery Zone, 0.09%, 1/2/13		10,500		10,500
California School Cash Reserve Program Authority Revenue Notes, Series D, 2.00%, 2/1/13		42,000		42,046
California School Cash Reserve Program Authority Revenue Notes, Series C, 2.00%, 2/1/13		10,000		10,015
California Statewide Communities Development Authority Gas Supply Revenue VRDB, 0.12%, 1/9/13		31,700		31,700
California Statewide Communities Development Authority Multifamily Housing Revenue Refunding VRDB, Series C-2, (JPMorgan Chase Bank N.A. LOC), 0.21%, 1/9/13(1)		5,000		5,000
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Broadway Studios Apartments, Series A, (FHLB of San Francisco LOC), 0.15%, 1/9/13		13,500		13,500
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Highlander Pointe Apartments, Series A, (FHLB of San Francisco LOC), 0.15%, 1/9/13		5,000		5,000
California Statewide Communities Development Authority Multifamily Housing Revenue VRDB, Pine View Apartments, Series A, (Citibank N.A. LOC), 0.15%, 1/9/13		4,500		4,500
California Statewide Communities Development Authority Multifamily Revenue VRDB, Varenna Assisted Living, Series F, (FHLB of San Francisco LOC), 0.12%, 1/9/13		3,600		3,600
California Statewide Communities Development Authority Revenue Bonds, Kaiser Permanente, Series B, 0.11%, 1/9/13		20,000		20,000
California Statewide Communities Development Authority Revenue VRDB, (FHLB of San Francisco LOC), 0.15%, 1/9/13		7,000		7,000
California Statewide Communities Development Authority Revenue VRDB, American Baptist Homes West, (Bank of America N.A. LOC), 0.12%, 1/9/13		25,435		25,435
California Statewide Communities Development Authority Revenue VRDB, Series 2005, University of San Diego, (BNP Paribas LOC), 0.12%, 1/9/13		6,100		6,100
California Statewide Communities Development Corp. COPS VRDB, Covenant Retirement Communities, (Bank of America N.A. LOC), 0.10%, 1/9/13		14,100		14,100
Carlsbad California Multifamily Housing Revenue Refunding VRDB, Santa Fe Ranch Apartments Project, (FHLMC Insured), 0.16%, 1/9/13		9,500		9,500
City of Fresno California Multifamily Housing Revenue Refunding VRDB, Series A, (FNMA LOC), 0.15%, 1/9/13		6,400		6,400
City of Los Angeles California Wastewater System Revenue Refunding VRDB, Subseries C, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/9/13		1,000		1,000
City of Los Angeles G.O. TRANS, Series A, 2.00%, 2/28/13		20,000		20,057
Corona California Multifamily Housing Revenue Refunding VRDB, Country Hills Project, (FHLMC Gtd.), 0.15%, 1/9/13		6,955		6,955

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
California - 6.6% continued
Daly City California Housing Financing Agency Multifamily Revenue Refunding VRDB, Serramonte Del Ray, Series A, (FNMA Gtd.), 0.15%, 1/9/13	$	13,300	$	13,300
Deutsche Bank Spears/Lifers Trust G.O., Series DB-662, Goldman Sachs, (Deutsche Bank A.G. Gtd.), 0.23%, 1/9/13(1)		7,555		7,555
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, G.O., Series DB-458, (Deutsche Bank A.G. Gtd.), 0.16%, 1/9/13(1)		11,490		11,490
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, G.O., Series DB-461, (Deutsche Bank A.G. Gtd.), 0.16%, 1/9/13(1)		5,295		5,295
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Series 637 (Deutsche Bank A.G. LOC), 0.23%, 1/9/13(1)		33,988		33,988
Foothill De Anza California Community College District G.O., (Wells Fargo & Co. Gtd.), 0.15%, 1/9/13(1)		30,950		30,950
Irvine Unified School Community District 09, Special Tax, Series A, (U.S. Bank N.A. LOC), 0.07%, 1/2/13		1,900		1,900
Livermore California COPS VRDB, (U.S. Bank N.A. LOC), 0.12%, 1/9/13		2,275		2,275
Los Angeles California COPS VRDB, Kadima Hebrew Academy, Series A, (U.S. Bank N.A. LOC), 0.12%, 1/9/13		1,300		1,300
Los Angeles California Department of Water & Power Revenue VRDB, Power Systems, Series A-2 0.11%, 1/9/13		19,600		19,600
Los Angeles California Department of Water & Power Revenue VRDB, Power Systems, Series A-8 0.11%, 1/9/13		10,530		10,530
Orange County California Housing Authority Apartment Development Revenue Refunding VRDB, Oasis Martinique, Series I, (FNMA Gtd.), 0.15%, 1/9/13		20,960		20,960
Riverside County California COPS VRDB, Aces-Riverside County Public Facilities, Series B, (State Street Bank & Trust Co. LOC), 0.13%, 1/9/13		800		800
Salinas California Economic Development Revenue VRDB, Monterey County Public Building, Series A, (Bank of New York Mellon Corp. LOC), 0.10%, 1/9/13		6,570		6,570
San Diego Unified School District G.O. TRANS, Series A-1, 2.00%, 1/31/13		15,000		15,022
San Diego Unified School District G.O. TRANS, Series A-2, 2.00%, 6/28/13		1,000		1,009
Southern California State Public Power Authority Revenue Refunding VRDB, Magnolia Power Project, (Wells Fargo Bank N.A. LOC), 0.12%, 1/9/13		18,465		18,465
				484,947
Colorado - 2.2%
Arapahoe County Colorado Multifamily Housing Revenue Refunding VRDB, Hunters Run, (FHLMC LOC), 0.12%, 1/9/13		9,330		9,330
Colorado Educational & Cultural Facilities Authority Revenue Bonds, Fremont Christian School Project, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		16,610		16,610
Colorado Educational & Cultural Facilities Authority Revenue Refunding VRDB, Nampa Christian Schools, (U.S. Bank N.A. LOC), 0.12%, 1/9/13		4,470		4,470
Colorado Educational & Cultural Facilities Authority Revenue VRDB, Bear Creek School Project, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		635		635

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Colorado - 2.2% continued
Colorado Educational & Cultural Facilities Authority Revenue VRDB, Bethany Lutheran School Project, Series A-2, (U.S. Bank N.A. LOC), 0.11%, 1/9/13	$	3,425	$	3,425
Colorado Educational & Cultural Facilities Authority Revenue VRDB, Cole Valley Christian Schools, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		4,675		4,675
Colorado Health Facilities Authority Revenue VRDB, Fraiser Meadows Community Project, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/9/13		6,000		6,000
Colorado Health Facilities Authority Revenue VRDB, Frasier Meadows Manor Project, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/9/13		11,040		11,040
Colorado Health Facilities Authority Revenue VRDB, Senior Living Facilities Eaton Terrace, Series A, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		3,105		3,105
Colorado Housing & Finance Authority Revenue VRDB, SFM, Series A3, 0.12%, 1/9/13		10,430		10,430
Colorado Springs Colorado Utilities Revenue VRDB, Systems Improvement, Series A, 0.12%, 1/9/13		9,355		9,355
Fitzsimons Redevelopment Authority Colorado Revenue VRDB, University Physicians, Inc., (U.S. Bancorp LOC), 0.14%, 1/9/13		12,110		12,110
RBC Municipal Products Inc. Trust Revenue Bonds, Floater Series C-11, in CO, (Royal Bank of Canada LOC), 0.13%, 1/9/13(1)		17,580		17,580
University of Colorado Hospital Authority Revenue VRDB, Series A, (Wells Fargo Bank N.A. LOC), 0.14%, 1/9/13		56,160		56,160
				164,925
Connecticut - 0.3%
Connecticut State Health & Educational Facility Authority Revenue Bonds, Yale University, Series T-2, 0.11%, 1/9/13		25,000		25,000
Delaware - 0.4%
Delaware State EDA Revenue VRDB, Peninsula United, Series A, (PNC Bancorp, Inc. LOC), 0.11%, 1/2/13		28,895		28,895
District of Columbia - 0.6%
District of Columbia Revenue VRDB, D.C. Preparatory Academy, (M&T Bank Corp. LOC), 0.18%, 1/9/13		4,835		4,835
District of Columbia Revenue VRDB, Henry J. Kaiser Foundation, 0.13%, 1/9/13		10,100		10,100
Metropolitan Washington DC Airports Authority System Revenue Refunding VRDB, Subseries C-2, (Barclays PLC LOC), 0.13%, 1/9/13		32,800		32,800
				47,735
Florida - 6.0%
Atlantic Beach Florida Health Care Facilities Revenue VRDB, Fleet Landing Project, (Wachovia Bank N.A. LOC), 0.25%, 1/9/13		7,170		7,170
Brevard County Health Facilities Authority Revenue Refunding VRDB, Retirement Housing Foundation, (KBC Groep N.V. LOC), 0.11%, 1/9/13		3,550		3,550
Capital Trust Agency Florida Housing Revenue VRDB, Atlantic Housing Foundation, Series A, (FNMA LOC), 0.13%, 1/9/13		10,700		10,700
Citizens Property Insurance Corp. Revenue Bonds, Series A-2, Senior Secured Notes, 2.50%, 6/1/13		37,750		38,049

MONEY MARKET FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Florida - 6.0% continued
Collier County Florida Health Facilities Authority Revenue VRDB, The Moorings, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/9/13	$	27,750	$	27,750
0.12%, 1/9/13		18,500		18,500
0.12%, 1/9/13		11,870		11,870
County of Palm Beach Florida Revenue Refunding VRDB, Pine Crest Preparatory, Series B, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		13,500		13,500
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Revenue VRDB, Series DB-487 (Deutsche Bank A.G. LOC), 0.17%, 1/9/13(1)		14,000		14,000
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Revenue VRDB, Series DBE-538, (Deutsche Bank A.G. Gtd.), 0.17%, 1/9/13(1)		15,255		15,255
Eclipse Funding Trust Revenue Bonds, 2007-0045 Solar Eclipse Miami, (U.S. Bank N.A. LOC), 0.12%, 1/2/13(1)		7,400		7,400
Eclipse Funding Trust, COPS, Series 2007-0035, Solar Eclipse, South, (U.S. Bank N.A. LOC), 0.13%, 1/9/13(1)		34,900		34,900
Eclipse Funding Trust, Florida, Revenue Bonds, Series 2006-0043, Solar Eclipse Certificates, (U.S. Bank N.A. LOC), 0.13%, 1/9/13(1)		5,000		5,000
Florida Gulf Coast University Financing Corp. Revenue Bonds, Series A, Capital Improvement Housing Project, (Wachovia Bank N.A. LOC), 0.13%, 1/9/13		3,545		3,545
Florida Housing Finance Agency Revenue VRDB, (FNMA Insured), 0.14%, 1/9/13		8,500		8,500
Florida Housing Finance Corp. Multifamily Housing Revenue Refunding VRDB, Island Club Apartments, Series J-A, (FHLMC Gtd.), 0.12%, 1/9/13		5,940		5,940
Florida Housing Finance Corp. Multifamily Revenue VRDB, Mortgage Monterey Lake, Series C, (FHLMC LOC), 0.12%, 1/9/13		5,815		5,815
Florida State Board of Education Public Education G.O. Refunding Bonds, Capital Outlay, Series A, 0.13%, 1/9/13(1)		7,000		7,000
Highlands County Health Facilities Authority Revenue Refunding VRDB, Hospital Adventist, Series 1-5, 0.10%, 1/9/13		10,125		10,125
JEA Electric System Revenue VRDB, Series A, (Bank of Montreal LOC), 0.11%, 1/9/13		10,425		10,425
JEA Variable Rate Demand Obligation, 0.20%, 1/10/13		18,750		18,750
JEA Water & Sewer System Revenue VRDB, Subseries A-1 0.12%, 1/2/13		10,000		10,000
Miami-Dade County Florida Educational Facilities Authority Revenue Bonds, (Wells Fargo Bank N.A. LOC), 0.15%, 1/9/13(1)		15,085		15,085
Orange County Florida Health Facilities Authority Revenue VRDB, Hospital Orlando Regional, Series E, (Branch Banking & Trust Co. LOC), 0.12%, 1/9/13		4,500		4,500
Orange County Florida Housing Financial Authority Multifamily Housing Revenue Refunding Bonds, Post Lake Apartments Project, (FNMA Insured), 0.14%, 1/9/13		28,000		28,000
Orange County Florida Multifamily Housing Finance Authority Revenue Refunding VRDB, Heather Glen, Series E, (FNMA Insured), 0.16%, 1/9/13		10,000		10,000
Orlando-Orange County Expressway Authority Revenue Refunding VRDB, Subseries B-1, (Bank of Montreal LOC), 0.12%, 1/9/13		26,500		26,500

NORTHERN FUNDS QUARTERLY REPORT    5    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Florida - 6.0% continued
Orlando-Orange County Expressway Authority Revenue VRDB, Series D, (Barclays PLC LOC), 0.13%, 1/9/13	$	43,810	$	43,810
Sunshine State Governmental Financing Community Florida Revenue VRDB, Miami-Dade County Program, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/9/13		5,430		5,430
Volusia County Florida IDA Revenue Refunding VRDB, Retirement Housing Foundation, (KBC Groep N.V. LOC), 0.11%, 1/9/13		22,490		22,490
				443,559
Georgia - 2.3%
Clayton County Georgia Multifamily Housing Authority Revenue VRDB, Rivers Edge Development, (FHLMC Gtd.), 0.13%, 1/9/13		3,960		3,960
DeKalb County Georgia Housing Authority Multifamily Housing Revenue VRDB, Post Brook Project, (FNMA Gtd.), 0.14%, 1/9/13		4,300		4,300
DeKalb County Georgia Housing Authority Multifamily Housing Revenue VRDB, Post Walk Project, (FNMA Collateralized) 0.14%, 1/9/13		14,900		14,900
DeKalb County Georgia Multifamily Housing Authority Revenue VRDB, Highland Place Apartments Project, (FHLMC LOC), 0.13%, 1/9/13		4,200		4,200
Eclipse Funding Trust Solar Eclipse Atlanta Revenue Bonds, Series 2006-0024, (U.S. Bank N.A. LOC), 0.13%, 1/9/13(1)		23,835		23,835
Fulton County Georgia Development Authority Revenue Bonds, Alfred and Adele Davis, (Branch Banking & Trust Co. LOC), 0.13%, 1/9/13		10,590		10,590
Fulton County Georgia Residential Care Facilities for the Elderly Authority Revenue VRDB, First Mortgage, Lenbrook Project, Series C, (Bank of Scotland PLC LOC), 0.14%, 1/9/13		1,945		1,945
Gainesville & Hall County Development Authority Revenue VRDB, Senior Living Facilities, Lanier Village, Series B, (TD Banknorth, Inc. LOC), 0.06%, 1/2/13		10,000		10,000
Gwinnett County Development Authority Revenue VRDB, NIHAN Hospitality LLC Series E, (U.S. Bank N.A. LOC), 0.12%, 1/9/13		4,800		4,800
Gwinnett County Georgia Housing Authority Multifamily Housing Revenue VRDB, Post Corners Project, (FNMA Gtd.), 0.14%, 1/9/13		7,360		7,360
Main Street National Gas, Inc. Georgia Gas Project Revenue VRDB, Series A, 0.13%, 1/9/13		54,900		54,900
Marietta Georgia Multifamily Housing Authority Revenue Refunding Bonds, Wood Glen, (FHLMC Insured), 0.13%, 1/9/13		6,000		6,000
Monroe County Development Authority PCR VRDB, Oglethorpe Power Corp., (Bank of Montreal LOC), 0.15%, 1/9/13		9,100		9,100
Richmond County Georgia Development Authority Revenue Bonds, Series B, MCG Health, Inc. Project, (Branch Banking & Trust Co. LOC), 0.15%, 1/9/13		11,900		11,900
Roswell Multifamily Housing Authority Revenue Refunding VRDB, Azalea Park Apartments, (FNMA Insured), 0.13%, 1/9/13		5,400		5,400
				173,190
Illinois - 5.1%
BB&T Municipal Trust G.O. Revenue VRDB, (Branch Banking & Trust Co. LOC), 0.14%, 1/9/13(1)		16,565		16,565

MONEY MARKET FUNDS     6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Illinois - 5.1% continued
Chicago Illinois Water Revenue VRDB, Subseries 04-3, (State Street Bank & Trust Co. LOC), 0.14%, 1/9/13	$	3,075	$	3,075
City of Chicago G.O. VRDB, Project, Series B1, 0.15%, 1/2/13		475		475
City of Chicago Illinois G.O. Refunding VRDB, Project Series D-1, (Bank of Montreal LOC), 0.12%, 1/2/13		11,640		11,640
County of DuPage Illinois Educational Facilities Revenue VRDB, Benedictine University, Series B (U.S. Bank N.A. LOC), 0.11%, 1/9/13		2,357		2,357
County of DuPage Illinois Educational Facilities Revenue VRDB, Benedictine University, Series A, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		3,716		3,716
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Spears G.O., Series DBE-651, (Deutsche Bank A.G. Gtd.), 0.19%, 1/9/13(1)		8,007		8,007
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Spears Revenue Bonds, Series DBE-660 (Deutsche Bank A.G. Gtd.), 0.28%, 1/9/13(1)		9,136		9,136
Illinois Development Finance Authority IDR VRDB, Institution Gas Technology Project, (Harris Bankcorp, Inc. LOC), 0.14%, 1/9/13		1,100		1,100
Illinois Development Finance Authority Revenue VRDB, Evanston Northwestern, Series B, 0.13%, 1/2/13		4,420		4,420
Illinois Development Finance Authority Revenue VRDB, Jewish Council Youth Services, Series B, (Harris Bankcorp, Inc. LOC), 0.14%, 1/9/13		2,540		2,540
Illinois Development Finance Authority Revenue VRDB, Little City Foundation, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/9/13		3,420		3,420
Illinois Development Finance Authority Revenue VRDB, North Shore Senior Center Project, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/9/13		7,000		7,000
Illinois Development Finance Authority Revenue VRDB, Wheaton Academy Project, (Harris Bankcorp, Inc. LOC), 0.17%, 1/9/13		9,000		9,000
Illinois Educational Facilities Authority Revenue VRDB, Aurora University, (Harris Bankcorp, Inc. LOC), 0.13%, 1/9/13		13,200		13,200
Illinois Educational Facilities Authority Revenue VRDB, Benedictine University Project, Series A, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		9,700		9,700
Illinois Educational Facilities Authority Revenue VRDB, The Adler Planetarium, (FHLB of Boston LOC), 0.11%, 1/9/13		6,000		6,000
Illinois Educational Facilities Authority Student Housing Revenue VRDB, IIT State, Series A, (Harris Bankcorp, Inc. LOC), 0.17%, 1/9/13		19,140		19,140
Illinois Finance Authority Revenue VRDB, All Saints Catholic, Series A, (Harris Bankcorp, Inc. LOC), 0.14%, 1/9/13		8,800		8,800
Illinois Finance Authority Revenue VRDB, Benedictine University Project, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		5,460		5,460
Illinois Finance Authority Revenue VRDB, Community Action Partnership, (Citibank N.A. LOC), 0.17%, 1/9/13		5,090		5,090
Illinois Finance Authority Revenue VRDB, Evanston Northwestern, Series C, 0.08%, 1/2/13		10,000		10,000
Illinois Finance Authority Revenue VRDB, IIT Research Institute, (JPMorgan Chase Bank N.A. LOC), 0.13%, 1/9/13		7,060		7,060

NORTHERN FUNDS QUARTERLY REPORT    7    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Illinois - 5.1% continued
Illinois Finance Authority Revenue VRDB, Landing at Plymouth Place, Series C, (Bank of America N.A. LOC), 0.14%, 1/9/13	$	6,255	$	6,255
Illinois Finance Authority Revenue VRDB, Nazareth Academy Project, (Harris Bankcorp, Inc. LOC), 0.15%, 1/9/13		5,000		5,000
Illinois Finance Authority Revenue VRDB, Robert Morris College, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/9/13		8,130		8,130
Illinois Finance Authority Revenue VRDB, University of Chicago Medical, Series D-1, (PNC Bancorp, Inc. LOC), 0.10%, 1/2/13		15,700		15,700
Illinois Finance Authority Revenue VRDB, University of Chicago Medical, Series D-2, (PNC Bancorp, Inc. LOC), 0.10%, 1/2/13		29,500		29,500
Illinois Multifamily Housing Development Authority Revenue VRDB, Alden Gardens Bloomingdale, (Harris Bankcorp, Inc. LOC), 0.14%, 1/9/13		6,805		6,805
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series A-2, (AGM Corp. Insured), 0.17%, 1/9/13		11,000		11,000
Illinois State Toll Highway Authority Revenue VRDB, Senior Priority, Series A-1A, (Citibank N.A. LOC), 0.12%, 1/9/13		54,700		54,700
Lisle Illinois Multifamily Housing Revenue Bonds, Ashley of Lisle Project, (FHLMC LOC) 0.16%, 1/9/13		26,525		26,525
Quad Cities Regional EDA Illinois Revenue Bonds, Augustana College, (Harris Bankcorp, Inc. LOC), 0.12%, 1/9/13		14,300		14,300
University of Illinois Revenue Refunding VRDB, UIC South Campus Development, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/9/13		9,000		9,000
University of Illinois Revenue VRDB, Auxiliary Facilities Systems, 0.13%, 1/9/13		7,715		7,715
Wells Fargo Stage Trust Revenue Bonds, Floater Certificates, Series 2C, 0.16%, 1/9/13(1)		12,965		12,965
				374,496
Indiana - 2.5%
County of Tippecanoe Indiana Revenue VRDB, Faith Property, Inc. Project, (JPMorgan Chase Bank N.A. LOC) 0.12%, 1/9/13		5,215		5,215
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Spears Revenue Bonds, (Deutsche Bank A.G. Gtd.), 0.23%, 1/9/13(1)		9,190		9,190
East Porter County Indiana School Building Corp. Revenue Bonds, Series DB-145, (Deutsche Bank A.G. Insured), 0.23%, 1/9/13(1) (2)		5,595		5,595
Eclipse Funding Trust Revenue Bonds, (U.S. Bank N.A. LOC), 0.13%, 1/9/13(1)		9,400		9,400
Indiana Development Finance Authority Revenue Bonds, Archer-Daniels- Midland Co., 0.20%, 1/9/13		8,000		8,000
Indiana Finance Authority Environmental Revenue Refunding VRDB, Duke Energy Project, Series A-4, (Bank of America N.A. LOC), 0.10%, 1/2/13		23,600		23,600
Indiana Finance Authority Environmental Revenue Refunding VRDB, Series A3, Duke Energy Industry Project, (Mizuho Corporate Bank Ltd. LOC), 0.14%, 1/9/13		15,425		15,425
Indiana Finance Authority Industrial Revenue Development Revenue Bonds, Midwest Fertilizer Corp. Project, (U.S. Treasury Escrowed), 0.20%, 7/1/13		70,000		70,000
Indiana Finance Authority Revenue VRDB, Series E4, Ascension Health, 0.12%, 1/9/13		5,000		5,000
Indiana Municipal Power Agency Power Supply Systems Revenue Bonds, Series A, (Berkshire Hathaway, Inc. Insured), 0.17%, 1/9/13(1)		15,230		15,230

MONEY MARKET FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Indiana - 2.5% continued
Indiana Municipal Power Agency Revenue VRDB, ROCS-RR-II-R-592PB, 0.15%, 1/9/13(1)	$	15,475	$	15,475
				182,130
Iowa - 1.3%
Iowa Finance Authority Economic Development Revenue VRDB, Iowa West Foundation Project, (U.S. Bank N.A. LOC), 0.13%, 1/9/13		2,645		2,645
Iowa Finance Authority Health Facilities Revenue VRDB, Great River Medical Center Project, (JPMorgan Chase & Co. LOC), 0.15%, 1/2/13		5,050		5,050
Iowa Finance Authority Midwestern Disaster Area Revenue Bonds, Iowa Fertilizer Co. Project, (U.S. Treasury Escrowed), 0.18%, 4/12/13		45,000		45,000
Iowa Finance Authority Midwestern Disaster Area Revenue VRDB, Archer-Daniels-Midland, 0.20%, 1/9/13		19,000		19,000
Iowa Finance Authority Private College Revenue VRDB, Morningside College Project, (U.S. Bank N.A. LOC), 0.14%, 1/2/13		3,000		3,000
Iowa Higher Education Loan Authority College Facilities Revenue VRDB, Loras College Project, (Bank of America N.A. LOC), 0.11%, 1/2/13		11,850		11,850
Iowa Higher Education Loan Authority Revenue VRDB, Private College, (Bank of America N.A. LOC), 0.11%, 1/2/13		2,500		2,500
Urbandale Iowa IDR VRDB, Aurora Bus Park, (FHLB LOC) 0.15%, 1/9/13		8,600		8,600
				97,645
Kansas - 0.3%
Kansas State Department of Transportation Highway Revenue Refunding Bonds, Series B-1, 0.10%, 1/9/13		20,880		20,880
Kentucky - 1.4%
Boyle County Kentucky Hospital Revenue VRDB, Ephraim McDowell Health Project, (Branch Banking & Trust Co. LOC), 0.12%, 1/9/13		13,600		13,600
County of Hardin Kentucky Industrial Building Revenue Refunding Bonds, Refunding and Improvement, St. James Group, (FHLB LOC), 0.10%, 1/9/13		8,800		8,800
Fort Mitchell Kentucky League of Cities Funding Trust Lease Program VRDB, Series A, (U.S. Bank N.A. LOC), 0.13%, 1/9/13		10,700		10,700
Kentucky Economic Development Finance Authority Revenue Refunding VRDB, Retirement Housing Foundation, Series B, (KBC Groep N.V. LOC), 0.11%, 1/9/13		7,705		7,705
Kentucky Economic Development Finance Authority Revenue VRDB, Baptist Healthcare System, Series B-1 (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/2/13		14,130		14,130
Kentucky Economic Development Finance Authority Revenue VRDB, Baptist Healthcare System, Series B-2, (JPMorgan Chase Bank N.A. LOC), 0.13%, 1/2/13		15,000		15,000
Kentucky Economic Development Financial Authority Hospital Facilities Revenue VRDB, Baptist Healthcare Systems, Series B-4, (Branch Banking & Trust Co. LOC), 0.13%, 1/9/13		11,000		11,000
Kentucky Economic Development Financial Authority Medical Center Revenue VRDB, Ashland Hospital Corp., Series A, (Branch Banking & Trust Co. LOC), 0.13%, 1/9/13		5,600		5,600

NORTHERN FUNDS QUARTERLY REPORT    9    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Kentucky - 1.4% continued
Kentucky Economic Development Financial Authority Revenue Refunding VRDB, Retirement Housing Foundation, Series A-1A, (KBC Groep N.V. LOC), 0.11%, 1/9/13	$	8,030	$	8,030
Morehead Kentucky League of Cities Funding Trust Lease Program Revenue VRDB, Series A, (U.S. Bank N.A. LOC), 0.13%, 1/9/13		7,382		7,382
				101,947
Louisiana - 1.7%
East Baton Rouge Parish IDB Revenue VRDB, Exxonmobil Project, Series B, 0.09%, 1/2/13		40,400		40,400
Eclipse Funding Trust Revenue VRDB, Solar Eclipse, 2007-0059 (U.S. Bank N.A. LOC), 0.12%, 1/2/13(1)		19,460		19,460
Lake Charles Harbor & Terminal District Revenue Bonds, Lake Charles Clean Energy LLC, (U.S. Treasury Escrowed), 0.19%, 7/1/13		60,000		60,000
Louisiana State Offshore Terminal Authority Deepwater Port Revenue Refunding VRDB, Series B, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/9/13		5,700		5,700
				125,560
Maryland - 2.4%
Anne Arundel County Maryland Revenue VRDB, Key School Facility, Series A, (M&T Bank Corp. LOC), 0.18%, 1/9/13(1)		8,635		8,635
Baltimore County Maryland Revenue VRDB, Maryvale Prep School Facility, Series A, (M&T Bank Corp. LOC), 0.18%, 1/9/13		3,700		3,700
Baltimore County Maryland Revenue VRDB, Notre Dame Preparatory School, (M&T Bank Corp. LOC), 0.16%, 1/9/13		4,130		4,130
Eclipse Funding Trust Revenue Bonds, 2006-0154, Solar Eclipse, Maryland, (U.S. Bank N.A. LOC), 0.14%, 1/9/13(1)		27,900		27,900
Maryland Health & Higher Educational Facilities Authority Revenue VRDB, University of Maryland Medical System, Series E, (Bank of Montreal LOC), 0.12%, 1/9/13		4,000		4,000
Maryland State Community Development Administration Department Housing & Community Development Revenue VRDB, Series A, Multifamily Housing Development, (FHLMC Insured), 0.12%, 1/9/13		16,950		16,950
Maryland State Economic Development Corp. Revenue Refunding Bonds, Jenkins Memorial, Inc., (M&T Bank Corp. LOC), 0.13%, 1/9/13		2,200		2,200
Maryland State Economic Development Corp. Revenue VRDB, Opportunity Builders Facility, (Manufacturers & Traders Trust Co. LOC), 0.18%, 1/9/13		5,570		5,570
Maryland State Health & Higher Educational Facilities Authority Revenue VRDB, Adventist Healthcare, Series A, (Bank of America N.A. LOC), 0.12%, 1/9/13		78,000		78,000
Montgomery County Maryland Housing Opportunities Commission Multifamily Housing Development Revenue VRDB, Series C, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		1,000		1,000
Prince Georges County Maryland Revenue Refunding VRDB, Collington Episcopal, Series A, (Bank of America N.A. LOC), 0.14%, 1/9/13		26,350		26,350
				178,435
Massachusetts - 2.8%
BB&T Municipal Trust Revenue Bonds, Series A, (Branch Banking & Trust Co. LOC), 0.12%, 1/9/13(1)		16,325		16,325

MONEY MARKET FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Massachusetts - 2.8% continued
Commonwealth of Massachusetts G.O. RANS, Series A, 2.00%, 4/25/13	$	8,250	$	8,297
Commonwealth of Massachusetts G.O. VRDB, Consolidation Loan, Series B, 0.13%, 1/2/13		10,535		10,535
Commonwealth of Massachusetts G.O. VRDB. Consolidation Loan, Series A, 0.11%, 1/2/13		33,685		33,685
Massachusetts Development Finance Agency Revenue VRDB, Briarwood Retirement, (Manufacturers & Traders Trust Co. LOC), 0.10%, 1/9/13		6,000		6,000
Massachusetts Development Finance Agency Revenue VRDB, Series A, Masonic Nursing Home, (Manufacturers & Traders Trust Co. LOC), 0.15%, 1/9/13		9,775		9,775
Massachusetts State Development Finance Agency Revenue VRDB, Abby Kelley Foster Public School, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		4,400		4,400
Massachusetts State Development Finance Agency Revenue VRDB, Credit-Wilber School Apartments, Series A, (FHLB of Atlanta LOC), 0.12%, 1/9/13		5,240		5,240
Massachusetts State Development Finance Agency Revenue VRDB, Groton School, 0.12%, 1/9/13		9,500		9,500
Massachusetts State Development Finance Agency Revenue VRDB, Northfield, Mount Hermon, (JPMorgan Chase Bank N.A. LOC), 0.13%, 1/9/13		63,855		63,855
Massachusetts State Development Finance Agency Revenue VRDB, Phillips Academy, 0.11%, 1/9/13		14,600		14,600
Massachusetts State Development Finance Agency Revenue VRDB, Seven Hills Foundation, Series A, (TD Banknorth, Inc. LOC), 0.11%, 1/9/13		3,800		3,800
RBC Municipal Products, Inc. Trust G.O. Floater Certificates, Series E-32, (Royal Bank of Canada LOC), 0.13%, 1/9/13(1) (2)		19,900		19,900
				205,912
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), 0.12%, 1/9/13		11,185		11,185
Ann Arbor Michigan Economic Development Corp. Limited Obligations Revenue Refunding Bonds, Glacier Hills, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/9/13		3,715		3,715
Michigan Finance Authority Revenue Notes, State Aid Notes, Series B-1, 2.00%, 8/20/13		12,000		12,121
Michigan Finance Higher Education Facilities Authority Limited Obligation Revenue VRDB, University, (JPMorgan Chase Bank N.A. LOC), 0.14%, 1/9/13		7,875		7,875
Michigan State Strategic Fund Limited Obligation Revenue VRDB, YMCA Metropolitan Detroit Project, (JPMorgan Chase Bank N.A. LOC), 0.14%, 1/9/13		4,200		4,200
Michigan State Strategic Fund Ltd. Obligation Revenue Bonds, Lansing St. Vincent Home Project, (Comerica Insured), 0.12%, 1/9/13		5,200		5,200
Michigan State Strategic Fund Ltd. Obligation Revenue Refunding VRDB, Consumers Energy Co., (Wells Fargo Bank N.A. LOC), 0.14%, 1/9/13		8,700		8,700
Michigan State University Revenue VRDB, 0.15%, 1/9/13		1,000		1,000
Michigan Strategic Fund Limited Obligation Revenue VRDB, Tubelite, Inc. Project, (Comerica LOC), 0.14%, 1/9/13		10,000		10,000

NORTHERN FUNDS QUARTERLY REPORT    11    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Michigan - 1.4% continued
RBC Municipal Products Inc. Trust Revenue Bonds, Floater Certificates, Series L-34, (Royal Bank of Canada LOC), 0.18%, 1/9/13(1)	$	36,545	$	36,545
				100,541
Minnesota - 1.7%
Center City Minnesota Health Care Facilities Revenue VRDB, Hazelden Foundation Project, (U.S. Bank N.A. LOC), 0.14%, 1/9/13		6,700		6,700
Center City Minnesota Health Care Facilities Revenue VRDB, Hazelden Foundation Project, Series 2002, (U.S. Bancorp LOC), 0.14%, 1/9/13		3,900		3,900
City of Edina Minnesota Multifamily Housing Revenue Refunding VRDB, Vernon Terrace Apartments Project, (FHLMC LOC), 0.14%, 1/9/13		5,705		5,705
Fridley Minnesota Senior Housing Refunding VRDB, Banfill Crossing, Series A, (FNMA Insured), 0.14%, 1/9/13		8,085		8,085
Minneapolis Minnesota Revenue VRDB, People Serving People Project, Series B, (U.S. Bank N.A. LOC), 0.14%, 1/2/13		1,525		1,525
Minneapolis Minnesota Student Residence Revenue VRDB, Riverton Community Housing Project, (Bank of America N.A. LOC), 0.14%, 1/9/13		6,485		6,485
Minnesota Higher Education Facilities Authority Revenue VRDB, Series Five-Z, University of St. Thomas, Minnesota, (U.S. Bank N.A. LOC), 0.13%, 1/9/13		1,150		1,150
Minnesota Rural Water Finance Authority, Inc. Revenue Notes, Public Projects Construction Notes, 1.25%, 3/1/13		7,000		7,009
Minnesota School District Capital Equipment Borrowing Program Tax & Aid Anticipation COPS, Series A, Aid Anticipation Certificates of Indebtedness, (Minnesota School Districts Insured), 2.00%, 9/10/13		10,000		10,122
Minnesota State G.O. Refunding VRDB, 0.14%, 1/9/13(1)		25,900		25,900
RBC Municipal Products, Inc. Trust Revenue VRDB, Series E-19, (Royal Bank of Canada LOC), 0.13%, 1/9/13(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), 0.11%, 1/9/13		17,000		17,000
				123,581
Mississippi - 2.0%
Mississippi Business Finance Commission Gulf Opportunity Zone Revenue VRDB, Chevron USA, Inc., Series D, 0.11%, 1/9/13		23,200		23,200
Mississippi Business Finance Corp. Commission Gulf Opportunity Zone Revenue VRDB, Chevron USA, Inc. Project, Series E, 0.11%, 1/2/13		5,000		5,000
Mississippi Business Finance Corp. Commission Gulf Opportunity Zone Revenue VRDB, Chevron USA, Series C, (Chevron Corp. Gtd.), 0.09%, 1/2/13		34,850		34,850
Mississippi Business Finance Corp. Commission Gulf Opportunity Zone Revenue VRDB, Multi-Modal, Peco Foods, Inc. Project, (BMO Harris Bank N.A. LOC), 0.13%, 1/9/13		6,650		6,650
Mississippi Business Finance Corp. Commission Gulf Opportunity Zone Revenue VRDB, Series G, Chevron USA, (Chevron Corp. Gtd.), 0.11%, 1/2/13		9,500		9,500
Mississippi Business Finance Corp. Mississippi Business Finance Commission Gulf Opportunity Zone Revenue VRDB, Chevron USA Inc. Project, Series C, (Chevron Corp. Gtd.), 0.10%, 1/2/13		6,525		6,525

MONEY MARKET FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Mississippi - 2.0% continued
Mississippi Business Finance Corp. Mississippi Business Finance Commission Gulf Opportunity Zone VRDB, Chevron USA Inc. Project, Series B (Chevron Corp. Gtd.), 0.09%, 1/2/13	$	5,000	$	5,000
Mississippi Business Finance Corp. Revenue VRDB, Chevron USA, Inc., Series H, (Chevron Corp. Gtd.), 0.09%, 1/2/13		4,430		4,430
Mississippi Business Finance Corp. Revenue VRDB, Mississippi State Business Finance Commission Gulf Opportunity Zone, Chevron USA, Inc., Series D, (Chevron Corp. Gtd.), 0.10%, 1/2/13		8,750		8,750
Mississippi Business Finance Corp. Revenue VRDB, Mississippi State Business Finance Commission Gulf Opportunity Zone, Chevron USA, Inc., Series E, (Chevron Corp. Gtd.), 0.10%, 1/2/13		5,000		5,000
Mississippi Hospital Equipment & Facilities Authority Revenue VRDB, North Mississippi, Series 1, 0.13%, 1/9/13		11,170		11,170
Mississippi Hospital Equipment & Facilities Authority Revenue VRDB, Series 1, North Mississippi Health Services, 0.11%, 1/9/13		25,000		25,000
				145,075
Missouri - 2.6%
Florissant Missouri IDA Revenue Refunding VRDB, Retirement Housing Foundation, (KBC Groep N.V. LOC), 0.11%, 1/9/13		5,645		5,645
Kansas City Missouri IDA Multifamily Housing Revenue Refunding VRDB, Woodlands Partners Project, (FNMA LOC), 0.13%, 1/9/13		4,045		4,045
Missouri State Health & Educational Facilities Authority Health Facilities Revenue VRDB, SSM Health Care, Series C5, 0.11%, 1/9/13		8,600		8,600
Missouri State Health & Educational Facilities Authority Revenue VRDB, Ascension Health Senior, Series C4, 0.12%, 1/9/13		10,450		10,450
Missouri State Health & Educational Facilities Authority Revenue VRDB, BJC Health System, Series A, 0.11%, 1/2/13		14,240		14,240
Missouri State Health & Educational Facilities Authority Revenue VRDB, BJC Health System, Series B, 0.11%, 1/2/13		17,185		17,185
Missouri State Health & Educational Facilities Authority Revenue VRDB, Pooled Hospital Freeman Health Systems, Series C, (KBC Groep N.V. LOC), 0.11%, 1/9/13		6,075		6,075
Missouri State Health & Educational Facilities Authority Revenue VRDB, Saint Louis Priory School Project, (U.S. Bank N.A. LOC), 0.18%, 1/9/13		1,100		1,100
Missouri State Health & Educational Facilities Authority Revenue VRDB, Series C-2, Ascension Health, 0.12%, 1/9/13		8,300		8,300
Missouri State Health & Educational Facilities Authority Revenue VRDB, SSM Health Care, Series E, (PNC Bancorp, Inc. LOC), 0.10%, 1/2/13		57,535		57,535
Platte County Missouri IDA Multifamily Revenue Refunding Bonds, Wexford Place Project, (FHLMC Gtd.), 0.16%, 1/9/13(1)		7,030		7,030
RBC Municipal Products Inc. Trust Revenue Bonds, Floater Certificates, Series E-40, Related to Missouri, (Royal Bank of Canada LOC), 0.15%, 1/9/13(1)		18,000		18,000
St. Charles County Missouri IDA Revenue Refunding VRDB, Casalon Apartments Project, (FNMA Gtd.), 0.13%, 1/9/13		6,170		6,170

NORTHERN FUNDS QUARTERLY REPORT    13    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Missouri - 2.6% continued
St. Charles County Missouri IDA Revenue Refunding VRDB, Country Club Apartments Project, (FNMA LOC), 0.13%, 1/9/13	$	21,000	$	21,000
St. Charles County Missouri IDA Revenue Refunding VRDB, Remington Apartments Project, (FNMA Gtd.), 0.13%, 1/9/13		10,700		10,700
				196,075
Nebraska - 1.0%
Central Plains Energy Project Nebraska Gas Project VRDB, Project No. 2, 0.13%, 1/9/13		24,400		24,400
Central Plains Gas Energy Project Revenue Bonds, Series 91TP, (Branch Banking & Trust Co. LOC), 0.14%, 1/9/13(1)		5,000		5,000
Deutsche Bank Spears/Lifers Trust Revenue Bonds, Series DBE-1101, (Deutsche Bank A.G. Gtd.), 0.18%, 1/9/13(1)		10,000		10,000
Douglas County Nebraska Hospital Authority Revenue Refunding VRDB, Children’s Health Facilities, Series A, (U.S. Bank N.A. LOC), 0.14%, 1/2/13		5,120		5,120
Omaha Public Power District Nebraska Separate Electrical Revenue Bonds, Series 2-A, (Berkshire Hathaway, Inc. Insured), 0.14%, 1/9/13(1)		27,760		27,760
				72,280
Nevada - 0.4%
Carson City Nevada Hospital Revenue VRDB, Carson Tahoe Hospital Project, Series B, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		3,500		3,500
Carson City Nevada Hospital Revenue VRDB, Carson Tahoe Regional Medical Center, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		8,420		8,420
City of Las Vegas Nevada Economic Development Revenue VRDB, Series A, Keep Memory Alive Project, (Bank of New York Mellon Corp. LOC), 0.11%, 1/9/13		20,000		20,000
				31,920
New Hampshire - 1.3%
New Hampshire Business Finance Authority Revenue VRDB, Taylor Home, Series E, (TD Banknorth, Inc. LOC) 0.12%, 1/9/13		7,260		7,260
New Hampshire Health & Education Facilities Authority Revenue VRDB, Easter Seals New Hampshire, Series A, (FHLB of Boston LOC), 0.13%, 1/9/13		10,160		10,160
New Hampshire Health & Education Facilities Authority Revenue VRDB, Kendal At Hanover, (FHLB of Boston LOC), 0.14%, 1/9/13		2,950		2,950
New Hampshire Health & Education Facilities Authority Revenue VRDB, Phillips Exeter Academy, 0.13%, 1/9/13		25,000		25,000
New Hampshire Health & Education Facilities Authority Revenue VRDB, University of New Hampshire, Series B-2, 0.13%, 1/2/13		8,500		8,500
New Hampshire Health & Educational Facilities Authority Revenue VRDB, Tilton School, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		15,750		15,750
New Hampshire Health & Educational Facilities Authority Revenue VRDB, Southern New Hampshire University, Series C, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		17,000		17,000
New Hampshire Higher Educational and Health Facilities Authority Revenue Bonds, Hunt Community Issue, (TD Banknorth, Inc. LOC), 0.10%, 1/9/13		9,025		9,025
				95,645

MONEY MARKET FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
New Jersey - 0.0%
BB&T Municipal Trust Revenue Bonds, Series 2047, (Branch Banking & Trust Co. LOC), 0.14%, 1/9/13(1)	$	325	$	325
New Jersey EDA Revenue Refunding VRDB, Series B, Cranes Mill Project, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		270		270
New Jersey EDA Revenue VRDB, Cranes Mill Project, Series B, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		940		940
New Jersey EDA Revenue VRDB, Morris Museum Project, (JPMorgan Chase Bank N.A. LOC), 0.09%, 1/9/13		1,470		1,470
				3,005
New Mexico - 1.5%
New Mexico Municipal Energy Acquisition Authority Gas Supply Revenue VRDB, Series B, 0.13%, 1/9/13		74,600		74,600
New Mexico State Hospital Equipment Loan Council Revenue VRDB, Presbyterian Healthcare, Series B, 0.15%, 1/9/13		17,000		17,000
Series C, 0.12%, 1/9/13		20,100		20,100
				111,700
New York - 11.1%
BB&T Municipal Trust Revenue VRDB, (Branch Banking & Trust Co. LOC), 0.19%, 1/9/13(1)		12,380		12,380
City of New York G.O. VRDB, Subseries A-4, (Sumitomo Mitsui Banking Corp. LOC), 0.11%, 1/9/13		9,500		9,500
City of New York G.O., Subseries E5, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/2/13		8,300		8,300
City of New York G.O., Subseries G-6, (Mizuho Corporate Bank Ltd. LOC), 0.10%, 1/2/13		9,900		9,900
City of New York, New York G.O. Subseries D-3, (Bank of New York Mellon LOC), 0.12%, 1/2/13		29,005		29,005
Cohoes Industrial Development Agency Urban Cultural Park Facilities Revenue VRDB, Eddy Cohoes Project, (Bank of America N.A. LOC), 0.12%, 1/9/13		2,005		2,005
Housing Development Corp. New York City Multifamily Housing Revenue VRDB, Royal Properties, Series A, (FNMA Insured), 0.11%, 1/9/13		30,000		30,000
Metropolitan Transportation Authority New York Revenue VRDB, Subseries E-2, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/9/13		10,000		10,000
Metropolitan Transportation Authority New York Revenue VRDB, Subseries E-3, (PNC Bancorp, Inc. LOC), 0.09%, 1/2/13		28,800		28,800
Monroe County New York Industrial Development Corp. Revenue VRDB, St. Ann’s Nursing Home, (HSBC Bank USA N.A. LOC), 0.15%, 1/9/13		4,710		4,710
Monroe Security & Safety Systems Local Development New York Revenue VRDB, (M&T Bank Corp. LOC), 0.13%, 1/9/13		53,035		53,035
Nassau Health Care Corp. Revenue VRDB, Series B-1, (TD Banknorth, Inc. LOC) 0.12%, 1/9/13		2,980		2,980
New York City G.O. VRDB, Subseries I-8, 0.12%, 1/2/13		15,000		15,000
New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, 2nd Generation, Series AA-1, 0.09%, 1/2/13		44,000		44,000
New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Fiscal, Subseries B-3, 0.10%, 1/2/13		9,500		9,500

NORTHERN FUNDS QUARTERLY REPORT    15    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
New York - 11.1% continued
New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, New York City Water, Series AA-2, 0.11%, 1/9/13	$	30,000	$	30,000
New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Subseries A-1, 0.09%, 1/2/13		7,565		7,565
New York City New York G.O., Subseries G-4, (PNC Bancorp, Inc. LOC), 0.09%, 1/2/13		45,500		45,500
New York City New York Industrial Development Agency Civic Facilities Revenue VRDB, Sephardic Community Youth Center, (Manufacturers & Traders Trust Co. LOC), 0.18%, 1/9/13		2,000		2,000
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds TRANS, Subseries-A-7, 0.10%, 1/9/13		28,000		28,000
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries A-5, 0.10%, 1/2/13		4,000		4,000
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries C-4, 0.12%, 1/2/13		10,000		10,000
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding TRANS, Series A-2A, (Bank of Tokyo-Mitsubishi UFJ Ltd. LOC), 0.11%, 1/1/13		12,000		12,000
New York City Transitional Finance Authority Future Tax Secured Revenue VRDB, Series C5, Future Tax, Fiscal, 0.11%, 1/9/13		23,000		23,000
New York Liberty Development Corp. Revenue Refunding VRDB, Series A, 3 World Trade Center, (U.S. Treasury Escrowed), 0.25%, 5/22/13		136,550		136,550
New York State Dormitory Authority Revenue Non-State Supported Debt VRDB, Samaritan Medical Center, Series B, (HSBC Bank USA N.A. LOC), 0.12%, 1/9/13		9,105		9,105
New York State Dormitory Authority Revenues Non State Supported Debt VRDB, University of Rochester, Series A-1, (Wells Fargo Bank N.A. LOC), 0.12%, 1/9/13		25,180		25,180
New York State Dormitory Authority Revenues State Supported Debt VRDB, City University, Series D, (Toronto-Dominion Bank LOC), 0.12%, 1/9/13		13,800		13,800
New York State Energy Research & Development Authority Revenue Bonds, Subseries A-4, (Bank of Nova Scotia LOC) 0.12%, 1/9/13		11,600		11,600
New York State Housing Finance Agency Revenue VRDB, 100 Maiden Lane, Series A, (FNMA Insured) 0.15%, 1/9/13		40,885		40,885
New York State Housing Finance Agency Revenue VRDB, Affordable Housing, Clinton Park Phase II, Series E-31 (Wells Fargo Bank N.A. LOC), 0.13%, 1/9/13		15,000		15,000
New York State Housing Finance Agency Revenue VRDB, Housing West 29th Street, Series A, (Wells Fargo Bank N.A. LOC), 0.10%, 1/9/13		10,000		10,000
New York State Housing Finance Agency Revenue VRDB, Housing, Dock Street, Series A, (Wells Fargo & Co. LOC), 0.13%, 1/9/13		12,400		12,400
Onondaga County New York Industrial Development Agency Civic Facilities Revenue VRDB, Syracuse Research Corp. Project, (M&T Bank Corp. LOC), 0.18%, 1/9/13		6,450		6,450
RBC Municipal Products, Inc. Trust New York Revenue Bonds, Floater Certificates Series E-33, (Escrowed) 0.33%, 1/9/13(1)		38,000		38,000

MONEY MARKET FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
New York - 11.1% continued
Suffolk County New York Industrial Development Agency Revenue VRDB, St. Anthony’s High School Civic, (U.S. Bank N.A. LOC), 0.11%, 1/9/13	$	14,805	$	14,805
Town of Niagara New York Area Development Corp. Revenue VRDB, Niagara Falls Memorial, (HSBC Bank USA N.A. LOC), 0.12%, 1/9/13		7,310		7,310
Triborough Bridge & Tunnel Authority New York Revenue VRDB, Series C, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/9/13		23,300		23,300
Wells Fargo Stage Trust Revenue Bonds, Floater Certificates Series 105C, in NY, 0.37%, 12/6/13(1) (2)		25,000		25,000
				820,565
North Carolina - 3.0%
BB&T Municipal Trust Floaters, Series 1036, (Branch Banking & Trust Co. LOC), 0.27%, 1/9/13(1)		4,450		4,450
BB&T Municipal Trust Floaters, Series 1038, (Branch Banking & Trust Co. LOC), 0.29%, 1/9/13(1)		6,975		6,975
City of Raleigh North Carolina COPS VRDB, Downtown, Series B, 0.11%, 1/9/13		36,300		36,300
Forsyth County North Carolina Industrial Facilities Authority Revenue VRDB, Recreation Facilities-YMCA Winston, (Branch Banking & Trust Co. LOC), 0.13%, 1/9/13		1,310		1,310
Guilford County North Carolina G.O. VRDB, Series A, 0.11%, 1/9/13		18,055		18,055
Series B, 0.13%, 1/9/13		4,300		4,300
Mecklenburg County North Carolina COPS VRDB, Series J, 0.13%, 1/9/13		15,720		15,720
North Carolina Capital Facilities Financial Agency Educational Facilities Revenue VRDB, Campbell University, (Branch Banking & Trust Co. LOC), 0.13%, 1/9/13		5,400		5,400
North Carolina Capital Facilities Financial Agency Educational Facilities Revenue VRDB, Rocky Mountain Preparatory School, Series H, (Branch Banking & Trust Co. LOC), 0.13%, 1/9/13		5,700		5,700
North Carolina Capital Facilities Financial Agency Recreational Facilities Revenue VRDB, YMCA Greater Charlotte Project, Series K, (Wachovia Bank N.A. LOC), 0.13%, 1/9/13		12,635		12,635
North Carolina Capital Facilities Financing Agency Revenue VRDB, Duke University Project, Series A, 0.13%, 1/9/13(1)		12,000		12,000
North Carolina Medical Care Commission Health Care Facilities Revenue Refunding VRDB, University Health Systems Eastern, Series B1, (Branch Banking & Trust Co. LOC), 0.12%, 1/9/13		4,400		4,400
North Carolina Medical Care Commission Health Care Facilities Revenue Refunding VRDB, Wakemed, Series C, (Wachovia Bank N.A. LOC), 0.15%, 1/9/13		14,155		14,155
North Carolina Medical Care Commission Health Care Facilities Revenue VRDB, Novant Health Group, Series A, 0.17%, 1/9/13		24,350		24,350
North Carolina Medical Care Commission Hospital Revenue VRDB, Moses Cone Health System, Series A, 0.12%, 1/9/13		20,000		20,000
Raleigh Durham North Carolina Airport Authority Revenue Refunding VRDB, Series C, (FHLB LOC), 0.14%, 1/9/13		10,400		10,400
University of North Carolina Chapel Hill Revenue Refunding VRDB, Series A, 0.14%, 1/9/13(1)		5,800		5,800

NORTHERN FUNDS QUARTERLY REPORT    17    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
North Carolina - 3.0% continued
Winston-Salem North Carolina Water & Sewer Systems Revenue Refunding VRDB, Series C, 0.11%, 1/9/13	$	19,540	$	19,540
				221,490
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), 0.12%, 1/9/13		13,045		13,045
Athens County Ohio Port Authority Housing Revenue VRDB, University Housing For Ohio, Inc. Project, (Wachovia Bank N.A. LOC), 0.12%, 1/9/13		26,750		26,750
Cleveland-Cuyahoga County Ohio Port Authority Revenue VRDB, Euclid Avenue Housing Corp. Project, (U.S. Bank N.A. LOC), 0.13%, 1/9/13		5,000		5,000
Cleveland-Cuyahoga County Port Authority Cultural Facilities Revenue VRDB, Playhouse Square Foundation Project, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		9,175		9,175
County of Allen Ohio Hospital Facilities Revenue VRDB, Catholic Healthcare, (JPMorgan Chase & Co. LOC), 0.14%, 1/9/13		5,000		5,000
Cuyahoga County Ohio Hospital Revenue VRDB, Improvement, Metrohealth Systems Project, (PNC Bancorp, Inc. LOC), 0.11%, 1/9/13		22,410		22,410
Deutsche Bank Spears/Lifers Trust Revenue Bonds, Series DBE-1097, (Deutsche Bank A.G. Gtd.), 0.18%, 1/9/13(1)		13,965		13,965
Franklin County Ohio Health Care Facilities Revenue VRDB, Friendship Village Dublin, (PNC Bancorp, Inc. LOC), 0.12%, 1/9/13		4,500		4,500
Lancaster Port Authority Ohio Gas Revenue VRDB, 0.13%, 1/9/13		5,760		5,760
Montgomery County Ohio Economic Development Revenue VRDB, The Dayton Art Institute, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		4,900		4,900
Ohio Air Quality Development Authority Ohio Revenue Refunding VRDB, Series B, Pollution, First Energy, (UBS A.G. LOC) 0.14%, 1/9/13		25,100		25,100
Ohio Multifamily Housing Finance Agency Revenue VRDB, Chambrel at Montrose, Series F, (FNMA LOC), 0.13%, 1/9/13		12,051		12,051
Ohio State Water Development Authority Revenue Refunding VRDB, Firstenergy Generation, Series A (UBS A.G. LOC), 0.14%, 1/9/13		72,240		72,240
Richland County Ohio Health Care Facilities Revenue Refunding Bonds, Wesleyan Senior Living, Series A, (JPMorgan Chase Bank N.A. LOC), 0.13%, 1/9/13		3,260		3,260
State of Ohio G.O., Series B, 0.11%, 1/9/13		30,090		30,090
Warren County Ohio Health Care Facilities Revenue VRDB, Otterbein Homes Project, (U.S. Bank N.A. LOC), 0.13%, 1/9/13		6,500		6,500
				259,746
Oklahoma - 1.5%
Oklahoma Turnpike Authority Revenue Refunding VRDB, Second Series F, 0.13%, 1/2/13		17,880		17,880
RBC Municipal Products Inc. Trust Revenue Bonds, Floater Certificates, Series E-37 for Oklahoma, (Royal Bank of Canada LOC) 0.13%, 1/9/13(1)		96,155		96,155
				114,035
Oregon - 0.6%
Oregon Health & Science University Revenue VRDB, Series B-2, (Union Bank N.A. LOC), 0.13%, 1/9/13		10,000		10,000

MONEY MARKET FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Oregon - 0.6% continued
Oregon Health & Science University Revenue VRDB, Series B-3, (Union Bank N.A. LOC), 0.12%, 1/2/13	$	9,510	$	9,510
Oregon State Facilities Authority Revenue VRDB, Hazelden Springbrook Project, Series A, (U.S. Bancorp LOC), 0.14%, 1/9/13		3,700		3,700
Oregon State Facilities Authority Revenue VRDB, Quatama Crossing Housing, Series O, (FNMA LOC), 0.16%, 1/9/13		18,130		18,130
Oregon State Health Housing Educational & Cultural Facilities Authority Revenue VRDB, The Evangelical Lutheran, Series A, (U.S. Bank N.A. LOC), 0.17%, 1/9/13		2,000		2,000
Oregon State Health, Housing, Educational & Cultural Facilities Authority Revenue Bonds, Assumption Village Project, Series A, (Key Bank N.A. LOC), 0.14%, 1/9/13		3,060		3,060
				46,400
Pennsylvania - 4.6%
Allegheny County IDA Revenue VRDB, Education Center Watson, (PNC Bancorp, Inc. LOC), 0.12%, 1/9/13		4,300		4,300
BB&T Municipal Trust Revenue Bonds, Series 228, (Branch Banking & Trust Co. LOC), 0.16%, 1/9/13(1)		24,810		24,810
Beaver County IDA Revenue Refunding VRDB, Firstenergy Generation, (UBS A.G. LOC), 0.14%, 1/9/13		10,000		10,000
Bucks County IDA Revenue VRDB, Grand View Hospital, Series A, (TD Banknorth, Inc. LOC), 0.11%, 1/9/13		2,235		2,235
Butler County Pennsylvania IDA Revenue Refunding VRDB, Concordia Lutheran, Series A, (Bank of America N.A. LOC), 0.12%, 1/9/13		15,640		15,640
Butler County Pennsylvania IDA Revenue VRDB, Concordia Lutheran, Series A, (Bank of America N.A. LOC), 0.12%, 1/9/13		9,760		9,760
City of Philadelphia Pennsylvania Gas Works Revenue Refunding VRDB, (PNC Bancorp, Inc. LOC), 0.11%, 1/9/13		10,100		10,100
County of Montgomery Pennsylvania G.O., Series A, 0.10%, 1/2/13		25,390		25,390
Delaware County Pennsylvania Authority Revenue VRDB, Riddle Village Project (Banco Santander S.A. LOC), 0.14%, 1/9/13		5,200		5,200
Haverford Township Pennsylvania G.O., School District, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		7,900		7,900
Horizon Hospital System Authority Pennsylvania Health & Housing Facilities Revenue VRDB, Senior, St. Paul Homes Project, (M&T Bank Corp. LOC), 0.18%, 1/9/13		7,340		7,340
Lancaster Pennsylvania IDA Revenue VRDB, Mennonite Home Project, (M&T Bank Corp. LOC), 0.18%, 1/9/13		5,600		5,600
Lower Merion Pennsylvania School District G.O. VRDB, Capital Project, Series A, (State Street Bank & Trust Co. LOC), 0.11%, 1/9/13		12,400		12,400
Series B, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		11,000		11,000
Pennsylvania Economic Development Financing Authority Revenue VRDB, Series C, Unemployment Compensation, (PNC Bancorp, Inc. LOC), 0.11%, 1/9/13		25,000		25,000
Pennsylvania Higher Educational Facilities Authority Revenue VRDB, Holy Family University, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		9,605		9,605

NORTHERN FUNDS QUARTERLY REPORT    19    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Pennsylvania - 4.6% continued
Pennsylvania Multifamily Housing Finance Agency Revenue VRDB, Special Limited Obligation, Foxwood, (Bank of America N.A. LOC), 0.12%, 1/9/13	$	3,200	$	3,200
Pennsylvania State Turnpike Commission Multi-Modal Revenue Refunding VRDB, Series A-1, 0.14%, 1/9/13		27,400		27,400
Pennsylvania State Turnpike Commission Revenue Refunding VRDB, Series A-2, 0.19%, 1/9/13		7,420		7,420
Philadelphia School District G.O. Revenue Refunding VRDB, Series G, (Wells Fargo Bank N.A. LOC), 0.14%, 1/9/13		25,000		25,000
Philadelphia School District Pennsylvania Revenue Refunding G.O. VRDB, Series C, (TD Banknorth, Inc. LOC), 0.11%, 1/9/13		2,295		2,295
RBC Municipal Products, Inc. Trust Floater Certificates G.O., (Royal Bank of Canada LOC), 0.13%, 1/9/13(1)		5,900		5,900
RBC Municipal Products, Inc. Trust Floater Certificates Revenue Bonds, Series B, (Royal Bank of Canada LOC), 0.13%, 1/9/13(1)		6,000		6,000
RBC Municipal Products, Inc. Trust Pennsylvania Revenue Bonds, Floater Certificates Series E-34, (Escrowed) 0.33%, 1/9/13(1)		65,000		65,000
Southcentral Pennsylvania General Authority Revenue VRDB, Hanover Lutheran Village Project, (M&T Bank Corp. LOC), 0.18%, 1/9/13(1)		7,960		7,960
West Cornwall Pennsylvania Township Municipal Authority Revenue VRDB, Series 2006, Senior Living Facility Lebanon Valley, (PNC Bancorp, Inc. LOC), 0.12%, 1/9/13		3,900		3,900
				340,355
Puerto Rico - 0.2%
BB&T Municipal Trust Special Tax Bonds, Series 22, (Branch Banking & Trust Co. LOC), 0.14%, 1/9/13(1)		12,355		12,355
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), 0.14%, 1/9/13		11,995		11,995
South Carolina - 0.6%
Eclipse Funding Trust, G.O., Series 2006-0152, Solar Eclipse, Spartan, (U.S. Bank N.A. LOC), 0.13%, 1/9/13(1)		10,405		10,405
South Carolina Jobs EDA Health Facilities Revenue Refunding VRDB, Episcopal, (Wachovia Bank N.A. LOC), 0.12%, 1/9/13		14,000		14,000
South Carolina Jobs EDA Hospital Revenue VRDB, Oconee Memorial Hospital, Inc., Series B, (Wachovia Bank N.A. LOC), 0.12%, 1/9/13		8,800		8,800
South Carolina State Housing Finance & Development Authority Multifamily Revenue VRDB, Rental Franklin Square, (FHLMC LOC), 0.13%, 1/9/13		9,800		9,800
South Carolina State Housing Financial & Development Authority Multifamily Revenue VRDB, Rental Housing Brookside Apartments, Series D, (FHLMC Gtd.), 0.12%, 1/9/13		4,700		4,700
				47,705
Tennessee - 1.1%
Blount County Tennessee Public Building Authority Revenue VRDB, Local Government Public Improvement, Series E-5-B, (Branch Banking & Trust Co. LOC), 0.13%, 1/9/13		4,815		4,815
Blount County Tennessee Public Building Authority VRDB, Local Government Public Improvement, (Branch Banking & Trust Co. LOC), 0.13%, 1/9/13		11,000		11,000

MONEY MARKET FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Tennessee - 1.1% continued
Metropolitan Government Nashville & Davidson County Tennessee Health & Educational Facilities Board Revenue Refunding VRDB, Multifamily, Timberlake Project, (FNMA Insured), 0.14%, 1/9/13	$	1,150	$	1,150
Metropolitan Government Nashville & Davidson County Tennessee IDB Multifamily Housing Refunding VRDB, Ridgelake Apartments Project, Series G, (FHLMC Gtd.), 0.13%, 1/9/13		5,525		5,525
Metropolitan Government Nashville & Davidson County Tennessee IDB Revenue Refunding Bonds, Multifamily Housing Spinnaker, Series A, (FNMA Gtd.), 0.14%, 1/9/13		13,655		13,655
Metropolitan Government Nashville & Davidson County Tennessee IDB Revenue VRDB, Multifamily Housing, Arbor Knoll, Series A, (FNMA LOC), 0.13%, 1/9/13		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		4,108
Sevier County Tennessee Public Building Authority VRDB, Local Government Public Improvement, Series B-1, (Branch Banking & Trust Co. LOC) 0.13%, 1/9/13		8,200		8,200
Shelby County Tennessee Health Educational & Housing Facilities Board Multifamily Housing Revenue VRDB, Gateway Projects, Series A-1 (FNMA Gtd.), 0.14%, 1/9/13		5,575		5,575
Tennessee State Energy Acquisition Corp. Gas Revenue Floaters, (Branch Banking & Trust Co. LOC), 0.14%, 1/9/13(1)		14,985		14,985
				82,413
Texas - 10.5%
Capital Area Housing Finance Corp. Texas Revenue VRDB, Encino Pointe Apartments, (Bank of America N.A. LOC), 0.13%, 1/9/13		15,595		15,595
Carroll Texas Independent School District G.O. Bonds, School Building, (Texas PSF Gtd.) 0.12%, 1/9/13		11,800		11,800
County of Harris Texas G.O. TANS, 2.00%, 2/28/13		15,000		15,043
Crawford Texas Education Facilities Corp. Revenue Bonds, Prince of Peace Christian School, (Wachovia Bank N.A. LOC), 0.12%, 1/9/13		4,230		4,230
Crawford Texas Education Facilities Corp. Revenue Bonds, Prince of Peace Christian, (Wachovia Bank N.A. LOC), 0.12%, 1/9/13		5,070		5,070
Dallas Texas Waterworks & Sewer Systems Revenue Refunding VRDB, 0.14%, 1/9/13(1)		20,000		20,000
Denton Texas Independent School District G.O. VRDB, School Building, Series B, (Texas PSF Insured), 0.15%, 1/9/13		30,000		30,000
Deutsche Bank Spears/Lifers Trust, Goldman Sachs, Series 526 (Deutsche Bank A.G. LOC), 0.20%, 1/9/13(1)		9,230		9,230
Eclipse Funding Trust, Texas, G.O., Series 2007-0080, Solar Eclipse, (U.S. Bank N.A. LOC), 0.13%, 1/9/13(1)		10,335		10,335
Eclipse Funding Trust, Waco Texas, Revenue Bonds, Series 2007-0040, Solar Eclipse, (U.S. Bank N.A. LOC), 0.13%, 1/9/13(1)		21,205		21,205
Harris County Health Facilities Development Corp. Revenue Refunding VRDB, Methodist Hospital System, Series A-1 0.12%, 1/2/13		51,150		51,150
Harris County Texas Hospital District Revenue Refunding VRDB, Senior Lien, (JPMorgan Chase Bank N.A. LOC), 0.13%, 1/9/13		19,455		19,455
Houston Texas Airport Systems Revenue Refunding VRDB, (Barclays PLC LOC), 0.13%, 1/9/13		20,000		20,000

NORTHERN FUNDS QUARTERLY REPORT    21    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Texas - 10.5% continued
Houston Texas Water & Sewer Systems Revenue Refunding Bonds, Series B, (Branch Banking & Trust Co. LOC), 0.15%, 1/9/13(1)	$	1,300	$	1,300
Kendall County Texas Health Facilities Development Corp. Health Care Revenue VRDB, Morningside Ministries, Series A, (JPMorgan Chase Bank N.A. LOC), 0.16%, 1/9/13		9,910		9,910
Klein Independent School District G.O. Floaters, Series 39TP, (Wells Fargo Bank N.A. LOC), 0.14%, 1/9/13(1)		13,005		13,005
Lower Neches Valley Authority Industrial Development Corp. Revenue Refunding VRDB, Exxonmobil Project, Series A, 0.11%, 1/2/13		5,050		5,050
Lower Neches Valley Texas Authority Industrial Development Corp. Revenue Refunding VRDB, ExxonMobil Project, 0.09%, 1/2/13		26,225		26,225
Lower Neches Valley Texas Authority Industrial Development Corp. Revenue VRDB, ExxonMobil, 0.09%, 1/2/13		9,750		9,750
Lower Neches Valley Texas Authority PCR Bonds, Chevron USA, Inc. Project, (Chevron Corp. Gtd.), 0.23%, 2/15/13		19,100		19,100
Mesquite Independent School District G.O. VRDB, School Building, Series A, (Texas PSF Gtd.), 0.14%, 1/9/13		200		200
North Texas Tollway Authority Variable Rate Demand Obligation, (JPMorgan Chase Bank N.A. LOC), 0.19%, 2/14/13		10,000		10,000
Northwest Texas Independent School District G.O. VRDB, (Texas PSF Insured), 0.14%, 1/9/13		1,425		1,425
Nueces County Health Facilities Development Authority Revenue VRDB, Driscoll Children’s Foundation, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/9/13		9,800		9,800
Port of Port Arthur Navigation District Revenue Refunding VRDB, Motiva Enterprises, Series C, 0.13%, 1/2/13		34,900		34,900
Port of Port Arthur Navigation District Revenue VRDB, Motiva Enterprises, 0.13%, 1/2/13		34,700		34,700
Port of Port Arthur Texas Navigation District Exempt Facilities Revenue VRDB, Total Petrochemicals USA, 0.16%, 1/9/13		7,900		7,900
Port of Port Arthur Texas Navigation District Industrial Development Corp., Exempt Facilities Revenue VRDB, Total Petrochemicals, Series A, 0.16%, 1/9/13		46,565		46,565
RBC Municipal Products, Inc. Trust Revenue Bonds, Floaters Certificates, Series E-27, (Royal Bank of Canada LOC), 0.13%, 1/9/13(1)		10,000		10,000
State of Texas Eagle G.O., Series 20060126, Class A, 0.13%, 1/9/13(1)		60,990		60,990
State of Texas G.O. VRDB, Series A, 0.14%, 1/9/13		8,230		8,230
State of Texas G.O. VRDB, Veterans Housing Assistance Fund, 0.11%, 1/9/13		26,315		26,315
State of Texas G.O. VRDB, Veterans, 0.12%, 1/9/13		33,600		33,600
State of Texas TRANS, 2.50%, 8/30/13		122,200		124,035
Tarrant County Texas Cultural Educational Finance Corp. Retirement Facilities Revenue VRDB, Northwest Edgemere Project, (Bank of America N.A. LOC), 0.14%, 1/9/13		18,080		18,080
Tarrant County Texas Housing Finance Corp. Revenue Refunding VRDB, Multifamily Housing Apartments Project, (Wachovia Bank N.A. LOC), 0.14%, 1/9/13		7,050		7,050

MONEY MARKET FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Texas - 10.5% continued
Tarrant County Texas Housing Finance Corp. Revenue VRDB, Multifamily Housing, Gateway Apartments, (FNMA Gtd.), 0.13%, 1/9/13	$	7,945	$	7,945
Texas Department Multifamily Housing & Community Affairs Revenue VRDB, Woodmont Apartments, (Bank of America N.A. LOC), 0.13%, 1/9/13		15,000		15,000
Texas State G.O. Refunding Bonds, Vets Housing Assistance, Fund I, Series A, 0.10%, 1/9/13		3,300		3,300
				777,488
Utah - 0.4%
Park City Utah Revenue VRDB, U.S. Ski & Snowboard Association, (Wells Fargo Bank N.A. LOC), 0.15%, 1/9/13		3,380		3,380
Utah Housing Corp. Multifamily Revenue VRDB, Florentine Villas, Series A, (FHLMC LOC), 0.16%, 1/9/13		18,880		18,880
Utah Housing Corp. SFM Revenue Refunding VRDB, Series A-Class I, 0.14%, 1/9/13		6,400		6,400
				28,660
Vermont - 0.4%
Vermont Educational & Health Buildings Financing Agency Revenue Refunding VRDB, Hospital, Fletcher Allen, Series A, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		21,690		21,690
Vermont Educational & Health Buildings Financing Agency Revenue VRDB, Porter Hospital Project, Series A, (TD Banknorth, Inc. LOC), 0.12%, 1/9/13		4,770		4,770
				26,460
Virginia - 1.3%
Alexandria IDA Revenue Refunding VRDB, Goodwin House, (Wachovia Bank N.A. LOC), 0.08%, 1/2/13		23,300		23,300
Hampton Virginia Redevelopment & Housing Authority Multifamily Housing Revenue Refunding VRDB, Hampton Center Apartments Project, (FHLMC Insured), 0.13%, 1/9/13		13,310		13,310
Lewistown Community Center Development Authority Revenue Floaters, (Wells Fargo Bank N.A. LOC), 0.15%, 1/9/13(1)		13,035		13,035
Lynchburg Virginia IDA Revenue Refunding VRDB, Hospital Centra Health, Series D, (FHLB of Atlanta LOC), 0.12%, 1/9/13		7,000		7,000
Series E, (FHLB of Atlanta LOC), 0.12%, 1/9/13		6,300		6,300
Virginia Commonwealth University Health System Authority Revenue Bonds, ARS Generation, Series B, (Wachovia Bank N.A. LOC), 0.14%, 1/2/13		3,325		3,325
Virginia Commonwealth University Health System Authority Revenue VRDB, Series B, (Branch Banking & Trust Co. LOC), 0.14%, 1/2/13		18,420		18,420
Virginia Small Business Financing Authority Healthcare Facilities Revenue VRDB, Bon Secours Health, (JPMorgan Chase Bank N.A. LOC), 0.13%, 1/9/13		9,000		9,000
				93,690
Washington - 1.6%
Deutsche Bank Spears/Lifers Trust Revenue Bonds, Series DBE-1095, (Deutsche Bank A.G. Gtd.), 0.18%, 1/9/13(1)		20,705		20,705
Everett Public Facilities District Revenue VRDB, 0.13%, 1/2/13		11,415		11,415
Vancouver Washington Housing Authority Revenue Refunding VRDB, Pooled Housing, (FHLMC Gtd.), 0.15%, 1/9/13		4,500		4,500
Washington Health Care Facilities Authority Revenue VRDB, Catholic Health, 0.15%, 1/9/13		21,400		21,400

NORTHERN FUNDS QUARTERLY REPORT    23    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Washington - 1.6% continued
Washington State G.O. Refunding VRDB, Series A, 0.14%, 1/9/13(1)	$	14,740	$	14,740
Washington State Housing Finance Commission Non Profit Housing Revenue VRDB, Living Care Centers Project, (Wells Fargo Bank N.A. LOC), 0.12%, 1/9/13		7,020		7,020
Washington State Housing Finance Commission Non Profit Revenue VRDB, District Council No. 5, (Wells Fargo Bank N.A. LOC), 0.25%, 1/9/13		2,765		2,765
Washington State Housing Finance Commission Non Profit Revenue VRDB, Skyline At First Hill Project, Series C, (Bank of America N.A. LOC), 0.14%, 1/9/13		8,345		8,345
Washington State Housing Finance Commission Revenue Refunding VRDB, Antioch University Project, (Mitsubishi UFJ Financial Group, Inc. LOC), 0.12%, 1/9/13		4,825		4,825
Washington State Housing Finance Commission Revenue Refunding VRDB, Emerald Heights Project, (Bank of America N.A. LOC), 0.18%, 1/2/13		6,800		6,800
Wells Fargo Stage Trust Revenue Bonds, Floater Certificates Series 109C for WA, 0.37%, 12/5/13(1) (2)		14,475		14,475
				116,990
West Virginia - 0.3%
Cabell County West Virginia County Commission Revenue VRDB, Huntington YMCA Project, (JPMorgan Chase Bank N.A. LOC), 0.25%, 1/9/13		2,630		2,630
Eclipse Funding Trust Solar Eclipse West Virginia Revenue Bonds, Series 2006-0132, (U.S. Bank N.A. LOC), 0.13%, 1/9/13(1)		17,455		17,455
				20,085
Wisconsin - 3.2%
Milwaukee Wisconsin Redevelopment Authority Lease Revenue VRDB, University of Wisconsin, Kenilworth Project, (U.S. Bank N.A. LOC), 0.13%, 1/9/13		12,010		12,010
Wells Fargo Stage Trust G.O., Floater Certificates Series 111C for WI, 0.27%, 1/9/13(1) (2)		22,915		22,915
Wisconsin Department of Transportation Revenue VRDB, Floater Series 52TP, (Wells Fargo Bank N.A. LOC), 0.14%, 1/9/13(1)		8,085		8,085
Wisconsin Health & Educational Facilities Authority Revenue Bonds, Prohealth Care, Inc., Series B, (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/2/13		22,380		22,380
Wisconsin Health & Educational Facilities Authority Revenue Refunding VRDB, Oakwood Village, (BMO Harris Bank N.A. LOC), 0.10%, 1/9/13		2,840		2,840
Wisconsin Health & Educational Facilities Authority Revenue VRDB, St. Norbert College, Inc., (JPMorgan Chase Bank N.A. LOC), 0.15%, 1/9/13		9,925		9,925
Wisconsin Health & Educational Facilities Authority Revenue VRDB, Series B, Oakwood, (Bank of Montreal LOC), 0.10%, 1/9/13		4,450		4,450
Wisconsin School Districts Temporary Borrowing Program Revenue Notes, Cash Flow Administration Program Notes Participation, Series A, 1.00%, 10/15/13		13,700		13,770
Wisconsin State G.O. Refunding VRDB, Series 1, 0.14%, 1/9/13(1)		25,000		25,000
Wisconsin State Health & Educational Facilities Authority Revenue Refunding VRDB, Concordia University Inc., (JPMorgan Chase Bank N.A. LOC), 0.14%, 1/9/13		3,000		3,000

MONEY MARKET FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL INVESTMENTS - 97.5% continued
Wisconsin - 3.2% continued
Wisconsin State Health & Educational Facilities Authority Revenue Bonds, Mequon Jewish Project, (JPMorgan Chase Bank N.A. LOC), 0.18%, 1/9/13	$	4,755	$	4,755
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Series B, Aurora Healthcare, (Bank of Montreal LOC), 0.11%, 1/2/13		11,650		11,650
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Capital Lakes, Inc., Series B, (U.S. Bank N.A. LOC), 0.14%, 1/9/13		6,265		6,265
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Froedtert & Community Health, Series A, (U.S. Bank N.A. LOC), 0.11%, 1/9/13		20,235		20,235
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Oakwood Village, (Bank of Montreal LOC), 0.10%, 1/9/13		31,685		31,685
Wisconsin State Health & Educational Facilities Authority Revenue VRDB, Watertown Memorial Hospital, Inc. Project, (JPMorgan Chase Bank N.A. LOC), 0.12%, 1/9/13		15,000		15,000
Wisconsin State Transportation Revenue Refunding VRDB, Series I, 0.14%, 1/9/13(1)		21,745		21,745
				235,710
Wyoming - 0.2%
County of Sweetwater Wyoming PCR Refunding Bonds, Series A, Pacificorp Project, (Barclays PLC LOC), 0.13%, 1/9/13		16,650		16,650
Municipal States Pooled Securities - 1.2%
BB&T Municipal Trust Revenue VRDB, Series 2022, Floaters, (Branch Banking & Trust Co. LOC), 0.13%, 1/9/13(1)		1,695		1,695
BB&T Municipal Trust Various States Revenue VRDB, Series 5001, (Cooperative Centrale Raiffeisen Boer LOC), 0.22%, 1/9/13(1)		21,200		21,200
BB&T Municipal Trust Various States, Series 1007, (Branch Banking & Trust Co. LOC), 0.22%, 1/9/13(1)		3,510		3,510
Series 1019, (Branch Banking & Trust Co. LOC), 0.22%, 1/9/13(1)		16,020		16,020
Series 1035, (Branch Banking & Trust Co. LOC), 0.22%, 1/9/13(1)		10,315		10,315
Series 5002, (Cooperative Centrale Raiffeisen Boer LOC), 0.37%, 1/9/13(1)		13,795		13,795
Puerto Rico Electrical Power Authority Power Revenue Refunding Bonds, Series V, (Branch Banking & Trust Co. LOC), 0.14%, 1/9/13(1)		20,635		20,635
				87,170
Total Municipal Investments (Cost $7,207,755)				7,207,755
Total Investments - 97.5% (Cost $7,207,755)(3)				7,207,755
Other Assets less Liabilities - 2.5%				184,894
NET ASSETS - 100.0%			$	7,392,649

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 December 31, 2012, the value of these restricted illiquid securities amounted to approximately $87,885 or 1.2% 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, 0.23%, 1/9/13	4/10/12	$	5,595

NORTHERN FUNDS QUARTERLY REPORT    25    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

MUNICIPAL MONEY MARKET FUND continued

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
RBC Municipal Products, Inc. Trust G.O. Floater Certificates, Series E-32, 0.13%, 1/9/13	2/9/12	$	19,900
Wells Fargo Stage Trust G.O., Floater Certificates Series 111C for WI, 0.27%, 1/9/13	12/20/12 - 12/28/12		22,915
Wells Fargo Stage Trust Revenue Bonds, Floater Certificates Series 105C, in NY, 0.37%, 12/6/13	12/13/12		25,000
Wells Fargo Stage Trust Revenue Bonds, Floater Certificates Series 109C for WA, 0.37%, 12/5/13	12/20/12		14,475

(3) The cost for federal income tax purposes was $7,207,755.

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Municipal Money Market Fund were:

INDUSTRY SECTOR	% OF NET ASSETS
Air, Transportation, Water Services and Solid Waste Management		17.9	%
Educational Services		12.7
Electric Services, Gas and Combined Utilities		8.9
Executive, Legislative and General Government		19.0
General Medical and Surgical Hospitals, Specialty Hospitals, Nursing and Personal Care		12.1
Health Services and Residential Care		8.8
Urban and Community Development, Housing Programs and Social Services		10.6
All other sectors less than 5%		10.0
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 December 31, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Investments held by Municipal Money Market Fund	$	—	$	7,207,755	(1)	$	—	$	7,207,755

(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 December 31, 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 the stated date on the security, the next interest reset/puttable date for floating rate and variable securities.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

ABAG - Association of Bay Area Governments

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

MONEY MARKET FUNDS    26    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

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

NORTHERN FUNDS QUARTERLY REPORT    27    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 50.9%(1)
Federal Farm Credit Bank - 6.7%
FFCB Bonds, 0.22%, 6/11/13	$	2,000	$	2,000
3.88%, 10/7/13		4,995		5,134
FFCB Discount Notes, 0.17%, 1/9/13		1,000		1,000
0.15%, 1/22/13		2,800		2,800
0.14%, 1/28/13		1,800		1,800
0.22%, 3/19/13		1,900		1,899
0.21%, 4/5/13		2,000		1,999
0.20%, 4/19/13		1,400		1,399
0.18%, 4/22/13		4,000		3,998
0.18%, 5/10/13		1,200		1,199
0.18%, 5/21/13		3,000		2,998
0.18%, 5/28/13		1,700		1,699
0.18%, 6/5/13		2,700		2,698
0.19%, 6/14/13		1,200		1,199
0.18%, 7/15/13		3,500		3,497
0.20%, 7/16/13		2,800		2,797
0.20%, 7/19/13		2,000		1,998
0.18%, 8/2/13		8,000		7,991
0.18%, 9/9/13		1,000		999
0.20%, 11/1/13		3,500		3,494
0.20%, 11/5/13		1,800		1,797
0.19%, 11/21/13		6,500		6,489
0.20%, 11/22/13		1,500		1,497
FFCB FRN, 0.18%, 1/1/13		6,000		5,999
0.31%, 1/2/13		4,500		4,500
0.40%, 1/2/13		4,500		4,508
0.42%, 1/2/13		3,000		3,006
0.18%, 1/6/13		4,000		3,999
0.20%, 1/8/13		5,000		5,000
0.18%, 1/11/13		3,500		3,500
0.18%, 1/13/13		3,000		3,000
0.21%, 1/15/13		2,700		2,701
0.23%, 1/22/13		4,100		4,102
				102,696
Federal Home Loan Bank - 27.6%
FHLB Bonds, 0.18%, 1/9/13		2,500		2,500
0.17%, 1/10/13		4,500		4,500
1.50%, 1/16/13		3,300		3,302
0.17%, 2/6/13		4,300		4,300
0.30%, 2/11/13		1,800		1,800
0.19%, 2/12/13		10,000		10,000
0.19%, 2/15/13		2,100		2,100
0.13%, 3/5/13		1,300		1,300
0.15%, 3/14/13		7,000		7,000
0.25%, 3/19/13		2,700		2,700
0.23%, 4/5/13		1,800		1,800
0.25%, 4/18/13		11,000		11,001
0.19%, 5/1/13		13,200		13,198
0.36%, 5/16/13		4,500		4,502
0.22%, 5/17/13		1,400		1,400
0.23%, 5/17/13		1,400		1,400
0.16%, 6/6/13		3,000		3,000
0.15%, 6/14/13		7,000		6,999
0.18%, 6/17/13		3,800		3,800
1.88%, 6/21/13		5,200		5,241
0.13%, 7/25/13		3,800		3,798
0.28%, 8/2/13		7,000		7,003
0.18%, 8/20/13		3,500		3,500
0.13%, 9/19/13		2,000		1,999
0.20%, 10/4/13		4,500		4,500
0.28%, 11/21/13		1,000		1,000
0.18%, 1/7/14		7,000		6,999
FHLB Discount Notes, 0.18%, 1/9/13		7,000		7,000
0.14%, 1/11/13		8,500		8,500
0.16%, 1/16/13		10,000		9,999
0.15%, 1/18/13		7,800		7,799
0.14%, 1/28/13		1,800		1,800
0.19%, 2/1/13		3,000		2,999
0.18%, 2/4/13		1,900		1,900
0.17%, 2/13/13		10,000		9,998
0.14%, 2/20/13		10,000		9,998
0.16%, 3/8/13		20,500		20,494
0.13%, 3/15/13		4,000		3,999
0.21%, 4/1/13		1,500		1,499
0.12%, 4/2/13		4,000		3,999
0.22%, 4/2/13		1,800		1,799
0.16%, 4/3/13		3,000		2,999
0.16%, 4/5/13		8,000		7,997
0.21%, 4/8/13		2,500		2,498
0.17%, 4/19/13		3,500		3,498
0.20%, 5/2/13		2,500		2,498
0.17%, 5/3/13		10,700		10,694
0.20%, 5/3/13		4,200		4,197

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 50.9%(1) continued
Federal Home Loan Bank - 27.6% continued
0.21%, 5/13/13	$	2,200	$	2,198
0.17%, 5/17/13		15,200		15,190
0.21%, 5/21/13		11,000		10,991
0.17%, 5/31/13		4,500		4,497
0.20%, 6/7/13		1,500		1,499
0.22%, 6/28/13		3,300		3,296
0.20%, 7/24/13		3,000		2,997
FHLB FRN, 0.19%, 1/2/13		5,000		4,999
0.20%, 1/2/13		7,500		7,500
0.22%, 1/2/13		8,500		8,500
0.24%, 1/2/13		9,000		8,998
0.26%, 1/2/13		5,000		4,999
0.27%, 1/2/13		10,000		10,000
0.30%, 1/2/13		6,645		6,645
0.32%, 1/2/13		8,300		8,300
0.33%, 1/2/13		26,490		26,490
0.35%, 1/2/13		5,000		5,000
0.17%, 1/16/13		3,000		2,999
0.18%, 1/23/13		6,000		5,999
0.19%, 1/24/13		5,500		5,500
0.15%, 1/25/13		4,400		4,399
0.17%, 1/25/13		2,500		2,500
0.19%, 1/26/13		5,000		5,000
0.19%, 1/27/13		11,000		10,998
0.10%, 3/14/13		9,000		9,000
				425,300
Federal Home Loan Mortgage Corporation - 9.0%
FHLMC Discount Notes, 0.12%, 1/9/13		9,000		9,000
0.14%, 1/14/13		10,000		10,000
0.12%, 1/15/13		8,500		8,500
0.14%, 1/16/13		10,500		10,499
0.17%, 2/1/13		4,200		4,199
0.10%, 4/9/13		30,500		30,492
0.16%, 6/5/13		8,000		7,994
0.18%, 7/2/13		2,000		1,998
FHLMC FRN, 0.34%, 1/2/13		4,000		4,000
0.16%, 1/3/13		30,000		29,996
0.22%, 1/5/13		4,500		4,500
0.16%, 1/17/13		10,000		9,998
FHLMC Note, 1.63%, 4/15/13		7,500		7,531
				138,707
Federal National Mortgage Association - 7.6%
FNMA Discount Notes, 0.18%, 1/2/13		3,000		3,000
0.14%, 1/3/13		3,600		3,600
0.14%, 1/4/13		6,200		6,200
0.38%, 1/8/13		3,500		3,500
0.14%, 1/14/13		4,800		4,800
0.17%, 1/23/13		8,000		7,999
0.15%, 2/14/13		5,000		4,999
0.17%, 3/6/13		17,500		17,495
0.15%, 4/1/13		5,000		4,998
0.16%, 5/1/13		10,000		9,995
FNMA FRN, 0.41%, 1/2/13		15,000		15,006
0.20%, 1/12/13		10,000		9,998
0.19%, 1/20/13		25,000		24,992
				116,582
Total U.S. Government Agencies (Cost $783,285)				783,285
U.S. GOVERNMENT OBLIGATIONS - 10.7%
U.S. Treasury Bills - 4.5%
0.08%, 1/3/13		7,500		7,500
0.15%, 1/3/13		8,000		8,000
0.15%, 2/14/13		12,000		11,998
0.13%, 4/4/13		7,500		7,497
0.18%, 4/4/13		1,800		1,799
0.14%, 4/11/13		7,500		7,497
0.15%, 5/9/13		9,000		8,995
0.03%, 5/30/13		2,300		2,298
0.14%, 6/13/13		3,500		3,498
0.17%, 7/25/13		2,500		2,498
0.18%, 8/22/13		2,500		2,497
0.18%, 10/17/13		5,000		4,993
				69,070
U.S. Treasury Notes - 6.2%
0.23%, 1/15/13		23,800		23,811
0.23%, 2/28/13		3,500		3,514
1.75%, 4/15/13		12,700		12,755

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT OBLIGATIONS - 10.7% continued
U.S. Treasury Notes - 6.2% continued
0.50%, 5/31/13	$	8,000	$	8,011
0.15%, 7/15/13		16,500		16,571
0.38%, 7/31/13		3,500		3,504
3.38%, 7/31/13		4,500		4,583
0.50%, 10/15/13		8,500		8,520
2.75%, 10/31/13		3,000		3,064
1.00%, 1/15/14		10,200		10,286
				94,619
Total U.S. Government Obligations (Cost $163,689)				163,689
Investments, at Amortized Cost ($946,974)				946,974
REPURCHASE AGREEMENTS - 34.8%
Joint Repurchase Agreements - 0.0%(2)
Bank of America Securities LLC, dated 12/31/12, repurchase price $109 0.16%, 1/2/13		109		109
Morgan Stanley & Co., Inc., dated 12/31/12, repurchase price $109 0.18%, 1/2/13		109		109
Societe Generale, New York Branch, dated 12/31/12, repurchase price $109 0.19%, 1/2/13		109		109
UBS Securities LLC, dated 12/31/12, repurchase price $163 0.16%, 1/2/13		163		163
				490
Repurchase Agreements - 34.8%(3)
Bank of America N.A., dated 12/31/12 repurchase price $180,002 0.19%, 1/2/13		180,000		180,000
BNP Paribas Securities, dated 11/26/12, repurchase price $10,004 0.23%, 1/25/13		10,000		10,000
BNP Paribas Securities, dated 12/31/12, repurchase price $150,002 0.22%, 1/2/13		150,000		150,000
Citigroup Global Markets, dated 12/31/12, repurchase price $100,001 0.23%, 1/2/13		100,000		100,000
Societe Generale, New York Branch, dated 12/31/12, repurchase price $95,001 0.22%, 1/2/13		95,000		95,000
				535,000
Total Repurchase Agreements (Cost $535,490)				535,490
Total Investments - 96.4% (Cost $1,482,464)(4)				1,482,464
Other Assets less Liabilities - 3.6%				55,534
NET ASSETS - 100.0%			$	1,537,998

(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 VALUE (000S)		COUPON RATES	MATURITY DATES
U.S. Treasury Bonds	$	227	2.13% - 5.50%	4/15/28 - 5/15/41
U.S. Treasury Notes	$	271	0.63% - 4.00%	8/15/13 - 1/15/21
Total	$	498

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

NAME	FAIR VALUE (000S)		COUPON RATES	MATURITY DATES
FHLMC	$	38,795	2.50% - 7.00%	5/1/19 - 2/1/36
FNMA	$	172,355	1.36% - 10.00%	2/1/13 - 11/1/48
GNMA	$	339,900	3.50% - 6.00%	10/20/35 - 2/20/62
Total	$	551,050

(4) The cost for federal income tax purposes was $1,482,464.

Percentages shown are based on Net Assets.

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT MONEY MARKET 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 U.S. Government Money Market Fund’s investments, which are carried at amortized cost, which approximates fair value, as of December 31, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Investments held by U.S. Government Money Market Fund	$	—	$	1,482,464	(1)	$	—	$	1,482,464

(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 December 31, 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 the stated date on the security, the next interest reset/puttable date for floating rate and variable 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 DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 69.5%(1)
Federal Farm Credit Bank - 14.6%
FFCB Bonds, 0.15%, 2/6/13	$	15,000	$	14,999
0.22%, 6/11/13		5,300		5,300
1.38%, 6/25/13		5,500		5,531
FFCB Discount Notes, 0.01%, 1/2/13		25,000		25,000
0.15%, 1/3/13		2,700		2,700
0.13%, 1/8/13		5,000		5,000
0.14%, 1/8/13		4,300		4,300
0.17%, 1/9/13		2,300		2,300
0.14%, 1/11/13		3,000		3,000
0.13%, 1/14/13		3,750		3,750
0.12%, 1/16/13		8,500		8,500
0.14%, 1/28/13		4,500		4,499
0.18%, 1/31/13		4,800		4,799
0.18%, 2/1/13		1,500		1,500
0.19%, 3/1/13		4,700		4,698
0.19%, 3/4/13		4,000		3,999
0.17%, 3/5/13		4,300		4,299
0.22%, 3/19/13		7,500		7,496
0.21%, 4/5/13		5,000		4,997
0.21%, 4/9/13		3,800		3,798
0.20%, 4/19/13		3,800		3,798
0.18%, 4/22/13		4,500		4,497
0.20%, 5/6/13		4,800		4,797
0.20%, 5/9/13		4,500		4,497
0.18%, 5/10/13		3,200		3,198
0.18%, 5/28/13		4,500		4,497
0.18%, 6/5/13		6,200		6,195
0.19%, 6/14/13		3,200		3,197
0.20%, 6/18/13		3,500		3,497
0.22%, 7/3/13		4,500		4,495
0.22%, 7/10/13		3,500		3,496
0.18%, 7/11/13		1,500		1,499
0.20%, 7/16/13		7,500		7,492
0.18%, 7/17/13		13,000		12,987
0.20%, 7/18/13		3,500		3,496
0.18%, 9/5/13		1,000		999
0.18%, 9/9/13		2,000		1,997
0.19%, 10/1/13		8,000		7,988
0.18%, 10/18/13		3,000		2,996
0.20%, 11/22/13		4,000		3,993
FFCB FRN, 0.18%, 1/1/13		15,000		14,998
0.21%, 1/2/13		30,000		30,002
0.25%, 1/2/13		23,485		23,485
0.26%, 1/2/13		5,000		5,000
0.27%, 1/2/13		16,500		16,500
0.31%, 1/2/13		2,500		2,501
0.33%, 1/2/13		18,000		18,007
0.39%, 1/2/13		27,100		27,109
0.40%, 1/2/13		10,500		10,518
0.42%, 1/2/13		24,000		24,040
0.16%, 1/6/13		14,500		14,496
0.18%, 1/6/13		32,000		31,992
0.12%, 1/8/13		15,000		15,000
0.20%, 1/8/13		5,000		5,000
0.18%, 1/9/13		8,500		8,495
0.18%, 1/11/13		9,000		9,000
0.19%, 1/11/13		4,000		4,000
0.17%, 1/12/13		9,500		9,496
0.12%, 1/13/13		5,000		4,999
0.18%, 1/13/13		8,000		8,000
0.21%, 1/15/13		6,900		6,903
0.18%, 1/16/13		17,000		16,999
0.20%, 1/22/13		12,500		12,501
0.23%, 1/22/13		11,500		11,506
0.24%, 1/22/13		14,040		14,045
0.11%, 1/26/13		3,000		3,000
0.15%, 1/26/13		17,000		16,994
0.27%, 1/26/13		10,000		10,003
				584,665
Federal Home Loan Bank - 54.9%
FHLB Bonds, 0.18%, 1/9/13		6,000		6,000
0.17%, 1/10/13		4,500		4,500
0.20%, 1/11/13		12,090		12,090
1.50%, 1/16/13		14,650		14,658
0.17%, 1/24/13		7,200		7,200
0.16%, 2/1/13		4,000		4,000
0.17%, 2/1/13		13,500		13,500
0.18%, 2/1/13		20,000		20,000
0.15%, 2/6/13		5,500		5,500
0.16%, 2/6/13		25,500		25,500
0.17%, 2/6/13		10,700		10,700
0.30%, 2/11/13		4,600		4,600
0.19%, 2/12/13		5,000		5,000

NORTHERN FUNDS QUARTERLY REPORT    1    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 69.5%(1) continued
Federal Home Loan Bank - 54.9% continued
0.16%, 2/13/13	$	3,000	$	3,000
0.17%, 2/13/13		16,500		16,500
0.17%, 2/15/13		9,300		9,300
0.18%, 2/15/13		6,500		6,500
0.19%, 2/15/13		5,200		5,200
0.20%, 3/6/13		2,500		2,500
0.15%, 3/14/13		15,000		14,999
1.25%, 4/2/13		4,200		4,210
0.25%, 4/11/13		2,500		2,500
0.16%, 4/17/13		42,000		41,997
0.16%, 4/18/13		17,000		16,999
0.25%, 4/18/13		28,500		28,503
0.37%, 5/1/13		10,000		10,004
0.22%, 5/17/13		3,800		3,800
0.23%, 5/17/13		25,500		25,505
0.16%, 6/6/13		10,000		10,000
0.15%, 6/14/13		31,000		30,997
0.18%, 6/17/13		18,000		17,999
0.17%, 6/20/13		7,700		7,699
0.17%, 6/21/13		2,500		2,500
0.18%, 8/20/13		7,000		6,999
0.13%, 9/19/13		4,000		3,997
0.28%, 11/21/13		2,000		2,001
0.18%, 1/7/14		19,000		18,996
FHLB Discount Notes, 0.13%, 1/2/13		25,000		25,000
0.18%, 1/2/13		8,600		8,600
0.11%, 1/4/13		8,500		8,500
0.12%, 1/4/13		41,500		41,500
0.13%, 1/4/13		36,500		36,500
0.13%, 1/9/13		88,500		88,497
0.14%, 1/9/13		8,500		8,500
0.18%, 1/9/13		13,500		13,500
0.14%, 1/11/13		25,000		24,999
0.09%, 1/16/13		21,500		21,499
0.11%, 1/16/13		13,000		12,999
0.14%, 1/16/13		25,000		24,999
0.16%, 1/16/13		5,200		5,200
0.17%, 1/16/13		34,500		34,498
0.15%, 1/18/13		37,500		37,497
0.11%, 1/23/13		8,000		7,999
0.15%, 1/23/13		25,000		24,998
0.14%, 1/25/13		25,000		24,998
0.14%, 1/28/13		4,500		4,499
0.12%, 2/1/13		8,500		8,499
0.19%, 2/1/13		6,700		6,699
0.18%, 2/4/13		4,700		4,699
0.14%, 2/6/13		4,000		3,999
0.15%, 2/6/13		40,000		39,994
0.14%, 2/13/13		60,000		59,989
0.15%, 2/13/13		4,500		4,499
0.17%, 2/13/13		49,200		49,191
0.14%, 2/15/13		35,000		34,994
0.15%, 2/15/13		55,000		54,990
0.15%, 2/20/13		40,000		39,991
0.17%, 2/20/13		12,500		12,497
0.18%, 2/26/13		8,500		8,498
0.15%, 2/27/13		28,500		28,493
0.13%, 3/4/13		25,000		24,995
0.15%, 3/6/13		10,000		9,997
0.13%, 3/8/13		75,000		74,981
0.16%, 3/8/13		41,000		40,989
0.12%, 3/13/13		10,000		9,997
0.15%, 3/13/13		17,500		17,495
0.13%, 3/15/13		12,500		12,497
0.10%, 4/1/13		45,000		44,988
0.21%, 4/1/13		3,800		3,799
0.12%, 4/2/13		30,000		29,990
0.22%, 4/2/13		4,900		4,898
0.16%, 4/3/13		50,000		49,980
0.16%, 4/5/13		13,500		13,494
0.16%, 4/10/13		23,000		22,990
0.10%, 4/15/13		5,000		4,998
0.16%, 4/15/13		3,500		3,499
0.17%, 4/17/13		26,500		26,487
0.09%, 4/19/13		21,500		21,493
0.17%, 4/19/13		9,000		8,997
0.17%, 4/26/13		6,500		6,497
0.20%, 5/1/13		10,000		9,993
0.20%, 5/2/13		2,400		2,398
0.17%, 5/3/13		4,500		4,497
0.20%, 5/3/13		11,300		11,293
0.21%, 5/13/13		6,000		5,995
0.11%, 5/17/13		13,000		12,995
0.21%, 5/21/13		7,000		6,994
0.17%, 5/29/13		64,000		63,957
0.20%, 6/7/13		4,500		4,496
0.20%, 6/10/13		3,700		3,697

MONEY MARKET FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 69.5%(1) continued
Federal Home Loan Bank - 54.9% continued
0.15%, 6/21/13	$	21,500	$	21,485
0.22%, 6/28/13		8,700		8,691
0.20%, 7/24/13		6,200		6,193
0.19%, 9/12/13		2,500		2,497
FHLB FRN, 0.22%, 1/2/13		5,000		5,000
0.23%, 1/2/13		25,000		25,000
0.24%, 1/2/13		16,000		15,997
0.25%, 1/2/13		15,000		14,995
0.26%, 1/2/13		15,000		14,997
0.27%, 1/2/13		40,000		39,998
0.30%, 1/2/13		14,775		14,775
0.32%, 1/2/13		22,300		22,299
0.33%, 1/2/13		58,045		58,045
0.35%, 1/2/13		25,000		24,999
0.36%, 1/2/13		19,000		19,000
0.37%, 1/2/13		17,000		17,000
0.18%, 1/3/13		20,000		19,996
0.17%, 1/16/13		6,000		6,000
0.18%, 1/23/13		15,000		14,998
0.19%, 1/24/13		12,000		12,000
0.17%, 1/25/13		6,300		6,300
0.19%, 1/26/13		12,000		12,000
0.19%, 1/27/13		15,000		14,998
				2,194,406
Total U.S. Government Agencies (Cost $2,779,071)				2,779,071
U.S. GOVERNMENT OBLIGATIONS - 15.3%
U.S. Treasury Bills - 10.3%
0.05%, 1/3/13		137,000		136,999
0.06%, 1/3/13		47,500		47,500
0.08%, 1/3/13		16,000		16,000
0.15%, 1/3/13		21,800		21,800
0.04%, 1/24/13		125,000		124,997
0.13%, 4/4/13		16,000		15,994
0.17%, 4/4/13		6,500		6,497
0.14%, 4/11/13		8,000		7,997
0.15%, 5/30/13		9,000		8,994
0.19%, 5/30/13		6,100		6,096
0.14%, 6/13/13		9,000		8,994
0.18%, 8/22/13		10,000		9,987
				411,855
U.S. Treasury Notes - 5.0%
1.38%, 1/15/13		96,600		96,645
1.75%, 4/15/13		19,800		19,889
1.00%, 7/15/13		17,500		17,575
0.38%, 7/31/13		25,000		25,026
3.38%, 7/31/13		7,500		7,638
2.75%, 10/31/13		13,000		13,275
1.00%, 1/15/14		20,000		20,168
				200,216
Total U.S. Government Obligations (Cost $612,071)				612,071
Investments, at Amortized Cost ($3,391,142)				3,391,142
REPURCHASE AGREEMENTS - 13.7%
Repurchase Agreements - 13.7%(2)
Bank of America N.A., dated 12/31/12 repurchase price $150,002 0.19%, 1/2/13		150,000		150,000
Citigroup Global Markets, dated 12/31/12, repurchase price $100,001 0.23%, 1/2/13		100,000		100,000
Citigroup Global Markets, dated 12/31/12, repurchase price $50,001 0.23%, 1/2/13		50,000		50,000
Mizuho Securities USA, dated 12/31/12 repurchase price $250,003 0.19%, 1/2/13		250,000		250,000
				550,000
Total Repurchase Agreements (Cost $550,000)				550,000
Total Investments - 98.5% (Cost $3,941,142)(3)				3,941,142
Other Assets less Liabilities - 1.5%				58,758
NET ASSETS - 100.0%			$	3,999,900

(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:

NORTHERN FUNDS QUARTERLY REPORT    3    MONEY MARKET FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT SELECT MONEY MARKET FUND continued

NAME	FAIR VALUE (000S)		COUPON RATES	MATURITY DATES
FNMA	$	154,500	1.36% - 9.00%	6/1/14 - 11/1/48
GNMA	$	154,500	3.50%	8/20/42
U.S. Treasury Bonds	$	24,505	0.00%	5/15/13 - 5/15/42
U.S. Treasury Notes	$	196,479	0.00% - 2.13%	2/15/13 - 8/15/16
U.S. Treasury Strips	$	34,818	0.07% - 2.00%	2/15/13 - 2/15/27
Total	$	564,802

(3) The cost for federal income tax purposes was $3,941,142.

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 December 31, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Investments held by U.S. Government Select Money Market Fund	$	—	$	3,941,142	(1)	$	—	$	3,941,142

(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 December 31, 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 the stated date on the security, the next interest reset/puttable date for floating rate and variable securities.

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

FFCB - Federal Farm Credit Bank

FHLB - Federal Home Loan Bank

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

BOND INDEX FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2 .1%
Automobile - 0.2%
Ally Auto Receivables Trust, Series 2011-5, Class A4,
1.32%, 7/15/16	$	50	$	51
Ally Auto Receivables Trust, Series 2012-2, Class A3,
0.74%, 4/15/16		150		151
Ally Auto Receivables Trust, Series 2012-3, Class A3,
0.85%, 8/15/16		100		100
Ally Auto Receivables Trust, Series 2012-4, Class A3,
0.59%, 1/17/17		200		200
Ally Auto Receivables Trust, Series 2012-5, Class A3,
0.62%, 3/15/17		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
AmeriCredit Automobile Receivables Trust, Series 2012-4, Class A3,
0.67%, 6/8/17		75		75
AmeriCredit Automobile Receivables Trust, Series 2012-5, Class A3,
0.62%, 6/8/17		125		125
CarMax Auto Owner Trust, Series 2012-2, Class A3,
0.84%, 3/15/17		250		252
Ford Credit Auto Owner Trust, Series 2011-B, Class A4,
1.35%, 12/15/16		200		203
Ford Credit Auto Owner Trust, Series 2012-A, Class A4,
1.15%, 6/15/17		125		127
Ford Credit Auto Owner Trust, Series 2012-B, Class A3,
0.72%, 12/15/16		450		452
Ford Credit Auto Owner Trust, Series 2012-D, Class A3,
0.51%, 4/15/17		100		100
Honda Auto Receivables Owner Trust, Series 2012-1, Class A4,
0.97%, 4/16/18		200		202
Hyundai Auto Receivables Trust, Series 2012-C, Class A3,
0.53%, 4/17/17		125		125
Nissan Auto Receivables Owner Trust, Series 2011-B, Class A3,
0.95%, 2/16/16		250		252
Nissan Auto Receivables Owner Trust, Series 2011-B, Class A4,
1.24%, 1/16/18		50		51
Nissan Auto Receivables Owner Trust, Series 2012-B, Class A3,
0.46%, 10/17/16		200		200
Santander Drive Auto Receivables Trust, Series 2012-5, Class A3,
0.83%, 12/15/16		100		100
Santander Drive Auto Receivables Trust, Series 2012-6, Class A3,
0.62%, 7/15/16		125		125
Toyota Auto Receivables Owner Trust, Series 2012-B, Class A3,
0.46%, 7/15/16		300		300
Toyota Auto Receivables Owner Trust, Series 2012-B, Class A4,
0.61%, 1/16/18		200		200
Volkswagen Auto Loan Enhanced Trust, Series 2012-2, Class A3,
0.46%, 1/20/17		250		250
World Omni Auto Receivables Trust, Series 2012-B, Class A3,
0.61%, 6/15/17		100		100
				4,067
Commercial Mortgage-Backed Securities - 1.8%
Banc of America Commercial Mortgage Trust, Series 2006-2, Class A4,
5.73%, 5/10/45		200		229
Banc of America Commercial Mortgage Trust, Series 2006-4, Class A4,
5.63%, 7/10/46		205		235
Banc of America Commercial Mortgage Trust, Series 2006-4, Class AM,
5.68%, 7/10/46		400		452
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4,
5.41%, 9/10/47		250		284
Banc of America Commercial Mortgage Trust, Series 2007-1, Class A4,
5.45%, 1/15/49		450		521

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2 .1% continued
Commercial Mortgage-Backed Securities - 1.8% continued
Banc of America Commercial Mortgage Trust, Series 2008-1, Class A4,
6.21%, 2/10/51	$	500	$	606
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2004-4, Class A6,
4.88%, 7/10/42		350		368
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2005-6, Class AJ,
5.19%, 9/10/47		325		348
Bear Stearns Commercial Mortgage Securities, Series 2004-PWR4, Class A3,
5.47%, 6/11/41		426		448
Bear Stearns Commercial Mortgage Securities, Series 2004-T16, Class A6,
4.75%, 2/13/46		100		106
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class A4,
4.67%, 6/11/41		500		542
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A4A,
4.87%, 9/11/42		400		439
Bear Stearns Commercial Mortgage Securities, Series 2006-PW13, Class A4,
5.54%, 9/11/41		660		758
Bear Stearns Commercial Mortgage Securities, Series 2006-PW14, Class A4,
5.20%, 12/11/38		500		573
Bear Stearns Commercial Mortgage Securities, Series 2006-T24, Class A4,
5.54%, 10/12/41		250		288
Bear Stearns Commercial Mortgage Securities, Series 2007-PW16, Class A4,
5.72%, 6/11/40		250		296
Bear Stearns Commercial Mortgage Securities, Series 2007-PW18, Class A4,
5.70%, 6/11/50		250		298
Bear Stearns Commercial Mortgage Securities, Series 2007-T26, Class A4,
5.47%, 1/12/45		500		582
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class A4,
5.74%, 9/11/42		1,050		1,252
Bear Stearns Commercial Mortgage Securities, Series 2007-T28, Class AM,
5.84%, 9/11/42		250		289
CFCRE Commercial Mortgage Trust, Series 2011-C2, Class A2,
3.06%, 12/15/47		200		214
Citigroup Commercial Mortgage Trust, Series 2006-C4, Class A3,
5.74%, 3/15/49		600		687
Citigroup Commercial Mortgage Trust, Series 2006-C5, Class A4,
5.43%, 10/15/49		500		574
Citigroup Commercial Mortgage Trust, Series 2012-GC8, Class A4,
3.02%, 9/10/45		200		210
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class A4,
5.22%, 7/15/44		500		555
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2006-CD3, Class A5,
5.62%, 10/15/48		700		805
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD5, Class A4,
5.89%, 11/15/44		498		588
Commercial Mortgage Loan Trust, Series 2008-LS1, Class A4B,
6.01%, 12/10/49		130		155
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-C1, Class A4,
5.41%, 2/15/39		500		564
Commercial Mortgage Pass Through Certificates, Series 2006-C4, Class A3,
5.47%, 9/15/39		500		568
Commercial Mortgage Pass Through Certificates, Series 2006-C5, Class A3,
5.31%, 12/15/39		500		568
Commercial Mortgage Pass Through Certificates, Series 2006-C8, Class A4,
5.31%, 12/10/46		500		575
Commercial Mortgage Pass Through Certificates, Series 2012-CR3, Class A3,
2.82%, 11/15/45		175		180
Commercial Mortgage Pass Through Certificates, Series 2012-CR4, Class A3,
2.85%, 10/15/45		150		154

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2 .1% continued
Commercial Mortgage-Backed Securities - 1.8% continued
Commercial Mortgage Pass Through Certificates, Series 2012-LC4, Class A4,
3.29%, 12/10/44	$	100	$	107
Commercial Mortgage Trust, Series 2012-CR2, Class A4,
3.15%, 8/15/45		100		106
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C1, Class A4,
5.01%, 2/15/38		1,000		1,077
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C5, Class A4,
5.10%, 8/15/38		600		659
Credit Suisse First Boston Mortgage Securities Corp., Series 2005-C6, Class AJ,
5.23%, 12/15/40		390		416
CW Capital Cobalt Ltd., Series 2006-C1, Class A4,
5.22%, 8/15/48		250		283
CW Capital Cobalt Ltd., Series 2007-C2, Class A3,
5.48%, 4/15/47		150		174
DBUBS Mortgage Trust, Series 2011-LC3A, Class A2,
3.64%, 8/10/44		175		190
GE Capital Commercial Mortgage Corp., Series 2005-C2, Class A4,
4.98%, 5/10/43		200		217
GE Capital Commercial Mortgage Corp., Series 2007-C1, Class A4,
5.54%, 12/10/49		300		342
Greenwich Capital Commercial Funding Corp., Series 2005-GG3, Class A4,
4.80%, 8/10/42		500		535
Greenwich Capital Commercial Funding Corp., Series 2006-GG7, Class A4,
5.87%, 7/10/38		275		316
Greenwich Capital Commercial Funding Corp., Series 2007-GG11, Class A4,
5.74%, 12/10/49		400		471
Greenwich Capital Commercial Funding Corp., Series 2007-GG9, Class A4,
5.44%, 3/10/39		400		461
GS Mortgage Securities Corp. II, Series 2004-GG2, Class A6,
5.40%, 8/10/38		250		264
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		338
GS Mortgage Securities Corp. II, Series 2007-GG10, Class A4,
5.79%, 8/10/45		525		605
GS Mortgage Securities Corp. II, Series 2011-GC5, Class A2,
3.00%, 8/10/44		125		134
GS Mortgage Securities Corp. II, Series 2011-GC5, Class A4,
3.71%, 8/10/44		150		166
GS Mortgage Securities Corp. II, Series 2012-GC6, Class A3,
3.48%, 1/10/45		200		218
GS Mortgage Securities Corp. II, Series 2012-GCJ9, Class A3,
2.77%, 11/10/45		175		179
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CB12, Class A4,
4.90%, 9/12/37		300		329
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-CB13, Class A4,
5.29%, 1/12/43		500		550
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,
5.32%, 12/15/44		370		400
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2006-LDP9, Class A3,
5.34%, 5/15/47		500		572
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB18, Class A4,
5.44%, 6/12/47		600		691
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-CB19, Class A4,
5.73%, 2/12/49		700		821

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2 .1% continued
Commercial Mortgage-Backed Securities - 1.8% continued
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A4,
5.81%, 6/15/49	$	1,063	$	1,240
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LD12, Class A4,
5.88%, 2/15/51		215		254
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2007-LDPX, Class A3,
5.42%, 1/15/49		500		578
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2011-C5, Class A3,
4.17%, 8/15/46		200		228
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2012-C6, Class A3,
3.51%, 5/15/45		200		218
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2012-CBX, Class A4,
3.48%, 6/15/45		175		191
LB-UBS Commercial Mortgage Trust, Series 2004-C1, Class A4,
4.57%, 1/15/31		200		208
LB-UBS Commercial Mortgage Trust, Series 2005-C2, Class A5,
5.15%, 4/15/30		1,000		1,094
LB-UBS Commercial Mortgage Trust, Series 2006-C3, Class AM,
5.71%, 3/15/39		185		204
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A4,
5.37%, 9/15/39		800		920
LB-UBS Commercial Mortgage Trust, Series 2007-C2, Class A3,
5.43%, 2/15/40		500		574
LB-UBS Commercial Mortgage Trust, Series 2008-C1, Class A2,
6.16%, 4/15/41		500		609
Merrill Lynch Mortgage Trust, Series 2004-KEY2, Class A2,
4.17%, 8/12/39		9		9
Merrill Lynch Mortgage Trust, Series 2006-C1, Class A4,
5.68%, 5/12/39		150		172
Merrill Lynch Mortgage Trust, Series 2007-C1, Class A4,
5.85%, 6/12/50		650		748
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-6, Class A4,
5.49%, 3/12/51		150		173
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-8, Class A3,
5.95%, 8/12/49		500		579
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2012-C6, Class A4,
2.86%, 11/15/45		200		207
Morgan Stanley Capital I Trust, Series 2007-IQ15, Class A4,
5.88%, 6/11/49		300		353
Morgan Stanley Capital I Trust, Series 2007-T27, Class A4,
5.65%, 6/11/42		500		592
Morgan Stanley Capital I Trust, Series 2004-HQ4, Class A7,
4.97%, 4/14/40		1,400		1,474
Morgan Stanley Capital I Trust, Series 2005-HQ5, Class A4,
5.17%, 1/14/42		500		536
Morgan Stanley Capital I Trust, Series 2005-HQ7, Class A4,
5.21%, 11/14/42		520		574
Morgan Stanley Capital I Trust, Series 2006-IQ11, Class A4,
5.69%, 10/15/42		500		564
Morgan Stanley Capital I Trust, Series 2006-IQ12, Class A4,
5.33%, 12/15/43		505		581
Morgan Stanley Capital I Trust, Series 2006-T21, Class A4,
5.16%, 10/12/52		500		555
Morgan Stanley Capital I Trust, Series 2006-T23, Class A4,
5.82%, 8/12/41		500		579
Morgan Stanley Capital I Trust, Series 2011-C3, Class A2,
3.22%, 7/15/49		400		431
Morgan Stanley Capital I Trust, Series 2012-C4, Class A4,
3.24%, 3/15/45		150		161

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2 .1% continued
Commercial Mortgage-Backed Securities - 1.8% continued
UBS Commercial Mortgage Trust, Series 2012-C1, Class A3,
3.40%, 5/10/45	$	175	$	189
UBS-Barclays Commercial Mortgage Trust, Series 2012-C3, Class A4,
3.09%, 8/10/49		125		131
UBS-Barclays Commercial Mortgage Trust, Series 2012-C4, Class A5,
2.85%, 12/10/45		100		103
UBS-Citigroup Commercial Mortgage Trust, Series 2011-C1, Class A3,
3.60%, 1/10/45		150		164
Wachovia Bank Commercial Mortgage Trust, Series 2004-C15, Class A4,
4.80%, 10/15/41		1,000		1,066
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class A4,
5.29%, 12/15/44		500		558
Wachovia Bank Commercial Mortgage Trust, Series 2005-C22, Class AM,
5.34%, 12/15/44		250		276
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A4,
5.42%, 1/15/45		193		215
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class AM,
5.47%, 1/15/45		500		552
Wachovia Bank Commercial Mortgage Trust, Series 2006-C24, Class AM,
5.61%, 3/15/45		125		138
Wachovia Bank Commercial Mortgage Trust, Series 2006-C26, Class AM,
5.97%, 6/15/45		450		508
Wachovia Bank Commercial Mortgage Trust, Series 2006-C28, Class A4,
5.57%, 10/15/48		500		574
Wachovia Bank Commercial Mortgage Trust, Series 2007-C31, Class A4,
5.51%, 4/15/47		250		289
Wachovia Bank Commercial Mortgage Trust, Series 2007-C32, Class A3,
5.74%, 6/15/49		200		233
Wells Fargo Commercial Mortgage Trust, Series 2012-LC5, Class A3,
2.92%, 10/15/45		150		155
WF-RBS Commercial Mortgage Trust, Series 2012-C10, Class A3,
2.88%, 12/15/45		100		103
WF-RBS Commercial Mortgage Trust, Series 2012-C6, Class A4,
3.44%, 4/15/45		175		190
				47,628
Credit Card - 0.1%
American Express Credit Account Master Trust, Series 2012-2, Class A,
0.68%, 3/15/18		300		301
BA Credit Card Trust, Series 2007-A1, Class A1,
5.17%, 6/15/19		185		217
Chase Issuance Trust, Series 2012-A3, Class A3,
0.79%, 6/15/17		275		277
Chase Issuance Trust, Series 2012-A5, Class A5,
0.59%, 8/15/17		250		250
Chase Issuance Trust, Series 2012-A7, Class A7,
2.16%, 9/16/24		150		149
Citibank Credit Card Issuance Trust, Series 2004-A8, Class A8,
4.90%, 12/12/16		350		380
Citibank Credit Card Issuance Trust, Series 2005-A5, Class A5,
4.55%, 6/20/17		250		274
Citibank Credit Card Issuance Trust, Series 2005-A9, Class A9,
5.10%, 11/20/17		170		192
Citibank Credit Card Issuance Trust, Series 2007-A3, Class A3,
6.15%, 6/15/39		100		133
Citibank Credit Card Issuance Trust, Series 2012-A1, Class A1,
0.55%, 10/10/17		250		250
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		202
Discover Card Master Trust, Series 2012-A3, Class A3,
0.86%, 11/15/17		200		201
Discover Card Master Trust, Series 2012-A6, Class A6,
1.67%, 1/18/22		350		353

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2 .1% continued
Credit Card - 0.1% continued
GE Capital Credit Card Master Note Trust, Series 2012-6, Class A,
1.36%, 8/17/20	$	150	$	152
GE Capital Credit Card Master Note Trust, Series 2012-7, Class A,
1.76%, 9/15/22		100		100
				3,794
Utilities - 0.0%
AEP Texas Central Transition Funding LLC, Series 2012-1, Class A3,
2.84%, 3/1/26		200		212
CenterPoint Energy Transition Bond Co. LLC, Series 2009-1, Class A2,
3.46%, 8/15/19		200		220
CenterPoint Energy Transition Bond Co. LLC, Series 2009-1, Class A3,
4.24%, 8/15/23		500		591
CenterPoint Energy Transition Bond Co. LLC, Series 2012-1, Class A1,
0.90%, 4/15/18		112		113
Entergy Texas Restoration Funding LLC, Series 2009-A, Class A3,
4.38%, 11/1/23		100		118
				1,254
Total Asset-Backed Securities (Cost $51,148)				56,743
CORPORATE BONDS - 17.5%
Advertising - 0.0%
Interpublic Group of (The) Cos., Inc.,
2.25%, 11/15/17		135		133
Omnicom Group, Inc.,
6.25%, 7/15/19		300		366
3.63%, 5/1/22		200		208
				707
Aerospace/Defense - 0.3%
Boeing (The) Co.,
3.75%, 11/20/16		400		442
6.13%, 2/15/33		135		181
6.63%, 2/15/38		100		147
5.88%, 2/15/40		75		101
General Dynamics Corp.,
2.25%, 7/15/16		150		157
1.00%, 11/15/17		100		99
3.88%, 7/15/21		250		280
3.60%, 11/15/42		155		149
L-3 Communications Corp.,
3.95%, 11/15/16		150		162
5.20%, 10/15/19		250		285
4.95%, 2/15/21		40		45
Lockheed Martin Corp.,
7.65%, 5/1/16		100		121
2.13%, 9/15/16		65		67
4.25%, 11/15/19		500		564
4.07%, 12/15/42(1) (2)		418		411
Northrop Grumman Corp.,
1.85%, 11/15/15		200		205
5.05%, 8/1/19		170		198
5.05%, 11/15/40		250		284
Raytheon Co.,
4.40%, 2/15/20		510		584
2.50%, 12/15/22		150		148
4.70%, 12/15/41		100		113
United Technologies Corp.,
4.88%, 5/1/15		275		302
1.20%, 6/1/15		200		203
5.38%, 12/15/17		390		464
4.50%, 4/15/20		450		529
3.10%, 6/1/22		795		842
7.50%, 9/15/29		100		147
6.05%, 6/1/36		100		132
6.13%, 7/15/38		175		233
4.50%, 6/1/42		450		500
				8,095
Agriculture - 0.3%
Altria Group, Inc.,
9.70%, 11/10/18		321		449
9.25%, 8/6/19		85		118
4.75%, 5/5/21		725		822
2.85%, 8/9/22		100		99
9.95%, 11/10/38		150		247
10.20%, 2/6/39		100		167
4.25%, 8/9/42		135		131
Archer-Daniels-Midland Co.,
5.45%, 3/15/18		325		389
4.48%, 3/1/21		150		170
5.38%, 9/15/35		175		204
5.77%, 3/1/41		130		162
4.02%, 4/16/43(1) (2)		56		54

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Agriculture - 0.3% continued
Bunge Ltd. Finance Corp.,
5.35%, 4/15/14	$	100	$	105
4.10%, 3/15/16		140		150
3.20%, 6/15/17		250		261
8.50%, 6/15/19		60		77
Lorillard Tobacco Co.,
2.30%, 8/21/17		100		101
Philip Morris International, Inc.,
2.50%, 5/16/16		100		105
1.63%, 3/20/17		500		511
5.65%, 5/16/18		625		758
4.50%, 3/26/20		250		291
4.13%, 5/17/21		250		283
2.90%, 11/15/21		300		312
6.38%, 5/16/38		280		381
3.88%, 8/21/42		150		151
Reynolds American, Inc.,
7.63%, 6/1/16		150		179
3.25%, 11/1/22		175		176
4.75%, 11/1/42		205		207
				7,060
Airlines - 0.0%
Continental Airlines, Series 2009-2, Class A, Pass Through Trust,
7.25%, 11/10/19		329		380
Apparel - 0.0%
VF Corp.,
3.50%, 9/1/21		150		159
6.00%, 10/15/33		100		126
6.45%, 11/1/37		30		40
				325
Auto Manufacturers - 0.0%
Daimler Finance N.A. LLC,
8.50%, 1/18/31		175		272
Ford Motor Co.,
7.45%, 7/16/31		350		445
				717
Auto Parts & Equipment - 0.0%
Johnson Controls, Inc.,
2.60%, 12/1/16		75		78
5.00%, 3/30/20		155		176
5.70%, 3/1/41		250		301
				555
Banks - 3.0%
American Express Centurion Bank,
0.88%, 11/13/15		75		75
Bank of America Corp.,
7.38%, 5/15/14		1,000		1,083
5.38%, 6/15/14		50		53
5.13%, 11/15/14		400		427
4.50%, 4/1/15		65		69
4.75%, 8/1/15		325		351
1.50%, 10/9/15		165		166
3.63%, 3/17/16		185		196
6.50%, 8/1/16		1,000		1,155
5.75%, 8/15/16		100		109
5.63%, 10/14/16		200		226
3.88%, 3/22/17		150		163
6.00%, 9/1/17		250		293
5.75%, 12/1/17		865		1,008
5.65%, 5/1/18		450		524
7.63%, 6/1/19		540		691
5.88%, 1/5/21		440		527
5.00%, 5/13/21		400		457
5.70%, 1/24/22		1,665		2,002
5.88%, 2/7/42		250		312
Bank of America N.A.,
5.30%, 3/15/17		1,075		1,209
6.00%, 10/15/36		250		306
Bank of New York Mellon (The) Corp.,
4.30%, 5/15/14		200		210
2.95%, 6/18/15		200		211
2.30%, 7/28/16		150		157
5.50%, 12/1/17		100		116
1.30%, 1/25/18		500		498
5.45%, 5/15/19		75		90
3.55%, 9/23/21		955		1,040
Bank One Corp.,
7.75%, 7/15/25		54		72
BB&T Corp.,
2.05%, 4/28/14		250		255
5.20%, 12/23/15		600		669
3.95%, 4/29/16		250		273
2.15%, 3/22/17		250		259
1.60%, 8/15/17		50		51
1.45%, 1/12/18		80		80
Capital One Financial Corp.,
7.38%, 5/23/14		775		843

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Banks - 3.0% continued
2.15%, 3/23/15	$	180	$	184
5.50%, 6/1/15		250		276
1.00%, 11/6/15		100		100
3.15%, 7/15/16		195		207
Citigroup, Inc.,
5.13%, 5/5/14		126		133
6.38%, 8/12/14		500		540
5.00%, 9/15/14		1,300		1,368
2.65%, 3/2/15		150		154
2.25%, 8/7/15		125		128
5.30%, 1/7/16		800		885
3.95%, 6/15/16		1,000		1,076
4.45%, 1/10/17		250		277
5.50%, 2/15/17		225		249
6.00%, 8/15/17		100		118
6.13%, 11/21/17		1,075		1,279
6.13%, 5/15/18		350		419
8.50%, 5/22/19		1,500		2,017
4.50%, 1/14/22		735		820
6.63%, 6/15/32		100		115
6.00%, 10/31/33		350		377
6.88%, 3/5/38		900		1,185
8.13%, 7/15/39		360		539
5.88%, 1/30/42		30		37
Fifth Third Bancorp,
5.45%, 1/15/17		75		84
3.50%, 3/15/22		200		210
8.25%, 3/1/38		275		393
Goldman Sachs Group (The), Inc.,
6.00%, 5/1/14		650		692
5.50%, 11/15/14		150		162
5.13%, 1/15/15		500		537
3.30%, 5/3/15		100		104
1.60%, 11/23/15		250		252
5.35%, 1/15/16		1,100		1,216
3.63%, 2/7/16		220		233
5.75%, 10/1/16		250		284
5.63%, 1/15/17		300		329
6.25%, 9/1/17		1,300		1,533
5.95%, 1/18/18		835		972
6.15%, 4/1/18		815		957
5.38%, 3/15/20		1,295		1,484
5.25%, 7/27/21		540		616
5.75%, 1/24/22		750		887
5.95%, 1/15/27		150		162
6.75%, 10/1/37		1,165		1,320
6.25%, 2/1/41		300		368
HSBC Bank USA N.A.,
4.63%, 4/1/14		425		444
4.88%, 8/24/20		300		334
7.00%, 1/15/39		350		473
HSBC USA, Inc.,
2.38%, 2/13/15		150		154
1.63%, 1/16/18		180		180
JPMorgan Chase & Co.,
5.13%, 9/15/14		1,100		1,170
5.25%, 5/1/15		350		381
5.15%, 10/1/15		1,050		1,154
1.10%, 10/15/15		250		250
3.15%, 7/5/16		685		726
6.13%, 6/27/17		100		117
2.00%, 8/15/17		125		128
6.00%, 1/15/18		1,610		1,927
6.30%, 4/23/19		500		617
4.95%, 3/25/20		375		435
4.40%, 7/22/20		300		339
4.63%, 5/10/21		250		285
4.35%, 8/15/21		615		688
4.50%, 1/24/22		750		848
3.25%, 9/23/22		210		216
6.40%, 5/15/38		554		743
5.60%, 7/15/41		300		372
5.40%, 1/6/42		100		120
JPMorgan Chase Bank N.A.,
5.88%, 6/13/16		200		228
6.00%, 10/1/17		650		769
KeyBank N.A.,
5.80%, 7/1/14		250		268
5.45%, 3/3/16		100		112
KeyCorp,
3.75%, 8/13/15		250		268
5.10%, 3/24/21		25		29
Manufacturers & Traders Trust Co.,
6.63%, 12/4/17		250		302
Mellon Funding Corp.,
5.00%, 12/1/14		100		107
Morgan Stanley,
4.75%, 4/1/14		1,300		1,346

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Banks - 3.0% continued
4.20%, 11/20/14	$	280	$	292
4.10%, 1/26/15		500		521
6.00%, 4/28/15		2,025		2,206
5.38%, 10/15/15		200		217
3.80%, 4/29/16		150		157
5.45%, 1/9/17		325		360
4.75%, 3/22/17		250		273
6.25%, 8/28/17		350		401
5.95%, 12/28/17		175		198
6.63%, 4/1/18		1,050		1,237
7.30%, 5/13/19		645		784
5.63%, 9/23/19		475		537
5.50%, 7/28/21		565		641
4.88%, 11/1/22		200		207
6.25%, 8/9/26		100		117
6.38%, 7/24/42		300		352
National City Corp.,
4.90%, 1/15/15		200		216
PNC Bank N.A.,
4.88%, 9/21/17		100		115
2.70%, 11/1/22		250		250
PNC Financial Services Group, Inc.,
2.85%, 11/9/22		100		101
PNC Funding Corp.,
4.25%, 9/21/15		250		272
2.70%, 9/19/16		60		63
6.70%, 6/10/19		600		765
4.38%, 8/11/20		500		570
3.30%, 3/8/22		150		158
State Street Corp.,
4.30%, 5/30/14		345		364
SunTrust Bank,
7.25%, 3/15/18		125		153
SunTrust Banks, Inc.,
3.60%, 4/15/16		100		107
U.S. Bancorp,
3.15%, 3/4/15		215		227
2.45%, 7/27/15		70		73
2.20%, 11/15/16		75		78
1.65%, 5/15/17		200		204
4.13%, 5/24/21		200		227
3.00%, 3/15/22		115		120
2.95%, 7/15/22		200		202
U.S. Bank N.A.,
6.30%, 2/4/14		300		318
4.95%, 10/30/14		250		269
4.80%, 4/15/15		100		108
UnionBanCal Corp.,
3.50%, 6/18/22		150		158
Wachovia Bank N.A.,
5.85%, 2/1/37		250		310
6.60%, 1/15/38		300		412
Wachovia Corp.,
4.88%, 2/15/14		250		261
5.25%, 8/1/14		150		160
5.63%, 10/15/16		550		631
5.75%, 6/15/17		350		415
5.75%, 2/1/18		600		719
Wells Fargo & Co.,
4.63%, 4/15/14		415		436
5.00%, 11/15/14		100		107
1.25%, 2/13/15		500		505
3.63%, 4/15/15		250		266
1.50%, 7/1/15		250		254
5.13%, 9/15/16		475		535
2.63%, 12/15/16		250		264
2.10%, 5/8/17		250		258
5.63%, 12/11/17		445		531
1.50%, 1/16/18		180		180
4.60%, 4/1/21		500		575
3.50%, 3/8/22		1,000		1,067
5.38%, 2/7/35		125		152
Wells Fargo Capital X,
5.95%, 12/15/36		100		102
				78,792
Beverages - 0.4%
Anheuser-Busch Cos. LLC,
6.45%, 9/1/37		50		68
Anheuser-Busch Cos., Inc.,
4.95%, 1/15/14		175		183
5.50%, 1/15/18		375		450
5.95%, 1/15/33		100		125
Anheuser-Busch InBev Worldwide, Inc.,
1.50%, 7/14/14		85		86
4.13%, 1/15/15		500		534
2.88%, 2/15/16		75		80

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Beverages - 0.4% continued
1.38%, 7/15/17	$	500	$	505
5.38%, 1/15/20		450		548
2.50%, 7/15/22		60		60
8.20%, 1/15/39		1,000		1,642
3.75%, 7/15/42		65		65
Beam, Inc.,
5.38%, 1/15/16		86		96
1.88%, 5/15/17		65		66
Bottling Group LLC,
5.50%, 4/1/16		675		771
Brown-Forman Corp.,
1.00%, 1/15/18		65		65
Coca-Cola (The) Co.,
0.75%, 3/13/15		150		151
1.80%, 9/1/16		65		67
1.65%, 3/14/18		125		128
3.15%, 11/15/20		1,115		1,213
3.30%, 9/1/21		250		276
Coca-Cola Refreshments USA, Inc.,
7.38%, 3/3/14		125		135
Dr Pepper Snapple Group, Inc.,
2.90%, 1/15/16		135		142
2.60%, 1/15/19		80		83
2.00%, 1/15/20		90		90
Molson Coors Brewing Co.,
2.00%, 5/1/17		60		62
5.00%, 5/1/42		100		112
PepsiAmericas, Inc.,
4.88%, 1/15/15		50		54
PepsiCo, Inc.,
0.80%, 8/25/14		585		588
3.10%, 1/15/15		450		472
0.75%, 3/5/15		60		60
0.70%, 8/13/15		150		150
2.50%, 5/10/16		200		211
5.00%, 6/1/18		650		771
4.50%, 1/15/20		300		347
2.75%, 3/5/22		385		396
4.88%, 11/1/40		165		193
4.00%, 3/5/42		50		52
3.60%, 8/13/42		50		49
				11,146
Biotechnology - 0.2%
Amgen, Inc.,
4.85%, 11/18/14		175		188
2.30%, 6/15/16		100		104
2.50%, 11/15/16		250		263
5.85%, 6/1/17		375		444
4.50%, 3/15/20		165		188
3.88%, 11/15/21		250		274
6.38%, 6/1/37		100		126
6.40%, 2/1/39		100		129
5.75%, 3/15/40		500		609
5.15%, 11/15/41		500		563
5.65%, 6/15/42		100		120
5.38%, 5/15/43		200		236
Genentech, Inc.,
4.75%, 7/15/15		150		165
Gilead Sciences, Inc.,
3.05%, 12/1/16		100		107
4.50%, 4/1/21		200		229
5.65%, 12/1/41		330		410
Life Technologies Corp.,
3.50%, 1/15/16		250		263
6.00%, 3/1/20		500		593
				5,011
Building Materials - 0.0%
CRH America, Inc.,
6.00%, 9/30/16		100		112
Martin Marietta Materials, Inc.,
6.60%, 4/15/18		100		111
Owens Corning, Inc.,
4.20%, 12/15/22		190		193
				416
Chemicals - 0.4%
Air Products & Chemicals, Inc.,
2.00%, 8/2/16		145		151
1.20%, 10/15/17		250		250
Airgas, Inc.,
2.90%, 11/15/22		150		148
Cabot Corp.,
2.55%, 1/15/18		200		206
Dow Chemical (The) Co.,
7.60%, 5/15/14		424		463
5.70%, 5/15/18		100		119
4.13%, 11/15/21		200		219

FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Chemicals - 0.4% continued
3.00%, 11/15/22	$	100	$	100
7.38%, 11/1/29		100		133
9.40%, 5/15/39		300		494
5.25%, 11/15/41		400		446
E.I. du Pont de Nemours & Co.,
1.75%, 3/25/14		200		203
3.25%, 1/15/15		350		368
5.25%, 12/15/16		400		462
6.00%, 7/15/18		615		759
6.50%, 1/15/28		100		134
Eastman Chemical Co.,
2.40%, 6/1/17		60		62
4.80%, 9/1/42		100		107
Ecolab, Inc.,
1.00%, 8/9/15		75		75
3.00%, 12/8/16		175		186
1.45%, 12/8/17		100		100
4.35%, 12/8/21		250		279
5.50%, 12/8/41		105		125
Lubrizol Corp.,
6.50%, 10/1/34		50		69
Monsanto Co.,
2.75%, 4/15/16		50		53
5.13%, 4/15/18		240		285
2.20%, 7/15/22		65		65
5.50%, 8/15/25		50		63
Mosaic (The) Co.,
4.88%, 11/15/41		100		108
PPG Industries, Inc.,
1.90%, 1/15/16		50		51
6.65%, 3/15/18		220		273
2.70%, 8/15/22		60		59
7.70%, 3/15/38		200		285
Praxair, Inc.,
1.05%, 11/7/17		125		125
4.50%, 8/15/19		400		463
4.05%, 3/15/21		100		113
2.45%, 2/15/22		250		251
2.20%, 8/15/22		150		147
3.55%, 11/7/42		125		121
Rohm & Haas Co.,
6.00%, 9/15/17		250		296
Sherwin-Williams (The) Co.,
3.13%, 12/15/14		300		314
1.35%, 12/15/17		100		100
Westlake Chemical Corp.,
3.60%, 7/15/22		65		65
				8,895
Commercial Services - 0.1%
ADT (The) Corp.,
2.25%, 7/15/17(1) (2)		150		149
4.88%, 7/15/42(1) (2)		100		95
Board of Trustees of The Leland Stanford Junior University (The),
4.75%, 5/1/19		200		236
California Institute of Technology,
4.70%, 11/1/11(3)		110		119
Catholic Health Initiatives,
1.60%, 11/1/17		85		86
Equifax, Inc.,
3.30%, 12/15/22		165		164
George Washington University (The),
3.49%, 9/15/22		50		53
Massachusetts Institute of Technology,
5.60%, 7/1/11(3)		190		276
Princeton University,
4.95%, 3/1/19		100		119
SAIC, Inc.,
5.95%, 12/1/40		200		213
Trustees of Dartmouth College,
4.75%, 6/1/19		170		199
University of Pennsylvania,
4.67%, 9/1/12(4)		100		112
Vanderbilt University,
5.25%, 4/1/19		100		120
Western Union (The) Co.,
5.93%, 10/1/16		355		390
6.20%, 11/17/36		50		51
6.20%, 6/21/40		70		71
				2,453
Computers - 0.3%
Computer Sciences Corp.,
2.50%, 9/15/15		65		66
Dell, Inc.,
5.65%, 4/15/18		530		615
5.88%, 6/15/19		100		115
7.10%, 4/15/28		100		120

NORTHERN FUNDS QUARTERLY REPORT    11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Computers - 0.3% continued
Hewlett-Packard Co.,
6.13%, 3/1/14	$	1,000	$	1,051
1.55%, 5/30/14		125		125
4.75%, 6/2/14		700		730
2.13%, 9/13/15		450		450
2.65%, 6/1/16		250		249
3.00%, 9/15/16		500		503
2.60%, 9/15/17		250		244
4.38%, 9/15/21		250		248
6.00%, 9/15/41		500		495
International Business Machines Corp.,
1.25%, 5/12/14		100		101
0.75%, 5/11/15		100		101
1.95%, 7/22/16		500		520
1.25%, 2/6/17		250		253
5.70%, 9/14/17		1,450		1,751
8.38%, 11/1/19		50		71
2.90%, 11/1/21		200		210
1.88%, 8/1/22		200		192
6.50%, 1/15/28		100		136
5.60%, 11/30/39		275		354
				8,700
Cosmetics/Personal Care - 0.1%
Colgate-Palmolive Co.,
1.30%, 1/15/17		250		254
2.30%, 5/3/22		165		167
1.95%, 2/1/23		250		243
Estee Lauder (The) Cos., Inc.,
2.35%, 8/15/22		50		50
6.00%, 5/15/37		100		127
Procter & Gamble (The) Co.,
4.85%, 12/15/15		1,208		1,354
1.45%, 8/15/16		50		51
4.70%, 2/15/19		200		236
2.30%, 2/6/22		215		219
5.80%, 8/15/34		100		132
5.55%, 3/5/37		50		67
				2,900
Diversified Financial Services - 1.5%
American Express Co.,
6.15%, 8/28/17		800		964
7.00%, 3/19/18		300		379
2.65%, 12/2/22(1) (2)		632		629
8.15%, 3/19/38		170		277
American Express Credit Corp.,
1.75%, 6/12/15		350		357
2.80%, 9/19/16		1,250		1,323
2.38%, 3/24/17		250		262
Ameriprise Financial, Inc.,
7.30%, 6/28/19		75		97
5.30%, 3/15/20		95		112
Aon Corp.,
5.00%, 9/30/20		350		399
Bear Stearns (The) Cos. LLC,
5.30%, 10/30/15		850		942
5.55%, 1/22/17		50		56
6.40%, 10/2/17		150		180
7.25%, 2/1/18		535		670
BlackRock, Inc.,
3.50%, 12/10/14		275		290
1.38%, 6/1/15		170		173
5.00%, 12/10/19		130		156
4.25%, 5/24/21		150		169
3.38%, 6/1/22		250		266
Boeing Capital Corp.,
2.13%, 8/15/16		275		286
Caterpillar Financial Services Corp.,
6.13%, 2/17/14		100		107
4.75%, 2/17/15		275		297
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		103
5.85%, 9/1/17		592		711
5.45%, 4/15/18		300		358
Charles Schwab (The) Corp.,
0.85%, 12/4/15		90		90
4.45%, 7/22/20		250		282
Credit Suisse USA, Inc.,
4.88%, 1/15/15		375		404
Ford Motor Credit Co. LLC,
2.50%, 1/15/16		500		506
4.21%, 4/15/16		1,000		1,067
4.25%, 2/3/17		1,500		1,607
3.00%, 6/12/17		640		658
5.88%, 8/2/21		500		582
4.25%, 9/20/22		300		317

FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5%continued
Diversified Financial Services - 1.5% continued
General Electric Capital Corp.,
2.10%, 1/7/14	$	300	$	305
5.90%, 5/13/14		370		397
3.75%, 11/14/14		750		791
4.88%, 3/4/15		350		379
1.63%, 7/2/15		150		152
5.00%, 1/8/16		100		111
2.95%, 5/9/16		200		211
2.90%, 1/9/17		750		793
2.30%, 4/27/17		250		259
5.63%, 9/15/17		1,175		1,386
1.60%, 11/20/17		135		135
5.63%, 5/1/18		2,575		3,058
2.10%, 12/11/19		125		125
5.50%, 1/8/20		200		237
4.63%, 1/7/21		1,400		1,588
4.65%, 10/17/21		1,750		1,997
3.15%, 9/7/22		750		766
6.75%, 3/15/32		150		195
6.15%, 8/7/37		150		186
5.88%, 1/14/38		600		724
6.88%, 1/10/39		550		748
HSBC Finance Corp.,
5.50%, 1/19/16		650		726
6.68%, 1/15/21		500		593
Jefferies Group, Inc.,
8.50%, 7/15/19		50		60
John Deere Capital Corp.,
2.95%, 3/9/15		350		367
0.88%, 4/17/15		150		151
0.95%, 6/29/15		150		151
2.25%, 6/7/16		250		262
1.85%, 9/15/16		200		207
2.00%, 1/13/17		115		119
1.40%, 3/15/17		250		252
1.20%, 10/10/17		250		250
5.75%, 9/10/18		200		244
1.70%, 1/15/20		150		148
3.15%, 10/15/21		250		264
2.80%, 1/27/23		150		153
Merrill Lynch & Co., Inc.,
5.45%, 7/15/14		330		350
6.40%, 8/28/17		200		235
6.88%, 4/25/18		505		609
6.88%, 11/15/18		275		337
6.11%, 1/29/37		150		164
7.75%, 5/14/38		175		228
National Rural Utilities Cooperative Finance Corp.,
1.90%, 11/1/15		250		258
5.45%, 4/10/17		300		351
3.05%, 2/15/22		35		37
8.00%, 3/1/32		50		75
PACCAR Financial Corp.,
0.70%, 11/16/15		130		130
1.60%, 3/15/17		90		91
SLM Corp.,
4.63%, 9/25/17		500		512
7.25%, 1/25/22		500		551
Toyota Motor Credit Corp.,
1.25%, 11/17/14		150		152
1.00%, 2/17/15		500		503
0.88%, 7/17/15		150		151
2.80%, 1/11/16		300		316
2.00%, 9/15/16		165		171
2.05%, 1/12/17		250		259
1.75%, 5/22/17		150		154
1.25%, 10/5/17		250		252
4.50%, 6/17/20		300		346
				40,150
Electric - 1.5%
Alabama Power Co.,
0.55%, 10/15/15		60		60
6.13%, 5/15/38		50		66
4.10%, 1/15/42		75		77
3.85%, 12/1/42		60		59
Ameren Illinois Co.,
2.70%, 9/1/22		250		250
American Electric Power Co., Inc.,
1.65%, 12/15/17		40		40
Appalachian Power Co.,
4.60%, 3/30/21		250		288
7.00%, 4/1/38		75		102
Arizona Public Service Co.,
4.50%, 4/1/42		230		245
Baltimore Gas & Electric Co.,
5.90%, 10/1/16		50		58
3.50%, 11/15/21		275		295

NORTHERN FUNDS QUARTERLY REPORT    13    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Electric - 1.5% continued
Carolina Power & Light Co.,
5.30%, 1/15/19	$	150	$	180
3.00%, 9/15/21		150		157
2.80%, 5/15/22		100		103
CenterPoint Energy Houston Electric LLC,
2.25%, 8/1/22		105		103
Cleveland Electric Illuminating (The) Co.,
5.70%, 4/1/17		250		282
Commonwealth Edison Co.,
5.95%, 8/15/16		125		146
1.95%, 9/1/16		100		103
6.15%, 9/15/17		225		273
5.80%, 3/15/18		300		363
4.00%, 8/1/20		410		458
6.45%, 1/15/38		200		272
3.80%, 10/1/42		90		88
Consolidated Edison Co. of New York, Inc.,
4.45%, 6/15/20		250		291
5.30%, 3/1/35		150		182
5.85%, 3/15/36		100		127
6.20%, 6/15/36		200		266
6.75%, 4/1/38		100		143
5.50%, 12/1/39		85		106
Constellation Energy Group, Inc.,
4.55%, 6/15/15		100		108
7.60%, 4/1/32		100		135
Consumers Energy Co.,
5.50%, 8/15/16		125		144
6.13%, 3/15/19		200		250
2.85%, 5/15/22		45		47
Delmarva Power & Light Co.,
4.00%, 6/1/42		200		208
Detroit Edison (The) Co.,
5.60%, 6/15/18		125		151
5.70%, 10/1/37		50		63
3.95%, 6/15/42		100		101
Dominion Resources, Inc.,
5.15%, 7/15/15		50		55
1.95%, 8/15/16		200		206
1.40%, 9/15/17		150		150
6.00%, 11/30/17		100		121
6.40%, 6/15/18		20		25
5.25%, 8/1/33		250		285
5.95%, 6/15/35		250		316
7.00%, 6/15/38		20		28
4.90%, 8/1/41		35		39
4.05%, 9/15/42		100		99
DTE Energy Co.,
6.38%, 4/15/33		50		65
Duke Energy Carolinas LLC,
5.30%, 10/1/15		100		113
1.75%, 12/15/16		70		72
5.25%, 1/15/18		200		239
5.10%, 4/15/18		65		78
3.90%, 6/15/21		50		56
6.45%, 10/15/32		106		137
6.10%, 6/1/37		150		190
6.00%, 1/15/38		35		45
6.05%, 4/15/38		175		229
5.30%, 2/15/40		400		480
Duke Energy Corp.,
1.63%, 8/15/17		100		100
6.25%, 6/15/18		100		122
Duke Energy Indiana, Inc.,
6.45%, 4/1/39		250		335
4.20%, 3/15/42		100		102
Entergy Corp.,
4.70%, 1/15/17		125		135
Entergy Louisiana LLC,
1.88%, 12/15/14		85		87
6.50%, 9/1/18		100		122
5.40%, 11/1/24		150		182
Entergy Texas, Inc.,
7.13%, 2/1/19		250		314
Exelon Corp.,
5.63%, 6/15/35		75		84
Exelon Generation Co. LLC,
5.20%, 10/1/19		225		255
4.25%, 6/15/22(1) (2)		250		260
FirstEnergy Corp.,
7.38%, 11/15/31		250		323
FirstEnergy Solutions Corp.,
6.80%, 8/15/39		380		427
Florida Power & Light Co.,
5.55%, 11/1/17		225		271
5.65%, 2/1/37		350		444
5.95%, 2/1/38		150		200

FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Electric - 1.5% continued
5.69%, 3/1/40	$	400	$	521
4.13%, 2/1/42		250		261
4.05%, 6/1/42		100		104
Florida Power Corp.,
0.65%, 11/15/15		100		100
5.80%, 9/15/17		50		60
5.65%, 6/15/18		225		272
3.10%, 8/15/21		25		26
6.35%, 9/15/37		50		67
6.40%, 6/15/38		285		384
Georgia Power Co.,
0.75%, 8/10/15		100		100
0.63%, 11/15/15		65		65
4.25%, 12/1/19		500		571
2.85%, 5/15/22		100		103
4.30%, 3/15/42		60		63
Kansas City Power & Light Co.,
5.30%, 10/1/41		50		58
Metropolitan Edison Co.,
4.88%, 4/1/14		200		210
MidAmerican Energy Co.,
5.30%, 3/15/18		500		598
MidAmerican Energy Holdings Co.,
6.13%, 4/1/36		600		757
6.50%, 9/15/37		200		266
Midamerican Funding LLC,
6.93%, 3/1/29		50		66
Mississippi Power Co.,
4.25%, 3/15/42		100		102
National Fuel Gas Co.,
4.90%, 12/1/21		150		166
Nevada Power Co.,
6.65%, 4/1/36		100		136
5.45%, 5/15/41		35		43
NextEra Energy Capital Holdings, Inc.,
1.20%, 6/1/15		50		50
6.65%, 6/15/67		25		27
Nisource Finance Corp.,
5.25%, 9/15/17		450		515
5.45%, 9/15/20		200		235
4.45%, 12/1/21		165		181
5.95%, 6/15/41		100		115
5.25%, 2/15/43		100		106
Northern States Power Co.,
5.25%, 3/1/18		125		150
2.15%, 8/15/22		350		346
6.25%, 6/1/36		100		138
5.35%, 11/1/39		65		81
NSTAR Electric Co.,
4.88%, 4/15/14		200		211
2.38%, 10/15/22		100		99
Oglethorpe Power Corp.,
5.38%, 11/1/40		150		176
Ohio Power Co.,
6.60%, 2/15/33		100		128
Oncor Electric Delivery Co. LLC,
6.80%, 9/1/18		225		279
4.10%, 6/1/22		250		272
7.25%, 1/15/33		200		262
7.50%, 9/1/38		145		196
Pacific Gas & Electric Co.,
4.80%, 3/1/14		225		236
5.63%, 11/30/17		660		797
4.25%, 5/15/21		150		172
3.25%, 9/15/21		45		48
2.45%, 8/15/22		100		100
6.05%, 3/1/34		450		580
5.80%, 3/1/37		100		124
5.40%, 1/15/40		160		192
3.75%, 8/15/42		50		48
PacifiCorp,
3.85%, 6/15/21		600		677
2.95%, 2/1/22		100		104
6.25%, 10/15/37		275		370
6.00%, 1/15/39		60		80
Peco Energy Co.,
5.35%, 3/1/18		25		30
Pennsylvania Electric Co.,
6.05%, 9/1/17		300		351
PPL Capital Funding, Inc.,
4.20%, 6/15/22		50		54
3.50%, 12/1/22		35		36
PPL Electric Utilities Corp.,
3.00%, 9/15/21		250		265
2.50%, 9/1/22		50		50
6.25%, 5/15/39		275		374
5.20%, 7/15/41		35		42

NORTHERN FUNDS QUARTERLY REPORT    15    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17. 5% continued
Electric - 1.5% continued
PPL Energy Supply LLC,
5.40%, 8/15/14	$	250	$	267
6.50%, 5/1/18		100		120
Progress Energy, Inc.,
3.15%, 4/1/22		160		162
7.75%, 3/1/31		50		68
6.00%, 12/1/39		450		545
PSEG Power LLC,
5.50%, 12/1/15		175		195
2.75%, 9/15/16		35		36
Public Service Co. of Colorado,
3.20%, 11/15/20		1,000		1,091
2.25%, 9/15/22		100		99
Public Service Co. of Oklahoma,
4.40%, 2/1/21		50		57
6.63%, 11/15/37		125		162
Public Service Electric & Gas Co.,
5.30%, 5/1/18		575		690
5.38%, 11/1/39		250		314
3.95%, 5/1/42		50		51
3.65%, 9/1/42		30		29
Puget Sound Energy, Inc.,
5.48%, 6/1/35		25		30
6.27%, 3/15/37		75		100
5.80%, 3/15/40		250		319
5.64%, 4/15/41		80		101
San Diego Gas & Electric Co.,
3.00%, 8/15/21		65		69
6.13%, 9/15/37		50		69
4.50%, 8/15/40		150		169
3.95%, 11/15/41		100		103
4.30%, 4/1/42		150		165
SCANA Corp.,
4.75%, 5/15/21		75		82
4.13%, 2/1/22		135		142
Sierra Pacific Power Co.,
6.00%, 5/15/16		250		289
South Carolina Electric & Gas Co.,
5.25%, 11/1/18		116		139
6.05%, 1/15/38		265		344
4.35%, 2/1/42		115		121
Southern (The) Co.,
2.38%, 9/15/15		250		260
1.95%, 9/1/16		200		206
Southern California Edison Co.,
5.00%, 1/15/14		150		157
5.50%, 8/15/18		100		122
3.88%, 6/1/21		150		169
6.65%, 4/1/29		300		395
6.00%, 1/15/34		100		131
5.55%, 1/15/37		275		342
5.95%, 2/1/38		100		131
6.05%, 3/15/39		50		68
5.50%, 3/15/40		150		191
Southern Power Co.,
4.88%, 7/15/15		150		164
5.15%, 9/15/41		500		563
Southwestern Electric Power Co.,
5.88%, 3/1/18		400		466
3.55%, 2/15/22		150		158
6.20%, 3/15/40		200		250
Southwestern Public Service Co.,
6.00%, 10/1/36		100		125
System Energy Resources, Inc.,
4.10%, 4/1/23		160		165
Tampa Electric Co.,
2.60%, 9/15/22		220		222
4.10%, 6/15/42		50		52
Union Electric Co.,
6.40%, 6/15/17		400		489
3.90%, 9/15/42		50		51
Virginia Electric and Power Co.,
5.40%, 4/30/18		425		513
2.95%, 1/15/22		95		100
6.00%, 1/15/36		50		66
8.88%, 11/15/38		300		511
Westar Energy, Inc.,
4.13%, 3/1/42		115		120
Western Massachusetts Electric Co.,
3.50%, 9/15/21		85		91
Wisconsin Electric Power Co.,
5.70%, 12/1/36		150		191
Wisconsin Power & Light Co.,
2.25%, 11/15/22		300		295
Xcel Energy, Inc.,
4.70%, 5/15/20		100		117
6.50%, 7/1/36		100		134
				39,720

FIXED INCOME FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17. 5% continued
Electrical Components & Equipment - 0.0%
Emerson Electric Co.,
4.75%, 10/15/15	$	100	$	111
5.38%, 10/15/17		100		118
5.25%, 10/15/18		325		393
6.00%, 8/15/32		25		33
6.13%, 4/15/39		50		68
				723
Electronics - 0.1%
Agilent Technologies, Inc.,
5.50%, 9/14/15		700		780
3.20%, 10/1/22		225		228
Honeywell International, Inc.,
5.30%, 3/15/17		200		234
5.30%, 3/1/18		290		347
5.70%, 3/15/36		720		938
5.70%, 3/15/37		125		165
Thermo Fisher Scientific, Inc.,
3.20%, 5/1/15		320		337
2.25%, 8/15/16		100		103
1.85%, 1/15/18		140		142
3.60%, 8/15/21		250		266
				3,540
Engineering & Construction - 0.0%
ABB Finance USA, Inc.,
1.63%, 5/8/17		90		91
Environmental Control - 0.1%
Republic Services, Inc.,
3.80%, 5/15/18		165		181
5.50%, 9/15/19		120		142
5.00%, 3/1/20		400		464
5.25%, 11/15/21		500		589
3.55%, 6/1/22		100		104
Waste Management, Inc.,
5.00%, 3/15/14		100		105
2.60%, 9/1/16		35		37
6.10%, 3/15/18		250		302
2.90%, 9/15/22		110		109
7.10%, 8/1/26		125		167
6.13%, 11/30/39		400		506
				2,706
Food - 0.5%
Campbell Soup Co.,
4.25%, 4/15/21		150		170
2.50%, 8/2/22		55		55
3.80%, 8/2/42		40		39
ConAgra Foods, Inc.,
7.00%, 4/15/19		300		369
3.25%, 9/15/22		55		55
7.00%, 10/1/28		100		126
General Mills, Inc.,
1.55%, 5/16/14		100		101
5.20%, 3/17/15		500		549
3.15%, 12/15/21		500		523
5.40%, 6/15/40		70		86
H.J. Heinz Co.,
1.50%, 3/1/17		310		314
H.J. Heinz Finance Co.,
6.75%, 3/15/32		50		64
Hershey (The) Co.,
1.50%, 11/1/16		250		255
Ingredion, Inc.,
1.80%, 9/25/17		155		154
Kellogg Co.,
1.88%, 11/17/16		55		56
1.75%, 5/17/17		75		76
3.25%, 5/21/18		130		142
4.15%, 11/15/19		335		380
7.45%, 4/1/31		100		138
Kraft Foods Group, Inc.,
1.63%, 6/4/15(1) (2)		100		102
3.50%, 6/6/22(1) (2)		1,130		1,206
5.00%, 6/4/42(1) (2)		405		455
Kroger (The) Co.,
3.90%, 10/1/15		80		86
2.20%, 1/15/17		190		196
6.15%, 1/15/20		25		30
3.40%, 4/15/22		400		414
7.50%, 4/1/31		200		260
6.90%, 4/15/38		100		129
Mondelez International, Inc.,
4.13%, 2/9/16		500		545
6.50%, 8/11/17		150		183
6.13%, 2/1/18		815		992
6.13%, 8/23/18		50		61
5.38%, 2/10/20		500		604
6.50%, 11/1/31		150		193
7.00%, 8/11/37		100		139

NORTHERN FUNDS QUARTERLY REPORT    17    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Food - 0.5% continued
6.88%, 2/1/38	$	100	$	138
6.88%, 1/26/39		100		138
6.50%, 2/9/40		500		672
Safeway, Inc.,
3.40%, 12/1/16		165		170
6.35%, 8/15/17		275		312
5.00%, 8/15/19		385		414
3.95%, 8/15/20		350		350
Sysco Corp.,
2.60%, 6/12/22		95		97
6.63%, 3/17/39		200		290
Tyson Foods, Inc.,
4.50%, 6/15/22		300		325
Unilever Capital Corp.,
0.45%, 7/30/15		500		498
4.25%, 2/10/21		250		289
5.90%, 11/15/32		125		172
				13,112
Forest Products & Paper - 0.1%
Georgia-Pacific LLC,
7.75%, 11/15/29		500		684
International Paper Co.,
5.30%, 4/1/15		100		109
7.95%, 6/15/18		325		420
7.50%, 8/15/21		350		458
4.75%, 2/15/22		125		141
7.30%, 11/15/39		45		61
6.00%, 11/15/41		250		296
Westvaco Corp.,
7.95%, 2/15/31		100		131
				2,300
Gas - 0.1%
AGL Capital Corp.,
3.50%, 9/15/21		150		162
5.88%, 3/15/41		100		131
CenterPoint Energy, Inc.,
6.50%, 5/1/18		40		49
KeySpan Corp.,
5.80%, 4/1/35		175		205
Sempra Energy,
2.00%, 3/15/14		200		203
2.30%, 4/1/17		80		83
6.15%, 6/15/18		400		491
2.88%, 10/1/22		60		60
Southern California Gas Co.,
5.75%, 11/15/35		150		191
3.75%, 9/15/42		75		75
Southern Union Co.,
8.25%, 11/15/29		25		32
				1,682
Hand/Machine Tools - 0.0%
Kennametal, Inc.,
2.65%, 11/1/19		100		100
Stanley Black & Decker, Inc.,
3.40%, 12/1/21		265		276
2.90%, 11/1/22		65		66
				442
Healthcare - Products - 0.2%
Baxter International, Inc.,
4.63%, 3/15/15		100		108
1.85%, 1/15/17		100		103
5.38%, 6/1/18		225		270
2.40%, 8/15/22		200		198
6.25%, 12/1/37		30		41
3.65%, 8/15/42		30		29
Becton, Dickinson and Co.,
1.75%, 11/8/16		250		257
3.25%, 11/12/20		430		462
3.13%, 11/8/21		150		160
5.00%, 11/12/40		150		181
Boston Scientific Corp.,
7.38%, 1/15/40		100		136
CR Bard, Inc.,
1.38%, 1/15/18		160		161
Medtronic, Inc.,
3.00%, 3/15/15		250		263
4.75%, 9/15/15		200		222
4.13%, 3/15/21		500		568
3.13%, 3/15/22		150		159
6.50%, 3/15/39		100		141
4.50%, 3/15/42		100		114
St. Jude Medical, Inc.,
2.50%, 1/15/16		150		156
Stryker Corp.,
2.00%, 9/30/16		125		130

FIXED INCOME FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Healthcare - Products - 0.2% continued
Zimmer Holdings, Inc.,
3.38%, 11/30/21	$	250	$	259
				4,118
Healthcare - Services - 0.3%
Aetna, Inc.,
1.75%, 5/15/17		50		51
1.50%, 11/15/17		100		100
3.95%, 9/1/20		375		409
4.13%, 6/1/21		250		278
6.75%, 12/15/37		150		208
4.50%, 5/15/42		100		105
Cigna Corp.,
4.00%, 2/15/22		335		366
5.38%, 2/15/42		250		291
Humana, Inc.,
3.15%, 12/1/22		85		85
Memorial Sloan-Kettering Cancer Center,
4.13%, 7/1/52		100		99
Quest Diagnostics, Inc.,
6.40%, 7/1/17		100		118
4.75%, 1/30/20		340		375
5.75%, 1/30/40		85		97
UnitedHealth Group, Inc.,
5.00%, 8/15/14		6		6
1.88%, 11/15/16		125		129
1.40%, 10/15/17		85		85
4.70%, 2/15/21		300		349
2.88%, 3/15/22		800		820
5.80%, 3/15/36		250		302
6.63%, 11/15/37		350		463
6.88%, 2/15/38		100		137
5.70%, 10/15/40		135		164
4.38%, 3/15/42		100		104
WellPoint, Inc.,
5.25%, 1/15/16		150		167
2.38%, 2/15/17		200		207
5.88%, 6/15/17		350		415
1.88%, 1/15/18		205		208
3.13%, 5/15/22		100		101
3.30%, 1/15/23		300		308
5.85%, 1/15/36		600		708
				7,255
Home Furnishings - 0.0%
Whirlpool Corp.,
4.85%, 6/15/21		100		107
4.70%, 6/1/22		250		266
				373
Household Products/Wares - 0.1%
Clorox (The) Co.,
5.00%, 1/15/15		75		81
5.95%, 10/15/17		25		30
3.05%, 9/15/22		250		258
Kimberly-Clark Corp.,
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		509
				1,177
Housewares - 0.0%
Newell Rubbermaid, Inc.,
2.00%, 6/15/15		50		51
4.70%, 8/15/20		350		386
				437
Insurance - 0.9%
ACE INA Holdings, Inc.,
5.80%, 3/15/18		300		366
5.90%, 6/15/19		355		439
6.70%, 5/15/36		50		69
Aflac, Inc.,
8.50%, 5/15/19		1,000		1,362
6.90%, 12/17/39		80		106
Alleghany Corp.,
4.95%, 6/27/22		165		181
Allstate (The) Corp.,
6.75%, 5/15/18		600		750
5.55%, 5/9/35		50		61
6.13%, 5/15/37		100		104
5.20%, 1/15/42		225		267
6.50%, 5/15/57		225		239
American International Group, Inc.,
4.25%, 9/15/14		250		263
5.05%, 10/1/15		100		110
3.80%, 3/22/17		285		308
5.45%, 5/18/17		300		345
5.85%, 1/16/18		225		266

NORTHERN FUNDS QUARTERLY REPORT    19    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Insurance - 0.9% continued
8.25%, 8/15/18	$	150	$	197
4.88%, 6/1/22		500		571
6.25%, 5/1/36		100		129
8.18%, 5/15/58		440		573
Berkshire Hathaway Finance Corp.,
4.85%, 1/15/15		575		624
5.40%, 5/15/18		300		361
5.75%, 1/15/40		255		312
4.40%, 5/15/42		100		103
Berkshire Hathaway, Inc.,
3.20%, 2/11/15		500		526
1.90%, 1/31/17		125		129
Chubb (The) Corp.,
5.75%, 5/15/18		325		399
6.00%, 5/11/37		50		65
6.50%, 5/15/38		85		117
CNA Financial Corp.,
5.85%, 12/15/14		290		315
Genworth Financial, Inc.,
6.52%, 5/22/18		50		54
7.20%, 2/15/21		500		540
Hartford Financial Services Group, Inc.,
5.38%, 3/15/17		150		170
5.50%, 3/30/20		250		290
5.13%, 4/15/22		250		288
5.95%, 10/15/36		75		86
Lincoln National Corp.,
4.20%, 3/15/22		165		177
6.15%, 4/7/36		150		175
6.30%, 10/9/37		100		120
7.00%, 5/17/66		1,000		1,023
Markel Corp.,
4.90%, 7/1/22		100		109
Marsh & McLennan Cos., Inc.,
5.75%, 9/15/15		236		265
MetLife, Inc.,
2.38%, 2/6/14		450		458
5.00%, 6/15/15		825		908
6.75%, 6/1/16		170		201
3.05%, 12/15/22		200		204
6.38%, 6/15/34		150		196
5.70%, 6/15/35		700		855
6.40%, 12/15/36		150		160
4.13%, 8/13/42		50		50
Primerica, Inc.,
4.75%, 7/15/22		100		110
Principal Financial Group, Inc.,
1.85%, 11/15/17		65		65
4.63%, 9/15/42		40		41
4.35%, 5/15/43		150		149
Principal Life Income Funding Trusts,
5.10%, 4/15/14		231		244
Progressive (The) Corp.,
3.75%, 8/23/21		330		363
Protective Life Corp.,
7.38%, 10/15/19		300		365
8.45%, 10/15/39		200		261
Prudential Financial, Inc.,
5.10%, 9/20/14		40		43
3.88%, 1/14/15		200		212
6.00%, 12/1/17		425		510
7.38%, 6/15/19		500		635
5.38%, 6/21/20		175		205
4.50%, 11/16/21		250		281
5.75%, 7/15/33		50		57
6.63%, 12/1/37		200		249
8.88%, 6/15/38		50		61
6.20%, 11/15/40		75		91
5.63%, 6/15/43		200		207
Reinsurance Group of America, Inc.,
6.45%, 11/15/19		1,000		1,166
Swiss Re Solutions Holding Corp.,
6.45%, 3/1/19		575		670
Torchmark Corp.,
3.80%, 9/15/22		50		51
Travelers (The) Cos., Inc.,
5.50%, 12/1/15		150		170
5.80%, 5/15/18		375		454
6.25%, 6/15/37		375		508
5.35%, 11/1/40		25		31
Unum Group,
5.75%, 8/15/42		150		161
Willis North America, Inc.,
6.20%, 3/28/17		1,000		1,139
				24,485
Internet - 0.1%
Amazon.com, Inc.,
1.20%, 11/29/17		315		313

FIXED INCOME FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Internet - 0.1% continued
eBay, Inc.,
0.70%, 7/15/15	$	75	$	75
1.63%, 10/15/15		250		257
4.00%, 7/15/42		235		229
Google, Inc.,
1.25%, 5/19/14		360		365
3.63%, 5/19/21		250		278
Symantec Corp.,
2.75%, 6/15/17		110		113
4.20%, 9/15/20		200		210
				1,840
Iron/Steel - 0.0%
Allegheny Technologies, Inc.,
5.95%, 1/15/21		25		27
Cliffs Natural Resources, Inc.,
6.25%, 10/1/40		200		195
Nucor Corp.,
5.85%, 6/1/18		200		244
6.40%, 12/1/37		150		206
				672
Lodging - 0.0%
Marriott International, Inc.,
3.00%, 3/1/19		250		258
3.25%, 9/15/22		50		50
Starwood Hotels & Resorts Worldwide, Inc.,
6.75%, 5/15/18		200		243
3.13%, 2/15/23		150		149
Wyndham Worldwide Corp.,
2.95%, 3/1/17		185		189
4.25%, 3/1/22		100		103
				992
Machinery - Construction & Mining - 0.1%
Caterpillar, Inc.,
1.38%, 5/27/14		400		405
0.95%, 6/26/15		95		96
5.70%, 8/15/16		50		58
3.90%, 5/27/21		500		561
2.60%, 6/26/22		150		151
5.20%, 5/27/41		450		549
3.80%, 8/15/42		102		101
				1,921
Machinery - Diversified - 0.1%
Deere & Co.,
6.95%, 4/25/14		175		190
2.60%, 6/8/22		125		126
8.10%, 5/15/30		100		152
IDEX Corp.,
4.20%, 12/15/21		200		209
Rockwell Automation, Inc.,
6.25%, 12/1/37		150		205
Roper Industries, Inc.,
1.85%, 11/15/17		160		160
				1,042
Media - 1.1%
CBS Corp.,
1.95%, 7/1/17		30		31
5.75%, 4/15/20		250		299
4.30%, 2/15/21		500		552
3.38%, 3/1/22		100		104
CC Holdings GS V LLC,
2.38%, 12/15/17(1) (2)		100		100
Comcast Corp.,
5.85%, 11/15/15		450		512
4.95%, 6/15/16		250		282
6.50%, 1/15/17		1,500		1,809
5.70%, 5/15/18		400		481
6.45%, 3/15/37		520		667
6.95%, 8/15/37		450		610
6.40%, 5/15/38		600		767
4.65%, 7/15/42		150		158
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc.,
3.55%, 3/15/15		400		421
3.50%, 3/1/16		200		212
5.88%, 10/1/19		650		768
5.00%, 3/1/21		550		617
6.00%, 8/15/40		520		577
Discovery Communications LLC,
3.70%, 6/1/15		250		266
4.38%, 6/15/21		500		558
6.35%, 6/1/40		125		155
4.95%, 5/15/42		50		53
McGraw-Hill (The) Cos., Inc.,
5.90%, 11/15/17		75		87
NBCUniversal Media LLC,
3.65%, 4/30/15		115		122

NORTHERN FUNDS QUARTERLY REPORT    21    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Media - 1.1% continued
2.88%, 4/1/16	$	500	$	527
5.15%, 4/30/20		300		356
4.38%, 4/1/21		650		730
2.88%, 1/15/23		150		151
6.40%, 4/30/40		115		148
4.45%, 1/15/43		50		51
News America, Inc.,
5.30%, 12/15/14		450		489
6.90%, 3/1/19		300		376
4.50%, 2/15/21		450		514
3.00%, 9/15/22(1) (2)		200		201
6.40%, 12/15/35		125		155
6.65%, 11/15/37		550		711
7.85%, 3/1/39		100		140
6.90%, 8/15/39		310		406
Scripps Networks Interactive, Inc.,
2.70%, 12/15/16		100		105
Time Warner Cable, Inc.,
5.85%, 5/1/17		1,325		1,565
6.75%, 7/1/18		450		562
8.75%, 2/14/19		300		405
5.00%, 2/1/20		365		425
4.13%, 2/15/21		250		274
7.30%, 7/1/38		350		465
6.75%, 6/15/39		325		412
5.88%, 11/15/40		200		233
5.50%, 9/1/41		250		278
Time Warner Entertainment Co. L.P.,
8.38%, 3/15/23		75		106
Time Warner, Inc.,
5.88%, 11/15/16		1,150		1,347
4.88%, 3/15/20		160		187
4.75%, 3/29/21		350		402
3.40%, 6/15/22		50		52
6.50%, 11/15/36		600		751
6.20%, 3/15/40		55		67
6.10%, 7/15/40		200		242
5.38%, 10/15/41		500		559
Viacom, Inc.,
1.25%, 2/27/15		40		40
2.50%, 12/15/16		225		235
3.50%, 4/1/17		125		135
6.88%, 4/30/36		500		677
4.50%, 2/27/42		300		296
Walt Disney (The) Co.,
0.88%, 12/1/14		500		504
1.35%, 8/16/16		150		152
1.13%, 2/15/17		250		250
1.10%, 12/1/17		25		25
5.88%, 12/15/17		300		366
5.50%, 3/15/19		400		483
3.75%, 6/1/21		300		332
3.70%, 12/1/42		130		130
				27,225
Metal Fabricate/Hardware - 0.0%
Precision Castparts Corp.,
1.25%, 1/15/18		210		210
Mining - 0.2%
Alcoa, Inc.,
5.55%, 2/1/17		475		514
6.75%, 7/15/18		80		91
5.40%, 4/15/21		75		78
5.90%, 2/1/27		75		77
5.95%, 2/1/37		600		580
Barrick N.A. Finance LLC,
6.80%, 9/15/18		175		216
4.40%, 5/30/21		500		548
7.50%, 9/15/38		100		137
Freeport-McMoRan Copper & Gold, Inc.,
3.55%, 3/1/22		250		248
Newmont Mining Corp.,
5.13%, 10/1/19		315		363
3.50%, 3/15/22		250		258
5.88%, 4/1/35		100		114
4.88%, 3/15/42		150		155
Southern Copper Corp.,
7.50%, 7/27/35		300		385
6.75%, 4/16/40		90		108
				3,872
Miscellaneous Manufacturing - 0.2%
3M Co.,
1.00%, 6/26/17		150		151
5.70%, 3/15/37		350		475
Danaher Corp.,
5.63%, 1/15/18		200		241
3.90%, 6/23/21		250		281

FIXED INCOME FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Miscellaneous Manufacturing - 0.2% continued
Dover Corp.,
4.30%, 3/1/21	$	60	$	69
Eaton Corp.,
1.50%, 11/2/17(1) (2)		215		215
2.75%, 11/2/22(1) (2)		500		498
General Electric Co.,
0.85%, 10/9/15		210		211
5.25%, 12/6/17		750		884
2.70%, 10/9/22		1,080		1,101
Illinois Tool Works, Inc.,
3.38%, 9/15/21		250		272
3.90%, 9/1/42		100		103
Textron, Inc.,
5.60%, 12/1/17		125		142
				4,643
Office/Business Equipment - 0.1%
Xerox Corp.,
6.75%, 2/1/17		500		581
2.95%, 3/15/17		80		82
6.35%, 5/15/18		500		577
5.63%, 12/15/19		120		134
4.50%, 5/15/21		30		32
6.75%, 12/15/39		60		72
				1,478
Oil & Gas - 0.8%
Anadarko Petroleum Corp.,
6.38%, 9/15/17		1,640		1,959
6.95%, 6/15/19		500		632
6.20%, 3/15/40		150		185
Apache Corp.,
5.63%, 1/15/17		250		293
3.63%, 2/1/21		200		218
6.00%, 1/15/37		400		505
5.10%, 9/1/40		100		114
4.75%, 4/15/43		250		272
4.25%, 1/15/44		150		153
Chevron Corp.,
1.10%, 12/5/17		200		201
4.95%, 3/3/19		300		358
Conoco, Inc.,
6.95%, 4/15/29		150		209
ConocoPhillips,
4.60%, 1/15/15		420		454
6.65%, 7/15/18		100		127
5.75%, 2/1/19		1,150		1,414
5.90%, 10/15/32		250		320
5.90%, 5/15/38		100		132
6.50%, 2/1/39		525		745
ConocoPhillips Co.,
1.05%, 12/15/17		250		249
Devon Energy Corp.,
2.40%, 7/15/16		80		83
6.30%, 1/15/19		500		620
4.00%, 7/15/21		200		221
7.95%, 4/15/32		100		148
4.75%, 5/15/42		135		144
Devon Financing Corp. LLC,
7.88%, 9/30/31		200		291
EOG Resources, Inc.,
2.95%, 6/1/15		250		263
5.63%, 6/1/19		215		264
4.10%, 2/1/21		500		570
2.63%, 3/15/23		50		50
EQT Corp.,
4.88%, 11/15/21		375		403
Hess Corp.,
7.13%, 3/15/33		75		100
6.00%, 1/15/40		525		641
5.60%, 2/15/41		175		207
Marathon Oil Corp.,
6.00%, 10/1/17		285		343
5.90%, 3/15/18		150		181
2.80%, 11/1/22		250		252
6.60%, 10/1/37		75		100
Marathon Petroleum Corp.,
3.50%, 3/1/16		200		213
5.13%, 3/1/21		75		88
6.50%, 3/1/41		260		329
Murphy Oil Corp.,
4.00%, 6/1/22		100		101
7.05%, 5/1/29		100		123
Nabors Industries, Inc.,
4.63%, 9/15/21		200		215
Noble Energy, Inc.,
4.15%, 12/15/21		250		276
6.00%, 3/1/41		250		301

NORTHERN FUNDS QUARTERLY REPORT    23    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Oil & Gas - 0.8% continued
Occidental Petroleum Corp.,
1.75%, 2/15/17	$	250	$	256
1.50%, 2/15/18		50		51
4.10%, 2/1/21		750		858
3.13%, 2/15/22		100		106
Pemex Project Funding Master Trust,
5.75%, 3/1/18		925		1,080
6.63%, 6/15/35		200		254
Phillips 66,
2.95%, 5/1/17(1) (2)		150		159
5.88%, 5/1/42(1) (2)		735		884
Pioneer Natural Resources Co.,
6.65%, 3/15/17		150		177
6.88%, 5/1/18		100		122
3.95%, 7/15/22		85		89
7.20%, 1/15/28		100		127
Pride International, Inc.,
6.88%, 8/15/20		1,000		1,265
Rowan Cos., Inc.,
5.00%, 9/1/17		200		222
4.88%, 6/1/22		100		109
5.40%, 12/1/42		75		76
Southwestern Energy Co.,
4.10%, 3/15/22(1) (2)		100		108
Valero Energy Corp.,
4.50%, 2/1/15		230		246
9.38%, 3/15/19		100		138
7.50%, 4/15/32		50		64
6.63%, 6/15/37		325		400
				21,858
Oil & Gas Services - 0.2%
Baker Hughes, Inc.,
7.50%, 11/15/18		1,000		1,325
3.20%, 8/15/21		100		107
5.13%, 9/15/40		375		451
Cameron International Corp.,
1.60%, 4/30/15		150		151
4.50%, 6/1/21		125		140
Halliburton Co.,
5.90%, 9/15/18		350		434
3.25%, 11/15/21		595		637
6.70%, 9/15/38		75		105
7.45%, 9/15/39		350		533
National Oilwell Varco, Inc.,
3.95%, 12/1/42		125		127
Weatherford International, Inc.,
6.35%, 6/15/17		100		114
				4,124
Packaging & Containers - 0.0%
Bemis Co., Inc.,
5.65%, 8/1/14		65		69
Sonoco Products Co.,
4.38%, 11/1/21		25		27
5.75%, 11/1/40		150		173
				269
Pharmaceuticals - 0.7%
AbbVie, Inc.,
1.75%, 11/6/17(1) (2)		265		268
2.90%, 11/6/22(1) (2)		1,000		1,018
4.40%, 11/6/42(1) (2)		165		175
Bristol-Myers Squibb Co.,
5.45%, 5/1/18		340		411
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
3.20%, 6/15/22		150		155
Eli Lilly & Co.,
5.20%, 3/15/17		775		905
5.55%, 3/15/37		250		313
Express Scripts Holding Co.,
3.13%, 5/15/16		100		105
2.65%, 2/15/17(1) (2)		725		754
7.25%, 6/15/19		440		564
4.75%, 11/15/21(1) (2)		500		567
GlaxoSmithKline Capital, Inc.,
4.38%, 4/15/14		100		105
5.65%, 5/15/18		800		974
5.38%, 4/15/34		150		182
6.38%, 5/15/38		380		525
Johnson & Johnson,
5.55%, 8/15/17		350		422
5.15%, 7/15/18		200		243
3.55%, 5/15/21		250		281

FIXED INCOME FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Pharmaceuticals - 0.7% continued
6.95%, 9/1/29	$	100	$	142
5.95%, 8/15/37		100		139
4.85%, 5/15/41		400		495
McKesson Corp.,
5.70%, 3/1/17		275		325
2.70%, 12/15/22		120		120
6.00%, 3/1/41		250		330
Mead Johnson Nutrition Co.,
4.90%, 11/1/19		250		285
5.90%, 11/1/39		50		61
Medco Health Solutions, Inc.,
7.13%, 3/15/18		300		374
Merck & Co., Inc.,
4.75%, 3/1/15		375		409
6.00%, 9/15/17		350		429
5.00%, 6/30/19		725		873
5.75%, 11/15/36		50		66
5.85%, 6/30/39		825		1,112
3.60%, 9/15/42		25		25
Novartis Capital Corp.,
4.40%, 4/24/20		185		216
2.40%, 9/21/22		40		40
Pfizer, Inc.,
4.50%, 2/15/14		250		261
5.35%, 3/15/15		335		369
6.20%, 3/15/19		1,000		1,264
7.20%, 3/15/39		450		690
Pharmacia Corp.,
6.60%, 12/1/28		125		167
Teva Pharmaceutical Finance Co. LLC,
5.55%, 2/1/16		100		113
6.15%, 2/1/36		45		59
Watson Pharmaceuticals, Inc.,
1.88%, 10/1/17		20		20
3.25%, 10/1/22		500		510
4.63%, 10/1/42		60		63
Wyeth LLC,
5.50%, 2/1/14		815		859
5.50%, 2/15/16		425		485
5.95%, 4/1/37		225		300
				18,787
Pipelines - 0.5%
Buckeye Partners L.P.,
6.05%, 1/15/18		85		96
CenterPoint Energy Resources Corp.,
6.00%, 5/15/18		85		102
6.63%, 11/1/37		50		65
5.85%, 1/15/41		50		63
DCP Midstream Operating L.P.,
2.50%, 12/1/17		50		50
El Paso Natural Gas Co. LLC,
5.95%, 4/15/17		350		405
8.38%, 6/15/32		100		142
El Paso Pipeline Partners Operating Co. LLC,
4.70%, 11/1/42		155		152
Enbridge Energy Partners L.P.,
5.20%, 3/15/20		95		107
4.20%, 9/15/21		250		269
7.50%, 4/15/38		50		64
Energy Transfer Partners L.P.,
6.13%, 2/15/17		350		405
9.00%, 4/15/19		187		247
7.50%, 7/1/38		50		65
6.50%, 2/1/42		500		612
Enterprise Products Operating LLC,
5.60%, 10/15/14		250		271
3.20%, 2/1/16		200		211
6.30%, 9/15/17		335		405
5.25%, 1/31/20		300		356
4.05%, 2/15/22		1,000		1,105
6.88%, 3/1/33		50		63
7.55%, 4/15/38		50		69
4.85%, 8/15/42		230		247
4.45%, 2/15/43		125		126
Kinder Morgan Energy Partners L.P.,
5.13%, 11/15/14		250		269
5.95%, 2/15/18		495		593
6.85%, 2/15/20		70		88
5.80%, 3/1/21		300		359
4.15%, 3/1/22		175		190
7.40%, 3/15/31		250		326
7.30%, 8/15/33		100		130
6.95%, 1/15/38		150		197
6.55%, 9/15/40		100		125
6.38%, 3/1/41		135		167
5.00%, 8/15/42		80		85
Magellan Midstream Partners L.P.,
4.25%, 2/1/21		200		221

NORTHERN FUNDS QUARTERLY REPORT    25    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Pipelines - 0.5% continued
ONEOK Partners L.P.,
3.25%, 2/1/16	$	135	$	142
6.15%, 10/1/16		200		233
2.00%, 10/1/17		75		76
8.63%, 3/1/19		350		465
ONEOK, Inc.,
5.20%, 6/15/15		200		217
4.25%, 2/1/22		250		272
Panhandle Eastern Pipeline Co. L.P.,
6.20%, 11/1/17		100		120
Plains All American Pipeline L.P./PAA Finance Corp.,
6.13%, 1/15/17		200		236
6.50%, 5/1/18		300		370
5.75%, 1/15/20		200		242
5.00%, 2/1/21		100		116
5.15%, 6/1/42		150		169
4.30%, 1/31/43		100		100
Spectra Energy Capital LLC,
6.20%, 4/15/18		100		122
7.50%, 9/15/38		50		69
Sunoco Logistics Partners Operations L.P.,
4.65%, 2/15/22		165		180
Tennessee Gas Pipeline Co. LLC,
7.00%, 10/15/28		50		68
Transcontinental Gas Pipe Line Co. LLC,
4.45%, 8/1/42		125		129
Williams (The) Cos., Inc.,
8.75%, 3/15/32		192		266
Williams Partners L.P.,
5.25%, 3/15/20		180		207
4.13%, 11/15/20		300		326
3.35%, 8/15/22		250		254
6.30%, 4/15/40		130		159
Williams Partners L.P./Williams Partners Finance Corp.,
7.25%, 2/1/17		100		121
				13,106
Real Estate - 0.0%
Regency Centers L.P.,
5.88%, 6/15/17		25		29
Real Estate Investment Trusts - 0.5%
Alexandria Real Estate Equities, Inc.,
4.60%, 4/1/22		100		107
AvalonBay Communities, Inc.,
6.10%, 3/15/20		150		181
2.95%, 9/15/22		50		50
BioMed Realty L.P.,
3.85%, 4/15/16		100		105
Boston Properties L.P.,
5.63%, 4/15/15		100		110
3.70%, 11/15/18		50		54
5.88%, 10/15/19		500		596
3.85%, 2/1/23		100		105
Brandywine Operating Partnership L.P.,
5.70%, 5/1/17		150		170
BRE Properties, Inc.,
5.20%, 3/15/21		200		226
Camden Property Trust,
2.95%, 12/15/22		150		146
CommonWealth REIT,
6.25%, 6/15/17		75		82
Digital Realty Trust L.P.,
3.63%, 10/1/22		250		245
Duke Realty L.P.,
5.95%, 2/15/17		1,000		1,143
4.38%, 6/15/22		100		105
Entertainment Properties,
7.75%, 7/15/20		50		58
Equity One, Inc.,
3.75%, 11/15/22		100		99
ERP Operating L.P.,
4.75%, 7/15/20		335		377
4.63%, 12/15/21		85		96
Federal Realty Investment Trust,
3.00%, 8/1/22		25		25
HCP, Inc.,
6.00%, 1/30/17		150		172
3.75%, 2/1/19		100		105
2.63%, 2/1/20		50		50
5.38%, 2/1/21		960		1,093
Health Care REIT, Inc.,
3.63%, 3/15/16		500		528
2.25%, 3/15/18		25		25
4.13%, 4/1/19		150		161
5.13%, 3/15/43		150		144
Healthcare Realty Trust, Inc.,
5.75%, 1/15/21		200		225

FIXED INCOME FUNDS    26    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Real Estate Investment Trusts - 0.5% continued
Highwoods Realty L.P.,
3.63%, 1/15/23	$	100	$	98
Hospitality Properties Trust,
5.63%, 3/15/17		500		552
6.70%, 1/15/18		75		86
5.00%, 8/15/22		100		106
Kimco Realty Corp.,
6.88%, 10/1/19		200		247
Liberty Property L.P.,
5.13%, 3/2/15		100		108
6.63%, 10/1/17		50		60
4.13%, 6/15/22		100		105
Mack-Cali Realty L.P.,
4.50%, 4/18/22		100		107
National Retail Properties, Inc.,
3.80%, 10/15/22		100		101
ProLogis L.P.,
4.50%, 8/15/17		85		93
6.63%, 5/15/18		350		423
6.88%, 3/15/20		100		121
Realty Income Corp.,
2.00%, 1/31/18		250		250
Simon Property Group L.P.,
4.20%, 2/1/15		85		90
5.10%, 6/15/15		250		275
5.25%, 12/1/16		400		458
2.15%, 9/15/17		225		233
6.13%, 5/30/18		870		1,060
4.38%, 3/1/21		250		281
2.75%, 2/1/23		100		100
UDR, Inc.,
4.63%, 1/10/22		165		181
Ventas Realty L.P./Ventas Capital Corp.,
2.00%, 2/15/18		250		250
4.00%, 4/30/19		200		215
4.75%, 6/1/21		50		55
4.25%, 3/1/22		85		90
Vornado Realty L.P.,
5.00%, 1/15/22		250		276
				12,604
Retail - 0.7%
AutoZone, Inc.,
4.00%, 11/15/20		250		271
3.70%, 4/15/22		55		58
Costco Wholesale Corp.,
5.50%, 3/15/17		250		295
1.13%, 12/15/17		400		403
CVS Caremark Corp.,
5.75%, 6/1/17		341		408
4.75%, 5/18/20		250		293
4.13%, 5/15/21		100		113
2.75%, 12/1/22		100		100
6.25%, 6/1/27		250		330
6.13%, 9/15/39		175		224
Darden Restaurants, Inc.,
3.35%, 11/1/22		160		155
Home Depot (The), Inc.,
5.40%, 3/1/16		800		914
4.40%, 4/1/21		250		295
5.88%, 12/16/36		350		460
5.95%, 4/1/41		250		338
Kohl’s Corp.,
4.00%, 11/1/21		85		90
3.25%, 2/1/23		100		97
6.88%, 12/15/37		150		192
Lowe’s Cos., Inc.,
5.00%, 10/15/15		325		363
1.63%, 4/15/17		50		51
4.63%, 4/15/20		100		117
5.80%, 10/15/36		100		124
5.80%, 4/15/40		350		446
4.65%, 4/15/42		50		56
Macy’s Retail Holdings, Inc.,
5.90%, 12/1/16		213		250
3.88%, 1/15/22		30		32
2.88%, 2/15/23		150		147
6.90%, 1/15/32		250		298
5.13%, 1/15/42		40		43
McDonald’s Corp.,
5.80%, 10/15/17		750		911
5.35%, 3/1/18		100		121
3.63%, 5/20/21		100		112
6.30%, 10/15/37		75		104
3.70%, 2/15/42		100		99
Nordstrom, Inc.,
6.25%, 1/15/18		325		394
4.00%, 10/15/21		150		167
7.00%, 1/15/38		50		71

NORTHERN FUNDS QUARTERLY REPORT    27    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Retail - 0.7% continued
Target Corp.,
1.13%, 7/18/14	$	50	$	51
5.38%, 5/1/17		575		677
3.88%, 7/15/20		195		219
2.90%, 1/15/22		1,015		1,076
6.50%, 10/15/37		125		174
7.00%, 1/15/38		325		477
Walgreen Co.,
5.25%, 1/15/19		525		616
Wal-Mart Stores, Inc.,
2.88%, 4/1/15		225		236
3.63%, 7/8/20		200		222
4.25%, 4/15/21		1,600		1,858
5.88%, 4/5/27		250		335
5.25%, 9/1/35		175		213
6.20%, 4/15/38		275		374
5.63%, 4/1/40		155		201
4.88%, 7/8/40		90		106
5.00%, 10/25/40		350		423
5.63%, 4/15/41		775		1,015
Yum! Brands, Inc.,
6.25%, 4/15/16		150		171
3.75%, 11/1/21		35		37
6.88%, 11/15/37		550		751
				18,174
Savings & Loans - 0.0%
Santander Holdings USA, Inc.,
4.63%, 4/19/16		30		31
Semiconductors - 0.1%
Altera Corp.,
1.75%, 5/15/17		35		36
Applied Materials, Inc.,
2.65%, 6/15/16		230		242
5.85%, 6/15/41		100		122
Broadcom Corp.,
2.70%, 11/1/18		250		268
2.50%, 8/15/22(1) (2)		100		99
Intel Corp.,
1.95%, 10/1/16		300		310
1.35%, 12/15/17		150		150
2.70%, 12/15/22		450		449
4.80%, 10/1/41		250		275
4.25%, 12/15/42		150		151
Texas Instruments, Inc.,
1.38%, 5/15/14		400		405
0.45%, 8/3/15		135		134
				2,641
Software - 0.2%
Adobe Systems, Inc.,
3.25%, 2/1/15		350		367
Autodesk, Inc.,
1.95%, 12/15/17		75		75
BMC Software, Inc.,
4.25%, 2/15/22		150		152
4.50%, 12/1/22		100		103
CA, Inc.,
5.38%, 12/1/19		250		285
Fiserv, Inc.,
3.13%, 10/1/15		250		262
3.13%, 6/15/16		170		179
4.63%, 10/1/20		250		273
3.50%, 10/1/22		100		102
Intuit, Inc.,
5.75%, 3/15/17		100		115
Microsoft Corp.,
0.88%, 11/15/17		125		124
4.20%, 6/1/19		250		288
3.00%, 10/1/20		330		356
5.20%, 6/1/39		200		245
4.50%, 10/1/40		210		233
3.50%, 11/15/42		500		483
Oracle Corp.,
5.25%, 1/15/16		375		424
5.75%, 4/15/18		50		61
5.00%, 7/8/19		530		637
3.88%, 7/15/20		300		338
2.50%, 10/15/22		200		202
6.50%, 4/15/38		550		765
6.13%, 7/8/39		100		133
				6,202
Telecommunications - 1.0%
Alltel Corp.,
7.88%, 7/1/32		100		157
AT&T Corp.,
8.00%, 11/15/31		165		250

FIXED INCOME FUNDS    28    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Telecommunications - 1.0% continued
AT&T, Inc.,
5.10%, 9/15/14	$	1,450	$	1,558
2.50%, 8/15/15		200		209
2.95%, 5/15/16		500		529
2.40%, 8/15/16		285		297
5.60%, 5/15/18		175		211
5.80%, 2/15/19		900		1,104
2.63%, 12/1/22		250		250
6.15%, 9/15/34		125		154
6.80%, 5/15/36		50		67
6.50%, 9/1/37		600		785
6.30%, 1/15/38		175		224
6.40%, 5/15/38		725		941
6.55%, 2/15/39		625		821
5.35%, 9/1/40		500		582
Bellsouth Capital Funding Corp.,
7.88%, 2/15/30		225		297
BellSouth Corp.,
5.20%, 9/15/14		1,100		1,182
5.20%, 12/15/16		1,300		1,491
BellSouth Telecommunications, Inc.,
6.38%, 6/1/28		175		210
Cellco Partnership/Verizon Wireless Capital LLC,
5.55%, 2/1/14		472		495
8.50%, 11/15/18		1,300		1,788
CenturyLink, Inc.,
7.60%, 9/15/39		200		208
7.65%, 3/15/42		100		105
Cisco Systems, Inc.,
5.50%, 2/22/16		925		1,057
3.15%, 3/14/17		100		109
4.45%, 1/15/20		335		388
5.90%, 2/15/39		500		651
5.50%, 1/15/40		195		248
Corning, Inc.,
4.25%, 8/15/20		250		279
4.75%, 3/15/42		185		195
Embarq Corp.,
8.00%, 6/1/36		400		442
GTE Corp.,
6.94%, 4/15/28		150		200
Harris Corp.,
6.38%, 6/15/19		50		59
Juniper Networks, Inc.,
4.60%, 3/15/21		100		106
Motorola Solutions, Inc.,
6.00%, 11/15/17		200		235
3.75%, 5/15/22		250		255
New Cingular Wireless Services, Inc.,
8.75%, 3/1/31		400		649
Qwest Corp.,
6.88%, 9/15/33		125		126
7.25%, 10/15/35		150		159
Verizon Communications, Inc.,
5.55%, 2/15/16		1,300		1,480
3.00%, 4/1/16		100		106
5.50%, 2/15/18		535		642
6.10%, 4/15/18		175		215
6.35%, 4/1/19		650		821
3.50%, 11/1/21		1,290		1,411
8.95%, 3/1/39		650		1,115
6.00%, 4/1/41		180		235
3.85%, 11/1/42		140		138
Verizon Global Funding Corp.,
7.75%, 12/1/30		500		732
Verizon New York, Inc.,
7.38%, 4/1/32		150		199
				26,167
Toys, Games & Hobbies - 0.0%
Hasbro, Inc.,
6.35%, 3/15/40		250		309
Mattel, Inc.,
2.50%, 11/1/16		85		88
6.20%, 10/1/40		50		62
				459
Transportation - 0.4%
Burlington Northern Santa Fe LLC,
5.65%, 5/1/17		500		589
5.75%, 3/15/18		100		121
4.10%, 6/1/21		20		22
3.45%, 9/15/21		50		54
6.20%, 8/15/36		100		128
6.15%, 5/1/37		100		129
5.75%, 5/1/40		750		925
4.95%, 9/15/41		250		282
4.40%, 3/15/42		65		68

NORTHERN FUNDS QUARTERLY REPORT    29    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 17.5% continued
Transportation - 0.4% continued
4.38%, 9/1/42	$	100	$	105
CSX Corp.,
6.25%, 4/1/15		250		280
4.25%, 6/1/21		100		112
6.00%, 10/1/36		100		124
6.15%, 5/1/37		150		190
6.22%, 4/30/40		350		452
4.75%, 5/30/42		50		54
4.10%, 3/15/44		50		49
FedEx Corp.,
8.00%, 1/15/19		290		382
3.88%, 8/1/42		50		49
Norfolk Southern Corp.,
5.26%, 9/17/14		200		215
5.90%, 6/15/19		320		390
3.25%, 12/1/21		250		262
3.00%, 4/1/22		450		462
7.25%, 2/15/31		500		700
3.95%, 10/1/42		150		149
Ryder System, Inc.,
3.60%, 3/1/16		85		89
2.50%, 3/1/17		200		203
3.50%, 6/1/17		45		48
2.50%, 3/1/18		100		102
Union Pacific Corp.,
7.00%, 2/1/16		100		116
5.75%, 11/15/17		625		749
7.88%, 1/15/19		250		324
4.75%, 9/15/41		100		112
4.30%, 6/15/42		200		211
United Parcel Service of America, Inc.,
8.38%, 4/1/20		50		69
United Parcel Service, Inc.,
5.50%, 1/15/18		775		931
3.13%, 1/15/21		250		269
6.20%, 1/15/38		150		201
3.63%, 10/1/42		115		113
				9,830
Water - 0.0%
American Water Capital Corp.,
6.09%, 10/15/17		150		179
6.59%, 10/15/37		125		162
4.30%, 12/1/42		75		78
				419
Total Corporate Bonds (Cost $407,643)				457,058
FOREIGN ISSUER BONDS - 7.6%
Advertising - 0.0%
WPP Finance UK,
5.88%, 6/15/14		200		212
Banks - 1.8%
Abbey National Treasury Services PLC,
4.00%, 4/27/16		145		153
Bank of Montreal,
1.75%, 4/29/14		75		76
2.50%, 1/11/17		500		524
1.40%, 9/11/17		250		251
2.55%, 11/6/22		300		297
Bank of Nova Scotia,
3.40%, 1/22/15		500		527
2.05%, 10/7/15		100		103
0.75%, 10/9/15		250		249
2.55%, 1/12/17		500		526
1.38%, 12/18/17		250		250
4.38%, 1/13/21		250		290
Barclays Bank PLC,
2.38%, 1/13/14		70		71
5.20%, 7/10/14		500		532
2.75%, 2/23/15		1,250		1,295
BNP Paribas S.A.,
2.38%, 9/14/17		625		634
5.00%, 1/15/21		1,000		1,123
Canadian Imperial Bank of Commerce,
0.90%, 10/1/15		315		316
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.,
4.50%, 1/11/21		1,000		1,124
3.88%, 2/8/22		750		807
3.95%, 11/9/22		250		256
Credit Suisse,
5.50%, 5/1/14		250		266
3.50%, 3/23/15		250		264
5.30%, 8/13/19		1,000		1,187

FIXED INCOME FUNDS    30    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.6% continued
Banks - 1.8% continued
Deutsche Bank A.G.,
3.45%, 3/30/15	$	500	$	527
3.25%, 1/11/16		150		159
6.00%, 9/1/17		1,225		1,469
Export-Import Bank of Korea,
8.13%, 1/21/14		1,000		1,073
4.00%, 1/11/17		200		217
4.00%, 1/29/21		1,000		1,075
HSBC Holdings PLC,
5.10%, 4/5/21		1,100		1,299
4.88%, 1/14/22		250		290
4.00%, 3/30/22		500		547
6.50%, 9/15/37		300		374
6.80%, 6/1/38		150		192
KFW,
1.38%, 1/13/14		550		556
3.50%, 3/10/14		250		259
1.50%, 4/4/14		650		659
4.13%, 10/15/14		500		533
1.00%, 1/12/15		3,000		3,034
0.63%, 4/24/15		3,000		3,021
2.00%, 6/1/16		500		523
4.88%, 1/17/17		200		232
1.25%, 2/15/17		500		510
4.38%, 3/15/18		375		437
4.00%, 1/27/20		1,500		1,745
2.75%, 9/8/20		500		541
2.63%, 1/25/22		900		953
2.00%, 10/4/22		250		251
13.85%, 6/29/37(5)		500		226
Korea Development Bank (The),
4.38%, 8/10/15		245		265
3.50%, 8/22/17		850		909
3.00%, 9/14/22		215		214
Korea Finance Corp.,
2.25%, 8/7/17		300		304
Landwirtschaftliche Rentenbank,
3.13%, 7/15/15		525		559
2.13%, 7/15/16		250		263
5.13%, 2/1/17		900		1,056
1.88%, 9/17/18		200		208
1.38%, 10/23/19		140		140
National Australia Bank Ltd.,
1.60%, 8/7/15		350		355
2.75%, 3/9/17		250		263
National Bank of Canada,
1.45%, 11/7/17		250		250
Oesterreichische Kontrollbank A.G.,
4.50%, 3/9/15		650		705
1.13%, 7/6/15		225		228
5.00%, 4/25/17		100		116
Royal Bank of Canada,
1.45%, 10/30/14		165		168
1.15%, 3/13/15		500		505
0.80%, 10/30/15		200		200
0.63%, 12/4/15		240		239
2.63%, 12/15/15		180		190
2.88%, 4/19/16		200		212
2.30%, 7/20/16		250		261
1.20%, 9/19/17		400		401
Royal Bank of Scotland (The) PLC,
4.38%, 3/16/16		175		189
Royal Bank of Scotland Group PLC,
2.55%, 9/18/15		1,200		1,228
6.40%, 10/21/19		200		236
Societe Generale S.A.,
2.75%, 10/12/17		250		254
Sumitomo Mitsui Banking Corp.,
1.80%, 7/18/17		250		255
Toronto-Dominion Bank (The),
2.50%, 7/14/16		150		158
2.38%, 10/19/16		565		594
UBS A.G.,
2.25%, 1/28/14		375		380
5.88%, 7/15/16		450		502
5.88%, 12/20/17		640		762
5.75%, 4/25/18		125		148
4.88%, 8/4/20		400		465
Westpac Banking Corp.,
3.00%, 8/4/15		250		264
3.00%, 12/9/15		200		212
2.00%, 8/14/17		300		309
4.88%, 11/19/19		1,000		1,167
				46,957
Beverages - 0.1%
Diageo Capital PLC,
5.50%, 9/30/16		150		175

NORTHERN FUNDS QUARTERLY REPORT    31    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.6% continued
Beverages - 0.1% continued
1.50%, 5/11/17	$	235	$	238
5.75%, 10/23/17		850		1,024
				1,437
Chemicals - 0.1%
Agrium, Inc.,
3.15%, 10/1/22		200		199
6.13%, 1/15/41		100		120
Potash Corp. of Saskatchewan, Inc.,
3.75%, 9/30/15		300		322
6.50%, 5/15/19		135		169
5.88%, 12/1/36		50		62
5.63%, 12/1/40		250		304
				1,176
Diversified Financial Services - 0.0%
Nomura Holdings, Inc.,
5.00%, 3/4/15		235		249
Electric - 0.0%
Hydro Quebec,
9.40%, 2/1/21		200		295
Hydro-Quebec,
2.00%, 6/30/16		75		78
1.38%, 6/19/17		250		254
Scottish Power Ltd.,
5.38%, 3/15/15		100		107
TransAlta Corp.,
4.75%, 1/15/15		370		392
				1,126
Electronics - 0.0%
Koninklijke Philips Electronics N.V.,
3.75%, 3/15/22		250		270
6.88%, 3/11/38		225		305
5.00%, 3/15/42		100		114
				689
Food - 0.0%
Delhaize Group S.A.,
4.13%, 4/10/19		35		36
5.70%, 10/1/40		1,000		937
				973
Healthcare - Products - 0.1%
Covidien International Finance S.A.,
1.35%, 5/29/15		500		507
6.00%, 10/15/17		800		969
6.55%, 10/15/37		25		35
				1,511
Holding Companies - Diversified - 0.0%
EnCana Holdings Finance Corp.,
5.80%, 5/1/14		100		106
Insurance - 0.0%
Allied World Assurance Co. Ltd.,
7.50%, 8/1/16		100		118
AXA S.A.,
8.60%, 12/15/30		75		94
Willis Group Holdings PLC,
5.75%, 3/15/21		100		114
XL Group PLC,
6.25%, 5/15/27		50		59
XLIT Ltd.,
5.75%, 10/1/21		200		238
				623
Iron/Steel - 0.1%
Vale Overseas Ltd.,
5.63%, 9/15/19		830		944
4.63%, 9/15/20		1,000		1,081
4.38%, 1/11/22		155		165
6.88%, 11/21/36		400		496
				2,686
Media - 0.0%
Grupo Televisa S.A.B.,
6.63%, 1/15/40		570		727
Thomson Reuters Corp.,
5.50%, 8/15/35		150		174
				901
Mining - 0.3%
AngloGold Ashanti Holdings PLC,
5.13%, 8/1/22		115		117
Barrick Gold Corp.,
2.90%, 5/30/16		200		210
6.95%, 4/1/19		300		373
3.85%, 4/1/22		1,175		1,244
BHP Billiton Finance USA Ltd.,
5.50%, 4/1/14		300		319
5.25%, 12/15/15		250		282
1.88%, 11/21/16		100		103

FIXED INCOME FUNDS    32    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.6% continued
Mining - 0.3% continued
1.63%, 2/24/17	$	600	$	614
5.40%, 3/29/17		100		117
6.50%, 4/1/19		200		255
3.25%, 11/21/21		250		269
4.13%, 2/24/42		600		637
Rio Tinto Alcan, Inc.,
5.20%, 1/15/14		100		104
6.13%, 12/15/33		100		126
Rio Tinto Finance USA Ltd.,
2.50%, 5/20/16		155		162
2.25%, 9/20/16		150		156
6.50%, 7/15/18		675		842
9.00%, 5/1/19		575		790
3.75%, 9/20/21		500		535
Rio Tinto Finance USA PLC,
2.00%, 3/22/17		150		153
1.63%, 8/21/17		85		86
4.75%, 3/22/42		150		166
4.13%, 8/21/42		300		305
Teck Resources Ltd.,
3.85%, 8/15/17		35		37
3.00%, 3/1/19		85		88
6.00%, 8/15/40		45		51
6.25%, 7/15/41		350		412
5.20%, 3/1/42		125		128
5.40%, 2/1/43		130		137
				8,818
Miscellaneous Manufacturing - 0.0%
Pentair Finance S.A.,
1.35%, 12/1/15(1) (2)		155		155
Tyco Electronics Group S.A.,
6.55%, 10/1/17		50		60
3.50%, 2/3/22		125		128
7.13%, 10/1/37		50		66
Tyco International Finance S.A.,
3.38%, 10/15/15		11		12
				421
Multi-National - 1.3%
African Development Bank,
2.50%, 3/15/16		500		531
1.25%, 9/2/16		40		41
1.13%, 3/15/17		500		509
Asian Development Bank,
2.75%, 5/21/14		500		517
2.50%, 3/15/16		500		532
5.50%, 6/27/16		600		702
1.13%, 3/15/17		355		361
5.59%, 7/16/18		50		61
1.75%, 3/21/19		1,500		1,552
Corp. Andina de Fomento,
4.38%, 6/15/22		113		122
Council Of Europe Development Bank,
1.50%, 1/15/15		150		153
2.63%, 2/16/16		350		370
1.25%, 9/22/16		150		152
1.50%, 6/19/17		200		204
European Bank for Reconstruction & Development,
1.63%, 9/3/15		500		514
2.50%, 3/15/16		300		317
1.38%, 10/20/16		150		153
1.00%, 2/16/17		500		506
0.75%, 9/1/17		300		300
European Investment Bank,
2.38%, 3/14/14		2,500		2,559
4.63%, 5/15/14		750		793
1.13%, 8/15/14		1,700		1,719
2.88%, 1/15/15		850		891
2.75%, 3/23/15		500		524
1.13%, 4/15/15		500		509
1.00%, 7/15/15		400		405
1.63%, 9/1/15		500		514
1.38%, 10/20/15		500		511
2.25%, 3/15/16		400		420
4.88%, 1/17/17		800		929
1.75%, 3/15/17		1,000		1,038
5.13%, 5/30/17		350		414
1.63%, 6/15/17		250		258
1.00%, 12/15/17		1,000		1,000
2.88%, 9/15/20		500		541
4.88%, 2/15/36		200		237
Inter-American Development Bank,
0.50%, 8/17/15		500		502
1.13%, 3/15/17		1,000		1,017
1.75%, 8/24/18		250		260
4.25%, 9/10/18		400		472
1.13%, 9/12/19		200		199

NORTHERN FUNDS QUARTERLY REPORT    33    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.6% continued
Multi-National - 1.3% continued
3.88%, 9/17/19	$	600	$	701
3.88%, 2/14/20		500		587
3.88%, 10/28/41		200		220
International Bank for Reconstruction & Development,
1.13%, 8/25/14		1,500		1,521
2.38%, 5/26/15		375		393
2.13%, 3/15/16		1,000		1,052
5.00%, 4/1/16		450		515
1.00%, 9/15/16		500		508
0.88%, 4/17/17		1,000		1,012
9.25%, 7/15/17		100		136
4.75%, 2/15/35		25		32
International Finance Corp.,
3.00%, 4/22/14		500		518
1.13%, 11/23/16		500		509
1.00%, 4/24/17		890		899
Nordic Investment Bank,
2.50%, 7/15/15		900		947
5.00%, 2/1/17		100		117
				32,976
Oil & Gas - 1.1%
Alberta Energy Co. Ltd.,
7.38%, 11/1/31		75		97
Anadarko Finance Co.,
7.50%, 5/1/31		75		99
BP Capital Markets PLC,
3.88%, 3/10/15		100		107
3.13%, 10/1/15		100		106
1.85%, 5/5/17		250		256
1.38%, 11/6/17		150		150
4.75%, 3/10/19		1,200		1,391
4.50%, 10/1/20		600		691
4.74%, 3/11/21		450		527
Burlington Resources Finance Co.,
7.20%, 8/15/31		200		281
Canadian Natural Resources Ltd.,
1.45%, 11/14/14		125		127
5.70%, 5/15/17		225		265
5.90%, 2/1/18		250		301
6.25%, 3/15/38		150		193
6.75%, 2/1/39		50		67
Cenovus Energy, Inc.,
4.50%, 9/15/14		50		53
3.00%, 8/15/22		55		56
6.75%, 11/15/39		65		88
4.45%, 9/15/42		50		52
ConocoPhillips Canada Funding Co. I,
5.95%, 10/15/36		250		321
Encana Corp.,
5.90%, 12/1/17		725		864
6.50%, 5/15/19		75		93
3.90%, 11/15/21		250		272
6.50%, 8/15/34		100		123
6.63%, 8/15/37		75		96
Husky Energy, Inc.,
6.20%, 9/15/17		600		719
3.95%, 4/15/22		100		107
Nexen, Inc.,
6.20%, 7/30/19		60		74
7.88%, 3/15/32		75		108
7.50%, 7/30/39		330		478
Noble Holding International Ltd.,
3.45%, 8/1/15		200		211
6.05%, 3/1/41		70		82
5.25%, 3/15/42		100		107
Petrobras International Finance Co.,
3.50%, 2/6/17		1,050		1,101
5.88%, 3/1/18		400		458
5.75%, 1/20/20		665		757
5.38%, 1/27/21		890		1,002
6.88%, 1/20/40		395		502
6.75%, 1/27/41		140		177
Petro-Canada,
6.05%, 5/15/18		50		61
5.95%, 5/15/35		100		123
6.80%, 5/15/38		50		68
Petroleos Mexicanos,
6.00%, 3/5/20		550		657
5.50%, 1/21/21		1,075		1,256
4.88%, 1/24/22		2,000		2,257
Shell International Finance B.V.,
3.10%, 6/28/15		400		424
0.63%, 12/4/15		200		201
1.13%, 8/21/17		65		65
4.30%, 9/22/19		1,450		1,680
6.38%, 12/15/38		600		843
5.50%, 3/25/40		60		77

FIXED INCOME FUNDS    34    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.6% continued
Oil & Gas - 1.1% continued
Statoil ASA,
1.80%, 11/23/16	$	100	$	103
3.13%, 8/17/17		250		272
5.25%, 4/15/19		850		1,019
3.15%, 1/23/22		125		132
7.75%, 6/15/23		100		140
7.15%, 1/15/29		250		356
4.25%, 11/23/41		200		215
Suncor Energy, Inc.,
6.10%, 6/1/18		275		335
7.15%, 2/1/32		200		268
5.95%, 12/1/34		50		61
6.50%, 6/15/38		400		534
Talisman Energy, Inc.,
7.75%, 6/1/19		175		226
7.25%, 10/15/27		400		507
Total Capital Canada Ltd.,
1.63%, 1/28/14		400		405
Total Capital International S.A.,
0.75%, 1/25/16		100		100
1.50%, 2/17/17		500		504
1.55%, 6/28/17		125		127
Total Capital S.A.,
3.00%, 6/24/15		250		264
2.30%, 3/15/16		500		519
Transocean, Inc.,
4.95%, 11/15/15		500		547
5.05%, 12/15/16		165		184
6.00%, 3/15/18		325		377
6.50%, 11/15/20		200		242
6.80%, 3/15/38		200		245
				27,953
Oil & Gas Services - 0.1%
Weatherford International Ltd.,
5.50%, 2/15/16		200		220
6.00%, 3/15/18		725		828
9.63%, 3/1/19		100		131
6.50%, 8/1/36		125		139
5.95%, 4/15/42		150		163
				1,481
Pharmaceuticals - 0.2%
AstraZeneca PLC,
5.90%, 9/15/17		325		395
1.95%, 9/18/19		475		481
6.45%, 9/15/37		300		406
4.00%, 9/18/42		250		253
GlaxoSmithKline Capital PLC,
1.50%, 5/8/17		250		254
Novartis Securities Investment Ltd.,
5.13%, 2/10/19		850		1,016
Sanofi,
1.20%, 9/30/14		100		101
2.63%, 3/29/16		250		263
4.00%, 3/29/21		500		570
Teva Pharmaceutical Finance Co. B.V.,
2.40%, 11/10/16		200		208
3.65%, 11/10/21		250		268
2.95%, 12/18/22		350		354
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		268
				5,200
Pipelines - 0.1%
Enbridge, Inc.,
5.80%, 6/15/14		75		81
4.90%, 3/1/15		250		270
TransCanada PipeLines Ltd.,
0.88%, 3/2/15		250		251
6.50%, 8/15/18		465		586
2.50%, 8/1/22		165		165
5.85%, 3/15/36		275		347
6.20%, 10/15/37		50		66
7.63%, 1/15/39		795		1,196
6.10%, 6/1/40		150		200
6.35%, 5/15/67		100		107
				3,269
Regional - 0.5%
Japan Finance Organization for Municipalities,
4.00%, 1/13/21		500		577
Province of British Columbia,
2.85%, 6/15/15		200		212
2.10%, 5/18/16		185		194
2.65%, 9/22/21		150		158

NORTHERN FUNDS QUARTERLY REPORT    35    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.6% continued
Regional - 0.5% continued
2.00%, 10/23/22	$	300	$	296
7.25%, 9/1/36		175		281
Province of Manitoba Canada,
2.63%, 7/15/15		120		127
4.90%, 12/6/16		200		232
1.30%, 4/3/17		165		169
1.75%, 5/30/19		100		102
9.25%, 4/1/20		150		217
2.10%, 9/6/22		100		99
Province of Nova Scotia Canada,
8.25%, 7/30/22		350		507
Province of Ontario Canada,
1.38%, 1/27/14		500		505
2.95%, 2/5/15		400		420
2.70%, 6/16/15		450		474
4.75%, 1/19/16		200		224
5.45%, 4/27/16		350		404
2.30%, 5/10/16		1,000		1,052
4.95%, 11/28/16		650		754
1.10%, 10/25/17		250		250
1.65%, 9/27/19		250		250
4.00%, 10/7/19		835		959
4.40%, 4/14/20		500		589
2.45%, 6/29/22		500		507
Province of Quebec Canada,
5.13%, 11/14/16		250		291
4.63%, 5/14/18		350		411
2.75%, 8/25/21		100		104
7.50%, 7/15/23		300		425
7.13%, 2/9/24		100		139
7.50%, 9/15/29		375		570
Province of Saskatchewan Canada,
8.50%, 7/15/22		200		301
				11,800
Sovereign - 1.3%
Brazilian Government International Bond,
6.00%, 1/17/17		1,250		1,475
8.00%, 1/15/18		244		284
8.88%, 10/14/19		1,075		1,555
4.88%, 1/22/21		1,000		1,205
8.88%, 4/15/24		600		966
10.13%, 5/15/27		500		915
7.13%, 1/20/37		250		382
11.00%, 8/17/40		835		1,045
5.63%, 1/7/41		635		832
Canada Government International Bond,
2.38%, 9/10/14		240		249
0.88%, 2/14/17		545		549
Chile Government International Bond,
3.25%, 9/14/21		400		434
3.63%, 10/30/42		200		198
Colombia Government International Bond,
7.38%, 1/27/17		500		617
7.38%, 3/18/19		250		329
4.38%, 7/12/21		1,000		1,152
7.38%, 9/18/37		350		544
6.13%, 1/18/41		250		343
Export Development Canada,
0.50%, 9/15/15		150		150
Israel Government International Bond,
5.50%, 11/9/16		225		259
5.13%, 3/26/19		250		292
4.00%, 6/30/22		250		272
Italy Government International Bond,
5.25%, 9/20/16		1,000		1,063
5.38%, 6/12/17		1,675		1,793
5.38%, 6/15/33		175		176
Japan Bank for International Cooperation,
2.88%, 2/2/15		500		525
1.88%, 9/24/15		250		259
2.50%, 5/18/16		300		318
1.13%, 7/19/17		750		755
Mexico Government International Bond,
6.63%, 3/3/15		500		557
5.63%, 1/15/17		770		893
5.95%, 3/19/19		500		615
5.13%, 1/15/20		1,360		1,625
7.50%, 4/8/33		100		153
6.75%, 9/27/34		750		1,080
6.05%, 1/11/40		820		1,100
4.75%, 3/8/44		500		565
Panama Government International Bond,
7.25%, 3/15/15		1,250		1,402
6.70%, 1/26/36		550		781
Peruvian Government International Bond,
8.38%, 5/3/16		350		431

FIXED INCOME FUNDS    36    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 7.6% continued
Sovereign - 1.3% continued
7.35%, 7/21/25	$	250	$	362
6.55%, 3/14/37		500		722
5.63%, 11/18/50		350		454
Poland Government International Bond,
3.88%, 7/16/15		110		118
5.00%, 10/19/15		475		528
6.38%, 7/15/19		400		499
5.13%, 4/21/21		150		178
3.00%, 3/17/23		1,000		998
Republic of Korea,
4.88%, 9/22/14		400		427
5.13%, 12/7/16		125		144
7.13%, 4/16/19		150		195
South Africa Government International Bond,
6.88%, 5/27/19		275		345
Svensk Exportkredit AB,
5.13%, 3/1/17		500		581
1.75%, 5/30/17		250		257
Uruguay Government International Bond,
7.63%, 3/21/36		250		386
4.13%, 11/20/45		400		399
				34,731
Telecommunications - 0.5%
America Movil S.A.B. de C.V.,
5.75%, 1/15/15		400		439
2.38%, 9/8/16		700		728
3.13%, 7/16/22		600		610
6.13%, 11/15/37		200		260
6.13%, 3/30/40		300		395
British Telecommunications PLC,
2.00%, 6/22/15		200		206
5.95%, 1/15/18		575		687
9.63%, 12/15/30		100		159
Deutsche Telekom International Finance B.V.,
5.75%, 3/23/16		525		598
8.75%, 6/15/30		400		599
France Telecom S.A.,
2.13%, 9/16/15		125		129
5.38%, 7/8/19		600		703
8.50%, 3/1/31		425		636
5.38%, 1/13/42		250		289
Nippon Telegraph & Telephone Corp.,
1.40%, 7/18/17		150		152
Rogers Communications, Inc.,
6.80%, 8/15/18		700		885
Telecom Italia Capital S.A.,
5.25%, 10/1/15		675		718
6.38%, 11/15/33		50		50
7.72%, 6/4/38		450		487
Telefonaktiebolaget LM Ericsson,
4.13%, 5/15/22		150		156
Telefonica Emisiones S.A.U.,
4.95%, 1/15/15		335		351
6.42%, 6/20/16		900		996
5.46%, 2/16/21		170		181
7.05%, 6/20/36		200		216
Telefonos de Mexico S.A.B. de C.V.,
5.50%, 1/27/15		125		136
Vodafone Group PLC,
5.00%, 9/15/15		450		499
5.63%, 2/27/17		325		381
1.63%, 3/20/17		250		254
1.25%, 9/26/17		300		299
6.15%, 2/27/37		375		496
				12,695
Transportation - 0.0%
Canadian National Railway Co.,
5.55%, 3/1/19		500		604
2.85%, 12/15/21		85		89
6.90%, 7/15/28		25		34
6.20%, 6/1/36		25		34
6.38%, 11/15/37		50		71
3.50%, 11/15/42		150		145
Canadian Pacific Railway Co.,
6.50%, 5/15/18		50		61
5.95%, 5/15/37		50		60
				1,098
Total Foreign Issuer Bonds (Cost $183,173)				199,088
U.S. GOVERNMENT AGENCIES - 34.1%(6)
Fannie Mae - 15.6%
2.75%, 3/13/14		2,000		2,061
0.88%, 8/28/14		2,000		2,020
3.00%, 9/16/14		1,000		1,047
4.63%, 10/15/14		2,750		2,963
0.75%, 12/19/14		3,000		3,027

NORTHERN FUNDS QUARTERLY REPORT    37    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Fannie Mae - 15.6% continued
0.38%, 3/16/15	$	2,000	$	2,003
0.50%, 5/27/15		2,250		2,258
0.50%, 7/2/15		3,000		3,010
0.50%, 9/28/15		4,000		4,013
1.63%, 10/26/15		1,000		1,034
0.38%, 12/21/15		2,000		1,997
0.63%, 2/22/16		1,000		1,001
2.25%, 3/15/16		2,500		2,641
2.38%, 4/11/16		3,000		3,188
1.25%, 9/28/16		3,700		3,796
1.38%, 11/15/16		2,000		2,060
4.88%, 12/15/16		4,200		4,894
1.25%, 1/30/17		2,000		2,050
5.00%, 5/11/17		1,000		1,183
5.38%, 6/12/17		1,000		1,202
1.13%, 9/12/17		1,000		1,004
7.13%, 1/15/30		1,500		2,357
6.63%, 11/15/30		200		305
5.63%, 7/15/37		1,000		1,439
Pool #255376,
6.00%, 8/1/19		89		97
Pool #255695,
2.86%, 3/1/35		30		32
Pool #256675,
5.00%, 4/1/27		115		125
Pool #256677,
6.00%, 4/1/27		111		122
Pool #256792,
6.50%, 6/1/22		124		139
Pool #256925,
6.00%, 10/1/37		205		224
Pool #256959,
6.00%, 11/1/37		946		1,036
Pool #256985,
7.00%, 11/1/37		234		267
Pool #257042,
6.50%, 1/1/38		1,460		1,640
Pool #257057,
5.00%, 1/1/28		391		423
Pool #257106,
4.50%, 1/1/28		62		67
Pool #257237,
4.50%, 6/1/28		194		212
Pool #257239,
5.50%, 6/1/28		242		263
Pool #257243,
7.00%, 6/1/38		682		813
Pool #257367,
5.50%, 9/1/28		445		484
Pool #357630,
5.00%, 10/1/19		91		98
Pool #707791,
5.00%, 6/1/33		698		760
Pool #709239,
5.00%, 7/1/18		538		584
Pool #720049,
5.50%, 7/1/33		153		169
Pool #722424,
2.39%, 7/1/33		66		70
Pool #725185,
5.00%, 2/1/19		126		137
Pool #725425,
5.50%, 4/1/34		237		261
Pool #730811,
4.50%, 8/1/33		402		436
Pool #735222,
5.00%, 2/1/35		135		147
Pool #735358,
5.50%, 2/1/35		617		676
Pool #735502,
6.00%, 4/1/35		77		86
Pool #737853,
5.00%, 9/1/33		1,095		1,193
Pool #745418,
5.50%, 4/1/36		251		275
Pool #745754,
5.00%, 9/1/34		1,271		1,385
Pool #745826,
6.00%, 7/1/36		1,123		1,230
Pool #746272,
4.00%, 10/1/18		419		450
Pool #747383,
5.50%, 10/1/33		426		466
Pool #753678,
2.54%, 12/1/33		221		235
Pool #755632,
5.00%, 4/1/34		615		669

FIXED INCOME FUNDS    38    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Fannie Mae - 15.6% continued
Pool #766083,
2.76%, 2/1/34	$	14	$	15
Pool #772730,
5.00%, 4/1/34		558		608
Pool #773287,
2.73%, 3/1/35		252		269
Pool #790406,
6.00%, 9/1/34		299		334
Pool #793666,
5.50%, 9/1/34		322		357
Pool #796250,
5.50%, 11/1/34		106		116
Pool #800471,
5.50%, 10/1/34		1,146		1,254
Pool #807701,
4.50%, 12/1/19		79		85
Pool #811944,
4.50%, 1/1/20		102		110
Pool #815639,
2.35%, 6/1/35		45		48
Pool #817795,
6.00%, 8/1/36		235		258
Pool #820998,
2.88%, 4/1/35		130		131
Pool #821912,
2.34%, 6/1/35		461		485
Pool #822455,
2.94%, 4/1/35		103		109
Pool #826057,
5.00%, 7/1/35		326		367
Pool #826368,
2.75%, 7/1/35		179		190
Pool #826585,
5.00%, 8/1/35		760		825
Pool #828523,
5.00%, 7/1/35		232		252
Pool #831676,
6.50%, 8/1/36		103		116
Pool #832628,
5.50%, 9/1/20		111		121
Pool #833067,
5.50%, 9/1/35		1,284		1,404
Pool #833163,
5.00%, 9/1/35		603		655
Pool #835517,
4.99%, 8/1/35		79		85
Pool #840577,
5.00%, 10/1/20		85		93
Pool #844909,
4.50%, 10/1/20		48		52
Pool #845425,
6.00%, 2/1/36		1,048		1,148
Pool #846600,
2.78%, 1/1/36		473		509
Pool #847921,
5.50%, 11/1/20		340		368
Pool #850614,
5.56%, 1/1/36		85		90
Pool #863759,
4.00%, 12/1/20		64		69
Pool #864435,
4.50%, 12/1/20		245		264
Pool #866109,
2.69%, 12/1/35		39		41
Pool #868435,
6.00%, 4/1/36		684		764
Pool #869217,
2.72%, 2/1/36		171		182
Pool #869710,
6.00%, 4/1/36		404		442
Pool #871135,
6.00%, 1/1/37		208		232
Pool #880505,
6.00%, 8/1/21		48		53
Pool #881818,
6.50%, 8/1/36		789		887
Pool #882055,
2.17%, 6/1/36		141		146
Pool #884776,
2.72%, 10/1/36		225		237
Pool #885769,
6.00%, 6/1/36		92		101
Pool #885866,
6.00%, 6/1/36		269		301
Pool #887019,
2.73%, 6/1/36		203		215
Pool #887111,
5.50%, 5/1/20		76		82

NORTHERN FUNDS QUARTERLY REPORT    39    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Fannie Mae - 15.6% continued
Pool #888100,
5.50%, 9/1/36	$	849	$	928
Pool #888152,
5.00%, 5/1/21		210		228
Pool #888205,
6.50%, 2/1/37		231		259
Pool #888318,
2.73%, 2/1/37		110		117
Pool #888447,
4.00%, 5/1/21		126		135
Pool #889224,
5.50%, 1/1/37		1,188		1,298
Pool #889390,
6.00%, 3/1/23		174		191
Pool #889401,
6.00%, 3/1/38		702		769
Pool #889415,
6.00%, 5/1/37		2,479		2,762
Pool #889579,
6.00%, 5/1/38		1,622		1,777
Pool #889630,
6.50%, 3/1/38		191		215
Pool #889886,
7.00%, 12/1/37		246		282
Pool #889970,
5.00%, 12/1/36		859		933
Pool #890234,
6.00%, 10/1/38		599		670
Pool #890329,
4.00%, 4/1/26		7,226		7,916
Pool #890339,
5.00%, 9/1/20		963		1,047
Pool #892536,
6.50%, 9/1/36		115		130
Pool #892968,
6.50%, 8/1/21		29		32
Pool #893363,
5.00%, 6/1/36		202		219
Pool #893366,
5.00%, 4/1/35		304		331
Pool #894453,
5.97%, 9/1/36		267		288
Pool #898089,
5.50%, 7/1/26		302		333
Pool #898417,
6.00%, 10/1/36		179		196
Pool #899079,
5.00%, 3/1/37		333		360
Pool #902188,
2.81%, 11/1/36		18		19
Pool #902414,
5.50%, 11/1/36		644		701
Pool #905090,
5.50%, 10/1/21		135		146
Pool #905759,
2.64%, 12/1/36		55		59
Pool #906090,
5.50%, 1/1/37		819		898
Pool #906237,
2.74%, 1/1/37		107		114
Pool #907818,
2.88%, 1/1/37		27		29
Pool #910147,
5.00%, 3/1/22		251		272
Pool #910338,
2.83%, 3/1/37		46		49
Pool #912414,
4.50%, 1/1/22		231		248
Pool #914522,
2.86%, 3/1/37		18		19
Pool #915499,
5.00%, 3/1/37		566		638
Pool #915870,
7.00%, 4/1/37		82		98
Pool #918515,
5.00%, 6/1/37		467		506
Pool #919461,
5.83%, 4/1/37		41		44
Pool #920457,
3.27%, 8/1/36		15		16
Pool #920988,
2.25%, 11/1/36		13		13
Pool #923023,
2.38%, 1/1/37		378		393
Pool #923123,
5.00%, 4/1/36		91		99
Pool #923166,
7.50%, 1/1/37		70		86

FIXED INCOME FUNDS    40    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Fannie Mae - 15.6% continued
Pool #928261,
4.50%, 3/1/36	$	217	$	235
Pool #928584,
6.50%, 8/1/37		928		1,040
Pool #928909,
6.00%, 12/1/37		9		10
Pool #928915,
6.00%, 11/1/37		88		97
Pool #930606,
4.00%, 2/1/39		2,156		2,312
Pool #931195,
4.50%, 5/1/24		694		747
Pool #931665,
4.50%, 7/1/24		2,015		2,168
Pool #932023,
5.00%, 1/1/38		543		589
Pool #932741,
4.50%, 4/1/40		1,194		1,329
Pool #934466,
5.50%, 9/1/23		479		518
Pool #940623,
5.50%, 8/1/37		249		271
Pool #943388,
6.00%, 6/1/37		906		992
Pool #943617,
6.00%, 8/1/37		719		801
Pool #945876,
5.50%, 8/1/37		126		137
Pool #946527,
7.00%, 9/1/37		174		208
Pool #947216,
6.00%, 10/1/37		273		305
Pool #949391,
5.50%, 8/1/22		37		40
Pool #953018,
6.50%, 10/1/37		583		655
Pool #953910,
6.00%, 11/1/37		422		462
Pool #955771,
6.50%, 10/1/37		542		608
Pool #959604,
6.50%, 11/1/37		88		99
Pool #959880,
5.50%, 11/1/37		235		255
Pool #962687,
5.00%, 4/1/38		835		905
Pool #963735,
4.50%, 6/1/23		297		320
Pool #965389,
6.00%, 10/1/23		388		428
Pool #966660,
6.00%, 12/1/37		18		20
Pool #968037,
6.00%, 1/1/38		672		736
Pool #969632,
6.50%, 1/1/38		211		237
Pool #970013,
4.50%, 6/1/38		481		520
Pool #971734,
4.50%, 4/1/37		236		255
Pool #972452,
5.50%, 3/1/38		923		1,003
Pool #975365,
5.00%, 6/1/23		173		187
Pool #976699,
5.00%, 4/1/28		107		116
Pool #976963,
5.50%, 2/1/38		6,831		7,464
Pool #981704,
5.00%, 6/1/23		690		747
Pool #981823,
5.06%, 6/1/38		123		132
Pool #981854,
5.50%, 7/1/38		806		876
Pool #984075,
4.50%, 6/1/23		228		245
Pool #986760,
5.50%, 7/1/38		2,104		2,323
Pool #987114,
5.50%, 9/1/23		92		100
Pool #987115,
5.50%, 9/1/23		223		241
Pool #992472,
6.00%, 10/1/38		227		248
Pool #992491,
4.50%, 10/1/23		136		146
Pool #993055,
5.50%, 12/1/38		317		345

NORTHERN FUNDS QUARTERLY REPORT    41    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Fannie Mae - 15.6% continued
Pool #995018,
5.50%, 6/1/38	$	525	$	571
Pool #995203,
5.00%, 7/1/35		2,276		2,484
Pool #995266,
5.00%, 12/1/23		1,815		1,965
Pool #995297,
5.00%, 2/1/38		5,396		5,859
Pool #995737,
5.00%, 2/1/38		4,456		4,838
Pool #995879,
6.00%, 4/1/39		756		828
Pool #AA0451,
6.00%, 12/1/23		19		20
Pool #AA0649,
5.00%, 12/1/38		1,437		1,613
Pool #AA2939,
4.50%, 4/1/39		1,644		1,850
Pool #AA4482,
4.00%, 4/1/39		1,806		1,980
Pool #AA4562,
4.50%, 9/1/39		1,289		1,450
Pool #AA8978,
4.50%, 7/1/39		356		396
Pool #AA9357,
4.50%, 8/1/39		2,130		2,302
Pool #AB1048,
4.50%, 5/1/40		2,270		2,496
Pool #AB2067,
3.50%, 1/1/41		2,080		2,244
Pool #AB2092,
4.00%, 1/1/41		887		966
Pool #AB2272,
4.50%, 2/1/41		1,554		1,748
Pool #AB2693,
4.50%, 4/1/41		978		1,076
Pool #AB2768,
4.50%, 4/1/41		1,463		1,624
Pool #AB3246,
5.00%, 7/1/41		1,016		1,121
Pool #AB4057,
4.00%, 12/1/41		4,318		4,687
Pool #AB4293,
3.50%, 1/1/42		2,586		2,759
Pool #AB5049,
4.00%, 4/1/42		5,421		5,883
Pool #AB6016,
3.50%, 8/1/42		1,925		2,058
Pool #AB6293,
3.50%, 9/1/27		4,200		4,488
Pool #AC2947,
5.50%, 9/1/39		2,266		2,479
Pool #AC2969,
5.00%, 9/1/39		6,021		6,685
Pool #AC3263,
4.50%, 9/1/29		689		757
Pool #AC3312,
4.50%, 10/1/39		3,085		3,333
Pool #AC4861,
4.50%, 11/1/24		1,109		1,211
Pool #AC5040,
4.00%, 10/1/24		874		937
Pool #AC6118,
4.50%, 11/1/39		923		998
Pool #AC6742,
4.50%, 1/1/40		2,880		3,207
Pool #AC9581,
5.50%, 1/1/40		3,321		3,625
Pool #AD0585,
4.50%, 12/1/39		1,349		1,524
Pool #AD0639,
6.00%, 12/1/38		835		913
Pool #AD0969,
5.50%, 8/1/37		2,088		2,284
Pool #AD5241,
4.50%, 7/1/40		1,505		1,631
Pool #AD5525,
5.00%, 6/1/40		1,414		1,564
Pool #AD5556,
4.00%, 6/1/25		773		828
Pool #AD7859,
5.00%, 6/1/40		1,001		1,115
Pool #AE0289,
3.61%, 5/1/40		578		612
Pool #AE0891,
3.69%, 1/1/41		683		721
Pool #AE0949,
4.00%, 2/1/41		3,174		3,406

FIXED INCOME FUNDS    42    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Fannie Mae - 15.6% continued
Pool #AE0971,
4.00%, 5/1/25	$	539	$	578
Pool #AE0981,
3.50%, 3/1/41		2,248		2,399
Pool #AE1807,
4.00%, 10/1/40		4,651		4,991
Pool #AE3873,
4.50%, 10/1/40		671		727
Pool #AE5436,
4.50%, 10/1/40		893		980
Pool #AE5767,
3.42%, 5/1/41		374		395
Pool #AH0525,
4.00%, 12/1/40		3,207		3,441
Pool #AH1295,
3.50%, 1/1/26		1,184		1,274
Pool #AH2488,
3.24%, 2/1/41		471		497
Pool #AH3226,
5.00%, 2/1/41		479		523
Pool #AH4158,
4.00%, 1/1/41		671		720
Pool #AH5573,
4.00%, 2/1/41		2,147		2,359
Pool #AH5614,
3.50%, 2/1/26		1,203		1,296
Pool #AH8854,
4.50%, 4/1/41		848		931
Pool #AI1247,
4.00%, 4/1/26		786		842
Pool #AI3470,
4.50%, 6/1/41		1,497		1,644
Pool #AI4361,
3.03%, 9/1/41		401		421
Pool #AI4380,
2.96%, 11/1/41		348		365
Pool #AI5539,
3.48%, 6/1/41		334		353
Pool #AI5603,
4.50%, 7/1/41		737		800
Pool #AI9137,
2.50%, 11/1/27		2,974		3,112
Pool #AI9555,
4.00%, 9/1/41		2,032		2,181
Pool #AI9828,
2.88%, 11/1/41		395		415
Pool #AJ2001,
3.17%, 10/1/41		332		350
Pool #AJ4093,
3.50%, 10/1/26		372		395
Pool #AJ4408,
4.50%, 10/1/41		675		733
Pool #AJ6086,
3.00%, 12/1/26		803		848
Pool #AJ9152,
3.50%, 12/1/26		4,074		4,325
Pool #AJ9218,
4.00%, 2/1/42		2,091		2,244
Pool #AJ9326,
3.50%, 1/1/42		2,416		2,624
Pool #AJ9355,
3.00%, 1/1/27		1,907		2,014
Pool #AK4524,
4.50%, 3/1/42		6,135		6,737
Pool #AK4945,
3.50%, 2/1/42		1,497		1,597
Pool #AK7766,
2.50%, 3/1/27		2,119		2,218
Pool #AK9444,
4.00%, 3/1/42		921		994
Pool #AL0354,
5.21%, 7/1/36		676		728
Pool #AL0442,
5.50%, 6/1/40		590		645
Pool #AL0659,
4.50%, 7/1/41		3,708		4,025
Pool #AL0766,
4.00%, 9/1/41		3,108		3,416
Pool #AL1449,
4.00%, 1/1/42		3,162		3,433
Pool #AL1849,
6.00%, 2/1/39		2,163		2,389
Pool #AL1939,
3.50%, 6/1/42		2,918		3,148
Pool #AL2243,
4.00%, 3/1/42		3,990		4,282
Pool #AL2303,
4.50%, 6/1/26		2,036		2,192

NORTHERN FUNDS QUARTERLY REPORT    43    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Fannie Mae - 15.6% continued
Pool #AL2326,
4.50%, 4/1/42	$	7,306	$	8,022
Pool #AL2397,
2.72%, 8/1/42		478		505
Pool #AO0752,
3.00%, 4/1/42		1,386		1,453
Pool #AO0800,
3.00%, 4/1/27		1,683		1,779
Pool #AO2973,
3.50%, 5/1/42		3,084		3,358
Pool #AO4107,
4.50%, 6/1/42		3,475		3,816
Pool #AO4136,
3.50%, 6/1/42		2,449		2,618
Pool #AO8629,
3.50%, 7/1/42		966		1,033
Pool #AP6273,
3.00%, 10/1/42		1,395		1,463
Pool #MA0361,
4.00%, 3/1/30		857		923
Pool #MA0667,
4.00%, 3/1/31		1,480		1,593
Pool #MA0706,
4.50%, 4/1/31		2,229		2,423
Pool #MA0711,
3.50%, 4/1/31		778		832
Pool #MA0720,
5.00%, 4/1/31		791		856
Pool #MA0804,
4.00%, 7/1/31		1,058		1,139
Pool #MA0976,
3.50%, 2/1/32		1,697		1,815
Pool #MA1107,
3.50%, 7/1/32		1,906		2,038
Pool #MA1141,
3.00%, 8/1/32		485		510
Pool #MA1200,
3.00%, 10/1/32		2,471		2,601
Pool TBA,
2.50%, 2/1/13(7)		7,000		7,319
3.50%, 2/1/13(7)		18,200		19,404
4.00%, 1/15/40(7)		1,000		1,072
3.00%, 12/31/40(7)		9,000		9,499
3.00%, 12/31/49(7)		16,100		16,870
				408,287
Federal Farm Credit Bank - 0.0%
2.63%, 4/17/14		1,400		1,432
Federal Home Loan Bank - 0.9%
0.38%, 1/29/14		4,500		4,509
0.40%, 2/28/14		2,500		2,501
2.38%, 3/14/14		2,000		2,052
5.50%, 8/13/14		1,000		1,086
0.40%, 8/28/14		2,000		2,001
0.50%, 11/20/15		5,000		5,019
5.13%, 10/19/16		5,450		6,373
5.50%, 7/15/36		500		688
				24,229
Freddie Mac - 3.5%
4.50%, 1/15/14		7,000		7,311
3.00%, 7/28/14		1,000		1,042
1.00%, 8/27/14		1,000		1,013
0.75%, 11/25/14		3,000		3,027
2.88%, 2/9/15		2,000		2,107
0.50%, 4/17/15		1,000		1,004
4.38%, 7/17/15		900		991
5.25%, 4/18/16		500		578
2.50%, 5/27/16		4,000		4,268
2.00%, 8/25/16		5,675		5,973
5.00%, 2/16/17		500		589
1.00%, 3/8/17		2,500		2,532
5.13%, 11/17/17		500		603
0.75%, 1/12/18		2,000		1,987
4.88%, 6/13/18		2,600		3,139
3.75%, 3/27/19		1,000		1,156
1.25%, 10/2/19		1,000		997
2.38%, 1/13/22		3,000		3,134
6.75%, 3/15/31		200		307
Pool #1B2125,
2.75%, 3/1/35		376		399
Pool #1B2934,
2.88%, 3/1/36		478		509
Pool #1B3264,
6.06%, 2/1/37		105		113
Pool #1B7328,
3.31%, 4/1/37		54		58

FIXED INCOME FUNDS    44    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Freddie Mac - 3.5% continued
Pool #1B7359,
5.98%, 5/1/37	$	91	$	93
Pool #1G0321,
2.85%, 9/1/35		119		127
Pool #1G0911,
2.86%, 4/1/36		265		283
Pool #1G1506,
5.51%, 1/1/37		39		42
Pool #1G1623,
5.71%, 4/1/37		85		92
Pool #1G1763,
2.75%, 11/1/35		40		43
Pool #1G1790,
3.16%, 11/1/35		67		71
Pool #1G2620,
2.86%, 11/1/36		26		28
Pool #1G2675,
5.74%, 2/1/38		307		332
Pool #1G3611,
2.32%, 4/1/37		51		54
Pool #1H1348,
5.77%, 10/1/36		29		31
Pool #1H2569,
2.49%, 9/1/35		546		582
Pool #1H2605,
5.63%, 4/1/36		198		211
Pool #1J0345,
2.75%, 3/1/37		26		28
Pool #1J0355,
2.87%, 3/1/37		17		18
Pool #1J0365,
3.01%, 4/1/37		117		125
Pool #1J1390,
5.96%, 12/1/36		30		32
Pool #1J1634,
2.72%, 12/1/36		251		270
Pool #1L0078,
2.38%, 6/1/35		33		35
Pool #1L1214,
2.38%, 12/1/35		1,407		1,470
Pool #1L1480,
2.08%, 12/1/33		74		76
Pool #1N0243,
3.01%, 8/1/36		20		21
Pool #1N1746,
2.52%, 9/1/37		133		143
Pool #781274,
2.38%, 2/1/34		19		20
Pool #782905,
4.92%, 12/1/34		20		21
Pool #847755,
2.81%, 5/1/37		96		103
Pool #848626,
3.40%, 6/1/41		262		275
Pool #848639,
3.23%, 9/1/41		350		369
Pool TBA,
2.50%, 2/1/13(7)		5,500		5,740
3.00%, 1/15/40(7)		3,800		3,990
4.00%, 1/15/40(7)		8,685		9,271
5.50%, 1/15/40(7)		3,595		3,880
3.50%, 1/15/41(7)		9,900		10,527
3.00%, 12/31/49(7)		9,000		9,409
				90,649
Freddie Mac Gold - 6.5%
Pool #A16753,
5.00%, 11/1/33		144		157
Pool #A17665,
5.00%, 1/1/34		302		328
Pool #A27950,
5.50%, 11/1/34		1,219		1,325
Pool #A31136,
5.50%, 1/1/35		299		331
Pool #A39306,
5.50%, 11/1/35		1,032		1,121
Pool #A46224,
5.00%, 7/1/35		122		134
Pool #A48104,
5.00%, 1/1/36		267		295
Pool #A51296,
6.00%, 8/1/36		204		224
Pool #A54897,
6.50%, 8/1/36		158		179
Pool #A56110,
5.50%, 12/1/36		409		443
Pool #A57604,
5.00%, 3/1/37		1,394		1,500

NORTHERN FUNDS QUARTERLY REPORT    45    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Freddie Mac Gold - 6.5% continued
Pool #A58690,
6.00%, 3/1/37	$	44	$	48
Pool #A58718,
5.50%, 3/1/37		82		89
Pool #A59081,
5.50%, 4/1/37		1,460		1,577
Pool #A60942,
5.00%, 5/1/37		314		338
Pool #A61560,
5.50%, 10/1/36		1,668		1,820
Pool #A61573,
5.00%, 9/1/34		1,725		1,875
Pool #A61597,
5.50%, 12/1/35		174		189
Pool #A64474,
5.50%, 9/1/37		120		130
Pool #A67116,
7.00%, 10/1/37		68		79
Pool #A68761,
5.50%, 9/1/37		325		351
Pool #A69169,
4.50%, 12/1/37		499		536
Pool #A69303,
6.00%, 11/1/37		146		159
Pool #A73778,
5.00%, 2/1/38		502		540
Pool #A74134,
7.00%, 2/1/38		61		70
Pool #A78507,
5.00%, 6/1/38		1,850		2,036
Pool #A81606,
6.00%, 9/1/38		211		230
Pool #A81856,
7.00%, 9/1/38		39		45
Pool #A83008,
5.50%, 11/1/38		1,965		2,150
Pool #A84432,
4.50%, 2/1/39		316		339
Pool #A88476,
4.50%, 9/1/39		3,968		4,379
Pool #A88566,
5.00%, 9/1/39		2,356		2,600
Pool #A89346,
4.50%, 10/1/39		3,098		3,324
Pool #A90749,
4.50%, 1/1/40		2,074		2,289
Pool #A91541,
5.00%, 3/1/40		674		744
Pool #A91626,
4.50%, 3/1/40		1,198		1,339
Pool #A91942,
4.50%, 4/1/40		1,006		1,110
Pool #A94672,
4.50%, 10/1/40		1,589		1,711
Pool #A96296,
4.00%, 1/1/41		1,292		1,415
Pool #A96310,
4.00%, 1/1/41		896		974
Pool #A96995,
4.00%, 2/1/41		2,622		2,801
Pool #A97443,
4.50%, 3/1/41		1,227		1,338
Pool #B10630,
4.50%, 11/1/18		299		319
Pool #B17658,
4.50%, 1/1/20		13		13
Pool #B18502,
5.50%, 6/1/20		46		50
Pool #B18931,
4.50%, 3/1/20		41		44
Pool #C03457,
4.50%, 2/1/40		1,019		1,094
Pool #C03821,
3.50%, 4/1/42		3,298		3,510
Pool #C09004,
3.50%, 7/1/42		948		1,011
Pool #C91009,
5.00%, 11/1/26		76		82
Pool #C91020,
5.50%, 3/1/27		118		128
Pool #C91247,
5.00%, 4/1/29		474		511
Pool #C91354,
4.00%, 1/1/31		1,470		1,585
Pool #C91370,
4.50%, 5/1/31		894		984
Pool #C91388,
3.50%, 2/1/32		706		754

FIXED INCOME FUNDS    46    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Freddie Mac Gold - 6.5% continued
Pool #C91402,
4.00%, 10/1/31	$	1,244	$	1,342
Pool #C91408,
3.50%, 11/1/31		792		847
Pool #C91485,
3.50%, 8/1/32		979		1,047
Pool #D97197,
5.00%, 2/1/27		119		130
Pool #D97498,
6.00%, 12/1/27		363		395
Pool #D97524,
5.50%, 1/1/28		411		445
Pool #D97564,
5.00%, 1/1/28		311		335
Pool #D98301,
4.50%, 7/1/29		493		531
Pool #E03033,
3.00%, 2/1/27		1,859		1,955
Pool #E04044,
3.50%, 8/1/27		3,131		3,292
Pool #E99030,
4.50%, 9/1/18		493		525
Pool #G01907,
4.50%, 8/1/34		154		166
Pool #G01974,
5.00%, 12/1/35		1,668		1,801
Pool #G02064,
5.00%, 2/1/36		739		796
Pool #G02069,
5.50%, 3/1/36		144		157
Pool #G02386,
6.00%, 11/1/36		1,624		1,770
Pool #G02391,
6.00%, 11/1/36		46		50
Pool #G02540,
5.00%, 11/1/34		261		282
Pool #G02649,
6.00%, 1/1/37		75		83
Pool #G02702,
6.50%, 1/1/37		217		244
Pool #G02789,
6.00%, 4/1/37		4,642		5,052
Pool #G02911,
6.00%, 4/1/37		95		104
Pool #G02973,
6.00%, 6/1/37		203		221
Pool #G03121,
5.00%, 6/1/36		686		740
Pool #G03134,
5.50%, 8/1/36		311		338
Pool #G03176,
5.00%, 8/1/37		289		311
Pool #G03218,
6.00%, 9/1/37		236		257
Pool #G03351,
6.00%, 9/1/37		356		391
Pool #G03513,
6.00%, 11/1/37		542		590
Pool #G03600,
7.00%, 11/1/37		177		204
Pool #G03737,
6.50%, 11/1/37		3,117		3,497
Pool #G03992,
6.00%, 3/1/38		653		711
Pool #G04287,
5.00%, 5/1/38		811		873
Pool #G04459,
5.50%, 6/1/38		716		773
Pool #G04611,
6.00%, 7/1/38		1,269		1,388
Pool #G04650,
6.50%, 9/1/38		1,231		1,402
Pool #G04817,
5.00%, 9/1/38		471		507
Pool #G05082,
5.00%, 3/1/38		934		1,008
Pool #G05167,
4.50%, 2/1/39		1,164		1,249
Pool #G05457,
4.50%, 5/1/39		4,331		4,766
Pool #G05725,
4.50%, 11/1/39		1,218		1,362
Pool #G05733,
5.00%, 11/1/39		1,168		1,289
Pool #G05870,
4.50%, 4/1/40		1,457		1,608
Pool #G05876,
4.50%, 4/1/40		3,323		3,730

NORTHERN FUNDS QUARTERLY REPORT    47    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Freddie Mac Gold - 6.5% continued
Pool #G06020,
5.50%, 12/1/39	$	5,500	$	5,942
Pool #G06767,
5.00%, 10/1/41		2,473		2,709
Pool #G06947,
6.00%, 5/1/40		1,326		1,443
Pool #G07002,
4.50%, 12/1/41		1,520		1,641
Pool #G07098,
3.50%, 7/1/42		1,943		2,072
Pool #G07152,
4.00%, 6/1/42		4,725		5,052
Pool #G07171,
4.00%, 8/1/42		2,201		2,391
Pool #G08189,
7.00%, 3/1/37		63		73
Pool #G08192,
5.50%, 4/1/37		339		366
Pool #G08341,
5.00%, 4/1/39		4,971		5,349
Pool #G08477,
3.50%, 2/1/42		1,865		1,985
Pool #G11776,
4.50%, 9/1/20		91		97
Pool #G12571,
4.00%, 1/1/22		271		288
Pool #G12673,
5.00%, 9/1/21		201		216
Pool #G12837,
4.50%, 4/1/22		299		319
Pool #G12868,
5.00%, 11/1/22		398		428
Pool #G12869,
5.00%, 9/1/22		362		389
Pool #G13136,
4.50%, 5/1/23		423		450
Pool #G13151,
6.00%, 3/1/23		383		421
Pool #G13201,
4.50%, 7/1/23		252		268
Pool #G13433,
5.50%, 1/1/24		301		325
Pool #G14168,
5.50%, 12/1/24		623		677
Pool #G14239,
4.00%, 9/1/26		6,234		6,593
Pool #G14554,
4.50%, 7/1/26		909		969
Pool #G18220,
6.00%, 11/1/22		44		48
Pool #G18438,
2.50%, 6/1/27		1,106		1,156
Pool #G18442,
3.50%, 8/1/27		1,906		2,004
Pool #G30327,
4.50%, 1/1/27		67		73
Pool #J00991,
4.00%, 1/1/21		107		114
Pool #J02541,
4.00%, 9/1/20		77		82
Pool #J03041,
6.00%, 7/1/21		141		156
Pool #J03736,
5.50%, 11/1/21		139		151
Pool #J05307,
4.50%, 8/1/22		49		52
Pool #J06175,
5.00%, 5/1/21		65		70
Pool #J06465,
6.00%, 11/1/22		39		43
Pool #J06476,
5.50%, 11/1/22		100		108
Pool #J08098,
5.50%, 6/1/23		91		99
Pool #J08202,
5.00%, 7/1/23		154		165
Pool #J08454,
5.00%, 8/1/23		255		274
Pool #J08913,
5.50%, 10/1/23		89		95
Pool #J09148,
5.00%, 12/1/23		238		255
Pool #J09305,
5.00%, 2/1/24		351		380
Pool #J09463,
5.00%, 3/1/24		290		312
Pool #J11136,
4.00%, 11/1/24		205		216

FIXED INCOME FUNDS    48    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Freddie Mac Gold - 6.5% continued
Pool #J12098,
4.50%, 4/1/25	$	2,407	$	2,561
Pool #J14808,
3.50%, 3/1/26		1,715		1,830
Pool #J17055,
3.00%, 11/1/26		1,184		1,246
Pool #J17232,
3.00%, 11/1/26		894		954
Pool #J17932,
3.00%, 3/1/27		1,594		1,701
Pool #Q02211,
4.50%, 7/1/41		1,292		1,415
Pool #Q02605,
4.50%, 8/1/41		3,773		4,115
Pool #Q03085,
4.00%, 9/1/41		950		1,016
Pool #Q04649,
3.50%, 11/1/41		762		811
Pool #Q08894,
3.50%, 6/1/42		1,457		1,575
Pool #Q09009,
4.00%, 6/1/42		4,093		4,447
				169,298
Government National Mortgage Association - 2.8%
Pool TBA,
3.00%, 2/1/13(7)		2,500		2,657
4.00%, 1/1/40(7)		11,100		12,087
4.00%, 1/15/40(7)		10,500		11,516
4.50%, 1/15/40(7)		19,200		21,021
3.50%, 12/31/40(7)		4,500		4,888
3.00%, 12/31/49(7)		8,000		8,505
3.50%, 12/31/49(7)		10,500		11,408
				72,082
Government National Mortgage Association I - 2.1%
Pool #510835,
5.50%, 2/15/35		130		144
Pool #597889,
5.50%, 6/15/33		511		568
Pool #614169,
5.00%, 7/15/33		184		203
Pool #616879,
3.50%, 2/15/42		1,153		1,269
Pool #617739,
6.00%, 10/15/37		77		86
Pool #634431,
6.00%, 9/15/34		50		57
Pool #641416,
5.50%, 4/15/35		328		362
Pool #646341,
6.00%, 11/15/36		131		146
Pool #648538,
5.00%, 12/15/35		432		473
Pool #651753,
5.50%, 3/15/36		89		98
Pool #658560,
6.50%, 8/15/36		356		417
Pool #661917,
7.00%, 4/15/37		83		98
Pool #670114,
6.50%, 7/15/37		100		114
Pool #675211,
6.50%, 3/15/38		161		184
Pool #675484,
5.50%, 6/15/38		543		596
Pool #676360,
6.50%, 10/15/37		75		86
Pool #682899,
6.00%, 9/15/40		962		1,076
Pool #687824,
5.50%, 8/15/38		720		790
Pool #687900,
5.00%, 9/15/38		302		330
Pool #687901,
5.00%, 9/15/38		573		625
Pool #688461,
6.00%, 5/15/38		557		622
Pool #692309,
6.00%, 1/15/39		296		330
Pool #697645,
5.50%, 10/15/38		363		399
Pool #698236,
5.00%, 6/15/39		1,686		1,846
Pool #698336,
4.50%, 5/15/39		2,523		2,774
Pool #699277,
6.00%, 9/15/38		239		267

NORTHERN FUNDS QUARTERLY REPORT    49    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Government National Mortgage Association I - 2.1% continued
Pool #700918,
5.50%, 11/15/38	$	858	$	941
Pool #700972,
5.50%, 11/15/38		238		262
Pool #701196,
6.00%, 10/15/38		409		456
Pool #703677,
5.50%, 6/15/39		506		556
Pool #704185,
5.50%, 1/15/39		366		402
Pool #710130,
7.00%, 1/15/39		132		152
Pool #717175,
4.50%, 6/15/39		1,708		1,898
Pool #719262,
5.00%, 8/15/40		583		648
Pool #720202,
4.50%, 7/15/39		1,061		1,167
Pool #723231,
4.00%, 10/15/39		693		763
Pool #723339,
5.00%, 9/15/39		643		715
Pool #726085,
4.00%, 11/15/24		578		624
Pool #728629,
4.50%, 1/15/40		2,234		2,483
Pool #733663,
4.50%, 5/15/40		3,922		4,329
Pool #737286,
4.50%, 5/15/40		1,598		1,776
Pool #737416,
3.50%, 9/15/25		455		487
Pool #738134,
3.50%, 4/15/26		766		822
Pool #738247,
4.50%, 4/15/41		1,149		1,258
Pool #745215,
4.00%, 7/15/25		507		546
Pool #747643,
4.50%, 8/15/40		5,116		5,647
Pool #760874,
3.50%, 2/15/26		597		641
Pool #768800,
4.50%, 6/15/41		460		504
Pool #773939,
4.00%, 11/15/41		1,468		1,641
Pool #778957,
3.50%, 3/15/42		1,442		1,589
Pool #781939,
6.00%, 7/15/34		779		876
Pool #782131,
5.50%, 12/15/36		274		303
Pool #782150,
5.50%, 4/15/37		287		316
Pool #782259,
5.00%, 2/15/36		439		481
Pool #782272,
5.50%, 2/15/38		618		679
Pool #782498,
6.00%, 12/15/38		333		372
Pool #782565,
5.00%, 2/15/39		6,223		6,820
Pool #782584,
5.00%, 3/15/39		559		610
Pool #782675,
4.50%, 6/15/24		450		489
Pool #782831,
6.00%, 12/15/39		217		242
				55,455
Government National Mortgage Association II - 2.6%
Pool #3570,
6.00%, 6/20/34		169		195
Pool #3665,
5.50%, 1/20/35		510		567
Pool #3852,
6.00%, 5/20/36		102		114
Pool #3879,
6.00%, 7/20/36		343		383
Pool #3910,
6.00%, 10/20/36		183		204
Pool #3994,
5.00%, 6/20/37		150		165
Pool #4018,
6.50%, 8/20/37		374		424
Pool #4026,
5.00%, 9/20/37		212		233
Pool #4027,
5.50%, 9/20/37		106		116

FIXED INCOME FUNDS    50    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Government National Mortgage Association II - 2.6% continued
Pool #4040,
6.50%, 10/20/37	$	81	$	92
Pool #4098,
5.50%, 3/20/38		587		644
Pool #4116,
6.50%, 4/20/38		172		195
Pool #4170,
6.00%, 6/20/38		441		493
Pool #4194,
5.50%, 7/20/38		1,230		1,350
Pool #4243,
5.00%, 9/20/38		348		381
Pool #4244,
5.50%, 9/20/38		330		362
Pool #4245,
6.00%, 9/20/38		198		221
Pool #4269,
6.50%, 10/20/38		209		238
Pool #4290,
5.50%, 11/20/38		240		264
Pool #4344,
6.00%, 1/20/39		361		403
Pool #4345,
6.50%, 1/20/39		226		257
Pool #4425,
5.50%, 4/20/39		569		625
Pool #4559,
5.00%, 10/20/39		1,328		1,472
Pool #4561,
6.00%, 10/20/39		699		782
Pool #4617,
4.50%, 1/20/40		343		379
Pool #4619,
5.50%, 1/20/40		1,126		1,235
Pool #4713,
4.50%, 6/20/40		1,071		1,185
Pool #4747,
5.00%, 7/20/40		961		1,065
Pool #4881,
3.50%, 12/20/40		2,820		3,073
Pool #4923,
4.50%, 1/20/41		745		822
Pool #5050,
4.00%, 5/20/26		790		844
Pool #5081,
4.00%, 6/20/41		1,409		1,546
Pool #5082,
4.50%, 6/20/41		1,464		1,611
Pool #5083,
5.00%, 6/20/41		6,262		6,916
Pool #5114,
4.00%, 7/20/41		1,036		1,137
Pool #5175,
4.50%, 9/20/41		749		826
Pool #5176,
5.00%, 9/20/41		4,807		5,312
Pool #5202,
3.50%, 10/20/41		1,631		1,774
Pool #5203,
4.00%, 10/20/41		1,228		1,337
Pool #5232,
3.50%, 11/20/41		907		986
Pool #5264,
5.50%, 12/20/41		118		130
Pool #5280,
4.00%, 1/20/42		1,345		1,466
Pool #5304,
3.50%, 2/20/42		1,122		1,220
Pool #5317,
5.50%, 2/20/42		795		874
Pool #5326,
3.00%, 3/20/27		1,740		1,862
Pool #5331,
3.50%, 3/20/42		1,824		1,984
Pool #654804,
6.00%, 5/20/36		199		222
Pool #737602,
4.00%, 11/20/40		886		981
Pool #752757,
4.50%, 11/20/40		1,342		1,496
Pool #755677,
4.00%, 12/20/40		865		954
Pool #782433,
6.00%, 10/20/38		686		766
Pool #82579,
3.50%, 7/20/40		710		760
Pool #82737,
3.00%, 2/20/41		804		855

NORTHERN FUNDS QUARTERLY REPORT    51    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 34.1%(6) continued
Government National Mortgage Association II - 2.6% continued
Pool #82793,
2.50%, 4/20/41	$	876	$	919
Pool #82857,
3.00%, 6/20/41		430		451
Pool #82960,
3.50%, 10/20/41		388		414
Pool #MA0022,
3.50%, 4/20/42		1,839		2,001
Pool #MA0088,
3.50%, 5/20/42		4,031		4,386
Pool #MA0318,
3.50%, 8/20/42		1,475		1,605
Pool #MA0321,
5.00%, 8/20/42		1,854		2,047
Pool #MA0392,
3.50%, 9/20/42		1,486		1,617
				67,238
Tennessee Valley Authority - 0.1%
5.50%, 7/18/17		600		726
5.25%, 9/15/39		1,650		2,171
				2,897
Total U.S. Government Agencies (Cost $863,865)				891,567
U.S. GOVERNMENT OBLIGATIONS - 37.5%
U.S. Treasury Bonds - 6.4%
8.75%, 8/15/20		450		697
7.88%, 2/15/21		1,550		2,333
8.00%, 11/15/21		1,125		1,737
7.13%, 2/15/23		2,000		3,016
6.25%, 8/15/23		11,550		16,560
7.63%, 2/15/25		165		266
6.00%, 2/15/26		11,750		17,003
6.13%, 11/15/27		9,000		13,371
6.25%, 5/15/30		6,000		9,277
5.38%, 2/15/31		4,000		5,710
4.50%, 2/15/36		475		625
4.75%, 2/15/37		6,335		8,643
5.00%, 5/15/37		4,575		6,455
4.38%, 2/15/38		8,890		11,535
4.50%, 5/15/38		1,700		2,247
3.50%, 2/15/39		6,000		6,783
4.25%, 5/15/39		9,250		11,801
4.50%, 8/15/39		8,000		10,601
4.38%, 11/15/39		7,000		9,106
4.63%, 2/15/40		7,250		9,795
4.38%, 5/15/40		1,000		1,302
3.88%, 8/15/40		9,000		10,817
3.75%, 8/15/41		4,000		4,701
3.13%, 2/15/42		1,000		1,046
2.75%, 8/15/42		2,000		1,931
				167,358
U.S. Treasury Notes - 31.1%
0.63%, 1/31/13		5,000		5,002
2.88%, 1/31/13		9,500		9,521
1.38%, 3/15/13		25,000		25,063
3.13%, 4/30/13		4,000		4,040
1.13%, 6/15/13		25,000		25,113
0.75%, 8/15/13		15,000		15,056
4.25%, 8/15/13		425		436
3.13%, 8/31/13		2,000		2,039
3.13%, 9/30/13		9,700		9,912
2.75%, 10/31/13		17,500		17,871
2.00%, 11/30/13		4,700		4,777
1.00%, 1/15/14		30,000		30,251
0.25%, 3/31/14		20,000		20,009
1.75%, 3/31/14		5,000		5,095
1.88%, 4/30/14		15,000		15,329
2.63%, 6/30/14		10,500		10,875
2.63%, 7/31/14		3,000		3,113
2.38%, 8/31/14		2,500		2,588
2.38%, 9/30/14		17,000		17,631
2.38%, 10/31/14		30,000		31,155
2.13%, 11/30/14		5,000		5,177
2.63%, 12/31/14		25,000		26,180
2.25%, 1/31/15		8,000		8,328
4.00%, 2/15/15		12,000		12,941
2.50%, 3/31/15		39,000		40,938
0.25%, 7/15/15		10,000		9,984
1.75%, 7/31/15		10,000		10,366
0.38%, 11/15/15		50,000		50,047
4.50%, 11/15/15		2,000		2,236
0.25%, 12/15/15		20,000		19,941
2.13%, 12/31/15		5,000		5,261
2.13%, 2/29/16		5,000		5,272
5.13%, 5/15/16		3,000		3,469

FIXED INCOME FUNDS    52    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT OBLIGATIONS - 37.5% continued
U.S. Treasury Notes - 31.1% continued
3.25%, 6/30/16	$	10,000	$	10,970
1.50%, 7/31/16		5,000		5,184
1.00%, 8/31/16		10,000		10,191
1.00%, 9/30/16		25,000		25,477
1.00%, 10/31/16		5,000		5,095
4.63%, 11/15/16		2,600		3,009
0.88%, 11/30/16		30,000		30,424
0.88%, 1/31/17		20,000		20,266
4.63%, 2/15/17		500		583
1.00%, 3/31/17		12,000		12,215
3.13%, 4/30/17		7,000		7,757
4.50%, 5/15/17		1,850		2,161
0.63%, 5/31/17		15,000		15,023
4.75%, 8/15/17		2,400		2,849
0.63%, 8/31/17		5,000		4,995
0.63%, 9/30/17		7,000		6,987
4.25%, 11/15/17		2,950		3,454
0.75%, 12/31/17		5,000		5,008
3.50%, 2/15/18		6,250		7,117
3.88%, 5/15/18		3,300		3,835
4.00%, 8/15/18		10,290		12,091
1.50%, 8/31/18		11,500		11,907
3.75%, 11/15/18		2,300		2,678
2.75%, 2/15/19		18,000		19,931
0.88%, 7/31/19		2,000		1,975
3.63%, 8/15/19		18,000		20,960
3.38%, 11/15/19		16,000		18,396
3.63%, 2/15/20		5,000		5,842
3.50%, 5/15/20		5,000		5,805
2.63%, 8/15/20		3,000		3,294
2.63%, 11/15/20		3,000		3,293
3.63%, 2/15/21		2,000		2,348
2.13%, 8/15/21		46,000		48,358
1.63%, 8/15/22		19,000		18,875
				813,369
Total U.S. Government Obligations (Cost $927,006)				980,727
MUNICIPAL BONDS - 0.9%
Arizona - 0.0%
Phoenix Taxable G.O. Unlimited Bonds, Series A, Build America Bonds,
5.27%, 7/1/34		100		116
Salt River Project Agricultural Improvement & Power District Electric System Revenue Bonds, Build America Bonds,
4.84%, 1/1/41		110		131
				247
California - 0.3%
Bay Area Toll Authority Bridge Revenue Bonds, Series F-2, Build America Bonds,
6.26%, 4/1/49		425		582
Bay Area Toll Authority Bridge Revenue Bonds, Series S1, Build America Bonds,
7.04%, 4/1/50		150		216
Bay Area Toll Authority Bridge TRB, Series S-3, Build America Bonds,
6.91%, 10/1/50		150		213
California State G.O. Unlimited Bonds, Build America Bonds,
7.70%, 11/1/30		135		168
7.30%, 10/1/39		920		1,275
7.60%, 11/1/40		400		585
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		582
California State Various Purpose Taxable G.O. Unlimited Bonds,
6.20%, 3/1/19		200		240
California State Various Purpose Taxable G.O. Unlimited Bonds, Build America Bonds,
7.55%, 4/1/39		585		839
East Bay Municipal Utility District Water System Revenue Bonds, Build America Bonds,
5.87%, 6/1/40		300		391
Los Angeles Community College District G.O. Unlimited Bonds, Build America Bonds,
6.75%, 8/1/49		150		206
Los Angeles Department of Airports Direct Pay TRB, Build America Bonds,
6.58%, 5/15/39		250		324
Los Angeles Unified School District G.O. Unlimited Bonds, Build America Bonds,
6.76%, 7/1/34		290		384

NORTHERN FUNDS QUARTERLY REPORT    53    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 0.9% continued
California - 0.3% continued
Los Angeles Unified School District Taxable G.O. Unlimited Bonds, Series KR, Build America Bonds,
5.75%, 7/1/34	$	335	$	400
Metropolitan Water District of Southern California TRB, Series A, Build America Bonds,
6.95%, 7/1/40		100		124
San Diego County Water Authority Financing Agency Revenue Bonds, Series B, Build America Bonds,
6.14%, 5/1/49		100		131
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Build America Bonds,
6.95%, 11/1/50		75		106
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Series B, Build America Bonds,
6.00%, 11/1/40		300		370
University of California Revenue Bonds, Build America Bonds,
5.95%, 5/15/45		150		184
University of California Revenue Bonds, Build America Bonds, Regents University,
6.27%, 5/15/31		200		232
				7,616
Colorado - 0.0%
Denver City & County G.O. Unlimited Bonds, Build America Bonds,
5.65%, 8/1/30		250		299
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		62
				361
Connecticut - 0.0%
Connecticut State G.O. Unlimited Bonds, Build America Bonds,
5.63%, 12/1/29		165		199
Connecticut State G.O. Unlimited Bonds, Series A,
5.85%, 3/15/32		300		376
				575
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		83
6.66%, 4/1/57		100		118
7.06%, 4/1/57		300		335
				536
Illinois - 0.1%
Chicago Board of Education G.O. Unlimited Bonds, Qualified School Construction Bonds,
6.32%, 11/1/29		160		185
Chicago Taxable G.O. Unlimited Bonds, Project C1,
7.78%, 1/1/35		100		130
Chicago Transit Authority Sales & Transfer Tax Receipts Pension Funding TRB, Series A,
6.90%, 12/1/40		300		360
Chicago Transit Authority Sales Tax Receipts Revenue Bonds, Series B, Build America Bonds,
6.20%, 12/1/40		140		157
Illinois State G.O. Unlimited Bonds, Build America Bonds,
6.63%, 2/1/35		750		853
Illinois State Taxable G.O. Unlimited Bonds,
4.42%, 1/1/15		100		106
5.67%, 3/1/18		300		341
Illinois State Taxable Pension G.O. Unlimited Bonds,
5.10%, 6/1/33		1,025		1,011
				3,143
Massachusetts - 0.0%
Massachusetts State G.O. Limited Bonds, Series D, Build America Bonds,
4.50%, 8/1/31		250		281
Mississippi - 0.0%
Mississippi State Taxable G.O. Unlimited Bonds, Series F, Build America Bonds,
5.25%, 11/1/34		100		119

FIXED INCOME FUNDS    54    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 0.9% continued
Nevada - 0.1%
Clark County Airport Revenue Bonds, Series B, Build America Bonds,
6.88%, 7/1/42	$	355	$	410
Clark County Airport System TRB, Series C, Build America Bonds,
6.82%, 7/1/45		200		284
				694
New Jersey - 0.1%
New Jersey State EDA Lease Revenue Bonds, Series A (NATL-RE Insured),
7.43%, 2/15/29		100		128
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, Build America Bonds,
6.56%, 12/15/40		200		265
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		603
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		181
				1,703
New York - 0.1%
Metropolitan Transportation Authority Dedicated Tax Fund TRB, Build America Bonds,
7.34%, 11/15/39		75		108
Metropolitan Transportation Authority TRB, Build America Bonds,
6.69%, 11/15/40		100		128
Metropolitan Transportation Authority TRB, Series E, Build America Bonds,
6.81%, 11/15/40		60		79
New York City G.O. Unlimited Bonds, Build America Bonds,
5.52%, 10/1/37		100		122
New York City G.O. Unlimited Bonds, Series H-1, Build America Bonds,
5.85%, 6/1/40		85		111
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Build America Bonds,
5.75%, 6/15/41		200		258
5.72%, 6/15/42		250		325
New York City Taxable G.O. Unlimited Bonds, Series F-1, Build America Bonds,
6.65%, 12/1/31		225		277
New York City Transitional Finance Authority TRB, Build America Bonds, Future Tax Secured,
5.77%, 8/1/36		300		376
New York State Dormitory Authority Personal Income TRB, Build America Bonds,
5.60%, 3/15/40		250		309
New York State Dormitory Authority Personal Income TRB, Series F, Build America Bonds,
5.63%, 3/15/39		75		91
New York State Urban Development Corp. TRB, Build America Bonds,
5.77%, 3/15/39		100		120
Port Authority of New York & New Jersey Consolidated 164th TRB (G.O. of Authority Insured),
5.65%, 11/1/40		350		420
Port Authority of New York & New Jersey Consolidated 168th Revenue Bonds (G.O. of Authority Insured),
4.93%, 10/1/51		250		272
				2,996
Ohio - 0.1%
American Municipal Power-Ohio, Inc. Revenue Bonds, Subseries B, Build America Bonds,
6.45%, 2/15/44		200		238
American Municipal Power-Ohio, Inc. TRB, Series B, Combined Hydroelectric Projects,
8.08%, 2/15/50		300		438
Northeast Regional Sewer District Improvement TRB, Build America Bonds,
6.04%, 11/15/40		145		167
Ohio State University TRB, Series A,
4.80%, 6/1/11(3)		200		223

NORTHERN FUNDS QUARTERLY REPORT    55    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 0.9% continued
Ohio - 0.1% continued
Ohio State University TRB, Series C, Build America Bonds,
4.91%, 6/1/40	$	190	$	221
Ohio State Water Quality Development Authority Pollution Control TRB, Series B-2, Loan Fund,
4.88%, 12/1/34		90		104
				1,391
Oregon - 0.0%
Oregon State Department of Transportation Highway User TRB, Series A, Sub Lien, Build America Bonds,
5.83%, 11/15/34		200		259
Pennsylvania - 0.0%
State Public School Building Authority TRB, Series A, Qualified School Construction Bonds,
5.00%, 9/15/27		200		231
Puerto Rico - 0.0%
Puerto Rico Commonwealth Government Development Bank TRB, Senior Notes, Series B,
3.67%, 5/1/14		150		149
4.70%, 5/1/16		100		99
				248
Tennessee - 0.0%
Metropolitan Government of Nashville & Davidson County Convention Center Authority TRB, Series B, Build America Bonds,
6.73%, 7/1/43		100		120
Texas - 0.1%
Dallas Area Rapid Transit Sales TRB, Build America Bonds,
5.02%, 12/1/48		180		214
Dallas Independent School District Taxable G.O. Unlimited Bonds, Series C, Build America Bonds (PSF Gtd.),
6.45%, 2/15/35		200		251
Houston Taxable Refunding G.O. Limited Bonds, Series A, Pension Obligation,
6.29%, 3/1/32		300		374
North Texas Tollway Authority TRB, Series B, Build America Bonds,
6.72%, 1/1/49		125		167
San Antonio Electric & Gas Revenue Bonds, Build America Bonds,
5.99%, 2/1/39		200		258
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		362
University of Texas Revenue Bonds, Series C, Build America Bonds,
4.79%, 8/15/46		100		116
University of Texas Revenue Bonds, Series D, Build America Bonds,
5.13%, 8/15/42		190		233
				2,235
Utah - 0.0%
Utah State G.O. Unlimited Bonds, Series B, Build America Bonds,
3.54%, 7/1/25		95		101
Washington - 0.0%
Central Puget Sound Regional Transportation Authority Sales & Use TRB, Build America Bonds,
5.49%, 11/1/39		80		100
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		121
				343
Total Municipal Bonds (Cost $19,168)				23,236

	NUMBER OF SHARES		VALUE (000S)
OTHER - 0.0%
Escrow Lehman(8)		50,000	$	—
Total Other (Cost $39)				—

FIXED INCOME FUNDS    56    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 6.4%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(9) (10)		166,605,862	$	166,606
Total Investment Companies (Cost $166,606)				166,606
Total Investments - 106.1% (Cost $2,618,648)				2,775,025
Liabilities less Other Assets - (6.1)%				(159,963	)
NET ASSETS - 100.0%			$	2,615,062

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 December 31, 2012, the value of these restricted illiquid securities amounted to approximately $8,562,000 or 0.3% of net assets. Additional information on the restricted illiquid securities is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
AbbVie, Inc.,
1.75%, 11/6/17	11/5/12	$	264
AbbVie, Inc.,
2.90%, 11/6/22	12/13/12		1,020
AbbVie, Inc.,
4.40%, 11/6/42	11/5/12		163
ADT (The) Corp.,
2.25%, 7/15/17	6/27/12		150
ADT (The) Corp.,
4.88%, 7/15/42	6/27/12		99
American Express Co.,
2.65%, 12/2/22	6/3/09-9/11/09		462
Archer-Daniels-Midland Co.,
4.02%, 4/16/43	12/6/07		34
Broadcom Corp.,
2.50%, 8/15/22	8/13/12		99
CC Holdings GS V LLC,
2.38%, 12/15/17	12/11/12		100
Eaton Corp.,
1.50%, 11/2/17	11/14/12		215
Eaton Corp.,
2.75%, 11/2/22	12/28/12		503
Exelon Generation Co. LLC,
4.25%, 6/15/22	6/13/12		250
Express Scripts Holding Co.,
2.65%, 2/15/17	2/6/12-3/19/12		725
Express Scripts Holding Co.,
4.75%, 11/15/21	11/14/11		496
Kraft Foods Group, Inc.,
1.63%, 6/4/15	5/30/12	$	100
Kraft Foods Group, Inc.,
3.50%, 6/6/22	5/30/12-12/13/12		1,193
Kraft Foods Group, Inc.,
5.00%, 6/4/42	5/30/12-12/13/12		445
Lockheed Martin Corp.,
4.07%, 12/15/42	3/15/07-2/28/08		296
News America, Inc.,
3.00%, 9/15/22	9/11/12		199
Pentair Finance S.A.,
1.35%, 12/1/15	11/19/12		155
Phillips 66,
2.95%, 5/1/17	3/7/12		150
Phillips 66,
5.88%, 5/1/42	3/7/12-9/27/12		855
Southwestern Energy Co.,
4.10%, 3/15/22	2/29/12		100

(3) Century bond maturing in 2111.

(4) Century bond maturing 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 guaranteed.

(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 to the Fund and the investment adviser to the Northern Institutional Funds.

(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 $154,849,000 during the nine months ended December 31, 2012.

At December 31, 2012, the quality distribution for the Bond Index Fund was:

QUALITY DISTRIBUTION*	% OF LONG-TERM INVESTMENTS
US Agency		25.2	%
US Treasury		42.3
AAA		3.5
AA		3.4
A		10.6
BBB		9.0
Cash Equivalents		6.0
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

NORTHERN FUNDS QUARTERLY REPORT    57    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

BOND INDEX FUND continued DECEMBER 31, 2012 (UNAUDITED)

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 and 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.

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 Bond Index Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Asset-Backed Securities	$	—	$	56,743	(1)	$	—	$	56,743
Corporate Bonds		—		457,058	(1)		—		457,058
Foreign Issuer Bonds		—		199,088	(1)		—		199,088
U.S. Government Agencies		—		891,567	(1)		—		891,567
U.S. Government Obligations		—		980,727	(1)		—		980,727
Municipal Bonds		—		23,236	(1)		—		23,236
Investment Companies		166,606		—			—		166,606
Total Investments	$	166,606	$	2,608,419		$	—	$	2,775,025

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	2,618,700
Gross tax appreciation of investments	$	157,822
Gross tax depreciation of investments		(1,497	)
Net tax appreciation of investments	$	156,325

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.

The interest rates reflected in the Schedule of Investments represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, the current reset rate for floating rate securities, the 7-day for money market funds 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    58    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 3 .1%
Automobile - 0.3%
Honda Auto Receivables Owner Trust, Series 2012-1, Class A3,
0.77%, 1/15/16	$	80	$	80
Nissan Auto Receivables Owner Trust, Series 2012-A, Class A3,
0.73%, 5/16/16		5,385		5,412
				5,492
Commercial Mortgage-Backed Securities - 2.8%
Banc of America Commercial Mortgage Trust, Series 2006-4, Class A2,
5.52%, 7/10/46		327		331
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A2,
5.32%, 9/10/47		7,847		7,848
Banc of America Commercial Mortgage Trust, Series 2006-5, Class A4,
5.41%, 9/10/47		5,940		6,756
Banc of America Merrill Lynch Commercial Mortgage, Inc., Series 2004-5, Class A4,
4.94%, 11/10/41		1,235		1,308
Bear Stearns Commercial Mortgage Securities, Series 2003-PWR2, Class A4,
5.19%, 5/11/39		2,547		2,594
Bear Stearns Commercial Mortgage Securities, Series 2004-PWR3, Class A4,
4.72%, 2/11/41		500		515
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR10, Class A4,
5.41%, 12/11/40		8,080		8,998
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR8, Class A4,
4.67%, 6/11/41		3,525		3,820
Bear Stearns Commercial Mortgage Securities, Series 2005-PWR9, Class A2,
4.74%, 9/11/42		349		357
JP Morgan Chase Commercial Mortgage Securities Corp., Series 2005-LDP1, Class A2,
4.63%, 3/15/46		3,146		3,152
LB-UBS Commercial Mortgage Trust, Series 2003-C3, Class A4,
4.17%, 5/15/32		1,289		1,295
LB-UBS Commercial Mortgage Trust, Series 2003-C8, Class A4,
5.12%, 11/15/32		11,475		11,735
LB-UBS Commercial Mortgage Trust, Series 2006-C1, Class A2,
5.08%, 2/15/31		195		195
LB-UBS Commercial Mortgage Trust, Series 2006-C6, Class A2,
5.26%, 9/15/39		76		78
				48,982
Total Asset-Backed Securities (Cost $53,712)				54,474
CORPORATE BONDS - 39.8%
Aerospace/Defense - 0.6%
B/E Aerospace, Inc.,
5.25%, 4/1/22		3,590		3,805
Raytheon Co.,
2.50%, 12/15/22		3,200		3,157
TransDigm, Inc.,
5.50%, 10/15/20(1) (2)		3,500		3,640
				10,602
Agriculture - 1.2%
Altria Group, Inc.,
10.20%, 2/6/39		3,530		5,905
Bunge Ltd. Finance Corp.,
4.10%, 3/15/16		3,071		3,299
8.50%, 6/15/19		1,975		2,541
Lorillard Tobacco Co.,
2.30%, 8/21/17		1,775		1,795
8.13%, 6/23/19		5,510		7,031
				20,571
Auto Manufacturers - 0.3%
Ford Motor Co.,
7.45%, 7/16/31		1,350		1,714
Nissan Motor Acceptance Corp.,
4.50%, 1/30/15(1) (2)		2,730		2,920
				4,634
Auto Parts & Equipment - 0.3%
BorgWarner, Inc.,
4.63%, 9/15/20		3,350		3,687

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 39.8% continued
Auto Parts & Equipment - 0.3% continued
Delphi Corp.,
5.88%, 5/15/19	$	2,390	$	2,563
				6,250
Banks - 5.6%
Bank of America Corp.,
1.50%, 10/9/15		2,000		2,010
3.75%, 7/12/16		6,390		6,830
3.88%, 3/22/17		2,460		2,668
6.00%, 9/1/17		3,255		3,812
5.70%, 1/24/22		3,020		3,632
5.88%, 2/7/42		3,060		3,818
Capital One Capital V,
10.25%, 8/15/39		5,005		5,005
Capital One Financial Corp.,
2.15%, 3/23/15		2,695		2,751
Citigroup, Inc.,
2.65%, 3/2/15		2,520		2,595
4.45%, 1/10/17		2,050		2,271
6.00%, 8/15/17		1,685		1,985
5.95%, 12/29/49		4,300		4,354
Goldman Sachs Group (The), Inc.,
3.30%, 5/3/15		1,325		1,381
3.63%, 2/7/16		2,880		3,048
5.63%, 1/15/17		2,945		3,231
5.75%, 1/24/22		3,205		3,789
6.75%, 10/1/37		2,845		3,224
6.25%, 2/1/41		1,930		2,368
HSBC USA, Inc.,
2.38%, 2/13/15		1,800		1,851
1.63%, 1/16/18		1,955		1,957
JPMorgan Chase & Co.,
2.00%, 8/15/17		3,120		3,187
4.50%, 1/24/22		3,780		4,276
3.25%, 9/23/22		3,545		3,651
JPMorgan Chase Bank N.A.,
6.00%, 10/1/17		190		225
Morgan Stanley,
2.88%, 1/24/14		2,210		2,247
4.00%, 7/24/15		3,110		3,254
3.45%, 11/2/15		2,580		2,688
4.75%, 3/22/17		2,935		3,202
5.75%, 1/25/21		2,485		2,838
4.88%, 11/1/22		2,700		2,796
6.38%, 7/24/42		3,145		3,687
PNC Bank N.A.,
2.70%, 11/1/22		2,020		2,021
Wells Fargo & Co.,
1.50%, 1/16/18		1,850		1,853
				98,505
Beverages - 0.5%
Anheuser-Busch InBev Worldwide, Inc.,
3.75%, 7/15/42		1,235		1,241
Constellation Brands, Inc.,
6.00%, 5/1/22		4,445		5,089
Dr Pepper Snapple Group, Inc.,
2.60%, 1/15/19		1,240		1,279
SABMiller Holdings, Inc.,
1.85%, 1/15/15(1) (2)		950		969
				8,578
Biotechnology - 0.4%
Celgene Corp.,
1.90%, 8/15/17		130		132
Genzyme Corp.,
3.63%, 6/15/15		2,350		2,518
Life Technologies Corp.,
5.00%, 1/15/21		3,820		4,305
				6,955
Chemicals - 0.8%
Ashland, Inc.,
4.75%, 8/15/22(1) (2)		1,935		2,012
Cabot Corp.,
2.55%, 1/15/18		2,390		2,464
CF Industries, Inc.,
6.88%, 5/1/18		4,435		5,418
Dow Chemical (The) Co.,
4.38%, 11/15/42		1,315		1,306
Huntsman International LLC,
4.88%, 11/15/20(1) (2)		1,935		1,957
Tronox Finance LLC,
6.38%, 8/15/20(2)		1,935		1,954
				15,111
Commercial Services - 1.1%
ERAC USA Finance LLC,
7.00%, 10/15/37(1) (2)		4,605		5,848
HDTFS, Inc.,
5.88%, 10/15/20(1) (2)		2,635		2,754

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 39.8% continued
Commercial Services - 1.1% continued
Hertz (The) Corp.,
7.50%, 10/15/18	$	5,450	$	6,022
United Rentals North America, Inc.,
5.75%, 7/15/18(1) (2)		5,000		5,387
				20,011
Computers - 0.2%
Hewlett-Packard Co.,
2.63%, 12/9/14		330		334
2.60%, 9/15/17		2,805		2,732
NCR Corp.,
5.00%, 7/15/22(2)		970		986
				4,052
Diversified Financial Services - 4.3%
American Express Credit Corp.,
1.75%, 6/12/15		2,080		2,124
2.80%, 9/19/16		2,640		2,793
Capital One Bank USA N.A.,
8.80%, 7/15/19		100		135
Caterpillar Financial Services Corp.,
1.25%, 11/6/17		1,350		1,349
Countrywide Financial Corp.,
6.25%, 5/15/16		4,035		4,429
FMR LLC,
6.45%, 11/15/39(1) (2)		8,300		10,349
Ford Motor Credit Co. LLC,
3.88%, 1/15/15		3,920		4,088
7.00%, 4/15/15		1,515		1,689
4.25%, 2/3/17		2,955		3,166
3.00%, 6/12/17		500		514
Franklin Resources, Inc.,
3.13%, 5/20/15		50		53
2.80%, 9/15/22		1,110		1,124
General Electric Capital Corp.,
1.63%, 7/2/15		4,270		4,341
3.35%, 10/17/16		2,715		2,914
2.30%, 4/27/17		2,480		2,571
5.30%, 2/11/21		3,875		4,498
6.25%, 12/15/22		3,000		3,267
General Motors Financial Co., Inc.,
4.75%, 8/15/17(1) (2)		4,455		4,684
Hyundai Capital America,
4.00%, 6/8/17(1) (2)		1,910		2,061
Icahn Enterprises L.P./Icahn Enterprises Finance Corp.,
7.75%, 1/15/16		6,870		7,119
International Lease Finance Corp.,
6.25%, 5/15/19		5,395		5,746
5.88%, 8/15/22		2,610		2,764
SLM Corp.,
6.00%, 1/25/17		3,295		3,567
TD Ameritrade Holding Corp.,
4.15%, 12/1/14		55		59
				75,404
Electric - 1.6%
CMS Energy Corp.,
2.75%, 5/15/14		4,730		4,797
6.55%, 7/17/17		1,900		2,240
5.05%, 2/15/18		4,175		4,701
Exelon Generation Co. LLC,
6.20%, 10/1/17		2,345		2,769
6.25%, 10/1/39		1,605		1,867
FirstEnergy Corp.,
7.38%, 11/15/31		4,650		6,006
NV Energy, Inc.,
6.25%, 11/15/20		3,455		4,063
PPL Capital Funding, Inc.,
3.50%, 12/1/22		1,855		1,888
				28,331
Electronics - 0.4%
Agilent Technologies, Inc.,
6.50%, 11/1/17		5,905		7,138
Engineering & Construction - 0.2%
URS Corp.,
5.00%, 4/1/22(1) (2)		3,000		3,088
Environmental Control - 0.2%
Clean Harbors, Inc.,
5.25%, 8/1/20		1,770		1,845
5.13%, 6/1/21(2)		1,935		2,003
				3,848
Food - 0.2%
Smithfield Foods, Inc.,
6.63%, 8/15/22		3,020		3,337

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 39.8% continued
Forest Products & Paper - 0.9%
Domtar Corp.,
4.40%, 4/1/22	$	3,580	$	3,621
6.25%, 9/1/42		1,680		1,768
International Paper Co.,
7.95%, 6/15/18		2,995		3,872
Westvaco Corp.,
8.20%, 1/15/30		4,570		6,030
				15,291
Gas - 0.2%
CenterPoint Energy, Inc.,
6.50%, 5/1/18		2,380		2,903
Sempra Energy,
2.30%, 4/1/17		60		62
				2,965
Healthcare - Products - 0.1%
CR Bard, Inc.,
1.38%, 1/15/18		1,250		1,257
Healthcare - Services - 1.2%
Aetna, Inc.,
1.75%, 5/15/17		40		41
Cigna Corp.,
2.75%, 11/15/16		315		331
DaVita HealthCare Partners, Inc.,
5.75%, 8/15/22		2,445		2,576
Fresenius Medical Care US Finance II, Inc.,
5.88%, 1/31/22(2)		6,875		7,459
HCA, Inc.,
4.75%, 5/1/23		3,450		3,510
Humana, Inc.,
3.15%, 12/1/22		1,350		1,343
4.63%, 12/1/42		590		596
UnitedHealth Group, Inc.,
1.40%, 10/15/17		965		967
WellPoint, Inc.,
1.88%, 1/15/18		1,985		2,010
3.13%, 5/15/22		2,510		2,536
				21,369
Household Products/Wares - 0.1%
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu,
5.75%, 10/15/20(1) (2)		1,775		1,833
Insurance - 2.2%
Aflac, Inc.,
2.65%, 2/15/17		1,810		1,903
American International Group, Inc.,
2.38%, 8/24/15		1,560		1,605
3.80%, 3/22/17		3,070		3,323
4.88%, 6/1/22		2,900		3,311
8.18%, 5/15/58		2,730		3,556
Liberty Mutual Group, Inc.,
4.95%, 5/1/22(1) (2)		2,220		2,420
Metropolitan Life Global Funding I,
2.50%, 9/29/15(1) (2)		1,950		2,034
Principal Financial Group, Inc.,
1.85%, 11/15/17		1,300		1,307
Protective Life Corp.,
7.38%, 10/15/19		85		103
8.45%, 10/15/39		9,430		12,298
Prudential Financial, Inc.,
5.88%, 9/15/42		2,610		2,740
5.63%, 6/15/43		3,915		4,057
				38,657
Internet - 0.4%
Amazon.com, Inc.,
1.20%, 11/29/17		1,300		1,293
eBay, Inc.,
1.35%, 7/15/17		50		51
4.00%, 7/15/42		1,295		1,261
InterActiveCorp.,
4.75%, 12/15/22(1) (2)		2,850		2,836
Symantec Corp.,
2.75%, 6/15/17		2,505		2,576
				8,017
Iron/Steel - 0.5%
Cliffs Natural Resources, Inc.,
4.88%, 4/1/21		2,975		2,955
Commercial Metals Co.,
7.35%, 8/15/18		3,865		4,193
Steel Dynamics, Inc.,
6.13%, 8/15/19(2)		1,780		1,887
				9,035
Lodging - 0.3%
Hyatt Hotels Corp.,
6.88%, 8/15/19(1) (2)		5,100		6,027

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 39.8% continued
Machinery - Diversified - 0.4%
Case New Holland, Inc.,
7.75%, 9/1/13	$	7,545	$	7,847
Media - 2.5%
CBS Corp.,
1.95%, 7/1/17		1,560		1,589
CC Holdings GS V LLC,
2.38%, 12/15/17(1) (2)		1,575		1,583
CCO Holdings LLC/CCO Holdings Capital Corp.,
5.13%, 2/15/23		4,355		4,344
Comcast Corp.,
4.95%, 6/15/16		1,239		1,397
6.40%, 5/15/38		3,830		4,894
4.65%, 7/15/42		2,610		2,751
DIRECTV Holdings LLC/DIRECTV
Financing Co., Inc.,
5.20%, 3/15/20		3,085		3,501
5.15%, 3/15/42		3,520		3,560
NBCUniversal Media LLC,
2.10%, 4/1/14		2,250		2,291
4.45%, 1/15/43		1,990		2,015
News America, Inc.,
3.00%, 9/15/22(1) (2)		1,990		1,999
6.90%, 8/15/39		1,829		2,395
Starz LLC/Starz Finance Corp.,
5.00%, 9/15/19(2)		1,935		1,983
Time Warner Cable, Inc.,
4.00%, 9/1/21		1,900		2,086
5.50%, 9/1/41		3,980		4,428
Time Warner, Inc.,
6.10%, 7/15/40		2,415		2,924
Viacom, Inc.,
2.50%, 12/15/16		50		52
				43,792
Mining - 0.3%
Freeport-McMoRan Copper & Gold, Inc.,
1.40%, 2/13/15		2,445		2,440
Newmont Mining Corp.,
3.50%, 3/15/22		2,465		2,542
				4,982
Miscellaneous Manufacturing - 0.3%
Eaton Corp.,
1.50%, 11/2/17(1) (2)		1,495		1,498
4.00%, 11/2/32(1) (2)		1,725		1,774
General Electric Co.,
5.25%, 12/6/17		40		47
4.13%, 10/9/42		2,200		2,263
				5,582
Office/Business Equipment - 0.2%
Xerox Corp.,
2.95%, 3/15/17		1,830		1,878
4.50%, 5/15/21		2,450		2,594
				4,472
Oil & Gas - 3.5%
Anadarko Petroleum Corp.,
6.38%, 9/15/17		3,970		4,742
Atwood Oceanics, Inc.,
6.50%, 2/1/20		1,665		1,790
Continental Resources, Inc.,
5.00%, 9/15/22		3,875		4,175
EQT Corp.,
4.88%, 11/15/21		3,690		3,961
Linn Energy LLC/Linn Energy
Finance Corp.,
6.25%, 11/1/19(1) (2)		6,340		6,372
Marathon Oil Corp.,
2.80%, 11/1/22		3,090		3,109
Murphy Oil Corp.,
3.70%, 12/1/22		1,955		1,948
Newfield Exploration Co.,
7.13%, 5/15/18		3,050		3,218
6.88%, 2/1/20		3,260		3,488
5.75%, 1/30/22		3,360		3,696
Plains Exploration & Production Co.,
7.63%, 6/1/18		2,375		2,500
6.13%, 6/15/19		2,475		2,698
6.75%, 2/1/22		1,835		2,060
QEP Resources, Inc.,
6.88%, 3/1/21		6,965		8,027
Range Resources Corp.,
5.75%, 6/1/21		3,615		3,868
Rowan Cos., Inc.,
4.88%, 6/1/22		3,560		3,866
Tesoro Corp.,
4.25%, 10/1/17		750		776
5.38%, 10/1/22		850		905
				61,199

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 39.8% continued
Oil & Gas Services - 0.2%
Cameron International Corp.,
3.60%, 4/30/22	$	2,225	$	2,324
National Oilwell Varco, Inc.,
1.35%, 12/1/17		1,375		1,384
				3,708
Packaging & Containers - 0.2%
Ball Corp.,
5.75%, 5/15/21		1,035		1,120
Rock-Tenn Co.,
3.50%, 3/1/20(1) (2)		1,935		1,986
				3,106
Pharmaceuticals - 1.1%
AbbVie, Inc.,
2.90%, 11/6/22(1) (2)		2,480		2,526
4.40%, 11/6/42(1) (2)		1,695		1,802
Bristol-Myers Squibb Co.,
0.88%, 8/1/17		315		312
Cardinal Health, Inc.,
1.90%, 6/15/17		60		61
Express Scripts Holding Co.,
3.13%, 5/15/16		4,005		4,222
3.90%, 2/15/22(1) (2)		3,535		3,812
Medco Health Solutions, Inc.,
2.75%, 9/15/15		1,980		2,064
Mylan, Inc.,
7.63%, 7/15/17(2)		2,450		2,753
Teva Pharmaceutical Finance IV LLC,
2.25%, 3/18/20		1,350		1,362
				18,914
Pipelines - 1.2%
Access Midstream Partners L.P./ACMP
Finance Corp.,
6.13%, 7/15/22		4,000		4,310
Energy Transfer Partners L.P.,
5.20%, 2/1/22		70		80
6.50%, 2/1/42		3,140		3,844
Enterprise Products Operating LLC,
6.45%, 9/1/40		1,985		2,493
Kinder Morgan Energy Partners L.P.,
6.00%, 2/1/17		35		41
Kinder Morgan Finance Co. LLC,
6.00%, 1/15/18(1) (2)		4,695		5,160
ONEOK Partners L.P.,
2.00%, 10/1/17		1,095		1,104
Regency Energy Partners L.P./Regency
Energy Finance Corp.,
6.50%, 7/15/21		3,480		3,811
				20,843
Real Estate - 0.2%
WEA Finance LLC/WT Finance Aust Pty Ltd.,
3.38%, 10/3/22(1) (2)		3,030		3,114
Real Estate Investment Trusts - 2.4%
American Tower Corp.,
4.50%, 1/15/18		3,830		4,199
Boston Properties L.P.,
3.70%, 11/15/18		2,500		2,716
DDR Corp.,
4.63%, 7/15/22		2,640		2,881
EPR Properties,
5.75%, 8/15/22		3,500		3,629
HCP, Inc.,
5.63%, 5/1/17		2,705		3,089
3.75%, 2/1/19		1,225		1,293
2.63%, 2/1/20		3,245		3,232
Health Care REIT, Inc.,
2.25%, 3/15/18		1,395		1,394
Host Hotels & Resorts L.P.,
5.88%, 6/15/19		475		518
4.75%, 3/1/23		4,365		4,627
Realty Income Corp.,
2.00%, 1/31/18		2,605		2,603
Simon Property Group L.P.,
2.75%, 2/1/23		1,965		1,964
Ventas Realty L.P./Ventas Capital Corp.,
2.00%, 2/15/18		1,700		1,701
4.00%, 4/30/19		1,910		2,053
4.75%, 6/1/21		3,540		3,871
4.25%, 3/1/22		2,030		2,153
				41,923
Retail - 0.9%
Costco Wholesale Corp.,
1.13%, 12/15/17		1,950		1,963
CVS Caremark Corp.,
2.75%, 12/1/22		2,495		2,504
5.75%, 5/15/41		2,330		2,901

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 39.8% continued
Retail - 0.9% continued
Macy’s Retail Holdings, Inc.,
2.88%, 2/15/23	$	2,600	$	2,546
Sally Holdings LLC/Sally Capital, Inc.,
5.75%, 6/1/22		2,640		2,865
Walgreen Co.,
1.80%, 9/15/17		2,390		2,403
				15,182
Semiconductors - 0.3%
Intel Corp.,
2.70%, 12/15/22		2,065		2,062
Samsung Electronics America, Inc.,
1.75%, 4/10/17(1) (2)		3,265		3,304
				5,366
Software - 0.4%
Fidelity National Information Services, Inc.,
5.00%, 3/15/22		2,875		3,083
Fiserv, Inc.,
3.50%, 10/1/22		1,850		1,884
Oracle Corp.,
1.20%, 10/15/17		2,140		2,146
				7,113
Telecommunications - 1.8%
AT&T, Inc.,
1.40%, 12/1/17		3,435		3,436
CenturyLink, Inc.,
5.80%, 3/15/22		3,030		3,203
Crown Castle International Corp.,
5.25%, 1/15/23(2)		1,350		1,444
Frontier Communications Corp.,
8.25%, 4/15/17		5,615		6,485
Juniper Networks, Inc.,
5.95%, 3/15/41		2,730		3,109
Qwest Communications International, Inc.,
7.13%, 4/1/18		6,609		6,896
SBA Communications Corp.,
5.63%, 10/1/19(2)		900		945
SBA Telecommunications, Inc.,
5.75%, 7/15/20(2)		1,150		1,222
Windstream Corp.,
8.13%, 8/1/13		4,290		4,451
				31,191
Transportation - 0.1%
CSX Corp.,
4.75%, 5/30/42		2,465		2,654
Total Corporate Bonds (Cost $656,126)				701,854
FOREIGN ISSUER BONDS - 8.9%
Auto Manufacturers - 0.2%
Volkswagen International Finance N.V.,
1.60%, 11/20/17(1) (2)		3,735		3,729
Banks - 0.9%
Abbey National Treasury Services PLC,
4.00%, 4/27/16		3,065		3,241
Australia & New Zealand Banking Group Ltd.,
1.88%, 10/6/17		2,015		2,054
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.,
3.95%, 11/9/22		1,350		1,383
ING Bank N.V.,
2.00%, 10/18/13(1) (2)		1,080		1,085
Lloyds TSB Bank PLC,
6.50%, 9/14/20(1) (2)		4,240		4,685
National Australia Bank Ltd.,
1.60%, 8/7/15		2,620		2,659
				15,107
Beverages - 0.4%
Heineken N.V.,
1.40%, 10/1/17(1) (2)		1,590		1,585
Pernod-Ricard S.A.,
4.45%, 1/15/22(1) (2)		2,890		3,196
SABMiller PLC,
6.50%, 7/1/16(1) (2)		2,125		2,494
				7,275
Chemicals - 0.5%
LyondellBasell Industries N.V.,
5.00%, 4/15/19		5,025		5,553
6.00%, 11/15/21		3,000		3,517
				9,070
Computers - 0.3%
Seagate HDD Cayman,
6.88%, 5/1/20		4,595		4,888

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 8.9% continued
Diversified Financial Services - 0.2%
Macquarie Group Ltd.,
7.30%, 8/1/14(1) (2)	$	3,570	$	3,851
Electric - 0.2%
PPL WEM Holdings PLC,
3.90%, 5/1/16(1) (2)		3,475		3,659
Insurance - 1.1%
Allied World Assurance Co. Ltd.,
7.50%, 8/1/16		6,700		7,916
5.50%, 11/15/20		2,070		2,295
XL Group PLC,
6.50%, 4/15/17		10,075		9,420
				19,631
Leisure Time - 0.5%
Carnival Corp.,
1.88%, 12/15/17		1,525		1,527
Royal Caribbean Cruises Ltd.,
6.88%, 12/1/13		7,220		7,536
				9,063
Media - 0.2%
Videotron Ltd.,
5.00%, 7/15/22		2,900		3,041
Mining - 0.7%
Anglo American Capital PLC,
2.63%, 9/27/17(1) (2)		2,160		2,204
Rio Tinto Finance USA PLC,
1.63%, 8/21/17		2,865		2,901
Teck Resources Ltd.,
3.00%, 3/1/19		1,880		1,938
3.75%, 2/1/23		1,955		2,005
Xstrata Finance Canada Ltd.,
2.45%, 10/25/17(1) (2)		2,325		2,348
4.00%, 10/25/22(1) (2)		875		884
				12,280
Miscellaneous Manufacturing - 0.4%
Bombardier, Inc.,
5.75%, 3/15/22(2)		4,435		4,557
Pentair Finance S.A.,
1.88%, 9/15/17(1) (2)		2,075		2,081
				6,638
Oil & Gas - 1.5%
BP Capital Markets PLC,
2.50%, 11/6/22		2,560		2,537
Ensco PLC,
3.25%, 3/15/16		2,940		3,118
Nexen, Inc.,
6.40%, 5/15/37		2,445		3,161
Petrobras International Finance Co.,
3.88%, 1/27/16		1,250		1,319
3.50%, 2/6/17		3,030		3,178
Petro-Canada,
6.05%, 5/15/18		960		1,167
Petroleos Mexicanos,
5.50%, 1/21/21		2,910		3,400
5.50%, 6/27/44(1) (2)		3,020		3,322
Transocean, Inc.,
5.05%, 12/15/16		4,350		4,843
				26,045
Oil & Gas Services - 0.7%
Schlumberger Investment S.A.,
1.25%, 8/1/17(1) (2)		2,800		2,792
Weatherford International Ltd.,
5.13%, 9/15/20		4,600		5,069
5.95%, 4/15/42		3,560		3,864
				11,725
Pipelines - 0.0%
TransCanada PipeLines Ltd.,
0.88%, 3/2/15		75		75
Telecommunications - 0.8%
America Movil S.A.B. de C.V.,
3.13%, 7/16/22		1,000		1,016
Intelsat Jackson Holdings S.A.,
7.25%, 10/15/20(1) (2)		4,665		5,062
Telefonaktiebolaget LM Ericsson,
4.13%, 5/15/22		3,725		3,871
Virgin Media Finance PLC,
5.25%, 2/15/22		2,610		2,767
Vodafone Group PLC,
1.25%, 9/26/17		1,580		1,575
				14,291

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 8.9% continued
Transportation - 0.3%
Kansas City Southern de Mexico S.A.de C.V.,
6.63%, 12/15/20	$	5,260	$	5,970
Total Foreign Issuer Bonds (Cost $147,840)				156,338
U.S. GOVERNMENT AGENCIES - 36.1% (3)
Fannie Mae - 31.5%
Pool #255498,
5.50%, 12/1/34		799		874
Pool #256883,
6.00%, 9/1/37		114		125
Pool #535714,
7.50%, 1/1/31		65		80
Pool #545003,
8.00%, 5/1/31		4		5
Pool #545437,
7.00%, 2/1/32		146		170
Pool #545556,
7.00%, 4/1/32		101		118
Pool #555189,
7.00%, 12/1/32		578		689
Pool #581806,
7.00%, 7/1/31		250		299
Pool #585617,
7.00%, 5/1/31		—		—
Pool #735893,
5.00%, 10/1/35		6,861		7,467
Pool #745148,
5.00%, 1/1/36		574		625
Pool #845182,
5.50%, 11/1/35		4,889		5,343
Pool #888538,
5.50%, 1/1/37		1,552		1,696
Pool #890009,
5.50%, 9/1/36		5,066		5,568
Pool #890384,
4.50%, 10/1/41		775		860
Pool #893082,
3.03%, 9/1/36		2,960		3,172
Pool #919638,
5.50%, 9/1/37		3,979		4,324
Pool #929035,
6.50%, 1/1/38		3,170		3,558
Pool #932638,
5.00%, 3/1/40		11,862		13,168
Pool #955782,
6.50%, 10/1/37		647		724
Pool #990702,
6.50%, 9/1/38		4,858		5,425
Pool #AA7583,
4.50%, 6/1/39		4,784		5,312
Pool #AB1470,
4.50%, 9/1/40		6,021		6,525
Pool #AB2693,
4.50%, 4/1/41		11,408		12,552
Pool #AB3114,
5.00%, 6/1/41		7,144		7,903
Pool #AC6767,
4.50%, 1/1/40		3,668		4,073
Pool #AC9581,
5.50%, 1/1/40		9,035		9,862
Pool #AD0915,
5.50%, 12/1/38		580		641
Pool #AD1645,
5.00%, 3/1/40		12,938		14,266
Pool #AD6929,
5.00%, 6/1/40		6,305		6,952
Pool #AE6371,
4.00%, 12/1/40		12,290		13,187
Pool #AE6415,
4.00%, 10/1/40		6,807		7,583
Pool #AH1166,
4.50%, 12/1/40		12,838		14,097
Pool #AH1507,
4.50%, 12/1/40		11,352		12,604
Pool #AH9109,
4.50%, 4/1/41		760		844
Pool #AI4294,
4.50%, 6/1/41		4,272		4,638
Pool #AI9518,
4.00%, 9/1/41		12,245		13,144
Pool #AJ0799,
4.00%, 9/1/41		818		892
Pool #AJ1713,
4.00%, 9/1/41		814		887
Pool #AJ4048,
4.00%, 10/1/41		9,464		10,211

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 36.1% (3) continued
Fannie Mae - 31.5% continued
Pool #AJ4467,
4.00%, 11/1/41	$	788	$	866
Pool #AJ5836,
4.00%, 11/1/41		1,043		1,146
Pool #AJ7686,
4.00%, 12/1/41		1,624		1,785
Pool #AL1895,
3.50%, 6/1/42		10,726		11,571
Pool #AO4135,
3.50%, 6/1/42		10,606		11,340
Pool #AO6996,
3.50%, 6/1/42		10,056		10,849
Pool #AO8717,
3.50%, 7/1/42		11,483		12,388
Pool #AP2427,
3.50%, 8/1/42		10,605		11,441
Pool #AP4514,
3.50%, 9/1/42		8,733		9,389
Pool #AP4515,
3.50%, 9/1/42		11,024		11,893
Pool #AP6598,
3.50%, 9/1/42		9,658		10,456
Pool TBA,
3.00%, 12/25/27(4)		50,350		52,647
5.00%, 1/1/34(4)		15,459		16,744
4.00%, 1/15/39(4)		83,205		89,185
4.50%, 12/31/40(4)		22,327		24,118
3.50%, 2/1/41(4)		73,680		78,415
				554,696
Freddie Mac - 0.9%
Pool #1B3575,
6.20%, 9/1/37		1,462		1,594
Pool #1G2296,
6.21%, 11/1/37		4,705		5,137
Pool #1J0365,
3.01%, 4/1/37		1,796		1,923
Pool #1J2840,
3.02%, 9/1/37		1,664		1,786
Pool #848076,
5.47%, 6/1/38		3,628		3,911
Series 3730, Class PL,
4.50%, 1/15/33		831		842
				15,193
Freddie Mac Gold - 2.9%
Pool #A65182,
6.50%, 9/1/37		6,813		7,754
Pool #A92650,
5.50%, 6/1/40		541		597
Pool #C00910,
7.50%, 1/1/30		562		685
Pool #C02790,
6.50%, 4/1/37		3,591		4,044
Pool #C02838,
5.50%, 5/1/37		4,899		5,360
Pool #C03517,
4.50%, 9/1/40		6,067		6,533
Pool #C03837,
3.50%, 4/1/42		21,104		22,894
Pool #G01954,
5.00%, 11/1/35		3,830		4,136
				52,003
Government National Mortgage Association - 0.4%
Series 2012-2, Class A,
1.86%, 6/16/31		6,591		6,720
Government National Mortgage Association II - 0.4%
Pool #82581,
4.00%, 7/20/40		6,650		7,154
Total U.S. Government Agencies (Cost $621,456)				635,766
U.S. GOVERNMENT OBLIGATIONS - 9.8%
U.S. Treasury Bonds - 1.8%
2.75%, 8/15/42		10,090		9,743
2.75%, 11/15/42		22,500		21,678
				31,421
U.S. Treasury Inflation Indexed Bonds - 2.7%
0.75%, 2/15/42		42,990		48,201
U.S. Treasury Notes - 5.3%
0.25%, 12/15/15		14,460		14,417
0.75%, 12/31/17		26,810		26,854
1.13%, 12/31/19		4,490		4,477
1.63%, 11/15/22		48,540		48,009
				93,757
Total U.S. Government Obligations (Cost $173,503)				173,379

FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
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	$	6,425	$	9,064
Total Municipal Bonds (Cost $6,425)				9,064
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 15.7%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(5) (6)		277,458,259	$	277,458
Total Investment Companies (Cost $277,458)				277,458
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.3%
U.S. Treasury Bill,
0.07%, 5/30/13(7)	$	4,300	$	4,298
Total Short-Term Investments (Cost $4,298)				4,298
Total Investments - 114.2% (Cost $1,940,818)				2,012,631
Liabilities less Other Assets - (14.2)%				(249,690	)
NET ASSETS - 100.0%			$	1,762,941

(1) Restricted security that has been deemed illiquid. At December 31, 2012, the value of these restricted illiquid securities amounted to approximately $138,726,000 or 7.9% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
AbbVie, Inc.,
2.90%, 11/6/22	11/5/12	$	2,464
AbbVie, Inc.,
4.40%, 11/6/42	11/05/12		1,677
Anglo American Capital PLC,
2.63%, 9/27/17	9/20/12-9/21/12		2,159
Ashland, Inc.,
4.75%, 8/15/22	8/2/12		1,935
CC Holdings GS V LLC,
2.38%, 12/15/17	12/11/12		1,575
Eaton Corp.,
1.50%, 11/2/17	11/14/12		1,493
Eaton Corp.,
4.00%, 11/2/32	11/14/12		1,720
ERAC USA Finance LLC,
7.00%, 10/15/37	10/10/07-9/29/11		4,726
Express Scripts Holding Co.,
3.90%, 2/15/22	2/06/12		3,460
FMR LLC,
6.45%, 11/15/39	1/6/10-5/24/12		8,191
General Motors Financial Co., Inc.,
4.75%, 8/15/17	8/13/12		4,455
HDTFS, Inc.,
5.88%, 10/15/20	10/01/12		2,635
Heineken N.V.,
1.40%, 10/1/17	10/2/12		1,585
Huntsman International LLC,
4.88%, 11/15/20	11/02/12		1,935
Hyatt Hotels Corp.,
6.88%, 8/15/19	8/10/09		5,093
Hyundai Capital America,
4.00%, 6/8/17	12/01/11		1,902
ING Bank N.V.,
2.00%, 10/18/13	10/13/10		1,078
Intelsat Jackson Holdings S.A.,
7.25%, 10/15/20	4/13/12		4,746
InterActiveCorp,
4.75%, 12/15/22	12/18/12		2,850
Kinder Morgan Finance Co. LLC,
6.00%, 1/15/18	4/14/11-9/29/11		4,810
Liberty Mutual Group, Inc.,
4.95%, 5/1/22	5/01/12		2,213
Linn Energy LLC/Linn Energy Finance Corp.,
6.25%, 11/1/19	2/28/12		6,339
Lloyds TSB Bank PLC,
6.50%, 9/14/20	9/07/10		4,215
Macquarie Group Ltd.,
7.30%, 8/1/14	12/14/10-12/15/10		3,871
Metropolitan Life Global Funding I,
2.50%, 9/29/15	9/22/10		1,949
News America, Inc.,
3.00%, 9/15/22	9/11/12		1,976
Nissan Motor Acceptance Corp.,
4.50%, 1/30/15	1/20/10-11/16/11		2,789
Pentair Finance S.A.,
1.88%, 9/15/17	9/10/12		2,072
Pernod-Ricard S.A.,
4.45%, 1/15/22	10/20/11-11/17/11		2,887

NORTHERN FUNDS QUARTERLY REPORT    11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

FIXED INCOME FUND continued

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
Petroleos Mexicanos,
5.50%, 6/27/44	10/12/12	$	3,350
PPL WEM Holdings PLC,
3.90%, 5/1/16	4/18/11		3,471
Reynolds Group Issuer, Inc./ Reynolds Group Issuer LLC/ Reynolds Group Issuer Lu,
5.75%, 10/15/20	12/20/12		1,846
Rock-Tenn Co.,
3.50%, 3/1/20	9/04/12		1,919
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		2,518
Samsung Electronics America, Inc.,
1.75%, 4/10/17	4/02/12		3,253
Schlumberger Investment S.A.,
1.25%, 8/1/17	7/24/12		2,797
TransDigm, Inc.,
5.50%, 10/15/20	10/10/12		3,500
United Rentals North America, Inc.,
5.75%, 7/15/18	2/24/12-2/27/12		5,052
URS Corp.,
5.00%, 4/1/22	3/08/12		2,997
Volkswagen International Finance N.V.,
1.60%, 11/20/17	11/13/12		3,722
WEA Finance LLC/WT Finance Aust Pty Ltd.,
3.38%, 10/3/22	9/24/12		2,992
Xstrata Finance Canada Ltd.,
2.45%, 10/25/17	10/18/12		2,321
Xstrata Finance Canada Ltd.,
4.00%, 10/25/22	10/18/12		873

(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 to 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 $61,839,000 during the nine months ended December 31, 2012.

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

At December 31, 2012, the Fixed Income Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS		NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
10 Year U.S.
Treasury
Note		(1,040)	$	138,093		Short		3/13	$	(179)
CME Ultra
Long Term
U.S. Treasury
Bond		(156)		25,365		Short		3/13		(292)
Total									$	(471)

At December 31, 2012, the quality distribution for the Fixed Income Fund was:

QUALITY DISTRIBUTION*	% OF LONG-TERM INVESTMENTS
US Agency		31.2	%
US Treasury		9.0
AAA		2.4
AA		0.8
A		9.3
BBB		20.3
BB		11.1
B		2.1
Cash Equivalents		13.8
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.

FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Asset-Backed Securities	$	—		$	54,474	(1)	$	—	$	54,474
Corporate Bonds		—			701,854	(1)		—		701,854
Foreign Issuer Bonds		—			156,338	(1)		—		156,338
U.S. Government Agencies		—			635,766	(1)		—		635,766
U.S. Government Obligations		—			173,379	(1)		—		173,379
Municipal Bonds		—			9,064			—		9,064
Investment Companies	$	277,458		$	—		$	—	$	277,458
Short-Term Investments		—			4,298			—		4,298
Total Investments	$	277,458		$	1,735,173		$	—	$	2,012,631
OTHER FINANCIAL INSTRUMENTS
Liabilities
Futures Contracts	$	(471	)	$	—		$	—	$	(471	)

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,942,627
Gross tax appreciation of investments	$	74,329
Gross tax depreciation of investments		(4,325	)
Net tax appreciation of investments	$	70,004

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.

The interest rates reflected in the Schedule of Investments represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, the current reset rate for floating rate securities, the 7-day for money market funds 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    13    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL FIXED INCOME FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S) (1)		VALUE (000S)
DEBT OBLIGATIONS - 89.6%
Australian Dollar - 0.8%
Government of Australia,
5.75%, 5/15/21	$	59	$	73
British Pound Sterling - 8.0%
Treasury of Great Britain,
2.25%, 3/7/14		119		197
4.75%, 12/7/30		226		481
				678
Canadian Dollar - 1.7%
Government of Canada,
3.25%, 6/1/21		128		144
Danish Krone - 0.7%
Government of Denmark,
3.00%, 11/15/21		276		57
Euro - 28.4%
Bundesobligation,
2.50%, 10/10/14		102		140
Buoni Poliennali Del Tesoro,
3.50%, 6/1/14		73		98
3.75%, 8/1/21		388		501
Deutschland Bundesrepublik,
2.25%, 9/4/21		314		454
French Treasury Note,
2.00%, 7/12/15		264		365
Government of Belgium,
4.50%, 3/28/26		78		127
Government of France Bond O.A.T.,
2.75%, 10/25/27		208		283
Government of Netherlands,
4.00%, 7/15/16(2)		40		60
3.75%, 1/15/23(2)		69		109
Government of Spain,
4.10%, 7/30/18		215		281
				2,418
Japanese Yen - 21.2%
Government of Japan Ten Year Bonds,
1.50%, 9/20/15		69,850		837
Government of Japan Thirty Year Bonds,
2.50%, 9/20/36		25,550		331
Government of Japan Twenty Year Bonds,
1.80%, 6/20/23		50,450		638
				1,806
United States Dollar - 28.8%
U.S. Treasury Bonds,
4.50%, 2/15/36		474		623
U.S. Treasury Notes,
0.75%, 6/15/14		820		827
2.00%, 2/15/22		962		995
				2,445
Total Debt Obligations (Cost $7,502)				7,621
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 0.6%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(3) (4)		48,231	$	48
Total Investment Companies (Cost $48)				48
Total Investments - 90.2% (Cost $7,550)				7,669
Other Assets less Liabilities - 9.8%				831
NET ASSETS - 100.0%			$	8,500

(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 traded 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 an 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 sales of approximately $282,000 during the nine months ended December 31, 2012.

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

GLOBAL FIXED INCOME FUND continued DECEMBER 31, 2012 (UNAUDITED)

At December 31, 2012, the quality distribution for the Global Fixed Income Fund was:

QUALITY DISTRIBUTION*	% OF LONG-TERM INVESTMENTS
U.S. Treasury		31.9	%
AAA		22.4
AA		25.3
A		8.3
BBB		11.5
Cash Equivalents		0.6
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). 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.

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, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Debt Obligations	$	—	$	7,621	(1)	$	—	$	7,621
Investment Companies		48		—			—		48
Total Investments	$	48	$	7,621		$	—	$	7,669

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	7,550
Gross tax appreciation of investments	$	189
Gross tax depreciation of investments		(70	)
Net tax appreciation of investments	$	119

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.

The interest rates represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds 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.

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 79.4%
Auto Parts & Equipment - 2.0%
American Axle & Manufacturing, Inc.,
6.63%, 10/15/22	$	29,650	$	30,095
Goodyear Tire & Rubber (The) Co.,
8.25%, 8/15/20		25,133		27,583
Meritor, Inc.,
10.63%, 3/15/18		5,856		6,105
Pittsburgh Glass Works LLC,
8.50%, 4/15/16(1)		23,900		21,988
UCI International, Inc.,
8.63%, 2/15/19		29,818		29,557
				115,328
Chemicals - 1.3%
Huntsman International LLC,
8.63%, 3/15/20		27,375		31,002
JM Huber Corp.,
9.88%, 11/1/19(1)		18,055		20,041
Tronox Finance LLC,
6.38%, 8/15/20(1)		27,475		27,750
				78,793
Coal - 0.4%
SunCoke Energy, Inc.,
7.63%, 8/1/19		19,705		20,296
Commercial Services - 4.9%
313 Group, Inc.,
6.38%, 12/1/19(1)		27,375		27,135
Alliance Data Systems Corp.,
6.38%, 4/1/20(1)		27,700		29,500
Brickman Group Holdings, Inc.,
9.13%, 11/1/18(1)		23,169		24,269
Lender Processing Services, Inc.,
5.75%, 4/15/23		36,155		37,511
Monitronics International, Inc.,
9.13%, 4/1/20		27,875		28,711
Neff Rental LLC/Neff Finance Corp.,
9.63%, 5/15/16(1)		19,046		19,713
NESCO LLC/NESCO Holdings Corp.,
11.75%, 4/15/17(1)		15,000		16,125
Service Corp. International,
7.50%, 4/1/27		28,729		30,884
ServiceMaster Co.,
8.00%, 2/15/20		29,643		30,903
Sunstate Equipment Co. LLC/Sunstate Equipment Co., Inc.,
12.00%, 6/15/16(1) (2)		10,575		11,395
TransUnion Holding Co., Inc.,
9.63%, 6/15/18		31,210		33,005
				289,151
Computers - 1.0%
NCR Corp.,
5.00%, 7/15/22(1)		29,175		29,649
SunGard Data Systems, Inc.,
6.63%, 11/1/19(1)		28,550		29,192
				58,841
Distribution/Wholesale - 0.4%
American Tire Distributors, Inc.,
9.75%, 6/1/17		19,525		20,696
Diversified Financial Services - 2.9%
CNG Holdings, Inc.,
9.38%, 5/15/20(1)		35,300		35,830
Community Choice Financial, Inc.,
10.75%, 5/1/19		10,150		9,769
E*TRADE Financial Corp.,
6.00%, 11/15/17		30,375		31,058
Nationstar Mortgage LLC/Nationstar Capital Corp.,
9.63%, 5/1/19(1)		23,520		26,460
9.63%, 5/1/19(1)		15,025		16,828
PHH Corp.,
7.38%, 9/1/19		30,025		33,328
Speedy Cash Intermediate Holdings Corp.,
10.75%, 5/15/18(1)		17,405		18,536
				171,809
Electric - 1.9%
AES Corp.,
7.38%, 7/1/21		35,506		39,412
Calpine Corp.,
7.50%, 2/15/21(1)		15,095		16,680
7.88%, 1/15/23(1)		20,628		23,310
Covanta Holding Corp.,
6.38%, 10/1/22		28,935		31,422
				110,824

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 79.4% continued
Electrical Components & Equipment - 0.3%
GrafTech International Ltd.,
6.38%, 11/15/20(1)	$	17,600	$	18,238
Electronics - 1.0%
Sanmina-SCI Corp.,
7.00%, 5/15/19(1)		27,985		28,545
Viasystems, Inc.,
7.88%, 5/1/19(1)		31,418		30,789
				59,334
Entertainment - 0.6%
National CineMedia LLC,
7.88%, 7/15/21		29,528		32,702
Environmental Control - 1.7%
ADS Waste Holdings, Inc.,
8.25%, 10/1/20(1)		28,850		30,292
Casella Waste Systems, Inc.,
7.75%, 2/15/19		36,455		34,632
7.75%, 2/15/19(1)		13,345		12,678
Clean Harbors, Inc.,
5.13%, 6/1/21(1)		23,400		24,219
				101,821
Food - 2.7%
BI-LO LLC/BI-LO Finance Corp.,
9.25%, 2/15/19(1)		29,890		31,982
Land O’ Lakes, Inc.,
6.00%, 11/15/22(1)		30,300		32,800
Michael Foods Holding, Inc.,
8.50%, 7/15/18(1)		28,350		28,917
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp.,
8.25%, 9/1/17(1)		5,600		5,964
Tops Holding Corp./Tops Markets LLC,
8.88%, 12/15/17(1)		30,300		31,436
US Foods, Inc.,
8.50%, 6/30/19(1)		29,127		29,710
				160,809
Forest Products & Paper - 1.3%
P.H. Glatfelter Co.,
5.38%, 10/15/20(1)		33,650		34,491
Verso Paper Holdings LLC/Verso Paper, Inc.,
11.75%, 1/15/19		40,800		42,840
				77,331
Gaming - 2.2%
Isle of Capri Casinos, Inc.,
8.88%, 6/15/20		27,575		30,057
Rivers Pittsburgh Borrower L.P./Rivers Pittsburgh Finance Corp.,
9.50%, 6/15/19(1)		26,591		28,851
ROC Finance LLC/ROC Finance 1 Corp.,
12.13%, 9/1/18(1)		32,605		37,659
Station Casinos LLC,
3.66%, 6/18/18		37,440		32,198
				128,765
Hand/Machine Tools - 0.4%
Thermadyne Holdings Corp.,
9.00%, 12/15/17		24,580		26,178
Healthcare - Products - 0.5%
Biomet, Inc.,
6.50%, 8/1/20(1)		29,725		31,583
Healthcare - Services - 3.6%
American Renal Associates Holdings, Inc.,
9.75%, 3/1/16		31,308		33,030
Amsurg Corp.,
5.63%, 11/30/20(1)		16,600		17,264
CDRT Holding Corp.,
9.25%, 10/1/17(1) (2)		23,925		24,404
HCA, Inc.,
7.50%, 2/15/22		12,444		14,248
HealthSouth Corp.,
8.13%, 2/15/20		30,133		33,184
MultiPlan, Inc.,
9.88%, 9/1/18(1)		26,575		29,631
Tenet Healthcare Corp.,
6.88%, 11/15/31		44,856		40,370
United Surgical Partners International, Inc.,
9.00%, 4/1/20		17,472		19,394
				211,525
Home Builders - 0.8%
Beazer Homes USA, Inc.,
6.88%, 7/15/15		28,525		28,596
Meritage Homes Corp.,
7.15%, 4/15/20		18,629		20,399
				48,995

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 79.4% continued
Household Products/Wares - 0.5%
American Greetings Corp.,
7.38%, 12/1/21	$	29,885	$	30,707
Insurance - 1.8%
A-S Co-Issuer Subsidiary, Inc./A-S Merger Sub LLC,
7.88%, 12/15/20(1)		30,575		30,575
CNO Financial Group, Inc.,
6.38%, 10/1/20(1)		31,450		32,708
Hub International Ltd.,
8.13%, 10/15/18(1)		30,720		31,488
Onex USI Aquisition Corp.,
7.75%, 1/15/21(1)		14,200		13,987
				108,758
Iron/Steel - 0.7%
Ryerson, Inc./Joseph T Ryerson & Son, Inc.,
9.00%, 10/15/17(1)		23,800		24,276
11.25%, 10/15/18(1)		20,000		18,400
				42,676
Lodging - 1.2%
Caesars Entertainment Operating Co., Inc.,
11.25%, 6/1/17		20,279		21,724
Caesars Operating Escrow LLC/Caesars Escrow Corp.,
9.00%, 2/15/20(1)		14,225		14,225
MGM Resorts International,
8.63%, 2/1/19(1)		29,775		33,199
				69,148
Media - 6.3%
Bresnan Broadband Holdings LLC,
8.00%, 12/15/18(1)		29,273		31,615
CCO Holdings LLC/CCO Holdings Capital Corp.,
5.25%, 9/30/22		28,350		28,704
Cequel Communications Holdings I LLC/Cequel Capital Corp.,
6.38%, 9/15/20(1)		30,350		31,602
Gray Television, Inc.,
7.50%, 10/1/20(1)		29,300		29,959
Harron Communications L.P./Harron Finance Corp.,
9.13%, 4/1/20(1)		31,445		34,432
Hughes Satellite Systems Corp.,
7.63%, 6/15/21		27,228		30,972
McClatchy (The) Co.,
9.00%, 12/15/22(1)		38,875		39,701
Mediacom Broadband LLC/Mediacom Broadband Corp.,
6.38%, 4/1/23(1)		12,175		12,388
Mediacom LLC/Mediacom Capital Corp.,
7.25%, 2/15/22		14,194		15,259
Starz LLC/Starz Finance Corp.,
5.00%, 9/15/19(1)		26,650		27,316
Sterling Entertainment Enterprises LLC,
9.75%, 12/15/19(1) (3)		23,800		23,800
Townsquare Radio LLC/Townsquare Radio, Inc.,
9.00%, 4/1/19(1)		28,220		30,972
Univision Communications, Inc.,
8.50%, 5/15/21(1)		34,307		35,422
				372,142
Miscellaneous Manufacturing - 0.6%
Park-Ohio Industries, Inc.,
8.13%, 4/1/21		32,250		34,266
Oil & Gas - 6.7%
Antero Resources Finance Corp.,
6.00%, 12/1/20(1)		28,475		28,831
BreitBurn Energy Partners L.P./BreitBurn Finance Corp.,
8.63%, 10/15/20		26,640		29,038
Clayton Williams Energy, Inc.,
7.75%, 4/1/19		22,210		22,127
EPE Holdings LLC/EP Energy Bond Co., Inc.,
8.75%, 12/15/17(1)		26,350		26,120
Forest Oil Corp.,
7.50%, 9/15/20(1)		31,425		32,996
Laredo Petroleum, Inc.,
9.50%, 2/15/19		27,850		31,122
Linn Energy LLC/Linn Energy Finance Corp.,
8.63%, 4/15/20		30,023		32,725
Northern Oil and Gas, Inc.,
8.00%, 6/1/20		28,800		29,376
Oasis Petroleum, Inc.,
7.25%, 2/1/19		27,358		29,410
Plains Exploration & Production Co.,
6.50%, 11/15/20		20,625		22,842

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 79.4% continued
Oil & Gas - 6.7% continued
QEP Resources, Inc.,
5.25%, 5/1/23	$	23,675	$	25,332
Swift Energy Co.,
7.88%, 3/1/22(1)		12,425		12,984
Unit Corp.,
6.63%, 5/15/21		24,739		25,388
Vanguard Natural Resources LLC/VNR Finance Corp.,
7.88%, 4/1/20		25,980		27,149
WPX Energy, Inc.,
6.00%, 1/15/22		21,909		23,607
				399,047
Oil & Gas Services - 1.0%
Chesapeake Oilfield Operating LLC/Chesapeake Oilfield Finance, Inc.,
6.63%, 11/15/19(1)		33,596		31,664
Dresser-Rand Group, Inc.,
6.50%, 5/1/21		25,480		27,009
				58,673
Oil Refining & Marketing - 1.5%
Citgo Petroleum Corp.,
11.50%, 7/1/17(1)		32,039		37,005
PBF Holding Co. LLC/PBF Finance Corp.,
8.25%, 2/15/20(1)		28,300		30,493
Tesoro Corp.,
5.38%, 10/1/22		20,325		21,646
				89,144
Packaging & Containers - 1.9%
Berry Plastics Corp.,
9.50%, 5/15/18		28,370		31,207
Exopack Holding Corp.,
10.00%, 6/1/18		30,735		27,815
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu,
9.00%, 4/15/19		20,325		21,138
Tekni-Plex, Inc.,
9.75%, 6/1/19(1)		29,150		31,774
				111,934
Pharmaceuticals - 1.1%
Alvogen Pharma US, Inc.,
10.50%, 3/15/19(1) (3)		14,375		14,519
Jaguar Holding Co. I,
9.38%, 10/15/17(1)		17,600		18,480
JPR Royalty Sub LLC,
14.00%, 12/1/20(1) (3)		8,000		8,000
Sky Growth Acquisition Corp.,
7.38%, 10/15/20(1)		24,378		24,256
				65,255
Pipelines - 4.8%
Access Midstream Partners L.P./ACMP Finance Corp.,
6.13%, 7/15/22		28,258		30,448
4.88%, 5/15/23		9,450		9,592
Atlas Pipeline Partners L.P./Atlas Pipeline Finance Corp.,
6.63%, 10/1/20(1)		28,995		30,010
Crosstex Energy L.P./Crosstex Energy Finance Corp.,
7.13%, 6/1/22(1)		29,320		30,566
Energy Transfer Equity L.P.,
7.50%, 10/15/20		26,685		30,821
Genesis Energy L.P./Genesis Energy Finance Corp.,
7.88%, 12/15/18		26,743		28,548
Holly Energy Partners L.P./Holly Energy Finance Corp.,
8.25%, 3/15/18		31,705		34,479
Inergy Midstream L.P./NRGM Finance Corp.,
6.00%, 12/15/20(1)		28,350		29,271
Martin Midstream Partners L.P./Martin Midstream Finance Corp.,
8.88%, 4/1/18		27,468		29,254
Targa Resources Partners L.P./Targa Resources Partners Finance Corp.,
7.88%, 10/15/18		20,775		22,749
6.88%, 2/1/21		9,178		10,050
				285,788
Real Estate Investment Trusts - 1.5%
EPR Properties,
7.75%, 7/15/20		24,550		28,373
5.75%, 8/15/22		14,175		14,698
Felcor Lodging L.P.,
5.63%, 3/1/23(1)		28,850		28,706
Senior Housing Properties Trust,
6.75%, 12/15/21		14,980		17,275
				89,052

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 79.4% continued
Retail - 8.3%
99 Cents Only Stores,
11.00%, 12/15/19	$	30,902	$	35,228
Carrols Restaurant Group, Inc.,
11.25%, 5/15/18(1)		21,925		24,008
CKE, Inc.,
10.50%, 3/14/16(1) (2)		30,935		32,791
Fiesta Restaurant Group, Inc.,
8.88%, 8/15/16		26,655		28,488
Jo-Ann Stores Holdings, Inc.,
9.75%, 10/15/19(1)		23,095		23,297
Jo-Ann Stores, Inc.,
8.13%, 3/15/19(1)		19,715		20,060
Landry’s Holdings II, Inc.,
10.25%, 1/1/18(1)		14,200		14,129
Landry’s, Inc.,
9.38%, 5/1/20(1)		15,900		16,774
New Academy Finance Co. LLC/New Academy Finance Corp.,
8.00%, 6/15/18(1)		28,350		28,704
NPC International, Inc./NPC Operating Co. A, Inc./NPC Operating Co. B, Inc.,
10.50%, 1/15/20		29,650		34,394
Pantry (The) Inc.,
8.38%, 8/1/20(1)		34,595		36,152
Party City Holdings, Inc.,
8.88%, 8/1/20(1)		35,100		37,645
Penske Automotive Group, Inc.,
5.75%, 10/1/22(1)		28,289		29,138
Petco Holdings, Inc.,
8.50%, 10/15/17(1)		33,825		34,755
Rite Aid Corp.,
10.38%, 7/15/16		15,140		16,011
9.25%, 3/15/20		23,100		24,601
Sally Holdings LLC/Sally Capital, Inc.,
5.75%, 6/1/22		18,150		19,693
Sonic Automotive, Inc.,
9.00%, 3/15/18		19,765		21,692
7.00%, 7/15/22(1)		13,400		14,673
				492,233
Software - 2.5%
Epicor Software Corp.,
8.63%, 5/1/19		27,965		29,363
First Data Corp.,
7.38%, 6/15/19(1)		29,700		30,740
Infor US, Inc.,
11.50%, 7/15/18		27,132		31,744
Nuance Communications, Inc.,
5.38%, 8/15/20(1)		25,450		26,595
Sophia L.P./Sophia Finance, Inc.,
9.75%, 1/15/19(1)		28,641		30,861
				149,303
Telecommunications - 6.7%
Clearwire Communications LLC/Clearwire Finance, Inc.,
12.00%, 12/1/15(1)		33,630		36,152
CPI International, Inc.,
8.00%, 2/15/18		16,825		16,426
Crown Castle International Corp.,
5.25%, 1/15/23(1)		32,375		34,641
EarthLink, Inc.,
8.88%, 5/15/19		34,300		35,929
Frontier Communications Corp.,
9.00%, 8/15/31		40,290		44,319
GCI, Inc.,
8.63%, 11/15/19		34,605		36,768
Level 3 Financing, Inc.,
8.63%, 7/15/20		28,125		31,219
Qwest Capital Funding, Inc.,
7.75%, 2/15/31		38,290		40,104
SBA Communications Corp.,
5.63%, 10/1/19(1)		15,925		16,721
SBA Telecommunications, Inc.,
5.75%, 7/15/20(1)		17,948		19,070
Sprint Nextel Corp.,
9.00%, 11/15/18(1)		20,875		25,781
West Corp.,
8.63%, 10/1/18		26,735		28,005
Windstream Corp.,
8.13%, 9/1/18		28,880		31,551
				396,686
Transportation - 2.0%
ACL I Corp.,
10.63%, 2/15/16(2)		25,930		26,189
Florida East Coast Holdings Corp.,
10.50%, 8/1/17		12,526		12,401
Florida East Coast Railway Corp.,
8.13%, 2/1/17		22,450		23,797

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 79.4% continued
Transportation - 2.0% continued
Kenan Advantage Group (The), Inc.,
8.38%, 12/15/18(1)	$	28,425	$	28,994
Quality Distribution LLC/QD Capital Corp.,
9.88%, 11/1/18		26,290		28,393
				119,774
Trucking & Leasing - 0.4%
Air Lease Corp.,
7.38%, 1/30/19(1) (3)		24,000		24,960
Total Corporate Bonds (Cost $4,514,033)				4,702,565
FOREIGN ISSUER BONDS - 17.6%
Aerospace/Defense - 0.5%
Bombardier, Inc.,
7.45%, 5/1/34(1)		29,916		30,440
Aluminum - 0.4%
Novelis, Inc.,
8.75%, 12/15/20		23,039		25,689
Banks - 1.0%
Barclays Bank PLC,
7.63%, 11/21/22		26,375		26,342
Royal Bank of Scotland Group PLC,
7.64%, 3/29/49		33,350		30,015
				56,357
Chemicals - 0.4%
Ineos Finance PLC,
7.50%, 5/1/20(1)		23,700		24,826
Computers - 0.6%
MMI International Ltd.,
8.00%, 3/1/17(1)		32,205		34,137
Food - 0.4%
JBS Finance II Ltd.,
8.25%, 1/29/18(1)		22,825		24,195
Forest Products & Paper - 0.5%
Sappi Papier Holding GmbH,
7.75%, 7/15/17(1)		13,225		14,415
8.38%, 6/15/19(1)		14,100		15,405
				29,820
Home Builders - 0.2%
Mattamy Group Corp.,
6.50%, 11/15/20(1)		12,065		12,095
Iron/Steel - 0.5%
Ferrexpo Finance PLC,
7.88%, 4/7/16(1)		31,625		30,676
Machinery - Construction & Mining - 0.3%
Boart Longyear Management Pty Ltd.,
7.00%, 4/1/21(1)		17,335		17,595
Machinery - Diversified - 0.5%
Dematic S.A./DH Services Luxembourg Sarl,
7.75%, 12/15/20(1)		4,750		4,750
Mirror PIK S.A.,
9.00%, 11/1/16(1)		26,425		26,689
				31,439
Media - 2.4%
Intelsat Luxembourg S.A.,
11.25%, 2/4/17		27,235		28,801
11.50%, 2/4/17(2)		14,351		15,248
Nara Cable Funding Ltd.,
8.88%, 12/1/18(1)		32,850		33,425
Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH,
7.50%, 3/15/19(1)		27,105		29,815
Virgin Media Finance PLC,
4.88%, 2/15/22		30,400		31,084
				138,373
Mining - 0.9%
New Gold, Inc.,
6.25%, 11/15/22(1)		22,475		23,261
Vedanta Resources PLC,
9.50%, 7/18/18(1)		27,150		31,326
				54,587
Oil & Gas - 1.3%
Kodiak Oil & Gas Corp.,
8.13%, 12/1/19		25,550		28,169
OGX Austria GmbH,
8.50%, 6/1/18(1)		19,800		17,820
PetroBakken Energy Ltd.,
8.63%, 2/1/20(1)		29,000		29,435
				75,424

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 17.6% continued
Oil & Gas Services - 0.8%
Offshore Group Investment Ltd.,
7.50%, 11/1/19(1)	$	19,025	$	19,215
Seadrill Ltd.,
5.63%, 9/15/17(1)		30,500		30,272
				49,487
Pharmaceuticals - 0.5%
Warner Chilcott Co. LLC/Warner Chilcott Finance LLC,
7.75%, 9/15/18		27,880		29,692
Telecommunications - 3.5%
Columbus International, Inc.,
11.50%, 11/20/14(1)		29,590		32,845
Digicel Group Ltd.,
8.25%, 9/30/20(1)		30,450		33,495
Eileme 1 AB,
14.25%, 8/15/20(1)		17,278		18,617
Eileme 2 AB,
11.63%, 1/31/20(1)		23,225		27,057
Sable International Finance Ltd.,
8.75%, 2/1/20(1)		28,380		32,495
Telemovil Finance Co. Ltd.,
8.00%, 10/1/17(1)		29,200		31,463
Wind Acquisition Finance S.A.,
11.75%, 7/15/17(1)		26,540		27,801
				203,773
Transportation - 1.3%
Navios Maritime Acquisition Corp./Navios Acquisition Finance US, Inc.,
8.63%, 11/1/17		31,730		29,747
Navios Maritime Holdings, Inc./Navios Maritime Finance US, Inc.,
8.88%, 11/1/17		25,250		25,187
Navios South American Logistics, Inc./Navios Logistics Finance US, Inc.,
9.25%, 4/15/19		22,475		22,053
				76,987
Trucking & Leasing - 1.6%
AerCap Aviation Solutions B.V.,
6.38%, 5/30/17		26,355		27,673
Aircastle Ltd.,
6.75%, 4/15/17		19,959		21,356
6.25%, 12/1/19(1)		18,950		19,755
AWAS Aviation Capital Ltd.,
7.00%, 10/17/16(1)		26,559		28,020
				96,804
Total Foreign Issuer Bonds (Cost $995,563)				1,042,396
	NUMBER OF SHARES		VALUE (000S)
PREFERRED STOCKS - 0.8%
Banks - 0.4%
Santander Finance Preferred S.A.U.		947,000	$	25,540
Diversified Financial Services - 0.4%
GMAC Capital Trust I		905,850		24,141
Total Preferred Stocks (Cost $47,913)				49,681
INVESTMENT COMPANIES - 0.2%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(4) (5)		9,888,700	$	9,889
Total Investment Companies (Cost $9,889)				9,889
Total Investments - 98.0% (Cost $5,567,398)				5,804,531
Other Assets less Liabilities - 2.0%				116,328
NET ASSETS - 100.0%			$	5,920,859

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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) Security is payment in-kind bond.

(3) Restricted security that has been deemed illiquid. At December 31, 2012, the value of these restricted illiquid securities amounted to approximately $117,545,000 or 2.0% 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

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD FIXED INCOME FUND continued

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
JPR Royalty Sub LLC,
14.00%, 12/1/20	3/10/11		8,000
Sterling Entertainment
Enterprises LLC,
9.75%, 12/15/19	12/28/12		23,800

(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 $202,798,000 with net sales of approximately $192,909,000 during the nine months ended December 31, 2012.

At December 31, 2012, the quality distribution for High Yield Fixed Income Fund was:

QUALITY DISTRIBUTION*	% OF LONG TERM INVESTMENTS
BBB		2.2	%
BB		23.6
B		42.0
CCC		29.7
Not rated		2.3
Cash Equivalents		0.2
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.

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 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 High Yield Fixed Income Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Corporate Bonds
Auto Parts & Equipment	$	—	$	115,328	$	—	$	115,328
Chemicals		—		78,793		—		78,793
Coal		—		20,296		—		20,296
Commercial Services		—		289,151		—		289,151
Computers		—		58,841		—		58,841
Distribution/Wholesale		—		20,696		—		20,696
Diversified Financial Services		—		171,809		—		171,809
Electric		—		110,824		—		110,824
Electrical Components & Equipments		—		18,238		—		18,238
Electronics		—		59,334		—		59,334
Entertainment		—		32,702		—		32,702
Environmental Control		—		101,821		—		101,821
Food		—		160,809		—		160,809
Forest Products & Paper		—		77,331		—		77,331
Gaming		—		128,765		—		128,765
Hand/Machine Tools		—		26,178		—		26,178
Healthcare - Products		—		31,583		—		31,583
Healthcare - Services		—		211,525		—		211,525
Home Builders		—		48,995		—		48,995
Household Products/Wares		—		30,707		—		30,707
Insurance		—		108,758		—		108,758
Iron/Steel		—		42,676		—		42,676
Lodging		—		69,148		—		69,148
Media		—		348,342		23,800		372,142
Miscellaneous Manufacturing		—		34,266		—		34,266
Oil & Gas		—		399,047		—		399,047
Oil & Gas Services		—		58,673		—		58,673
Oil Refining & Marketing		—		89,144		—		89,144
Packaging & Containers		—		111,934		—		111,934
Pharmaceuticals		—		42,736		22,519		65,255
Pipelines		—		285,788		—		285,788
Real Estate Investment Trusts		—		89,052		—		89,052
Retail		—		492,233		—		492,233
Software		—		149,303		—		149,303
Telecommunications		—		396,686		—		396,686
Transportation		—		119,774		—		119,774
Trucking & Leasing		—		24,960		—		24,960

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Foreign Issuer Bonds	$	—		$	1,042,396	(1)	$	—	$	1,042,396
Preferred Stocks		49,681	(1)		—			—		49,681
Investment Companies		9,889			—			—		9,889
Total Investments	$	59,570		$	5,698,642		$	46,319	$	5,804,531

(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 December 31, 2012, there were transfers from Level 3 to Level 2 of $24,960,000 due to a security having an evaluated price based on observable inputs from a single pricing vendor. 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 APPRECIA- TION (000S)		CHANGE IN UNREALIZED DEPRECIA- TION (000S)		PURCHASES (000S)		SALES (000S)			TRANSFERS INTO LEVEL 3 (000S)		TRANSFERS OUT OF LEVEL 3 (000S)(1)			BALANCE AS OF 12/31/12 (000S)
Corporate
Bonds
Media	$	—	$	—	$	—		$	—	$	—	$	23,800	$	—		$	—	$	—		$	23,800
Pharmaceuticals		22,375		—		—			144		—		—		—			—		—			22,519
Trucking & Leasing		24,480		—		—			480		—		—		—			—		(24,960	)		—
Foreign Issuer
Bonds
Media		14,319		—		(3,466	)		2,020		—		—		(12,873	)		—		—			—
Total	$	61,174	$	—	$	(3,466	)	$	2,644	$	—	$	23,800	$	(12,873	)	$	—	$	(24,960	)	$	46,319

(1) Transferred out of Level 3 due to a security having an evaluated price based on observable inputs from a single pricing vendor

The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at December 31, 2012 was approximately $144, which is included in the Statement of Operations as part of the net change in unrealized appreciation (depreciation) on investments.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	5,571,578
Gross tax appreciation of investments	$	254,640
Gross tax depreciation of investments		(21,687	)
Net tax appreciation of investments	$	232,953

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.

The interest rates represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds or, for interest-only or principal-only securities, the current effective yield.

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

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE U.S. GOVERNMENT FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 58.4% (1)
Fannie Mae - 46.3%
0.50%, 11/27/15	$	19,040	$	19,059
Pool #555649,
7.50%, 10/1/32		138		168
Pool #745148,
5.00%, 1/1/36		4,040		4,398
Pool #893082,
3.03%, 9/1/36		1,096		1,175
Pool #AB6019,
3.50%, 8/1/42		5,879		6,286
Pool #AH1166,
4.50%, 12/1/40		3,053		3,352
Pool #AL1895,
3.50%, 6/1/42		5,919		6,386
Pool #AO8179,
3.50%, 9/1/42		5,666		6,058
Pool #AP2427,
3.50%, 8/1/42		5,988		6,460
Pool #AP2824,
3.50%, 7/1/42		5,858		6,263
Pool #AP4514,
3.50%, 9/1/42		6,026		6,478
Pool #AP6598,
3.50%, 9/1/42		2,888		3,127
Pool TBA,
4.00%, 1/15/40(2)		24,025		25,752
4.50%, 1/15/40(2)		9,375		10,127
5.00%, 12/31/40(2)		570		617
3.00%, 12/31/49(2)		22,765		23,804
Series 2007, Class 26C,
5.50%, 3/25/33		1,443		1,469
				130,979
Freddie Mac - 7.1%
3.00%, 7/28/14		50		52
1.25%, 5/12/17		10,705		10,953
Pool #1J0365,
3.01%, 4/1/37		722		773
Pool #1J2840,
3.02%, 9/1/37		1,458		1,564
Pool #1Q0323,
2.78%, 5/1/37		3,067		3,269
Pool #410092,
2.29%, 11/1/24		15		16
Series 3730, Class PL,
4.50%, 1/15/33		3,423		3,469
				20,096
Government National Mortgage Association - 3.4%
Series 2010, Class 141A,
1.86%, 8/16/31		275		279
Series 2011, Class 31A,
2.21%, 12/16/35		3,200		3,267
Series 2011, Class 49A,
2.45%, 7/16/38		3,179		3,276
Series 2011, Class 49AB,
2.80%, 1/16/34		2,515		2,592
				9,414
Government National Mortgage Association II - 1.6%
Pool #82581,
4.00%, 7/20/40		4,263		4,587
Total U.S. Government Agencies (Cost $163,582)				165,076
U.S. GOVERNMENT OBLIGATIONS - 36.8%
U.S. Treasury Inflation Indexed Notes - 4.4%
2.00%, 1/15/14		2,480		3,204
1.25%, 4/15/14		2,735		3,082
1.63%, 1/15/15		2,395		3,083
0.50%, 4/15/15		2,780		3,096
				12,465
U.S. Treasury Notes - 32.4%
0.25%, 12/15/15		69,635		69,428
0.75%, 12/31/17		22,170		22,207
				91,635
Total U.S. Government Obligations (Cost $104,108)				104,100
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 25.3%
Northern Institutional Funds - U.S. Government Portfolio, 0.01%(3) (4)		71,452,382	$	71,452
Total Investment Companies (Cost $71,452)				71,452

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE U.S. GOVERNMENT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.7%
U.S. Treasury Bill,
0.14%, 5/30/13(5)	$	2,000	$	1,999
Total Short-Term Investments (Cost $1,999)				1,999
Total Investments - 121.2% (Cost $341,141)				342,627
Liabilities less Other Assets - (21.2)%				(59,825	)
NET ASSETS - 100.0%			$	282,802

(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 $155,553,000 with net sales of approximately $ 84,101,000 during the nine months ended December 31, 2012.

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

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

At December 31, 2012, the Short - Intermediate U.S. Government Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS			NOTIONAL AMOUNT (000S)			CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAIN/LOSS (000S)
10 Year
U.S. Treasury
Note		(259	)	$	(34,390	)		Short		3/13	$	15
5 Year
U.S. Treasury
Note		135			16,796			Long		3/13		8
Total											$	23

At December 31, 2012, the quality distribution for the Short-Intermediate U.S. Government Fund was:

QUALITY DISTRIBUTION*	% OF LONG-TERM INVESTMENTS
U.S. Treasury		33.7	%
U.S. Agency		45.4	%
Cash Equivalents		20.9	%
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). 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 and 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.

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).

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 Short-Intermediate U.S. Government Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
U.S. Government Agencies	$	—	$	165,076	(1)	$	—	$	165,076
U.S. Government Obligations		—		104,100	(1)		—		104,100
Investment Companies		71,452		—			—		71,452
Short-Term Investments		—		1,999			—		1,999
Total Investments	$	71,452	$	271,175		$	—	$	342,627
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	23	$	—		$	—	$	23

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	341,520
Gross tax appreciation of investments	$	1,389
Gross tax depreciation of investments		(282	)
Net tax appreciation of investments	$	1,107

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.

The interest rates reflected in the Schedule of Investments represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, the current reset rate for floating rate securities, the 7-day for money market funds 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    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 19.0%
Agriculture - 0.1%
Bunge Ltd. Finance Corp.,
5.35%, 4/15/14	$	2,000	$	2,105
Auto Manufacturers - 1.0%
Daimler Finance N.A. LLC,
0.92%, 3/28/14(1)		6,000		6,013
1.13%, 4/10/14(1) (2)		10,000		10,029
2.30%, 1/9/15(1) (2)		3,000		3,072
				19,114
Auto Parts & Equipment - 0.2%
Johnson Controls, Inc.,
4.88%, 9/15/13		2,670		2,748
Banks - 7.6%
Bank of America Corp.,
1.73%, 1/30/14		6,100		6,151
1.86%, 7/11/14		5,000		5,058
Bank of New York Mellon (The) Corp.,
4.30%, 5/15/14		9,000		9,459
0.55%, 10/23/15		15,475		15,467
Capital One Financial Corp.,
2.13%, 7/15/14		2,000		2,036
2.15%, 3/23/15		4,100		4,185
0.95%, 11/6/15		9,500		9,524
Citigroup, Inc.,
2.31%, 8/13/13		5,500		5,553
5.50%, 10/15/14		5,000		5,364
2.25%, 8/7/15		2,000		2,048
Goldman Sachs Group (The), Inc.,
5.25%, 10/15/13		1,000		1,035
6.00%, 5/1/14		5,000		5,321
1.31%, 11/21/14		2,800		2,808
1.60%, 11/23/15		10,000		10,070
HSBC USA, Inc.,
2.38%, 2/13/15		2,000		2,057
JPMorgan Chase & Co.,
1.65%, 9/30/13		3,500		3,529
1.12%, 1/24/14		4,200		4,228
0.98%, 10/15/15		15,500		15,509
Morgan Stanley,
1.29%, 4/29/13		7,500		7,517
1.92%, 1/24/14		2,300		2,315
State Street Corp.,
0.66%, 3/7/14		4,150		4,164
Wells Fargo & Co.,
1.25%, 2/13/15		6,000		6,056
1.23%, 6/26/15		10,500		10,599
				140,053
Beverages - 0.1%
SABMiller Holdings, Inc.,
1.85%, 1/15/15(1) (2)		1,165		1,188
Chemicals - 0.3%
Airgas, Inc.,
2.85%, 10/1/13		6,000		6,100
Commercial Services - 0.1%
ERAC USA Finance LLC,
2.75%, 7/1/13(1)		2,000		2,021
Computers - 0.3%
Hewlett-Packard Co.,
1.86%, 9/19/14		5,000		4,954
2.63%, 12/9/14		1,000		1,012
				5,966
Cosmetics/Personal Care - 0.2%
Avon Products, Inc.,
4.80%, 3/1/13		3,020		3,036
Diversified Financial Services - 2.9%
American Express Credit Corp.,
5.88%, 5/2/13		2,068		2,105
1.16%, 6/24/14		4,495		4,535
1.41%, 6/12/15		8,000		8,138
Caterpillar Financial Services Corp.,
0.70%, 11/6/15		1,900		1,895
General Electric Capital Corp.,
1.02%, 4/24/14		10,300		10,375
2.15%, 1/9/15		10,000		10,272
Hyundai Capital America,
1.63%, 10/2/15(1) (2)		6,000		6,036
Toyota Motor Credit Corp.,
0.88%, 7/17/15		10,000		10,041
				53,397
Electric - 0.4%
Commonwealth Edison Co.,
1.63%, 1/15/14		2,000		2,022
NextEra Energy Capital Holdings, Inc.,
2.55%, 11/15/13		3,000		3,047

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 - 19.0% continued
Electric - 0.4% continued
1.61%, 6/1/14	$	3,000	$	3,032
				8,101
Food - 0.2%
Kellogg Co.,
1.13%, 5/15/15		2,000		2,019
Kraft Foods Group, Inc.,
1.63%, 6/4/15(1) (2)		2,000		2,036
				4,055
Healthcare - Services - 0.1%
Quest Diagnostics, Inc.,
1.16%, 3/24/14		1,000		1,006
Insurance - 0.7%
American International Group, Inc.,
3.00%, 3/20/15		9,000		9,365
MetLife, Inc.,
1.56%, 8/6/13		3,100		3,122
Prudential Financial, Inc.,
5.15%, 1/15/13		1,000		1,001
				13,488
Internet - 0.5%
Amazon.com, Inc.,
0.65%, 11/27/15		8,900		8,895
Media - 0.3%
Time Warner Cable, Inc.,
6.20%, 7/1/13		5,000		5,137
Miscellaneous Manufacturing - 0.2%
Eaton Corp.,
0.95%, 11/2/15(1) (2)		3,000		3,009
Office/Business Equipment - 0.4%
Pitney Bowes, Inc.,
3.88%, 6/15/13		2,500		2,522
Xerox Corp.,
1.71%, 9/13/13		1,600		1,610
1.13%, 5/16/14		2,500		2,495
				6,627
Oil & Gas - 0.6%
Marathon Oil Corp.,
0.90%, 11/1/15		10,000		10,008
Pharmaceuticals - 0.9%
AbbVie, Inc.,
1.20%, 11/6/15(1) (2)		17,000		17,114
Pipelines - 0.2%
Enterprise Products Operating LLC,
1.25%, 8/13/15		3,300		3,320
Retail - 0.9%
Nordstrom, Inc.,
6.75%, 6/1/14		9,000		9,763
Walgreen Co.,
0.81%, 3/13/14		7,000		7,010
				16,773
Semiconductors - 0.1%
Broadcom Corp.,
1.50%, 11/1/13		2,000		2,017
Telecommunications - 0.2%
AT&T, Inc.,
0.88%, 2/13/15		3,000		3,014
Toys, Games & Hobbies - 0.3%
Mattel, Inc.,
5.63%, 3/15/13		5,000		5,049
Transportation - 0.2%
CSX Corp.,
6.25%, 4/1/15		4,000		4,479
Total Corporate Bonds (Cost $344,697)				347,820
FOREIGN ISSUER BONDS - 11.2%
Agriculture - 0.2%
BAT International Finance PLC,
1.40%, 6/5/15(1) (2)		3,000		3,043
Banks - 7.3%
Bank of Montreal,
0.78%, 9/11/15		3,000		3,012
Bank of Nova Scotia,
1.85%, 1/12/15		9,000		9,217
Barclays Bank PLC,
1.38%, 1/13/14		1,500		1,508
BNP Paribas S.A.,
1.21%, 1/10/14		3,000		3,009
3.06%, 12/20/14		2,613		2,701
Commonwealth Bank of Australia,
1.06%, 6/14/13		5,000		5,020

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 11.2% continued
Banks - 7.3% continued
1.95%, 3/16/15	$	3,000	$	3,078
Cooperatieve Centrale Raiffeisen- Boerenleenbank B.A.,
4.20%, 5/13/14(1) (2)		7,750		8,106
Credit Suisse,
5.00%, 5/15/13		5,000		5,082
1.30%, 1/14/14		6,500		6,538
ING Bank N.V.,
1.95%, 9/25/15(1) (2)		8,500		8,594
National Australia Bank Ltd.,
1.03%, 4/11/14(1)		12,850		12,930
1.60%, 8/7/15		10,000		10,150
Nordea Bank Finland PLC,
0.78%, 1/27/14		4,500		4,515
1.19%, 4/9/14		7,550		7,611
Oversea-Chinese Banking Corp. Ltd.,
1.63%, 3/13/15(1) (2)		4,000		4,050
Royal Bank of Canada,
1.15%, 3/13/15		10,000		10,109
Royal Bank of Scotland Group PLC,
2.55%, 9/18/15		2,000		2,047
UBS A.G.,
1.31%, 1/28/14		5,000		5,031
Westpac Banking Corp.,
1.04%, 3/31/14(1)		5,000		5,032
1.07%, 9/25/15		17,000		17,108
				134,448
Beverages - 0.2%
SABMiller PLC,
5.50%, 8/15/13(1) (2)		3,000		3,084
Healthcare - Products - 0.2%
Covidien International Finance S.A.,
1.35%, 5/29/15		2,700		2,737
Mining - 0.9%
Rio Tinto Finance USA Ltd.,
5.88%, 7/15/13		4,000		4,108
Rio Tinto Finance USA PLC,
1.13%, 3/20/15		5,500		5,545
Xstrata Finance Canada Ltd.,
2.85%, 11/10/14(1) (2)		3,000		3,079
1.80%, 10/23/15(1) (2)		4,000		4,022
				16,754
Miscellaneous Manufacturing - 0.2%
Pentair Finance S.A.,
1.35%, 12/1/15(1) (2)		4,000		3,996
Oil & Gas - 1.0%
Canadian Natural Resources Ltd.,
1.45%, 11/14/14		16,500		16,735
Petrobras International Finance Co.,
2.88%, 2/6/15		2,000		2,052
				18,787
Pharmaceuticals - 0.7%
Takeda Pharmaceutical Co. Ltd.,
1.03%, 3/17/15(1) (2)		13,000		13,051
Telecommunications - 0.5%
Telefonica Emisiones S.A.U.,
5.86%, 2/4/13		9,880		9,915
Total Foreign Issuer Bonds (Cost $204,155)				205,815
MUNICIPAL BONDS - 64.9%
Alabama - 0.0%
Alabama State Public School & College Authority Improvement Revenue Refunding Bonds, Series A,
5.00%, 5/1/13		1,000		1,016
Alaska - 0.4%
Alaska State G.O. Unlimited Bonds, Series A,
2.75%, 8/1/14		2,505		2,602
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		2,088
				6,928
Arizona - 0.2%
Arizona State University Energy Management LLC Revenue Refunding Bonds, Arizona University Project-Tempe,
5.00%, 7/1/14		1,500		1,593

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 - 64.9% continued
Arizona - 0.2% continued
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	$	2,021
Salt River Project Agricultural Improvement & Power District Electric Revenue Refunding Bonds, Series A,
3.00%, 12/1/13		1,000		1,025
				4,639
Arkansas - 0.2%
Arkansas State Federal Highway G.O. Unlimited Grant Anticipation Notes,
5.00%, 4/1/15		2,600		2,865
California - 6.1%
Burbank Redevelopment Agency Tax Allocation Golden Bonds (FGIC Insured), Prerefunded,
5.63%, 12/1/13		1,000		1,046
California State Department of Water Resources Supply Revenue Bonds, Series L,
5.00%, 5/1/14		1,000		1,062
California State Department of Water Resources Supply Revenue Bonds, Series M,
5.00%, 5/1/14		6,000		6,371
5.00%, 5/1/15		5,650		6,239
California State Department of Water Resources Supply Revenue Bonds, Series N,
5.00%, 5/1/13		5,000		5,080
California State Economic Recovery G.O. Unlimited Bonds, Series A,
5.25%, 7/1/13		10,000		10,248
California State Floating G.O. Unlimited Refunding Bonds, Series A,
0.78%, Mandatory Put 5/1/15		2,500		2,502
California State G.O. Unlimited Refunding Bonds,
3.00%, 9/1/13		5,000		5,089
5.00%, 2/1/15		5,000		5,452
California State Infrastructure & Economic Development Bank Variable Revenue Refunding Bonds, Series A1, J Paul Getty Trust,
0.60%, Mandatory Put 4/1/14		10,000		10,025
California State Infrastructure & Economic Development Bank Variable Revenue Refunding Bonds, Series B2, J Paul Getty Trust,
0.40%, Mandatory Put 4/1/15		10,000		10,000
California State Pollution Control Finance Authority Solid Waste Disposal Variable Revenue Refunding Bonds, Series B, Republic Services,
0.45%, Mandatory Put 2/1/13(1) (2)		4,155		4,155
California State Public Works Board Lease Revenue Bonds, Series A, Various Capital Projects,
3.00%, 10/1/13		2,180		2,221
California State Various Purpose G.O. Unlimited Bonds,
5.00%, 9/1/15		3,000		3,336
California Statewide Communities Development Authority Revenue Bonds, Proposition 1A Receivables Program,
5.00%, 6/15/13		6,730		6,876
California Statewide Communities Development Authority Student Housing Revenue Bonds, UCI East Apartments Irvine LLC,
5.63%, 5/15/15		4,000		4,483
Contra Costa Transportation Authority Sales Tax Revenue Refunding Bonds,,
0.51%, 12/15/15		3,500		3,499
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		7,132
Los Angeles G.O. Unlimited Refunding Bonds, Series B,
3.00%, 9/1/13		1,800		1,833
Los Angeles Unified School District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded,
5.00%, 7/1/13		5,000		5,119
Los Angeles Unified School District G.O. Unlimited Bonds, Series I,
5.00%, 7/1/14		3,000		3,207
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series A,
4.00%, 7/1/14		550		580

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 64.9% continued
California - 6.1% continued
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series B,
3.00%, 7/1/13	$	1,000	$	1,014
Port of Oakland Revenue Refunding Bonds, Series O (AMT),
4.00%, 5/1/13		1,000		1,012
Vale Verde Unified School District G.O. Unlimited TRANS,
2.00%, 10/1/13		3,200		3,237
				111,820
Colorado - 1.0%
Colorado Springs Utilities System Revenue Refunding Bonds, Series A,
3.00%, 11/15/13		6,000		6,141
Denver City & County Airport Revenue Bonds, Series B (AMT),
4.00%, 11/15/13		5,165		5,328
Denver City & County G.O. Unlimited Bonds, Series D, Better Denver,
5.00%, 8/1/13		1,000		1,028
Longmont Sales & Use Tax Revenue Refunding Bonds, Series A, Open Space,
2.00%, 11/15/13		1,070		1,081
Platte River Power Authority Revenue Bonds, Series II,
4.00%, 6/1/14		4,000		4,203
				17,781
Connecticut - 2.4%
Bristol G.O. Unlimited Bonds,
4.00%, 8/1/13		2,000		2,043
Connecticut State Development Authority PCR Bonds, Series A, Connecticut Light & Power Project (AMT),
1.55%, Mandatory Put 4/1/15		6,000		6,031
Connecticut State Development Authority Variable PCR Refunding Bonds, Series B, Connecticut Light & Power Commission,
1.25%, Mandatory Put 9/3/13		4,125		4,142
Connecticut State Economic Recovery G.O. Unlimited Bonds, Series D,
5.00%, 1/1/13		1,800		1,800
Connecticut State G.O. Unlimited Bonds, Series A, Sifma Index,
0.40%, 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		980
Connecticut State G.O. Unlimited Bonds, Series D,
5.00%, 11/1/13		10,100		10,502
Connecticut State G.O. Unlimited Refunding Bonds,
5.00%, 3/15/15		4,000		4,397
Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series A-4, Yale University,
5.00%, Mandatory Put 2/12/15		2,300		2,516
Connecticut State Special Tax Obligation Transportation Revenue Refunding Bonds, Series B,
5.00%, 12/1/14		2,760		3,007
Connecticut State Variable G.O. Unlimited Bonds, Series D,
0.42%, 9/15/15		4,000		4,002
				43,420
Delaware - 0.3%
Delaware State Municipal Electric Corp. Revenue Bonds,
3.00%, 7/1/13		1,135		1,148
University of Delaware Variable Revenue Bonds, Series A,
0.85%, Mandatory Put 6/4/13		3,600		3,609
				4,757
District of Columbia - 0.6%
District of Columbia Income Tax Secured Adjustable Revenue Refunding Bonds, Series E,
0.45%, 12/1/13		4,050		4,050
District of Columbia Income Tax Secured Revenue Refunding Bonds, Secured Series B,
0.40%, 12/1/13		1,955		1,955
Metropolitan Washington D.C. Airports Authority System Revenue Bonds, Series C (AMT),
3.00%, 10/1/13		1,500		1,529
Metropolitan Washington D.C. Airports Authority System Revenue Refunding Bonds, Series A (AMT) (AMBAC Insured),
5.00%, 10/1/14		3,500		3,772
				11,306

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 - 64.9% continued
Florida - 5.2%
Citizens Property Insurance Corp. Adjustable Personal & Commercial Lines Revenue Bonds, Series S,
1.35%, 6/1/15	$	20,000	$	20,144
Citizens Property Insurance Corp. High Risk Revenue Bonds, Senior Secured Series A-1,
5.00%, 6/1/13		1,200		1,223
Citizens Property Insurance Corp. Revenue Bonds, Series A-3, Floating Senior Secured Coastal Notes (AGM Insured),
1.75%, 6/1/14		5,000		5,036
Citizens Property Insurance Corp. Revenue Bonds, Series A-3, High Risk Floating Notes,
1.85%, 6/1/13		5,400		5,432
Florida State Board of Education G.O. Unlimited Refunding Bonds, Series B (State Gtd.),
5.00%, 1/1/15		2,000		2,179
Florida State Board of Education Lottery Revenue Refunding Bonds, Series A,
5.00%, 7/1/14		7,000		7,476
Florida State Board of Governors University of Central Florida Parking Facility Revenue Refunding Bonds, Series A,
5.00%, 7/1/13		1,175		1,201
5.00%, 7/1/14		1,235		1,313
Florida State Board of Governors University System Improvement Revenue Refunding Bonds, Series A,
5.00%, 7/1/15		1,000		1,106
Florida State Board of Public Education G.O. Unlimited Bonds, Series C Capital Outlay (AMBAC State Gtd.),
3.75%, 6/1/13		1,000		1,015
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series A, Capital Outlay,
5.00%, 6/1/14		5,000		5,328
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series C (State Gtd.),
5.00%, 6/1/14		4,000		4,262
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series C, Capital Outlay,
5.00%, 6/1/15		4,880		5,397
Florida State Department of Environmental Protection Preservation Revenue Refunding Bonds, Series A, Florida Forever,
4.00%, 7/1/13		6,400		6,519
5.00%, 7/1/14		3,000		3,203
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A,
5.00%, 7/1/13		1,250		1,280
5.00%, 7/1/15		3,285		3,626
Florida State Water Pollution Control Financing Corp. Revenue Bonds, Series A,
5.00%, 7/15/13		2,000		2,051
Jacksonville Special Revenue Refunding Bonds, Series C,
5.00%, 10/1/15		1,000		1,119
Jea St. Johns River Power Park System Revenue Refunding Bonds, Issue Two Series 25,
4.00%, 10/1/14		13,500		14,345
Miami-Dade County Transit Sales Surtax Revenue Bonds, Series A,
3.00%, 7/1/13		1,000		1,013
Okeechobee County Solid Waste Disposal Management Landfill Variable Revenue Bonds, Series A,
0.65%, 1/7/39(3)		1,250		1,250
				95,518
Georgia - 3.0%
Albany Sales Tax G.O. Unlimited Bonds,
2.00%, 6/1/15		1,300		1,343
Burke County Development Authority PCR Bonds, Fifth Series, Plant Vogtle Project,
2.30%, 4/1/14		1,000		1,020
Burke County Development Authority PCR Bonds, Fourth Series, Georgia Power Co. Plant Vogtle Project,
1.20%, Mandatory Put 4/1/14		2,000		2,013
Floyd County Development Authority Revenue Bonds, Power Company Plant Hammond,
0.85%, 11/19/15		2,000		1,993
Georgia State G.O. Unlimited Bonds, Series B,
5.00%, 10/1/14		4,000		4,327
Georgia State G.O. Unlimited Refunding Bonds, Series E-1,
5.00%, 7/1/13		5,755		5,893

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 64.9% continued
Georgia - 3.0% continued
Georgia State Road & Tollway Authority Revenue Refunding Bonds, Series A (State Gtd.),
4.00%, 3/1/13	$	1,700	$	1,711
Gwinnett County School District G.O. Unlimited Bonds,
5.00%, 2/1/13		2,300		2,309
Gwinnett County School District Sales Tax G.O. Unlimited Bonds, Series A,
4.00%, 10/1/14		6,500		6,918
Henry County School District G.O. Unlimited Bonds (State Aid Withholding),
2.00%, 12/1/14		1,000		1,030
Metropolitan Atlanta Rapid Transit Authority Sales Tax Variable Revenue Bonds, Series A,
0.35%, Mandatory Put 9/1/14		26,000		26,000
Municipal Electric Authority of Georgia Revenue Bonds, Series A, Combined Cycle Project,
4.00%, 11/1/14		1,000		1,062
				55,619
Hawaii - 1.2%
Hawaii County Improvement G.O. Unlimited Refunding Bonds, Series A (NATL-RE FGIC Insured),
5.60%, 5/1/13		1,000		1,018
Hawaii State Airports System Revenue Refunding Bonds (AMT),
4.00%, 7/1/13		1,950		1,986
5.00%, 7/1/14		1,335		1,426
Hawaii State G.O. Unlimited Refunding Bonds, Series EC,
5.00%, 12/1/13		3,000		3,131
Hawaii State Housing Finance & Development Corp. Multi Family Revenue Bonds, Series A, HaleKauwila Place,
0.70%, 12/1/15		6,000		6,001
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		6,010
Honolulu City & County G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded,
5.25%, 3/1/13		810		817
Maui County G.O. Unlimited Refunding Bonds,
3.00%, 6/1/14		1,400		1,451
				21,840
Idaho - 0.6%
Idaho Housing & Finance Association Unemployment Compensation Revenue Bonds,
4.00%, 8/15/14		10,000		10,572
Illinois - 2.1%
Chicago O’Hare International Airport Revenue Refunding Bonds, Series B (AMT), Passenger Facility Charge,
5.00%, 1/1/14		1,650		1,727
5.00%, 1/1/15		1,250		1,358
Illinois State Educational Facilities Authority Adjustable Revenue Bonds, Series B-1, University of Chicago,
1.13%, Mandatory Put 2/14/13		1,450		1,451
Illinois State Finance Authority Adjustable Revenue Bonds, Subseries A, Northwestern University,
0.37%, Mandatory Put 3/3/14		2,600		2,600
Illinois State Finance Authority Adjustable Revenue Bonds, Subseries B, Northwestern University,
1.75%, Mandatory Put 3/3/14		7,935		8,067
Illinois State Finance Authority Adjustable Revenue Bonds, Subseries C, Northwestern University,
0.37%, Mandatory Put 3/3/14		14,950		14,947
Illinois State Finance Authority Revenue Bonds, Series A-2, Advocate Health Care,
1.40%, Mandatory Put 2/1/13		8,000		8,007
Illinois State Unemployment Insurance Fund Building Reciepts Revenue Bonds, Series A,
5.00%, 6/15/14		1,000		1,067
				39,224
Indiana - 1.0%
Indiana State Finance Authority Economic Development Revenue Bonds, Republic Services, Inc. Project,
0.60%, 3/1/13		4,000		4,000
Indiana State Finance Authority Revenue Bonds, Series A, State Revolving Fund Program,
4.00%, 2/1/13		1,000		1,003

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 - 64.9% continued
Indiana - 1.0% continued
Indiana State Health Facility Financing Authority Revenue Bonds, Series A1, Ascension Health Care Group,
1.50%, Mandatory Put 8/1/14	$	5,000	$	5,075
Indiana State Health Facility Financing Authority Revenue Bonds, Series A6, Ascension Health Sub Credit Group,
5.00%, Mandatory Put 6/1/14		5,600		5,956
Whiting Environmental Facilities Variable Revenue Bonds, BP Products N.A., Inc.,
2.80%, Mandatory Put 6/2/14		2,540		2,621
				18,655
Iowa - 0.6%
Ankeny G.O. Unlimited Bond Anticipation Project Notes, Series C,
1.00%, 6/1/14		7,450		7,464
Des Moines Waterworks Revenue Refunding Bonds, Series B,
3.00%, 12/1/14		1,000		1,048
State University of Iowa Revenue Bonds, Academic Building Flood Anticipation Notes,
3.00%, 1/1/13		2,000		2,000
				10,512
Kansas - 0.1%
Kansas State Development Finance Authority Revenue Bonds, Series B, Kansas Projects,
3.00%, 5/1/13		1,930		1,946
Overland Park G.O. Unlimited Bonds, Kansas Internal Improvement Project,
4.00%, 9/1/14		770		816
				2,762
Kentucky - 0.3%
Kentucky State Economic Development Finance Authority Solid Waste Disposal Revenue Refunding Bonds, Series B, Republic Services, Inc. Project,
0.43%, Mandatory Put 3/1/13		2,000		2,000
Pikeville Hospital Improvement Revenue BANS,
3.00%, 9/1/13		4,000		4,051
				6,051
Louisiana - 0.8%
Louisiana State G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured),
5.00%, 8/1/13		2,100		2,158
Louisiana State Gas & Fuels Adjustable TRB, Series A-1, Second Lien,
0.85%, Mandatory Put 6/1/13		1,000		1,001
Louisiana State Gas & Fuels TRB, Series B, Second Lien,
5.00%, 5/1/13		1,275		1,295
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		2,547
St. James Parish Variable Revenue Bonds, Series A-1, Nucor Steel Project,
0.35%, 11/1/40		5,000		5,000
				15,027
Maine - 0.1%
South Portland G.O. Unlimited Bonds,
4.00%, 7/15/14		1,500		1,582
Maryland - 0.6%
Montgomery County G.O. Unlimited Bonds, Series A,
5.00%, 7/1/14		1,800		1,927
Prince Georges County Consolidated Public Improvement G.O. Limited Bonds, Series A,
5.00%, 9/15/14		2,935		3,169
Prince Georges County Consolidated Public Improvement G.O. Limited Refunding Bonds, Series B,
5.00%, 9/15/14		2,800		3,023
University System of Maryland Auxilary Facility & Tuition Revenue Refunding Bonds, Series A,
3.00%, 4/1/14		3,400		3,515
				11,634
Massachusetts - 2.4%
Boston G.O. Unlimited Refunding Bonds, Series C,
5.00%, 8/1/14		1,050		1,128
Cambridge Municipal Purpose Loan G.O. Limited Bonds,
2.00%, 2/15/15		3,175		3,281

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 64.9% continued
Massachusetts - 2.4% continued
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series D,
4.00%, 10/1/13	$	4,000	$	4,113
0.27%, 1/1/15		21,110		21,110
Massachusetts State Department of Transportation Metropolitan Highway System Revenue Bonds, Senior Series B,
5.00%, 1/1/13		3,000		3,000
Massachusetts State Housing Finance Agency Revenue Bonds, Series F, Construction Loan Notes,
0.65%, 12/1/14		3,500		3,493
Massachusetts State Transportation Fund Revenue Bonds, Series A, Accelerated Bridge Program,
5.00%, 6/1/14		7,000		7,466
Springfield State Qualified Municipal Purpose Loan G.O. Limited Bonds (AGM Insured) (State Aid Withholding),
5.75%, 8/1/14		1,025		1,109
				44,700
Michigan - 1.7%
Lowell Limited Obligation Industrial Variable Revenue Bonds, Litehouse, Inc. Project (Fifth Third Bank LOC) (AMT),
0.48%, 8/1/33		1,110		1,110
Michigan State Finance Authority Unemployment Obligation Assessment Revenue Bonds, Series A,
5.00%, 7/1/14		10,000		10,692
Michigan State G.O. Unlimited Refunding Bonds,
5.50%, 12/1/15		1,075		1,228
Michigan State Hospital Finance Authority Revenue Refunding Bonds, Series F3, Ascension Health,
2.63%, 6/30/14		2,000		2,063
Michigan State Hospital Finance Authority Variable Revenue Bonds, Ascension Health Care Group,
0.90%, Mandatory Put 3/16/15		3,590		3,595
Saline Area Schools G.O. Unlimited Variable Refunding Bonds (Q-SBLF Insured),
0.65%, 11/1/15		13,500		13,500
				32,188
Minnesota - 0.8%
Duluth EDA HealthCare Facilities Revenue Bonds, Benedictine Health Systems St. Marys,
5.25%, 2/15/14		1,000		1,054
Hennepin County Senior Sales Tax G.O. Unlimited Bonds, Series E,
4.00%, 12/15/13		3,045		3,154
Minnesota State Trunk Highway G.O. Unlimited Bonds, Series B,
5.00%, 8/1/14		5,500		5,908
Monticello Independent School District No. 882 School Building G.O. Unlimited Refunding Bonds, Series B (School District Credit Program),
2.00%, 2/1/14		1,730		1,762
Ramsey County Capital Improvement G.O. Unlimited Refunding Bonds, Series B,
4.00%, 2/1/14		3,000		3,120
				14,998
Mississippi - 0.3%
Mississippi State Business Finance Corp. Solid Waste Disposal Variable Revenue Bonds, Waste Management, Inc. Project,
2.25%, Mandatory Put 11/3/14		4,600		4,717
Municipal States Pooled Securities - 0.8%
BB&T Municipal Trust Sifma Floater Certificates, Series B (Rabobank Nederland LOC),
0.97%, 8/1/14(1) (2)		4,965		4,964
BB&T Municipal Trust, Floaters Certificates, Series C (Rabobank Nederland LOC),
0.60%, 12/1/15		10,000		10,000
				14,964
Nebraska - 0.4%
Nebraska State Public Power District General Revenue Bonds, Series B-1 (NATL-RE FGIC Insured),
5.00%, 1/1/14		2,500		2,617
Washington County Waste Water Solid Waste Disposal Facilities Variable Revenue Refunding Bonds, Cargill, Inc. Projects (AMT),
1.38%, Mandatory Put 9/1/15		5,000		4,995
				7,612

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 - 64.9% continued
Nevada - 0.6%
Clark County Highway Improvement Motor Vehicle Fuel Tax Revenue Refunding Bonds,
5.00%, 7/1/14	$	3,000	$	3,199
Clark County School District Building Tax G.O. Limited Bonds, Series A,
5.00%, 6/15/13		1,000		1,021
Clark County School District Tax G.O. Limited Refunding Bonds, Series A,
5.00%, 6/15/13		6,000		6,128
				10,348
New Hampshire - 0.2%
New Hampshire State Business Finance Authority Solid Waste Disposal Variable Revenue Bonds, Waste Management, Inc. Project (AMT),
3.50%, Mandatory Put 6/3/13		1,450		1,465
New Hampshire State G.O. Unlimited Refunding Bonds, Series B,
4.00%, 6/1/14		1,500		1,578
				3,043
New Jersey - 4.3%
Monmouth County Improvement Authority Revenue Refunding Bonds, Government Pooled Loan (County Gtd.),
4.00%, 12/1/14		1,000		1,070
New Jersey Environmental Infrastructure Trust Revenue Bonds,
3.00%, 9/1/14		1,000		1,045
New Jersey State Building Authority Revenue Refunding Bonds, Series A,
3.50%, 6/15/13		10,970		11,128
New Jersey State EDA Cigarette TRB, Prerefunded,
5.75%, 6/15/14		17,500		18,882
New Jersey State EDA Revenue Bonds, Build America Bonds,
1.31%, 6/15/13		5,000		5,011
New Jersey State EDA School Facilities Construction Notes, Series G, Sifma Index,
0.68%, 2/1/15		3,000		3,001
New Jersey State EDA Solid Waste Disposal Facilities Revenue Bonds, Series A, Waste Management, Inc. Project (AMT),
5.30%, Mandatory Put 6/1/14		3,500		3,717
New Jersey State Educational Facilities Authority Revenue Bonds, Series B, Princeton University,
3.00%, 7/1/13		3,000		3,043
5.00%, 7/1/14		4,000		4,287
New Jersey State G.O. Unlimited Refunding Bonds,
5.00%, 8/1/13		4,880		5,016
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series AA, Transportation Program,
4.00%, 6/15/14		3,000		3,154
4.00%, 6/15/15		6,000		6,477
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B,
5.00%, 6/15/14		2,000		2,132
New Jersey State Turnpike Authority Revenue Bonds, Series C (NATL-RE Insured), Escrowed To Maturity,
6.50%, 1/1/13		1,000		1,000
New Jersey State Turnpike Authority Variable Revenue Bonds, Series B,
0.85%, Mandatory Put 12/22/14(1) (2)		7,000		7,012
Ocean County G.O. Unlimited Refunding Bonds,
3.00%, 8/1/13		1,000		1,016
Tobacco Settlement Financing Corp. Revenue Bonds, Prerefunded,
6.75%, 6/1/13		1,000		1,027
				78,018
New York - 8.2%
Erie County Industrial Development Agency School Facility Revenue Bonds, City School District Buffalo Project (AGM Insured State Aid Withholding), Escrowed to Maturity,
5.00%, 5/1/14		1,185		1,259
Metropolitan Transportation Authority Dedicated Tax Fund Floating Revenue Refunding Bonds, Subseries B-3A,
0.33%, 11/1/14		3,400		3,402
Metropolitan Transportation Authority Dedicated Tax Fund Floating Revenue Refunding Bonds, Subseries B-3B,
0.65%, Mandatory Put 11/1/13		4,000		4,008
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Subseries B-2,
3.00%, 11/1/14		2,000		2,093

FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 64.9% continued
New York - 8.2% continued
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Refunding Bonds, Series A,
4.00%, 11/15/14	$	1,500	$	1,599
Metropolitan Transportation Authority Revenue Bonds, Series A1, Floating Rate Tender Notes,
0.24%, Mandatory Put 5/15/13		2,900		2,900
Metropolitan Transportation Authority Revenue Bonds, Series B-1,
5.00%, 11/15/14		3,210		3,478
Metropolitan Transportation Authority Revenue Refunding Bonds, Series F,
5.00%, 11/15/14		24,000		26,005
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E,
5.00%, 11/1/14		14,865		16,146
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Series C,
5.00%, 11/1/13		3,000		3,121
New York Fiscal 2008 G.O. Unlimited Bonds, Series A-1,
5.00%, 8/1/15		3,000		3,331
New York G.O. Unlimited Bonds, Series F2,
4.00%, 12/15/13		10,000		10,160
New York State Dormitory Authority Personal Income TRB, Series B,
5.00%, 3/15/15		6,000		6,596
New York State Dormitory Authority Supported Debt Revenue Bonds, Series A, State University Dormitory Facilities,
4.00%, 7/1/15		1,700		1,846
New York State G.O. Unlimited Bonds, Series A,
5.00%, 2/15/13		2,550		2,565
New York State G.O. Unlimited Bonds, Series E,
4.00%, 12/15/13		6,200		6,427
New York State Housing Finance Agency Affordable Housing Revenue Bonds, Series 4, NIBP,
1.20%, 11/1/14		4,000		4,037
New York State Mortgage Agency Homeowner Revenue Bonds, Series 164,
1.00%, 4/1/14		2,000		2,008
New York State Thruway Authority Local Highway & Bridge Revenue Bonds, Series A,
4.00%, 4/1/14		2,500		2,612
New York State Urban Development Corp. Revenue Refunding Bonds, Series B,
5.00%, 1/1/13		2,000		2,000
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		4,295
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		10,771
Suffolk County Public Improvement G.O. Unlimited Bonds, Series A,
3.00%, 5/15/13		2,930		2,954
Suffolk County Water Authority Variable Revenue BANS, Series B,
0.50%, 4/1/14		11,000		10,994
Tobacco Settlement Financing Corp. Asset-Backed Revenue Bonds, Series B,
4.00%, 6/1/13		7,000		7,107
Triborough Bridge & Tunnel Authority General Revenue Bonds, Subseries B1 (G.O. of Authority Insured),
5.00%, Mandatory Put 11/15/13		7,715		8,027
				149,741
North Carolina - 1.4%
Charlotte COPS, Series A,
5.00%, 12/1/14		3,000		3,253
Mecklenburg County Public Improvement G.O. Unlimited Bonds, Series A,
5.00%, 10/1/13		7,200		7,459
5.00%, 10/1/14		3,500		3,786
North Carolina State Capital Improvement Obligation Revenue Bonds, Series C,
5.00%, 5/1/14		5,000		5,306
North Carolina State Turnkpike Authority Monroe Connector System Appropriation Revenue Bonds,
3.00%, 7/1/13		1,000		1,014
North Carolina State University at Raleigh General Revenue Refunding Bonds,
3.00%, 10/1/14		1,500		1,567
Wake County Public Improvement Non Ace G.O. Unlimited Bonds,
4.00%, 3/1/14		1,000		1,043

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 - 64.9% continued
North Carolina - 1.4% continued
Winston Salem Limited Obligation Revenue Bonds, Series A (County Gtd.),
4.00%, 3/1/15	$	1,500	$	1,611
				25,039
Ohio - 2.8%
Columbus City G.O. Unlimited Bonds, Series A,
3.00%, 2/15/15		17,000		17,921
Columbus City G.O. Unlimited Refunding Bonds, Series 2012-3,
4.00%, 8/15/15		8,000		8,733
Columbus City School District Facilities Construction & Improvement G.O. Unlimited Bonds (FGIC Insured), Prerefunded,
5.00%, 6/1/13		3,000		3,060
Franklin County Hospital Facilities Revenue Refunding Bonds, Series C, Ohio Health Corp.,
0.55%, Mandatory Put 6/3/13		7,000		7,006
Ohio State Air Quality Development Authority Variable PCR Refunding Bonds, First Energy Project,
2.25%, Mandatory Put 6/3/13		7,000		7,029
Ohio State Infrastructure Improvement G.O. Unlimited Refunding Bonds, Series B,
5.00%, 8/1/14		2,500		2,681
Ohio State Water Development Authority PCR Bonds, Series 2012, Various Loan Fund,
0.50%, 7/15/15		5,500		5,500
				51,930
Oklahoma - 0.3%
Oklahoma City G.O. Unlimited Refunding Bonds,
3.00%, 3/1/13		1,750		1,758
4.00%, 3/1/14		3,000		3,128
Oklahoma County Independent School District No. 12 Edmond, G.O. Unlimited Bonds,
2.50%, 3/1/15		700		728
				5,614
Oregon - 0.9%
Metro G.O. Limited Refunding Bonds, Series B,
4.00%, 6/1/14		5,500		5,786
Port of Portland International Airport Revenue Refunding Bonds, Series B (AMT),
5.00%, 7/1/15		1,550		1,703
Portland G.O. Limited Tax Revenue Refunding Bonds, Series B, Police Training,
3.00%, 6/1/14		3,000		3,112
Portland G.O. Limited TRB, Milwaukie,
3.00%, 9/1/14		1,000		1,044
4.00%, 9/1/15		1,350		1,472
Portland G.O. Unlimited Bonds, Series A, Public Safety Project,
4.00%, 6/1/13		1,425		1,447
4.00%, 6/1/14		1,485		1,562
Tri-County Metropolitan Transportation District Revenue Bonds, Series A,
3.00%, 9/1/14		1,190		1,242
				17,368
Pennsylvania - 3.5%
Pennsylvania State Economic Development Financing Authority Revenue Bonds, Solid Waste Management Project,
1.75%, 1/12/33		3,000		2,986
Pennsylvania State Economic Development Financing Authority Solid Waste Disposal Variable Revenue Bonds, Waste Management, Inc. Project (AMT),
2.63%, Mandatory Put 7/1/14		2,970		3,011
Pennsylvania State Economic Development Financing Authority Unemployment Compensation Revenue Bonds, Series A,
4.00%, 7/1/14		26,590		28,053
Pennsylvania State G.O. Unlimited Bonds, Second Series,
5.50%, 1/1/13		1,540		1,540
5.00%, 2/15/13		1,000		1,006
5.00%, 1/1/15		1,740		1,896
Pennsylvania State G.O. Unlimited Bonds, Third Series (AGM Insured),
5.00%, 9/1/14		10,000		10,768
Pennsylvania State G.O. Unlimited Refunding & Projects Bonds, First Series (NATL-RE Insured),
5.25%, 2/1/14		3,000		3,161
Pennsylvania State G.O. Unlimited Refunding Bonds, First Series,
5.00%, 7/1/14		1,700		1,818

FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 64.9% continued
Pennsylvania - 3.5% continued
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, First Series, Temple University,
3.00%, 4/1/14	$	1,000	$	1,033
Pennsylvania State Housing Finance Agency Mortgage Revenue Bonds, Series 114A (AMT Insured),
0.80%, 4/1/14		750		750
1.05%, 4/1/15		625		625
Philadelphia G.O. Unimited Bonds, Series A (XLCA Insured),
5.25%, 2/15/13		4,300		4,324
State Public School Building Authority Lease Revenue Bonds, School District of Philadelphia Project (State Tax Intercept Program),
5.00%, 4/1/15		1,000		1,092
State Public School Building Authority Revenue Bonds, Lease-Philadelphia School District Project (AGM Insured State Aid Withholding), Prerefunded,
5.25%, 6/1/13		1,305		1,332
				63,395
Rhode Island - 0.1%
Rhode Island State Health & Educational Building Corp. Higher Education Facility Revenue Refunding Bonds, Series A, Brown University,
5.00%, 9/1/13		1,000		1,031
South Carolina - 0.4%
Lexington & Richland School District No. 5 G.O. Unlimited Bonds, Series B (SCSDE Insured),
4.00%, 3/1/14		1,015		1,058
4.00%, 3/1/15		3,555		3,818
South Carolina State Public Service Authority Revenue Refunding Bonds, Series B, Santee Cooper,
5.00%, 1/1/13		1,000		1,000
York County School District No. 3 G.O. Limited Bonds, Series A (SCSDE Insured),
4.00%, 3/1/13		1,000		1,006
				6,882
South Dakota - 0.0%
Huron School District No. 02-2 G.O. Unlimited Refunding Bonds (AGM Insured),
2.00%, 6/15/13		440		443
Tennessee - 0.9%
Knox County G.O. Unlimited Bonds,
4.00%, 4/1/14		5,500		5,752
Knoxville G.O. Unlimited Bonds,
2.00%, 5/1/14		2,000		2,045
4.00%, 5/1/15		3,245		3,506
Rutherford County G.O. Unlimited Bonds,
3.00%, 4/1/14		2,315		2,393
Tennessee State G.O. Unlimited Bonds, Series A,
5.00%, 10/1/13		2,000		2,072
				15,768
Texas - 3.2%
Austin Public Improvement G.O. Limited Bonds, Series A,
2.00%, 9/1/13		2,000		2,024
Austin Public Property Finance Contractual G.O. Limited Bonds,
3.00%, 5/1/15		1,845		1,953
Gulf Coast Waste Disposal Authority Revenue Bonds, BP Products N.A. Project,
2.30%, Mandatory Put 9/3/13		3,625		3,664
Gulf Coast Waste Disposal Authority Revenue Refunding Bonds, BP Products N.A. Project,
2.30%, Mandatory Put 9/3/13		7,900		7,991
Harris County G.O. Limited Refunding Bonds, Series A,
4.00%, 10/1/14		4,500		4,785
Harris County Metropolitan Transit Authority Sales & Use TRB, Series B, Contractual Obligations,
4.00%, 11/1/13		2,195		2,262
Harris County Road G.O. Unlimited Refunding Bonds, Series A,
3.00%, 10/1/13		1,000		1,021
Houston Hotel Occupancy Tax & Special Revenue Refunding Bonds, Series A,
5.00%, 9/1/13		1,500		1,546
Houston Independent School District Variable Tax G.O. Limited Refunding Bonds (PSF-Gtd.),
2.00%, Mandatory Put 6/1/14		5,000		5,103

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 - 64.9% continued
Texas - 3.2% continued
Houston Utility System Combined Revenue Refunding Bonds, Series E, First Lien,
5.00%, 11/15/13	$	2,000	$	2,082
Houston Utility System Revenue Refunding Bonds, Series A, Sifma Index,
0.65%, Mandatory Put 6/1/15		2,000		2,003
Midlothian Independent School District G.O. Unlimited Bonds, Series B (PSF-Gtd.),
2.25%, Mandatory Put 8/1/14		3,300		3,387
North Texas State Municipal Water District Upper Efork Waste Water Intercept Revenue Refunding and Imrpovement Bonds,
3.00%, 6/1/15		2,000		2,117
Plano Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.),
5.00%, 2/15/15		5,000		5,476
5.00%, 2/15/15		2,190		2,398
Sam Rayburn Municipal Power Agency Revenue Refunding Bonds,
5.00%, 10/1/14		1,000		1,070
San Antonio Improvement G.O. Limited Bonds,
4.00%, 2/1/15		2,000		2,144
Texas State G.O. Unlimited Refunding Bonds, Series B (AMT), College Student Loan,
5.00%, 8/1/13		1,000		1,028
University of North Texas Financing System Revenue Bonds, Series A,
5.00%, 4/15/13		1,250		1,267
University of Texas Financing System Revenue Refunding Bonds, Series A,
4.00%, 8/15/14		4,500		4,764
				58,085
Utah - 0.1%
Utah State G.O. Unlimited Refunding Bonds, Series A,
5.00%, 7/1/14		1,000		1,070
Virginia - 2.8%
Charles City & County IDA Solid Waste Disposal Facility Adjustable Revenue Bonds (AMT), Waste Management, Inc. Project,
1.88%, Mandatory Put 4/1/15		750		760
Loudoun County Public Improvement G.O. Unlimited Bonds, Series A,
4.00%, 12/1/13		2,590		2,680
Loudoun County Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding),
5.00%, 12/1/13		2,185		2,281
5.00%, 12/1/14		2,000		2,179
Louisa IDA PCR Bonds, Series C, Virginia Electric & Power Co. Project,
1.50%, Mandatory Put 12/1/14		2,000		2,013
Louisa IDA Solid Waste & Sewage Disposal Variable Revenue Bonds, Series A, Virginia Electric & Power Co. Project (AMT),
2.50%, Mandatory Put 3/1/13		2,825		2,832
Virginia State College Building Authority Educational Facilities Revenue Bonds, Public Higher Educational Financing Program,
5.00%, 9/1/15		3,105		3,471
Virginia State College Building Authority Educational Facilities Revenue Bonds, Series A, 21’st Century College & Equipment,
5.00%, 2/1/15		7,000		7,653
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series A, University of Richmond Project,
3.00%, 3/1/13		1,545		1,552
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series B, Public Higher Educational Financing Program,
5.00%, 9/1/13		3,000		3,095
Virginia State Commonwealth Transportation Board Federal Grant Anticipatory Revenue Bonds, Series A,
2.00%, 9/15/13		2,765		2,799
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects,
4.00%, 5/15/14		5,000		5,250
Virginia State Commonwealth Transportation Board Revenue Refunding Bonds, Contract Route 28 Project,
3.00%, 4/1/14		1,500		1,549
Virginia State Public School Authority Revenue Bonds,
5.00%, 4/15/15		8,035		8,854

FIXED INCOME FUNDS    14     NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 64.9% continued
Virginia - 2.8% continued
Virginia State Public School Authority Revenue Refunding Bonds, Series B, School Financing 1997 Resolution,
5.25%, 8/1/14	$	1,000	$	1,077
Virginia State Public School Authority Special Obligation Prince William County Revenue Bonds,
5.00%, 7/15/15		3,285		3,657
				51,702
Washington - 0.9%
Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project 1 (NATL-RE Insured),
5.25%, 7/1/13		3,000		3,075
Grant County Public Utility District No. 2 Electric Revenue Refunding Bonds, Series I,
5.00%, 1/1/14		1,500		1,566
King County School District No. 412 Shoreline G.O. Unlimited Bonds (School Board Guaranty Insured),
3.00%, 12/1/13		1,000		1,025
Port of Seattle Intermediate Revenue Refunding Bonds, Series B (AMT),
3.00%, 8/1/14		1,000		1,036
Seattle G.O. Unlimited Refunding Bonds,
3.00%, 12/1/13		1,000		1,025
Snohomish County G.O. Limited Refunding Bonds, Series A,
5.00%, 12/1/13		2,000		2,086
University of Washington General Revenue Refunding Bonds, Series A,
4.00%, 10/1/13		1,000		1,029
Washington State G.O. Unlimited Refunding Bonds, Series R-2012A,
4.00%, 7/1/13		2,695		2,746
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Refunding Bonds,
5.00%, 7/1/15		2,500		2,776
				16,364
West Virginia - 0.0%
West Virginia State University Projects Revenue Bonds, Series B,
4.00%, 10/1/13		1,000		1,027
Wisconsin - 1.1%
Madison G.O. Unlimited Promissory Notes, Series A,
5.00%, 10/1/14		4,000		4,326
Madison G.O. Unlimited Promissory Notes, Series E,
4.00%, 10/1/13		2,150		2,211
Milwaukee G.O. Unlimited Promissory Notes, Series N1,
4.00%, 2/1/13		1,000		1,003
Milwaukee G.O. Unlimited Promissory Notes, Series N3,
5.00%, 5/15/13		2,000		2,035
Northeast Wisconsin Technical College District G.O. Unlimited Promissory Notes, Series B,,
2.00%, 4/1/15		1,100		1,133
Wisconsin State G.O. Unlimited Bonds, Series B,
5.00%, 5/1/13		4,000		4,064
Wisconsin State G.O. Unlimited Bonds, Series C, Prerefunded,
5.00%, 5/1/14		4,790		5,083
Wisconsin State Health & Educational Facilities Authority Revenue Bonds, Series A, Aurora Health Care,
2.50%, 7/15/13		325		328
				20,183
Total Municipal Bonds (Cost $1,187,642)				1,189,758
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2.2%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01%(4) (5)		40,254,347	$	40,254
Total Investment Companies (Cost $40,254)				40,254
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 1.8%
Austin G.O. Limited Bonds, Series A,
3.00%, 9/1/13	$	1,800	$	1,834
California State RANS, Series A-2,
2.50%, 6/20/13		9,000		9,091
California State School Cash Reserve Program Authority Revenue Notes, Series V,
2.00%, 1/31/13		8,000		8,009
Jefferson County PCR Bonds,
0.40%, 1/16/13		4,300		4,300

NORTHERN FUNDS QUARTERLY REPORT    15    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-ADVANTAGED ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 1.8% continued
Mercer County PCR Bonds,
0.45%, 1/3/13	$	3,500	$	3,500
Nassau County G.O. Limited RANS,
2.00%, 3/29/13		6,000		6,016
Total Short-Term Investments (Cost $32,746)				32,750
Total Investments - 99.1% (Cost $1,809,494)				1,816,397
Other Assets less Liabilities - 0.9%				16,461
NET ASSETS - 100.0%			$	1,832,858

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 December 31, 2012, the value of the restricted illiquid security amounted to approximately $109,642,000 or 6.0% of net assets. Additional information on the restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000S)
AbbVie, Inc.,
1.20%, 11/6/15		11/5/12	$	16,989
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),
0.97%, 8/1/14		7/29/11		4,965
California State Pollution Control Finance Authority Solid Waste Disposal Variable Revenue Refunding Bonds, Series B, Republic Services,
0.45%, 2/1/13		10/31/12-12/20/12		4,155
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.,
4.20%, 5/13/14		2/9/12		8,155
Daimler Finance N.A. LLC,
1.13%, 4/10/14		4/2/12		10,000
Daimler Finance N.A. LLC,
2.30%, 1/9/15		1/5/12		2,996
Eaton Corp.,
0.95%, 11/2/15		11/14/12		2,997
Hyundai Capital America,
1.63%, 10/2/15		9/24/12		5,997
ING Bank N.V.,
1.95%, 9/25/15		9/18/12		8,500
Kraft Foods Group, Inc.,
1.63%, 6/4/15		5/30/12		1,995
New Jersey State Turnpike Authority Variable Revenue Bonds, Series B,
0.85%, 12/22/14		5/18/12		7,018
Oversea-Chinese Banking Corp. Ltd.,
1.63%, 3/13/15		3/6/12		3,992
Pentair Finance S.A.,
1.35%, 12/1/15		11/19/12		3,998
SABMiller Holdings, Inc.,
1.85%, 1/15/15		1/11/12		1,165
SABMiller PLC,
5.50%, 8/15/13		1/13/12		3,186
Takeda Pharmaceutical Co. Ltd.,
1.03%, 3/17/15		7/9/12		13,000
Xstrata Finance Canada Ltd.,
2.85%, 11/10/14		11/3/11		2,997
Xstrata Finance Canada Ltd.,
1.80%, 10/23/15		10/18/12		3,999

(3) When-Issued Security.

(4) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 Tax Exempt Portfolio of the Northern Institutional Funds was approximately $18,971,000 with net purchases of approximately $21,283,000 during the nine months ended December 31, 2012.

At December 31, 2012, the quality distribution for the Tax-Advantaged Ultra-Short Fixed Income Fund was:

QUALITY DISTRIBUTION*	% OF  LONG-TERM INVESTMENTS
AAA		16.7	%
AA		40.3
A		27.2
BBB		10.9
A1+		0.2
A2		0.3
Not rated		4.4
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

FIXED INCOME FUNDS    16     NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

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.

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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Corporate Bonds	$	—	$	347,820	(1)	$	—	$	347,820
Foreign Issuer Bonds		—		205,815	(1)		—		205,815
Municipal Bonds		—		1,189,758	(1)		—		1,189,758
Investment Companies		40,254		—			—		40,254
Short-Term Investments		—		32,750			—		32,750
Total Investments	$	40,254	$	1,776,143		$	—	$	1,816,397

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,809,494
Gross tax appreciation of investments	$	7,375
Gross tax depreciation of investments		(472	)
Net tax appreciation of investments	$	6,903

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

PSF - Permanent School Fund

Q-SBLF - Qualified School Bond Loan Fund

RANS - Revenue Anticipation Notes

SCSDE - South Carolina School District Enhancement

TANS - Tax Anticipation Notes

XLCA - XL Capital Assurance

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.

The interest rates represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds 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 DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 7.5%
Automobile - 3.4%
Ally Auto Receivables Trust, Series 2011-4, Class A2,
0.65%, 3/17/14	$	285	$	285
Ally Auto Receivables Trust, Series 2012-5, Class A2,
0.45%, 7/15/15		2,000		2,000
Ally Auto Receivables Trust, Series 2012-SN1, Class A2,
0.51%, 12/22/14		1,950		1,951
Bank of America Auto Trust, Series 2012-1, Class A2,
0.59%, 11/17/14		1,978		1,979
BMW Vehicle Lease Trust, Series 2012-1, Class A2,
0.59%, 6/20/14		1,411		1,412
BMW Vehicle Owner Trust, Series 2010-A, Class A3,
1.39%, 4/25/14		202		202
CarMax Auto Owner Trust, Series 2012-1, Class A2,
0.59%, 3/16/15		1,350		1,351
Ford Credit Auto Owner Trust, Series 2012-B, Class A2,
0.57%, 1/15/15		1,415		1,416
Harley-Davidson Motorcycle Trust, Series 2012-1, Class A2,
0.50%, 8/15/15		1,000		1,001
Honda Auto Receivables Owner Trust, Series 2012-2, Class A2,
0.56%, 11/17/14		1,540		1,542
Honda Auto Receivables Owner Trust, Series 2012-4, Class A2,
0.40%, 4/20/15		5,000		5,001
Hyundai Auto Receivables Trust, Series 2010-A, Class A3,
1.50%, 10/15/14		252		252
Hyundai Auto Receivables Trust, Series 2012-B, Class A2,
0.54%, 1/15/15		2,000		2,003
Mercedes-Benz Auto Receivables Trust, Series 2009-1, Class A3,
1.67%, 1/15/14		44		44
Mercedes-Benz Auto Receivables Trust, Series 2010-1, Class A3,
1.42%, 8/15/14		219		220
Nissan Auto Lease Trust, Series 2012-A, Class A2A,
0.68%, 7/15/14		922		924
Nissan Auto Lease Trust, Series 2012-B, Class A2B,
0.31%, 6/15/15		3,000		3,000
Porsche Innovative Lease Owner Trust, Series 2012-1, Class A2,
0.44%, 2/23/15(1) (2)		1,000		1,000
Toyota Auto Receivables Owner Trust, Series 2010-A, Class A3,
1.27%, 12/16/13		116		116
Toyota Auto Receivables Owner Trust, Series 2010-B, Class A3,
1.04%, 2/18/14		149		149
Toyota Auto Receivables Owner Trust, Series 2012-A, Class A2,
0.57%, 10/15/14		959		960
Volkswagen Auto Lease Trust, Series 2012-A, Class A2,
0.66%, 11/20/14		1,422		1,425
World Omni Auto Receivables Trust, Series 2012-A, Class A2,
0.52%, 6/15/15		2,000		2,003
World Omni Auto Receivables Trust, Series 2012-B, Class A2,
0.43%, 11/16/15		3,000		3,000
				33,236
Credit Card - 3.1%
American Express Credit Account Master Trust Series 2012-5, Class A,
0.59%, 5/15/18		4,400		4,401
BA Credit Card Trust, Series 2010-A1, Class A1,
0.51%, 9/15/15		2,500		2,502
Chase Issuance Trust, Series 2012-A3, Class A3,
0.79%, 6/15/17		2,000		2,013
Chase Issuance Trust, Series 2012-A5, Class A5,
0.59%, 8/15/17		2,000		2,002
Chase Issuance Trust, Series 2012-A8, Class A8,
0.54%, 10/16/17		5,000		4,995
Dryrock Issuance Trust, Series 2012-1, Class A,
0.36%, 8/15/17		4,500		4,502
GE Capital Credit Card Master Note Trust, Series 2011-1, Class A,
0.76%, 1/15/17		1,500		1,507

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 - 7.5% continued
Credit Card - 3.1% continued
GE Capital Credit Card Master Note Trust, Series 2012-4, Class A,
0.51%, 6/15/18	$	2,000	$	2,005
Golden Credit Card Trust, Series 2012-5A, Class A,
0.79%, 9/15/17(1) (2)		3,000		3,008
Turquoise Card Backed Securities PLC, Series 2011-1A, Class A,
0.96%, 9/15/16(1) (2)		3,000		3,006
				29,941
Other - 1.0%
GE Dealer Floorplan Master Note Trust, Series 2011-1, Class A,
0.81%, 7/20/16		2,000		2,011
GE Dealer Floorplan Master Note Trust, Series 2012-4, Class A,
0.65%, 10/20/17		2,000		2,004
GE Equipment Midticket LLC, Series 2012-1, Class A3,
0.60%, 5/23/16		2,500		2,503
GE Equipment Small Ticket LLC, Series 2012-1A, Class A2,
0.85%, 11/21/14(1) (2)		1,000		1,002
GE Equipment Transportation LLC, Series 2012-2, Class A2,
0.47%, 4/24/15		1,000		1,000
Mercedes-Benz Master Owner Trust, Series 2012-BA, Class A,
0.48%, 11/15/16(1) (2)		1,250		1,250
				9,770
Total Asset-Backed Securities (Cost $72,859)				72,947
CORPORATE BONDS - 49.9%
Aerospace/Defense - 1.8%
United Technologies Corp.,
0.58%, 12/2/13		2,380		2,386
0.81%, 6/1/15		5,655		5,711
1.20%, 6/1/15		9,171		9,303
				17,400
Agriculture - 1.1%
Bunge Ltd. Finance Corp.,
5.35%, 4/15/14		4,010		4,219
Reynolds American, Inc.,
1.05%, 10/30/15		6,900		6,898
				11,117
Auto Manufacturers - 1.0%
Daimler Finance N.A. LLC,
1.08%, 9/27/13(1) (3)		1,000		994
0.92%, 3/28/14(1)		3,500		3,507
1.13%, 4/10/14(1) (2)		3,000		3,009
1.65%, 4/10/15(1) (2)		1,795		1,817
				9,327
Auto Parts & Equipment - 0.3%
Johnson Controls, Inc.,
4.88%, 9/15/13		2,600		2,676
Banks - 9.0%
Bank of America Corp.,
1.73%, 1/30/14		4,000		4,033
1.90%, 7/11/14		2,100		2,124
Bank of New York Mellon (The) Corp.,
0.55%, 10/23/15		11,000		10,994
BB&T Corp.,
1.01%, 4/28/14		1,863		1,875
Capital One Financial Corp.,
1.49%, 7/15/14		1,500		1,516
2.13%, 7/15/14		2,000		2,036
2.15%, 3/23/15		2,072		2,115
1.00%, 11/6/15		3,000		2,990
Citigroup, Inc.,
2.31%, 8/13/13		3,000		3,029
5.50%, 10/15/14		1,000		1,073
2.25%, 8/7/15		800		819
Goldman Sachs Group (The), Inc.,
4.75%, 7/15/13		2,000		2,042
1.31%, 2/7/14		4,500		4,513
5.13%, 1/15/15		2,000		2,149
HSBC USA, Inc.,
2.38%, 2/13/15		5,000		5,143
JPMorgan Chase & Co.,
1.12%, 1/24/14		2,000		2,013
1.06%, 5/2/14		2,000		2,014
1.88%, 3/20/15		3,000		3,054
0.98%, 10/15/15		3,500		3,502
1.10%, 10/15/15		7,000		7,000

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 49.9% continued
Banks - 9.0% continued
Morgan Stanley,
2.81%, 5/14/13	$	2,000	$	2,014
1.92%, 1/24/14		2,000		2,013
2.88%, 1/24/14		2,500		2,542
Wells Fargo & Co.,
1.23%, 6/26/15		6,500		6,561
1.50%, 7/1/15		7,000		7,121
0.51%, 10/28/15		3,000		2,973
				87,258
Beverages - 2.7%
Anheuser-Busch Cos., Inc.,
5.00%, 1/15/15		1,000		1,086
Anheuser-Busch InBev Worldwide, Inc.,
0.70%, 7/14/14		1,900		1,907
1.50%, 7/14/14		3,000		3,043
0.80%, 7/15/15		5,640		5,655
Coca-Cola (The) Co.,
0.75%, 11/15/13		2,000		2,007
Coca-Cola Enterprises, Inc.,
1.13%, 11/12/13		2,500		2,511
PepsiCo, Inc.,
0.75%, 3/5/15		8,000		8,029
SABMiller Holdings, Inc.,
1.85%, 1/15/15(1) (2)		2,000		2,040
				26,278
Biotechnology - 1.1%
Amgen, Inc.,
1.88%, 11/15/14		3,500		3,579
Gilead Sciences, Inc.,
2.40%, 12/1/14		7,000		7,219
				10,798
Chemicals - 0.7%
Air Products & Chemicals, Inc.,
4.15%, 2/1/13		3,000		3,009
Airgas, Inc.,
2.85%, 10/1/13		3,500		3,558
				6,567
Commercial Services - 0.3%
ERAC USA Finance LLC,
2.75%, 7/1/13(1)		1,000		1,011
2.25%, 1/10/14(1)		1,500		1,515
				2,526
Computers - 1.6%
Dell, Inc.,
0.91%, 4/1/14		3,400		3,419
Hewlett-Packard Co.,
6.13%, 3/1/14		3,387		3,561
1.86%, 9/19/14		2,000		1,982
International Business Machines Corp.,
0.88%, 10/31/14		3,000		3,025
0.55%, 2/6/15		1,500		1,500
0.75%, 5/11/15		2,000		2,012
				15,499
Diversified Financial Services - 11.5%
American Express Credit Corp.,
1.41%, 6/12/15		14,350		14,597
1.75%, 6/12/15		1,412		1,442
American Honda Finance Corp.,
2.38%, 3/18/13(1)		1,300		1,305
1.63%, 9/20/13(1)		1,800		1,816
0.53%, 11/3/14(1) (2)		1,710		1,711
1.45%, 2/27/15(1) (2)		2,000		2,032
1.00%, 8/11/15(1) (2)		6,000		6,034
Caterpillar Financial Services Corp.,
6.13%, 2/17/14		1,695		1,807
0.46%, 8/27/14		1,880		1,882
1.05%, 3/26/15		2,000		2,015
1.10%, 5/29/15		2,000		2,017
0.70%, 11/6/15		9,645		9,620
Charles Schwab (The) Corp.,
0.85%, 12/4/15		4,000		4,009
General Electric Capital Corp.,
1.16%, 1/7/14		2,500		2,519
0.94%, 4/7/14		3,000		3,016
1.02%, 4/24/14		2,500		2,518
0.57%, 9/15/14		2,640		2,637
2.15%, 1/9/15		2,000		2,054
0.91%, 11/12/15		2,925		2,928
Harley-Davidson Financial Services, Inc.,
1.15%, 9/15/15(1) (2)		3,000		3,008
Harley-Davidson Funding Corp.,
5.75%, 12/15/14(1) (2)		2,786		3,043
Hyundai Capital America,
1.63%, 10/2/15(1) (2)		2,000		2,012
John Deere Capital Corp.,
0.48%, 6/16/14		3,000		3,005

NORTHERN FUNDS QUARTERLY REPORT    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 49.9% continued
Diversified Financial Services - 11.5% continued
0.41%, 10/8/14	$	1,400	$	1,400
0.88%, 4/17/15		2,000		2,009
0.95%, 6/29/15		4,822		4,849
0.70%, 9/4/15		7,000		7,000
PACCAR Financial Corp.,
1.55%, 9/29/14		3,200		3,252
Toyota Motor Credit Corp.,
0.48%, 5/12/14		10,000		9,994
1.25%, 11/17/14		6,000		6,085
				111,616
Electric - 2.2%
Alabama Power Co.,
0.55%, 10/15/15		2,900		2,892
Commonwealth Edison Co.,
1.63%, 1/15/14		2,000		2,022
Dominion Resources, Inc.,
1.80%, 3/15/14		1,000		1,013
Florida Power Corp.,
0.65%, 11/15/15		3,500		3,495
Georgia Power Co.,
0.75%, 8/10/15		3,720		3,730
0.63%, 11/15/15		1,900		1,896
NextEra Energy Capital Holdings, Inc.,
2.55%, 11/15/13		3,000		3,047
1.61%, 6/1/14		1,000		1,011
1.20%, 6/1/15		2,000		2,014
				21,120
Food - 2.2%
General Mills, Inc.,
0.66%, 5/16/14		7,000		7,015
Kellogg Co.,
4.25%, 3/6/13		3,450		3,473
1.13%, 5/15/15		2,000		2,019
Kraft Foods Group, Inc.,
1.63%, 6/4/15(1) (2)		2,000		2,036
Unilever Capital Corp.,
0.45%, 7/30/15		7,000		6,973
				21,516
Healthcare - Products - 0.3%
DENTSPLY International, Inc.,
1.81%, 8/15/13		3,400		3,419
Healthcare - Services - 0.9%
Quest Diagnostics, Inc.,
1.16%, 3/24/14		2,000		2,012
Roche Holdings, Inc.,
5.00%, 3/1/14(1)		2,427		2,549
UnitedHealth Group, Inc.,
0.85%, 10/15/15		2,000		2,007
WellPoint, Inc.,
1.25%, 9/10/15		2,000		2,016
				8,584
Insurance - 1.4%
American International Group, Inc.,
3.00%, 3/20/15		3,000		3,122
Berkshire Hathaway Finance Corp.,
2.45%, 12/15/15		2,362		2,483
Metropolitan Life Global Funding I,
1.10%, 1/10/14(1)		1,500		1,507
New York Life Global Funding,
0.75%, 7/24/15(1) (2)		5,305		5,298
Prudential Financial, Inc.,
5.15%, 1/15/13		1,500		1,502
				13,912
Internet - 1.1%
Amazon.com, Inc.,
0.65%, 11/27/15		6,000		5,996
eBay, Inc.,
0.70%, 7/15/15		4,250		4,266
				10,262
Machinery - Construction & Mining - 0.2%
Caterpillar, Inc.,
0.95%, 6/26/15		2,030		2,047
Media - 1.5%
NBCUniversal Media LLC,
2.10%, 4/1/14		3,475		3,539
Time Warner Cable, Inc.,
6.20%, 7/1/13		2,000		2,055
Viacom, Inc.,
1.25%, 2/27/15		3,000		3,029
Walt Disney (The) Co.,
0.45%, 12/1/15		6,400		6,368
				14,991

FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 49.9% continued
Mining - 0.2%
Freeport-McMoRan Copper & Gold, Inc.,
1.40%, 2/13/15	$	2,500	$	2,495
Miscellaneous Manufacturing - 0.7%
Danaher Corp.,
1.30%, 6/23/14		2,000		2,022
Eaton Corp.,
0.95%, 11/2/15(1) (2)		4,000		4,012
General Electric Co.,
0.85%, 10/9/15		1,000		1,004
				7,038
Office/Business Equipment - 0.4%
Pitney Bowes, Inc.,
3.88%, 6/15/13		1,500		1,513
Xerox Corp.,
1.13%, 5/16/14		2,000		1,996
				3,509
Oil & Gas - 0.6%
Marathon Oil Corp.,
0.90%, 11/1/15		1,500		1,501
Phillips 66,
1.95%, 3/5/15(1) (2)		4,000		4,082
				5,583
Oil & Gas Services - 0.2%
Cameron International Corp.,
1.60%, 4/30/15		2,000		2,020
Pharmaceuticals - 1.7%
AbbVie, Inc.,
1.20%, 11/6/15(1) (2)		7,000		7,047
Express Scripts Holding Co.,
2.10%, 2/12/15(1) (2)		3,000		3,056
McKesson Corp.,
5.25%, 3/1/13		3,041		3,063
0.95%, 12/4/15		2,900		2,904
				16,070
Pipelines - 0.3%
Enterprise Products Operating LLC,
1.25%, 8/13/15		3,000		3,018
Real Estate Investment Trusts - 0.2%
HCP, Inc.,
2.70%, 2/1/14		2,000		2,036
Retail - 1.7%
Costco Wholesale Corp.,
0.65%, 12/7/15		8,250		8,255
McDonald’s Corp.,
0.75%, 5/29/15		2,000		2,014
Nordstrom, Inc.,
6.75%, 6/1/14		3,500		3,797
Target Corp.,
4.00%, 6/15/13		2,000		2,031
				16,097
Semiconductors - 0.6%
Broadcom Corp.,
1.50%, 11/1/13		2,000		2,017
Texas Instruments, Inc.,
0.45%, 8/3/15		3,500		3,482
				5,499
Software - 0.2%
Microsoft Corp.,
2.95%, 6/1/14		2,000		2,074
Telecommunications - 0.9%
AT&T, Inc.,
0.80%, 12/1/15		5,000		5,000
Verizon Communications, Inc.,
1.25%, 11/3/14		2,500		2,530
0.70%, 11/2/15		1,000		1,000
				8,530
Toys, Games & Hobbies - 0.3%
Mattel, Inc.,
5.63%, 3/15/13		3,000		3,029
Transportation - 1.0%
CSX Corp.,
5.75%, 3/15/13		3,300		3,334
FedEx Corp.,
7.38%, 1/15/14		3,094		3,306
Ryder System, Inc.,
6.00%, 3/1/13		3,000		3,023
				9,663
Total Corporate Bonds (Cost $481,137)				483,574

NORTHERN FUNDS QUARTERLY REPORT    5    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
COVERED BONDS - 1 .1%
Banks - 1.1%
Bank of Nova Scotia,
1.45%, 7/26/13(1) (2)	$	1,300	$	1,308
Canadian Imperial Bank of Commerce,
2.00%, 2/4/13(1) (2)		1,400		1,402
1.50%, 12/12/14(1) (2)		2,000		2,041
Cie de Financement Foncier S.A.,
2.13%, 4/22/13(1) (2)		1,000		1,005
National Bank of Canada,
1.65%, 1/30/14(1) (2)		1,500		1,520
Swedbank Hypotek AB,
0.76%, 3/28/14(1) (2)		3,000		3,011
				10,287
Total Covered Bonds (Cost $10,225)				10,287
FOREIGN ISSUER BONDS - 26.5%
Agriculture - 0.1%
BAT International Finance PLC,
1.40%, 6/5/15(1) (2)		1,000		1,014
Auto Manufacturers - 1.1%
Volkswagen International Finance N.V.,
0.92%, 4/1/14(1)		1,595		1,600
1.63%, 3/22/15(1) (2)		9,470		9,599
				11,199
Banks - 14.5%
Abbey National Treasury Services PLC,
1.89%, 4/25/14		2,000		1,995
Australia & New Zealand Banking Group Ltd.,
1.09%, 1/10/14(1)		2,000		2,013
Bank of Montreal,
0.78%, 9/11/15		8,000		8,033
0.80%, 11/6/15		5,000		4,993
Bank of Nova Scotia,
0.74%, 2/27/14		3,500		3,508
0.75%, 9/10/15		4,378		4,354
Barclays Bank PLC,
1.38%, 1/13/14		2,500		2,513
3.90%, 4/7/15		3,000		3,181
BNP Paribas S.A.,
1.25%, 1/10/14		3,465		3,476
3.06%, 12/20/14		3,500		3,618
Commonwealth Bank of Australia,
1.95%, 3/16/15		3,000		3,078
1.11%, 9/18/15(1) (2)		3,500		3,526
1.25%, 9/18/15		6,000		6,066
Cooperatieve Centrale Raiffeisen-Boerenleenbank B.A.,
0.52%, 7/25/13		1,500		1,501
Credit Suisse,
5.00%, 5/15/13		2,000		2,033
1.30%, 1/14/14		7,469		7,512
Deutsche Bank A.G.,
3.45%, 3/30/15		1,000		1,054
Export-Import Bank of Korea,
1.25%, 11/20/15		8,000		8,013
HSBC Bank PLC,
0.96%, 8/12/13(1)		2,000		2,007
1.13%, 1/17/14(1)		2,000		2,014
3.50%, 6/28/15(1) (2)		1,500		1,591
ING Bank N.V.,
1.95%, 9/25/15(1) (2)		9,422		9,526
National Australia Bank Ltd.,
1.51%, 1/30/14		3,200		3,231
1.07%, 4/11/14(1)		2,500		2,516
1.44%, 8/7/15		8,000		8,125
Nordea Bank Finland PLC,
1.23%, 4/9/14		3,000		3,024
Oesterreichische Kontrollbank A.G.,
1.13%, 7/6/15		2,000		2,025
Royal Bank of Canada,
0.63%, 4/17/14		2,000		2,004
1.45%, 10/30/14		2,000		2,034
1.15%, 3/13/15		4,000		4,043
Royal Bank of Scotland Group PLC,
2.55%, 9/18/15		3,000		3,070
Societe Generale S.A.,
1.40%, 4/11/14(1) (2)		3,000		3,005
Svenska Handelsbanken,
0.86%, 9/16/13		2,000		2,006
0.86%, 9/25/13		5,000		5,016
1.13%, 7/17/14		1,700		1,705
UBS A.G.,
1.31%, 1/28/14		4,500		4,528
Westpac Banking Corp.,
2.10%, 8/2/13		1,200		1,212
1.04%, 12/9/13		2,000		2,013
1.13%, 7/17/15(1) (2)		2,000		2,016

FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 26.5% continued
Banks - 14.5% continued
1.13%, 9/25/15	$	3,000	$	3,028
				140,206
Beverages - 0.5%
Heineken N.V.,
0.80%, 10/1/15(1) (2)		5,000		5,009
Chemicals - 0.4%
Potash Corp. of Saskatchewan, Inc.,
5.25%, 5/15/14		3,300		3,504
Food - 0.4%
TESCO PLC,
2.00%, 12/5/14(1) (2)		4,000		4,088
Healthcare - Products - 0.4%
Covidien International Finance S.A.,
1.88%, 6/15/13		2,000		2,014
1.35%, 5/29/15		2,000		2,027
				4,041
Mining - 1.5%
Barrick Gold Corp.,
1.75%, 5/30/14		3,000		3,042
BHP Billiton Finance USA Ltd.,
1.13%, 11/21/14		3,200		3,239
1.00%, 2/24/15		1,000		1,007
Rio Tinto Alcan, Inc.,
4.50%, 5/15/13		3,000		3,039
Rio Tinto Finance USA Ltd.,
5.88%, 7/15/13		2,000		2,054
Xstrata Finance Canada Ltd.,
2.85%, 11/10/14(1) (2)		2,000		2,053
				14,434
Miscellaneous Manufacturing - 1.0%
Eaton Corp. PLC,
4.90%, 5/15/13		2,500		2,541
Ingersoll-Rand Global Holding Co. Ltd.,
6.00%, 8/15/13		3,400		3,514
Pentair Finance S.A.,
1.35%, 12/1/15(1) (2)		2,000		1,998
Tyco Electronics Group S.A.,
1.60%, 2/3/15		1,500		1,522
				9,575
Multi-National - 0.3%
Inter-American Development Bank,
0.22%, 10/15/15(1) (2)		2,500		2,498
Oil & Gas - 3.7%
BP Capital Markets PLC,
0.91%, 3/11/14		3,000		3,017
0.70%, 11/6/15		8,900		8,887
Canadian Natural Resources Ltd.,
1.45%, 11/14/14		7,000		7,100
Petrobras International Finance Co.,
2.88%, 2/6/15		2,500		2,565
Shell International Finance B.V.,
3.10%, 6/28/15		5,000		5,297
0.63%, 12/4/15		5,000		5,018
Total Capital Canada Ltd.,
0.71%, 1/17/14		4,000		4,016
				35,900
Oil & Gas Services - 0.3%
Schlumberger Investment S.A.,
0.86%, 9/12/14(1)		3,100		3,120
Pharmaceuticals - 0.9%
GlaxoSmithKline Capital PLC,
0.75%, 5/8/15		3,000		3,015
Takeda Pharmaceutical Co. Ltd.,
1.03%, 3/17/15(1) (2)		4,750		4,769
Teva Pharmaceutical Finance III B.V.,
0.81%, 3/21/14		1,350		1,355
				9,139
Pipelines - 0.5%
TransCanada PipeLines Ltd.,
0.88%, 3/2/15		5,000		5,028
Regional - 0.2%
Province of Ontario Canada,
0.46%, 4/1/15		2,000		1,999
Sovereign - 0.3%
Netherlands Government Bond,
0.25%, 9/12/15(1) (2)		3,000		2,983

NORTHERN FUNDS QUARTERLY REPORT    7    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 26.5% continued
Telecommunications - 0.4%
Telefonica Emisiones S.A.U.,
5.86%, 2/4/13	$	3,500	$	3,512
Total Foreign Issuer Bonds (Cost $255,954)				257,249
U.S. GOVERNMENT AGENCIES - 5.8% (4)
Fannie Mae - 2.9%
0.50%, 10/22/15		3,000		3,004
0.46%, 10/30/15		5,000		5,001
0.50%, 11/6/15		10,000		10,010
0.50%, 11/6/15		5,000		5,000
0.52%, 12/24/15		5,000		5,002
				28,017
Federal Farm Credit Bank - 1.0%
0.30%, 7/18/14		3,000		3,002
0.22%, 5/14/15		4,000		3,998
0.24%, 7/20/15		3,000		3,000
				10,000
Federal Home Loan Bank - 0.3%
0.50%, 10/16/15		3,000		3,000
Freddie Mac - 1.6%
0.50%, 9/25/15		3,000		3,002
0.53%, 11/20/15		7,500		7,509
0.50%, 11/27/15		5,000		5,007
				15,518
Total U.S. Government Agencies (Cost $56,498)				56,535
U.S. GOVERNMENT OBLIGATIONS - 4.0%
U.S. Treasury Notes - 4.0%
0.25%, 12/15/14		7,000		7,000
1.25%, 8/31/15		7,000		7,170
1.25%, 9/30/15		5,000		5,125
0.25%, 10/15/15		7,000		6,984
1.25%, 10/31/15		2,000		2,051
0.25%, 12/15/15		10,000		9,970
				38,300
Total U.S. Government Obligations (Cost $38,273)				38,300
MUNICIPAL BONDS - 0.8%
New Jersey - 0.3%
Hudson County Improvement Authority Taxable Revenue Notes, Series O-2 (County Gtd.),
1.25%, 12/20/13		3,040		3,058
Pennsylvania - 0.5%
Philadelphia Authority for Industrial Development City Service Agreement TRB,
1.20%, 4/1/14		5,000		5,007
Total Municipal Bonds (Cost $8,058)				8,065
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(5) (6)		26,971,067	$	26,971
Total Investment Companies (Cost $26,971)				26,971
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.3%
Citizens Property Insurance Corp. Revenue Bonds, Series A3, High Risk Floating Notes,
1.85%, 6/1/13	$	3,000	$	3,018
Total Short-Term Investments (Cost $3,003)				3,018
Total Investments - 98.7% (Cost $952,978)				956,946
Other Assets less Liabilities - 1.3%				12,668
NET ASSETS - 100.0%			$	969,614

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 December 31, 2012, the value of these restricted illiquid securities amounted to approximately $123,465,000 or 12.7% of net assets. Additional information on each restricted illiquid security is as follows:

FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
AbbVie, Inc.,
1.20%, 11/6/15	11/5/12	$	6,995
American Honda Finance Corp.,
0.53%, 11/3/14	12/18/12		1,713
American Honda Finance Corp.,
1.45%, 2/27/15	2/21/12		1,999
American Honda Finance Corp.,
1.00%, 8/11/15	9/4/12-11/27/12		6,006
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
Commonwealth Bank of Australia,
1.11%, 9/18/15	9/10/12-12/27/12		3,513
Daimler Finance N.A. LLC,
1.13%, 4/10/14	4/2/12		3,000
Daimler Finance N.A. LLC,
1.65%, 4/10/15	10/12/12		1,820
Eaton Corp.,
0.95%, 11/2/15	11/14/12		3,997
Express Scripts Holding Co.,
2.10%, 2/12/15	2/7/12		2,985
GE Equipment Small Ticket LLC, Series 2012-1A, Class A2,
0.85%, 11/21/14	5/22/12		1,000
Golden Credit Card Trust, Series 2012-5A, Class A,
0.79%, 9/15/17	9/25/12		3,000
Harley-Davidson Financial Services, Inc.,
1.15%, 9/15/15	9/18/12		2,996
Harley-Davidson Funding Corp.,
5.75%, 12/15/14	1/26/12		3,030
Heineken N.V.,
0.80%, 10/1/15	10/2/12-11/5/12		4,999
HSBC Bank PLC,
3.50%, 6/28/15	9/6/12		1,585
Hyundai Capital America,
1.63%, 10/2/15	9/24/12		1,999
ING Bank N.V.,
1.95%, 9/25/15	9/18/12-12/6/12		9,482
Inter-American Development Bank,
0.22%, 10/15/15	11/19/12		2,500
Kraft Foods Group, Inc.,
1.63%, 6/4/15	5/30/12		1,995
Mercedes-Benz Master Owner Trust, Series 2012-BA, Class A,
0.48%, 11/15/16	12/4/12		1,250
National Bank of Canada,
1.65%, 1/30/14	1/24/11		1,500
Netherlands Government Bond,
0.25%, 9/12/15	9/5/12		2,977
New York Life Global Funding,
0.75%, 7/24/15	10/12/12-12/11/12		5,321
Pentair Finance S.A.,
1.35%, 12/1/15	11/19/12		1,999
Phillips 66,
1.95%, 3/5/15	3/7/12		3,998
Porsche Innovative Lease Owner Trust, Series 2012-1, Class A2,
0.44%, 2/23/15	10/11/12		1,000
SABMiller Holdings, Inc.,
1.85%, 1/15/15	1/11/12		2,000
Societe Generale S.A.,
1.40%, 11/4/14	4/11/14		3,000
Swedbank Hypotek AB,
0.76%, 3/28/14	3/21/11		3,000
Takeda Pharmaceutical Co. Ltd.,
1.03%, 3/17/15	7/9/12		4,750
TESCO PLC,
2.00%, 12/5/14	11/28/11		3,996
Turquoise Card Backed Securities PLC, Series 2011-1A, Class A,
0.96%, 9/15/16	10/6/11		3,000
Volkswagen International Finance N.V.,
1.63%, 3/22/15	8/22/12-11/27/12		9,609
Westpac Banking Corp.,
1.13%, 7/17/15	7/10/12		2,000
Xstrata Finance Canada Ltd.,
2.85%, 11/10/14	11/3/11		1,998

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

(4) 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.

NORTHERN FUNDS QUARTERLY REPORT    9    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ULTRA-SHORT FIXED INCOME FUND continued

(5) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 $4,809,000 with net purchases of approximately $22,162,000 during the nine months ended December 31, 2012.

At December 31, 2012, the quality distribution for the Ultra-Short Fixed Income Fund was:

QUALITY DISTRIBUTION*	% OF LONG-TERM INVESTMENTS
AAA		10.2	%
AA		16.7
A		41.2
A1		0.3
A2		0.1
BBB		18.3
Cash Equivalents		2.8
Not Rated		0.5
US Agency		5.9
US Treasury		4.0
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). 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 and 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.

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 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 Ultra-Short Fixed Income Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Asset-Backed Securities	$	—	$	72,947	(1)	$	—	$	72,947
Corporate Bonds		—		483,574	(1)		—		483,574
Covered Bonds		—		10,287	(1)		—		10,287
Foreign Issuer Bonds
Multi-National		—		—			2,498		2,498
Sovereign		—		—			2,983		2,983
All Other Industries		—		251,768	(1)		—		251,768
U.S. Government Agencies		—		56,535	(1)		—		56,535
U.S. Government Obligations		—		38,300	(1)		—		38,300
Municipal Bonds		—		8,065	(1)		—		8,065
Investment Companies		26,971		—			—		26,971
Short-Term Investments		—		3,018			—		3,018
Total Investments	$	26,971	$	924,494		$	5,481	$	956,946

(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 December 31, 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    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 12/31/12 (000S)
Foreign Issuer Bonds
Multi-National	$	—	$	—	$	—	$	—	$	(2	)	$	2,500	$	—	$	—	$	—	$	2,498
Soverign		—		—		—		6		—			2,977		—		—		—		2,983
Total	$	—	$	—	$	—	$	6	$	(2	)	$	5,477	$	—	$	—	$	—	$	5,481

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	952,978
Gross tax appreciation of investments	$	4,246
Gross tax depreciation of investments		(278	)
Net tax appreciation of investments	$	3,968

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

IDA - Industrial Development Authority

TRB - Tax Revenue Bonds

VRDB - Variable Rate Demand 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 percentage of total net assets.

The interest rates reflected in the Schedule of Investments represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, the current reset rate for floating rate securities, the 7-day for money market funds or, for interest-only or principal only securities, the current effective yield.

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

NORTHERN FUNDS QUARTERLY REPORT    11    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
U.S. GOVERNMENT AGENCIES - 49.2% (1)
Fannie Mae - 38.9%
Pool #555649,
7.50%, 10/1/32	$	142	$	173
Pool #745148,
5.00%, 1/1/36		724		788
Pool #893082,
3.03%, 9/1/36		339		364
Pool #AB6019,
3.50%, 8/1/42		1,047		1,120
Pool #AH1166,
4.50%, 12/1/40		300		329
Pool #AL1895,
3.50%, 6/1/42		1,055		1,138
Pool #AO8179,
3.50%, 9/1/42		1,022		1,093
Pool #AP2427,
3.50%, 8/1/42		1,067		1,152
Pool #AP2824,
3.50%, 7/1/42		1,044		1,116
Pool #AP4514,
3.50%, 9/1/42		1,093		1,175
Pool #AP6598,
3.50%, 9/1/42		526		570
Pool TBA,
4.00%, 1/15/40(2)		4,525		4,850
4.50%, 1/15/40(2)		1,900		2,052
5.00%, 12/31/40(2)		230		249
3.00%, 12/31/49(2)		4,250		4,444
Series 2007, Class 26C,
5.50%, 3/25/33		211		215
				20,828
Freddie Mac - 6.0%
1.25%, 5/12/17		1,790		1,831
Pool #1J0365,
3.01%, 4/1/37		415		444
Pool #1J2840,
3.02%, 9/1/37		617		662
Pool #410092,
2.29%, 11/1/24		43		44
Series 3730, Class PL,
4.50%, 1/15/33		222		225
				3,206
Government National Mortgage Association - 3.1%
Series 2010, Class 141A,
1.86%, 8/16/31		367		372
Series 2011, Class 31A,
2.21%, 12/16/35		549		561
Series 2011, Class 49A,
2.45%, 7/16/38		482		496
Series 2011, Class 49AB,
2.80%, 1/16/34		238		245
				1,674
Government National Mortgage Association I - 0.1%
Pool #268360,
10.00%, 4/15/19		16		19
Pool #270288,
10.00%, 6/15/19		17		19
				38
Government National Mortgage Association II - 1.1%
Pool #82581,
4.00%, 7/20/40		561		603
Total U.S. Government Agencies (Cost $26,054)				26,349
U.S. GOVERNMENT OBLIGATIONS - 41.2%
U.S. Treasury Inflation Indexed Notes - 5.4%
1.63%, 1/15/15		440		566
0.50%, 4/15/15		510		568
0.13%, 7/15/22		1,590		1,736
				2,870
U.S. Treasury Notes - 35.8%
0.25%, 12/15/15		8,645		8,619
0.75%, 12/31/17		4,395		4,402
1.13%, 12/31/19		945		943
1.63%, 11/15/22		5,240		5,183
				19,147
Total U.S. Government Obligations (Cost $22,002)				22,017

NORTHERN FUNDS QUARTERLY REPORT    1    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

U.S. GOVERNMENT FUND continued

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 30.4%
Northern Institutional Funds - U.S. Government Portfolio, 0.01%(3) (4)		16,261,541	$	16,262
Total Investment Companies (Cost $16,262)				16,262
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.9%
U.S. Treasury Bill,
0.14%, 5/30/13(5)	$	500	$	500
Total Short-Term Investments (Cost $500)				500
Total Investments - 121.7% (Cost $64,818)				65,128
Liabilities less Other Assets - (21.7)%				(11,621	)
NET ASSETS - 100.0%			$	53,507

(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 $10,647,000 during the nine months ended December 31, 2012.

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

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

At December 31, 2012, the U.S. Government Fund had open futures contracts as follows:

TYPE	NUMBER OF CONTRACTS			NOTIONAL AMOUNT (000S)		CONTRACT POSITION		CONTRACT EXP.		UNREALIZED GAINS (LOSSES) (000S)
10 Year U.S. Treasury Note		(24	)	$	3,187		Short		3/13	$	(11	)

At December 31, 2012, the quality distribution for the U.S. Government Fund was:

QUALITY DISTRIBUTION*	% OF LONG  TERM INVESTMENTS
U.S. Treasury		36.7	%
U.S. Agency		38.1
Cash Equivalents		25.2
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 and 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.

FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 U.S. Government Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
U.S. Government Agencies	$	—		$	26,349	(1)	$	—	$	26,349
U.S. Government Obligations		—			22,017	(1)		—		22,017
Investment Companies		16,262			—			—		16,262
Short-Term Investments		—			500			—		500
Total Investments	$	16,262		$	48,866		$	—	$	65,128
OTHER FINANCIAL INSTRUMENTS
Liabilities
Futures Contracts	$	(11	)	$	—		$	—	$	(11	)

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	64,960
Gross tax appreciation of investments	$	331
Gross tax depreciation of investments		(163	)
Net tax appreciation of investments	$	168

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.

The interest rates reflected in the Schedule of Investments represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, the current reset rate for floating rate securities, the 7-day for money market funds 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    3    FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

ARIZONA TAX-EXEMPT FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 96.6%
Arizona - 95.0%
Arizona Board of Regents University System Revenue Bonds, Series A, 5.00%, 6/1/21	$	500	$	598
Arizona State Health Facilities Authority Revenue Bonds, Series A, Banner Health, 3.75%, 1/1/39		2,000		1,907
4.00%, 1/1/43		3,000		3,000
Arizona State School Facilities Board COP, 5.25%, 9/1/23		2,000		2,276
Arizona State Transportation Board Highway Revenue Bonds, Series B, 5.00%, 7/1/30		1,000		1,130
Arizona State Transportation Board Subordinated Highway Revenue Refunding Bonds, Series A, 5.00%, 7/1/18		3,000		3,619
Arizona State University COP, Research Infrastructure Projects (AMBAC Insured), 5.00%, 9/1/30		2,000		2,106
Arizona State University System Revenue Refunding Bonds (AMBAC Insured), 5.00%, 7/1/27		1,450		1,576
Bullhead City Municipal Property Corp. Excise TRB (NATL-RE Insured), 5.00%, 7/1/23		1,000		1,080
Coconino & Yavapai Counties Joint Unified School District No. 9 G.O. Unlimited Bonds, Series B, School Improvement Project 2007 (Assured Guaranty Insured), 5.00%, 7/1/22		1,345		1,589
Gilbert Public Facilities Municipal Property Corp. Revenue Bonds, 5.50%, 7/1/28		1,000		1,154
Gilbert Public Facilities Municipal Property Corp. Revenue Refunding Bonds, 4.00%, 7/1/19		1,915		2,188
Glendale Water & Sewer Revenue Bonds, Sub Lien (AGM Insured), 5.00%, 7/1/25		2,000		2,328
Glendale Water & Sewer Revenue Bonds, Sub Lien (AMBAC Insured), Prerefunded, 5.00%, 7/1/13		2,000		2,047
Goodyear Public Improvement Corp. Municipal Facilities Revenue Bonds, 6.00%, 7/1/31		1,000		1,172
Goodyear Public Improvement Corp. Municipal Facilities Revenue Bonds, Series A (NATL-RE Insured), 5.00%, 7/1/22		1,000		1,151
Goodyear Public Improvement Corp. Municipal Facilities Revenue Refunding Bonds, Series B, 3.00%, 7/1/18		1,165		1,231
Goodyear Water & Sewer Revenue Bonds, Sub Lien Obligations (AGM Insured), 5.25%, 7/1/31		1,000		1,152
Greater Development Authority Infrastructure Revenue Bonds, Series 2, Santa Cruz County Jail, 5.00%, 8/1/28		2,000		2,167
5.25%, 8/1/31		1,005		1,101
Marana Municipal Property Corp. Municipal Facilities Revenue Bonds, Series A, 5.25%, 7/1/23		1,970		2,330
Maricopa County Community College District G.O. Unlimited Bonds, Series C, 3.00%, 7/1/22		2,000		2,143
Maricopa County Elementary School District No. 1 Phoenix G.O. Unlimited Bonds, Series B, School Improvement Project 2006, 4.50%, 7/1/21		1,190		1,362
Maricopa County Elementary School District No. 8 Osborn G.O. Limited Refunding Bonds (NATL-RE FGIC Insured), 4.70%, 7/1/14		1,000		1,050
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		748
Maricopa County High School District No. 210 Phoenix G.O. Unlimited Bonds, Series A, School Improvement, 2.25%, 7/1/22		520		524
4.00%, 7/1/26		500		559
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		1,258

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 - 96.6% continued
Arizona - 95.0% continued
Maricopa County School District No. 6 Washington Elementary G.O. Unlimited Bonds, Series B, 3.00%, 7/1/24	$	3,165	$	3,250
Maricopa County Unified School District No. 11 Peoria G.O. Limited Refunding Bonds, 5.00%, 7/1/21		2,300		2,822
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		1,131
Maricopa County Unified School District No. 41 Gilbert G.O. Limited Refunding Bonds, 4.00%, 7/1/21		525		594
5.00%, 7/1/21		1,500		1,815
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		1,141
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. 80 Chandler G.O. Unlimited Bonds, Series A-1, School Improvement Project 2010, 4.00%, 7/1/22		1,040		1,182
Maricopa County Unified School District No. 89 Dysart G.O. Unlimited Bonds, Series B, School Improvement Project 2006 (AMBAC Insured), 5.00%, 7/1/27		500		559
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		1,067
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		1,214
Mesa Utility System Revenue Refunding Bonds (NATL-RE FGIC Insured), 5.00%, 7/1/18		3,015		3,594
5.00%, 7/1/19		1,510		1,837
Mohave County Unified School District No. 20 Kingman G.O. Unlimited Bonds, Series C, School Improvement Project 2006 (Assured Guaranty Insured), 5.50%, 7/1/21		1,000		1,230
5.00%, 7/1/23		1,000		1,190
Northern University Research Projects COP (AMBAC Insured), 5.00%, 9/1/26		400		417
Northern University Revenue Bonds (AGM Insured), 3.25%, 6/1/27		320		328
3.38%, 6/1/28		385		397
3.50%, 6/1/29		415		431
3.63%, 6/1/30		640		668
3.75%, 6/1/31		540		568
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series A, Junior Lien, 3.50%, 7/1/20		500		554
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series B (AMT), Senior Lien, 5.25%, 7/1/16		1,000		1,132
Phoenix Civic Improvement Corp. Wastewater System Revenue Bonds, Junior Lien (NATL-RE Insured), 5.00%, 7/1/29		1,010		1,067
Phoenix Civic Improvement Corp. Wastewater System Revenue Refunding Bonds, Senior Lien, 5.50%, 7/1/20		1,690		2,069
5.50%, 7/1/21		1,080		1,319
Phoenix Civic Improvement Corp. Water System Revenue Bonds, Series A, Junior Lien, 5.00%, 7/1/20		1,280		1,563
5.00%, 7/1/39		530		608
Phoenix Civic Improvement Corp. Water System Revenue Refunding Bonds, Junior Lien, 3.00%, 7/1/20		1,400		1,542
Pima Country Sewer System Revenue Bonds, Series A, 5.00%, 7/1/23		1,100		1,332
Pima County Sewer Revenue Bonds, Series B, 5.00%, 7/1/25		1,000		1,178

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 96.6% continued
Arizona - 95.0% continued
Pima County Sewer System Revenue Bonds (AGM Insured), 5.00%, 7/1/23	$	1,350	$	1,626
Pima County Street & Highway Revenue Bonds, 4.00%, 7/1/22		1,970		2,228
Pima County Unified School District No. 1 Tucson G.O. Unlimited Refunding Bonds, 5.00%, 7/1/21		1,000		1,243
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		1,189
Pinal County Unified School District No. 43 Apache Junction G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 7/1/22		1,000		1,258
Prescott Valley Municipal Property Corp. Facilities Revenue Refunding Bonds, 5.00%, 1/1/24		1,835		2,128
Rio Nuevo Multi-purpose Facilities District Excise TRB, Sub Lien (Assured Guaranty Insured), 5.25%, 7/15/16		1,000		1,128
Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Series A, 5.00%, 1/1/37		1,000		1,088
Scottsdale Municipal Property Corp. Excise Tax Revenue Refunding Bonds, 5.00%, 7/1/30		2,675		3,388
5.00%, 7/1/34		1,480		1,887
Tempe G.O. Unlimited Bonds, 5.00%, 7/1/21		795		901
Tucson Airport Authority, Inc. Revenue Bonds (AMT), Sub Lien (NATL-RE Insured), 5.00%, 12/1/23		1,135		1,218
Tucson COP (Assured Guaranty Insured), 5.00%, 7/1/26		1,000		1,134
5.00%, 7/1/29		1,000		1,124
Tucson Refunding COP (AGM Insured), 4.00%, 7/1/21		1,885		2,087
Tucson Water System Revenue Bonds, 5.00%, 7/1/25		1,825		2,170
Tucson Water System Revenue Bonds, Series 2005-B (AGM Insured), 5.00%, 7/1/25		1,590		1,830
Yuma County Library District G.O. Unlimited Bonds (XLCA Insured), 5.00%, 7/1/23		1,000		1,137
5.00%, 7/1/28		1,945		2,175
				113,942
Puerto Rico - 1.6%
Puerto Rico Public Finance Corp. Commonwealth Appropriation Revenue Bonds, Series E (AMBAC Insured), Escrowed to Maturity, 5.50%, 8/1/27		1,350		1,891
Total Municipal Bonds (Cost $105,903)				115,833

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2.0%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01% (1) (2)		2,410,139	$	2,410
Total Investment Companies (Cost $2,410)				2,410
Total Investments - 98.6% (Cost $108,313)				118,243
Other Assets less Liabilities - 1.4%				1,674
NET ASSETS - 100.0%			$	119,917

(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 $2,250,000 during the nine months ended December 31, 2012.

(2) Investment in affiliated Portfolio. Northern Trust Investments, Inc. is the investment adviser to 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 December 31, 2012, the industry sectors for the Arizona Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Facilities		6.4	%
General		22.7
General Obligation		5.5
School District		23.1
Transportation		5.9
Utilities		6.9
Water		16.1
All other sectors less than 5%		13.4
Total		100.0	%

At December 31, 2012, the credit quality distribution for the Arizona Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		7.0	%
AA		68.4
A		20.9
BBB		1.6
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.

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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	115,833	(1)	$	—	$	115,833
Investment Companies		2,410		—			—		2,410
Total Investments	$	2,410	$	115,833		$	—	$	118,243

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	108,325
Gross tax appreciation of investments	$	10,015
Gross tax depreciation of investments		(97	)
Net tax appreciation of investments	$	9,918

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

DECEMBER 31, 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 DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 94.6%
California - 94.0%
Bay Area Government Association Infrastructure Financing Authority Revenue Bonds, State Payment Acceleration Notes (NATL-RE FGIC Insured), 5.00%, 8/1/17	$	2,630	$	2,796
5.00%, 8/1/17		485		487
Bay Area Toll Authority San Francisco Toll Bridge Revenue Bonds, 5.00%, 4/1/26		5,000		6,057
Brentwood Union School District G.O. Unlimited Refunding Bonds, 3.38%, 8/1/25		1,000		1,033
Cabrillo Community College District G.O. Unlimited Bonds, Series A, Partially Prerefunded (NATL-RE Insured), 5.00%, 8/1/27		1,500		1,589
Calfiornia State Department of Water System Resources Revenue Bonds, Series AN, Center Valley Project, 5.00%, 12/1/31		1,105		1,345
California State Department of Water Resources Supply Revenue Bonds, Series L, 5.00%, 5/1/19		5,000		6,182
California State Economic Recovery G.O. Unlimited Refunding Bonds, Series A, 5.00%, 7/1/19		5,000		6,171
California State G.O. Unlimited Bonds, 5.00%, 2/1/24		2,000		2,046
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		2,163
California State Health Facilities Financing Authority Revenue Bonds, Series A, Memorial Health Services, 4.00%, 10/1/21		1,000		1,155
California State Health Facilities Financing Authority Revenue Bonds, Series A, Scripps Health, 5.00%, 11/15/27		400		466
5.00%, 11/15/28		375		436
5.00%, 11/15/29		400		462
California State Health Facilities Financing Authority Revenue Bonds, Series B, Lucile Packard Childrens Hospital, 5.00%, 8/15/27		360		428
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Broad Museum Project, 5.00%, 6/1/21		9,610		12,133
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute, 5.75%, 7/1/30		1,000		1,003
California State Public Works Board Lease Revenue Bonds, Series D, Department of Justice, 5.25%, 11/1/16		1,000		1,004
California State Public Works Board Lease Revenue Bonds, Series D, Judicial Council Projects, 4.25%, 12/1/20		1,000		1,145
California State Public Works Board Lease Revenue Refunding Bonds, Series A, Department of Corrections State Prisons (AMBAC Insured), 5.25%, 12/1/13		615		642
California State Public Works Board Lease Revenue Refunding Bonds, Series A, Trustees California State University, 5.25%, 10/1/14		3,545		3,558
California State Public Works Board Lease Revenue Refunding Bonds, Series H, Department of Corrections & Rehabilitation, 5.00%, 6/1/19		2,000		2,169
California State Public Works Board Lease Revenue Refunding Bonds, Series J, Department of Corrections & Rehabilitation (AMBAC Insured), 5.00%, 1/1/19		1,300		1,437
California State Revenue Anticipation Notes, Series A-2, 2.50%, 6/20/13		5,000		5,050
California State University Systemwide Revenue Bonds, Series C (NATL-RE Insured), 5.00%, 11/1/28		1,175		1,286
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 9/1/18		2,980		3,588

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 94.6% continued
California - 94.0% continued
5.00%, 10/1/18	$	500	$	603
5.50%, 4/1/19		1,000		1,243
5.00%, 9/1/19		4,720		5,768
5.00%, 10/1/19		2,990		3,659
5.00%, 9/1/20		1,690		2,077
5.00%, 10/1/20		6,000		7,383
5.50%, 4/1/21		2,000		2,483
4.75%, 6/1/22		2,500		2,687
5.25%, 3/1/30		1,500		1,735
5.00%, 8/1/33		1,100		1,184
5.00%, 8/1/35		3,225		3,471
California State Various Purpose G.O. Unlimited Refunding Bonds, 5.00%, 9/1/23		5,000		6,132
5.00%, 9/1/30		6,110		6,905
Carlsbad Unified School District G.O. Unlimited CABS, 6.10%, 5/1/19(1)		1,250		1,070
Chula Vista Industrial Development Revenue Refunding Bonds, Series A, San Diego Gas & Electric, 1.65%, 7/1/18		6,500		6,571
Contra Costa Community College District G.O. Unlimited Refunding Bonds, 5.00%, 8/1/21		1,250		1,588
3.00%, 8/1/28		2,000		2,016
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		1,095
East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series B, 4.00%, 6/1/21		10,000		11,938
Eastern Municipal District Water & Sewer COP, Series H, 5.00%, 7/1/33		2,000		2,249
El Camino Community College District Capital Appreciation G.O. Unlimited Bonds, Series C, Election of 2002, 4.54%, 8/1/23(1)		9,940		7,153
El Dorado Irrigation District COP, Series A (Assured Guaranty Insured), 4.00%, 8/1/18		1,915		2,159
6.25%, 8/1/29		3,500		3,769
Escondido Revenue COP (AMBAC Insured), 4.00%, 9/1/17		500		546
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		1,943
Fremont Unified School District Alameda County G.O. Unlimited Refunding Bonds, 4.25%, 8/1/25		2,000		2,331
Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election of 2008, 5.38%, 8/1/44		1,500		1,763
Gilroy Unified School District G.O. Unlimited BANS, Escrowed to Maturity, 5.00%, 4/1/13		285		288
Gilroy Unified School District G.O. Unlimited BANS, Unrefunded Balance, 5.00%, 4/1/13		1,715		1,735
Golden State Tobacco Securitization Corp. Tobacco Settlement Enhanced Asset Backed Revenue Bonds, Series A (AMBAC Insured), 5.00%, 6/1/21		3,000		3,007
Golden State Tobacco Securitization Corp. Tobacco Settlement Enhanced Asset Backed Revenue Bonds, Series B (AMBAC Insured), Prerefunded, 5.00%, 6/1/13		2,500		2,550
Lodi Public Financing Authority Wastewater Revenue Refunding Bonds, Series A, 4.00%, 10/1/20		400		452
4.00%, 10/1/21		730		820
Long Beach Community College District G.O. Unlimited Bonds, Series B, Election of 2008, 3.00%, 8/1/32		1,500		1,422
Long Beach Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, 5.00%, 8/1/20		1,075		1,309
Los Altos School District G.O. Unlimited Refunding Bonds (AMBAC Insured), 5.00%, 8/1/19		2,000		2,261

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 94.6% continued
California - 94.0% continued
Los Angeles County Public Works Financing Authority Lease Revenue Bonds, Multiple Capital Projects II, 5.00%, 8/1/21	$	500	$	600
Los Angeles Department of International Airports Revenue Bonds, Series D, 5.25%, 5/15/29		5,000		5,906
Los Angeles Department of Water & Power Waterworks Revenue Bonds, Series C (NATL-RE Insured), 5.00%, 7/1/29		1,000		1,055
Los Angeles G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 9/1/14		5,000		5,386
Los Angeles Harbor Department Revenue Refunding Bonds, Series A (AMT), 5.00%, 8/1/19		1,500		1,803
Los Angeles Unified School District G.O. Unlimited Bonds, Series F, Election of 1997 (FGIC Insured), Prerefunded, 5.00%, 7/1/13		545		558
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series A, 2.00%, 7/1/21		2,000		1,997
Los Angeles Unified School District Refunding COP, Series A, Headquarters Building Projects, 5.00%, 10/1/20		1,500		1,782
5.00%, 10/1/21		3,820		4,544
Los Angeles Wastewater System Revenue Refunding Bonds, Series A (NATL-RE FGIC Insured), 6.00%, 6/1/21		1,185		1,588
Los Angeles Wastewater System Revenue Refunding Bonds, Subseries C, 5.00%, 6/1/23		1,935		2,409
Marin Community College District G.O. Unlimted Bonds, Series D, Election of 2004, 3.00%, 8/1/30		5,045		5,018
Marin County COP, 3.00%, 8/1/21		1,595		1,722
4.00%, 8/1/23		1,140		1,278
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		2,071
Midpeninsula Regional Open Space District Revenue Bonds, 5.25%, 9/1/34		2,000		2,256
Modesto Irrigation District Electric Revenue Refunding Bonds, Series A, 4.00%, 7/1/19		1,230		1,406
4.00%, 7/1/20		885		1,012
5.00%, 7/1/20		500		604
5.00%, 7/1/21		750		903
5.00%, 7/1/22		1,000		1,208
Modesto Wastewater Revenue Refunding Bonds, Series A (AGM Insured), 5.25%, 11/1/18		1,000		1,123
Mojave Water Agency COP, Series A, 5.00%, 6/1/20		355		425
5.00%, 6/1/23		665		772
Northern California Power Agency Revenue Bonds, Series A, 5.00%, 7/1/18		1,500		1,789
Orange County Water District COP, Series B (NATL-RE Insured), Prerefunded, 5.38%, 8/15/13		1,000		1,032
Pasadena Unified School District G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 11/1/18		2,500		2,832
5.00%, 11/1/19		2,275		2,593
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		2,693
Redlands Unified School District G.O. Unlimited Bonds, Election of 2008 (AGM Insured), 5.00%, 7/1/28		150		168
5.00%, 7/1/29		1,000		1,115
Rescue Union School District COP (Assured Guaranty Insured), Escrowed to Maturity, 4.38%, 10/1/13		2,775		2,861
Ross Elementary School District G.O. Unlimited Bonds, Election of 2006 (NATL-RE Insured), 5.25%, 8/1/27		455		488
Sacramento County Airport System Revenue Bonds, Senior Series B, 5.00%, 7/1/18		200		234

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 94.6% continued
California - 94.0% continued
Sacramento County Airport System Senior Revenue Bonds, 5.00%, 7/1/28	$	1,500	$	1,711
Sacramento Municipal Utility District Revenue Bonds, Series U (AGM Insured), 5.00%, 8/15/19		1,000		1,204
5.00%, 8/15/25		2,000		2,288
Sacramento Municipal Utility District Revenue Refunding Bonds, Series X, 5.00%, 8/15/20		1,950		2,399
San Diego Public Facilities Financing Authority Lease Revenue Refunding Bonds, Series A, Master Refunding Project, 4.00%, 3/1/19		1,150		1,280
4.25%, 3/1/20		1,130		1,278
San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, 4.00%, 5/15/20		1,495		1,726
San Diego Public Facilities Financing Authority Sewer Revenue Refunding Bonds, Senior Series B, 5.00%, 5/15/20		5,000		6,125
San Diego Regional Building Authority Revenue Bonds, Series A, County Operations Center & Annex Project, 4.00%, 2/1/19		3,615		4,113
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		1,972
San Francisco City & County Airports Commission Revenue Refunding Bonds, Second Series C (FSA Insured), 4.00%, 5/1/18		1,875		2,148
San Francisco City & County G.O. Unlimited Bonds, Series E, 4.00%, 6/15/31		1,425		1,539
San Francisco City & County G.O. Unlimited Refunding Bonds, Series R1, 5.00%, 6/15/20		3,000		3,759
San Francisco City & County International Airports Commission Revenue Refunding Bonds, Second Series D, 3.00%, 5/1/25		1,710		1,698
3.25%, 5/1/26		7,440		7,490
3.38%, 5/1/27		1,475		1,494
San Francisco City & County Public Utilities Commission Water Revenue Bonds, Subseries A, 5.00%, 11/1/20		2,000		2,501
5.00%, 11/1/28		1,500		1,801
San Francisco City & County Unified School District G.O. Unlimited Bonds, Series A, 4.00%, 6/15/28		500		540
4.00%, 6/15/29		2,000		2,148
San Francisco City & County Unified School District G.O. Unlimited Bonds, Series E, Election of 2006, 5.00%, 6/15/22		2,615		3,185
San Joaquin County Transportation Authority Measure K Limited TRB, Series A, 5.75%, 3/1/28		2,000		2,469
San Joaquin Hills Transportation Corridor Agency Capital Appreciation Revenue Bonds, Senior Lien, Escrowed to Maturity, 5.99%, 1/1/23(1)		5,000		4,029
San Jose Unified School District Santa Clara County G.O. Unlimited Refunding Bonds, 5.00%, 8/1/23		1,000		1,232
San Mateo County Transit District Refunding TRB, Series A (NATL-RE Insured), 4.75%, 6/1/28		3,785		4,082
San Mateo Union High School District G.O. Unlimited Capital Appreciation BANS, 1.35%, 2/15/15(1)		1,000		982
San Ramon Valley Unified School District G.O. Unlimited Refunding Bonds, 4.00%, 8/1/20		1,000		1,184
Santa Ana Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, 5.50%, 8/1/30		2,000		2,277
Santa Clara Unified School District G.O. Unlimited Bonds, Election of 2004 (AGM Insured), Prerefunded, 4.38%, 7/1/13		3,385		3,488
Santa Clara Unified School District G.O. Unlimited Bonds, Election of 2010, 3.00%, 7/1/20		1,000		1,109
4.50%, 7/1/32		2,000		2,211

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 94.6% continued
California - 94.0% continued
Santa Clara Unified School District G.O. Unlimited Bonds, Series A, Election of 2004, 5.00%, 7/1/29	$	1,500	$	1,743
5.00%, 7/1/30		4,040		4,673
5.00%, 7/1/34		1,000		1,128
Santa Clara Valley Water District Refunding & Improvement COP, Series A, 4.00%, 2/1/21		1,500		1,783
Santa Rosa Wastewater Revenue Bonds, Series A (AGM Insured), 5.25%, 9/1/27		1,255		1,400
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election of 2008, 6.00%, 7/1/43		2,000		2,478
Sequoia Union High School District G.O. Unlimited Refunding Bonds, 3.00%, 7/1/29		1,575		1,527
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		1,382
5.25%, 8/15/18		2,500		2,645
Southern California Public Power Authority Revenue Bonds, Milford Wind Corridor Phase, 5.25%, 7/1/23		3,075		3,805
Southern California Public Power Authority Revenue Bonds, Milford Wind Corridor Project 1, 5.00%, 7/1/24		1,240		1,461
Southern California Public Power Authority Revenue Bonds, Series A, 5.00%, 7/1/29		1,765		2,052
Southern California Public Power Authority Revenue Bonds, Series A, Linden Wind Energy, 5.00%, 7/1/30		2,025		2,347
Southern California Public Power Authority Revenue Bonds, Windy Point/Windy Flats Project 1, 5.00%, 7/1/30		2,500		2,962
Southern California State Public Power Authority Capital Appreciation Subordinate Revenue Refunding Bonds, Southern Transmission Project, 7.86%, 7/1/14(1)		1,000		986
University of California Revenue Bonds, Series C (NATL-RE Insured), Prerefunded, 4.75%, 5/15/13		5,000		5,132
4.75%, 5/15/13		2,850		2,925
University of California Revenue Bonds, Series F (AGM Insured), 4.75%, 5/15/24		200		205
Val Verde Unified School District G.O. Unlimited Bonds, Series A, Election of 2008, 5.25%, 8/1/27		2,125		2,455
Ventura County Community College District Capital Appreciation G.O. Unlimited Bonds, Series C, Election of 2002, 6.76%, 8/1/17(1)		1,615		1,469
7.34%, 8/1/18(1)		1,635		1,436
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election of 2002, 5.50%, 8/1/33		1,000		1,175
West Valley-Mission Community College District Capital Appreciation G.O. Unlimited Bonds, Series B, 4.56%, 8/1/16(1)		1,115		1,074
West Valley-Mission Community College District G.O. Unlimited Refunding Bonds, 5.00%, 8/1/24		3,180		3,962
Western Riverside County Trust & Wastewater Finance Authority Revenue Bonds, Western Municipal Water District Improvement Project (Assured Guaranty Insured), 5.13%, 9/1/29		1,645		1,857
Westlands Water District Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 9/1/23		1,500		1,822
				368,154
Puerto Rico - 0.6%
Puerto Rico Public Finance Corp. Revenue Bonds, Series E, Commonwealth Appropriation (AMBAC Insured), Escrowed to Maturity, 5.50%, 8/1/27		1,550		2,171
Total Municipal Bonds (Cost $345,666)				370,325

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA INTERMEDIATE TAX-EXEMPT FUND continued

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 4 .1%
Northern Funds - California Municipal
Money Market Fund, 0.01%(2) (3)		15,941,587	$	15,942
Total Investment Companies (Cost $15,942)				15,942
Total Investments - 98.7% (Cost $361,608)				386,267
Other Assets less Liabilities - 1.3%				5,193
NET ASSETS - 100.0%			$	391,460

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

(2) Investment in affiliated Fund. Northern Trust Investments, Inc. is the investment adviser to the Fund.

(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 $3,307,000 with net purchases of approximately $12,635,000 during the nine months ended December 31, 2012.

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the California Intermediate Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Airport		5.3	%
General		8.6
General Obligation		23.2
Higher Education		6.2
Power		7.1
School District		15.2
Water		10.7
All other sectors less than 5%		23.7
Total		100.0	%

At December 31, 2012, the credit quality distribution for the California Intermediate Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		2.5	%
AA		58.7
A		32.1
BBB		0.6
SP1+/MIG1		0.2
SP1/MIG1		1.8
Cash and Equivalents		4.1
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.

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

DECEMBER 31, 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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	370,325	(1)	$	—	$	370,325
Investment Companies		15,942		—			—		15,942
Total Investments	$	15,942	$	370,325		$	—	$	386,267

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	361,630
Gross tax appreciation of investments	$	25,067
Gross tax depreciation of investments		(430	)
Net tax appreciation of investments	$	24,637

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

CABS - Capital Appreciation Bonds

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

TRB - Tax Revenue Bonds

The interest rates reflected in the Schedule of Investments represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, the current reset rate for floating rate securities, the 7-day for money market funds 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

CALIFORNIA TAX-EXEMPT FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 89.0%
California - 88.1%
Alameda County Water District Financing Authority System Revenue Refunding Bonds, 3.25%, 6/1/33	$	1,050	$	1,066
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		1,154
Brentwood Infrastructure Financing Authority Water Revenue Bonds, 5.75%, 7/1/38		3,595		4,069
Burlingame Financing Authority Storm Drainage Revenue Bonds, 3.00%, 7/1/32		500		465
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded, 5.00%, 8/1/27		1,500		1,589
California State G.O. Unlimited Refunding Bonds, 5.00%, 9/1/20		5,000		6,145
4.50%, 10/1/29		2,000		2,163
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Scripps Research Institute, 5.75%, 7/1/30		250		251
California State Infrastructure & Economic Development Bank Revenue Bonds, Series A, Broad Museum Project, 5.00%, 6/1/21		5,000		6,313
California State Public Works Board Lease Revenue Bonds, Series A, Department of General Services-Buildings 8 & 9, 6.00%, 4/1/25		1,400		1,692
California State Public Works Board Lease Revenue Refunding Bonds, Series B, Various Community College Project (AMBAC Insured), 5.63%, 3/1/16		960		964
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 10/1/20		5,000		6,152
5.25%, 3/1/30		3,500		4,048
5.00%, 8/1/35		1,000		1,076
California State Various Purpose G.O. Unlimited Refunding Bonds, 5.00%, 9/1/30		2,285		2,582
Chabot-Las Positas Community College District G.O. Unlimited Bonds, Series B, Election 2004 (AMBAC Insured), 5.00%, 8/1/30		850		932
Contra Costa Community College District G.O. Unlimited Refunding Bonds, 3.00%, 8/1/28		300		302
Corona-Norco Unified School District G.O. Unlimited Bonds, Series C, Election 2006 (AGM Insured), 5.50%, 8/1/39		500		588
Cupertino Union School District G.O. Unlimited Bonds, Series A, 3.13%, 8/1/30		780		782
East Bay Municipal Utility District Water System Revenue Refunding Bonds, Series B, 5.00%, 6/1/23		5,000		6,492
El Camino Community College District G.O. Unlimited CABS, Series C, Election 2002, 8.67%, 8/1/33(1)		5,000		2,025
El Dorado Irrigation District COPS, Series A (Assured Guaranty Insured), 6.25%, 8/1/29		1,500		1,615
Fremont Union High School District Santa Clara County G.O. Unlimited Bonds, Series A, Election 2008, 5.38%, 8/1/44		3,500		4,113
Golden State Tobacco Securitization Corp. Enhanced Asset Backed Revenue Bonds, Series A (AMBAC Insured), 5.00%, 6/1/21		2,000		2,005
Huntington Beach Union High School District G.O. Unlimited Bonds, Election 2004 (AGM Insured), 5.00%, 8/1/27		750		793
Long Beach Community College District G.O. Unlimited Bonds, Series B, Election 2008, 3.00%, 8/1/32		3,855		3,656
Los Angeles Department of Waterworks & Power Revenue Bonds, Series B, 5.00%, 7/1/20		5,000		6,153
Los Angeles Harbor Department Revenue Bonds, Escrowed to Maturity, 7.60%, 10/1/18		25		30

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 - 89.0% continued
California - 88.1% continued
Los Angeles Municipal Improvement Corp. Lease Revenue Bonds, Series E, Real Property, 4.63%, 9/1/20	$	550	$	629
Marin Community College District G.O. Unlimited Bonds, Series D, Election 2004, 3.00%, 8/1/30		2,500		2,486
3.00%, 8/1/31		1,455		1,435
Marin County COPS, 4.25%, 8/1/34		1,575		1,675
Midpeninsula Regional Open Space District Financing Authority Revenue Bonds, 5.25%, 9/1/34		600		677
5.50%, 9/1/41		2,500		2,847
Modesto Irrigation District Capital Improvements COPS, Series A, 5.75%, 10/1/29		1,500		1,724
6.00%, 10/1/39		2,000		2,292
Newport Mesa Unified School District G.O. Unlimited CABS, Election 2005, 14.15%, 8/1/33(1)		10,000		4,051
Palomar Pomerado Health G.O. Unlimited Convertible CABS, Series A, Election of 2004 (Assured Guaranty Insured), 3.52%, 8/1/38(1)		5,000		4,346
Placentia-Yorba Linda Unified School District G.O. Unlimited Bonds, Series B, Election 2002 (NATL-RE FGIC Insured), Prerefunded, 5.50%, 8/1/14		1,500		1,623
Rio Hondo Community College District G.O. Unlimited Bonds, Series B, Election 2009, 5.50%, 8/1/30		1,605		1,874
Ross Elementary School District G.O. Unlimited Bonds, Election 2006 (NATL-RE Insured), 5.25%, 8/1/27		850		911
Ross Valley School District G.O. Unlimited Bonds, Series B, Election of 2010, 5.00%, 8/1/37		700		810
San Diego County Water Authority COPS, Series 2008 A (AGM Insured), 5.00%, 5/1/38		2,000		2,235
San Diego Public Facilities Financing Authority Sewer Revenue Bonds, Senior Series A, 5.00%, 5/15/28		1,500		1,738
San Francisco City & County Public Utilities Commission Revenue Bonds, Subseries A, Water System Improvement Program, 5.00%, 11/1/28		3,000		3,602
San Francisco City & County G.O. Unlimited Bonds, Series E, 4.00%, 6/15/31		1,000		1,080
San Francisco City & County International Airports Commission Revenue Refunding Bonds, Second Series D, 3.00%, 5/1/25		4,785		4,751
3.38%, 5/1/27		400		405
San Francisco City & County Public Utilities Commission Water Revenue Refunding Bonds, Series C, 4.00%, 11/1/31		2,000		2,168
San Francisco City & County Unified School District G.O. Unlimited Bonds, Series A, 4.00%, 6/15/28		500		540
4.00%, 6/15/29		695		746
San Francisco State Building Authority Lease Revenue Bonds, Series A, Department of General Services Lease, 5.00%, 10/1/13		935		967
San Joaquin County Transportation Authority Measure K Limited TRB, Series A, 5.25%, 3/1/31		2,075		2,439
San Mateo County Transit District Tax Revenue Refunding Bonds, Series A (NATL-RE Insured), 4.75%, 6/1/28		1,000		1,079
San Mateo Foster City School District G.O. Unlimited Bonds, Series C, Election of 2008, 3.50%, 8/1/39		1,695		1,646
Santa Clara Electric Revenue Refunding Bonds, Series A, 6.00%, 7/1/31		1,195		1,465
Santa Rosa Wastewater Revenue Refunding Bonds, Series A (NATL-RE FGIC Insured), 5.25%, 9/1/16		35		38

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 89.0% continued
California - 88.1% continued
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election 2008, 6.00%, 7/1/43	$	2,025	$	2,509
Sequoia Union High School District G.O. Unlimited Refunding Bonds, 3.00%, 7/1/28		1,530		1,506
Southern California Public Power Authority Revenue Bonds, Series 1, Windy Point/Windy Flats Project, 5.00%, 7/1/24		1,000		1,190
Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, 6.00%, 7/1/27		2,520		3,015
Sunnyvale School District G.O. Unlimited Bonds, Series D, Election 2004, 4.00%, 9/1/42		2,790		2,915
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		2,889
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election 2002, 5.50%, 8/1/33		4,065		4,775
Western Riverside County Trust & Wastewater Finance Authority Revenue Bonds, Municipal Water Distribution Improvement Project (Assured Guaranty Insured), 5.13%, 9/1/29		2,000		2,258
Westlands Water District Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 9/1/32		750		855
				143,908
Puerto Rico - 0.9%
Puerto Rico Public Finance Corp. Revenue Bonds, Series E (CIFG-TCRS AGM-CR Insured), Escrowed to Maturity, 6.00%, 8/1/26		1,000		1,447
Total Municipal Bonds (Cost $131,170)				145,355
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 3.3%
Northern Funds - California Municipal Money Market Fund, 0.01%(2)(3)		5,448,833	$	5,449
Total Investment Companies (Cost $5,449)				5,449
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 6.7%
California State RANS, Series A-2, 2.50%, 6/20/13	$	10,870	$	10,980
Total Short-Term Investments (Cost $10,984)				10,980
Total Investments - 99.0% (Cost $147,603)				161,784
Other Assets less Liabilities - 1.0%				1,620
NET ASSETS - 100.0%			$	163,404

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

(2) 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 $8,737,000 during the nine months ended December 31, 2012.

(3) Investment in affiliated Fund. Northern Trust Investments, Inc. is the investment adviser to the Fund.

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the California Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
General		15.8	%
General Obligation		27.4
School District		17.0
Water		16.5
All other sectors less than 5%		23.3
Total		100.0	%

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

CALIFORNIA TAX-EXEMPT FUND continued

At December 31, 2012, the credit quality distribution for the California Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AA		62.7	%
A		27.1
SP1/MIG1		6.8
Cash and Equivalents		3.4
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.

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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	145,355	(1)	$	—	$	145,355
Investment Companies		5,449		—			—		5,449
Short-Term Investments		—		10,980			—		10,980
Total Investments	$	5,449	$	156,335		$	—	$	161,784

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	147,604
Gross tax appreciation of investments	$	14,564
Gross tax depreciation of investments		(384	)
Net tax appreciation of investments	$	14,180

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

CABS - Capital Appreciation Bonds

COPS - Certificates of Participation

CIFG - IXIS Financial Guaranty

CR - Custody Receipt

FGIC - Financial Guaranty Insurance Corporation

G.O. - General Obligation

NATL-RE - National Public Finance Guarantee Corporation

RANS - Revenue Anticipation Notes

TCRS - Transferable Custodial Receipts

TRB - Tax Revenue Bonds

The interest rates reflected in the Schedule of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds 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

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 96.9%
Alabama - 2.5%
Alabama State Port Authority Docks Facilities Revenue Bonds, 6.00%, 10/1/40	$	5,000	$	5,972
Camden Industrial Development Board Exempt Facilities Revenue Refunding Bonds, Series A, Weyerhaeuser Co., Prerefunded, 6.13%, 12/1/13		1,000		1,053
Selma Industrial Development Board Gulf Opportunity Zone Revenue Bonds, International Paper Co. Projects, 5.80%, 5/1/34		1,350		1,518
				8,543
Arizona - 4.1%
Maricopa County Pollution Control Corp. Variable Revenue Refunding Bonds, Series A, Public Service Co. of New Mexico, Palo Verde Project, 6.25%, 1/1/38		4,000		4,554
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series A, Junior Lien, 5.00%, 7/1/40		5,000		5,504
Pima County IDA Revenue Bonds, Series A, Tucson Electric Power Co., 5.25%, 10/1/40		1,000		1,092
Pima County IDA Revenue Bonds, Tucson Electric Power Co., 5.75%, 9/1/29		3,000		3,183
				14,333
California - 8.8%
California State Educational Facilities Authority Revenue Bonds, Dominican University, 5.00%, 12/1/25		890		934
5.00%, 12/1/36		2,000		2,045
California State Municipal Finance Authority COP Revenue Bonds, Community Hospitals of Central California, 5.50%, 2/1/39		4,000		4,341
California State Municipal Finance Authority Revenue Bonds, Series A, University of La Verne, 6.13%, 6/1/30		3,300		3,856
6.25%, 6/1/40		1,000		1,163
California Statewide Communities Development Authority Revenue Bonds, California Baptist University, 7.25%, 11/1/31		2,000		2,459
California Statewide Communities Development Authority Revenue Bonds, Series A, California Baptist University, 5.50%, 11/1/38		2,000		2,145
Golden State Tobacco Securitization Corp. Tobacco Settlement Asset Backed Revenue Bonds, Senior Series A-1, 5.75%, 6/1/47		4,000		3,777
Golden State Tobacco Securitization Corp. Tobacco Settlement Asset Backed Revenue Bonds, Series A-5, Prerefunded, 7.88%, 6/1/13		500		516
San Francisco City & County Airports Commission Revenue Bonds, Series E, 6.00%, 5/1/39		5,000		5,858
Tobacco Securitization Authority of Southern California Tobacco Settlement Revenue Bonds, Senior Series A1, 5.00%, 6/1/37		4,000		3,551
				30,645
Colorado - 4.1%
Denver City & County Airport System Revenue Bonds, Series A, 5.25%, 11/15/36		5,000		5,730
Prairie Center Metropolitan District No. 3 Limited Property Tax Supported G.O. Limited Bonds, Series A, 5.40%, 12/15/31		4,000		4,008
Regional Transportation District Private Activity Revenue Bonds, Denver Transportation Partners, 6.00%, 1/15/41		4,000		4,668
				14,406
Connecticut - 0.8%
Connecticut State Health & Educational Facilities Authority Revenue Bonds, Series G, Sacred Heart University, 5.13%, 7/1/26		1,250		1,394
5.38%, 7/1/31		1,250		1,399
				2,793
Delaware - 0.6%
Delaware State EDA Revenue Refunding Bonds, Gas Facilities Delmarva Power, 5.40%, 2/1/31		2,000		2,254

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 96.9% continued
District of Columbia - 1.7%
District of Columbia Revenue Bonds, Cesar Chavez Charter Schools, 7.88%, 11/15/40	$	5,265	$	5,932
Florida - 4.9%
Broward County Airport Exempt Facility Revenue Bonds (AMT), Learjet, Inc. Project, 7.50%, 11/1/20		5,430		5,855
Capital Trust Agency Revenue Refunding Bonds, Series A, Air Cargo Aero Miami FX, 5.35%, 7/1/29		4,880		5,113
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 5.75%, 10/1/27		3,290		3,887
Jacksonville Economic Development Commission Health Care Facilities Revenue Refunding Bonds, Series A, Proton Therapy Institute, 6.00%, 9/1/17		1,835		2,002
Sterling Hill Community Development District Capital Improvement Special Assessment Revenue Bonds, Series B, 5.50%, 11/1/10(1) †		155		—
				16,857
Georgia - 1.8%
Atlanta Water & Wastewater Revenue Bonds, Series A, 6.25%, 11/1/39		5,000		6,145
Illinois - 6.8%
Illinois State Finance Authority Revenue Bonds, Series A, Elmhurst Memorial, 5.63%, 1/1/37		4,000		4,377
Illinois State Finance Authority Revenue Bonds, Series A, Provena Health, 7.75%, 8/15/34		3,500		4,428
Illinois State Finance Authority Revenue Bonds, Series A, Three Crowns Park Plaza, 5.88%, 2/15/38		4,000		4,105
Illinois State Finance Authority Revenue Bonds, Silver Cross & Medical Centers, 6.88%, 8/15/38		3,000		3,601
7.00%, 8/15/44		2,000		2,402
Railsplitter Tobacco Settlement Authority Revenue Bonds, 5.50%, 6/1/23		1,000		1,192
6.00%, 6/1/28		3,000		3,632
				23,737
Indiana - 6.1%
Indiana Finance Authority Midwestern Disaster Relief Revenue Bonds, Series A, Ohio Valley Electric Corp. Project, 5.00%, 6/1/39		2,000		2,057
Indiana State Finance Authority Educational Facilities Revenue Bonds, Marian University Project, 6.50%, 9/15/30		3,000		3,386
6.38%, 9/15/41		2,000		2,199
Indiana State Finance Authority Environmental Variable Revenue Bonds, Series B, Duke Energy Project, 6.00%, 8/1/39		2,000		2,308
Indiana State Municipal Power Agency Revenue Bonds, Series B, 6.00%, 1/1/39		2,000		2,379
North Manchester Revenue Bonds, Series A, Peabody Retirement Community Project, 7.25%, 7/1/33(1)		750		210
Rockport PCR Refunding Bonds, Series B, Indiana Michigan Power Co. Project, 6.25%, Mandatory Put 6/2/14		3,265		3,487
Vigo County Hospital Authority Revenue Bonds, Union Hospital, Inc., 5.70%, 9/1/37(2)		2,000		2,078
8.00%, 9/1/41		2,500		3,093
				21,197
Louisiana - 6.3%
Louisiana State Gas & Fuels TRB, Series B, Second Lien, 5.00%, 5/1/39		5,000		5,735
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Westlake Chemical Corp., 6.50%, 8/1/29		2,000		2,345
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A, Woman’s Hospital Foundation, 5.88%, 10/1/40		4,000		4,546

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 96.9% continued
Louisiana - 6.3% continued
Louisiana State Local Government Environmental Facilities & Community Development Authority Revenue Bonds, Series A-1, Westlake Chemical Corp., 6.50%, 11/1/35	$	2,000	$	2,340
Louisiana State Public Facilities Authority Revenue Bonds, Belle Chasse Educational Foundation Project, 6.75%, 5/1/41		1,250		1,446
New Orleans Aviation Board Gulf Opportunity Zone Revenue Bonds, Series A, Passenger Facility Charge Projects, 5.25%, 1/1/41		5,000		5,490
				21,902
Maine - 1.8%
Maine State Health & Higher Educational Facilities Authority Revenue Bonds, Maine General Medical Center, 7.50%, 7/1/32		2,000		2,560
6.75%, 7/1/41		3,000		3,615
				6,175
Maryland - 3.5%
Anne Arundel County Special Obligation Tax Allocation Bonds, National Business Park-North Project, 6.10%, 7/1/40		4,335		4,713
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Doctors Community Hospital, 5.75%, 7/1/38		3,000		3,294
Maryland State Health & Higher Educational Facilities Authority Revenue Bonds, Series A, Adventist Health Care, 6.25%, 1/1/31		1,500		1,784
6.13%, 1/1/36		2,000		2,312
				12,103
Massachusetts - 1.9%
Massachusetts State Bay Transportation Authority Sales TRB, Senior Series A, 5.00%, 7/1/28		5,000		6,470
Michigan - 1.2%
Royal Oak Hospital Finance Authority Revenue Bonds, William Beaumont Hospital, 8.25%, 9/1/39		2,000		2,553
Royal Oak Hospital Finance Authority Revenue Refunding Bonds, Series W, William Beaumont Hospital, 6.00%, 8/1/39		1,500		1,699
				4,252
Minnesota - 1.1%
Rochester Health Care & Housing Revenue Refunding Bonds, Series A, Samaritan Bethany, 7.38%, 12/1/41		3,500		3,939
Mississippi - 0.8%
Warren Country Gulf Opportunity Zone Revenue Bonds, Series A, International Paper Co., 5.80%, 5/1/34		2,530		2,844
Missouri - 2.3%
Grundy County IDA Health Facilities Revenue Bonds, Wright Memorial Hospital, 6.45%, 9/1/29		2,530		2,885
6.75%, 9/1/34		1,750		1,972
St. Louis County IDA Senior Living Facilities Revenue Bonds, Series A, St. Andrews Resources for Seniors, 6.38%, 12/1/41		3,005		3,136
				7,993
Montana - 1.3%
Forsyth PCR Refunding Bonds, Series A, Portland General Electric Co., 5.00%, 5/1/33		4,000		4,547
New Jersey - 3.8%
New Jersey State EDA Revenue Bonds, MSU Student Housing Project - Provident Group - Montclair LLC, 5.88%, 6/1/42		3,000		3,403
New Jersey State EDA Revenue Bonds, Cigarette Tax, Prerefunded, 5.75%, 6/15/14		5,500		5,934
New Jersey State Health Care Facilities Financing Authority Revenue Bonds, St. Joseph’s Health Care System, 6.63%, 7/1/38		3,000		3,465
Tobacco Settlement Financing Corp. Revenue Bonds, Prerefunded, 6.75%, 6/1/13		500		513
				13,315

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 96.9% continued
New Mexico - 1.7%
New Mexico State Capital Projects G.O. Unlimited Bonds, 5.00%, 3/1/18	$	5,000	$	6,039
New York - 2.4%
New York State Dormitory Authority Non State Supported Debt Revenue Bonds, Orange Regional Medical Center, 6.13%, 12/1/29		3,235		3,611
6.25%, 12/1/37		2,000		2,213
New York State Environmental Facilities Corp. Clean & Drinking Water Revolving Revenue Bonds, Series A, 5.25%, 6/15/27		2,000		2,394
New York State Liberty Development Corp. Revenue Bonds, Series A, National Sports Museum Project, 6.13%, 2/15/19(1)		2,200		—
				8,218
North Carolina - 2.4%
North Carolina State Capital Facilities Finance Agency Revenue Bonds, Series B, Duke University Project, 5.00%, 10/1/38		5,000		5,787
North Carolina State Medical Care Commission Health Care Facilities First Mortgage Revenue Bonds, Series A, Deerfield Community, 6.13%, 11/1/38		2,000		2,189
North Carolina State Municipal Power Agency No. 1 Catawba Electric Revenue Bonds, Series A, Escrowed to Maturity, 5.50%, 1/1/13		320		320
				8,296
Ohio - 6.4%
American Municipal Power-Ohio, Inc. Revenue Bonds, Series A, Prairie State Energy Campus Project, 5.25%, 2/15/25		2,000		2,293
Lucas County Health Care Facilities Revenue Refunding & Improvement Bonds, Series A, Lutheran Homes, 7.00%, 11/1/45		5,000		5,562
Ohio State Air Quality Development Authority Revenue Bonds, Series E, Ohio Valley Electric Corp., 5.63%, 10/1/19		3,000		3,444
Ohio State Air Quality Development Authority Revenue Refunding Bonds, Series B, Columbus Southern Power Co., 5.80%, 12/1/38		4,000		4,534
Toledo-Lucas County Port Authority Revenue Refunding Bonds, CSX Transportation, Inc. Project, 6.45%, 12/15/21		5,075		6,412
				22,245
Pennsylvania - 4.2%
Allegheny County Redevelopment Authority Tax Allocation Bonds, Pittsburgh Mills Project, 5.60%, 7/1/23		2,000		2,068
Butler County Hospital Authority Revenue Bonds, Butler Health System Project, 7.13%, 7/1/29		3,000		3,800
Lancaster County Hospital Authority Revenue Bonds, Series A, Brethren Village Project, 6.50%, 7/1/40		1,450		1,553
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Edinboro University Foundation, 5.88%, 7/1/38		1,400		1,532
6.00%, 7/1/43		2,500		2,823
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Shippensburg University, 6.25%, 10/1/43		2,000		2,332
Pennsylvania State Higher Educational Facilities Authority Student Housing Revenue Bonds, Series A, Student Association, Inc. Project, 6.75%, 9/1/32		490		491
				14,599
Rhode Island - 0.9%
Tobacco Settlement Financing Corp. Asset Backed Revenue Bonds, Series A, 6.25%, 6/1/42		3,000		3,039
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

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 96.9% continued
Texas - 9.5%
Dallas County Flood Control District G.O. Unlimited Refunding Bonds, 7.25%, 4/1/32	$	1,000	$	1,007
HFDC of Central Texas, Inc. Retirement Facilities Revenue Bonds, Series A Legacy at Willow Bend Project, 5.75%, 11/1/36		3,000		3,057
Texas State Municipal Gas Acquisition & Supply Corp. III Revenue Bonds, 5.00%, 12/15/32		1,500		1,603
Texas State PFA Charter School Finance Corp. Education Revenue Bonds, Series A, Cosmos Foundation, Inc., 6.20%, 2/15/40		5,000		6,004
Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, LBJ Infrastructure, 7.00%, 6/30/40		5,000		6,071
Texas State Private Activity Bond Surface Transportation Corp. Revenue Bonds, Senior Lien, NTE Mobility, 6.88%, 12/31/39		4,000		4,776
Travis County Health Facilities Development Corp. Revenue Bonds, Westminster Manor Project, 7.00%, 11/1/30		1,000		1,200
7.13%, 11/1/40		2,000		2,385
University of Texas Permanent University Fund Revenue Refunding Bonds, Series B, 5.25%, 7/1/28		5,000		6,803
				32,906
Virginia - 0.5%
Virginia State Small Business Financing Authority Revenue Bonds (AMT), Senior Lien, Elizabeth River Crossings, 6.00%, 1/1/37		1,500		1,690
Washington - 2.1%
Pend Oreille County Public Utility District No. 1 Box Canyon Revenue Bonds, 5.25%, 1/1/41		2,500		2,748
Washington State Health Care Facilities Authority Revenue Bonds, Central Washington Health Services, 7.00%, 7/1/39		4,000		4,638
				7,386
Wisconsin - 0.6%
PFA Airport Facilities Senior Revenue Refunding Bonds (AMT), 5.00%, 7/1/42		2,000		2,027
Total Municipal Bonds (Cost $296,029)				336,829
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 2.0%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01%(3) (4)		6,864,823	$	6,865
Total Investment Companies (Cost $6,865)				6,865
Total Investments - 98.9% (Cost $302,894)				343,694
Other Assets less Liabilities - 1.1%				3,848
NET ASSETS - 100.0%			$	347,542

(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 traded 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 to 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 purchases of approximately $3,871,000 during the nine months ended December 31, 2012.

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

Percentages shown are based on Net Assets.

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

HIGH YIELD MUNICIPAL FUND continued

At December 31, 2012, the industry sectors for the High Yield Municipal Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Airport		8.3	%
Development		13.9
General		9.5
Higher Education		11.3
Medical		17.9
Nursing Homes		6.3
Pollution		6.0
Transportation		6.2
All other sectors less than 5%		20.6
Total		100.0	%

At December 31, 2012, the credit quality distribution for the High Yield Municipal Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		4.7	%
AA		7.3
A		14.9
BBB		49.4
BB		8.0
B		2.1
Not rated		11.6
Cash and Equivalents		2.0
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.

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 High Yield Municipal Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	336,829	(1)	$	—	$	336,829
Investment Companies		6,865		—			—		6,865
Total Investments	$	6,865	$	336,829		$	—	$	343,694

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	302,894
Gross tax appreciation of investments	$	43,876
Gross tax depreciation of investments		(3,076	)
Net tax appreciation of investments	$	40,800

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on the date of purchase for discounted notes, the current reset rate for floating rate securities, the 7-day for money market funds 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:

AMT - Alternative Minimum Tax

COP - Certificate of Participation

EDA - Economic Development Authority

G.O. - General Obligation

IDA - Industrial Development Authority

PCR - Pollution Control Revenue

PFA - Public Finance Authority

TRB - Tax Revenue Bonds

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 83.8%
Alabama - 0.5%
University of Alabama Genereal Revenue Refunding Bonds, Series A, 5.00%, 7/1/25	$	10,000	$	12,340
Arizona - 3.2%
Arizona State School Facilities Board COPS, 5.25%, 9/1/23		10,000		11,378
Arizona State Transportation Board Excise TRB, Maricopa County Regional Area Road Project, 5.00%, 7/1/15		5,000		5,544
5.25%, 7/1/20		10,000		12,440
Arizona State Water Infrastructure Finance Authority Revenue Refunding Bonds, Series A, 5.00%, 10/1/22		6,750		8,667
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		5,054
Mesa Utility System Revenue Refunding Bonds (NATL-RE FGIC Insured), 5.00%, 7/1/19		6,500		7,906
Phoenix Civic Improvement Corp. Airport Revenue Bonds, Series A, Junior Lien, 5.00%, 7/1/22		3,000		3,552
Phoenix Civic Improvement Corp. Wastewater System Revenue Refunding Bonds, Series B, Senior Lien (NATL-RE Insured), 5.00%, 7/1/13		5,000		5,119
Phoenix Civic Improvement Corp. Water System Revenue Refunding Bonds, Junior Lien, 5.00%, 7/1/25		5,000		6,024
Phoenix Civic Plaza Improvement Corp. Excise TRB, Subseries A (BHAC-CR FGIC Insured), 5.00%, 7/1/41		5,000		5,372
Scottsdale Preservation Authority Excise Tax Revenue Refunding Bonds, 5.25%, 7/1/24		5,990		7,178
				78,234
California - 5.5%
Cabrillo Community College District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Partially Prerefunded, 5.00%, 8/1/27		5,000		5,295
California State Department of Veterans Affairs Home Purchase Revenue Bonds, Series A, 3.15%, 12/1/22		5,000		5,226
3.50%, 12/1/25		3,000		3,089
California State Educational Facilities Authority Revenue Bonds, Series T-1, Stanford University, 5.00%, 3/15/39		6,180		8,330
California State G.O. Unlimited Refunding Bonds, 5.00%, 9/1/20		1,000		1,229
6.25%, 11/1/34		5,000		6,105
California State G.O. Unlimited Bonds, Series 2007 (AMBAC Insured), Unrefunded Balance, 5.00%, 10/1/18		75		75
California State Various G.O. Unlimited Bonds, Series 2007, Unrefunded Balance, 5.75%, 5/1/30		135		136
California State Various Purpose G.O. Unlimited Refunding Bonds, 4.00%, 9/1/27		5,000		5,452
4.00%, 9/1/28		5,000		5,408
3.50%, 9/1/31		5,000		4,973
Carlsbad Unified School District G.O. Unlimited Convertible CABS, Series C, Election 2006, 6.92%, 8/1/35(1)		11,850		7,539
Contra Costa Transportation Authority Sales TRB, Series B, 5.00%, 3/1/25		1,750		2,094
East Bay Municipal District Water Utility System Revenue Refunding Bonds, Series B, 5.00%, 6/1/23		10,000		12,984
El Camino Community College District G.O. Unlimited CABS, Series C, Election 2002, 4.91%, 8/1/24(1)		11,580		7,800
Long Beach Harbor Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured), 5.00%, 5/15/21		1,000		1,092
Los Angeles County Sanitation Districts Financing Authority Revenue Bonds, Series A, Capital Project (AGM Insured), Partially Prerefunded, 5.00%, 10/1/21		4,000		4,135

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 - 83.8% continued
California - 5.5% continued
Los Angeles Department of Airports Revenue Bonds, Series A, 5.25%, 5/15/22	$	5,000	$	5,975
Los Angeles Department of Power & Waterworks Revenue Bonds, Series A, 5.00%, 7/1/43		10,000		11,491
Los Angeles G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 9/1/14		6,205		6,684
Los Angeles Unified School District G.O. Unlimited Bonds, Series A (AGM Insured), Prerefunded, 5.25%, 7/1/13		1,350		1,384
Metropolitan Water District of Southern California Revenue Bonds, Series A, 5.00%, 7/1/32		5,000		5,622
San Francisco City & County Airports Commission Revenue Bonds, Series E, 5.25%, 5/1/32		2,500		2,899
San Francisco City & County International Airports Commission Second Series Revenue Refunding Bonds, 3.50%, 5/1/29		1,000		1,014
San Mateo Union High School District G.O. Unlimited Capital Appreciation BANS, 1.35%, 2/15/15(1)		3,250		3,191
Sequoia Union High School District G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 7/1/22		1,100		1,197
Southern California State Public Power Authority Revenue Bonds, Series B, Southern Transmission Project, 6.00%, 7/1/27		5,000		5,982
University of California General Revenue Bonds, Series Q, 5.25%, 5/15/27		2,500		2,922
University of California General Revenue Bonds, Series U, 5.00%, 5/15/22		5,000		6,091
				135,414
Colorado - 2.2%
Adams & Arapahoe County Joint School District No. 28J Aurora G.O. Unlimited Refunding Bonds (State Aid Withholding), 5.00%, 12/1/23		4,000		5,008
Colorado State Building Excellent Schools Today COPS, Series H, 4.00%, 3/15/25		3,365		3,720
4.00%, 3/15/32		2,500		2,646
Denver City & County Airport System Revenue Bonds, Series A (AMT), 5.00%, 11/15/24		5,000		5,856
Denver City & County Airport System Revenue Bonds, Series B, 5.00%, 11/15/25		7,000		8,363
Denver City & County Excise Tax Revenue Refunding Bonds, Series A (Assured Guaranty Insured), 6.00%, 9/1/23		6,550		8,111
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		6,577
Denver City & County School District No. 1 G.O. Unlimited Bonds, Series B (State Aid Withholding), 5.00%, 12/1/32		8,010		9,565
Metro Wastewater Reclamation District Sewer Revenue Bonds, Series A, 5.00%, 4/1/21		2,500		3,172
				53,018
Connecticut - 3.0%
Connecticut State G.O. Unlimited Bonds, Series D, 5.00%, 11/1/23		7,500		9,267
5.00%, 11/1/25		10,000		12,216
Connecticut State G.O. Unlimited Bonds, Series E, 5.00%, 9/15/25		10,900		13,471
5.00%, 10/15/26		4,140		5,102
Connecticut State G.O. Unlimited Refunding Bonds, Series B (NATL-RE Insured), 5.00%, 6/1/15		5,000		5,313
Connecticut State Housing Mortgage Finance Authority Program Revenue Bonds, Subseries D-1, 0.75%, 5/15/14		6,350		6,361
Connecticut State Special Tax Obligation Revenue Refunding Bonds, Transportation Infrastructure, 5.00%, 1/1/24		17,855		22,194
				73,924

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 83.8% continued
Delaware - 0.3%
Delaware State G.O. Unlimited Bonds, 5.00%, 7/1/23	$	5,530	$	6,867
District of Columbia - 1.0%
District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, 5.25%, 10/1/29		1,000		1,167
6.00%, 10/1/35		5,000		6,030
5.50%, 10/1/39		10,500		12,122
Metropolitan Washington Airports Authority System Revenue Bonds, Series C (AMT), 5.00%, 10/1/20		3,000		3,598
5.00%, 10/1/26		1,500		1,746
				24,663
Florida - 4.0%
Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 9/1/24		5,000		5,774
5.00%, 9/1/25		1,000		1,147
Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT), 5.00%, 9/1/23		2,500		2,853
Citizens Property Insurance Corp. Senior Secured Revenue Bonds, Series A-1, 5.00%, 6/1/21		10,000		11,729
Florida State Board of Public Education G.O. Unlimited Bonds, Series A, Capital Outlay, 5.25%, 6/1/28		11,135		12,971
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series B, Capital Outlay, 2.25%, 6/1/22		3,000		3,032
Florida State Board of Public Education G.O. Unlimited Refunding Bonds, Series D, 5.00%, 6/1/24		5,000		6,085
Florida State Department of Transportation Right of Way G.O. Unlimited Bonds, 5.25%, 7/1/37		12,475		14,233
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, 5.00%, 7/1/15		1,000		1,104
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 5.25%, 10/1/19		5,000		6,106
Florida State Municipal Power Agency Revenue Bonds, Series A, Stanton II Project, 5.00%, 10/1/26		2,870		3,401
Florida State Ports Financing Commission Revenue Refunding Bonds, Series B (AMT), State Transportation Trust Fund, 5.38%, 10/1/29		3,395		3,986
Gainesville Utilities System Revenue Bonds, Series A, Prerefunded, 5.25%, 10/1/13		1,120		1,162
5.25%, 10/1/13		1,065		1,105
Greater Orlando Aviation Authority Airport Facilities Revenue Refunding Bonds, Series A (AMT) (AGM Insured), 5.00%, 10/1/16		400		458
Jea Water & Sewer Revenue Bonds, Series B, 3.85%, 10/1/37		2,500		2,523
Marco Island Utility System Revenue Bonds (NATL-RE Insured), Prerefunded, 5.25%, 10/1/13		2,520		2,614
Miami-Dade County Expressway Authority Toll System Revenue Bonds, Series B (NATL-RE FGIC Insured), 5.25%, 7/1/25		2,525		2,666
Miami-Dade County Water & Sewer System Revenue Refunding Bonds, Series B (AGM Insured), 5.25%, 10/1/20		3,000		3,711
5.25%, 10/1/22		2,500		3,102
Palm Coast Utility System Revenue Bonds (NATL-RE Insured), 5.25%, 10/1/21		1,000		1,029
Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.50%, 10/1/15		5,815		6,156
				96,947
Georgia - 2.7%
Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, 5.50%, 1/1/38		10,000		11,589
Atlanta Airport Revenue Bonds, Series A, 5.00%, 1/1/29		2,140		2,507
5.00%, 1/1/31		2,270		2,647
Atlanta Airport Revenue Bonds, Series B, 5.00%, 1/1/34		3,065		3,512

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 - 83.8% continued
Georgia - 2.7% continued
Georgia State G.O. Unlimited Bonds, Series B, 5.75%, 8/1/13	$	5,130	$	5,296
Georgia State G.O. Unlimited Bonds, Series C, 5.00%, 7/1/13		5,745		5,883
Georgia State G.O. Unlimited Refunding Bonds, Series C, 4.00%, 9/1/22		5,000		6,026
4.00%, 10/1/22(2)		5,000		6,029
5.00%, 9/1/23		6,775		8,679
Georgia State G.O. Unlimited Refunding Bonds, Series I, 5.00%, 7/1/20		10,000		12,681
5.00%, 7/1/21		1,100		1,412
				66,261
Hawaii - 0.1%
Hawaii State Airports System Revenue Bonds, Series A, 5.25%, 7/1/29		2,000		2,347
Illinois - 3.0%
Chicago Midway Airport Revenue Bonds, Series B (AGM Insured), 5.38%, 1/1/18		2,625		2,634
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		2,006
Chicago O’Hare International Airport Passenger Facility Charge Revenue Refunding Bonds, Series B (AMT), 5.00%, 1/1/26		2,500		2,814
Chicago Sales TRB, Series A, 5.25%, 1/1/38		6,100		7,025
Cook County Sales TRB, 5.00%, 11/15/37		5,000		5,789
Glenview G.O. Unlimited Refunding Bonds, Series A, 3.00%, 12/1/20		1,500		1,657
Illinois State Build Sales TRB, 5.00%, 6/15/19		5,000		6,100
Illinois State Educational Facilities Authority Adjustable Medium Term Revenue Bonds, Field Museum, 4.60%, Mandatory Put 11/1/15		4,250		4,627
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, 5.00%, 3/1/34		1,000		1,135
5.25%, 3/1/40		2,500		2,802
Illinois State Municipal Electric Agency Power Supply Revenue Bonds (NATL-RE FGIC Insured), 5.00%, 2/1/25		2,000		2,210
Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL-RE-IBC-FGIC Insured), 5.25%, 2/1/27		1,830		2,053
Illinois State Sales TRB, 5.25%, 6/15/23		9,735		9,946
Illinois State Toll Highway Authority Senior Priority Revenue Bonds, Series A (AGM Insured), 5.00%, 1/1/18		5,000		5,488
Illinois State Unemployment Insurance Fund Building Receipts Revenue Bonds, Series B, 5.00%, 6/15/19		2,540		2,800
Lake County Community Consolidated School District No. 46 Grayslake G.O. Unlimited Bonds (AGM Insured), Prerefunded, 5.13%, 11/1/15		805		910
Lake County Community Consolidated School District No. 46 Grayslake G.O. Unlimited Bonds (AGM Insured), Unrefunded Balance, 5.13%, 11/1/24		195		216
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		2,409
Metropolitan Pier & Exposition Authority Revenue CABS, Series B, McCormick Place Project, 11.09%, 12/15/41(1)		24,000		5,925
				74,244
Indiana - 1.3%
Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien, CWA Authority, 5.25%, 10/1/31		5,750		6,802
5.25%, 10/1/38		5,980		6,909

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 83.8% continued
Indiana - 1.3% continued
Indiana State Municipal Power Agency Revenue Bonds, Series A, Power Supply System (AMBAC Insured), 5.00%, 1/1/24	$	13,060	$	14,428
Merrillville Multi School Building Corp. First Mortgage Revenue Bonds (State Aid Withholding), 5.25%, 7/15/26		1,000		1,163
Porter County Jail Building Corp. First Mortgage Revenue Refunding Bonds (AGM Insured), 5.50%, 7/10/21		1,000		1,192
5.50%, 1/10/24		1,135		1,370
				31,864
Iowa - 0.3%
Ankeny G.O. Unlimited Bond Anticipation Project Notes, Series B, 1.50%, 6/1/13		4,250		4,253
Ankeny G.O. Unlimited Bond Anticipation Project Notes, Series C, 1.00%, 6/1/14		2,000		2,004
				6,257
Kansas - 1.0%
Johnson County Unified School District No. 512 G.O. Unlimited Refunding Bonds, Series A, Shawnee Mission, 3.00%, 10/1/15		4,145		4,422
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 Sales Tax Revenue Refunding Bonds, Series E, 4.00%, 10/1/16		1,505		1,689
4.00%, 10/1/17		2,320		2,654
Wichita Water & Sewer Utility Revenue Bonds (NATL-RE FGIC Insured), Prerefunded, 5.25%, 10/1/13		4,000		4,148
				24,414
Louisiana - 2.7%
Lafayatte Utilities Revenue Refunding Bonds, 5.00%, 11/1/25(2)		12,740		15,140
Louisiana State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 7/15/21		20,000		25,324
5.00%, 7/15/22		15,000		19,093
Louisiana State Gas & Fuels Tax Revenue Refunding Bonds, Series A-1, 5.00%, 5/1/25		5,000		6,169
				65,726
Maryland - 3.3%
Frederick County Public Facilities G.O. Unlimited Bonds, Series A, 5.00%, 8/1/20		2,300		2,900
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series, 5.00%, 3/1/15		1,500		1,648
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series C, 4.00%, 8/15/21		5,000		6,026
Maryland State Department of Transportation Consolidated Revenue Bonds, 5.00%, 6/1/21		8,630		10,766
Maryland State G.O. Unlimited Bonds, First Series B, 4.50%, 3/15/24		10,000		11,647
Maryland State G.O. Unlimited Bonds, Series B, 5.00%, 8/1/21		10,000		12,254
Maryland State Local Facilities Loan Capital Improvement G.O. Unlimited Bonds, Series A, 5.00%, 3/1/16		5,000		5,700
Maryland State Local Facilities Loan G.O. Unlimited Bonds, First Series C, 4.00%, 8/15/16		20,000		22,444
Montgomery County G.O. Unlimited Bonds, Series A, Consolidated Public Improvement, 5.00%, 11/1/21		5,750		7,235
				80,620
Massachusetts - 5.6%
Massachusetts Bay Transportation Assessment Authority Revenue Bonds, Series A, 5.25%, 7/1/31		2,285		3,054
5.25%, 7/1/34		500		576
Massachusetts State Bay Transportation Authority Sales Tax Revenue Refunding Bonds, Senior Series A-1, 5.25%, 7/1/30		5,000		6,563

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 - 83.8% continued
Massachusetts - 5.6% continued
Massachusetts State Development Finance Agency Revenue Bonds, Series B-1, Harvard University, 5.00%, 10/15/28	$	10,000	$	12,050
Massachusetts State G.O. Limited BABS, Consolidated Loan, 5.31%, 1/1/30		500		607
Massachusetts State G.O. Limited Refunding Bonds, Series B, 5.25%, 8/1/21		2,500		3,217
Massachusetts State G.O. Limited Refunding Bonds, Series B (AGM Insured), 5.25%, 9/1/25		500		662
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series J1, Partners Healthcare System, 5.25%, 7/1/29		5,000		5,704
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series L, Institute Technology, 5.00%, 7/1/23		5,660		7,370
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series M, TUFTS University, 5.25%, 2/15/26		1,250		1,621
Massachusetts State Health & Educational Facilities Authority Variable Revenue Bonds, Series Y, Harvard University Issue, 0.03%, 7/1/35		10,000		10,000
Massachusetts State Housing Finance Agency Single Family Housing Revenue Bonds, Series 162 (FNMA/ FHLMC Insured), 3.45%, 12/1/37		3,500		3,431
Massachusetts State School Building Authority Sales Tax Revenue Refunding Bonds, Senior Series A, 5.00%, 8/15/21		15,000		19,051
5.00%, 8/15/22		5,000		6,385
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), Prerefunded, 5.00%, 8/15/15		8,395		9,362
5.00%, 8/15/15		1,290		1,440
Massachusetts State School Building Authority Sales TRB, Series A (AGM Insured), Prerefunded, 5.00%, 8/15/15		10,000		11,163
Massachusetts State School Building Authority Sales TRB, Series A (AMBAC Insured), 5.00%, 8/15/37		5,000		5,626
Massachusetts State Special Obligation Revenue Bonds, Series A, Consolidated Loan (AGM Insured), 5.50%, 6/1/18		500		616
5.50%, 6/1/21		500		650
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Series 14, State Revolving Fund, 5.00%, 8/1/17		1,470		1,754
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Subseries 16B, State Revolving Fund, 3.00%, 8/1/13		6,500		6,605
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, Subseries A, New Bedford Program (NATL-RE FGIC Insured), 4.75%, 2/1/26		1,555		1,559
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B (AGM Insured), 5.25%, 8/1/29		4,000		5,356
5.25%, 8/1/30		2,695		3,616
5.25%, 8/1/32		1,000		1,340
Massachusetts State Water Resources Authority General Revenue Refunding Bonds, Series B (G.O. of Authority Insured), 5.00%, 8/1/26		5,000		6,066
Massachusetts State Water Resources Authority Revenue Bonds, Series A (G.O. of Authority Insured) Escrowed to Maturity, 6.50%, 7/15/19		1,925		2,283
				137,727
Michigan - 2.1%
Caledonia Community Schools G.O. Unlimited Refunding Bonds (NATL-RE Q-SBLF Insured), 5.00%, 5/1/20		1,140		1,242
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		7,993

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 83.8% continued
Michigan - 2.1% continued
Michigan State Building Authority Revenue Refunding Bonds, Series II-A, Facilities Program, 5.00%, 10/15/27	$	10,000	$	11,678
Michigan State Environmental Program G.O. Unlimited Refunding Bonds, 5.00%, 11/1/19		5,000		6,208
3.00%, 11/1/20		10,000		11,055
Michigan State Finance Authority Revenue Bonds, Series A, Unemployment Obligation Assessment, 5.00%, 7/1/19		5,000		6,181
Michigan State Municipal Bond Authority Revenue Bonds, Clean Water State Revolving Fund, 4.75%, 10/1/23		4,785		5,118
Michigan State Trunk Line Revenue Refunding Bonds, 5.00%, 11/15/21		2,500		3,118
				52,593
Minnesota - 1.2%
Minneapolis-St. Paul Metropolitan Airports Commission Revenue Refunding Bonds, Senior Series B (AMT), 5.00%, 1/1/22		2,500		2,881
Minnesota G.O. Unlimited State Trunk Highway Bonds, Series B, 5.00%, 8/1/21		4,450		5,715
Minnesota State G.O. Unlimited Bonds, Series A, 5.00%, 10/1/20		5,000		6,361
Minnesota State Various Purpose G.O. Unlimited Bonds, Series A, 5.00%, 8/1/23		11,750		14,926
				29,883
Mississippi - 0.2%
Mississippi State G.O. Unlimited Bonds, Series A, Capital Improvement Projects, 5.00%, 10/1/29		5,000		5,998
Mississippi State Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured), 5.40%, 6/1/38		25		26
				6,024
Missouri - 1.4%
Missouri State Board of Public Buildings Special Obligation Revenue Refunding Bonds, Series A, 5.00%, 10/1/20		12,760		16,144
2.00%, 10/1/22		12,835		12,774
Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Refunding Bonds, Series A, State Revolving Funds, 5.00%, 1/1/22		5,060		6,165
				35,083
Nebraska - 0.5%
Lincoln Electric System Revenue Bonds, Prerefunded, 5.00%, 9/1/15		5,500		6,150
Omaha Public Power District Revenue Bonds, Series B, 5.00%, 2/1/29		5,325		6,315
				12,465
Nevada - 0.6%
Nevada State Capital Improvement & Cultural Affairs G.O. Limited Bonds, Series C, 5.00%, 6/1/21		8,000		9,355
Washoe County Highway Motor Vehicle Fuel TRB, 4.75%, 2/1/21		3,400		3,884
Washoe County School District G.O. Limited Bonds, Series C, 4.00%, 4/1/23		1,905		2,139
				15,378
New Hampshire - 0.2%
New Hampshire State Health & Education Facilities Authority University System Revenue Bonds, Dartmouth College, 5.25%, 6/1/39		5,000		5,895
New Jersey - 2.8%
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A, 5.75%, 6/15/20		5,000		6,289
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, 5.25%, 6/15/26		5,000		5,954
New Jersey State Trust Fund Authority Revenue Bonds, Series AA, Transportation Program, 5.00%, 6/15/25		6,780		8,103

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 - 83.8% continued
New Jersey - 2.8% continued
5.00%, 6/15/26	$	10,000	$	11,863
New Jersey State Turnpike Authority Revenue Bonds, Series B, 5.00%, 1/1/21		10,000		12,134
5.00%, 1/1/25		5,000		5,987
5.00%, 1/1/28		10,000		11,708
5.00%, 1/1/30		5,000		5,844
				67,882
New Mexico - 0.1%
New Mexico State Finance Authority Revenue Bonds, Series C, 5.00%, 6/1/23		2,770		3,391
New York - 13.8%
Long Island Power Authority Revenue Bonds, Series A, 6.25%, 4/1/33		5,000		6,170
Metropolitan Transportation Authority Revenue Bonds, Series G, 5.25%, 11/15/26		5,000		5,869
Metropolitan Transportation Authority Revenue Refunding Bonds, Series D, 5.00%, 11/15/23		5,000		5,731
5.00%, 11/15/24		5,000		5,731
New York City Municipal Water Finance Authority & Sewer System Revenue Bonds, Series A, Fiscal 2005, 5.00%, 6/15/39		10,000		10,506
New York City Transitional Finance Authority Building Aid Revenue Bonds, Subseries S-1A (State Aid Withholding), 5.00%, 7/15/26		10,000		11,975
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries A, 5.00%, 11/1/21		1,000		1,263
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B, 5.00%, 11/1/21		5,000		6,044
5.00%, 2/1/22		2,000		2,475
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B, Escrowed to Maturity, 5.00%, 11/1/17		1,690		2,029
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries B, Unrefunded Balance, 5.00%, 11/1/17		3,560		4,228
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries D, Unrefunded Balance, 5.00%, 11/1/13		495		515
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E-1, 5.00%, 2/1/23		10,380		12,909
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Series B, 5.00%, 11/1/25		1,000		1,220
New York G.O. Unlimited Bonds, Series A-1, 5.00%, 8/1/22		10,000		12,248
New York G.O. Unlimited Bonds, Series D, Prerefunded, 5.25%, 10/15/13		5,000		5,195
New York G.O. Unlimited Bonds, Series E, 5.00%, 11/1/25		10,000		10,790
New York G.O. Unlimited Bonds, Subseries C-1, Fiscal 2008, 5.00%, 10/1/22		10,000		11,721
New York G.O. Unlimited Bonds, Subseries G-1, 5.00%, 4/1/22		5,915		7,352
New York G.O. Unlimited Refunding Bonds, Series E, 5.00%, 8/1/23		10,000		12,243
New York State Dormitory Authority General Purpose Personal Income Tax Revenue Refunding Bonds, Series A, 5.00%, 12/15/19		5,000		6,209
5.00%, 12/15/20		24,100		30,103
New York State Dormitory Authority General Purpose Personal Income TRB, Series A, 5.00%, 3/15/20		10,000		12,316
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		5,877

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 83.8% continued
New York - 13.8% continued
New York State Dormitory Authority Personal Education Income Tax Revenue Refunding Bonds, Series B (AMBAC Insured), 5.50%, 3/15/24	$	10,170	$	13,434
5.50%, 3/15/30		4,000		5,493
New York State Dormitory Authority Personal Education Income TRB, Series B, 5.75%, 3/15/36		16,000		19,124
New York State Dormitory Authority Personal Income TRB, Series E, 5.00%, 8/15/20		10,000		12,414
New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Series C, Municipal Water Finance Revolving Funds, 5.00%, 6/15/25		5,000		5,494
New York State Environmental Facilities Corp. Clean Water & Drinking Water Revenue Bonds, Municipal Water Project Revolving Funds, 5.00%, 6/15/36		5,000		5,885
New York State Environmental Facilities Corp. Personal Income TRB, Series A, 5.25%, 12/15/26		10,000		11,980
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series E (AGM-CR G.O. of Corp. Insured), 5.00%, 4/1/21		6,635		8,237
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		5,130
New York State Thruway Transportation Authority Personal Income TRB, Series A, 5.25%, 3/15/21		5,000		5,921
5.00%, 3/15/22		10,000		12,325
5.00%, 3/15/25		10,000		12,085
New York State Urban Development Corp. Purpose Revenue Bonds, Subordinate Lien (HUD 236 G.O. of Corp. Insured), 5.50%, 7/1/16		670		671
New York State Urban Development Corp. Revenue Refunding Bonds, Series D, 5.38%, 1/1/22		1,850		2,185
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (AMBAC Insured), 5.25%, 10/15/27		3,995		4,285
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 10/15/19		5,100		5,528
5.00%, 10/15/24		2,000		2,154
Tobacco Settlement Financing Corp. Asset-Backed Revenue Bonds, Series B-1C, 5.50%, 6/1/19		2,500		2,552
Triborough Bridge & Tunnel Authority General Revenue Bonds, Series A, 5.00%, 11/15/21		5,140		6,422
Triborough Bridge & Tunnel Authority Revenue Refunding Bonds (NATL-RE Insured), 5.50%, 11/15/21		5,000		6,352
				338,390
North Carolina - 1.9%
Charlotte G.O. Unlimited Refunding Bonds, Series A, 5.00%, 7/1/21		4,410		5,662
Mecklenburg County G.O. Unlimited Refunding Bonds, 5.00%, 2/1/19		10,000		12,373
North Carolina State Eastern Municipal Power Agency System Revenue Refunding Bonds, Series A, Prerefunded, 4.50%, 1/1/22		3,215		3,972
North Carolina State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 5/1/21		5,000		6,405
North Carolina State Municipal Power Agency No. 1 Catawba Electric Revenue Refunding Bonds, Series A, 5.25%, 1/1/20		2,000		2,335
North Carolina State Public Improvement G.O. Unlimited Bonds, Series A, 5.00%, 5/1/21		5,000		6,277
University of North Carolina at Chapel Hill General Revenue Bonds, Series A, 5.00%, 12/1/27		2,160		2,614
Wake County G.O. Unlimited Refunding Bonds, Series C, 5.00%, 3/1/23		5,000		6,484
				46,122

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 - 83.8% continued
Ohio - 2.2%
Akron Income TRB, Series A, Community Learning Centers (NATL-RE FGIC Insured), Prerefunded, 5.00%, 12/1/13	$	3,000	$	3,129
Cincinnati G.O. Unlimited Bonds, Series A, 5.00%, 12/1/24		1,000		1,204
Ohio State Common Schools G.O. Unlimited Bonds, Series B, 5.00%, 3/15/24		10,000		12,258
5.00%, 9/15/25		10,000		12,068
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series A, 5.00%, 9/15/22		5,550		7,065
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series C, 5.00%, 9/15/13		1,310		1,354
Ohio State Facilities Administrative Building Authority Revenue Refunding Bonds, Series A, 5.00%, 10/1/23		4,180		5,000
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series B, 5.00%, 8/1/20		5,000		6,240
5.00%, 8/1/22		2,500		3,179
Ohio State Water Development Authority PCR Refunding Bonds, Series B, Loan Fund, Prerefunded, 5.00%, 6/1/15		1,000		1,109
				52,606
Oregon - 2.0%
Oregon State Board of Education G.O. Unlimited Bonds, Series A, 5.00%, 8/1/23		4,480		5,456
Oregon State Department of Administrative Services G.O. Unlimited Refunding Bonds, Series F, Oregon Opportunity, 5.00%, 12/1/20		1,000		1,246
Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series A, 5.00%, 11/15/23		2,425		3,078
Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series C, Senior Lien, 5.00%, 11/15/20		10,000		11,759
Oregon State G.O. Unlimited Refunding Bonds, Series N, 5.00%, 12/1/23		3,000		3,778
Washington County School District No. 48J Beaverton G.O. Unlimited Refunding Bonds, Series B (School Building Guaranty Insured), 4.00%, 6/15/24		5,000		5,702
Washington Multnomah & Yamhill Counties School District No. 1J G.O. Unlimited Bonds, Hillsboro (NATL-RE Insured) Prerefunded, 5.00%, 6/15/17		10,000		11,861
Washington Multnomah & Yamhill Counties School District No. 1J G.O. Unlimited Refunding Bonds, Hillsboro (School Building Guaranty Insured), 4.00%, 6/15/19		5,000		5,839
				48,719
Pennsylvania - 1.0%
Pennsylvania State G.O. Unlimited Bonds, First Series, 5.00%, 6/1/20		10,000		12,498
Pennsylvania State Housing Finance Agency Mortgage Revenue Bonds, Series 114C, 3.30%, 10/1/32		5,000		4,928
Pennsylvania State Turnpike Commission Motor License Fund Subordinate Special Revenue Bonds, Series B, 5.00%, 12/1/41		1,000		1,122
Pennsylvania State Turnpike Commission Revenue Refunding Bonds, Series A (AMBAC Insured), 5.00%, 12/1/19		5,075		5,807
				24,355
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		6,203
Rhode Island State Clean Water Finance Agency PCR Refunding Bonds, Subseries A, 5.00%, 10/1/21		2,880		3,549
				9,752
South Carolina - 1.4%
Piedmont Municipal Power Agency Electric Revenue Bonds (BHAC-CR MBIA Insured), Unrefunded Balance 2004, 5.38%, 1/1/25		5,000		6,346

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 83.8% continued
South Carolina - 1.4% continued
Richland County School District No. 1 G.O. Unlimited Bonds (AGM SCSDE Insured), Prerefunded, 4.75%, 3/1/13	$	2,000	$	2,035
South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper Project, 5.50%, 1/1/38		12,000		13,828
South Carolina State Transportation Infrastructure Bank Revenue Refunding Bonds, Series A (BHAC-CR AMBAC Insured), 5.00%, 10/1/22		10,000		11,123
				33,332
Tennessee - 0.6%
Metropolitan Government of Nashville & Davidson County G.O. Unlimited Refunding & Improvement Bonds, Series A, 5.00%, 7/1/24		10,275		12,349
Tennessee State Housing Development Agency Revenue Bonds, Series 1A (AMT), Home Ownership Program (G.O. of Agency Insured), 3.75%, 1/1/19		490		522
4.05%, 7/1/20		490		529
4.13%, 7/1/21		1,710		1,845
				15,245
Texas - 7.3%
Dallas Fort Worth International Airport Joint Revenue Bonds, Series A (AMT) (NATL-RE Insured), 5.50%, 11/1/20		1,000		1,040
Dallas G.O. Limited Refunding Bonds,, 5.00%, 2/15/25		1,000		1,232
Dallas Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 2/15/26		10,000		12,129
Denton County Permanent Improvement G.O. Limited Refunding Bonds, 5.00%, 7/15/22		2,000		2,463
Garland Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 2/15/24		10,000		12,207
Harris County G.O. Unlimited Refunding Bonds, Series A, 5.00%, 10/1/23		5,000		6,100
Houston Airport System Revenue Refunding Bonds, Series A (AMT), Subordinate Lien, 5.00%, 7/1/23		5,000		5,896
Houston Independent School District Variable G.O. Limited Tax Refunding Bonds (PSF-Gtd.), 1.50%, Mandatory Put 6/1/13		13,000		13,057
2.00%, Mandatory Put 6/1/14		5,000		5,103
Houston Independent Schoolhouse District G.O. Limited Bonds (PSF-Gtd.), 5.00%, 2/15/25		10,000		11,545
Houston Public Improvement G.O. Limited Refunding Bonds, Series D (AGM Insured), 5.00%, 3/1/17		1,600		1,808
Humble Independent School Building District G.O. Unlimited Bonds (PSF-Gtd.), 5.00%, 2/15/29		10,000		11,286
Lamar Consolidated Independent Schoolhouse District G.O. Unlimited Refunding Bonds, Series A (PSF-Gtd.), 5.00%, 2/15/21		1,500		1,900
Leander Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 5.00%, 8/15/32		5,000		5,017
Lower Colorado River Authority Revenue Bonds, Series 2012-1, Unrefunded Balance, 5.50%, 5/15/33		1,910		2,230
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, 6.50%, 5/15/37		10,000		11,023
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		101
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-1, Prerefunded, 5.50%, 5/15/19		5		6
North Texas State Municipal Water District System Revenue Refunding & Improvement Bonds, 5.25%, 9/1/20		10,210		13,103

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 - 83.8% continued
Texas - 7.3% continued
Northside Independent School District G.O. Unlimited Refunding Bonds (PSF-Gtd.), 4.00%, 8/15/20	$	2,000	$	2,373
4.00%, 8/15/21		3,365		4,016
5.00%, 8/15/22		5,000		6,275
Panhandle Regional Housing Finance Agency Revenue Bonds, Series A (Collateralized by GNMA Securities), 6.50%, 7/20/21		434		457
Spring Independent Schoolhouse District G.O. Unlimited Bonds (FGIC Insured), 5.00%, 8/15/25		4,680		4,978
Texas State PFA G.O. Unlimited Refunding Bonds, 5.00%, 10/1/20		10,000		12,585
Texas State PFA Unemployment Compensation Revenue Bonds, Series A, 5.00%, 7/1/13		14,360		14,702
Texas State Transportation Highway Improvement Commission G.O. Unlimited Bonds, 5.00%, 4/1/26		10,000		12,329
Wylie Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF-Gtd.), 4.00%, 8/15/21		2,345		2,778
				177,745
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		2,067
Nebo School District Building G.O. Unlimited Bonds (School Building Guaranty Insured), 4.00%, 7/1/22		1,320		1,553
Utah State Facilities Building Ownership Authority Revenue Refunding Bonds, Master Lease Program, 4.00%, 5/15/20		1,490		1,745
Utah State G.O. Unlimited Bonds, Series A, 5.00%, 7/1/20		10,000		12,673
				18,038
Virginia - 2.5%
Fairfax County Public Improvement G.O. Unlimited Refunding Bonds, Series C (State Aid Withholding), 5.00%, 10/1/17		2,500		2,993
Loudoun County Public Improvement G.O. Unlimited Bonds, Series A (State Aid Withholding), 5.00%, 12/1/22		1,435		1,824
Norfolk Water Revenue Refunding Bonds, 5.00%, 11/1/21		1,500		1,905
Virginia Beach Public Improvement G.O. Unlimited Refunding Bonds, Series B (State Aid Withholding), 5.00%, 4/1/23		1,270		1,593
Virginia State College Building Authority Educational Facilities Revenue Bonds, Public Higher Educational Financing, 5.00%, 9/1/23		6,765		8,504
Virginia State College Building Authority Educational Facilities Revenue Bonds, Series B, 21st Century College and Equipment Program, 5.00%, 2/1/17		6,460		7,539
Virginia State G.O. Unlimited Refunding Bonds, Series A, 5.00%, 6/1/23		18,505		24,108
Virginia State Housing Development Authority Homeownership Mortgage Revenue Bonds, Series A, 3.65%, 3/1/18		2,200		2,403
3.70%, 9/1/18		4,280		4,710
Virginia State Public School Financing Authority Revenue Refunding Bonds, Series 1997, 5.00%, 8/1/20		5,000		6,265
				61,844
Washington - 0.8%
King County School District No. 405 Bellevue G.O. Unlimited Bonds (AGM Insured) Prerefunded, 4.20%, 12/1/15		5,000		5,537
Port of Seattle Revenue Refunding Bonds, Series C (AMT), Intermediate Lien, 5.00%, 2/1/18		1,000		1,166
Washington State Various Purpose G.O. Unlimited Refunding Bonds, Series R-2011B, 5.00%, 7/1/21		11,000		13,599
				20,302

TAX-EXEMPT FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 83.8% continued
Wisconsin - 0.4%
Wisconsin State G.O. Unlimited Refunding Bonds, Series 2, 5.00%, 11/1/22	$	6,250	$	7,865
Wisconsin State Health & Educational Facilities Authority Revenue Refunding Bonds, Marquette University, 4.00%, 10/1/32		1,000		1,052
				8,917
Total Municipal Bonds (Cost $1,956,263)				2,054,828
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 10.4%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01%(3)(4)		254,182,694	$	254,183
Total Investment Companies (Cost $254,183)				254,183
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 6.0%
California State RANS, Series A-2, 2.50%, 6/20/13	$	22,500	$	22,727
Colorado State General Fund TRANS Series A, 2.50%, 6/27/13		12,850		12,994
Harris County G.O. Limited TANS, 2.00%, 2/28/13		3,500		3,510
Los Angeles County TRANS, Series B, 2.00%, 3/29/13		20,000		20,087
Madison Metropolitan School District Tax and Revenue Anticipation Promissory Notes, 2.00%, 9/4/13		10,000		10,122
Michigan State Aid Finance Authority Revenue Notes, Series B-2, (J.P. Morgan Chase Bank N.A. LOC), 2.00%, 8/20/13		16,545		16,722
Oregon State G.O. Limited TANS, Series A, 2.00%, 6/28/13		25,000		25,221
Texas State TRANS, 2.50%, 8/30/13		35,250		35,789
Total Short-Term Investments (Cost $147,159)				147,172
Total Investments - 100.2% (Cost $2,357,605)				2,456,183
Liabilities less Other Assets - (0.2)%				(4,898	)
NET ASSETS - 100.0%			$	2,451,285

(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 $124,552,000 during the nine months ended December 31, 2012.

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

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Intermediate Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Financials		10.3	%
General		20.7
General Obligation		26.4
School District		8.6
Transportation		8.1
Water		7.4
All other sectors less than 5%		18.5
Total		100.0	%

At December 31, 2012, the credit quality distribution for the Intermediate Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		21.1	%
AA		48.6
A		12.9
SP1+/MIG1		1.1
SP1/MIG1		5.8
Not Rated		0.2
Cash and Equivalents		10.3
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

NORTHERN FUNDS QUARTERLY REPORT    13    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

INTERMEDIATE TAX-EXEMPT FUND continued

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.

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).

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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	2,054,828	(1)	$	—	$	2,054,828
Investment Companies		254,183		—			—		254,183
Short-Term Investments		—		147,172			—		147,172
Total Investments	$	254,183	$	2,202,000		$	—	$	2,456,183

(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 December 31, 2012, there were no transfers between Level1, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	2,357,734
Gross tax appreciation of investments	$	102,893
Gross tax depreciation of investments		(4,444	)
Net tax appreciation of investments	$	98,449

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guaranty Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BABS - Build America Bonds

BANS - Bond Anticipation Notes

BHAC - Berkshire Hathaway Assurance Corporation

CABS - Capital Appreciation Bonds

COPS - Certificates of Participation

CR - Custody Receipt

CWA - Center Water Authority

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

HUD - Housing and Urban Development

IBC - Insured Bond Certificates

LOC - Letter of Credit

MBIA - Municipal Bonds Insurance Association

NATL-RE - National Public Finance Guarantee Corp.

PCR - Pollution Control Revenue

PFA - Public Finance Authority

PSF - Permanent School Fund

Q-SBLF - Qualified School Bond Loan Fund

RANS - Revenue Anticipation Notes

SCSDE - South Carolina School District Enhancement

SFM - Single Family Mortgage

TANS - Tax Anticipation Notes

TRANS - Tax and Revenue Anticipation Notes

TRB - Tax Revenue Bonds

TAX-EXEMPT FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds 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    15    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3%
Alabama - 0.6%
Alabama State Public School & College Authority Capital Improvement Revenue Refunding Bonds, Series B, 5.00%, 5/1/14	$	5,825	$	6,179
Alaska - 0.4%
Anchorage G.O. Unlimited Bonds, Series C, 2.00%, 4/1/14		150		153
Matanuska-Susitna Boro Lease Revenue Bonds, Goose Creek Correctional Center (Assured Guaranty Insured), 5.00%, 9/1/14		4,285		4,603
				4,756
Arizona - 4.6%
Arizona State Transportation Board Excise TRB, Maricopa County Regional Area Road Fund, 5.00%, 7/1/14		100		107
5.00%, 7/1/15		5,000		5,544
Arizona State Water Quality Infrastructure Finance Authority Revenue Bonds, Series A, 4.00%, 10/1/14		755		802
Casa Grande Excise TRB (AMBAC Insured), Prerefunded, 5.00%, 4/1/14		300		317
Gilbert Public Facilities Municipal Property Corp. Revenue Bonds, 4.00%, 7/1/13		1,845		1,878
4.00%, 7/1/14		1,910		2,008
Maricopa County Community College District G.O. Unlimited Bonds, Series C, 4.00%, 7/1/15		1,000		1,083
4.00%, 7/1/16		1,000		1,110
Maricopa County Community College District G.O. Unlimited Refunding Bonds, 2.50%, 7/1/19		2,000		2,148
Maricopa County Unified School District No. 11 Peoria G.O. Unlimited Bonds, School Improvement, 5.00%, 7/1/16		4,250		4,857
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%, 7/1/13		250		255
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		3,691
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		231
4.25%, 7/1/14		5,000		5,267
Peoria Municipal Development Authority, Inc. Revenue Refunding Bonds (AMBAC Insured), Escrowed To Maturity, 5.00%, 7/1/13		225		230
Phoenix Civic Improvement Corp. Transportation Excise TRB, Light Rail Project (AMBAC Insured), 5.00%, 7/1/13		395		404
Phoenix Civic Improvement Corp. Water System Revenue Bonds, Junior Lien (NATL-RE Insured), 5.00%, 7/1/19		8,500		9,396
Phoenix G.O. Limited Refunding Bonds, Partially Escrowed to Maturity, 5.00%, 7/1/13		125		128
Phoenix G.O. Unlimited Bonds, Prerefunded, 4.50%, 7/1/14		370		393
Phoenix G.O. Unlimited Bonds, Series B, 5.00%, 7/1/16		5,000		5,537
Pinal County Obligation Revenue Refunding Bonds, 3.00%, 8/1/15		1,820		1,912
Salt River Project Agricultural Improvement & Power District Electric Revenue Bonds, Series A, 4.00%, 1/1/13		150		150
Tempe G.O. Unlimited Bonds, 5.00%, 7/1/13		100		102
Tempe G.O. Unlimited Refunding Bonds, Series C, 2.00%, 7/1/13		195		197
Tucson Water System Revenue Bonds, 5.00%, 7/1/16		1,275		1,463
				49,210

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
California - 6.1%
Burbank Public Financing Authority Tax Allocation Revenue Bonds, Series A, Golden State Redevelopment (AMBAC Insured), Prerefunded, 5.25%, 12/1/13	$	250	$	261
California State Department of Water Resources Revenue Bonds, Series W (AGM-CR Insured), Partially Escrowed to Maturity, 5.50%, 12/1/13		350		367
California State Department of Water Resources Supply Revenue Bonds, Series L, 5.00%, 5/1/15		10,000		11,043
California State Department of Water Resources Supply Revenue Bonds, Series N, 5.00%, 5/1/13		175		178
California State Economic Recovery G.O. Unlimited Bonds, Series A, 5.25%, 7/1/13		350		359
California State G.O. Unlimited Refunding Bonds, 5.00%, 5/1/14		290		307
5.00%, 11/1/14		395		427
California State G.O. Unlimited Refunding Bonds, 3.00%, 2/1/14		525		540
California State G.O. Unlimited Bonds, 5.00%, 10/1/13		100		103
California State G.O. Unlimited Bonds, Prerefunded, 5.25%, 2/1/13		215		216
California State Health Facilities Financing Authority Revenue Bonds, Series C, Providence Health & Services, 5.00%, 10/1/14		500		538
California State Public Works Board Lease Revenue Bonds, Series C, University of California Institute Project, 5.00%, 4/1/13		150		152
California State Various Purpose G.O. Unlimited Bonds, 5.00%, 9/1/13		150		155
3.00%, 3/1/14		335		345
California State Various Purpose G.O. Unlimited Refunding Bonds, 4.00%, 9/1/14		10,000		10,583
California Statewide Communities Development Authority Revenue Bonds, Proposition 1A Receivables Program, 5.00%, 6/15/13		10,000		10,216
East Bay Regional Park District G.O. Unlimited Refunding Bonds, 5.00%, 9/1/13		150		155
East Side Union High School District Santa Clara County G.O. Unlimited Refunding Bonds, 2012 Crossover (AGM Insured), 5.00%, 9/1/14		250		267
Fairfield-Suisun Unified School District Financing Corp. G.O. Unlimited Refunding Bonds, 4.00%, 8/1/17		2,065		2,340
4.00%, 8/1/18		1,405		1,619
Los Angeles County Metropolitan Transportation Authority Sales TRB, Series A (Assured Guaranty Insured), 4.00%, 7/1/13		100		102
Los Angeles Department of Water & Power System Revenue Bonds, Series A, 5.00%, 7/1/19		5,000		6,178
Los Angeles G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 9/1/13		100		103
Los Angeles Unified School District G.O. Unlimited Bonds, Series A (AGM Insured), Prerefunded, 5.00%, 7/1/13		150		154
Los Angeles Unified School District G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.38%, 7/1/13		100		102
Los Angeles Unified School District G.O. Unlimited Bonds, Series F, Election of 1997 (FGIC Insured), Prerefunded, 5.00%, 7/1/13		75		77
Los Angeles Unified School District G.O. Unlimited Bonds, Series I, 5.00%, 7/1/15		5,000		5,549
Los Angeles Unified School District G.O. Unlimited Bonds, Series KRY, 5.00%, 7/1/13		180		184
Los Angeles Unified School District G.O. Unlimited Refunding Bonds, Series A, 3.00%, 7/1/13		375		380

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
California - 6.1% continued
Los Angeles Wastewater System Revenue Refunding Bonds, Series A (NATL-RE Insured), 4.00%, 6/1/13	$	100	$	102
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series B, 5.00%, 7/1/13		150		154
San Francisco Bay Area Toll Authority Bridge Variable Revenue Bonds, Series C3, 1.45%, Mandatory Put 8/1/17		6,725		6,845
University of California Revenue Bonds, Series D, Limited Project, Unrefunded Balance, 4.00%, 5/15/13		220		223
University of California Revenue Bonds, Series P, Regents University of California, 5.00%, 5/15/13		5,085		5,176
				65,500
Colorado - 1.4%
Adams County School District No. 50 Westminster G.O. Unlimited Refunding Bonds (State Higher Education Interception Program), 4.00%, 12/1/20		4,775		5,606
Denver City & County Excise Tax Revenue Refunding Bonds, Series A (Assured Guaranty Insured), 6.00%, 9/1/21		5,000		6,213
Jefferson County School District No. R-001 G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 12/15/13		1,085		1,134
Regional Transportation District COPS, Series A, Transit Vehicles (AMBAC Insured), 5.00%, 12/1/16		1,590		1,806
				14,759
Connecticut - 2.3%
Connecticut State Economic Recovery G.O. Unlimited Bonds, Series A, 4.00%, 1/1/13		200		200
5.00%, 1/1/13		625		625
Connecticut State Economic Recovery G.O. Unlimited Bonds, Series D, 5.00%, 1/1/14		10,000		10,474
Connecticut State G.O. Unlimited Bonds, Series A, 5.00%, 2/15/13		325		327
Connecticut State G.O. Unlimited Bonds, Series A (NATL-RE Insured), 5.00%, 3/1/13		100		101
Connecticut State G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 3/1/14		565		596
Connecticut State G.O. Unlimited Bonds, Series D, 5.00%, 12/1/13		125		130
Connecticut State G.O. Unlimited Bonds, Series F (NATL-RE Insured), Prerefunded, 5.25%, 10/15/13		100		104
Connecticut State G.O. Unlimited Refunding Bonds, Series B, 4.00%, 5/1/13		100		101
5.00%, 5/1/14		150		159
5.00%, 5/1/17		5,520		6,474
Connecticut State Housing Finance Authority Mortgage Finance Program Revenue Bonds, Series A, 0.55%, 5/15/14		750		752
Connecticut State Revolving Fund General Revenue Refunding Bonds, Series B, 4.00%, 6/1/13		250		254
Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Bonds, Series A, 3.00%, 12/1/13		100		103
5.00%, 12/1/13		100		104
Connecticut State Special Tax Obligation Transportation Infrastructure Revenue Refunding Bonds, Series 1, 2nd Lien, 3.00%, 2/1/13		125		125
5.00%, 2/1/17		2,500		2,917
Stamford Water Pollution Control System & Facility Revenue Bonds, Series A, 3.50%, 11/15/13		315		324
University of Connecticut Revenue Bonds, Series A (G.O. of University Insured), 3.00%, 2/15/14		100		103
3.60%, 4/1/14		250		260

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Connecticut - 2.3% continued
University of Connecticut Revenue Refunding Bonds, Series A (NATL-RE G.O. of University Insured), 5.00%, 1/15/13	$	260	$	261
				24,494
Delaware - 1.8%
Delaware State G.O. Unlimited Bonds, Series 2009C, 5.00%, 10/1/15		15,000		16,863
University of Delaware Revenue Refunding Bonds, Series B, 4.00%, 11/1/14		1,250		1,333
5.00%, 11/1/15		1,000		1,126
				19,322
District of Columbia - 0.1%
District of Columbia G.O. Unlimited Bonds, Series E (BHAC Insured), Escrowed To Maturity, 5.00%, 6/1/14		300		319
District of Columbia Income Tax Secured Revenue Bonds, Series A, 4.00%, 12/1/13		200		207
District of Columbia Income Tax Secured Revenue Refunding Bonds, Series C, 5.00%, 12/1/13		200		209
				735
Florida - 6.0%
Better Jacksonville Sales TRB (NATL-RE Insured), Prerefunded, 5.00%, 10/1/13		300		311
Cape Coral Water & Sewer Revenue Refunding Bonds, Series A (AGM Insured), 3.00%, 10/1/13		250		255
Citizens Property Senior Secured Insurance Corp. High Risk Account Revenue Bonds, Series A-1, 5.50%, 6/1/14		75		80
Citizens Property Senior Secured Insurance Corp. High Risk Revenue Bonds, Series A-1, 5.00%, 6/1/14		1,100		1,166
Clay County Infrastructure Sales Surtax Revenue Bonds (Assured Guaranty Insured), 5.25%, 10/1/17		4,600		5,266
Florida State Board of Public Education Capital Outlay G.O. Unlimited Bonds, Series C (State Gtd.), 5.25%, 6/1/13		110		112
Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series A, 5.00%, 6/1/15		5,430		6,011
Florida State Board of Public Education Capital Outlay G.O. Unlimited Refunding Bonds, Series A (State Gtd. NATL-RE Insured), 5.00%, 6/1/15		5,750		5,920
Florida State Board of Public Education G.O. Unlimited Bonds, Series G (NATL-RE FGIC Insured), 5.25%, 6/1/13		250		255
Florida State Department of Transportation G.O. Unlimited Bonds, Series A, Right of Way, 5.00%, 7/1/13		100		102
Florida State Department of Transportation G.O. Unlimited Refunding Bonds, Series B, Right of Way, 6.38%, 7/1/14		1,500		1,633
Florida State Hurricane Catastrophe Fund Finance Corp. Revenue Bonds, Series A, 5.00%, 7/1/13		5,000		5,119
5.00%, 7/1/15		10,000		11,038
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 5.00%, 10/1/16		4,000		4,555
Florida State Municipal Power Agency Revenue Bonds, Series A, Stanton II Project, 2.00%, 10/1/13		205		207
Florida State Turnpike Authority Department of Transportation Revenue Bonds, Series A (AGM Insured), 5.00%, 7/1/13		300		307
Florida State Turnpike Authority Department of Transportation Revenue Refunding Bonds, Series A, 5.00%, 7/1/13		150		154
Florida State Turnpike Authority Department of Transportation Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 7/1/13		210		215

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Florida - 6.0% continued
Florida State Water Pollution Control Financing Corp. Revenue Bonds, Series A, 5.00%, 7/15/14	$	300	$	321
Hillsborough County Capital Improvement Program Revenue Refunding Bonds (NATL-RE Insured), 4.00%, 8/1/13		200		204
Jacksonville Local Government Sales Tax Revenue Refunding Bonds (NATL-RE FGIC Insured), 5.50%, 10/1/13		150		156
Jacksonville Special Revenue Bonds, Series C-1, 5.00%, 10/1/13		150		155
Jea St. Johns River Power Park System Revenue Refunding Bonds, Series 24, Issue 2, 3.00%, 10/1/13		200		204
Manatee County Public Utilities Revenue Refunding & Improvement Bonds (NATL-RE Insured), Prerefunded, 4.70%, 10/1/13		100		103
Miami-Dade County G.O. Unlimited Bonds, Series B, Building Better Communities Program, 5.00%, 7/1/15		5,000		5,523
Miami-Dade County School Board COPS, Series D (NATL-RE FGIC Insured), Prerefunded, 5.00%, 8/1/13		485		498
Miami-Dade County Water & Sewer Revenue Refunding Bonds (NATL-RE Insured), 5.00%, 10/1/13		3,500		3,616
Palm Beach County School Board Refunding COPS, Series E (AMBAC Insured), 5.38%, 8/1/15		5,000		5,558
Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series A, 5.00%, 10/1/16		1,500		1,699
Sarasota County Infrastructure Sales Surtax Revenue Bonds, Series B, 5.00%, 10/1/14		2,535		2,712
Tallahassee Blueprint 2000 Intergovernmental Agency Sales TRB (NATL-RE Insured), 5.00%, 10/1/14		500		533
Tampa Bay Water Utility System Revenue Refunding & Improvement Bonds (NATL-RE FGIC Insured), 5.25%, 10/1/13		200		207
				64,195
Georgia - 3.6%
Columbia County Sales Tax G.O. Unlimited Bonds, 4.00%, 4/1/13		100		101
Fulton County Facilities Corp. COPS, Public Purpose Project, 5.00%, 11/1/15		2,250		2,490
5.00%, 11/1/16		2,280		2,582
Georgia State G.O. Unlimited Bonds, Series D, Prerefunded, 4.50%, 12/1/13		100		104
Georgia State G.O. Unlimited Bonds, Series F, 5.00%, 11/1/14		5,000		5,428
Georgia State Road & Tollway Authority Federal Highway Grant Anticipation Revenue Bonds, Series A, 5.00%, 6/1/18		5,000		6,014
Georgia State Road & Tollway Authority Federal Highway Grant Anticipation Revenue Bonds, Series A (AGM Insured), 5.00%, 6/1/13		3,000		3,059
Georgia State Road & Tollway Authority Revenue Bonds (State Gtd.) Prerefunded, 5.00%, 10/1/13		120		124
Gordon County School District Sales Tax G.O. Unlimited Bonds (State Aid Withholding), 3.00%, 9/1/13		1,000		1,018
Gwinnett County Development Authority COPS, Public Schools Project (NATL-RE Insured), Prerefunded, 5.25%, 1/1/14		115		121
Gwinnett County School District G.O. Unlimited Refunding Bonds, Prerefunded, 5.00%, 2/1/13		150		151
Gwinnett County Water & Sewerage Authority Revenue Refunding Bonds (County Gtd.), 3.50%, 8/1/13		100		102
4.00%, 8/1/13		425		434

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Georgia - 3.6% continued
Henry County School District G.O. Unlimited Refunding Bonds (State Aid Withholding), 5.00%, 8/1/19	$	5,270	$	6,499
Houston County School District Sales Tax G.O. Unlimited Bonds (State Aid Withholding), 2.00%, 9/1/13		600		607
Metropolitan Atlanta Rapid Transit Authority Third Indenture Sales Tax Revenue Refunding Bonds, Series A (NATL-RE FGIC Insured), 5.00%, 7/1/15		4,000		4,428
Municipal Electric Authority of Georgia Revenue Bonds, Subseries A, Project One, 5.00%, 1/1/13		2,000		2,000
Municipal Electric Authority of Georgia Revenue Bonds, Subseries D, Project One, 5.00%, 1/1/13		1,710		1,710
5.00%, 1/1/14		1,045		1,091
Private Colleges & Universities Authority Revenue Bonds, Series A, Emory University, 5.00%, 9/1/13		200		206
				38,269
Hawaii - 0.9%
Hawaii State G.O. Unlimited Bonds, Series CH (NATL-RE-IBC Insured), 4.75%, 11/1/13		300		311
Hawaii State G.O. Unlimited Bonds, Series DA (NATL-RE Insured), Prerefunded, 5.25%, 9/1/13		5,000		5,166
Hawaii State G.O. Unlimited Refunding Bonds, Series DB (NATL-RE Insured), 4.25%, 9/1/13		100		103
Hawaii State G.O. Unlimited Refunding Bonds, Series DJ (AMBAC Insured), 5.00%, 4/1/14		100		106
Hawaii State G.O. Unlimited Refunding Bonds, Series DW, 4.00%, 11/1/13		150		155
Honolulu City & County G.O. Unlimited Bonds, Series A (NATL-RE Insured), 5.00%, 7/1/14		305		326
Honolulu City & County G.O. Unlimited Bonds, Series A (NATL-RE Insured), Prerefunded, 5.25%, 3/1/13		450		454
5.25%, 3/1/13		125		126
Honolulu City & County G.O. Unlimited Bonds, Series B, Escrowed to Maturity, 5.00%, 10/1/13		140		145
Honolulu City & County G.O. Unlimited Bonds, Series F, 5.00%, 9/1/15		2,000		2,235
Honolulu City & County Wastewater System Revenue Bonds, Senior Series B, First Bond Resolution, 3.00%, 7/1/14		255		265
Honolulu City & County Wastewater System Revenue Bonds, Senior Series C, First Bond Resolution (NATL-RE Insured), 4.00%, 7/1/13		100		102
				9,494
Idaho - 0.1%
Idaho Housing & Finance Association Unemployment Compensation Revenue Bonds, 2.00%, 8/15/13		675		682
Illinois - 1.7%
Chicago Wastewater Transmission Revenue Bonds, 2nd Lien, 3.00%, 1/1/14		350		359
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		521
Du Page Cook & Will Counties Community College District No. 502 G.O. Unlimited Bonds, Series A, 3.00%, 6/1/13		210		212
Du Page County Community High School District No. 108 G.O. Unlimited Refunding Bonds, 4.00%, 1/1/19		1,000		1,155
DuPage County Forest Preserve District G.O. Unlimited Bonds, 4.25%, 11/1/13		100		103

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Illinois - 1.7% continued
Grundy & Will Counties Community Unit School District No. 1 G.O. Unlimited Bonds, 5.88%, 2/1/16	$	1,120	$	1,276
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, 5.00%, 3/1/15		4,000		4,354
Illinois State Sales TRB, 5.38%, 6/15/16		2,010		2,018
Illinois State Unemployment Insurance Fund Building Receipts Revenue Bonds, Series B, 5.00%, 12/15/19		3,500		3,851
Lake County Forest Preservation District Revenue Debt Certificates, Series C, 3.25%, 12/15/13		100		103
McHenry County Community School District No. 47 Crystal Lake G.O. Unlimited Refunding Bonds, 3.00%, 2/1/13		125		125
Northwest Suburban Municipal Joint Action Water Agency Revenue Bonds, Series A, Escrowed To Maturity, 5.00%, 5/1/13		235		239
Schaumburg Park District G.O. Limited Bonds, Series A, 2.00%, 12/15/13		2,900		2,933
Will County Community High School District No. 210 Lincoln-Way G.O. Unlimited Bonds (NATL-RE FGIC Insured), 4.00%, 1/1/13		150		150
4.00%, 1/1/14		500		518
				17,917
Indiana - 1.5%
Anderson School Building Corp. First Mortgage Revenue Bonds (AMBAC Insured), Prerefunded, 5.00%, 7/15/13		250		256
Indiana Finance CWA Authority Wastewater Utility Revenue Bonds, Series A, First Lien, 4.00%, 10/1/14		1,380		1,464
Indiana State Facilities Finance Authority Revenue Refunding Bonds, 5.00%, 7/1/14		3,485		3,717
Indiana State Finance Authority Revenue Bonds, Series A, Revolving Fund Program, 5.00%, 2/1/14		325		341
Indiana State Finance Authority Revenue Bonds, Series B, Revolving Fund Program, 4.00%, 2/1/13		250		251
Indiana State Transportation Finance Authority Revenue Bonds, Series A (AGM Insured), 5.25%, 6/1/13		250		255
Indiana State Transportation Finance Authority Revenue Bonds, Series A (FGIC Insured), Prerefunded, 5.13%, 6/1/14		3,350		3,578
Indiana University Student Fee Revenue Bonds, Series R (AMBAC Insured), 5.00%, 8/1/13		100		103
Indianapolis Local Public Improvement Bank Multipurpose Revenue Bonds, Series D, 5.25%, 1/10/15		2,430		2,492
Indianapolis Local Public Improvement Bond Bank Revenue Refunding Bonds, Series A, 5.25%, 2/1/13		235		236
Monroe County 1996 Community School Building Corp. First Mortgage Revenue Bonds (AGM Insured State Aid Withholding), 4.00%, 1/15/13		250		250
Mount Vernon of Posey County Multi-School Building Corp. First Mortgage Revenue Bonds (AMBAC Insured State Aid Withholding), 4.00%, 1/15/13		500		501
Pike Township Multi-School Building Corp. First Mortgage Revenue Bonds (State Aid Withholding), 4.00%, 1/15/14		1,805		1,872
Tri-Creek High School Building Corp. Revenue Bonds (AGM Insured State Aid Withholding), Prerefunded, 5.00%, 7/15/13		400		410
				15,726
Iowa - 0.0%
Davenport G.O. Unlimited Corporate Bonds, Series D, 3.00%, 6/1/13		200		202

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Iowa - 0.0% continued
Iowa State Revolving Fund Finance Authority Revenue Bonds, Prerefunded, 5.00%, 2/1/13	$	115	$	116
				318
Kansas - 0.5%
Wichita G.O. Unlimited Refunding Bonds, Series C, 5.00%, 9/1/18		2,230		2,719
Wichita Water & Sewer Utility Revenue Bonds (NATL-RE FGIC Insured), Prerefunded, 5.00%, 10/1/13		2,000		2,070
				4,789
Kentucky - 0.6%
Kentucky State Property & Buildings Commission Revenue Bonds, Series A, Project No. 95, 5.00%, 8/1/15		5,805		6,450
Maine - 0.1%
Maine State Municipal Bank Revenue Bonds, Series A (G.O. of Bond Bank Insured), 5.00%, 11/1/13		400		416
Maine State Turnpike Authority Revenue Bonds (AMBAC Insured), Prerefunded, 5.00%, 7/1/13		500		512
				928
Maryland - 3.1%
Annapolis G.O. Unlimited Refunding Bonds, 3.00%, 8/1/13		200		203
Anne Arundel County Consolidated General Improvement G.O. Limited Bonds, 5.00%, 4/1/14		200		212
5.00%, 3/1/15		380		417
5.00%, 4/1/18		2,915		3,525
Baltimore Consolidated Public Improvement G.O. Unlimited Refunding Bonds, Series A, 3.00%, 10/15/13		175		179
4.00%, 10/15/13		125		129
Baltimore County Consolidated Public Improvement G.O. Unlimited Bonds, 5.00%, 2/1/13		150		151
Charles County Consolidated Public Improvement G.O. Unlimited Refunding Bonds, 2.00%, 7/15/13		100		101
Frederick County G.O. Unlimited Refunding Bonds, Series C, 4.00%, 12/1/15		6,375		7,014
Frederick G.O. Unlimited Bonds (NATL-RE Insured), 5.00%, 8/1/13		200		206
Howard County Consolidated Public Improvement G.O. Unlimited Bonds, Series A, 5.00%, 4/15/14		100		106
Howard County Consolidated Public Improvement G.O. Unlimited Refunding Bonds, Series A, 5.00%, 8/15/14		450		484
Maryland State & Local Facilities Loan Capital Improvement G.O. Unlimited Bonds, Series A, 5.50%, 3/1/14		725		769
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Second Series A, 5.00%, 8/1/13		100		103
2.00%, 8/15/13		245		248
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, Second Series B, 5.00%, 8/1/13		200		205
5.00%, 8/1/16		15,000		17,348
Maryland State Department of Transportation Consolidated Revenue Bonds, 5.00%, 5/1/13		245		249
Maryland State Department of Transportation Revenue Bonds, Prerefunded, 5.00%, 5/1/14		150		159
Maryland State Transportation Authority Facilities Project Revenue Bonds (AGM Insured), 5.25%, 7/1/13		350		359
Maryland State Water Quality Financing Administration Revenue Bonds, Series A, Revolving Loan Fund, 5.00%, 3/1/14		145		153
Montogomery County Consolidated Public Improvement G.O. Unlimited Bonds, Series A, Prerefunded, 4.00%, 5/1/13		200		202

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91 .3% continued
Maryland - 3.1% continued
Prince Georges County Consolidated Public Improvement G.O. Limited Bonds, 5.00%, 9/15/13	$	350	$	362
5.50%, 10/1/13		150		156
Prince Georges County Consolidated Public Improvement G.O. Limited Bonds, Series A, 5.00%, 7/15/14		100		107
Washington Suburban Sanitary District Consolidated Public Improvement G.O. Unlimited Bonds, 5.00%, 6/1/13		275		280
				33,427
Massachusetts - 1.0%
Boston G.O. Unlimited Bonds, Series A (State Aid Withholding), 4.00%, 4/1/13		150		151
Boston G.O. Unlimited Bonds, Series D, 4.00%, 4/1/13		250		252
Massachusetts Bay Transportation Authority Assessment Revenue Bonds, Series A, Prerefunded, 4.25%, 7/1/14		50		53
Massachusetts State Bay Transportation Authority Revenue Bonds, Series A, General Transportation System (NATL-RE G.O. of Authority Insured State Gtd.), 5.50%, 3/1/13		100		101
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series A (AMBAC Insured), Prerefunded, 5.25%, 1/1/13		660		660
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series B, 4.00%, 8/1/13		135		138
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series C (NATL-RE FGIC G.O. of Commonwealth Insured), 5.50%, 11/1/13		515		538
5.50%, 11/1/14		525		574
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series D (NATL-RE Insured), 6.00%, 11/1/13		325		341
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series E (AGM Insured), Prerefunded, 5.25%, 1/1/13		250		250
Massachusetts State Consolidated Loan G.O. Unlimited Bonds, Series A, 5.25%, 8/1/13		60		62
Massachusetts State Department of Transportation Metropolitan Highway System Revenue Bonds, Senior Series B, 5.00%, 1/1/15		3,500		3,793
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series A, Harvard University (G.O. of Institution Insured), 3.00%, 12/15/13		150		154
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series L, Massachusetts Institute of Technology, 5.00%, 7/1/13		100		102
Massachusetts State Port Authority Revenue Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 7/1/13		650		665
Massachusetts State School Building Authority Sales TRB, Senior Series B, 5.00%, 10/15/15		1,000		1,123
Massachusetts State Special Obligation Revenue Refunding Bonds, Series A, Senior Federal Highway Grant Anticipation Notes, 5.00%, 6/15/13		250		255
5.00%, 12/15/13		245		256
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, 3.00%, 8/1/13		250		254
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Series 12, Pool Program, 4.00%, 8/1/13		250		256
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, Series 15A, State Revolving Fund, 5.00%, 8/1/13		190		195
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, Series A, Pool Program, 3.50%, 2/1/13		200		201
Springfield State Qualified G.O. Limited Bonds (NATL-RE Insured State Aid Withholding), Prerefunded, 5.25%, 1/15/13		245		246

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Massachusetts - 1.0% continued
5.25%, 1/15/13	$	155	$	155
Wayland Municipal Purpose Loan G.O. Limited Bonds, 4.00%, 2/1/14		150		156
				10,931
Michigan - 1.3%
Ann Arbor School District G.O. Unlimited Refunding Bonds (Q-SBLF Insured), 5.00%, 5/1/13		165		168
Detroit Water Supply System Revenue Bonds, Series A, Senior Lien (NATL-RE Insured), Prerefunded, 5.25%, 7/1/13		1,000		1,025
Eaton Rapids Public Schools G.O. Unlimited Refunding Bonds (Q-SBLF Insured), 5.00%, 5/1/20		800		979
Flushing Community Schools District G.O. Unlimited Bonds (Q-SBLF Insured), Prerefunded, 5.25%, 5/1/13		195		198
Kentwood Public Schools G.O. Unlimited Refunding Bonds, 4.00%, 5/1/18		2,340		2,689
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series II (NATL-RE Insured), Escrowed to Maturity, 5.25%, 10/15/13		250		260
Michigan State Building Authority Facilities Program Revenue Refunding Bonds, Series II (NATL-RE Insured), Prerefunded, 5.00%, 10/15/13		5,000		5,183
Michigan State Finance Authority Unemployment Obligation Assessment Revenue Refunding Bonds, Series B, 5.00%, 7/1/22		1,850		2,092
Michigan State University General Revenue Bonds, Series A (AMBAC Insured), 5.00%, 2/15/14		100		105
New Haven Community School Building & Site G.O. Unlimited Refunding Bonds (AGM Q-SBLF Insured), 4.00%, 5/1/13		125		126
South Haven Public Schools G.O. Unlimited Bonds (AGM Insured), Prerefunded, 5.00%, 5/1/13		100		102
Waverly Community School G.O. Unlimited Refunding Bonds (AGM Insured), 5.00%, 5/1/13		300		304
Zeeland Public Schools Building & Site G.O. Unlimited Bonds (NATL-RE Insured), Prerefunded, 5.25%, 5/1/14		165		176
				13,407
Minnesota - 3.1%
Buffalo Independent School District No. 877 G.O. Unlimited Bonds, Series B (AGM School Credit Program Insured), 4.50%, 2/1/13		150		150
Buffalo Independent School District No. 877 G.O. Unlimited Refunding Bonds, Series A (School District Credit Program Insured), 3.00%, 2/1/17		825		895
Edina Independent School Building District No. 273 G.O. Unlimited Refunding Bonds, Series B (School District Credit Program Insured), 5.00%, 2/1/18		4,310		5,169
Farmington Independent School Building District No. 192 G.O. Unlimited Refunding Bonds, Series A (NATL-RE School District Credit Program Insured), 4.00%, 6/1/13		100		102
Minnesota State 911 Revenue Bonds, Public Safety Radio Communications System (Assured Guaranty Insured), 4.00%, 6/1/13		250		254
Minnesota State G.O. Unlimited Bonds, Series A, 5.00%, 10/1/13		250		259
Minnesota State G.O. Unlimited Bonds, Series C, 5.00%, 8/1/13		5,000		5,140
Minnesota State Public Facilities Authority Revolving Fund Revenue Bonds, Series C, 4.00%, 3/1/13		305		307
Minnesota State Various Purpose G.O. Unlimited Refunding Bonds, Series F, 4.00%, 8/1/15		10,000		10,912
Northern Municipal Power Agency Electric System Revenue Refunding Bonds, Series A (Assured Guaranty Insured), 5.00%, 1/1/14		2,320		2,426

TAX-EXEMPT FIXED INCOME FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Minnesota - 3.1% continued
Ramsey County G.O. Unlimited Capital Improvement Refunding Bonds, Series B, 4.00%, 2/1/13	$	200	$	201
Rochester Wastewater G.O. Unlimited Refunding Bonds, Series A, 5.00%, 2/1/19		1,810		2,227
St. Paul Independent School Building District No. 625 G.O. Unlimited Refunding Bonds, Series C (School District Credit Program Insured), 3.50%, 2/1/13		125		125
St. Paul Metropolitan Area Council Minneapolis Transit G.O. Unlimited Refunding Bonds, Series C, 5.00%, 2/1/14		250		263
St. Paul Metropolitan Area Council Minneapolis Wastewater G.O. Unlimited Refunding Bonds, Series E, 5.00%, 9/1/21		3,350		4,297
				32,727
Mississippi - 0.3%
Mississippi State Development Bank Special Obligation Wastewater & Solid Waste Management Revenue Bonds, Series B (AGM Insured), Prerefunded, 5.38%, 2/1/13		400		401
Mississippi State G.O. Unlimited Bonds, Series A, 5.00%, 10/1/13		2,620		2,714
				3,115
Missouri - 0.1%
Clay County School Building District No. R-II Smithville G.O. Unlimited Bonds (AGM Insured State Aid Direct Deposit Program), 4.00%, 3/1/13		100		101
Curators of the University of Missouri System Facilities Revenue Bonds, Series A, Prerefunded, 5.00%, 11/1/13		550		572
Missouri State Environmental Improvement & Energy Resources Authority Water Pollution Revenue Bonds, Series C, State Revolving Funds Program, 5.00%, 7/1/13		100		102
Missouri State Highways & Transit Commission Road Revenue Bonds, Series A, First Lien, 5.00%, 5/1/13		225		228
Missouri State Highways & Transit Commission Road Revenue Refunding Bonds, Senior Lien, 4.00%, 2/1/14		200		208
				1,211
Nebraska - 0.2%
Nebraska State Public Power District General Revenue Bonds, Series A, 4.00%, 1/1/14		125		130
Nebraska State Public Power District General Revenue Bonds, Series B, 5.00%, 1/1/14		1,730		1,811
Nebraska State Public Power District General Revenue Bonds, Series B (AGM Insured), 5.00%, 1/1/13		350		350
Nebraska State Public Power District General Revenue Bonds, Series B (NATL-RE Insured), 5.00%, 1/1/13		250		250
University of Nebraska Facilities Corp. Deferred Maintenance Revenue Bonds, 2.50%, 7/15/13		100		101
				2,642
Nevada - 1.6%
Clark County Highway Improvement Motor Vehicle Fuel Tax Revenue Refunding Bonds (AMBAC Insured), 5.00%, 7/1/13		635		650
5.25%, 7/1/13		175		179
Clark County School District Building G.O. Limited Bonds, Series B (AMBAC Insured), 5.00%, 6/15/15		2,000		2,212
Clark County School District G.O. Limited Bonds, Series C (AGM Insured), 5.00%, 6/15/18		2,000		2,238
Clark County School District G.O. Limited Refunding Bonds (AGM Insured), 5.50%, 6/15/14		100		107
Clark County School District G.O. Limited Refunding Bonds, Series A (NATL-RE FGIC Insured), 5.00%, 6/15/13		425		434
Clark County School District G.O. Limited Refunding Bonds, Series A (NATL-RE Insured), 5.00%, 6/15/13		100		102

NORTHERN FUNDS QUARTERLY REPORT    11    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Nevada - 1.6% continued
Clark County School District G.O. Limited Tax Refunding Bonds, Series A, 5.00%, 6/15/14	$	100	$	107
Clark County Transportation G.O. Limited Refunding Bonds, Series A (AGM Insured), 5.00%, 6/1/13		130		132
Clark County Transportation G.O. Limited Refunding Bonds, Series A (AMBAC Insured), 5.00%, 12/1/15		3,000		3,250
Clark County Transportation G.O. Limited Refunding Bonds, Series B (AMBAC Insured), 5.00%, 12/1/13		490		510
Clark County Water Reclamation District G.O. Limited Bonds, Series B, 4.00%, 7/1/13		1,225		1,247
Las Vegas G.O. Limited Refunding Bonds (AMBAC Insured), Escrowed to Maturity, 5.00%, 6/1/13		380		388
Las Vegas G.O. Limited Refunding Bonds, Unrefunded Balance (AMBAC Insured), 5.00%, 6/1/13		1,220		1,242
Las Vegas Sewerage G.O. Limited Refunding Bonds, Series A (NATL-RE FGIC Insured), 4.00%, 4/1/13		200		202
Las Vegas Valley Water District G.O. Limited Refunding Bonds, Series D, 2.00%, 6/1/13		200		201
Las Vegas Valley Water District G.O. Limited Tax Refunding Bonds, Series D, 5.00%, 6/1/15		770		849
Nevada State Capital Improvement G.O. Limited Refunding Bonds, Series A, 5.00%, 2/1/14		100		105
Washoe County School District Building G.O. Limited Refunding Bonds, Series A (NATL-RE Insured) Escrowed to Maturity, 5.00%, 6/1/13		40		41
Washoe County School District Building G.O. Limited Refunding Bonds, Series A, Unrefunded Balance (NATL-RE Insured), 5.00%, 6/1/13		155		158
Washoe County School District G.O. Limited Bonds, Series C, 3.00%, 4/1/14		400		412
Washoe County School District G.O. Limited Tax Refunding Bonds, Series A, 4.00%, 6/1/19		1,825		2,096
				16,862
New Hampshire - 0.4%
Manchester School Facilities Revenue Bonds (NATL-RE Insured), Prerefunded, 5.50%, 6/1/13		1,400		1,430
New Hampshire State Health & Education Facilities Authority Revenue Bonds, Series A, University System, 5.00%, 7/1/14		3,000		3,202
				4,632
New Jersey - 4.9%
Bergen County G.O. Unlimited Bonds (School Board Resource Fund Insured), 4.00%, 9/1/13		200		205
Bergen County G.O. Unlimited Bonds, Series A, 2.50%, 11/1/13		105		107
Franklin Township G.O. Unlimited Refunding Bonds, 4.00%, 5/1/13		250		253
Garden State Preservation Trust Open Space & Farmland Revenue Bonds, Series A (AGM Insured), 5.50%, 11/1/13		500		522
Garden State Preservation Trust Open Space & Farmland Revenue Bonds, Series B (NATL-RE Insured), 6.38%, 11/1/13		150		157
Middlesex County Improvement Authority Revenue Bonds (County Gtd.), Prerefunded, 5.25%, 9/15/13		400		414
Middlesex County Improvement Authority Revenue Refunding Bonds, Capital Equipment & Improvement Project (County Gtd.), 4.00%, 9/15/13		175		179
Monmouth County G.O. Unlimited Bonds, 4.00%, 1/15/19		3,515		4,114
4.00%, 1/15/20		5,255		6,212

TAX-EXEMPT FIXED INCOME FUNDS    12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
New Jersey - 4.9% continued
Morris County G.O. Unlimited Refunding Bonds, 5.00%, 2/1/13	$	160	$	161
New Jersey Environmental Infrastructure Trust Revenue Bonds, 5.00%, 9/1/20		2,280		2,878
New Jersey State EDA School Facilities Construction Revenue Bonds, Series T-3 (AGM Insured), 5.00%, Mandatory Put 9/1/14		2,500		2,674
New Jersey State EDA School Facilities Construction Revenue Refunding Bonds, Series EE, 5.00%, 9/1/18		10,000		11,862
New Jersey State G.O. Unlimited Refunding Bonds, 5.00%, 8/1/15		3,200		3,561
New Jersey State G.O. Unlimited Refunding Bonds, Series H, 5.25%, 7/1/13		350		359
New Jersey State Transit Corp. COPS, Series A (AMBAC Insured), 5.25%, 9/15/14		2,000		2,146
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 12/15/13		595		623
New Jersey State Transportation System Trust Fund Authority Revenue Bonds, Series D, Unrefunded Balance (AMBAC Insured), 5.00%, 6/15/18		4,000		4,385
New Jersey State Transportation Trust Fund Authority Revenue Bonds, Series B, 5.00%, 6/15/19		2,250		2,708
New Jersey State Turnpike Authority Revenue Bonds, Series A (NATL-RE FGIC Insured), Prerefunded, 4.75%, 7/1/13		150		153
New Jersey State Turnpike Authority Revenue Refunding Bonds, Series A (NATL-RE Insured), Escrowed To Maturity, 6.00%, 1/1/14		100		106
New Jersey State Various Purpose G.O. Unlimited Bonds (AMBAC Insured), Prerefunded, 4.50%, 4/1/14		300		316
New Jersey State Various Purpose G.O. Unlimited Bonds, Escrowed to Maturity, 5.00%, 4/1/13		100		101
Union County G.O. Unlimited Bonds, 3.00%, 3/1/19		4,315		4,754
Union County G.O. Unlimited Bonds, Series B (School Board Resource Fund Insured), 3.00%, 3/1/20		2,987		3,273
Union County Vocational Technology School G.O. Unlimited Bonds (School Board Resource Fund Insured), 3.50%, 2/15/13		100		100
3.00%, 3/1/18		460		504
				52,827
New Mexico - 2.0%
Albuquerque G.O. Unlimited Bonds, Series A, 3.00%, 7/1/15		1,590		1,687
Albuquerque General Purpose G.O. Unlimited Bonds, Series A, 4.00%, 7/1/17		5,050		5,740
Las Cruces School District No. 2 G.O. Unlimited Bonds, Series A (State Aid Withholding), 4.00%, 8/1/13		775		791
Los Alamos County, Inc. Gross Receipts Tax Improvement Revenue Bonds, 4.00%, 6/1/13		1,000		1,015
New Mexico State Finance Authority Public Project Revenue Bonds, Series A-1, Senior Lien, 3.50%, 6/1/13		100		101
New Mexico State Severance Tax Revenue Refunding Bonds, Series D, 5.00%, 7/1/17		10,000		11,836
				21,170
New York - 8.2%
Hempstead Town Public Improvement G.O. Unlimited Bonds, Series A, 3.00%, 8/15/13		200		204
Long Beach City School District G.O. Unlimited Bonds (State Aid Withholding), 3.00%, 5/1/18		4,015		4,247

NORTHERN FUNDS QUARTERLY REPORT    13    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
New York - 8.2% continued
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series C (AMBAC Insured), 5.00%, 11/15/13	$	100	$	104
Metropolitan Transportation Authority Revenue Bonds, Series G, 5.00%, 11/15/17		2,235		2,622
Nassau County Interim Finance Authority Sales Tax Secured Revenue Bonds, Series A, 5.00%, 11/15/13		170		177
Nassau County Interim Finance Authority Sales Tax Secured Revenue Bonds, Series D (NATL-RE Insured), 5.00%, 11/15/13		500		521
Nassau County Interim Finance Authority Sales Tax Secured Revenue Refunding Bonds, Series B (AMBAC Insured), 5.00%, 11/15/13		500		521
New York City G.O. Unlimited Bonds, Series A, 2.50%, 8/1/13		100		101
3.88%, 8/1/13		100		102
5.00%, 8/1/13		100		103
New York City G.O. Unlimited Bonds, Series B, 5.00%, 8/1/13		105		108
New York City G.O. Unlimited Bonds, Series D, Prerefunded, 5.00%, 10/15/13		150		156
New York City G.O. Unlimited Bonds, Series E, 5.00%, 8/1/13		125		128
5.25%, 8/1/13		300		309
New York City G.O. Unlimited Bonds, Series E (AGM Insured), 5.25%, 8/1/13		100		103
New York City G.O. Unlimited Bonds, Series F, Escrowed To Maturity, 5.00%, 8/1/13		20		21
New York City G.O. Unlimited Bonds, Series F, Prerefunded, 5.30%, 1/15/13		190		190
New York City G.O. Unlimited Bonds, Series F, Unrefunded Balance, 5.00%, 8/1/13		130		134
New York City G.O. Unlimited Bonds, Series G, 4.00%, 8/1/13		50		51
5.00%, 8/1/13		250		257
5.00%, 8/1/13		200		205
New York City G.O. Unlimited Bonds, Series H, 5.00%, 8/1/13		350		360
New York City G.O. Unlimited Bonds, Series I, Fiscal 2003, Prerefunded, 5.75%, 3/1/13		150		151
New York City G.O. Unlimited Bonds, Subseries I-1, 5.00%, 2/1/13		100		100
New York City G.O. Unlimited Bonds, Series A-1, 5.00%, 8/15/13		250		257
New York City G.O. Unlimited Bonds, Series E-1, 4.25%, 10/15/13		100		103
New York City G.O. Unlimited Bonds, Series H-1, 5.00%, 3/1/16		5,000		5,652
New York City G.O. Unlimited Bonds, Subseries F-1, 5.25%, 9/1/14		150		162
New York City G.O. Unlimited Bonds, Subseries G-3, 3.00%, 8/1/14		490		509
New York City Health System & Hospital Corp. Revenue Bonds, Series A (G.O. of Corp. Insured), 5.00%, 2/15/13		5,000		5,028
New York City Municipal Water Finance Authority Water & Sewer System Revenue Bonds, Series C, Fiscal 2008, 5.00%, 6/15/13		200		204
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series D, Fiscal 2011, 5.00%, 2/1/14		135		142
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Prerefunded, 5.25%, 8/1/13		5,035		5,182
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series A, Escrowed to Maturity, 5.00%, 11/1/15		1,775		1,987

TAX-EXEMPT FIXED INCOME FUNDS    14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
New York - 8.2% continued
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series A, Unrefunded Balance, 5.00%, 11/1/15	$	3,225	$	3,641
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series B, Escrowed To Maturity, 4.00%, 11/1/13		115		118
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series D (NATL-RE Insured), Prerefunded, 5.25%, 2/1/13		100		100
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series D, Escrowed To Maturity, 3.88%, 2/1/13		125		125
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Series E (NATL-RE Insured), Prerefunded, 5.25%, 2/1/13		110		111
New York City Transitional Finance Authority Future Tax Secured Revenue Bonds, Subseries E, 5.00%, 11/1/15		50		56
New York City Transitional Finance Authority Future Tax Secured Revenue Refunding Bonds, Subseries D-2, 5.00%, 11/1/13		350		364
New York City Transitional Finance Authority Subordinated Future Tax Secured Revenue Bonds, Series B, Escrowed to Maturity, 5.00%, 11/1/15		2,470		2,765
New York City Transitional Finance Authority Subordinated Future Tax Secured Revenue Bonds, Series B, Unrefunded Balance, 5.00%, 11/1/15		5,930		6,668
New York City Transitional Finance Authority Subordinated Future Tax Secured Revenue Bonds, Subseries B3, Escrowed To Maturity, 4.00%, 11/1/13		265		273
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		2,169
5.00%, 10/1/17		2,880		3,339
New York State Dormitory Authority Personal Education Income TRB, Series A, 5.00%, 3/15/16		1,265		1,439
New York State Dormitory Authority Personal Income Tax Revenue Bonds, Series F (AGM Insured), 5.00%, 3/15/14		100		106
New York State Dormitory Authority Personal Income TRB, Series A, Unrefunded Balance, 4.00%, 2/15/13		405		407
New York State Dormitory Authority Personal Income TRB, Series A, General Purpose, 4.00%, 3/15/13		130		131
New York State Dormitory Authority Personal TRB, Series A (NATL-RE-IBC Insured), Prerefunded, 5.00%, 3/15/13		100		101
New York State Dormitory Authority Revenue Bonds, Series 1, Memorial Sloan Kettering (NATL-RE-IBC Insured), Prerefunded, 4.50%, 7/1/13		500		510
New York State Dormitory Authority Revenue Bonds, Series B, Upstate Community Colleges, 5.25%, 7/1/13		100		102
New York State Dormitory Authority Revenue Bonds, Series B, Columbia University, 5.00%, 7/1/13		250		256
New York State Dormitory Authority Supported Debt Revenue Bonds, Series F, Mental Health Services Facilities Improvement, 4.00%, 2/15/13		100		101
New York State Dormitory Authority Supported Debt Revenue Bonds, Mental Health Services Facilities Improvement (State Appropriation Insured), 5.00%, 2/15/13		5,000		5,029
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		246

NORTHERN FUNDS QUARTERLY REPORT    15    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
New York - 8.2% continued
New York State Dormitory Authority Supported Debt Revenue Bonds, Series A, State University Dormitory Facilities, 4.00%, 7/1/13	$	250	$	255
New York State Dormitory Authority Supported Debt Revenue Bonds, Series B, City University Consolidated Fifth General Resolution, 5.00%, 7/1/14		1,370		1,465
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		2,950
New York State Dormitory Authority Supported Debt Revenue Refunding Bonds, Series A, Consolidated Service Contract, 3.00%, 7/1/13		200		203
New York State Dormitory Authority Supported Debt Revenue Refunding Bonds, Series A, Department of Health, 5.00%, 7/1/13		100		102
New York State Dormitory Economic Development & Housing Authority Personal Income TRB, Series A, 5.00%, 12/15/13		230		240
New York State Environmental Facilities Corp. Clean & Drinking Water Revolving Funds Revenue Bonds, Series B, New York City Municipal Water Projects, 5.00%, 6/15/13		200		204
New York State Environmental Facilities Corp. Clean & Drinking Water Revolving Funds Revenue Bonds, Subseries B, New York City Municipal Projects, 5.00%, 6/15/13		350		358
New York State Environmental Facilities Corp. Personal Income TRB, Series A, 5.00%, 12/15/13		120		125
New York State Environmental Facilities Corp. Personal Income TRB, Series A (FGIC Insured) Prerefunded, 5.25%, 1/1/13		410		410
New York State Environmental Facilities Corp. Revenue Bonds, Series C, 4.00%, 10/15/13		175		180
New York State Environmental Facilities Corp. Revolving Funds Revenue Bonds, Series C, 4.00%, 5/15/14		210		221
New York State Facilities Urban Development Corp. Personal Income TRB, Series A-1 (NATL-RE FGIC Insured), 5.00%, 3/15/14		715		755
New York State Facilities Urban Development Corp. Revenue Bonds, Series A-1 (NATL-RE FGIC Insured), Prerefunded, 5.00%, 3/15/14		485		513
New York State G.O. Unlimited Bonds, Series A, 3.00%, 2/15/13		185		186
4.00%, 3/1/13		500		503
New York State G.O. Unlimited Refunding Bonds, Series C, 5.00%, 4/15/13		250		254
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		111
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		167
New York State Local Government Assistance Corp. Revenue Refunding Bonds, Series A, Sub Lien (G.O. of Corp. Insured), 5.00%, 4/1/14		115		122
New York State Thruway Authority Highway Revenue Refunding Bonds, Bridge Service Contract, 5.00%, 4/1/13		3,000		3,036
New York State Thruway Authority Local Highway & Bridge Revenue Bonds, 5.00%, 4/1/15		4,500		4,945
New York State Thruway Authority Revenue Bonds, Series H (NATL-RE Insured), 5.00%, 1/1/13		100		100

TAX-EXEMPT FIXED INCOME FUNDS    16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
New York - 8.2% continued
New York State Thruway Authority Revenue Refunding Bonds, Bridge Service Contract, 5.00%, 4/1/14	$	300	$	317
New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series A, 4.00%, 4/1/13		130		131
5.00%, 4/1/13		140		142
5.00%, 4/1/14		1,000		1,059
New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 4/1/13		225		228
New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series A-1, 4.00%, 4/1/13		205		207
New York State Thruway Authority Second General Highway & Bridge Trust Fund Revenue Bonds, Series B, 5.00%, 4/1/14		3,000		3,175
New York State Thruway Authority Second General Revenue Bonds, Series B, 5.00%, 4/1/13		150		152
New York State Thruway Authority Second General Revenue Bonds, Series B (AGM Insured), 5.00%, 4/1/13		120		121
New York State Thruway Authority General Revenue Bonds, Second Series B (NATL-RE FGIC Insured), 5.00%, 4/1/13		480		486
New York State Thruway Transportation Authority Personal Income TRB, Series A, 4.00%, 3/15/13		100		101
5.00%, 3/15/13		200		202
4.00%, 3/15/14		175		183
New York State Thruway Transportation Authority Personal Income TRB, Series A (AGM Insured), 5.00%, 3/15/13		300		303
New York State University Dormitory Facilities Authority Supported Debt Revenue Bonds, Series B (NATL-RE Insured), 5.00%, 7/1/14		120		128
New York State Urban Development Corp. Personal Income TRB, Series A-1, 5.00%, 12/15/13		250		261
5.00%, 12/15/13		200		209
New York State Urban Development Corp. Personal Income TRB, Series C, 4.50%, 3/15/13		150		151
5.00%, 3/15/14		150		158
New York State Urban Development Corp. Revenue Refunding Bonds, Series D, 5.00%, 1/1/16		3,000		3,379
New York State Urban Development Corp. Service Contract Revenue Refunding Bonds (AGM Insured), 5.00%, 1/1/14		180		188
Triborough Bridge & Tunnel Authority General Purpose Revenue Bonds, Series A (G.O. of Authority Insured), 5.00%, 11/15/13		335		349
Triborough Bridge & Tunnel Authority General Revenue Refunding Bonds, Series B (NATL-RE FGIC-TCRS G.O. of Authority Insured), 5.25%, 11/15/13		100		104
Westchester County G.O. Unlimited Bonds, Series B, 3.00%, 6/1/13		175		177
				87,674
North Carolina - 1.3%
Fayetteville Public Works Commission Revenue Bonds, Series A, 4.00%, 3/1/13		150		151
Mecklenburg County G.O. Unlimited Refunding Bonds, Series C, 5.00%, 3/1/13		150		151
5.00%, 3/1/16		10,000		11,400
Mecklenburg County Public Improvement G.O. Unlimited Bonds, Series A, 5.00%, 2/1/13		100		101
Mecklenburg County Public Improvement G.O. Unlimited Bonds, Series B, 5.00%, 3/1/13		100		101
New Hanover County G.O. Unlimited Refunding Bonds, 4.00%, 2/1/13		100		100
North Carolina State G.O. Unlimited Refunding Bonds, Series A, 5.00%, 3/1/14		350		369

NORTHERN FUNDS QUARTERLY REPORT    17    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
North Carolina - 1.3% continued
North Carolina State Highway G.O. Unlimited Bonds, Prerefunded, 4.63%, 5/1/13	$	330	$	335
5.00%, 5/1/13		400		406
North Carolina State Public Improvement G.O. Unlimited Refunding Bonds, Series A, 5.50%, 3/1/14		500		531
Wake County G.O. Unlimited Refunding Bonds, Series D, 4.00%, 2/1/14		500		520
Wake County Public Improvement G.O. Unlimited Bonds, Series A, 5.00%, 4/1/13		100		101
				14,266
Ohio - 3.5%
Cincinnati Various Purpose G.O. Unlimited Bonds, Series A, 4.00%, 12/1/13		100		103
Cleveland Water Revenue Bonds, Series W, 3.00%, 1/1/13		100		100
Franklin County G.O. Limited Refunding Bonds, 3.50%, 12/1/13		300		309
Hamilton County Sewer System Revenue Refunding Bonds, Series A (NATL-RE Insured), 5.00%, 12/1/13		125		131
North East Regional Sewer District Improvement Revenue Bonds (NATL-RE Insured), 5.00%, 11/15/13		100		104
Ohio State Building Authority Facilities Revenue Bonds, Series A, Juvenile Correction Building, 3.70%, 10/1/14		200		211
Ohio State Building Authority Facilities Revenue Refunding Bonds, Series A, Administrative Building Project (AGM Insured), Prerefunded, 5.00%, 4/1/14		135		143
Ohio State Common Schools G.O. Unlimited Bonds, Series A, Prerefunded, 4.50%, 3/15/13		250		252
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series A, 5.00%, 9/15/15		6,000		6,709
Ohio State Common Schools G.O. Unlimited Refunding Bonds, Series C, 5.00%, 9/15/14		2,500		2,695
Ohio State Fresh Water Development Authority Revenue Bonds, Series A, 5.00%, 6/1/14		125		133
Ohio State Fresh Water Development Authority Revenue Refunding Bonds, Series B (AGM Insured), 5.50%, 6/1/14		150		161
Ohio State G.O. Unlimited Refunding Bonds, Series C, Conservation Projects, Prerefunded, 5.00%, 3/1/13		275		277
Ohio State Higher Education G.O. Unlimited Bonds, Series A, 5.00%, 5/1/13		100		102
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series A, 4.00%, 8/1/13		100		102
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series C, 5.00%, 8/1/14		7,500		8,044
Ohio State Highway Capital Improvement G.O. Unlimited Bonds, Series N, 3.00%, 5/1/13		100		101
Ohio State Major New Street Infrastructure Project Revenue Bonds, Series 2007-1 (AGM Insured), 5.00%, 6/15/13		460		470
4.00%, 6/15/14		200		210
Ohio State Major New Street Infrastructure Project Revenue Bonds, Series 2008-1, 4.25%, 6/15/13		350		356
Ohio State Major New Street Infrastructure Project Revenue Bonds, Series 2010-1, 3.00%, 6/15/13		800		810
5.00%, 6/15/14		125		133
Ohio State Natural Resources G.O. Unlimited Refunding Bonds, Series J, 5.00%, 10/1/13		100		104
Ohio State University Revenue Bonds, Series A, Escrowed To Maturity, 5.00%, 12/1/14		280		305
Ohio State University Revenue Bonds, Series A, Unrefunded Balance, 5.00%, 12/1/14		4,720		5,129

TAX-EXEMPT FIXED INCOME FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Ohio - 3.5% continued
Ohio State University Revenue Bonds, Series B, Unrefunded Balance, 4.00%, 6/1/13	$	100	$	102
Ohio State Water Development Authority Revenue Bonds, Series B, 4.00%, 6/1/14		150		158
Ohio State Water Quality Development Authority PCR Refunding Bonds, 5.00%, 12/1/13		250		261
5.00%, 12/1/14		2,250		2,448
University of Akron Receipts Revenue Bonds, Series A (AGM Insured), 5.00%, 1/1/15		2,500		2,712
University of Cincinnati Receipts Revenue Bonds, Series C (Assured Guaranty Insured), 5.00%, 6/1/13		2,110		2,151
5.00%, 6/1/14		1,795		1,911
				36,937
Oklahoma - 0.2%
Oklahoma State Capital Improvement Authority Facilities Revenue Bonds, Series F, Higher Education Projects (AMBAC Insured), 5.00%, 7/1/13		150		153
Oklahoma State Capital Improvement Authority Highway Revenue Bonds, Series A, 4.00%, 7/1/13		165		168
Oklahoma State Municipal Power Authority Revenue Bonds, Series A, 5.00%, 1/1/15		1,575		1,705
Tulsa County Independent School District No. 1 Combined Purpose G.O. Unlimited Bonds, Series A, 2.00%, 6/1/14		270		276
Tulsa G.O. Unlimited Bonds, 4.00%, 3/1/14		200		209
				2,511
Oregon - 1.7%
Clackamas County Service District No. 1 Sewer Revenue System Revenue Bonds, Series B, 5.00%, 12/1/13		100		104
Oregon State Board Higher Education G.O. Unlimited Bonds, Series A, 5.00%, 8/1/13		100		103
5.00%, 8/1/17		2,380		2,825
Oregon State Board Higher Education G.O. Unlimited Bonds, Series B, 3.50%, 8/1/13		130		132
Oregon State Department of Administrative Services COPS, Series C, 5.00%, 11/1/14		2,895		3,133
Oregon State Department of Administrative Services Lottery Revenue Bonds, Series A, 4.00%, 4/1/13		100		101
Oregon State Department of Administrative Services Lottery Revenue Bonds, Series B (Moral Obligation Insured), 4.00%, 4/1/14		100		105
Oregon State Department of Administrative Services Lottery Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 4/1/14		100		106
Oregon State Department of Administrative Services Refunding COPS, Series D, 5.00%, 11/1/14		5,670		6,135
Oregon State Department of Transportation Highway User Tax Revenue Refunding Bonds, Series B, 5.00%, 11/15/13		150		156
Oregon State University System G.O. Unlimited Refunding Bonds, Series A, 5.00%, 8/1/20		2,020		2,560
Portland Arena G.O. Limited Refunding Bonds, Series B, 5.00%, 6/1/13		100		102
Portland Sewer System Revenue Bonds, Series A, First Lien (NATL-RE Insured), 5.00%, 6/1/13		100		102
Washington County Clean Water Services Sewer Revenue Bonds, Series A, Senior Lien, 4.00%, 10/1/15		2,435		2,660
				18,324
Pennsylvania - 3.0%
Bucks County Water & Sewer Authority System Revenue Bonds (AGM Insured), 5.00%, 6/1/13		500		510
Delaware County G.O. Unlimited Bonds, Series A, 3.00%, 10/1/13		115		117

NORTHERN FUNDS QUARTERLY REPORT    19    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Pennsylvania - 3.0% continued
Hempfield School District Lancaster County G.O. Unlimited Bonds, Series A (State Aid Withholding), 3.00%, 10/15/18	$	300	$	327
Lehigh County General Purpose Authority Revenue Bonds, St. Luke’s Hospital Bethlehem, Prerefunded, 5.38%, 8/15/13		1,000		1,032
Pennsylvania State G.O. Unlimited Bonds, First Series (NATL-RE Insured), 5.00%, 1/1/13		220		220
Pennsylvania State G.O. Unlimited Bonds, Second Series (NATL-RE FGIC Insured), 5.00%, 7/1/13		125		128
Pennsylvania State G.O. Unlimited Bonds, Third Series, 5.00%, 9/1/13		500		516
Pennsylvania State G.O. Unlimited Refunding & Projects Bonds, First Series (NATL-RE Insured), Prerefunded, 4.50%, 2/1/14		100		104
Pennsylvania State G.O. Unlimited Refunding Bonds, Second Series, 5.00%, 7/1/15		15,000		16,659
Pennsylvania State G.O. Unlimited Refunding Bonds, Third Series 2004, 5.25%, 7/1/14		150		161
Pennsylvania State Higher Educational Facilities Authority Revenue Bonds, Series A, University of Pennsylvania, 5.00%, 9/1/17		5,000		5,938
Pennsylvania State Infrastructure Investment Authority Revenue Refunding Bonds, Series A, Loan Pool, 5.00%, 9/1/13		100		103
Trinity Area School District G.O. Unlimited Bonds (NATL-RE FGIC Insured State Aid Withholding), Prerefunded, 4.00%, 11/1/13		100		103
University of Pittsburgh of the Commonwealth System of Higher Education Revenue Bonds, Series B, Capital Project (G.O. of University Insured), 5.00%, 9/15/14		6,000		6,470
				32,388
Rhode Island - 0.0%
Rhode Island State Clean Water Finance Agency PCR Refunding Bonds, Subseries A, 5.00%, 10/1/14		150		162
South Carolina - 1.8%
Beaufort County School District G.O. Unlimited Refunding & Improvement Bonds, Series D (SCSDE Insured), 4.00%, 3/1/13		450		453
Charleston G.O. Unlimited Bonds (State Aid Withholding), 3.00%, 3/1/14		300		309
Charleston Waterworks & Sewer System Revenue Refunding Bonds, 4.00%, 1/1/13		150		150
Horry County School District G.O. Unlimited Refunding Bonds, Series B (SCSDE Insured), 4.00%, 3/1/13		150		151
Horry County School District G.O. Unlimited Refunding Bonds (SCSDE Insured), 5.00%, 3/1/18		5,705		6,820
Richland County School District No. 2 G.O. Unlimited Bonds, Series A (SCSDE Insured), 5.25%, 4/1/13		100		101
South Carolina State Capital Improvements G.O. Unlimited Bonds, 5.00%, 3/1/15		10,000		10,988
South Carolina State Public Service Authority Revenue Refunding Bonds, Series D (AGM Insured), 5.25%, 1/1/13		220		220
South Carolina State Public Service Authority Sante Cooper Revenue Refunding Bonds, Series B, 5.00%, 1/1/13		200		200
South Carolina State Public Service Authority Santee Cooper Revenue Refunding Bonds, Series D, 5.00%, 1/1/13		110		110
South Carolina State Public Service Authority Santee Cooper Revenue Bonds, Series E, 5.00%, 1/1/13		100		100
				19,602

TAX-EXEMPT FIXED INCOME FUNDS    20    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
South Dakota - 0.1%
South Dakota State Building Authority Revenue Refunding Bonds, Series A (AGM Insured), Prerefunded, 5.00%, 9/1/13	$	780	$	804
Tennessee - 1.9%
Johnson City Water & Sewer G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured), 4.75%, 6/1/13		125		127
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue Bonds, Series B, Vanderbilt University (G.O. of University Insured), 5.25%, 10/1/15		5,000		5,640
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board Revenue Refunding Bonds, Series B, Vanderbilt University (G.O. of University Insured), 5.00%, 10/1/13		225		233
Metropolitan Government Nashville & Davidson County Water & Sewer Revenue Refunding Bonds, Subordinated Lien, 5.00%, 7/1/20		1,500		1,833
Shelby County G.O. Unlimited Refunding Bonds, Series A, Escrowed to Maturity, 5.00%, 4/1/15		995		1,096
Shelby County G.O. Unlimited Refunding Bonds, Series A, Unrefunded Balance, 5.00%, 4/1/15		4,005		4,408
Tennessee State G.O. Unlimited Bonds, Series A, 5.00%, 5/1/15		5,000		5,531
Tennessee State School Bond Authority Revenue Bonds, Series B, Higher Educational Facilities 2nd Program, 4.00%, 5/1/14		1,030		1,082
Williamson County G.O. Unlimited Refunding Bonds, 5.00%, 4/1/14		100		106
				20,056
Texas - 6.4%
Alamo Community College District G.O. Limited Maintenance Tax Notes, 3.00%, 2/15/13		300		301
Alief Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.00%, 2/15/13		200		201
Arlington Independent School District G.O. Unlimited Bonds, Series A (PSF Gtd.), 4.00%, 2/15/13		250		251
Austin Community College District G.O. Limited Bonds (AMBAC Insured), 5.00%, 8/1/13		100		103
Austin Electric Utility Revenue Refunding Bonds (AGM Insured), 5.50%, 11/15/13		250		261
Austin Electric Utility Revenue Refunding Bonds, Series A (AMBAC Insured), 5.00%, 11/15/13		150		156
Austin Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.00%, 8/1/13		100		103
Austin Public Property Finance Contractual G.O. Limited Bonds, 4.25%, 5/1/13		100		101
2.00%, 11/1/13		1,305		1,325
Austin Water & Wastewater System Revenue Refunding Bonds (NATL-RE Insured), 5.00%, 11/15/13		100		104
Austin Water & Wastewater System Revenue Refunding Bonds, Series A, 5.00%, 11/15/13		450		469
Austin Water & Wastewater System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.00%, 5/15/13		160		163
Bell County G.O. Limited Refunding Bonds (AGM Insured), 5.00%, 2/15/13		175		176
Bell County G.O. Limited Tax Notes, Unrefunded Balance (AMBAC Insured), 5.00%, 2/15/13		740		744
Brazos Independent School District G.O. Unlimited Bonds (PSF Gtd.), 3.60%, 2/15/13		150		151
Bryan Independent School District G.O. Unlimited Bonds, Series B (PSF Gtd.), 5.00%, 2/15/13		350		352
Burleson Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 4.00%, 8/1/13		150		153

NORTHERN FUNDS QUARTERLY REPORT    21    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Texas - 6.4% continued
Collin County Permanent Improvement G.O. Limited Tax Refunding Bonds, 5.00%, 2/15/13	$	125	$	126
Conroe Independent School District G.O. Unlimited Refunding & Schoolhouse Bonds (PSF Gtd.), 5.50%, 2/15/14		200		212
Cypress-Fairbanks Independent School District G.O. Unlimited Bonds, Series 2005-2 (PSF Gtd.), 3.13%, 2/15/17		7,140		7,789
Cypress-Fairbanks Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 3.25%, 2/15/17		7,000		7,672
Dallas County Schools Public Property Financial Contractual G.O. Limited Bonds, 3.00%, 12/1/13		250		256
Dallas Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF Gtd.), 5.50%, 2/15/17		10,000		11,869
Dallas Waterworks & Sewer System Revenue Refunding & Improvement Bonds (AGM Insured), Prerefunded, 5.38%, 4/1/13		235		238
Del Valle Independent School District Building G.O. Unlimited Bonds (PSF Gtd.), 5.00%, 6/15/13		100		102
Denton G.O. Limited Refunding Bonds, Series A, 5.00%, 2/15/13		105		106
Edinburg Consolidated Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF Gtd.), 3.50%, 2/15/13		100		100
El Paso G.O. Limited Refunding Bonds, 3.00%, 8/15/21		1,045		1,126
El Paso Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.00%, 2/15/14		200		210
Fort Bend County Sub Lien Toll Road G.O. Unlimited Refunding Bonds (NATL-RE Insured), 4.00%, 3/1/13		250		252
Fort Worth G.O. Limited Certificates (AGM Insured), Prerefunded, 4.38%, 3/1/13		1,000		1,007
Frisko G.O. Limited Refunding & Improvement Bonds (NATL-RE Insured), 5.25%, 2/15/14		100		105
Frisko G.O. Limited Refunding Bonds, 5.00%, 2/15/13		400		402
Garland Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.00%, 2/15/13		250		251
Grapevine-Colleyville Independent School Building District G.O. Unlimited Refunding Bonds, Series A (NATL-RE FGIC Insured), 4.25%, 8/15/14		200		212
Harris County Flood Control District G.O. Limited Tax Refunding Bonds, Series A, 4.13%, 10/1/13		250		257
Harris County Permanent Improvement G.O. Limited Refunding Bonds, Series A, 5.00%, 10/1/13		100		104
Highland Park Independent School District Building G.O. Unlimited Bonds, 4.00%, 2/15/13		100		100
Houston Combined Utility System Revenue Refunding Bonds, Series C, First Lien, 5.00%, 11/15/13		300		312
Houston Public Improvement G.O. Limited Bonds, Series E (AMBAC Insured), Prerefunded, 5.00%, 3/1/15		3,000		3,291
Houston Public Improvement G.O. Limited Refunding Bonds, Series A, 5.00%, 3/1/17		5,000		5,836
Hutto Independent School District G.O. Unlimited Bonds (PSF Gtd.), Prerefunded, 4.65%, 8/1/13		150		154
Irving G.O. Limited Refunding & Improvement Bonds, Series A, Unrefunded Balance, 5.00%, 11/15/13		865		900
Irving Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.25%, 2/15/13		100		101
La Joya Independent School District Capital Appreciation G.O. Unlimited Refunding Bonds (PSF Gtd.), 1.00%, 8/1/13(1)		125		125

TAX-EXEMPT FIXED INCOME FUNDS    22    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Texas - 6.4% continued
Lake Travis Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.00%, 2/15/14	$	100	$	105
Lewisville Water & Sewer System Revenue Refunding & Improvement Bonds, 4.00%, 2/15/14		125		130
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		5
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Escrowed to Maturity, 5.00%, 5/15/13		100		102
5.00%, 5/15/15		65		72
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012, Unrefunded Balance, 5.00%, 5/15/13		900		916
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-2, Escrowed To Maturity, 5.00%, 5/15/13		5		5
5.00%, 5/15/15		1,250		1,381
Lower Colorado River Authority Revenue Refunding Bonds, Series 2012-2, Unrefunded Balance, 5.00%, 5/15/13		485		494
5.00%, 5/15/15		260		286
Lubbock County G.O. Limited Bonds (NATL-RE FGIC Insured), 4.00%, 2/15/13		350		352
Lubbock Independent School District Building G.O. Unlimited Bonds (PSF Gtd.), 4.00%, 2/15/13		150		151
Lubbock Waterworks System Surplus G.O. Limited Refunding Bonds (AGM Insured), 5.00%, 2/15/13		100		101
Lubbock Waterworks System Surplus G.O. Limited Refunding Certificates, 5.00%, 2/15/14		180		189
Mansfield Independent School District G.O. Unlimited Refunding Bonds, 4.00%, 2/15/13		340		342
Mesquite Independent School District Building G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.00%, 8/15/13		300		309
Montgomery Independent School District Building G.O. Unlimited Bonds (PSF Gtd.), 3.50%, 2/15/13		100		100
Montgomery Independent School District G.O. Unlimited Refunding Bonds, Series B (PSF Gtd.), 4.25%, 2/15/13		150		151
North Texas State Municipal Water District System Improvement Revenue Refunding & Improvement Bonds, 4.00%, 9/1/14		100		106
North Texas State Municipal Water District System Revenue Bonds, 5.00%, 9/1/13		400		413
Nueces County G.O. Limited Certificates (AMBAC Insured), Prerefunded, 5.00%, 2/15/14		400		421
Pasadena G.O. Limited Bonds (NATL-RE Insured), Prerefunded, 4.50%, 2/15/14		105		110
Pearland G.O. Limited Certificates (AMBAC Insured), Prerefunded, 4.63%, 3/1/14		100		105
Pharr-San Juan-Alamo Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.00%, 2/1/13		200		201
Plano G.O. Limited Refunding & Improvement Bonds, Prerefunded, 4.00%, 9/1/13		100		102
Port Houston Authority G.O. Unlimited Refunding Bonds, Series B (NATL-RE Insured), 5.00%, 10/1/13		500		518
Port Neches-Groves Independent School District Building G.O. Unlimited Bonds (PSF Gtd.), 3.75%, 2/15/14		100		104
Richardson G.O. Limited Refunding Bonds (NATL-RE Insured), 5.25%, 2/15/13		100		101
Richardson Independent School District Building G.O. Unlimited Refunding Bonds, 5.00%, 2/15/14		100		105

NORTHERN FUNDS QUARTERLY REPORT    23    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Texas - 6.4% continued
Round Rock G.O. Limited Refunding Bonds (AMBAC Insured), 5.00%, 8/15/13	$	190	$	195
San Antonio Electric & Gas Revenue Refunding Bonds, Unrefunded Balance, 5.25%, 2/1/13		190		191
San Antonio Electric & Gas System Revenue Bonds, Series A, 5.00%, 2/1/14		445		468
San Antonio G.O. Limited Refunding Certificates, 4.00%, 8/1/13		100		102
San Antonio General Improvement G.O. Limited Refunding Bonds, 4.00%, 2/1/13		100		100
Sugar Land G.O. Limited Refunding Bonds, 3.00%, 2/15/13		100		100
Tarrant County G.O. Limited Tax Bonds, 4.13%, 7/15/14		150		158
Texas State A&M University Financing System Revenue Bonds, Series D, 5.00%, 5/15/13		150		153
Texas State G.O. Unlimited Bonds, Transportation Commission Mobility Fund, 5.00%, 4/1/13		300		304
Texas State Highway Improvement G.O. Unlimited Bonds, Series B, 2.00%, 4/1/13		400		402
Texas State PFA G.O. Unlimited Refunding Bonds, Series A, 5.00%, 10/1/15		7,000		7,853
Texas State PFA Revenue Refunding Bonds, Series A, Building & Procurement Projects (AMBAC Insured), 5.00%, 2/1/13		150		151
Texas State PFA Unemployment Compensation Revenue Bonds, Series A, 5.00%, 7/1/14		500		535
Texas State University Financing System Revenue Bonds, 3.75%, 3/15/13		125		126
5.00%, 3/15/13		775		783
University of Houston Consolidated Revenue Refunding Bonds, 4.00%, 2/15/13		400		402
University of Texas Financing System Revenue Bonds, Series B, 5.25%, 8/15/13		100		103
University of Texas Financing System Revenue Bonds, Series D, 5.25%, 8/15/13		250		258
University of Texas Financing System Revenue Refunding Bonds, Series A, 5.00%, 8/15/13		225		232
University of Texas Financing System Revenue Refunding Bonds, Series F, 5.00%, 8/15/13		250		257
				68,689
Utah - 2.4%
Davis County School District G.O. Unlimited Bonds (School Board Guaranty Program), 3.25%, 6/1/13		580		587
Davis County School District G.O. Unlimited Refunding Bonds, Series C (School Board Guaranty Program), 5.00%, 6/1/18		7,540		9,122
Intermountain Power Agency Supply Revenue Refunding Bonds, Subseries A (AMBAC Insured), 5.00%, 7/1/13		125		128
Intermountain Power Agency Supply Revenue Refunding Bonds, Series A, 5.50%, 7/1/14		3,500		3,591
Nebo School District Building G.O. Unlimited Bonds (School Board Guaranty Program), 4.25%, 7/1/13		125		127
Salt Lake County Sales TRB, 5.00%, 8/1/13		100		103
Uintah County Municipal Building Authority Lease Revenue Bonds, 4.50%, 6/1/14		650		685
Utah State G.O. Unlimited Bonds, Series A, 5.00%, 7/1/15		10,160		11,311
Utah State G.O. Unlimited Bonds, Series B, Prerefunded, 5.00%, 7/1/14		400		428
				26,082
Virginia - 5.5%
Arlington County G.O. Unlimited Refunding Bonds, Series D, 4.00%, 8/1/15		3,235		3,530

TAX-EXEMPT FIXED INCOME FUNDS    24    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Virginia - 5.5% continued
Fairfax County G.O. Unlimited Refunding & Improvement Bonds, Series A (State Aid Withholding), Prerefunded, 4.50%, 4/1/14	$	745	$	784
Fairfax County Public Improvement G.O. Unlimited Refunding Bonds, Series C (State Aid Withholding), 5.00%, 10/1/15		10,235		11,503
Loudoun County G.O. Unlimited Bonds, Series B, 5.00%, 11/1/17		10,000		12,002
Loudoun County G.O. Unlimited Refunding Bonds, Series A (State Aid Withholding), 5.00%, 7/1/13		100		102
Loudoun County Public Improvement G.O. Unlimited Bonds, Series B (State Aid Withholding), 5.00%, 12/1/13		1,000		1,044
Norfolk Capital Improvement G.O. Unlimited Bonds, Series A, 2.25%, 11/1/13		675		686
Prince William County Service Authority Water & Sewer System Revenue Refunding Bonds, 5.00%, 7/1/13		100		102
Virginia State College Building Authority Educational Facilities Revenue Refunding Bonds, Series B, Public Higher Educational Financing Program, 5.00%, 9/1/14		350		377
Virginia State Commonwealth Transportation Board Revenue Bonds, Capital Projects, 5.00%, 5/15/20		8,170		10,204
Virginia State Public Building Authority Facilities Revenue Bonds, Series A, 5.00%, 8/1/13		200		206
Virginia State Public School Authority Revenue Bonds, Series B-1, School Financing 1997 (State Aid Withholding), 5.00%, 8/1/16		1,000		1,152
Virginia State Public School Authority Revenue Refunding Bonds, Series C, School Financing (State Aid Withholding), 5.00%, 8/1/19		10,000		12,368
Virginia State Resources Authority Infrastructure Revenue Bonds, Subseries A, 5.00%, 11/1/13		250		260
Virginia State Resources Authority Infrastructure Revenue Bonds, Senior Non Ace Series A, Pooled Financing Program, 5.00%, 11/1/15		4,025		4,531
Virginia State Resources Authority Infrastructure Revenue Bonds, Series A, Pooled Financing Program, 3.00%, 11/1/13		115		118
Virginia State Resources Senior Authority Infrastructure Revenue Bonds, 3.00%, 11/1/13		130		133
				59,102
Washington - 3.5%
Central Puget Sound Regional Transportation Authority Sales & Use TRB, Series A (AMBAC Insured), 3.63%, 11/1/13		100		103
Douglas County Public Utility District No. 1 Revenue Refunding Bonds, Series C (NATL-RE Insured), Prerefunded, 4.13%, 9/1/13		145		149
Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project 1, 5.00%, 7/1/14		3,500		3,743
5.50%, 7/1/14		1,200		1,292
Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project 3, 5.50%, 7/1/13		600		616
5.00%, 7/1/15		5,000		5,552
5.00%, 7/1/18		10,000		12,106
Energy Northwest Washington Electric Revenue Refunding Bonds, Series A, Project 3 (AMBAC Insured), 5.00%, 7/1/13		450		461
Energy Northwest Washington Electric Revenue Refunding Bonds, Series D, Project 1, 5.00%, 7/1/13		775		793
King County G.O. Limited Refunding Bonds, Series A, Prerefunded, 5.25%, 12/1/13		120		125
King County G.O. Limited Tax Refunding Bonds (AGM Insured), 4.00%, 1/1/13		100		100

NORTHERN FUNDS QUARTERLY REPORT    25    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Washington - 3.5% continued
King County School District No. 1 Seattle G.O. Limited Refunding Bonds, 2.00%, 12/1/13	$	100	$	101
Pierce County School District No. 3 Puyallup G.O. Unlimited Refunding Bonds (AGM School Building Guaranty Insured), 5.00%, 6/1/13		125		127
Pierce County School District No. 403 Bethel G.O. Unlimited Refunding Bonds (NATL-RE FGIC School Board Guaranty Insured), 4.25%, 6/1/13		175		178
Redmond G.O. Limited Bonds, 3.50%, 12/1/13		100		103
Seattle Municipal Light & Power Revenue Refunding & Improvement Bonds, 5.00%, 4/1/13		300		303
Seattle Water System Revenue Refunding & Improvement Bonds, 5.00%, 2/1/14		150		158
Snohomish County G.O. Limited Bonds, Unrefunded Balance (NATL-RE Insured), 5.00%, 12/1/13		280		292
Snohomish County Public Utility District No. 1 Electric Revenue Refunding Bonds (AGM Insured), 5.00%, 12/1/17		3,000		3,351
Snohomish County Public Utility District No. 1 Generation System Revenue Refunding Bonds, 4.00%, 12/1/13		200		207
Snohomish County Public Utility System District No. 1 Electric Revenue Refunding Bonds, 2.00%, 12/1/13		100		101
Spokane County School District No. 81 G.O. Unlimited Bonds (AGM Insured School Building Guaranty Insured), Prerefunded, 5.13%, 6/1/13		110		112
Thurston County G.O. Limited Tax Refunding Bonds (AMBAC Insured), 5.00%, 11/1/13		100		104
Washington State G.O. Unlimited Bonds, Series D, 4.25%, 1/1/13		145		145
Washington State G.O. Unlimited Refunding Bonds, Series R-2011-A, 5.00%, 1/1/18		5,200		6,215
Washington State Motor Vehicle Fuel Tax G.O. Unlimited Bonds, Series B, 5.00%, 7/1/13		220		225
5.00%, 7/1/13		200		205
Washington State Various Purpose G.O. Unlimited Bonds, Series D (AMBAC Insured), Prerefunded, 5.00%, 1/1/14		250		262
				37,229
West Virginia - 0.0%
West Virginia State G.O. Unlimited Refunding Bonds (NATL-RE FGIC Insured), 5.00%, 11/1/13		100		104
West Virginia State Road G.O. Unlimited Bonds (NATL-RE-FGIC Insured), 5.00%, 6/1/13		200		204
				308
Wisconsin - 1.5%
Madison G.O. Unlimited Promissory Notes, Series A, 3.75%, 10/1/13		100		103
Madison Metropolitan School District G.O. Unlimited Refunding Bonds, 2.00%, 3/1/14		100		102
Milwaukee City G.O. Unlimited Promissory Notes, Series N1, 3.00%, 2/15/13		150		150
5.00%, 2/15/16		4,300		4,876
Milwaukee County G.O. Unlimited Refunding Bonds, Series A, 3.40%, 8/1/14		5,000		5,234
Milwaukee County G.O. Unlimited Refunding Bonds, Series A (NATL-RE Insured), 5.00%, 10/1/13		200		207
Racine County Law Enforcement Center G.O. Unlimited Bonds (AMBAC Insured), 4.00%, 3/1/14		100		104
Wisconsin State G.O. Unlimited Bonds, Series B (AGM Insured), 5.00%, 5/1/13		240		244

TAX-EXEMPT FIXED INCOME FUNDS    26    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 91.3% continued
Wisconsin - 1.5% continued
Wisconsin State G.O. Unlimited Bonds, Series D, 5.00%, 5/1/15	$	4,625	$	5,102
				16,122
Total Municipal Bonds (Cost $938,760)				976,930
	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 3.4%
AIM Tax-Free Cash Reserve Portfolio		95,974	$	96
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01%(2) (3)		36,195,640		36,196
Total Investment Companies (Cost $36,292)				36,292
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 3.4%
Austin Public Property Finance Contractual G.O. Limited Bonds, 1.00%, 5/1/13	$	1,065	$	1,068
California State RANS, Series A-2, 2.50%, 6/20/13		6,500		6,565
Citizens Property Insurance Corp. Senior Secured Revenue Notes, Series A-2, 2.50%, 6/1/13		5,000		5,042
Illinois State Unemployment Insurance Fund Building Receipts Revenue Bonds, Series A, 2.00%, 6/15/13		225		227
Michigan State Aid Finance Authority Revenue Notes, Series B-1, 2.00%, 8/20/13		5,000		5,053
New York State Dormitory State Non Supported Debt Revenue Bonds, Series I, School Districts Financing Program (State Aid Withholding), 2.00%, 10/1/13		1,685		1,705
Ocean County College Capital Improvement G.O. Unlimited Bonds, 2.00%, 6/1/13		110		111
Richardson G.O. Limited Refunding Certificates, Series B, 2.00%, 2/15/13		900		902
South Carolina State Economic Development G.O. Unlimited Refunding Bonds, Series A (State Aid Withholding), 3.00%, 4/1/13		20		20
Texas State TRANS, 2.50%, 8/30/13		15,000		15,230
Total Short-Term Investments (Cost $35,910)				35,923
Total Investments - 98.1% (Cost $1,010,962)				1,049,145
Other Assets less Liabilities - 1.9%				20,428
NET ASSETS - 100.0%			$	1,069,573

(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 to 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 $8,981,000 during the nine months ended December 31, 2012.

Percentages shown are based on Net Assets.

NORTHERN FUNDS QUARTERLY REPORT    27    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

SHORT-INTERMEDIATE TAX-EXEMPT FUND continued

At December 31, 2012, the industry sectors for the Short-Intermediate Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
General		19.8	%
General Obligations		34.7
Higher Education		5.3
Power		6.1
School District		14.3
Transportation		5.0
All other sectors less than 5%		14.8
Total		100.0	%

At December 31, 2012, the credit quality distribution for the Short-Intermediate Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		24.0	%
AA		58.7
A		9.5
Not Rated		1.0
SP1+/MIG1		0.5
SP1/MIG1		2.8
Cash and Equivalents		3.5
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.

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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	976,930	(1)	$	—	$	976,930
Investment Companies		36,292		—			—		36,292
Short-Term Investments		—		35,923			—		35,923
Total Investments	$	36,292	$	1,012,853		$	—	$	1,049,145

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,010,962
Gross tax appreciation of investments	$	38,350
Gross tax depreciation of investments		(167	)
Net tax appreciation of investments	$	38,183

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guarantee Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

BHAC - Berkshire Hathaway Assurance Corporation

COP - Certificate of Participation

FGIC - Financial Guaranty Insurance Corporation

IBC - Insured Bond Certificates

G.O. - General Obligation

Gtd. - Guaranteed

NATL-RE - National Public Finance Guarantee Corp.

TAX-EXEMPT FIXED INCOME FUNDS    28    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

PCR - Pollution Control Revenue

PFA - Public Finance Authority

PSF - Permanent School Fund

SCSDE - Southern California State Department of Education

TCRS - Transferable Custody Receipts

TRANS - Tax and Revenue Anticipation Notes

TRB - Tax Revenue Bonds

The interest rates reflected in the Schedule of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds 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    29    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 79.7%
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	$	3,250
Arizona - 0.9%
Arizona State Transportation Board Highway Revenue Bonds, Series B, 5.00%, 7/1/24		5,000		5,872
Phoenix Civic Plaza Improvement Corp. Excise TRB, Subordinated Series A (BHAC-CR FGIC Insured), 5.00%, 7/1/41		5,000		5,372
				11,244
California - 9.8%
Brentwood Infrastructure Financing Authority Water Revenue Bonds, 5.75%, 7/1/38		1,500		1,698
California State Educational Facilities Authority Revenue Bonds, Stanford University, 5.25%, 4/1/40		14,245		19,689
California State G.O. Unlimited Refunding Bonds, 6.25%, 11/1/34		2,830		3,455
California State Various G.O. Unlimited Bonds, Series 2007, Unrefunded Balance, 5.75%, 5/1/30		130		131
California State Various Purpose G.O. Unlimited Refunding Bonds, 4.00%, 9/1/27		5,000		5,452
4.00%, 9/1/28		5,000		5,408
3.50%, 9/1/31		5,000		4,973
Carlsbad Unified School District Convertible Capital Appreciation Election G.O. Unlimited Bonds, Series B, 3.19%, 5/1/34(1)		2,500		2,050
El Camino Community College District G.O. Unlimited CABS, Series C, Election 2002, 8.55%, 8/1/34(1)		9,000		3,444
10.36%, 8/1/38(1)		14,000		4,068
Long Beach Community College District Convertible G.O. Unlimited CABS, Series B, Election 2008, 4.09%, 8/1/49(1)		5,000		1,795
Long Beach Harbor Revenue Refunding Bonds, Series A (AMT) (NATL-RE Insured), 5.00%, 5/15/21		1,000		1,092
Los Angeles County Sanitation Districts Financing Authority Revenue Bonds, Series A Capital Project (AGM Insured), Partially Prerefunded, 5.00%, 10/1/21		1,000		1,034
Los Angeles Department of Water & Power Waterworks Revenue Bonds, Series A, 5.00%, 7/1/43		10,000		11,491
Marin Community College District G.O. Unlimited Bonds, Series D, Election 2004, 3.00%, 8/1/32		1,925		1,869
3.00%, 8/1/33		2,095		1,990
Metropolitan Water District of Southern California Revenue Bonds, Series A, 5.00%, 7/1/32		6,105		6,864
Metropolitan Water District of Southern California Revenue Refunding Bonds, Series G, 5.00%, 7/1/28		3,320		4,081
Modesto Irrigation District Capital Improvements COPS, Series A, 5.75%, 10/1/29		7,020		8,069
Sacramento County Airport System Senior Revenue Bonds, 5.00%, 7/1/28		1,280		1,460
San Francisco City & County Airports Commission Revenue Bonds, Series E, 5.25%, 5/1/32		5,000		5,799
San Francisco City & County International Airports Commission Revenue Refunding Bonds, Second Seried D, 3.50%, 5/1/28		10,475		10,675
Sequoia Union High School District G.O. Unlimited Bonds, Series C-1, Election 2008, 6.00%, 7/1/43		1,100		1,363
University of California General Revenue Bonds, Series Q, 5.25%, 5/15/27		2,500		2,922
Ventura County Community College District G.O. Unlimited Bonds, Series C, Election 2002, 5.50%, 8/1/33		7,000		8,223
				119,095

NORTHERN FUNDS QUARTERLY REPORT    1    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 79.7% continued
Colorado - 0.9%
Denver City & County Airport System Revenue Bonds, Series A, 5.25%, 11/15/29	$	3,000	$	3,468
Denver City & County Airport System Revenue Bonds, Series A (AMT), 5.00%, 11/15/24		4,000		4,685
Denver City & County Special Facilities Airport Revenue Bonds, Series A (AMT), Rental Car Project (NATL-RE Insured), 6.00%, 1/1/14		2,275		2,285
				10,438
Connecticut - 1.3%
Connecticut State G.O. Unlimited Bonds, Series D, 5.00%, 11/1/23		2,500		3,089
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		680		731
Connecticut State Transportation Infrastructure Special Obligation Refunding TRB, 5.00%, 1/1/24		10,000		12,430
				16,250
Delaware - 0.1%
Delaware State Housing Authority Senior SFM Revenue Bonds, Series A (AMT) (AGM Insured), 5.80%, 7/1/35		1,565		1,636
District of Columbia - 2.0%
District of Columbia University Revenue Bonds, Series D, Georgetown University (BHAC-CR Insured), 5.50%, 4/1/36		1,010		1,165
District of Columbia Water & Sewer Authority Public Utility Revenue Bonds, Series A, 5.50%, 10/1/39		20,000		23,090
				24,255
Florida - 5.1%
Broward County Port Facilities Revenue Refunding Bonds, Series A (AGM Insured), 5.00%, 9/1/24		5,235		6,046
5.00%, 9/1/25		1,000		1,147
Broward County Port Facilities Revenue Refunding Bonds, Series B (AMT), 5.00%, 9/1/23		2,500		2,853
Florida State Board of Education G.O. Unlimited Bonds, Escrowed to Maturity, 9.13%, 6/1/14		325		361
Florida State Board of Education G.O. Unlimited Bonds, Unrefunded Balance, 9.13%, 6/1/14		380		393
Florida State Broward County G.O. Unlimited Bonds, Escrowed to Maturity, 10.00%, 7/1/14		6,365		6,950
Florida State Department of Transportation Right of Way G.O. Unlimited Bonds, 5.25%, 7/1/37		10,000		11,409
Florida State Municipal Power Agency All Requirements Revenue Bonds, Series A, 5.25%, 10/1/19		2,000		2,442
6.25%, 10/1/31		3,000		3,633
Jacksonville Port Authority Revenue Refunding Bonds (AMT), 5.00%, 11/1/38		6,500		7,035
JEA Water & Sewer System Revenue Bonds, Series B, 3.85%, 10/1/37		2,500		2,523
Miami-Dade County Aviation International Airport Revenue Bonds, Series A, 5.50%, 10/1/29		2,500		2,924
Miami-Dade County Aviation Revenue Refunding Bonds, Series B, 5.00%, 10/1/24		1,820		2,160
Orlando Utilities Commission Revenue Refunding Bonds, Subseries D, Escrowed to Maturity, 6.75%, 10/1/17		5,845		6,786
Sunrise Utility System Revenue Refunding Bonds, Series A (AMBAC Insured), 5.50%, 10/1/15		4,830		5,114
				61,776
Georgia - 2.4%
Athens-Clarke County Unified Government Water & Sewerage Revenue Bonds, 5.50%, 1/1/38		7,500		8,692
Atlanta Airport Revenue Bonds, Series B, 5.00%, 1/1/37		1,000		1,127
Georgia State G.O. Unlimited Bonds, Series C, 5.00%, 7/1/13		5,000		5,120

TAX-EXEMPT FIXED INCOME FUNDS    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 79.7% continued
Georgia - 2.4% continued
Georgia State G.O. Unlimited Refunding Bonds, Series C, 4.00%, 9/1/22	$	5,000	$	6,026
4.00%, 10/1/22(2)		5,000		6,029
Georgia State Municipal Electric Authority Revenue Bonds, Series B, Non-Callable Certificates (FGIC-TCRS Insured), 6.38%, 1/1/16		2,300		2,566
				29,560
Hawaii - 2.4%
Hawaii State Airports System Revenue Bonds, Series A, 5.25%, 7/1/29		5,000		5,868
Honolulu City & County G.O. Unlimited Bonds, Series D, 5.25%, 9/1/34		1,000		1,169
Honolulu City & County Wastewater System Revenue Bonds, Senior Series A (NATL-RE FGIC Insured), 5.00%, 7/1/35		15,000		16,203
University of Hawaii Revenue Bonds, Series A, 5.25%, 10/1/34		5,000		5,854
				29,094
Illinois - 9.2%
Bolingbrook G.O. Unlimited CABS, Series B, Unrefunded Balance (NATL-RE Insured), 13.34%, 1/1/33(1)		505		167
Chicago Midway Airport Revenue Bonds, Series B (NATL-RE Insured), 5.00%, 1/1/31		2,000		2,005
Chicago O’Hare International Airport Revenue Refunding Bonds, Series A, Passenger Facilities Charge, 5.00%, 1/1/23		4,740		5,627
Chicago O’Hare International Airport Revenue Refunding Bonds, Series B (AMT) Passenger Facilities Charge, 5.00%, 1/1/26		2,500		2,814
Cook County Sales TRB, 5.00%, 11/15/37		10,000		11,577
Illinois State Educational Facilities Authority Revenue Bonds, Northwestern University, 5.00%, 12/1/38		5,505		5,688
Illinois State Finance Authority Revenue Bonds, Series A, Art Institute Chicago, 5.00%, 3/1/34		2,500		2,838
6.00%, 3/1/38		4,850		5,534
5.25%, 3/1/40		2,500		2,802
Illinois State Finance Authority Revenue Bonds, Series A, DePaul University, 6.13%, 10/1/40		5,000		5,859
Illinois State Finance Authority Revenue Bonds, Series B, University of Chicago, 5.75%, 7/1/33		3,200		3,848
Illinois State Municipal Electric Agency Power Supply Revenue Bonds, Series A (NATL-RE FGIC Insured), 5.25%, 2/1/27		5,000		5,610
Illinois State Sales TRB, 5.25%, 6/15/24		5,000		5,107
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series B, 5.50%, 1/1/33		10,500		11,851
Illinois State Toll Highway Authority Revenue Refunding Bonds, Series B (BHAC-CR Insured), 5.50%, 1/1/33		5,000		5,673
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series B, McCormick Place (AGM Insured), 5.00%, 6/15/50		12,500		13,614
Metropolitan Pier & Exposition Authority Dedicated State Tax Revenue Refunding Bonds, Series B-2, McCormick Project, 5.00%, 6/15/50		5,000		5,444
Metropolitan Pier & Exposition Authority Revenue CABS, Series B, McCormick Place Project, 11.40%, 12/15/41(1)		34,860		8,606
Regional Transportation Authority Revenue Bonds, Series A (AGM G.O. of Authority Insured), 5.75%, 6/1/34		2,900		3,810
Springfield Water Revenue Bonds, 5.50%, 3/1/32		2,300		2,618
				111,092
Indiana - 1.3%
Hamilton County Public Building Corp. First Mortgage Revenue Bonds, 7.25%, 8/1/13		2,850		2,911

NORTHERN FUNDS QUARTERLY REPORT    3    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 79.7% continued
Indiana - 1.3% continued
Indiana Finance Authority Wastewater Utility Revenue Bonds, Series A, First Lien - CWA Authority, 5.25%, 10/1/38	$	2,500	$	2,888
Indiana State Office Building Commission Revenue Bonds, Series B (NATL-RE Insured), 7.40%, 7/1/15		5,620		6,142
Indianapolis Gas Utility Revenue Refunding Bonds, Series B (NATL-RE FGIC Insured), 3.50%, 6/1/18		3,280		3,615
				15,556
Kansas - 0.9%
Wichita G.O. Unlimited Renewal & Improvement Temporary Notes, Series 248, 0.30%, 8/15/13		10,800		10,801
Louisiana - 2.0%
East Baton Rouge Parish Sewer Commission Revenue Bonds, Series A, 5.25%, 2/1/39		5,000		5,717
Louisiana State G.O. Unlimited Bonds, Series A, 5.00%, 8/1/23		10,000		12,558
Louisiana State University Agricultural & Mechanical College Auxillary Revenue Refunding Bonds, Series A, 4.75%, 7/1/40		5,165		5,627
				23,902
Maryland - 2.4%
Maryland State & Local Facilities Loan Capital Improvements G.O. Unlimited Bonds, Series A, 5.00%, 3/1/16		2,640		3,009
Maryland State & Local Facilities Loan G.O. Unlimited Bonds, First Series C, 4.00%, 8/15/21		5,000		6,026
Maryland State & Local Facilities Loan G.O. Unlimited Refunding Bonds, Second Series B, 5.00%, 8/1/16		5,355		6,193
Maryland State G.O. Unlimited Bonds, Series B, 5.00%, 8/1/21		5,610		6,874
Prince Georges County G.O. Limited Bonds, Series A, Consolidated Public Improvement, 5.00%, 9/15/21		5,000		6,436
				28,538
Massachusetts - 6.8%
Massachusetts School Building Authority Sales TRB, Series A, (AGM Insured), Prerefunded, 5.00%, 8/15/15		4,190		4,673
5.00%, 8/15/15		645		720
Massachusetts State Bay Transportation Authority Refunding Sales TRB Senior, Series A-1, 5.25%, 7/1/23		1,905		2,476
Massachusetts State Bay Transportation Authority Sales TRB, Senior Series A, 5.00%, 7/1/30		675		863
5.25%, 7/1/33		3,155		4,213
5.25%, 7/1/34		7,000		9,376
Massachusetts State Consolidated Loan G.O. Limited Bonds, Series D, 5.00%, 10/1/23		5,000		6,207
Massachusetts State G.O. Limited Refunding Bonds, Series B, 5.25%, 8/1/21		2,500		3,217
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		5,822
Massachusetts State Health & Educational Facilities Authority Revenue Bonds, Series J1, Partners Healthcare, 5.25%, 7/1/29		5,000		5,704
Massachusetts State Housing Finance Agency Single Family Housing Revenue Bonds, Series 162 (FNMA/FHLML Insured), 3.45%, 12/1/37		3,500		3,431
Massachusetts State School Building Authority Sales Tax Revenue Refunding Bonds, Senior Series A, 5.00%, 8/15/22		10,000		12,770
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Series 14, State Revolving Fund, 5.00%, 8/1/27		10,000		11,923

TAX-EXEMPT FIXED INCOME FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 79.7% continued
Massachusetts - 6.8% continued
Massachusetts State Water Pollution Abatement Trust Revenue Bonds, Subseries A, MWRA Program, 6.00%, 8/1/19	$	3,000	$	3,904
Massachusetts State Water Pollution Abatement Trust Revenue Refunding Bonds, Pool Program, 5.25%, 8/1/27		5,000		6,590
				81,889
Michigan - 1.4%
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		7,987
Michigan State Building Authority Revenue Refunding Bonds, Series I-A, Facilities Program, 5.50%, 10/15/45		2,565		2,967
Michigan State Building Authority Revenue Refunding Bonds, Series II-A, Facilities Program, 5.38%, 10/15/36		5,000		5,802
				16,756
Minnesota - 0.4%
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		5,376
Mississippi - 0.0%
Mississippi State Home Corp. SFM Revenue Bonds, Series C-2 (AMT) (GNMA/FNMA/FHLMC Insured), 5.40%, 6/1/38		30		31
Nebraska - 1.0%
Omaha District Public Power Revenue Bonds, Series B, 5.00%, 2/1/28		5,355		6,381
Omaha District Public Power System Revenue Bonds, Series A, 5.50%, 2/1/39		2,500		2,864
Omaha Sanitary Sewerage System Revenue Bonds, 4.00%, 11/15/42		2,580		2,671
				11,916
Nevada - 0.1%
Clark County Airport System Revenue Bonds, Series C, Sub Lien (AGM Insured), 5.00%, 7/1/26		1,670		1,874
New Hampshire - 1.0%
New Hampshire State Health & Education Facilities Authority Revenue Bonds, Dartmouth College, 5.25%, 6/1/39		10,000		11,790
New Jersey - 0.4%
New Jersey State Turnpike Authority Growth & Income Securities Revenue Bonds, Series B (AMBAC Insured), 2.21%, 1/1/35(1)		5,000		4,750
New Mexico - 0.2%
New Mexico State Mortgage Finance Authority SFM Revenue Bonds, Series 1-C-2 (Collateralized by GNMA/ FNMA/FHLMC Securities), 5.00%, 9/1/26		2,805		3,105
New York - 13.4%
Long Island Power Authority General Revenue Bonds, Series A, 6.00%, 5/1/33		5,000		6,068
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A, 5.50%, 11/15/39		10,000		11,517
Metropolitan Transportation Authority Dedicated Tax Fund Revenue Bonds, Series A (NATL-RE Insured), Prerefunded, 5.00%, 11/15/16		5,000		5,823
Metropolitan Transportation Authority Revenue Bonds, Series G, 5.25%, 11/15/26		5,000		5,869
New York City G.O. Unlimited Bonds, Subseries G-1, 5.00%, 4/1/22		5,000		6,214
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Fiscal Series BB, Second Generation, 5.00%, 6/15/47		3,145		3,604
New York City Municipal Finance Authority Water & Sewer System Revenue Bonds, Series A, Fiscal 2009, 5.75%, 6/15/40		10,000		11,940

NORTHERN FUNDS QUARTERLY REPORT    5    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 79.7% continued
New York - 13.4% continued
New York City Transitional Finance Authority Future TRB (NATL-RE FGIC Insured), Prerefunded, 5.25%, 2/1/13	$	4,880	$	4,900
New York City Transitional Finance Authority Future TRB, Unrefunded Balance (NATL-RE FGIC Insured), 5.25%, 2/1/17		120		121
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		5,877
New York State Dormitory Authority Personal Income TRB, Series B, 5.00%, 3/15/42		20,000		22,936
New York State Dormitory Authority Revenue Bonds, Series A, Court Facilities Lease Issue (AMBAC Insured), 5.50%, 5/15/28		5,000		6,552
New York State Dormitory Education Authority Personal Income Refunding TRB, Series B (AMBAC Insured), 5.50%, 3/15/30		5,000		6,866
New York State Dormitory Education Authority Personal Income TRB, Series B, 5.75%, 3/15/36		11,980		14,319
New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Series B, Municipal Water Revolving Funds, 5.00%, 6/15/41		10,000		11,662
New York State Environmental Facilities Corp. Clean & Drinking Water Revenue Bonds, Series B, Revolving Funds Pooled Financing Program, 5.50%, 4/15/35		5,000		7,196
New York State Thruway Authority General Revenue Bonds, Series I, 5.00%, 1/1/37		5,000		5,636
New York State Thruway Transportation Authority Personal Income TRB, Series A, 5.25%, 3/15/21		5,000		5,921
Sales Tax Asset Receivable Corp. Revenue Bonds, Series A (NATL-RE Insured), 5.25%, 10/15/19		5,000		5,420
5.00%, 10/15/24		10,000		10,769
Tobacco Settlement Financing Corp. Asset-Backed Revenue Bonds, Series B-1C, 5.50%, 6/1/19		2,500		2,552
				161,762
North Carolina - 0.9%
North Carolina State Eastern Municipal Power Agency System Revenue Bonds, Series A, Escrowed to Maturity, 6.50%, 1/1/18		2,655		3,380
North Carolina State Eastern Municipal Power Agency System Revenue Refunding Bonds, Series B (NATL-RE-IBC Insured), 6.00%, 1/1/22		6,015		7,844
				11,224
Ohio - 1.8%
Ohio State Common Schools G.O. Unlimited Bonds, Series B, 5.00%, 9/15/23		10,000		12,195
Ohio State Higher Education G.O. Unlimited Refunding Bonds, Series B, 5.00%, 8/1/22		2,500		3,179
Ohio State Infrastructure Improvement G.O. Unlimited Refunding Bonds, Series B, 5.00%, 9/1/21		5,000		6,330
				21,704
Oklahoma - 0.1%
McGee Creek Authority Water Revenue Bonds (NATL-RE Insured), 6.00%, 1/1/13		1,155		1,155
Oregon - 1.2%
Multnomah County G.O. Limited Bonds, 5.00%, 6/1/26		750		924
Oregon State G.O. Unlimited Bonds, Series M, Various Projects, 4.00%, 11/1/36		2,000		2,140
Oregon State G.O. Unlimited Refunding Bonds, Series N, 5.00%, 12/1/23		2,845		3,583
Oregon State Health & Science University Revenue Bonds, Series E, 5.00%, 7/1/30		2,000		2,319

TAX-EXEMPT FIXED INCOME FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
MUNICIPAL BONDS - 79.7% continued
Oregon - 1.2% continued
Washington County School District No. 48J Beaverton G.O. Unlimited Refunding Bonds, Series B (School Building Guaranty Insured), 4.00%, 6/15/24	$	2,400	$	2,737
Washington Multnomah & Yamhill Counties Hillsboro School District No. 1J G.O. Unlimited Refunding Bonds (School Building Guaranty Insured), 4.00%, 6/15/24		2,465		2,811
				14,514
Pennsylvania - 0.6%
Pennsylvania State Higher Educational Facilities Authority Housing Revenue Bonds, Series A, Student Association, Inc. Project, 6.75%, 9/1/32		1,475		1,477
Pennsylvania State Housing Finance Agency SFM Revenue Bonds, Series 114C, 3.70%, 10/1/42		3,000		2,975
Pennsylvania State Turnpike Commission Registration Fee Revenue Refunding Bonds, Series A (AGM Insured), 5.25%, 7/15/28		2,500		3,176
				7,628
South Carolina - 1.9%
Piedmont Municipal Power Agency Electric Revenue Bonds, Unrefunded Balance 2004 (BHAC-CR MBIA Insured), 5.38%, 1/1/25		5,995		7,608
South Carolina State Public Service Authority Revenue Bonds, Series A, Santee Cooper, 5.50%, 1/1/38		13,000		14,981
				22,589
Texas - 6.3%
Dallas Independent School District School Building G.O. Unlimited Bonds (PSF Gtd.), 6.38%, 2/15/34		5,000		6,106
Dallas-Fort Worth International Airport Joint Revenue Bonds, Series A (AMT) (NATL-RE Insured), 5.50%, 11/1/20		835		869
Denton County Permanent Improvement G.O. Limited Refunding Bonds, 5.00%, 7/15/22		1,780		2,192
Frisco Independent School District School Building G.O. Unlimited Bonds, Series A (PSF Gtd.), 6.00%, 8/15/38		5,000		6,079
Frisco Independent School District School Building G.O. Unlimited Bonds, Series B (PSF Gtd.), Prerefunded, 5.00%, 8/15/13		10,695		11,005
Grand Prairie Independent School District Capital Appreciation G.O. Unlimited Refunding Bonds, 14.33%, 8/15/29(1)		12,505		5,026
Houston Airport System Revenue Refunding Bonds, Series A (AMT), Subordinate Lien, 5.00%, 7/1/23		5,000		5,896
Leander Independent School District G.O. Unlimited Refunding Bonds (PSF Gtd.), 5.00%, 8/15/32		5,000		5,017
Lower Colorado River Authority Revenue Refunding & Improvement Bonds, Series A, 6.25%, 5/15/31		10,000		11,808
Texas PFA Unemployment Compensation Revenue Bonds, Series A, 5.00%, 7/1/13		10,000		10,238
Texas Transportation Commission Highway Improvement G.O. Unlimited Bonds, Series A, 5.00%, 4/1/42		10,000		11,578
				75,814
Virginia - 0.2%
Norfolk Water Revenue Refunding Bonds, 5.00%, 11/1/21		1,500		1,905
Washington - 0.5%
Washington State G.O. Unlimited Bonds, Series B & AT-7, 6.40%, 6/1/17		5,200		6,005
Wisconsin - 0.5%
Wisconsin State G.O. Unlimited Refunding Bonds, Series 2, 5.00%, 11/1/22		5,000		6,292
Total Municipal Bonds (Cost $897,633)				964,566

NORTHERN FUNDS QUARTERLY REPORT    7    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued

	NUMBER OF SHARES		VALUE (000S)
INVESTMENT COMPANIES - 16.6%
Northern Institutional Funds - Tax-Exempt Portfolio, 0.01%(3) (4)		201,202,991	$	201,203
Total Investment Companies (Cost $201,203)				201,203
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT - TERM INVESTMENTS - 4.0%
California State RANS, Series A-2, 2.50%, 6/20/13	$	10,000	$	10,101
Harris County G.O. Limited TANS, 2.00%, 2/28/13		3,000		3,009
Madison Metropolitan School District Tax and Revenue Anticipation Promissory Notes, 2.00%, 9/4/13		5,000		5,061
Texas State TRANS, 2.50%, 8/30/13		29,935		30,393
Total Short-Term Investments (Cost $48,552)				48,564
Total Investments - 100.3% (Cost $1,147,388)				1,214,333
Liabilities less Other Assets - (0.3)%				(3,355	)
NET ASSETS - 100.0%			$	1,210,978

(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 purchases of approximately $43,458,000 during the nine months ended December 31, 2012.

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

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Tax-Exempt Fund were:

INDUSTRY SECTOR	% OF INVESTMENTS
Financials		16.6	%
General		18.7
General Obligation		15.3
Higher Education		8.4
Power		5.4
School District		5.6
Transportation		6.6
Water		10.9
All other sectors less than 5%		12.5
Total		100.0	%

At December 31, 2012, the credit quality distribution for the Tax-Exempt Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	%
AAA		15.9	%
AA		45.7
A		15.9
BBB		1.1
SP1+/MIG1		0.2
SP1/MIG1		4.6
Cash and Equivalents		16.6
Total		100	%

* 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.

TAX-EXEMPT FIXED INCOME FUNDS    8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 Tax-Exempt Fund’s investments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Municipal Bonds	$	—	$	964,566	(1)	$	—	$	964,566
Investment Companies		201,203		—			—		201,203
Short-Term Investments		—		48,564			—		48,564
Total Investments	$	201,203	$	1,013,130		$	—	$	1,214,333

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,147,388
Gross tax appreciation of investments	$	69,966
Gross tax depreciation of investments		(3,021	)
Net tax appreciation of investments	$	66,945

EXPLANATION OF ABBREVIATIONS USED THROUGHOUT THE SCHEDULE OF INVESTMENTS:

AGM - Assured Guarantee Municipal Corporation

AMBAC - American Municipal Bond Assurance Corporation

AMT - Alternative Minimum Tax

BHAC - Berkshire Hathaway Assurance Corporation

CABS - Capital Appreciation Bonds

COPS - Certificates of Participation

CR - Custody Receipt

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 Corp.

PFA - Public Finance Authority

PSF - Permanent School Fund

Q-SBLF - Qualified School Bond Loan Fund

RANS - Revenue Anticipation Notes

SFM - Single Family Mortgage

TANS - Tax Anticipation Notes

TCRS - Transferable Custodial Receipts

TRANS - Tax and Revenue Anticipation Notes

TRB - Tax Revenue Bonds

NORTHERN FUNDS QUARTERLY REPORT    9    TAX-EXEMPT FIXED INCOME FUNDS

SCHEDULE OF INVESTMENTS

TAX-EXEMPT FUND continued DECEMBER 31, 2012 (UNAUDITED)

The interest rates reflected in the Schedules of Investments represent either the stated coupon rate, annualized yield on date of purchase for discount notes, the current reset rate for floating rate securities, the 7-day yield for money market funds 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 DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.3%
Brazil - 7.3%
All America Latina Logistica S.A.		1,502,950	$	6,100
Arteris S.A.		116,220		1,076
Banco Bradesco S.A. ADR		396,427		6,886
Banco do Brasil S.A.		764,559		9,559
Banco Santander Brasil S.A.		649,900		4,752
Banco Santander Brasil S.A. ADR		563,083		4,094
BM&FBovespa S.A.		396,847		2,713
BR Malls Participacoes S.A.		521,400		6,881
CETIP S.A. - Mercados Organizados		943,336		11,698
Cosan S.A. Industria e Comercio		48,073		980
Diagnosticos da America S.A.		743,902		4,792
EcoRodovias Infraestrutura e Logistica S.A.		522,200		4,412
Ez Tec Empreendimentos e Participacoes S.A.		54,456		683
Fibria Celulose S.A.*		1,653,600		18,228
Gafisa S.A. ADR*		14,118		66
Kroton Educacional S.A.*		205,600		4,644
Localiza Rent a Car S.A.		223,000		4,084
MRV Engenharia e Participacoes S.A.		576,210		3,371
Natura Cosmeticos S.A.		159,128		4,557
Oi S.A. ADR		8,120		35
Petroleo Brasileiro S.A.		119,986		1,146
Petroleo Brasileiro S.A. ADR		1,224,395		23,839
Petroleo Brasileiro S.A. ADR		410,040		7,914
Sao Martinho S.A.		21,937		300
Sul America S.A.		103,712		897
Vale S.A.		73,203		1,512
Vale S.A. ADR		1,016,274		21,301
				156,520
Canada - 0.3%
Methanex Corp.		219,725		6,998
Chile - 0.4%
Banco de Chile		3,663,353		592
Banco Santander Chile ADR		35,226		1,004
Cia Cervecerias Unidas S.A.		77,370		1,218
ENTEL Chile S.A.		42,705		883
Sociedad Quimica y Minera de Chile S.A. ADR		81,800		4,715
				8,412
China - 9.8%
AAC Technologies Holdings, Inc.		831,500		2,940
Anhui Conch Cement Co. Ltd., Class H		652,191		2,426
Anta Sports Products Ltd.		3,967,010		3,562
Baidu, Inc. ADR*		189,736		19,029
Bank of China Ltd., Class H		9,092,106		4,116
China Coal Energy Co. Ltd., Class H		2,374,000		2,654
China Communications Services Corp. Ltd., Class H		382,742		222
China Construction Bank Corp., Class H		34,664,508		28,252
China Dongxiang Group Co.		17,013,000		2,274
China Life Insurance Co. Ltd., Class H		1,131,289		3,731
China Merchants Bank Co. Ltd., Class H		1,406,000		3,153
China Petroleum & Chemical Corp., Class H		1,970,363		2,262
China Shenhua Energy Co. Ltd., Class H		2,978,052		13,286
China Zhongwang Holdings Ltd.*		741,200		280
Chongqing Rural Commercial Bank, Class H		2,317,446		1,290
CNOOC Ltd.		6,990,342		15,349
CNOOC Ltd. ADR		22,099		4,862
CSR Corp. Ltd., Class H		5,637,000		5,019
Ctrip.com International Ltd. ADR*		120,202		2,739
Dongfeng Motor Group Co. Ltd., Class H		4,518,652		7,116
Giant Interactive Group, Inc. ADR		230,250		1,246
Great Wall Motor Co. Ltd., Class H		849,420		2,722
Guangzhou Automobile Group Co. Ltd., Class H		17,119,421		15,381
Harbin Electric Co. Ltd., Class H		1,090,978		954
Hengan International Group Co. Ltd.		454,000		4,103
Huadian Power International Co., Class H*		14,151,800		5,003
Industrial & Commercial Bank of China Ltd., Class H		12,313,962		8,880
Inner Mongolia Yitai Coal Co. Ltd., Class B		171,080		976
Jiangxi Copper Co. Ltd., Class H		2,230,000		5,995
Lenovo Group Ltd.		5,514,546		5,048
Mindray Medical International Ltd. ADR		182,371		5,963
Parkson Retail Group Ltd.		5,571,022		4,557
PetroChina Co. Ltd. ADR		30,690		4,413
PetroChina Co. Ltd., Class H		1,960,024		2,815
Ping An Insurance Group Co. of China Ltd., Class H		1,177,500		10,020
Soho China Ltd.		1,358,442		1,101
Tencent Holdings Ltd.		1,800		59
Weichai Power Co. Ltd., Class H		392,000		1,780
Yanzhou Coal Mining Co. Ltd., Class H		2,216,317		3,743
				209,321
Colombia - 0.6%
Almacenes Exito S.A.		41,926		842

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 - 91.3% continued
Colombia - 0.6% continued
Bancolombia S.A. ADR		53,880	$	3,588
Ecopetrol S.A.		362,522		1,120
Pacific Rubiales Energy Corp.		344,195		7,997
				13,547
Czech Republic - 0.9%
CEZ A.S.		14,493		521
Komercni Banka A.S.		85,533		18,098
				18,619
Egypt - 0.6%
Commercial International Bank Egypt S.A.E.		2,235,026		12,149
Hong Kong - 5.3%
Beijing Enterprises Holdings Ltd.		1,032,000		6,766
Belle International Holdings Ltd.		4,801,843		10,604
Central China Real Estate Ltd.		1,807,883		646
Chaoda Modern Agriculture Holdings Ltd.(1) *		5,742,000		—
China Mobile Ltd.		4,703,085		55,091
China Power International Development Ltd.		16,966,400		5,410
Cosco International Holdings Ltd.		1,023,998		456
Galaxy Entertainment Group Ltd.*		1,511,000		6,027
Huabao International Holdings Ltd.		4,673,581		2,312
Kingboard Laminates Holdings Ltd.		10,238,500		4,748
KWG Property Holding Ltd.		643,500		488
Nine Dragons Paper Holdings Ltd.		3,987,000		3,693
Pacific Basin Shipping Ltd.		13,615,600		7,739
Shenzhen Investment Ltd.		757,332		310
Shougang Fushan Resources Group Ltd.		6,651,793		2,485
Skyworth Digital Holdings Ltd.		1,318,000		683
Stella International Holdings Ltd.		887,000		2,405
Texwinca Holdings Ltd.		3,843,000		3,670
Yuexiu Real Estate Investment Trust		508,514		243
				113,776
Hungary - 0.4%
EGIS Pharmaceuticals PLC		2,679		214
Magyar Telekom Telecommunications PLC		2,383,075		4,058
OTP Bank PLC		185,525		3,526
Richter Gedeon Nyrt.		1,731		286
				8,084
India - 5.1%
Allahabad Bank		25,714		81
Andhra Bank		363,434		790
Bajaj Holdings and Investment Ltd.		31,117		561
Bank of Baroda		141,974		2,277
Central Bank Of India		875,675		1,365
Chambal Fertilizers & Chemicals Ltd.		76,335		94
Corp Bank		180,711		1,524
GAIL India Ltd.		635,161		4,171
Gitanjali Gems Ltd.		87,163		854
Grasim Industries Ltd.		22,408		1,299
Gujarat Mineral Development Corp. Ltd.		59,848		237
HCL Technologies Ltd.		553,238		6,265
HDFC Bank Ltd. ADR		186,900		7,611
Housing Development Finance Corp.		173,366		2,644
ICICI Bank Ltd. ADR		215,100		9,381
Indiabulls Financial Services Ltd.		252,062		1,275
Indian Bank		564,826		2,082
Infosys Ltd. ADR		137,390		5,812
Maruti Suzuki India Ltd.		40,599		1,113
McLeod Russel India Ltd.		33,752		215
Oil & Natural Gas Corp. Ltd.		202,258		1,002
Power Finance Corp. Ltd.		505,421		1,890
Punjab National Bank		46,594		747
State Bank of India GDR		60,192		5,433
Syndicate Bank		211,235		496
Tata Chemicals Ltd.		88,700		574
Tata Consultancy Services Ltd.		1,040,274		23,910
Tata Motors Ltd. ADR		62,472		1,794
UCO Bank		620,648		897
Ultratech Cement Ltd.		37,967		1,385
United Phosphorus Ltd.		259,186		627
Vijaya Bank		670,540		771
Wipro Ltd.		2,782,101		20,223
				109,400
Indonesia - 1.8%
Adaro Energy Tbk PT		32,804,388		5,431
AKR Corporindo Tbk PT		1,410,000		609
Aneka Tambang Persero Tbk PT		3,604,825		481
Astra Agro Lestari Tbk PT		408,320		838
Bank Bukopin Tbk PT		4,230,776		272
Bank Mandiri Persero Tbk PT		5,959,031		5,039
Bank Rakyat Indonesia Persero Tbk PT		7,372,500		5,369
Indo Tambangraya Megah Tbk PT		194,722		841
Indofood Sukses Makmur Tbk PT		9,123,500		5,546
Kalbe Farma Tbk PT		132,500		15

MULTI-MANAGER FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.3% continued
Indonesia - 1.8% continued
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		2,855,560	$	693
Sampoerna Agro PT		845,500		221
Semen Gresik Persero Tbk PT		4,936,000		8,131
Tambang Batubara Bukit Asam Persero Tbk PT		1,871,632		2,946
Telekomunikasi Indonesia Persero Tbk PT		1,284,263		1,208
				37,640
Israel - 0.2%
Israel Chemicals Ltd.		374,974		4,520
Malaysia - 1.3%
Axiata Group Bhd.		2,274,500		4,915
Berjaya Sports Toto Bhd.		219,904		321
British American Tobacco Malaysia Bhd.		32,292		655
DiGi.Com Bhd.		1,053,698		1,824
DRB-Hicom Bhd.		1,578,762		1,417
Genting Bhd.		1,906,106		5,756
Genting Malaysia Bhd.		5,780,187		6,737
Hong Leong Financial Group Bhd.		205,740		889
KLCC Property Holdings Bhd.		185,022		380
Kulim Malaysia Bhd.		356,000		573
Lafarge Malayan Cement Bhd.		151,048		477
Malayan Banking Bhd.		412,648		1,242
Malaysia Building Society		946,544		702
Media Prima Bhd.		143,350		110
Parkson Holdings Bhd.		320,781		548
Telekom Malaysia Bhd.		162,687		322
Tradewinds Malaysia Bhd.		63,515		186
UMW Holdings Bhd.		218,300		853
				27,907
Mexico - 6.6%
Alfa S.A.B. de C.V., Series A		1,185,370		2,520
America Movil S.A.B. de C.V., Series L ADR		1,675,608		38,774
America Movil S.A.B. de C.V., Series L		1,945,291		2,241
Arca Continental S.A.B. de C.V.		1,890,472		14,074
Cemex S.A.B. de C.V. ADR*		761,100		7,512
Corp. GEO S.A.B. de C.V., Series B*		1,373,291		1,606
Desarrolladora Homex S.A.B. de C.V. ADR*		11,762		147
Fomento Economico Mexicano S.A.B. de C.V. ADR		76,298		7,683
Gruma S.A.B. de C.V., Series B*		316,949		961
Grupo Bimbo S.A.B. de C.V., Series A		3,026,000		7,835
Grupo Financiero Banorte S.A.B. de C.V., Series O		2,006,264		12,955
Grupo Herdez S.A.B. de C.V.		50,171		154
Grupo Mexico S.A.B. de C.V., Series B		2,758,978		9,953
Grupo Televisa S.A.B. ADR		1,303,783		34,654
Industrias C.H. S.A.B. de C.V., Series B*		115,744		873
				141,942
Norway - 0.0%
STX OSV Holdings Ltd.		302,000		325
Panama - 0.3%
Copa Holdings S.A., Class A		59,700		5,937
Peru - 0.3%
BBVA Banco Continental S.A.		160,780		419
Credicorp Ltd.		43,230		6,336
Intercorp Financial Services, Inc.		13,846		496
				7,251
Philippines - 0.6%
Megaworld Corp.		11,457,000		774
Metropolitan Bank & Trust		3,464,877		8,636
SM Investments Corp.		195,410		4,200
				13,610
Poland - 0.7%
Bank Pekao S.A.		71,870		3,921
Cyfrowy Polsat S.A.*		1,211,357		6,446
KGHM Polska Miedz S.A.		57,140		3,553
PGE S.A.		248,346		1,464
				15,384
Portugal - 0.3%
Jeronimo Martins SGPS S.A.		297,125		5,734
Qatar - 0.2%
Industries Qatar QSC		98,850		4,218
Russia - 5.6%
Gazprom OAO ADR		2,921,129		28,010
Lukoil OAO ADR		264,824		17,705
Magnit OJSC		3,800		595
Magnit OJSC GDR (Registered)		192,461		7,793
Magnitogorsk Iron & Steel Works GDR (Registered)		293,126		1,301
Mail.ru Group Ltd. GDR(2) (3)		17,650		613
Mail.ru Group Ltd. GDR (Registered)		163,387		5,672
MMC Norilsk Nickel OJSC ADR		73,123		1,367
Mobile Telesystems OJSC ADR		262,082		4,888

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 - 91.3% continued
Russia - 5.6% continued
Novolipetsk Steel OJSC GDR (Registered)		193,541	$	3,998
Rosneft OAO GDR (Registered)		548,850		4,956
Sberbank of Russia		6,030,778		18,348
Sberbank of Russia ADR		667,896		8,302
Sberbank of Russia GDR(2) (3) *		38,200		468
Severstal OAO GDR (Registered)		57,388		712
Surgutneftegas OAO ADR		77,609		692
Tatneft OAO ADR		8,798		389
TMK OAO GDR (Registered)		172,180		2,676
Uralkali OJSC GDR (Registered)		206,541		7,958
Yandex N.V., Class A*		223,703		4,825
				121,268
Singapore - 0.2%
China Yuchai International Ltd.		37,225		587
ComfortDelGro Corp. Ltd.		453,000		664
DBS Group Holdings Ltd.		118,000		1,445
Golden Agri-Resources Ltd.		2,615,673		1,408
Indofood Agri Resources Ltd.		391,059		431
				4,535
South Africa - 8.4%
ABSA Group Ltd.		387,562		7,556
African Bank Investments Ltd.		924,110		3,553
Aspen Pharmacare Holdings Ltd.*		526,041		10,513
Aveng Ltd.		957,825		3,466
Barloworld Ltd.		2,272,179		23,420
Bidvest Group Ltd.		176,892		4,526
Coronation Fund Managers Ltd.		78,733		369
Emira Property Fund		137,106		236
Exxaro Resources Ltd.		27,515		563
FirstRand Ltd.		696,233		2,575
Fountainhead Property Trust		498,866		499
Gold Fields Ltd.		110,408		1,370
Imperial Holdings Ltd.		137,673		3,266
Investec Ltd.		199,572		1,394
JSE Ltd.		26,268		242
Liberty Holdings Ltd.		110,884		1,456
Life Healthcare Group Holdings Ltd.		293,121		1,178
Massmart Holdings Ltd.		429,568		9,709
MTN Group Ltd.		780,266		16,400
Naspers Ltd., Class N		255,949		16,445
Reunert Ltd.		105,228		966
RMB Holdings Ltd.		207,905		1,009
Sanlam Ltd.		22,678		121
Sasol Ltd.		188,997		8,205
Shoprite Holdings Ltd.		242,304		5,889
Standard Bank Group Ltd.		1,084,673		15,348
Truworths International Ltd.		3,149,730		40,831
				181,105
South Korea - 15.3%
BS Financial Group, Inc.		536,379		6,664
Coway Co. Ltd.		173,644		7,084
Daelim Industrial Co. Ltd.		22,210		1,825
Daesang Corp.		42,807		1,053
Daishin Securities Co. Ltd.		22,732		213
Daou Technology, Inc.		58,981		872
Dongbu Insurance Co. Ltd.		176,762		7,609
Doosan Corp.		7,161		869
E-Mart Co. Ltd.		34,080		7,583
Grand Korea Leisure Co. Ltd.		51,740		1,388
Hana Financial Group, Inc.		212,015		6,931
Hankook Tire Co. Ltd.*		382,931		16,922
Hankook Tire Worldwide Co. Ltd.		80,051		1,490
Honam Petrochemical Corp.		497		115
Hyundai Department Store Co. Ltd.		21,613		3,220
Hyundai Mipo Dockyard		54,350		6,526
Hyundai Motor Co.		148,451		30,555
Industrial Bank of Korea		521,410		5,808
KB Financial Group, Inc. ADR		155,739		5,591
KCC Corp.		3,204		893
Kia Motors Corp.		17,928		954
Korea Gas Corp.		15,567		1,098
Korea Zinc Co. Ltd.		5,009		1,909
KT Corp.		19,333		643
KT&G Corp.		31,046		2,354
LG Chem Ltd.		35,717		11,104
LG Electronics, Inc.		66,300		4,581
Mando Corp.		27,680		3,342
Neo Holdings Co. Ltd.*		7,161		—
NHN Corp.		35,140		7,493
NongShim Co. Ltd.		1,317		335
POSCO		137		45
POSCO ADR		87,900		7,221
Samsung Electronics Co. Ltd.		85,988		123,068
Samsung Engineering Co. Ltd.		14,788		2,305
Samsung Heavy Industries Co. Ltd.		418,974		15,247
Shinhan Financial Group Co. Ltd.		591,385		21,511
SK Holdings Co. Ltd.		10,504		1,760

MULTI-MANAGER FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 91.3% continued
South Korea - 15.3% continued
SK Innovation Co. Ltd.		5,823	$	955
SK Telecom Co. Ltd.		51,375		7,323
SK Telecom Co. Ltd. ADR		17,475		277
Taekwang Industrial Co. Ltd.		207		183
Woori Finance Holdings Co. Ltd.		151,990		1,688
Youngone Corp.		25,650		792
				329,399
Taiwan - 8.6%
Advanced Semiconductor Engineering, Inc.		5,797,584		5,031
Advanced Semiconductor Engineering, Inc. ADR		83,797		359
AmTRAN Technology Co. Ltd.		418,000		327
Asustek Computer, Inc.		189,923		2,145
Chicony Electronics Co. Ltd.		275,223		639
Chipbond Technology Corp.		2,388,000		4,716
Compal Electronics, Inc.		6,571,000		4,446
Farglory Land Development Co. Ltd.		465,870		843
Formosa Chemicals & Fibre Corp.		65,041		169
Highwealth Construction Corp.		168,164		317
Hon Hai Precision Industry Co. Ltd.		12,409,896		38,256
Hon Hai Precision Industry Co. Ltd. GDR (Registered)		53,859		325
Lite-On Technology Corp.		1,155,033		1,538
MediaTek, Inc.		873,126		9,767
MStar Semiconductor, Inc.		116,000		874
Pegatron Corp.*		2,084,383		2,712
Phison Electronics Corp.		179,698		1,196
Pou Chen Corp.		1,441,147		1,518
President Chain Store Corp.		3,506,721		18,809
Radiant Opto-Electronics Corp.		411,603		1,707
Simplo Technology Co. Ltd.		407,200		2,057
Synnex Technology International Corp.		1,884,684		3,502
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		1,690,933		29,016
Taiwan Semiconductor Manufacturing Co. Ltd.		12,985,542		43,461
Teco Electric and Machinery Co. Ltd.		2,323,497		1,785
TSRC Corp.		172,041		350
U-Ming Marine Transport Corp.		116,804		187
Uni-President Enterprises Corp.		743,176		1,367
United Microelectronics Corp.		2,102,074		850
Vanguard International Semiconductor Corp.		454,000		319
Wistron Corp.		425,364		443
Yageo Corp.*		17,119,000		5,444
				184,475
Thailand - 2.4%
Bangkok Bank PCL (Registered)		851,174		5,832
Bangkok Bank PCL NVDR		815,739		5,237
BEC World PCL (Registered)		279,600		649
CP ALL PCL NVDR		1,432,464		2,149
Kasikornbank PCL (Registered)		1,131,199		7,182
Kasikornbank PCL NVDR		1,487,500		9,447
Kiatnakin Bank PCL (Registered)		485,000		769
Krung Thai Bank PCL (Registered)		1,372,192		897
Land and Houses PCL (Registered)		683,300		219
Land and Houses PCL NVDR		29,490,021		9,433
PTT PCL NVDR		645,800		7,042
Siam Makro PCL (Registered)		38,300		558
Thai Airways International PCL (Registered)*		1,255,100		907
Thai Beverage PCL		1,701,160		552
Total Access Communication PCL NVDR		222,892		646
				51,519
Turkey - 3.3%
Akbank T.A.S.		472,675		2,337
Anadolu Efes Biracilik Ve Malt Sanayii A.S.		127,961		1,847
Arcelik A.S.		681,239		4,484
Eregli Demir ve Celik Fabrikalari T.A.S.		1,194,597		1,646
Ford Otomotiv Sanayi A.S.		503,083		6,055
Haci Omer Sabanci Holding A.S.		822,139		4,544
Tekfen Holding A.S.		119,856		488
Tofas Turk Otomobil Fabrikasi A.S.		291,980		1,717
Trakya Cam Sanayi A.S.*		2,331,604		3,196
Tupras Turkiye Petrol Rafinerileri A.S.		813,131		23,524
Turkiye Garanti Bankasi A.S.		2,693,344		14,012
Turkiye Sise ve Cam Fabrikalari A.S.		831,405		1,379
Turkiye Vakiflar Bankasi Tao, Class D		1,836,900		4,763
Ulker Biskuvi Sanayi A.S.		98,638		535
				70,527
United Arab Emirates - 0.6%
Aldar Properties PJSC		2,484,175		865
Emaar Properties PJSC		10,801,827		11,043
				11,908
United Kingdom - 2.1%
Afren PLC*		3,083,579		6,761

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 - 91.3% continued
United Kingdom - 2.1% continued
Anglo American PLC		581,255	$	18,207
BHP Billiton PLC		171,524		6,054
Eurasia Drilling Co. Ltd. GDR (Registered)		119,893		4,303
Globaltrans Investment PLC GDR (Registered)		206,546		3,452
SABMiller PLC		147,274		6,769
				45,546
United States - 1.8%
Central European Media Enterprises Ltd., Class A*		371,176		2,275
Cognizant Technology Solutions Corp., Class A*		83,200		6,161
First Cash Financial Services, Inc.*		84,800		4,208
Southern Copper Corp.		155,600		5,891
Tenaris S.A. ADR		472,744		19,817
				38,352
Total Common Stocks(4) (Cost $1,676,131)(4)				1,959,928
PREFERRED STOCKS - 4.4%
Brazil - 4.4%
Banco Bradesco S.A.		39,006		670
Banco do Estado do Rio Grande do Sul S.A., Class B		103,606		785
Bradespar S.A.		39,150		628
Cia de Bebidas das Americas ADR		220,600		9,263
Eletropaulo Metropolitana Eletricidade de Sao Paulo S.A.		63,979		525
Itau Unibanco Holding S.A.		75,294		1,228
Itau Unibanco Holding S.A. ADR		2,166,724		35,664
Klabin S.A.		203,260		1,270
Lojas Americanas S.A.		1,422,083		12,731
Marcopolo S.A.		893,900		5,632
Metalurgica Gerdau S.A.		84,457		945
Petroleo Brasileiro S.A.		1,008,756		9,617
Randon Participacoes S.A.		873,750		5,415
Usinas Siderurgicas de Minas Gerais S.A., Class A		949,600		5,936
Vale S.A.		156,314		3,120
Total Preferred Stocks(4) (Cost $87,813)(4)				93,429
WARRANTS - 1.3%
India - 0.6%
ITC Ltd., Exp. 5/2/13*		1,086,400		5,679
Maruti Suzuki India Ltd., Exp. 2/9/15*		250,850		6,809
				12,488
Taiwan - 0.7%
Chinatrust Financial Holding Co. Ltd., Exp. 3/9/16, Strike $0.01*		11,491,403		6,780
Hon Hai Precision Industry Co. Ltd., Exp. 1/17/17(2) (3) *		2,468,000		7,554
Simplo Technology Co. Ltd., Exp. 6/6/22*		59,800		300
				14,634
Total Warrants(4) (Cost $26,102)(4)				27,122
INVESTMENT COMPANIES - 2.5%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(5) (6)		54,332,809		54,333
Total Investment Companies (Cost $54,333)				54,333
Total Investments - 99.5% (Cost $1,844,379)				2,134,812
Other Assets less Liabilities - 0.5%				11,627
NET ASSETS - 100.0%			$	2,146,439

(1) Security has been deemed worthless and is a Level 3 investment.

(2) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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) Restricted security that has been deemed illiquid. At December 31, 2012, the value of these restricted illiquid securities amounted to approximately $8,635,000 or 0.4% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000S)
Hon Hai Precision Industry Co. Ltd., Exp. 1/17/17		11/11/11-8/14/12	$	6,301
Mail.ru Group Ltd. GDR		9/25/12		601
Sberbank of Russia GDR		9/19/12		465

MULTI-MANAGER FUNDS     6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

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

(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 $20,401,000 during the nine months ended December 31, 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.

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 2012, the industry sectors for the Multi-Manager Emerging Markets Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		14.3	%
Consumer Staples		6.8
Energy		11.5
Financials		23.2
Health Care		1.1
Industrials		6.8
Information Technology		19.5
Materials		9.2
Telecommunication Services		6.7
Utilities		0.9
Total		100.0	%

At December 31, 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		25.3	%
Korean Won		15.2
Hong Kong Dollar		13.6
South African Rand		10.2
Taiwan Dollar		7.5
Brazilian Real		6.8
All other currencies less than 5%		21.4
Total		100.0	%

At December 31, 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)
Euro		233	United States Dollar		308		1/2/13	$	—	*
Hong Kong Dollar		964	United States Dollar		124		1/2/13		—	*
Hong Kong Dollar		1,762	United States Dollar		227		1/2/13		—	*
Polish Zloty		621	United States Dollar		202		1/2/13		1
United States Dollar		30	Hong Kong Dollar		232		1/2/13		—	*
United States Dollar		29	Hong Kong Dollar		225		1/2/13		—	*
United States Dollar		18	South African Rand		154		1/2/13		—	*
United States Dollar		—	South African Rand		—		1/2/13		—	*
Euro		221	United States Dollar		292		1/3/13		—	*
Hong Kong Dollar		233	United States Dollar		30		1/3/13		—	*
Hong Kong Dollar		381	United States Dollar		49		1/3/13		—	*
Hong Kong Dollar		1,838	United States Dollar		237		1/3/13		—	*
Hong Kong Dollar		598	United States Dollar		77		1/3/13		—	*
Polish Zloty		77	United States Dollar		25		1/3/13		—	*
South African Rand		67	United States Dollar		8		1/3/13		—	*
South African Rand		141	United States Dollar		17		1/3/13		—	*
United States Dollar		76	South African Rand		642		1/4/13		—	*
United States Dollar		136	South African Rand		1,148		1/7/13		—	*
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 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 indices). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 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.

NORTHERN FUNDS QUARTERLY REPORT    7    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER EMERGING MARKETS EQUITY FUND continued

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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)			TOTAL (000S)
Common Stocks
Consumer Discretionary	$	51,982	$	226,958		$	—		$	278,940
Consumer Staples		38,220		87,906			—	*		126,126
Energy		72,088		157,088			—			229,176
Financials		118,006		320,290			—			438,296
Health Care		10,756		12,205			—			22,961
Industrials		24,716		105,925			—			130,641
Information Technology		67,059		330,053			—			397,112
Materials		84,203		95,056			—			179,259
Telecommunication Services		47,097		92,652			—			139,749
Utilities		—		17,668			—			17,668
Preferred Stocks
Consumer Discretionary		12,731		—			—			12,731
Consumer Staples		9,263		—			—			9,263
Energy		9,617		—			—			9,617
Financials		38,347		—			—			38,347
Industrials		11,047		—			—			11,047
Materials		11,899		—			—			11,899
Utilities		525		—			—			525
Warrants
Consumer Discretionary		6,809		—			—			6,809
Consumer Staples		5,679		—			—			5,679
Financials		6,780		—			—			6,780
Information Technology		7,854		—			—			7,854
Investment Companies		54,333		—			—			54,333
Total Investments	$	689,011	$	1,445,801		$	—		$	2,134,812
OTHER FINANCIAL INSTRUMENTS
Assets
Foreign Currency Exchange Contracts	$	—	$	1		$	—		$	1
Liabilities
Foreign Currency Exchange Contracts		—		—	*		—			—
Total Other Financial Instruments	$	—	$	1	*	$	—		$	1

* Amount rounds to less than one thousand.

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1
Industry	Value (000S)		Reason
Common Stocks
Consumer Discretionary	$	5,661	Valuations at unadjusted quoted market price
Consumer Staples		29,099	Valuations at unadjusted quoted market price
Energy		2,126	Valuations at unadjusted quoted market price
Financials		68,395	Valuations at unadjusted quoted market price
Health Care		4,792	Valuations at unadjusted quoted market price
Industrials		17,116	Valuations at unadjusted quoted market price
Materials		30,566	Valuations at unadjusted quoted market price
Telecommunication Services		3,124	Valuations at unadjusted quoted market price
Preferred Stocks
Consumer Discretionary		12,731	Valuations at unadjusted quoted market price
Energy		9,617	Valuations at unadjusted quoted market price
Financials		2,683	Valuations at unadjusted quoted market price
Industrials		5,632	Valuations at unadjusted quoted market price
Materials		11,899	Valuations at unadjusted quoted market price
Utilities		525	Valuations at unadjusted quoted market price
Total	$	203,966

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

DECEMBER 31, 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 12/31/12 (000S)

Common Stock

Consumer Staples

$

—

*

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

*

Total

$

—

*

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

*

* Amount rounds to less than one thousand.

There was no change in net unrealized appreciation (depreciation) on investments in Level 3 securuties still held at December 31, 2012.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,869,031
Gross tax appreciation of investments	$	380,237
Gross tax depreciation of investments		(114,456	)
Net tax appreciation of investments	$	265,781

NORTHERN FUNDS QUARTERLY REPORT    9    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.7%
Australia - 4.1%
Asciano Ltd.		290,426	$	1,419
Australian Infrastructure Fund		124,650		404
Spark Infrastructure Group		326,900		572
Sydney Airport		147,635		521
Transurban Group		750,778		4,768
				7,684
Brazil - 1.5%
EDP - Energias do Brasil S.A.		136,800		835
LLX Logistica S.A.*		380,900		446
Transmissora Alianca de Energia Eletrica S.A.		144,500		1,539
				2,820
Canada - 11.1%
Enbridge, Inc.		212,673		9,198
Keyera Corp.		29,200		1,445
Pembina Pipeline Corp.		60,300		1,725
TransCanada Corp.		171,400		8,102
Veresen, Inc.		48,300		575
				21,045
Chile - 0.1%
Enersis S.A. ADR		12,700		231
China - 2.0%
Anhui Expressway Co., Class H		170,800		97
Dalian Port PDA Co. Ltd., Class H		2,224,000		530
Guangshen Railway Co. Ltd., Class H		669,400		268
Jiangsu Expressway Co. Ltd., Class H		1,577,000		1,633
Sichuan Expressway Co. Ltd., Class H		479,600		175
Zhejiang Expressway Co. Ltd., Class H		1,308,300		1,035
				3,738
France - 5.1%
Aeroports de Paris		12,805		989
Eutelsat Communications S.A.		45,428		1,508
GDF Suez		57,429		1,183
Groupe Eurotunnel S.A. (Registered)		643,351		4,968
Vinci S.A.		22,406		1,066
				9,714
Germany - 2.0%
E.ON S.E.		70,218		1,308
Fraport A.G. Frankfurt Airport Services Worldwide		31,563		1,838
Hamburger Hafen und Logistik A.G.		29,590		696
				3,842
Hong Kong - 4.7%
Beijing Enterprises Holdings Ltd.		613,500		4,022
China Merchants Holdings International Co. Ltd.		414,000		1,351
China Resources Gas Group Ltd.		87,000		180
COSCO Pacific Ltd.		488,000		711
Hong Kong & China Gas Co. Ltd.		951,900		2,623
				8,887
Italy - 2.2%
Atlantia S.p.A.		119,597		2,169
Snam S.p.A.		355,300		1,652
Societa Iniziative Autostradali e Servizi S.p.A.		24,500		229
				4,050
Japan - 2.8%
Japan Airport Terminal Co. Ltd.		27,300		281
Kamigumi Co. Ltd.		69,000		548
Osaka Gas Co. Ltd.		134,000		487
Tokyo Gas Co. Ltd.		689,200		3,151
West Japan Railway Co.		23,000		906
				5,373
Mexico - 0.1%
OHL Mexico S.A.B. de C.V.*		102,093		224
Netherlands - 1.6%
Koninklijke Vopak N.V.		42,760		3,015
Singapore - 1.0%
Hutchison Port Holdings Trust, Class U		2,470,300		1,961
Spain - 3.9%
Abertis Infraestructuras S.A.		238,745		3,979
Ferrovial S.A.		170,100		2,508
Iberdrola S.A.		116,499		650
Red Electrica Corp. S.A.		5,267		260
				7,397
Switzerland - 1.3%
Flughafen Zuerich A.G. (Registered)		5,423		2,512
United Arab Emirates - 0.5%
DP World Ltd.		71,300		843
United Kingdom - 7.5%
Centrica PLC		257,951		1,401
National Grid PLC		668,951		7,663
Pennon Group PLC		54,819		558
Severn Trent PLC		43,028		1,102
SSE PLC		45,756		1,058

NORTHERN FUNDS QUARTERLY REPORT    1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.7% continued
United Kingdom - 7.5% continued
United Utilities Group PLC		211,000	$	2,315
				14,097
United States - 45.2%
Access Midstream Partners L.P.		87,900		2,948
American Electric Power Co., Inc.		9,400		401
American Tower Corp.		79,600		6,151
American Water Works Co., Inc.		22,200		824
Corrections Corp. of America		22,200		787
Crown Castle International Corp.*		68,500		4,943
Dominion Resources, Inc.		21,000		1,088
Duke Energy Corp.		35,900		2,290
El Paso Pipeline Partners L.P.		11,820		437
Enbridge Energy Partners L.P.		10,000		279
Energy Transfer Equity L.P.		62,400		2,838
Enterprise Products Partners L.P.		78,600		3,936
EQT Midstream Partners L.P.		37,300		1,162
Exelon Corp.		43,800		1,302
Inergy L.P.		128,900		2,345
ITC Holdings Corp.		4,754		366
Kinder Morgan, Inc.		201,800		7,129
Magellan Midstream Partners L.P.		4,300		186
MarkWest Energy Partners L.P.		45,900		2,341
MPLX LP*		38,200		1,191
NextEra Energy, Inc.		10,900		754
NiSource, Inc.		13,900		346
Norfolk Southern Corp.		28,100		1,738
Northeast Utilities		44,700		1,747
ONEOK, Inc.		81,700		3,493
PG&E Corp.		120,900		4,858
SBA Communications Corp., Class A*		37,600		2,670
Sempra Energy		57,200		4,058
Southern (The) Co.		44,600		1,909
Southwest Gas Corp.		41,100		1,743
Spectra Energy Corp.		219,900		6,021
Sunoco Logistics Partners L.P.		58,300		2,899
Targa Resources Corp.		26,700		1,411
Union Pacific Corp.		12,000		1,509
Western Gas Equity Partners LP*		27,000		809
Williams (The) Cos., Inc.		199,900		6,545
Williams Partners L.P.		4,206		205
				85,659
Total Common Stocks(1) (Cost $180,714)				183,092
INVESTMENT COMPANIES - 19.9%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(2) (3)		37,710,997		37,711
Total Investment Companies (Cost $37,711)				37,711

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.1%
U.S. Treasury Bill,
0.12%, 4/25/13(4)	$	260	$	260
Total Short-Term Investments (Cost $260)				260
Total Investments - 116.7% (Cost $218,685)				221,063
Liabilities less Other Assets - (16.7)%				(31,631	)
NET ASSETS - 100.0%			$	189,432

(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) The Fund had approximately $37,711,000 of net purchases in the Diversified Assets Portfolio of the Northern Institutional Funds during the period September 18, 2012 (commencement of operations) to December 31, 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.

(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 December 31, 2012, the Multi-Manager Global Listed Infrastructure 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		18	$	1,278		Long		3/13	$	13
Mini MSCI EAFE Index		12		972		Long		3/13		13
Total									$	26

MULTI-MANAGER FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

At December 31, 2012, the Multi-Manager Global Listed Infrastructure 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		172	United States Dollar		277		1/2/13	$	(3	)
Hong Kong Dollar		716	United States Dollar		92		1/2/13		—	*
United States Dollar		153	British Pound		95		1/2/13		—	*
United States Dollar		50	British Pound		31		1/2/13		1
United States Dollar		213	Canadian Dollar		212		1/2/13		—	*
United States Dollar		80	Canadian Dollar		79		1/2/13		—	*
United States Dollar		32	Canadian Dollar		32		1/2/13		—	*
United States Dollar		29	Canadian Dollar		29		1/2/13		—	*
United States Dollar		34	Euro		26		1/2/13		—	*
United States Dollar		80	Euro		61		1/2/13		—	*
United States Dollar		250	Hong Kong Dollar		1,939		1/2/13		—	*
United States Dollar		123	Hong Kong Dollar		950		1/2/13		—	*
United States Dollar		84	Hong Kong Dollar		648		1/2/13		—	*
United States Dollar		21	Hong Kong Dollar		166		1/2/13		—	*
United States Dollar		16	Hong Kong Dollar		123		1/2/13		—	*
United States Dollar		13	Hong Kong Dollar		99		1/2/13		—	*
United States Dollar		9	Hong Kong Dollar		71		1/2/13		—	*
United States Dollar		57	Australian Dollar		55		1/3/13		—	*
United States Dollar		119	Australian Dollar		115		1/3/13		—	*
United States Dollar		152	British Pound		94		1/3/13		1
United States Dollar		1,128	Canadian Dollar		1,124		1/3/13		2
United States Dollar		898	Canadian Dollar		895		1/3/13		2
United States Dollar		343	Canadian Dollar		342		1/3/13		1
United States Dollar		230	Canadian Dollar		229		1/3/13		—	*
United States Dollar		114	Canadian Dollar		113		1/3/13		—	*
United States Dollar		57	Euro		43		1/3/13		—	*
United States Dollar		57	Euro		43		1/3/13		—	*
United States Dollar		57	Euro		43		1/3/13		—	*
United States Dollar		86	Euro		65		1/3/13		—	*
United States Dollar		88	Euro		66		1/3/13		—	*
United States Dollar		124	Euro		94		1/3/13		—	*
United States Dollar		812	Hong Kong Dollar		6,291		1/3/13		—	*
United States Dollar		291	Hong Kong Dollar		2,253		1/3/13		—	*
United States Dollar		272	Hong Kong Dollar		2,106		1/3/13		—	*
United States Dollar		164	Hong Kong Dollar		1,272		1/3/13		—	*
United States Dollar		113	Hong Kong Dollar		874		1/3/13		—	*
United States Dollar		85	Hong Kong Dollar		658		1/3/13		—	*
United States Dollar		14	Hong Kong Dollar		108		1/3/13		—	*
United States Dollar		43	Hong Kong Dollar		331		1/3/13		—	*
United States Dollar		71	Hong Kong Dollar		547		1/3/13		—	*
United States Dollar		80	Hong Kong Dollar		621		1/3/13		—	*
United States Dollar		130	Hong Kong Dollar		1,011		1/3/13		—	*
United States Dollar		168	Hong Kong Dollar		1,302		1/3/13		—	*
United States Dollar		321	Hong Kong Dollar		2,490		1/3/13		—	*
United States Dollar		1,165	Hong Kong Dollar		9,027		1/3/13		—	*
United States Dollar		91	Swiss Franc		84		1/3/13		—	*
United States Dollar		120	Australian Dollar		115		1/4/13		—	*
United States Dollar		1,236	British Pound		761		1/4/13		—	*
United States Dollar		464	British Pound		286		1/4/13		—	*
United States Dollar		555	Euro		421		1/4/13		—	*
United States Dollar		532	Euro		404		1/4/13		—	*
United States Dollar		350	Euro		265		1/4/13		—	*

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL LISTED INFRASTRUCTURE 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		302	Euro		229		1/4/13	$	—	*
United States Dollar		191	Euro		145		1/4/13		—	*
United States Dollar		108	Euro		82		1/4/13		—	*
United States Dollar		46	Swiss Franc		42		1/4/13		—	*
United States Dollar		52	Japanese Yen		4,511		1/7/13		—	*
United States Dollar		42	Japanese Yen		3,615		1/8/13		—	*
United States Dollar		198	Japanese Yen		17,005		1/8/13		(1	)
United States Dollar		201	Japanese Yen		17,260		1/8/13		(1	)
Total								$	2

* Amount rounds to less than one thousand.

At December 31, 2012, the industry sectors for the Multi-Manager Global Listed Infrastructure Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		0.8	%
Energy		34.8
Financials		3.4
Industrials		27.4
Telecommunication Services		4.1
Utilities		29.5
Total		100.0	%

At December 31, 2012, the Multi-Manager Global Listed Infrastructure Fund’s investments were denominated in the following currencies:

CONCENTRATION BY CURRENCY	% OF LONG-TERM INVESTMENTS
United States Dollar		48.0	%
Euro		15.3
Canadian Dollar		11.5
British Pound		8.1
Hong Kong Dollar		6.9
All other currencies less than 5%		10.2
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). The Fund adjusted the price of certain foreign equity securities held in its portfolio on December 31, 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 Listed Infrastructure Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	—	$	1,508		$	—	$	1,508
Energy		63,727		—			—		63,727
Financials		6,151		—			—		6,151
Industrials		4,704		45,442			—		50,146
Telecommunication Services		7,613		—			—		7,613
Utilities		27,784		26,163			—		53,947
Investment Companies		37,711		—			—		37,711
Short-Term Investments		—		260			—		260
Total Investments	$	147,690	$	73,373		$	—	$	221,063
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	26	$	—		$	—	$	26
Foreign Currency Exchange Contracts		—		7			—		7
Liabilities
Foreign Currency Exchange Contracts		—		(5	)		—		(5	)
Total Other Financial Instruments	$	26	$	2		$	—	$	28

MULTI-MANAGER FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. Due to the Fund commencing investment operations on September 18, 2012, there were no transfers between Level 1, Level 2 or Level 3 classifications. 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	219,012
Gross tax appreciation of investments	$	4,662
Gross tax depreciation of investments		(2,611	)
Net tax appreciation of investments	$	2,051

NORTHERN FUNDS QUARTERLY REPORT    5    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2%
Australia - 6.9%
BGP Holdings PLC - (Fractional Shares)*		3,277,404	$	—
Centro Retail Australia		3,122,168		7,392
CFS Retail Property Trust Group		600,000		1,202
Charter Hall Retail REIT		857,254		3,362
Cromwell Property Group		3,757,610		3,200
Dexus Property Group		3,535,857		3,749
Goodman Group		754,589		3,433
GPT Group		2,624,288		10,141
Investa Office Fund		511,050		1,593
Mirvac Group		4,479,612		6,981
Stockland		2,630,484		9,698
Westfield Group		1,673,713		18,468
Westfield Retail Trust		1,884,351		5,930
				75,149
Austria - 0.1%
Atrium European Real Estate Ltd.		254,503		1,495
Brazil - 0.0%
Sonae Sierra Brasil S.A.		21,500		339
Canada - 2.8%
Boardwalk Real Estate Investment Trust		93,600		6,072
Calloway Real Estate Investment Trust		55,000		1,601
Canadian Real Estate Investment Trust		15,100		658
Dundee Real Estate		15,648		589
Dundee Real Estate Investment Trust		49,019		1,845
Primaris Retail Real Estate Investment Trust		87,122		2,356
RioCan Real Estate Investment Trust		607,234		16,824
				29,945
China - 0.5%
Agile Property Holdings Ltd.		1,665,000		2,384
Country Garden Holdings Co. Ltd.*		4,894,533		2,619
Guangzhou R&F Properties Co. Ltd., Class H		532,400		899
				5,902
France - 4.2%
Fonciere Des Regions		19,654		1,647
ICADE		110,184		9,884
Klepierre		232,364		9,366
Mercialys S.A.		5,000		114
Societe Immobiliere de Location pour l’Industrie et le Commerce		8,820		969
Unibail-Rodamco S.E.		99,052		24,248
				46,228
Germany - 0.4%
Deutsche Wohnen A.G. (Bearer)		127,535		2,355
GSW Immobilien A.G.		40,528		1,713
				4,068
Hong Kong - 13.9%
Cheung Kong Holdings Ltd.		123,100		1,905
China Overseas Land & Investment Ltd.		3,223,500		9,765
China Resources Land Ltd.		1,583,000		4,353
Hang Lung Properties Ltd.		3,075,496		12,331
Henderson Land Development Co. Ltd.		342,000		2,436
Hongkong Land Holdings Ltd.		3,394,270		23,871
Hysan Development Co. Ltd.		3,048,237		14,741
Kerry Properties Ltd.		2,363,400		12,344
Lifestyle International Holdings Ltd.		3,994,400		9,878
Link REIT (The)		1,473,295		7,369
New World Development Co. Ltd.		1,625,800		2,552
Shangri-La Asia Ltd.		4,734,333		9,540
Sino Land Co. Ltd.		4,259,840		7,715
Sun Hung Kai Properties Ltd.		1,332,072		20,105
Swire Properties Ltd.		697,000		2,344
Wharf Holdings Ltd.		1,199,190		9,488
				150,737
Japan - 9.4%
Activia Properties, Inc.		376		2,353
Aeon Mall Co. Ltd.		335,000		8,188
Daiwa House Industry Co. Ltd.		515,000		8,862
GLP J-Reit*		1,998		1,527
Japan Real Estate Investment Corp.		682		6,690
Japan Retail Fund Investment Corp.		1,160		2,128
Kenedix Realty Investment Corp.		196		681
Mitsubishi Estate Co. Ltd.		1,442,680		34,489
Mitsui Fudosan Co. Ltd.		993,484		24,272
Nippon Accommodations Fund, Inc.		84		582
Sumitomo Realty & Development Co. Ltd.		232,200		7,715
Tokyo Tatemono Co. Ltd.		827,808		4,251
United Urban Investment Corp.		876		1,004
				102,742
Mexico - 0.2%
Fibra Uno Administracion S.A. de C.V.		665,735		2,009
Netherlands - 1.0%
Corio N.V.		112,156		5,103
Eurocommercial Properties N.V. - CVA		138,090		5,510
				10,613

NORTHERN FUNDS QUARTERLY REPORT    1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2% continued
Norway - 0.2%
Norwegian Property ASA		1,114,506	$	1,717
Philippines - 0.1%
SM Prime Holdings, Inc.		3,877,942		1,562
Singapore - 5.0%
CapitaCommercial Trust		2,563,000		3,543
CapitaLand Ltd.		5,361,579		16,448
CapitaMall Trust		2,629,000		4,606
CapitaMalls Asia Ltd.		1,050,000		1,689
CDL Hospitality Trusts		512,000		791
City Developments Ltd.		1,197,000		12,768
Global Logistic Properties Ltd.		3,255,100		7,485
Keppel Land Ltd.		1,646,100		5,502
Suntec Real Estate Investment Trust		1,221,000		1,683
				54,515
Spain - 0.5%
Melia Hotels International S.A.		692,900		5,325
Sweden - 0.8%
Castellum AB		512,910		7,292
Hufvudstaden AB, Class A		80,580		1,022
				8,314
Switzerland - 0.2%
PSP Swiss Property A.G. (Registered)		24,103		2,287
Thailand - 0.7%
Central Pattana PCL (Registered)		2,704,000		7,226
United Kingdom - 5.9%
British Land Co. PLC		244,748		2,275
Derwent London PLC		476,668		16,388
Great Portland Estates PLC		1,184,151		9,461
Hammerson PLC		1,816,140		14,633
Land Securities Group PLC		1,272,169		17,199
Safestore Holdings PLC		368,100		648
Segro PLC		72,900		299
Shaftesbury PLC		330,000		3,073
				63,976
United States - 44.4%
Alexandria Real Estate Equities, Inc.		115,600		8,013
American Campus Communities, Inc.		182,300		8,410
American Tower Corp.		83,797		6,475
Apartment Investment & Management Co., Class A		221,100		5,983
AvalonBay Communities, Inc.		57,342		7,775
Boston Properties, Inc.		213,600		22,601
BRE Properties, Inc.		64,100		3,258
Brookfield Office Properties, Inc.		607,240		10,329
Colonial Properties Trust		153,836		3,288
CommonWealth REIT		151,937		2,407
CubeSmart		254,000		3,701
DDR Corp.		946,738		14,826
Digital Realty Trust, Inc.		24,226		1,645
Douglas Emmett, Inc.		454,215		10,583
DuPont Fabros Technology, Inc.		133,996		3,237
Education Realty Trust, Inc.		392,130		4,172
Equity Residential		464,496		26,323
Essex Property Trust, Inc.		97,600		14,313
Extra Space Storage, Inc.		102,241		3,721
Federal Realty Investment Trust		92,400		9,611
Forest City Enterprises, Inc., Class A*		278,223		4,493
General Growth Properties, Inc.		392,555		7,792
HCP, Inc.		334,998		15,135
Health Care REIT, Inc.		328,300		20,122
Hersha Hospitality Trust		352,460		1,762
Highwoods Properties, Inc.		47,200		1,579
Home Properties, Inc.		67,872		4,161
Host Hotels & Resorts, Inc.		1,002,012		15,702
Hyatt Hotels Corp., Class A*		110,539		4,264
Kilroy Realty Corp.		219,300		10,388
Kimco Realty Corp.		454,172		8,775
Liberty Property Trust		109,800		3,928
Macerich (The) Co.		115,221		6,717
Mack-Cali Realty Corp.		90,022		2,350
Orient-Express Hotels Ltd., Class A*		357,024		4,174
Pebblebrook Hotel Trust		44,300		1,023
Plum Creek Timber Co., Inc.		100,500		4,459
Post Properties, Inc.		72,100		3,601
Prologis, Inc.		677,654		24,728
Public Storage		143,694		20,830
Regency Centers Corp.		50,748		2,391
Simon Property Group, Inc.		382,693		60,500
SL Green Realty Corp.		134,979		10,346
Starwood Hotels & Resorts Worldwide, Inc.		105,800		6,069
Strategic Hotels & Resorts, Inc.*		209,101		1,338
Tanger Factory Outlet Centers		98,103		3,355
Taubman Centers, Inc.		144,100		11,344
UDR, Inc.		576,418		13,707
Ventas, Inc.		384,288		24,871
Vornado Realty Trust		128,974		10,328

MULTI-MANAGER FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 97.2% continued
United States - 44.4% continued
Washington Real Estate Investment Trust		90,204	$	2,359
				483,262
Total Common Stocks(1) (Cost $815,151)(1)				1,057,411
INVESTMENT COMPANIES - 2.0%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(2)(3)		21,588,173		21,588
Total Investment Companies (Cost $21,588)				21,588
Total Investments - 99.2% (Cost $836,739)				1,078,999
Other Assets less Liabilities - 0.8%				8,654
NET ASSETS - 100.0%			$	1,087,653

(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 $5,171,000 during the nine months ended December 31, 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 December 31, 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		15.9
Diversified REITs		8.5
Hotels, Resorts & Cruise Lines		2.8
Industrial REITs		2.8
Office REITs		11.1
Real Estate Development		3.3
Real Estate Operating Companies		9.5
Residential REITs		9.6
Retail REITs		24.2
Specialized REITs		11.4
Total		100.0	%

At December 31, 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		48.0	%
Hong Kong Dollar		12.6
Japanese Yen		9.7
Australian Dollar		7.1
Euro		6.4
British Pound		6.1
Singapore Dollar		5.1
All other currencies less than 5%		5.0
Total		100.0	%

At December 31, 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)
Australian Dollar		193	United States Dollar		200		1/2/13	$	(1	)
Euro		226	United States Dollar		299		1/2/13		1
Euro		17	United States Dollar		23		1/2/13		—	*
Euro		6	United States Dollar		8		1/2/13		—	*
Euro		9	United States Dollar		12		1/2/13		—	*
Hong Kong Dollar		2,869	United States Dollar		370		1/2/13		—	*
Singapore Dollar		45	United States Dollar		36		1/2/13		—	*
Singapore Dollar		559	United States Dollar		457		1/2/13		—	*
Singapore Dollar		645	United States Dollar		528		1/2/13		(1	)
United States Dollar		12	British Pound		7		1/2/13		—	*
United States Dollar		61	Swedish Krona		396		1/2/13		—	*
Australian Dollar		238	United States Dollar		247		1/3/13		—	*
Euro		7	United States Dollar		10		1/3/13		—	*
Euro		3	United States Dollar		4		1/3/13		—	*
Hong Kong Dollar		506	United States Dollar		65		1/3/13		—	*
Hong Kong Dollar		2,725	United States Dollar		352		1/3/13		—	*
Singapore Dollar		48	United States Dollar		40		1/3/13		—	*
Swedish Krona		73	United States Dollar		11		1/3/13		—	*
United States Dollar		21	British Pound		13		1/3/13		—	*
United States Dollar		140	Hong Kong Dollar		1,082		1/3/13		—	*

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER GLOBAL REAL ESTATE FUND continued

CONTRACTS TO DELIVER CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		IN EXCHANGE FOR CURRENCY	AMOUNT (LOCAL CURRENCY) (000S)		SETTLEMENT DATE		UNREALIZED GAINS (LOSSES) (000S)
Euro		3	United States Dollar		4		1/4/13	$	—	*
Euro		5	United States Dollar		7		1/4/13		—	*
Singapore Dollar		56	United States Dollar		46		1/4/13		—	*
United States Dollar		12	British Pound		7		1/4/13		—	*
United States Dollar		18	Swedish Krona		117		1/4/13		—	*
Japanese Yen		126,538	United States Dollar		1,470		1/7/13		9
Japanese Yen		60,848	United States Dollar		708		1/7/13		5
Japanese Yen		52,664	United States Dollar		613		1/7/13		5
Japanese Yen		40,422	United States Dollar		470		1/7/13		4
Japanese Yen		30,292	United States Dollar		352		1/8/13		2
United States Dollar		298	Japanese Yen		25,627		1/8/13		(2	)
Total								$	22

* Amount rounds to less than one thousand.

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 December 31, 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 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 Global Real Estate Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	14,506	$	24,742		$	—	$	39,248
Financials		501,048		513,915			3,200		1,018,163
Investment Companies		21,588		—			—		21,588
Total Investments	$	537,142	$	538,657		$	3,200	$	1,078,999
OTHER FINANCIAL INSTRUMENTS
Assets
Foreign Currency Exchange Contracts	$	—	$	26		$	—	$	26
Liabilities
Foreign Currency Exchange Contracts		—		(4	)		—		(4	)
Total Other Financial Investments	$	—	$	22		$	—	$	22

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, the Fund had transfers from Level 2 to Level 1 as disclosed below:

Transfers from Level 2 to Level 1
Industry	Value (000S)		Reason
Common Stocks
Financials	$	2,347	Valuations at unadjusted quoted market 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.

MULTI-MANAGER FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 GAIN (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 12/31/12 (000S)
Common Stocks
Financials	$	—	$	—	$	—	$	106	$	—	$	3,094	$	—	$	—	$	—	$	3,200
Total	$	—	$	—	$	—	$	106	$	—	$	3,094	$	—	$	—	$	—	$	3,200

The amount of change in unrealized appreciation (depreciation) on investments in Level 3 securities still held at December 31, 2012 was approximately $106.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	851,913
Gross tax appreciation of investments	$	231,189
Gross tax depreciation of investments		(4,103	)
Net tax appreciation of investments	$	227,086

NORTHERN FUNDS QUARTERLY REPORT    5    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 92.7%
Australia - 1.9%
Australia & New Zealand Banking Group Ltd.		368,145	$	9,638
BHP Billiton Ltd. ADR		95,994		7,530
Cochlear Ltd.		20,290		1,679
CSL Ltd.		69,390		3,920
Incitec Pivot Ltd.		1,819,582		6,183
Telstra Corp. Ltd.		2,797,100		12,742
				41,692
Austria - 1.2%
Andritz A.G.		50,709		3,258
Conwert Immobilien Invest S.E.		272,148		3,520
Erste Group Bank A.G.*		269,196		8,608
Schoeller-Bleckmann Oilfield Equipment A.G.		88,834		9,330
				24,716
Belgium - 0.6%
Anheuser-Busch InBev N.V.		120,966		10,571
Colruyt S.A.		30,876		1,533
				12,104
Brazil - 2.6%
Banco Bradesco S.A. ADR		793,827		13,789
Banco do Brasil S.A.		425,500		5,320
BR Malls Participacoes S.A.		133,400		1,760
CCR S.A.		254,900		2,421
Cia de Saneamento Basico do Estado de Sao Paulo ADR		153,700		12,845
Cia Hering		84,176		1,726
Cielo S.A.		62,640		1,744
Mills Estruturas e Servicos de Engenharia S.A.		52,400		870
Petroleo Brasileiro S.A. ADR		229,367		4,466
Qualicorp S.A.*		56,200		582
T4F Entretenimento S.A.		30,300		116
Tractebel Energia S.A.		71,300		1,161
Vale S.A. ADR		421,400		8,833
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao S.A.		32,900		731
				56,364
Canada - 4.8%
Agrium, Inc.		113,624		11,352
Alimentation Couche Tard, Inc., Class B		51,222		2,520
Brookfield Asset Management, Inc., Class A		185,308		6,792
Canadian National Railway Co.		67,506		6,144
Canadian Natural Resources Ltd.		165,620		4,769
Cenovus Energy, Inc.		50,829		1,701
CI Financial Corp.		87,141		2,184
Encana Corp.		164,049		3,242
Kinross Gold Corp.		453,120		4,400
Lundin Mining Corp.*		774,950		3,989
Magna International, Inc.		99,000		4,952
Manulife Financial Corp.		707,800		9,619
Metro, Inc.		44,324		2,822
Peyto Exploration & Development Corp.		94,582		2,186
Potash Corp. of Saskatchewan, Inc.		50,416		2,052
Potash Corp. of Saskatchewan, Inc. (New York Exchange)		91,869		3,738
Rogers Communications, Inc., Class B		85,108		3,874
Talisman Energy, Inc.		597,840		6,761
Toronto-Dominion Bank (The)		110,100		9,285
Yamana Gold, Inc.		588,060		10,120
				102,502
Chile - 0.4%
CFR Pharmaceuticals S.A.		3,445,430		871
ENTEL Chile S.A.		85,599		1,770
Inversiones La Construccion S.A.		30,953		603
Parque Arauco S.A.		731,543		1,812
Sociedad Quimica y Minera de Chile S.A. ADR		31,223		1,800
Sonda S.A.		219,499		697
				7,553
China - 2.7%
Anhui Conch Cement Co. Ltd., Class H		1,507,700		5,609
China Oilfield Services Ltd., Class H		3,257,700		6,780
China Petroleum & Chemical Corp., Class H		8,467,000		9,721
China Shipping Container Lines Co. Ltd., Class H*		12,232,000		3,615
Great Wall Motor Co. Ltd., Class H		732,500		2,348
Hollysys Automation Technologies Ltd.*		59,364		705
Industrial & Commercial Bank of China Ltd., Class H		4,819,000		3,475
Lenovo Group Ltd.		2,392,000		2,190
Mindray Medical International Ltd. ADR		151,413		4,951
PetroChina Co. Ltd., Class H		4,060,000		5,831
Spreadtrum Communications, Inc. ADR		36,916		650
Weichai Power Co. Ltd., Class H		1,568,000		7,120
WuXi PharmaTech Cayman, Inc. ADR*		34,424		542

NORTHERN FUNDS QUARTERLY REPORT    1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 92.7% continued
China - 2.7% continued
Yanzhou Coal Mining Co. Ltd. ADR		202,200	$	3,454
				56,991
Colombia - 0.5%
Bancolombia S.A. ADR		86,098		5,732
Ecopetrol S.A.		1,291,813		3,992
				9,724
Czech Republic - 0.2%
Komercni Banka A.S.		17,813		3,769
Denmark - 1.3%
Carlsberg A/S, Class B		95,300		9,369
Coloplast A/S, Class B		81,405		3,990
GN Store Nord A/S		97,302		1,427
Novo Nordisk A/S, Class B		78,968		12,897
SimCorp A/S		3,835		859
				28,542
Finland - 0.3%
Kone OYJ, Class B		48,390		3,583
Nokian Renkaat OYJ		44,633		1,796
				5,379
France - 7.5%
Accor S.A.		86,943		3,119
Arkema S.A.		52,754		5,547
AXA S.A.		554,716		10,034
BNP Paribas S.A.		246,749		13,909
Cap Gemini S.A.		114,900		5,007
Carrefour S.A.		185,481		4,803
Christian Dior S.A.		24,764		4,281
Cie de St-Gobain		75,895		3,248
Cie Generale d’Optique Essilor International S.A.		47,639		4,830
Danone S.A.		181,510		11,992
France Telecom S.A.		672,503		7,531
Hermes International		5,967		1,784
JCDecaux S.A.		105,594		2,549
Legrand S.A.		52,530		2,217
L’Oreal S.A.		85,174		11,898
Pernod-Ricard S.A.		68,912		8,103
Sanofi		215,061		20,395
Schneider Electric S.A.		118,636		8,848
Societe BIC S.A.		15,456		1,845
Societe Generale S.A.*		108,820		4,093
Total S.A.		67,326		3,485
Unibail-Rodamco S.E.		61,580		15,075
Vivendi S.A.		214,221		4,824
Zodiac Aerospace		14,070		1,571
				160,988
Germany - 5.6%
Adidas A.G.		45,320		4,039
Aixtron S.E. N.A.		13,868		163
Allianz S.E. (Registered)		108,871		15,083
BASF S.E.		37,030		3,480
Bayer A.G. (Registered)		69,598		6,609
Bertrandt A.G.		4,395		440
Brenntag A.G.		14,585		1,916
Daimler A.G. (Registered)		230,431		12,592
Deutsche Bank A.G. (Registered)		44,404		1,935
Deutsche Boerse A.G.		310,514		18,952
Deutsche Wohnen A.G. (Bearer)		83,209		1,537
E.ON S.E.		195,510		3,641
Fresenius S.E. & Co. KGaA		30,589		3,521
Gerry Weber International A.G.		27,877		1,345
Linde A.G.		55,889		9,746
MTU Aero Engines Holding A.G.		28,082		2,552
SAP A.G.		109,891		8,803
Siemens A.G. (Registered)		162,537		17,666
Symrise A.G.		159,455		5,709
				119,729
Hong Kong - 2.4%
AIA Group Ltd.		1,656,200		6,601
Brilliance China Automotive Holdings Ltd.*		1,594,000		1,995
Cheung Kong Holdings Ltd.		656,417		10,161
China High Precision Automation Group Ltd.		982,000		157
China Mobile Ltd.		613,500		7,186
China Overseas Land & Investment Ltd.		1,700,000		5,149
Daphne International Holdings Ltd.		457,400		634
Hang Lung Properties Ltd.		599,000		2,402
Hang Seng Bank Ltd.		321,700		4,970
Hutchison Telecommunications Hong Kong Holdings Ltd.		2,745,000		1,271
Orient Overseas International Ltd.		1,039,900		6,847
SA SA International Holdings Ltd.		1,450,000		1,199
SmarTone Telecommunications Holdings Ltd.		674,000		1,235
Value Partners Group Ltd.		1,038,000		697
				50,504

MULTI-MANAGER FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 92.7% continued
India - 1.1%
HDFC Bank Ltd. ADR		71,941	$	2,930
ICICI Bank Ltd. ADR		272,696		11,892
Tata Motors Ltd. ADR		289,211		8,306
				23,128
Indonesia - 0.2%
Alam Sutera Realty Tbk PT		12,961,500		810
Bank Rakyat Indonesia Persero Tbk PT		2,444,500		1,780
Kalbe Farma Tbk PT		14,709,000		1,624
Media Nusantara Citra Tbk PT		3,132,500		816
				5,030
Ireland - 1.5%
Covidien PLC		140,750		8,127
CRH PLC		264,543		5,530
Experian PLC		155,552		2,513
ICON PLC ADR*		227,615		6,319
Paddy Power PLC		14,745		1,215
Shire PLC		295,899		9,088
				32,792
Israel - 0.8%
Ceragon Networks Ltd.*		147,935		652
Israel Chemicals Ltd.		380,500		4,587
Teva Pharmaceutical Industries Ltd. ADR		319,491		11,930
				17,169
Italy - 0.2%
Azimut Holding S.p.A.		62,881		907
Intesa Sanpaolo S.p.A.		1,035,616		1,792
Pirelli & C. S.p.A.		70,263		806
Tod’s S.p.A.		10,584		1,350
				4,855
Japan - 13.0%
ABC-Mart, Inc.		21,400		930
Aeon Co. Ltd.		742,900		8,492
Ain Pharmaciez, Inc.		9,300		506
Amada Co. Ltd.		523,403		3,406
Arnest One Corp.		51,900		850
Astellas Pharma, Inc.		75,800		3,405
Bank of Yokohama (The) Ltd.		1,781,038		8,267
Canon, Inc.		114,100		4,475
Chiyoda Corp.		141,000		2,019
Cosmos Pharmaceutical Corp.		5,200		515
Daito Trust Construction Co. Ltd.		23,400		2,202
Denso Corp.		255,600		8,894
FamilyMart Co. Ltd.		48,300		1,988
FANUC Corp.		51,220		9,525
Fast Retailing Co. Ltd.		13,000		3,302
Fuji Heavy Industries Ltd.		1,158,000		14,581
Hitachi Ltd.		2,345,200		13,802
Inpex Corp.		870		4,643
Japan Tobacco, Inc.		457,703		12,903
KDDI Corp.		133,500		9,430
Keyence Corp.		11,700		3,229
Komatsu Ltd.		297,700		7,618
Lawson, Inc.		40,800		2,773
M3, Inc.		542		862
Miraca Holdings, Inc.		20,300		817
MISUMI Group, Inc.		30,900		839
Mitsubishi Corp.		454,382		8,734
Mitsui & Co. Ltd.		618,700		9,256
Mizuho Financial Group, Inc.		5,562,800		10,178
MonotaRO Co. Ltd.		14,800		477
MS&AD Insurance Group Holdings		209,941		4,194
Nintendo Co. Ltd.		34,090		3,637
Nippon Steel & Sumitomo Metal Corp.		1,567,900		3,857
Nitori Holdings Co. Ltd.		16,600		1,215
Nitto Denko Corp.		183,100		9,009
NKSJ Holdings, Inc.		254,335		5,416
ORIX Corp.		80,130		9,042
Ryohin Keikaku Co. Ltd.		12,500		698
Secom Co. Ltd.		137,700		6,940
Sega Sammy Holdings, Inc.		213,600		3,608
Shimamura Co. Ltd.		14,200		1,375
Ship Healthcare Holdings, Inc.		29,300		777
SMC Corp.		65,890		11,953
Sugi Holdings Co. Ltd.		81,728		2,871
Sumitomo Mitsui Financial Group, Inc.		309,700		11,251
Sumitomo Mitsui Trust Holdings, Inc.		2,007,889		7,055
Sumitomo Realty & Development Co. Ltd.		180,000		5,981
Sundrug Co. Ltd.		28,800		984
Suruga Bank Ltd.		126,000		1,548
Suzuki Motor Corp.		377,685		9,873
THK Co. Ltd.		257,916		4,635
Toyota Motor Corp.		186,900		8,724
Tsuruha Holdings, Inc.		10,300		808
United Arrows Ltd.		22,700		522
Yahoo! Japan Corp.		10,477		3,391
				278,282

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 92.7% continued
Malaysia - 0.5%
Genting Bhd.		1,472,300	$	4,446
Sime Darby Bhd.		1,984,395		6,184
				10,630
Mexico - 0.3%
Banregio Grupo Financiero S.A.B. de C.V.		158,900		724
Grupo Financiero Banorte S.A.B. de C.V., Class O		87,000		562
Grupo Mexico S.A.B. de C.V., Series B		918,300		3,313
Grupo Televisa S.A.B. ADR		66,678		1,772
				6,371
Netherlands - 3.5%
ASML Holding N.V.*		26,641		1,725
Core Laboratories N.V.		93,025		10,169
Heineken N.V.		153,905		10,266
Koninklijke KPN N.V.		229,594		1,135
Reed Elsevier N.V.		637,500		9,445
Royal Dutch Shell PLC, Class A		702,399		24,150
Royal Dutch Shell PLC, Class B		253,146		8,959
Unilever N.V. - CVA		217,237		8,197
				74,046
Nigeria - 0.1%
Guaranty Trust Bank PLC		9,967,999		1,468
Norway - 2.3%
DNB ASA		596,747		7,607
Fred Olsen Energy ASA		21,838		955
Norsk Hydro ASA		1,644,044		8,375
Schibsted ASA		33,995		1,450
Seadrill Ltd.		110,600		4,076
Statoil ASA		662,869		16,634
Statoil ASA ADR		211,781		5,303
Telenor ASA		254,419		5,169
				49,569
Philippines - 0.1%
International Container Terminal Services, Inc.		303,560		548
Puregold Price Club, Inc.		680,800		548
SM Prime Holdings, Inc.		2,721,575		1,096
				2,192
Singapore - 1.8%
DBS Group Holdings Ltd.		406,690		4,978
First Resources Ltd.*		569,000		948
Global Logistic Properties Ltd.		1,847,000		4,247
Golden Agri-Resources Ltd.		15,097,860		8,128
Keppel Corp. Ltd.		580,700		5,277
United Overseas Bank Ltd.		921,100		15,086
UOL Group Ltd.		111,100		548
				39,212
South Africa - 1.6%
Aspen Pharmacare Holdings Ltd.*		134,436		2,687
Bidvest Group Ltd.		100,317		2,566
FirstRand Ltd.		828,065		3,062
Life Healthcare Group Holdings Ltd.		286,158		1,150
MTN Group Ltd.		350,370		7,364
Naspers Ltd., Class N		44,379		2,851
Sasol Ltd. ADR		298,500		12,922
Tiger Brands Ltd.		44,690		1,721
				34,323
South Korea - 2.7%
Hanjin Shipping Co. Ltd.*		152,110		1,718
Hyundai Mobis		22,433		6,084
Hyundai Motor Co.		25,756		5,301
POSCO		12,061		3,944
POSCO ADR		108,700		8,930
Samsung Electronics Co. Ltd.		11,695		16,738
Samsung Fire & Marine Insurance Co. Ltd.		7,336		1,496
SK Telecom Co. Ltd. ADR		573,900		9,085
Woori Finance Holdings Co. Ltd. ADR*		137,000		4,569
				57,865
Spain - 0.6%
Amadeus IT Holding S.A., Class A		212,770		5,340
Inditex S.A.		42,021		5,887
Viscofan S.A.		20,651		1,152
				12,379
Sweden - 3.0%
Atlas Copco AB, Class A		627,838		17,381
Getinge AB, Class B		406,350		13,766
Hexpol AB		23,414		1,238
Investor AB, Class B		238,940		6,267
Sandvik AB		421,919		6,781
Svenska Cellulosa AB, Class B		254,100		5,562
Telefonaktiebolaget LM Ericsson, Class B		653,511		6,573
Volvo AB, Class B		443,460		6,115
				63,683

MULTI-MANAGER FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 92.7% continued
Switzerland - 8.0%
ABB Ltd. (Registered)		247,311	$	5,135
Burckhardt Compression Holding A.G.		1,462		480
Cie Financiere Richemont S.A., Class A (Bearer)		105,603		8,444
Credit Suisse Group A.G. (Registered)		106,105		2,662
Credit Suisse Group A.G. ADR		151,413		3,719
Foster Wheeler A.G.*		216,835		5,273
Geberit A.G. (Registered)*		15,092		3,341
Holcim Ltd. (Registered)		84,533		6,226
Nestle S.A. (Registered)		272,094		17,734
Noble Corp.		205,140		7,143
Novartis A.G. (Registered)		275,794		17,461
Novartis A.G. ADR		104,968		6,644
Partners Group Holding A.G.		12,080		2,790
Roche Holding A.G. (Genusschein)		133,448		27,187
SGS S.A. (Registered)		1,362		3,026
Syngenta A.G. (Registered)		27,312		11,017
Transocean Ltd.		128,652		5,744
UBS A.G. (Registered)		715,952		11,259
Wolseley PLC		32,834		1,561
Xstrata PLC		510,565		9,081
Zurich Insurance Group A.G.		55,100		14,733
				170,660
Taiwan - 0.9%
Advanced Semiconductor Engineering, Inc.		7,791,415		6,761
Asustek Computer, Inc.		154,000		1,739
Taiwan Semiconductor Manufacturing Co. Ltd. ADR		687,139		11,791
				20,291
Thailand - 0.3%
Advanced Info Service PCL (Registered)		360,600		2,464
BEC World PCL (Registered)		440,200		1,022
Kasikornbank PCL (Registered)		440,900		2,799
				6,285
Turkey - 0.6%
Akbank T.A.S.		1,092,221		5,401
KOC Holding A.S. ADR		79,800		2,087
Turkiye Garanti Bankasi A.S.		513,618		2,672
Turkiye Halk Bankasi A.S.		223,292		2,198
				12,358
United Kingdom - 15.3%
Abcam PLC		146,483		920
Aberdeen Asset Management PLC		237,422		1,408
AMEC PLC		146,024		2,389
Amlin PLC		266,033		1,616
Anglo American PLC		312,601		9,979
ARM Holdings PLC		207,146		2,649
ARM Holdings PLC ADR		419,771		15,880
Ashmore Group PLC		378,011		2,186
AstraZeneca PLC		287,900		13,611
Babcock International Group PLC		264,707		4,108
BAE Systems PLC		1,717,000		9,433
Barclays PLC		1,380,000		5,959
Berkeley Group Holdings PLC*		122,945		3,592
BG Group PLC		382,368		6,412
BHP Billiton PLC		192,007		6,747
BP PLC ADR		115,464		4,808
British American Tobacco PLC		234,766		11,896
Bunzl PLC		99,548		1,625
Croda International PLC		24,638		955
Debenhams PLC		76,740		142
Derwent London PLC		48,523		1,668
Diageo PLC		1,540,560		44,850
Dunelm Group PLC		144,687		1,692
Elementis PLC		313,563		1,189
GlaxoSmithKline PLC		394,167		8,558
Glencore International PLC		1,296,804		7,557
Halma PLC		193,268		1,457
Hargreaves Lansdown PLC		32,320		359
Hiscox Ltd.		135,381		985
HSBC Holdings PLC		1,305,881		13,812
IG Group Holdings PLC		181,152		1,326
Imperial Tobacco Group PLC		425,007		16,412
InterContinental Hotels Group PLC		154,324		4,340
ITV PLC		2,655,939		4,556
John Wood Group PLC		225,956		2,670
Johnson Matthey PLC		76,992		2,957
Jupiter Fund Management PLC		221,938		1,030
Lancashire Holdings Ltd.		151,624		1,911
Lloyds Banking Group PLC*		4,728,930		3,789
Marks & Spencer Group PLC		752,500		4,692
Meggitt PLC		267,344		1,667
Moneysupermarket.com Group PLC		437,393		1,117
Ocado Group PLC*		282,994		401
Oxford Instruments PLC		24,997		584
Pearson PLC		212,873		4,161
Prudential PLC		434,896		6,068

NORTHERN FUNDS QUARTERLY REPORT    5    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 92.7% continued
United Kingdom - 15.3% continued
Reckitt Benckiser Group PLC		95,162	$	5,961
Rightmove PLC		39,853		918
Rio Tinto PLC		178,100		10,378
Rio Tinto PLC ADR		138,548		8,048
Rolls-Royce Holdings PLC		806,353		11,618
Rotork PLC		39,956		1,657
RPS Group PLC		154,449		533
Sage Group (The) PLC		930,100		4,456
Spirax-Sarco Engineering PLC		29,129		1,095
St. James’s Place PLC		128,568		873
Standard Chartered PLC		247,927		6,285
Tullow Oil PLC		251,996		5,132
Unilever PLC		131,574		4,994
Victrex PLC		53,242		1,437
Vodafone Group PLC ADR		283,186		7,133
Willis Group Holdings PLC		244,515		8,199
WPP PLC*		201,322		2,927
				327,767
United States - 2.3%
Aon PLC		31,427		1,747
Axis Capital Holdings Ltd.		245,700		8,511
Carnival Corp.		171,856		6,319
Copa Holdings S.A., Class A		16,727		1,664
Everest Re Group Ltd.		61,357		6,746
Freeport-McMoRan Copper & Gold, Inc.		219,014		7,490
Philip Morris International, Inc.		65,186		5,452
RenaissanceRe Holdings Ltd.		80,317		6,527
Schlumberger Ltd.		77,990		5,404
				49,860
Total Common Stocks(1) (Cost $1,732,939)(1)				1,980,772
PREFERRED STOCKS - 1.3%
Brazil - 1.0%
Banco Bradesco S.A.		391,600		6,727
Cia Paranaense de Energia ADR		541,000		8,304
Itau Unibanco Holding S.A. ADR		276,188		4,546
Petroleo Brasileiro S.A.		223,400		2,130
				21,707
Germany - 0.3%
Henkel A.G. & Co. KGaA		72,528		5,956
Total Preferred Stocks(1) (Cost $30,719)(1)				27,663
RIGHTS - 0.0%
Chile - 0.0%
Sonda S.A.*		29,602		6
Total Rights(1) (Cost $ — )(1)				6
INVESTMENT COMPANIES - 5.3%
iShares FTSE A50 China Index ETF		3,744,860		5,466
iShares MSCI EAFE Index Fund		132,610		7,535
iShares MSCI United Kingdom Index Fund		241,470		4,332
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(2) (3)		96,552,819		96,553
Total Investment Companies (Cost $111,787)				113,886
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.1%
U.S. Treasury Bill,
0.14%, 4/25/13(4)	$	2,945	$	2,944
Total Short-Term Investments (Cost $2,944)				2,944
Total Investments - 99.4% (Cost $1,878,389)				2,125,271
Other Assets less Liabilities - 0.6%				11,774
NET ASSETS - 100.0%			$	2,137,045

(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 $79,254,000 with net purchases of approximately $17,299,000 during the nine months ended December 31, 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.

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

MULTI-MANAGER FUNDS     6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

* Non-Income Producing Security

Percentages shown are based on Net Assets.

At December 31, 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		662	$	53,632		Long		3/13	$	688

At December 31, 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		215	United States Dollar		347		1/2/13	$	(4	)
Canadian Dollar		19	United States Dollar		19		1/2/13		—	*
Canadian Dollar		32	United States Dollar		32		1/2/13		—	*
Czech Koruna		1,117	United States Dollar		59		1/2/13		—	*
Euro		114	United States Dollar		151		1/2/13		—	*
Euro		133	United States Dollar		176		1/2/13		(1	)
Hong Kong Dollar		238	United States Dollar		31		1/2/13		—	*
Danish Krone		2,907	United States Dollar		515		1/3/13		1
Euro		189	United States Dollar		250		1/3/13		—	*
Euro		84	United States Dollar		112		1/3/13		—	*
Euro		63	United States Dollar		83		1/3/13		—	*
Hong Kong Dollar		1,949	United States Dollar		251		1/3/13		—	*
Hong Kong Dollar		467	United States Dollar		60		1/3/13		—	*
Hong Kong Dollar		123	United States Dollar		16		1/3/13		—	*
Hong Kong Dollar		840	United States Dollar		108		1/3/13		—	*
Norwegian Krone		1,040	United States Dollar		186		1/3/13		(1	)
Norwegian Krone		1,290	United States Dollar		231		1/3/13		(1	)
South African Rand		138	United States Dollar		16		1/3/13		—	*
South African Rand		208	United States Dollar		24		1/3/13		—	*
South African Rand		215	United States Dollar		25		1/3/13		—	*
South African Rand		227	United States Dollar		26		1/3/13		—	*
South African Rand		244	United States Dollar		28		1/3/13		—	*
South African Rand		2,947	United States Dollar		343		1/3/13		(5	)
Swedish Krona		1,054	United States Dollar		162		1/3/13		—	*
Swedish Krona		7,275	United States Dollar		1,116		1/3/13		(2	)
Swiss Franc		488	United States Dollar		534		1/3/13		—	*
Swiss Franc		398	United States Dollar		435		1/3/13		—	*
Swiss Franc		392	United States Dollar		429		1/3/13		—	*
Swiss Franc		228	United States Dollar		250		1/3/13		—	*
Swiss Franc		89	United States Dollar		97		1/3/13		—	*
United States Dollar		16	Singapore Dollar		20		1/3/13		—	*
Euro		24	United States Dollar		31		1/4/13		—	*
Japanese Yen		9,295	United States Dollar		109		1/4/13		1
Japanese Yen		7,388	United States Dollar		86		1/4/13		1
Japanese Yen		5,467	United States Dollar		64		1/4/13		1
Japanese Yen		3,828	United States Dollar		45		1/4/13		1
Japanese Yen		3,232	United States Dollar		38		1/4/13		1
Japanese Yen		2,824	United States Dollar		33		1/4/13		1
Japanese Yen		2,788	United States Dollar		33		1/4/13		1
Japanese Yen		2,351	United States Dollar		27		1/4/13		1
Japanese Yen		2,088	United States Dollar		24		1/4/13		—	*
Japanese Yen		1,779	United States Dollar		21		1/4/13		—	*
Japanese Yen		1,619	United States Dollar		19		1/4/13		—	*
United States Dollar		35	Japanese Yen		2,976		1/7/13		—	*
United States Dollar		182	Japanese Yen		15,684		1/7/13		(2	)
United States Dollar		490	Japanese Yen		42,156		1/7/13		(4	)
United States Dollar		17	Japanese Yen		1,499		1/8/13		—	*
United States Dollar		83	Japanese Yen		7,145		1/8/13		(1	)
United States Dollar		99	Japanese Yen		8,494		1/8/13		(1	)
Total								$	(13	)

* Amount rounds to less than one thousand.

NORTHERN FUNDS QUARTERLY REPORT    7    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

At December 31, 2012, the industry sectors for the Multi-Manager International Equity Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		9.5	%
Consumer Staples		12.1
Energy		9.6
Financials		24.2
Health Care		9.9
Industrials		12.0
Information Technology		6.3
Materials		11.0
Telecommunication Services		4.1
Utilities		1.3
Total		100.0	%

At December 31, 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		20.6	%
Euro		19.7
British Pound		15.2
Japanese Yen		13.7
Swiss Franc		6.5
Hong Kong Dollar		5.1
All other currencies less than 5%		19.2
Total		100.0	%

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 December 31, 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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)		LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Common Stocks
Consumer Discretionary	$	23,192	$	168,790		$	—	$	191,982
Consumer Staples		10,794		228,479			—		239,273
Energy		82,063		111,167			—		193,230
Financials		114,489		348,209			—		462,698
Health Care		39,966		161,179			—		201,145
Industrials		19,191		224,490			—		243,681
Information Technology		32,119		94,693			157		126,969
Materials		81,595		140,338			—		221,933
Telecommunication Services		21,862		60,352			—		82,214
Utilities		14,006		3,641			—		17,647
Preferred Stocks
Consumer Staples		—		5,956			—		5,956
Energy		2,130		—			—		2,130
Financials		11,273		—			—		11,273
Utilities		8,304		—			—		8,304
Rights
Information Technology		6							6
Investment Companies		108,446		5,466			—		113,912
Short-Term Investments		—		2,944			—		2,944
Total Investments	$	569,436	$	1,555,704		$	157	$	2,125,297
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	688	$	—		$	—	$	688
Foreign Currency Exchange Contracts		—		9					9
Liabilities
Foreign Currency Exchange Contracts		—		(22	)		—		(22	)
Total Other Financial Instruments	$	688	$	(13	)	$	—	$	675

MULTI-MANAGER FUNDS     8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 2012, the Fund had transfers from Level 2 to Level 1 as dislcosed below:

Transfers from Level 2 to Level 1
Industry	Value (000S)		Reason
Common Stocks
Consumer Discretionary	$	1,842	Valuations at unadjusted quoted market price
Financials		9,454	Valuations at unadjusted quoted market price
Health Care		871	Valuations at unadjusted quoted market price
Industrials		2,421	Valuations at unadjusted quoted market price
Information Technology		2,441	Valuations at unadjusted quoted market price
Materials		3,312	Valuations at unadjusted quoted market price
Telecommunication Services		1,770	Valuations at unadjusted quoted market price
Utilities		1,161	Valuations at unadjusted quoted market price
Preferred Stocks
Energy		2,130	Valuations at unadjusted quoted market price
Financials		6,727	Valuations at unadjusted quoted market price
Total	$	32,129

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)(2)		TRANSFERS OUT OF LEVEL 3 (000S) (2)		BALANCE AS OF 12/31/12 (000S)
Common Stock
Information Technology	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	157	$	—	$	157

(1) The Transfers Into Level 3 was due to the security using a price provided by NTGI PVC.

(2) The value of Transfers Into and Out of Level 3 are measured using the fair value as of the end of the period ended December 31, 2012.

The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at December 31, 2012 was $(10).

NORTHERN FUNDS QUARTERLY REPORT    9    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER INTERNATIONAL EQUITY FUND continued

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	1,903,431
Gross tax appreciation of investments	$	285,315
Gross tax depreciation of investments		(63,475	)
Net tax appreciation of investments	$	221,840

MULTI-MANAGER FUNDS    10    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER LARGE CAP FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 98.3%
Aerospace/Defense - 2.7%
Boeing (The) Co.		48,481	$	3,653
Northrop Grumman Corp.		90,200		6,096
Raytheon Co.		148,500		8,548
United Technologies Corp.		45,975		3,770
				22,067
Agriculture - 1.0%
Archer-Daniels-Midland Co.		223,300		6,116
Philip Morris International, Inc.		25,000		2,091
				8,207
Apparel - 3.6%
Burberry Group PLC ADR		21,597		881
Coach, Inc.		199,835		11,093
NIKE, Inc., Class B		270,812		13,974
Ralph Lauren Corp.		26,111		3,914
				29,862
Auto Manufacturers - 1.3%
General Motors Co.*		247,100		7,124
PACCAR, Inc.		82,000		3,707
				10,831
Auto Parts & Equipment - 0.1%
BorgWarner, Inc.*		15,264		1,093
Banks - 4.7%
Bank of New York Mellon (The) Corp.		240,600		6,184
Capital One Financial Corp.		71,000		4,113
Citigroup, Inc.		218,990		8,663
Goldman Sachs Group (The), Inc.		65,336		8,334
JPMorgan Chase & Co.		105,000		4,617
Morgan Stanley		143,382		2,742
Wells Fargo & Co.		135,000		4,614
				39,267
Biotechnology - 3.6%
Alexion Pharmaceuticals, Inc.*		39,292		3,686
Amgen, Inc.		90,415		7,805
Biogen Idec, Inc.*		24,543		3,600
Celgene Corp.*		102,049		8,033
Gilead Sciences, Inc.*		38,659		2,839
Illumina, Inc.*		10,276		571
Vertex Pharmaceuticals, Inc.*		76,054		3,190
				29,724
Chemicals - 1.9%
E.I. du Pont de Nemours & Co.		138,100		6,210
Monsanto Co.		59,463		5,628
Mosaic (The) Co.		65,700		3,721
				15,559
Commercial Services - 1.0%
Mastercard, Inc., Class A		16,996		8,350
Computers - 5.2%
Apple, Inc.		28,009		14,929
EMC Corp.*		529,765		13,403
International Business Machines Corp.		65,287		12,506
NetApp, Inc.*		30,338		1,018
Teradata Corp.*		18,791		1,163
				43,019
Cosmetics/Personal Care - 1.4%
Estee Lauder (The) Cos., Inc., Class A		200,950		12,029
Diversified Financial Services - 0.5%
Visa, Inc., Class A		26,788		4,060
Electric - 1.0%
Edison International		134,100		6,060
NRG Energy, Inc.		110,000		2,529
				8,589
Electronics - 0.2%
Agilent Technologies, Inc.		32,281		1,322
Environmental Control - 0.7%
Waste Management, Inc.		183,000		6,174
Food - 3.7%
Kraft Foods Group, Inc.		137,100		6,234
Mondelez International, Inc., Class A		261,265		6,655
Safeway, Inc.		304,762		5,513
Whole Foods Market, Inc.		138,337		12,634
				31,036
Healthcare - Products - 0.7%
Baxter International, Inc.		91,000		6,066
Healthcare - Services - 1.0%
Quest Diagnostics, Inc.		102,800		5,990
UnitedHealth Group, Inc.		44,099		2,392
				8,382
Insurance - 7.0%
Allstate (The) Corp.		153,600		6,170
American International Group, Inc.*		219,600		7,752
Aon PLC		85,000		4,726

NORTHERN FUNDS QUARTERLY REPORT    1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER LARGE CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 98.3% continued
Insurance - 7.0% continued
Hartford Financial Services Group, Inc.		404,000	$	9,066
Loews Corp.		105,100		4,283
Marsh & McLennan Cos., Inc.		175,100		6,035
MetLife, Inc.		195,000		6,423
Travelers (The) Cos., Inc.		85,600		6,148
Unum Group		348,900		7,264
				57,867
Internet - 4.3%
Amazon.com, Inc.*		27,862		6,997
Baidu, Inc. ADR*		22,819		2,289
eBay, Inc.*		51,780		2,642
Facebook, Inc., Class A*		103,046		2,744
GOOGLE, Inc., Class A*		12,640		8,966
LinkedIn Corp., Class A*		33,605		3,859
priceline.com, Inc.*		5,602		3,480
Rackspace Hosting, Inc.*		27,823		2,066
Splunk, Inc.*		39,128		1,136
Tencent Holdings Ltd. ADR		37,954		1,239
Youku Tudou, Inc. ADR*		10,714		195
				35,613
Lodging - 0.0%
Marriott International, Inc., Class A - (Fractional Shares)*		9,000		—
Machinery - Diversified - 0.2%
Roper Industries, Inc.		16,721		1,864
Media - 3.5%
Comcast Corp., Class A		165,800		6,197
Time Warner, Inc.		90,000		4,305
Viacom, Inc., Class B		120,000		6,329
Walt Disney (The) Co.		237,944		11,847
				28,678
Metal Fabrication/Hardware - 0.8%
Precision Castparts Corp.		35,111		6,651
Mining - 1.6%
AngloGold Ashanti Ltd. ADR		260,000		8,156
Barrick Gold Corp.		158,500		5,549
				13,705
Miscellaneous Manufacturing - 0.4%
Ingersoll-Rand PLC		77,000		3,693
Office/Business Equipment - 0.7%
Xerox Corp.		887,400		6,052
Oil & Gas - 7.2%
Apache Corp.		100,000		7,850
Canadian Natural Resources Ltd.		281,600		8,130
Chevron Corp.		57,000		6,164
Concho Resources, Inc.*		38,183		3,076
ConocoPhillips		106,000		6,147
EOG Resources, Inc.		16,391		1,980
Marathon Oil Corp.		201,800		6,187
Noble Energy, Inc.		16,000		1,628
Occidental Petroleum Corp.		121,100		9,277
Talisman Energy, Inc.		798,100		9,043
				59,482
Oil & Gas Services - 1.5%
Halliburton Co.		300,100		10,411
Schlumberger Ltd.		33,556		2,325
				12,736
Pharmaceuticals - 8.7%
Abbott Laboratories		35,018		2,294
Allergan, Inc.		41,211		3,780
Bristol-Myers Squibb Co.		94,773		3,089
Cardinal Health, Inc.		148,300		6,107
Express Scripts Holding Co.*		77,204		4,169
Johnson & Johnson		88,500		6,204
Merck & Co., Inc.		208,500		8,536
Novo Nordisk A/S ADR		24,506		4,000
Perrigo Co.		13,421		1,396
Pfizer, Inc.		538,965		13,517
Sanofi ADR		205,000		9,713
Shire PLC ADR		47,911		4,416
Teva Pharmaceutical Industries Ltd. ADR		135,000		5,041
				72,262
Real Estate Investment Trusts - 0.7%
American Tower Corp.		70,112		5,418
Retail - 10.5%
Bed Bath & Beyond, Inc.*		139,552		7,802
Chipotle Mexican Grill, Inc.*		10,198		3,033
Costco Wholesale Corp.		136,870		13,519
CVS Caremark Corp.		207,300		10,023
Dunkin’ Brands Group, Inc.		80,777		2,680
Family Dollar Stores, Inc.		20,518		1,301
Inditex S.A. ADR		189,176		5,397
Lowe’s Cos., Inc.		412,155		14,640
Lululemon Athletica, Inc.*		41,238		3,144
Nordstrom, Inc.		155,188		8,303

MULTI-MANAGER FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 98.3% continued
Retail - 10.5% continued
Panera Bread Co., Class A*		7,944	$	1,262
Target Corp.		133,301		7,887
TJX Cos., Inc.		107,032		4,543
Yum! Brands, Inc.		50,541		3,356
				86,890
Semiconductors - 3.9%
Applied Materials, Inc.		236,800		2,709
ARM Holdings PLC ADR		64,790		2,451
Avago Technologies Ltd.		65,957		2,088
Intel Corp.		693,951		14,317
QUALCOMM, Inc.		168,964		10,479
				32,044
Software - 6.8%
Adobe Systems, Inc.*		215,388		8,117
Autodesk, Inc.*		236,425		8,358
CA, Inc.		444,655		9,773
Intuit, Inc.		41,692		2,481
Microsoft Corp.		230,300		6,156
Oracle Corp.		253,589		8,450
Red Hat, Inc.*		64,956		3,440
Salesforce.com, Inc.*		27,894		4,689
VMware, Inc., Class A*		41,991		3,953
Workday, Inc., Class A*		23,401		1,275
				56,692
Telecommunications - 5.2%
AT&T, Inc.		183,700		6,192
Cisco Systems, Inc.		692,400		13,606
Crown Castle International Corp.*		153,045		11,044
Motorola Solutions, Inc.		113,114		6,298
Verizon Communications, Inc.		141,600		6,127
				43,267
Transportation - 1.0%
Canadian Pacific Railway Ltd.		4,661		473
Kansas City Southern		15,215		1,270
Union Pacific Corp.		55,017		6,917
				8,660
Total Common Stocks (Cost $719,673)				817,211
INVESTMENT COMPANIES - 1.9%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1) (2)		15,825,376		15,825
Total Investment Companies (Cost $15,825)				15,825
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.2%
U.S. Treasury Bill,
0.07%, 4/25/13(3)	$	1,080	$	1,080
Total Short-Term Investments (Cost $1,080)				1,080
Total Investments - 100.4% (Cost $736,578)				834,116
Liabilities less Other Assets - (0.4)%				(2,934	)
NET ASSETS - 100.0%			$	831,182

(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 sales of approximately $14,965,000 during the nine months ended December 31, 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 December 31, 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		8	$	2,840		Long		3/13	$	37

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER LARGE CAP FUND continued

At December 31, 2012, the industry sectors for the Multi-Manager Large Cap Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		17.2	%
Consumer Staples		9.2
Energy		8.8
Financials		12.5
Health Care		14.4
Industrials		6.5
Information Technology		23.9
Materials		3.6
Telecommunication Services		2.9
Utilities		1.0
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 December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	817,211	(1)	$	—	$	—	$	817,211
Investment Companies		15,825			—		—		15,825
Short-Term Investments		—			1,080		—		1,080
Total Investments	$	833,036		$	1,080	$	—	$	834,116
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	37		$	—	$	—	$	37

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	747,688
Gross tax appreciation of investments	$	125,418
Gross tax depreciation of investments		(38,990	)
Net tax appreciation of investments	$	86,428

MULTI-MANAGER FUNDS    4    NORTHERN FUNDS QUARTERLY REPORT

    SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9%
Aerospace/Defense - 2.2%
B/E Aerospace, Inc.*		42,500	$	2,100
Exelis, Inc.		41,100		463
L-3 Communications Holdings, Inc.		51,000		3,908
Northrop Grumman Corp.		51,100		3,453
Raytheon Co.		50,700		2,918
TransDigm Group, Inc.		9,050		1,234
Triumph Group, Inc.		74,550		4,868
				18,944
Agriculture - 0.2%
Archer-Daniels-Midland Co.		58,700		1,608
Airlines - 0.3%
Delta Air Lines, Inc.*		154,825		1,838
SkyWest, Inc.		68,200		850
				2,688
Apparel - 1.3%
Coach, Inc.		34,430		1,911
Gildan Activewear, Inc.		74,400		2,722
Jones Group (The), Inc.		42,900		474
Michael Kors Holdings Ltd.*		39,800		2,031
Under Armour, Inc., Class A*		96,021		4,660
				11,798
Auto Manufacturers - 0.2%
Oshkosh Corp.*		70,900		2,102
Auto Parts & Equipment - 1.5%
Autoliv, Inc.		34,700		2,338
BorgWarner, Inc.*		41,700		2,986
Cooper Tire & Rubber Co.		91,000		2,308
Delphi Automotive PLC*		51,500		1,970
TRW Automotive Holdings Corp.*		59,500		3,190
				12,792
Banks - 4.5%
Banco Latinoamericano de Comercio Exterior S.A., Class E		57,900		1,248
Capital One Financial Corp.		20,200		1,170
East West Bancorp, Inc.		101,017		2,171
Fifth Third Bancorp		496,775		7,546
Huntington Bancshares, Inc.		483,700		3,091
KeyCorp		773,600		6,514
Regions Financial Corp.		987,150		7,029
Signature Bank*		57,232		4,083
State Street Corp.		69,500		3,267
SunTrust Banks, Inc.		105,500		2,991
				39,110
Beverages - 0.7%
Coca-Cola Enterprises, Inc.		119,375		3,788
Monster Beverage Corp.*		49,900		2,638
				6,426
Biotechnology - 1.1%
Ariad Pharmaceuticals, Inc.*		57,800		1,109
Charles River Laboratories
International, Inc.*		68,775		2,577
Illumina, Inc.*		62,000		3,446
Vertex Pharmaceuticals, Inc.*		51,000		2,139
				9,271
Chemicals - 2.5%
A. Schulman, Inc.		81,600		2,361
Ashland, Inc.		45,650		3,671
Cabot Corp.		48,458		1,928
CF Industries Holdings, Inc.		14,699		2,986
Huntsman Corp.		137,500		2,186
Kronos Worldwide, Inc.		67,316		1,313
PolyOne Corp.		359		7
PPG Industries, Inc.		18,400		2,490
Sigma-Aldrich Corp.		39,545		2,910
Stepan Co.		37,580		2,087
				21,939
Coal - 0.4%
Peabody Energy Corp.		142,475		3,791
Commercial Services - 2.4%
Convergys Corp.		180,800		2,967
CoreLogic, Inc.*		81,625		2,197
Hertz Global Holdings, Inc.*		190,975		3,107
PAREXEL International Corp.*		54,630		1,617
R.R. Donnelley & Sons Co.		94,600		852
Robert Half International, Inc.		68,200		2,170
SAIC, Inc.		50,900		576
TeleTech Holdings, Inc.*		69,400		1,235
United Rentals, Inc.*		130,975		5,962
				20,683
Computers - 4.0%
Cadence Design Systems, Inc.*		446,050		6,026
Cognizant Technology Solutions Corp., Class A*		61,249		4,535

NORTHERN FUNDS QUARTERLY REPORT     1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Computers - 4.0% continued
Fusion-io, Inc.*		86,562	$	1,985
IHS, Inc., Class A*		43,978		4,222
Lexmark International, Inc., Class A		52,200		1,211
MICROS Systems, Inc.*		76,150		3,232
Riverbed Technology, Inc.*		222,125		4,380
Seagate Technology PLC		112,000		3,414
Sykes Enterprises, Inc.*		69,800		1,062
Teradata Corp.*		43,208		2,674
Western Digital Corp.		61,800		2,626
				35,367
Distribution/Wholesale - 1.5%
Fastenal Co.		156,571		7,310
Ingram Micro, Inc., Class A*		55,300		936
LKQ Corp.*		211,225		4,457
				12,703
Diversified Financial Services - 3.4%
Affiliated Managers Group, Inc.*		21,139		2,751
Aircastle Ltd.		138,300		1,734
Ameriprise Financial, Inc.		75,700		4,741
Discover Financial Services		206,275		7,952
IntercontinentalExchange, Inc.*		22,259		2,756
Raymond James Financial, Inc.		108,250		4,171
SLM Corp.		135,550		2,322
T. Rowe Price Group, Inc.		52,500		3,420
				29,847
Electric - 3.4%
Ameren Corp.		66,000		2,028
American Electric Power Co., Inc.		71,000		3,030
Calpine Corp.*		125,925		2,283
Cleco Corp.		124,925		4,998
CMS Energy Corp.		229,675		5,600
Entergy Corp.		53,600		3,417
Portland General Electric Co.		129,400		3,540
PPL Corp.		95,600		2,737
Public Service Enterprise Group, Inc.		67,800		2,075
				29,708
Electrical Components & Equipment - 0.8%
AMETEK, Inc.		137,689		5,173
Energizer Holdings, Inc.		24,100		1,928
				7,101
Electronics - 2.4%
Amphenol Corp., Class A		66,148		4,280
FEI Co.		54,725		3,035
PerkinElmer, Inc.		110,375		3,503
Pulse Electronics Corp.*		33,600		11
TE Connectivity Ltd.		73,200		2,717
Tech Data Corp.*		65,300		2,973
Trimble Navigation Ltd.*		66,434		3,972
Vishay Intertechnology, Inc.*		76,700		815
				21,306
Engineering & Construction - 0.9%
EMCOR Group, Inc.		41,050		1,421
Engility Holdings, Inc.*		9,449		182
KBR, Inc.		83,575		2,500
Tutor Perini Corp.*		98,100		1,344
URS Corp.		54,000		2,120
				7,567
Environmental Control - 0.7%
Clean Harbors, Inc.*		40,843		2,247
Stericycle, Inc.*		42,258		3,941
				6,188
Food - 3.8%
Fresh Del Monte Produce, Inc.		42,800		1,128
Fresh Market (The), Inc.*		26,000		1,250
Hain Celestial Group (The), Inc.*		90,350		4,899
J.M. Smucker (The) Co.		97,493		8,408
Kroger (The) Co.		185,400		4,824
McCormick & Co., Inc. (Non Voting)		34,397		2,185
Safeway, Inc.		224,600		4,063
Smithfield Foods, Inc.*		126,000		2,718
SUPERVALU, Inc.		67,800		168
Tyson Foods, Inc., Class A		184,600		3,581
				33,224
Forest Products & Paper - 0.5%
Boise, Inc.		241,400		1,919
International Paper Co.		52,450		2,090
				4,009
Gas - 0.8%
NiSource, Inc.		234,275		5,831
UGI Corp.		36,800		1,204
				7,035
Hand/Machine Tools - 0.3%
Lincoln Electric Holdings, Inc.		45,420		2,211

MULTI-MANAGER FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Hand/Machine Tools - 0.3% continued
Snap-on, Inc.		9,750	$	770
				2,981
Healthcare - Products - 3.6%
Align Technology, Inc.*		42,576		1,182
Boston Scientific Corp.*		311,700		1,786
C.R. Bard, Inc.		14,763		1,443
Cepheid, Inc.*		37,200		1,258
DENTSPLY International, Inc.		45,552		1,804
Edwards Lifesciences Corp.*		33,009		2,976
IDEXX Laboratories, Inc.*		29,005		2,692
Intuitive Surgical, Inc.*		8,988		4,407
Sirona Dental Systems, Inc.*		80,150		5,167
Varian Medical Systems, Inc.*		59,601		4,186
Zimmer Holdings, Inc.		68,000		4,533
				31,434
Healthcare - Services - 0.7%
Aetna, Inc.		74,300		3,440
Cigna Corp.		33,200		1,775
LifePoint Hospitals, Inc.*		32,600		1,231
				6,446
Home Builders - 0.6%
MDC Holdings, Inc.		48,100		1,768
Thor Industries, Inc.		88,525		3,314
				5,082
Home Furnishings - 1.0%
Harman International Industries, Inc.		99,654		4,449
Whirlpool Corp.		40,700		4,141
				8,590
Household Products/Wares - 0.7%
American Greetings Corp., Class A		9,200		156
Avery Dennison Corp.		40,700		1,421
Church & Dwight Co., Inc.		82,492		4,419
				5,996
Housewares - 0.7%
Newell Rubbermaid, Inc.		261,300		5,819
Insurance - 6.4%
ACE Ltd.		52,100		4,158
Aflac, Inc.		13,700		728
Allstate (The) Corp.		125,625		5,046
American Financial Group, Inc.		49,800		1,968
Aspen Insurance Holdings Ltd.		30,700		985
Assurant, Inc.		35,300		1,225
Chubb (The) Corp.		11,300		851
Endurance Specialty Holdings Ltd.		36,300		1,441
Everest Re Group Ltd.		23,100		2,540
Fidelity National Financial, Inc., Class A		149,450		3,519
Genworth Financial, Inc., Class A*		35,900		270
Hartford Financial Services Group, Inc.		111,800		2,509
HCC Insurance Holdings, Inc.		73,375		2,730
Lincoln National Corp.		367,850		9,527
Meadowbrook Insurance Group, Inc.		173,800		1,005
Montpelier Re Holdings Ltd.		33,200		759
PartnerRe Ltd.		10,700		861
Principal Financial Group, Inc.		123,800		3,531
Tower Group, Inc.		139,500		2,479
Unum Group		100,500		2,092
Validus Holdings Ltd.		210,075		7,264
				55,488
Internet - 1.9%
Expedia, Inc.		43,600		2,679
F5 Networks, Inc.*		26,525		2,577
LinkedIn Corp., Class A*		13,400		1,538
Rackspace Hosting, Inc.*		54,300		4,033
Splunk, Inc.*		91,200		2,647
ValueClick, Inc.*		169,100		3,282
				16,756
Iron/Steel - 1.2%
Allegheny Technologies, Inc.		89,600		2,720
Cliffs Natural Resources, Inc.		24,700		953
Nucor Corp.		99,175		4,282
Reliance Steel & Aluminum Co.		34,000		2,111
				10,066
Leisure Time - 0.4%
Polaris Industries, Inc.		39,968		3,363
Lodging - 0.0%
Marriott International, Inc., Class A - (Fractional Shares)*		34,801		—
Machinery - Construction & Mining - 0.1%
Hyster-Yale Materials Handling, Inc.		15,858		774
Machinery - Diversified - 2.6%
AGCO Corp.*		117,000		5,747
Albany International Corp., Class A		5,025		114
Cummins, Inc.		19,200		2,080

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Machinery - Diversified - 2.6% continued
IDEX Corp.		55,346	$	2,575
NACCO Industries, Inc., Class A		7,929		481
Rockwell Automation, Inc.		36,200		3,041
Roper Industries, Inc.		62,910		7,013
Wabtec Corp.		21,108		1,848
				22,899
Media - 0.6%
FactSet Research Systems, Inc.		32,632		2,874
Gannett Co., Inc.		130,900		2,357
				5,231
Metal Fabrication/Hardware - 0.5%
Precision Castparts Corp.		8,300		1,572
Timken Co.		52,500		2,511
				4,083
Mining - 0.0%
USEC, Inc.*		172,000		91
Miscellaneous Manufacturing - 0.8%
Eaton Corp. PLC		99,675		5,402
Trinity Industries, Inc.		50,975		1,826
				7,228
Office/Business Equipment - 0.2%
Xerox Corp.		226,400		1,544
Oil & Gas - 6.4%
Concho Resources, Inc.*		33,025		2,661
Energen Corp.		159,425		7,188
Helmerich & Payne, Inc.		38,150		2,137
Hess Corp.		76,800		4,067
HollyFrontier Corp.		120,950		5,630
Marathon Petroleum Corp.		81,075		5,108
Murphy Oil Corp.		70,600		4,204
Noble Corp.		78,925		2,748
Oasis Petroleum, Inc.*		109,317		3,476
Range Resources Corp.		35,661		2,241
Tesoro Corp.		83,400		3,674
Valero Energy Corp.		241,175		8,229
W&T Offshore, Inc.		70,900		1,137
Western Refining, Inc.		106,500		3,002
				55,502
Oil & Gas Services - 2.2%
Core Laboratories N.V.		43,400		4,744
FMC Technologies, Inc.*		72,496		3,105
Lufkin Industries, Inc.		53,573		3,114
Oceaneering International, Inc.		80,800		4,346
Oil States International, Inc.*		41,763		2,988
Superior Energy Services, Inc.*		45,927		952
				19,249
Packaging & Containers - 0.3%
Bemis Co., Inc.		39,825		1,333
Owens-Illinois, Inc.*		64,600		1,374
				2,707
Pharmaceuticals - 2.1%
BioMarin Pharmaceutical, Inc.*		41,200		2,029
Cardinal Health, Inc.		33,400		1,375
Catamaran Corp.*		56,141		2,645
Ironwood Pharmaceuticals, Inc.*		61,100		678
Jazz Pharmaceuticals PLC*		47,725		2,539
McKesson Corp.		17,900		1,736
Mylan, Inc.*		72,938		2,004
Perrigo Co.		32,721		3,404
Questcor Pharmaceuticals, Inc.		35,500		948
USANA Health Sciences, Inc.*		33,000		1,087
				18,445
Real Estate Investment Trusts - 5.6%
BioMed Realty Trust, Inc.		233,900		4,521
Brandywine Realty Trust		672,750		8,201
Capstead Mortgage Corp.		111,100		1,274
CBL & Associates Properties, Inc.		330,125		7,002
CommonWealth REIT		100,500		1,592
Digital Realty Trust, Inc.		22,475		1,526
DuPont Fabros Technology, Inc.		53,550		1,294
Home Properties, Inc.		15,575		955
Hospitality Properties Trust		136,300		3,192
Kilroy Realty Corp.		118,350		5,606
Lexington Realty Trust		349,100		3,648
MFA Financial, Inc.		394,700		3,201
Omega Healthcare Investors, Inc.		93,200		2,223
Parkway Properties, Inc.		53,600		750
PennyMac Mortgage Investment Trust		108,797		2,752
Weyerhaeuser Co.		50,900		1,416
				49,153
Retail - 8.4%
Arcos Dorados Holdings, Inc., Class A		213,300		2,551
Bob Evans Farms, Inc.		22,700		913
CarMax, Inc.*		101,900		3,825
Chipotle Mexican Grill, Inc.*		7,541		2,243

MULTI-MANAGER FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.9% continued
Retail - 8.4% continued
Copart, Inc.*		100,855	$	2,975
Dick’s Sporting Goods, Inc.		155,155		7,058
Dillard’s, Inc., Class A		25,700		2,153
DSW, Inc., Class A		21,500		1,412
Foot Locker, Inc.		204,700		6,575
GameStop Corp., Class A		103,000		2,584
GNC Holdings, Inc., Class A		147,700		4,915
Kohl’s Corp.		68,300		2,936
Macy’s, Inc.		171,650		6,698
MSC Industrial Direct Co., Inc., Class A		38,700		2,917
O’Reilly Automotive, Inc.*		49,329		4,411
Panera Bread Co., Class A*		30,245		4,804
Pier 1 Imports, Inc.		54,450		1,089
Pricesmart, Inc.		36,461		2,809
PVH Corp.		31,950		3,547
RadioShack Corp.		109,800		233
Restoration Hardware Holdings, Inc.*		8,400		283
Tractor Supply Co.		49,749		4,396
Ulta Salon Cosmetics & Fragrance, Inc.		18,599		1,828
				73,155
Semiconductors - 2.2%
Amkor Technology, Inc.*		242,600		1,031
ARM Holdings PLC ADR		107,640		4,072
Avago Technologies Ltd.		66,800		2,115
Broadcom Corp., Class A		124,550		4,136
Cavium, Inc.*		57,905		1,807
KLA-Tencor Corp.		17,100		817
NXP Semiconductor N.V.*		81,875		2,159
Skyworks Solutions, Inc.*		170,625		3,464
				19,601
Software - 4.9%
ANSYS, Inc.*		74,069		4,988
athenahealth, Inc.*		52,235		3,837
CA, Inc.		127,000		2,791
Cerner Corp.*		84,605		6,569
Citrix Systems, Inc.*		47,534		3,125
Fidelity National Information Services, Inc.		124,425		4,331
Fiserv, Inc.*		42,653		3,371
Intuit, Inc.		59,396		3,534
Red Hat, Inc.*		58,110		3,077
Salesforce.com, Inc.*		25,500		4,287
ServiceNow, Inc.*		7,100		213
Ultimate Software Group, Inc.*		21,300		2,011
Workday, Inc., Class A*		9,900		540
				42,674
Telecommunications - 1.2%
Comtech Telecommunications Corp.		31,600		802
Corning, Inc.		108,700		1,372
Harris Corp.		65,700		3,217
IPG Photonics Corp.		21,700		1,446
Palo Alto Networks, Inc.*		27,800		1,488
Ruckus Wireless, Inc.*		18,955		427
USA Mobility, Inc.		41,200		481
Vonage Holdings Corp.*		416,700		987
				10,220
Transportation - 1.3%
C.H. Robinson Worldwide, Inc.		36,305		2,295
Expeditors International of Washington, Inc.		36,100		1,428
Genesee & Wyoming, Inc., Class A*		39,799		3,028
Ryder System, Inc.		86,150		4,301
				11,052
Trucking & Leasing - 0.3%
Amerco, Inc.		22,800		2,891
Water - 0.2%
American Water Works Co., Inc.		51,775		1,922
Total Common Stocks (Cost $681,036)				845,649
INVESTMENT COMPANIES - 3.3%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1) (2)		28,935,994		28,936
Total Investment Companies (Cost $28,936)				28,936

NORTHERN FUNDS QUARTERLY REPORT    5    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER MID CAP FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.1%
U.S. Treasury Bill,
0.14%, 4/25/13(3)	$	995	$	995
Total Short-Term Investments (Cost $995)				995
Total Investments - 100.3% (Cost $710,967)				875,580
Liabilities less Other Assets - (0.3)%				(2,499	)
NET ASSETS - 100.0%			$	873,081

(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 purchases of approximately $3,915,000 during the nine months ended December 31, 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 December 31, 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		165	$	16,799		Long		3/13	$	217

At December 31, 2012, the industry sectors for the Multi-Manager Mid Cap Fund were :

INDUSTRY SECTOR	% OF LONG TERM INVESTMENTS
Consumer Discretionary		14.4	%
Consumer Staples		6.1
Energy		9.3
Financials		20.3
Health Care		9.5
Industrials		15.1
Information Technology		15.9
Materials		4.6
Telecommunication Services		0.2
Utilities		4.6
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 Multi-Manager Mid Cap Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	845,649	(1)	$	—	$	—	$	845,649
Investment Companies		28,936			—		—		28,936
Short-Term Investments		—			995		—		995
Total Investments	$	874,585		$	995	$	—	$	875,580
OTHER FINANCIAL INTRUMENTS
Assets
Futures Contracts	$	217		$	—	$	—	$	217

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	716,541
Gross tax appreciation of investments	$	189,352
Gross tax depreciation of investments		(30,313	)
Net tax appreciation of investments	$	159,039

MULTI-MANAGER FUNDS    6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0%
Advertising - 0.5%
Interpublic Group of (The) Cos., Inc.		32,800	$	362
MDC Partners, Inc., Class A		167,445		1,892
				2,254
Aerospace/Defense - 2.4%
Alliant Techsystems, Inc.		31,500		1,952
Cubic Corp.		25,272		1,212
Curtiss-Wright Corp.		21,250		698
Embraer S.A. ADR		11,100		316
Kaman Corp.		81,185		2,988
Teledyne Technologies, Inc.*		43,583		2,836
				10,002
Apparel - 1.3%
Jones Group (The), Inc.		118,600		1,312
Quiksilver, Inc.*		809,600		3,441
Steven Madden Ltd.*		13,865		586
				5,339
Auto Manufacturers - 1.0%
Tesla Motors, Inc.*		49,715		1,684
Wabash National Corp.*		255,097		2,288
				3,972
Auto Parts & Equipment - 1.0%
Meritor, Inc.*		124,500		589
Miller Industries, Inc.		159,592		2,434
Tenneco, Inc.*		31,375		1,101
				4,124
Banks - 4.2%
Associated Banc-Corp.		63,800		837
Bank of the Ozarks, Inc.		32,250		1,080
CapitalSource, Inc.		304,400		2,307
Cass Information Systems, Inc.		31,468		1,328
Community Bank System, Inc.		37,150		1,017
First Horizon National Corp.		208,085		2,062
First Horizon National Corp. - (Fractional Shares)*		63,966		—
First Interstate Bancsystem, Inc.		82,537		1,274
FirstMerit Corp.		31,700		450
Fulton Financial Corp.		150,075		1,442
Synovus Financial Corp.		443,700		1,087
TCF Financial Corp.		28,900		351
Trustmark Corp.		43,950		987
Webster Financial Corp.		55,200		1,134
Westamerica Bancorporation		34,232		1,458
Wintrust Financial Corp.		22,109		811
				17,625
Biotechnology - 0.9%
Amarin Corp. PLC ADR*		137,460		1,112
Ariad Pharmaceuticals, Inc.*		39,200		752
Cubist Pharmaceuticals, Inc.*		16,660		701
Emergent Biosolutions, Inc.*		49,585		795
Myriad Genetics, Inc.*		20,000		545
				3,905
Building Materials - 0.2%
Fortune Brands Home & Security, Inc.*		30,700		897
Chemicals - 1.4%
American Vanguard Corp.		38,645		1,200
Cabot Corp.		20,050		798
Innophos Holdings, Inc.		17,618		819
Sensient Technologies Corp.		39,250		1,396
W.R. Grace & Co.*		24,600		1,654
				5,867
Coal - 0.2%
Walter Energy, Inc.		28,175		1,011
Commercial Services - 14.7%
Acacia Research Corp.*		80,850		2,074
Accretive Health, Inc.*		77,545		896
Advisory Board (The) Co.*		21,129		989
American Public Education, Inc.*		82,072		2,964
Avis Budget Group, Inc.*		77,800		1,542
Brink’s (The) Co.		67,384		1,922
CBIZ, Inc.*		240,817		1,423
Chemed Corp.		40,120		2,752
Convergys Corp.		157,600		2,586
CoStar Group, Inc.*		25,385		2,269
DeVry, Inc.		29,300		695
FTI Consulting, Inc.*		28,402		937
Geo Group (The), Inc.		49,403		1,393
Global Cash Access Holdings, Inc.*		136,712		1,072
Global Payments, Inc.		31,300		1,418
Grand Canyon Education, Inc.*		104,307		2,448
Heidrick & Struggles International, Inc.		28,700		438
Hudson Global, Inc.*		421,655		1,889
KAR Auction Services, Inc.		133,657		2,705
Korn/Ferry International*		29,600		469
Lender Processing Services, Inc.		70,321		1,731

NORTHERN FUNDS QUARTERLY REPORT    1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Commercial Services - 14.7% continued
Manpower, Inc.		17,900	$	760
MAXIMUS, Inc.		81,075		5,126
Medifast, Inc.*		46,393		1,224
PAREXEL International Corp.*		17,825		527
PHH Corp.*		152,550		3,471
Rent-A-Center, Inc.		85,800		2,948
Ritchie Bros. Auctioneers, Inc.		84,682		1,769
Rollins, Inc.		141,360		3,116
United Rentals, Inc.*		35,605		1,621
Valassis Communications, Inc.		195,000		5,027
VistaPrint N.V.*		23,037		757
				60,958
Computers - 1.7%
3D Systems Corp.*		27,461		1,465
CIBER, Inc.*		78,400		262
j2 Global, Inc.		85,700		2,621
Maxwell Technologies, Inc.*		61,560		510
Stratasys Ltd.*		27,754		2,224
				7,082
Distribution/Wholesale - 1.7%
Beacon Roofing Supply, Inc.*		73,290		2,439
LKQ Corp.*		157,665		3,327
Owens & Minor, Inc.		39,094		1,114
				6,880
Diversified Financial Services - 3.5%
Affiliated Managers Group, Inc.*		4,900		638
Ellington Financial LLC		36,200		813
Encore Capital Group, Inc.*		63,633		1,948
Financial Engines, Inc.*		68,005		1,887
Nationstar Mortgage Holdings, Inc.*		63,130		1,956
Nelnet, Inc., Class A		101,518		3,024
Portfolio Recovery Associates, Inc.*		24,863		2,657
WisdomTree Investments, Inc.*		260,867		1,597
				14,520
Electric - 1.9%
El Paso Electric Co.		38,800		1,238
Great Plains Energy, Inc.		90,700		1,842
NRG Energy, Inc.		75,623		1,739
Portland General Electric Co.		65,200		1,784
UNS Energy Corp.		32,200		1,366
				7,969
Electrical Components & Equipment - 0.3%
Belden, Inc.		29,631		1,333
Electronics - 1.4%
CTS Corp.		70,297		747
FARO Technologies, Inc.*		26,750		954
Gentex Corp.		66,443		1,250
National Instruments Corp.		95,685		2,470
Park Electrochemical Corp.		15,105		389
				5,810
Engineering & Construction - 0.4%
Aegion Corp.*		22,504		499
MasTec, Inc.*		50,805		1,267
				1,766
Entertainment - 1.0%
Cinemark Holdings, Inc.		32,200		837
Lakes Entertainment, Inc.*		53,400		160
Six Flags Entertainment Corp.		51,156		3,131
				4,128
Food - 2.0%
Calavo Growers, Inc.		67,800		1,709
Fresh Market (The), Inc.*		29,880		1,437
Hain Celestial Group (The), Inc.*		1,215		66
Overhill Farms, Inc.*		390,452		1,690
Smart Balance, Inc.*		44,790		578
United Natural Foods, Inc.*		49,464		2,651
				8,131
Forest Products & Paper - 1.0%
Buckeye Technologies, Inc.		55,883		1,604
Schweitzer-Mauduit International, Inc.		62,200		2,428
				4,032
Hand/Machine Tools - 0.2%
Franklin Electric Co., Inc.		13,670		850
Healthcare - Products - 3.6%
Abaxis, Inc.		42,980		1,595
Align Technology, Inc.*		58,440		1,622
Cepheid, Inc.*		72,917		2,465
Insulet Corp.*		32,900		698
Meridian Bioscience, Inc.		66,506		1,347
OraSure Technologies, Inc.*		102,731		738
Spectranetics Corp.*		40,725		601
Techne Corp.		25,830		1,765
Teleflex, Inc.		17,600		1,255

MULTI-MANAGER FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Healthcare - Products - 3.6% continued
West Pharmaceutical Services, Inc.		50,500	$	2,765
				14,851
Healthcare - Services - 1.9%
Bio-Reference Labs, Inc.*		67,480		1,936
IPC The Hospitalist Co., Inc.*		38,160		1,515
LifePoint Hospitals, Inc.*		55,400		2,091
MEDNAX, Inc.*		29,710		2,363
				7,905
Home Builders - 0.3%
M/I Homes, Inc.*		39,002		1,034
Home Furnishings - 0.0%
Furniture Brands International, Inc.*		155,500		165
Household Products/Wares - 0.9%
Helen of Troy Ltd.*		30,900		1,032
SodaStream International Ltd.*		44,375		1,992
Tumi Holdings, Inc.*		26,583		554
				3,578
Housewares - 0.3%
Toro (The) Co.		25,038		1,076
Insurance - 5.4%
Alterra Capital Holdings Ltd.		88,124		2,484
American Equity Investment Life Holding Co.		123,527		1,508
Argo Group International Holdings Ltd.		50,000		1,680
Aspen Insurance Holdings Ltd.		44,700		1,434
CNO Financial Group, Inc.		306,300		2,858
Employers Holdings, Inc.		45,600		938
Endurance Specialty Holdings Ltd.		71,750		2,848
Global Indemnity PLC*		87,123		1,928
Horace Mann Educators Corp.		97,800		1,952
National Western Life Insurance Co., Class A		1,400		221
Protective Life Corp.		41,750		1,193
StanCorp Financial Group, Inc.		30,696		1,126
Symetra Financial Corp.		161,810		2,100
				22,270
Internet - 4.5%
Boingo Wireless, Inc.*		89,600		676
BroadSoft, Inc.*		55,482		2,016
Cogent Communications Group, Inc.		49,691		1,125
Constant Contact, Inc.*		168,421		2,393
Dealertrack Technologies, Inc.*		68,815		1,976
ExactTarget, Inc.*		28,725		575
InterActiveCorp		57,800		2,734
Internap Network Services Corp.*		92,633		643
Liquidity Services, Inc.*		21,400		874
Pandora Media, Inc.*		82,515		757
Sourcefire, Inc.*		14,755		697
SPS Commerce, Inc.*		45,683		1,703
ValueClick, Inc.*		125,400		2,434
				18,603
Investment Companies - 0.4%
Hercules Technology Growth Capital, Inc.		139,637		1,554
Leisure Time - 0.2%
Life Time Fitness, Inc.*		20,460		1,007
Machinery - Diversified - 0.3%
Manitowoc (The) Co., Inc.		78,975		1,238
Sauer-Danfoss, Inc.		3,400		182
				1,420
Media - 0.1%
Dolan (The) Co.*		151,436		589
Metal Fabrication/Hardware - 0.6%
CIRCOR International, Inc.		41,700		1,651
Haynes International, Inc.		19,571		1,015
				2,666
Mining - 1.8%
Compass Minerals International, Inc.		23,115		1,727
Globe Specialty Metals, Inc.		103,314		1,420
Hecla Mining Co.		128,100		747
Horsehead Holding Corp.*		198,917		2,031
Materion Corp.		9,160		236
Noranda Aluminum Holding Corp.		123,400		754
U.S. Antimony Corp.*		336,700		593
				7,508
Miscellaneous Manufacturing - 0.6%
Actuant Corp., Class A		28,500		796
Polypore International, Inc.*		40,050		1,862
				2,658
Oil & Gas - 3.3%
Berry Petroleum Co., Class A		36,600		1,228
Bonanza Creek Energy, Inc.*		53,300		1,481
Carrizo Oil & Gas, Inc.*		77,015		1,611
Cobalt International Energy, Inc.*		28,200		693

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL CAP FUND continued

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Oil & Gas - 3.3% continued
Comstock Resources, Inc.*		147,412	$	2,230
Goodrich Petroleum Corp.*		205,255		1,913
Halcon Resources Corp.*		17,640		122
Oasis Petroleum, Inc.*		24,200		770
Quicksilver Resources, Inc.*		478,435		1,368
SandRidge Energy, Inc.*		143,291		910
Stone Energy Corp.*		65,600		1,346
				13,672
Packaging & Containers - 0.8%
Silgan Holdings, Inc.		75,982		3,160
Pharmaceuticals - 0.9%
Neogen Corp.*		45,356		2,055
PharMerica Corp.*		64,400		917
Questcor Pharmaceuticals, Inc.		28,550		763
				3,735
Real Estate Investment Trusts - 3.9%
Brandywine Realty Trust		109,030		1,329
CapLease, Inc.		63,400		353
CubeSmart		104,700		1,526
CYS Investments, Inc.		227,590		2,688
DuPont Fabros Technology, Inc.		51,250		1,238
EPR Properties		29,700		1,369
Government Properties Income Trust		39,418		945
Granite Real Estate, Inc.		19,100		726
Hatteras Financial Corp.		35,850		889
LTC Properties, Inc.		34,400		1,211
Medical Properties Trust, Inc.		194,900		2,331
Starwood Property Trust, Inc.		61,400		1,410
				16,015
Retail - 5.0%
Bob Evans Farms, Inc.		40,178		1,615
Casey’s General Stores, Inc.		26,350		1,399
Cash America International, Inc.		94,152		3,735
CEC Entertainment, Inc.		38,050		1,263
Cheesecake Factory (The), Inc.		56,575		1,851
DineEquity, Inc.*		19,000		1,273
Finish Line (The), Inc., Class A		71,113		1,346
Francesca’s Holdings Corp.*		47,990		1,246
Krispy Kreme Doughnuts, Inc.*		56,200		527
Regis Corp.		64,395		1,090
Rush Enterprises, Inc., Class A*		71,900		1,486
Stage Stores, Inc.		37,174		921
Steinway Musical Instruments, Inc.*		38,260		809
World Fuel Services Corp.		56,700		2,335
				20,896
Savings & Loans - 0.7%
First Financial Holdings, Inc.		45,400		594
First Niagara Financial Group, Inc.		48,400		384
HomeStreet, Inc.*		42,500		1,086
Washington Federal, Inc.		49,800		840
				2,904
Semiconductors - 3.3%
Cabot Microelectronics Corp.		34,120		1,212
Cavium, Inc.*		52,055		1,625
Cypress Semiconductor Corp.*		60,532		656
Inphi Corp.*		150,320		1,440
Intersil Corp., Class A		198,498		1,645
ON Semiconductor Corp.*		290,600		2,049
Power Integrations, Inc.		57,015		1,916
Semtech Corp.*		87,425		2,531
Skyworks Solutions, Inc.*		41,600		844
				13,918
Shipbuilding - 0.6%
Huntington Ingalls Industries, Inc.		59,500		2,579
Software - 5.5%
ACI Worldwide, Inc.*		51,700		2,259
athenahealth, Inc.*		27,141		1,994
Blackbaud, Inc.		43,024		982
Broadridge Financial Solutions, Inc.		49,700		1,137
CommVault Systems, Inc.*		8,335		581
Concur Technologies, Inc.*		26,152		1,766
Digi International, Inc.*		112,255		1,063
Ebix, Inc.		61,359		986
Greenway Medical Technologies*		55,835		858
InnerWorkings, Inc.*		157,205		2,166
InterXion Holding N.V.*		10,095		240
Medidata Solutions, Inc.*		15,005		588
Pegasystems, Inc.		31,795		721
QLIK Technologies, Inc.*		43,990		956
SciQuest, Inc.*		71,520		1,134
Ultimate Software Group, Inc.*		42,370		4,000
Verint Systems, Inc.*		42,071		1,235
				22,666
Storage/Warehousing - 0.6%
Mobile Mini, Inc.*		121,625		2,533

MULTI-MANAGER FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 96.0% continued
Telecommunications - 3.9%
Acme Packet, Inc.*		73,670	$	1,630
Arris Group, Inc.*		166,400		2,486
Aruba Networks, Inc.*		29,865		620
Comverse, Inc.*		37,030		1,056
Finisar Corp.*		24,390		398
InterDigital, Inc.		53,600		2,203
IPG Photonics Corp.		27,520		1,834
Loral Space & Communications, Inc.		55,345		3,025
Plantronics, Inc.		66,700		2,459
Symmetricom, Inc.*		78,400		452
				16,163
Transportation - 3.7%
Atlas Air Worldwide Holdings, Inc.*		53,600		2,375
Bristow Group, Inc.		32,950		1,768
Celadon Group, Inc.		36,378		657
Con-way, Inc.		134,100		3,731
Echo Global Logistics, Inc.*		62,271		1,119
Forward Air Corp.		27,715		970
Gulfmark Offshore, Inc., Class A		17,700		610
Roadrunner Transportation Systems, Inc.*		49,100		891
Scorpio Tankers, Inc.*		216,031		1,536
Tidewater, Inc.		39,058		1,745
				15,402
Total Common Stocks (Cost $341,818)				398,982
INVESTMENT COMPANIES - 4.3%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(1) (2)		17,933,781		17,934
Total Investment Companies (Cost $17,934)				17,934
	PRINCIPAL AMOUNT (000S)		VALUE (000S)
SHORT-TERM INVESTMENTS - 0.1%
U.S. Treasury Bill,
0.14%, 4/25/13(3)	$	565	$	565
Total Short-Term Investments (Cost $565)				565
Total Investments - 100.4% (Cost $360,317)				417,481
Liabilities less Other Assets - (0.4)%				(1,665	)
NET ASSETS - 100.0%			$	415,816

(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 $3,144,000 during the nine months ended December 31 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 December 31, 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		77	$	6,519		Long		3/13	$	150

At December 31, 2012, the industry sectors for the Multi-Manager Small Cap Fund were:

INDUSTRY SECTOR	% OF LONG-TERM INVESTMENTS
Consumer Discretionary		12.9	%
Consumer Staples		2.7
Energy		5.4
Financials		20.3
Health Care		9.8
Industrials		17.9
Information Technology		22.8
Materials		5.7
Telecommunication Services		0.5
Utilities		2.0
Total		100.0	%

NORTHERN FUNDS QUARTERLY REPORT    5    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER SMALL 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 Multi-Manager Small Cap Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Common Stocks	$	398,982	(1)	$	—	$	—	$	398,982
Investment Companies		17,934			—		—		17,934
Short-Term Investments		—			565		—		565
Total Investments	$	416,916		$	565	$	—	$	417,481
OTHER FINANCIAL INSTRUMENTS
Assets
Futures Contracts	$	150		$	—	$	—	$	150

(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 December 31, 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.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	367,261
Gross tax appreciation of investments	$	70,535
Gross tax depreciation of investments		(20,315	)
Net tax appreciation of investments	$	50,220

MULTI-MANAGER FUNDS     6    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2.7%
Commercial Mortgage-Backed Securities - 0.6%
COBALT Commercial Mortgage Trust, Series 2006-C1, Class AM,
5.25%, 8/15/48	$	500	$	532
GS Mortgage Securities Corp. II, Series 2007-GG10, Class AM,
5.79%, 8/10/45		2,730		2,643
Morgan Stanley Capital I Trust, Series 2007-HQ12, Class AM,
5.57%, 4/12/49		1,050		1,110
				4,285
Home Equity - 0.1%
Option One Mortgage Loan Trust, Series 2007-1, Class 2A2,
0.31%, 1/25/37		644		417
Other - 0.3%
Ameriquest Mortgage Securities, Inc., Series 2005-R11, Class M1,
0.66%, 1/25/36		300		247
Countrywide Asset-Backed Certificates, Series 2004-13, Class AF5B,
5.10%, 5/25/35		225		192
DSC Floorplan Master Owner Trust, Series 2011-1, Class B,
8.11%, 3/15/16(1)		500		505
First Franklin Mortgage Loan Trust, Series 2006-FF10, Class A4,
0.36%, 7/25/36		426		373
Fremont Home Loan Trust, Series 2006-D, Series 2A3,
0.36%, 11/25/36		1,296		546
Sierra Receivables Funding Co. LLC, Series 2011-3A, Class C,
9.31%, 7/20/28(1) (2)		612		631
				2,494
Whole Loan - 1.7%
American Home Mortgage Investment Trust, Series 2005-2, Class 4A1,
2.01%, 9/25/45		450		427
American Home Mortgage Investment Trust, Series 2006-1, Class 11A1,
0.35%, 3/25/46		297		228
Banc of America Mortgage Trust, Series 2005-A, Class 2A1,
3.00%, 2/25/35		102		98
Citimortgage Alternative Loan Trust, Series 2006-A3, Class 1A7,
6.00%, 7/25/36		195		150
Countrywide Alternative Loan Trust, Series 2005-14, Class 2A1,
0.42%, 5/25/35		645		463
Countrywide Alternative Loan Trust, Series 2006-J4, Class 1A3,
6.25%, 7/25/36		575		390
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-11, Class 3A3,
2.73%, 4/25/35		1,454		809
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-13, Class A3,
5.50%, 6/25/35		1,083		1,088
Countrywide Home Loan Mortgage Pass Through Trust, Series 2005-2, Class 2A3,
0.55%, 3/25/35		528		332
GMAC Mortgage Corp. Loan Trust, Series 2005-AR3, Class 2A1,
3.42%, 6/19/35		652		642
GMAC Mortgage Corp. Loan Trust, Series 2005-AR4, Class 3A1,
3.58%, 7/19/35		674		616
GSR Mortgage Loan Trust, Series 2005-AR4, Class 4A1,
3.13%, 7/25/35		261		242
GSR Mortgage Loan Trust, Series 2006-8F, Class 4A17,
6.00%, 9/25/36		349		300
JP Morgan Alternative Loan Trust, Series 2006-A1, Class 5A1,
5.10%, 3/25/36		220		174
Lehman Mortgage Trust, Series 2005-3, Class 1A6,
0.71%, 1/25/36		245		162
Lehman Mortgage Trust, Series 2006-1, Class 3A5,
5.50%, 2/25/36		364		359
Lehman Mortgage Trust, Series 2007-8, Class 2A1,
6.50%, 9/25/37		528		440
Lehman XS Trust, Series 2007-10H, Class 1A11,
0.33%, 7/25/37		285		141
MASTR Adjustable Rate Mortgages Trust, Series 2005-2, Class 3A1,
2.93%, 3/25/35		573		436

NORTHERN FUNDS QUARTERLY REPORT    1    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
ASSET-BACKED SECURITIES - 2.7% continued
Whole Loan - 1.7% continued
MASTR Adjustable Rate Mortgages Trust, Series 2007-1, Class l2A1,
0.37%, 1/25/47	$	881	$	581
MASTR Asset Securitization Trust, Series 2007-1, Class 1A4,
6.50%, 11/25/37		546		487
Merrill Lynch Alternative Note Asset, Series 2007-F1, Class 2A7,
6.00%, 3/25/37		808		539
New York Mortgage Trust, Series 2006-1, Class 2A2,
2.99%, 5/25/36		272		228
RALI Trust, Series 2006-QS6, Class 1A16,
6.00%, 6/25/36		767		567
Residential Asset Securitization Trust, Series 2006-A2, Class A11,
6.00%, 1/25/46		611		417
RFMSI Trust, Series 2006-S1, Class 1A3,
5.75%, 1/25/36		639		642
Structured Adjustable Rate Mortgage Loan Trust, Series 2005-14, Class A1,
0.52%, 7/25/35		573		413
WaMu Mortgage Pass Through Certificates, Series 2006-AR11, Class 2A,
2.51%, 9/25/46		559		484
WaMu Mortgage Pass Through Certificates, Series 2007-OA3, Class 2A1A,
0.93%, 4/25/47		253		227
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2006-AR6, Class 2A,
1.13%, 8/25/46		880		476
Washington Mutual Alternative Mortgage Pass-Through Certificates, Series 2007-OC1, Class A1,
0.45%, 1/25/47		842		452
				13,010
Total Asset-Backed Securities (Cost $18,909)				20,206
CONVERTIBLE BONDS - 4.4%
Apparel - 0.2%
Iconix Brand Group, Inc.,
2.50%, 6/1/16(1)		1,395		1,439
Auto Manufacturers - 0.5%
Ford Motor Co.,
4.25%, 11/15/16		2,465		3,889
Auto Parts & Equipment - 0.2%
Meritor, Inc.,
4.00%, 2/15/27		1,630		1,208
Biotechnology - 0.4%
Gilead Sciences, Inc.,
1.63%, 5/1/16		150		252
Vertex Pharmaceuticals, Inc.,
3.35%, 10/1/15		2,345		2,620
				2,872
Coal - 0.1%
Peabody Energy Corp.,
4.75%, 12/15/41		1,070		1,029
Computers - 0.0%
SanDisk Corp.,
1.50%, 8/15/17		220		255
Home Builders - 0.6%
Lennar Corp.,
2.00%, 12/1/20(1)		105		150
2.75%, 12/15/20(1)		70		127
3.25%, 11/15/21(1) (2)		1,165		2,071
Ryland Group (The), Inc.,
1.63%, 5/15/18		495		672
Standard Pacific Corp.,
1.25%, 8/1/32		1,105		1,278
				4,298
Iron/Steel - 0.1%
Steel Dynamics, Inc.,
5.13%, 6/15/14		320		350
Miscellaneous Manufacturing - 0.3%
Trinity Industries, Inc.,
3.88%, 6/1/36		2,210		2,461
Oil & Gas - 0.4%
Chesapeake Energy Corp.,
2.75%, 11/15/35		2,805		2,682
2.50%, 5/15/37		630		565
				3,247
Pharmaceuticals - 0.0%
Mylan, Inc.,
3.75%, 9/15/15		120		254

MULTI-MANAGER FUNDS     2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CONVERTIBLE BONDS - 4.4% continued
Real Estate Investment Trusts - 0.1%
iStar Financial, Inc.,
3.00%, 11/15/16	$	585	$	592
Semiconductors - 0.9%
Intel Corp.,
2.95%, 12/15/35		4,310		4,455
Micron Technology, Inc.,
2.38%, 5/1/32(1)		2,605		2,488
				6,943
Telecommunications - 0.6%
Ciena Corp.,
4.00%, 3/15/15(1)		315		356
0.88%, 6/15/17		3,285		2,804
3.75%, 10/15/18(1)		240		270
Clearwire Communications LLC/Clearwire Finance, Inc.,
8.25%, 12/1/40(1)		320		353
Level 3 Communications, Inc.,
7.00%, 3/15/15		485		578
Portugal Telecom International Finance B.V.,
4.13%, 8/28/14(3)		150		203
				4,564
Total Convertible Bonds (Cost $29,160)				33,401
CORPORATE BONDS - 68.5%
Advertising - 0.3%
Visant Corp.,
10.00%, 10/1/17		2,880		2,585
Aerospace/Defense - 0.6%
Meccanica Holdings USA, Inc.,
7.38%, 7/15/39(1)		2,400		2,229
6.25%, 1/15/40(1)		1,400		1,208
TransDigm, Inc.,
7.75%, 12/15/18		850		940
				4,377
Agriculture - 1.1%
North Atlantic Trading Co.,
11.50%, 7/15/16(1)		7,740		8,040
Airlines - 0.8%
Continental Airlines Pass Through Trust, Series 1999-1, Class B,
6.80%, 8/2/18		802		836
Continental Airlines Pass Through Trust, Series 2000-1, Class A-1,
8.05%, 11/1/20		229		259
Continental Airlines Pass Through Trust, Series 2001-1, Class A-1,
6.70%, 6/15/21		143		156
Continental Airlines Pass Through Trust, Series 2007-1, Class B,
6.90%, 4/19/22		109		116
Continental Airlines Pass Through Trust, Series 2012-3, Class C,
6.13%, 4/29/18(1)		415		418
Continental Airlines, Inc.,
6.75%, 9/15/15(1)		555		583
UAL Pass Through Trust, Series 2009-1,
10.40%, 11/1/16		197		227
UAL Pass Through Trust, Series 2009-2A,
9.75%, 1/15/17		450		522
United Air Lines, Inc.,
9.88%, 8/1/13(1)		777		781
US Airways Pass Through Trust, Series 2012-1, Class B,
8.00%, 10/1/19		880		939
US Airways Pass Through Trust, Series 2012-1, Class C,
9.13%, 10/1/15		1,550		1,598
				6,435
Apparel - 0.4%
Jones Group (The), Inc.,
6.13%, 11/15/34		3,485		2,997
Auto Manufacturers - 0.0%
Ford Motor Co.,
9.98%, 2/15/47		255		358
Auto Parts & Equipment - 0.0%
Goodyear Tire & Rubber (The) Co.,
7.00%, 3/15/28		80		81
Banks - 1.9%
Ally Financial, Inc.,
5.50%, 2/15/17		295		316
6.25%, 12/1/17		2,560		2,835
8.00%, 3/15/20		1,245		1,525
7.50%, 9/15/20		695		839
8.00%, 11/1/31		666		843
CIT Group, Inc.,
5.00%, 5/15/17		400		424

NORTHERN FUNDS QUARTERLY REPORT    3    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 68.5% continued
Banks - 1.9% continued
5.25%, 3/15/18	$	675	$	722
6.63%, 4/1/18(1)		2,055		2,322
5.50%, 2/15/19(1)		2,565		2,796
Morgan Stanley,
8.00%, 5/9/17(4)		1,300		1,490
				14,112
Building Materials - 0.5%
Masco Corp.,
6.13%, 10/3/16		340		376
USG Corp.,
9.75%, 1/15/18		1,905		2,157
8.38%, 10/15/18(1)		870		966
				3,499
Chemicals - 2.2%
Hercules, Inc.,
6.50%, 6/30/29		1,960		1,750
Hexion U.S. Finance Corp./Hexion Nova Scotia Finance ULC,
8.88%, 2/1/18		535		550
9.00%, 11/15/20		30		27
Huntsman International LLC,
8.63%, 3/15/20		315		357
8.63%, 3/15/21		1,520		1,737
Momentive Performance Materials, Inc.,
8.88%, 10/15/20(1)		2,535		2,560
10.00%, 10/15/20(1)		1,445		1,423
9.00%, 1/15/21		3,285		2,398
PQ Corp.,
8.75%, 5/1/18(1) (2)		2,470		2,593
Reichhold Industries, Inc.,
9.00%, 5/8/17(1) (2)		1,005		729
Tronox Finance LLC,
6.38%, 8/15/20(1)		2,765		2,793
				16,917
Coal - 2.3%
Arch Coal, Inc.,
9.88%, 6/15/19(1) (2)		510		531
7.25%, 10/1/20		335		311
7.25%, 6/15/21		3,170		2,924
Foresight Energy LLC/Foresight Energy Corp.,
9.63%, 8/15/17(1)		9,800		10,486
Peabody Energy Corp.,
6.00%, 11/15/18		1,350		1,434
6.25%, 11/15/21		1,440		1,530
				17,216
Commercial Services - 3.5%
American Residential Services LLC,
12.00%, 4/15/15(1) (2)		725		645
Brickman Group Holdings, Inc.,
9.13%, 11/1/18(1)		2,110		2,210
Ceridian Corp.,
11.25%, 11/15/15		1,775		1,775
12.25%, 11/15/15		2,050		2,055
8.88%, 7/15/19(1)		1,410		1,530
Emergency Medical Services Corp.,
8.13%, 6/1/19(1)		5,075		5,573
HDTFS, Inc.,
5.88%, 10/15/20(1)		495		517
Iron Mountain, Inc.,
7.75%, 10/1/19		505		569
5.75%, 8/15/24		920		932
Jaguar Holding Co. I,
9.38%, 10/15/17(1)		370		388
Jaguar Holding Co. II/Jaguar Merger Sub, Inc.,
9.50%, 12/1/19(1)		810		919
Knowledge Universe Education LLC,
7.75%, 2/1/15(1)		510		472
R.R. Donnelley & Sons Co.,
8.60%, 8/15/16		455		489
7.25%, 5/15/18		3,270		3,156
8.25%, 3/15/19		2,070		2,091
7.63%, 6/15/20		1,325		1,272
ServiceMaster Co.,
7.45%, 8/15/27		1,535		1,243
TransUnion Holding Co., Inc.,
9.63%, 6/15/18		290		307
United Rentals N.A., Inc.,
8.25%, 2/1/21		305		344
				26,487
Computers - 0.2%
SunGard Data Systems, Inc.,
7.38%, 11/15/18		260		278
6.63%, 11/1/19(1)		1,325		1,355
7.63%, 11/15/20		260		284
				1,917

MULTI-MANAGER FUNDS     4    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 68.5% continued
Distribution/Wholesale - 0.6%
VWR Funding, Inc.,
7.25%, 9/15/17(1)	$	4,265	$	4,478
Diversified Financial Services - 2.9%
Ford Holdings LLC,
9.30%, 3/1/30		545		749
General Motors Financial Co., Inc.,
4.75%, 8/15/17(1)		1,375		1,446
Icahn Enterprises L.P./Icahn Enterprises Finance Corp.,
7.75%, 1/15/16		1,515		1,570
8.00%, 1/15/18		2,650		2,845
International Lease Finance Corp.,
8.63%, 9/15/15		245		275
8.75%, 3/15/17		1,535		1,773
8.88%, 9/1/17		3,100		3,643
6.25%, 5/15/19		475		506
8.63%, 1/15/22		585		722
Residential Capital LLC,
9.63%, 5/15/15(5)		3,590		3,774
Springleaf Finance Corp.,
5.75%, 9/15/16		715		647
6.50%, 9/15/17		300		266
6.90%, 12/15/17		4,300		3,848
				22,064
Electric - 2.2%
Calpine Corp.,
7.25%, 10/15/17(1)		319		340
CMS Energy Corp.,
6.55%, 7/17/17		530		625
Energy Future Intermediate Holding Co. LLC/EFIH Finance, Inc.,
11.00%, 10/1/21		600		648
11.75%, 3/1/22(1)		7,675		8,519
Ipalco Enterprises, Inc.,
7.25%, 4/1/16(1)		975		1,082
5.00%, 5/1/18		265		278
NRG Energy, Inc.,
7.63%, 1/15/18		1,050		1,165
8.25%, 9/1/20		980		1,098
7.88%, 5/15/21		1,830		2,031
Texas Competitive Electric Holdings Co. LLC/TCEH Finance, Inc.,
11.50%, 10/1/20(1)		1,095		857
				16,643
Entertainment - 1.3%
AMC Entertainment, Inc.,
9.75%, 12/1/20		1,175		1,357
Cedar Fair L.P./Canada’s Wonderland Co./Magnum Management Corp.,
9.13%, 8/1/18		640		720
Graton Economic Development Authority,
9.63%, 9/1/19(1)		1,680		1,800
Mohegan Tribal Gaming Authority,
10.50%, 12/15/16(1)		275		269
11.00%, 9/15/18(1)		1,105		870
Pinnacle Entertainment, Inc.,
7.75%, 4/1/22		427		455
Seminole Indian Tribe of Florida,
7.75%, 10/1/17(1)		575		622
WMG Acquisition Corp.,
6.00%, 1/15/21(1)		3,385		3,571
				9,664
Environmental Control - 0.0%
ADS Waste Holdings, Inc.,
8.25%, 10/1/20(1)		135		142
Food - 0.9%
Pinnacle Foods Finance LLC/Pinnacle Foods Finance Corp.,
9.25%, 4/1/15		4,740		4,811
Post Holdings, Inc.,
7.38%, 2/15/22(1)		1,535		1,682
				6,493
Hand/Machine Tools - 0.1%
Thermadyne Holdings Corp.,
9.00%, 12/15/17		400		426
Healthcare - Products - 0.8%
Biomet, Inc.,
6.50%, 8/1/20(1)		1,455		1,546
DJO Finance LLC/DJO Finance Corp.,
9.88%, 4/15/18(1)		1,735		1,791
Hologic, Inc.,
6.25%, 8/1/20(1)		405		437
Physio-Control International, Inc.,
9.88%, 1/15/19(1)		2,040		2,239
				6,013
Healthcare - Services - 4.6%
CDRT Holding Corp.,
9.25%, 10/1/17(1) (2)		500		510

NORTHERN FUNDS QUARTERLY REPORT    5    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 68.5% continued
Healthcare - Services - 4.6% continued
Community Health Systems, Inc.,
5.13%, 8/15/18	$	1,625	$	1,694
DaVita HealthCare Partners, Inc.,
5.75%, 8/15/22		410		432
Fresenius Medical Care US Finance II, Inc.,
5.63%, 7/31/19(1)		595		639
5.88%, 1/31/22(1)		210		228
Fresenius Medical Care US Finance, Inc.,
6.50%, 9/15/18(1)		835		933
HCA Holdings, Inc.,
6.25%, 2/15/21		440		451
HCA, Inc.,
8.50%, 4/15/19		530		591
7.88%, 2/15/20		375		417
4.75%, 5/1/23		2,830		2,879
7.50%, 12/15/23		260		266
8.36%, 4/15/24		680		733
7.69%, 6/15/25		1,310		1,339
7.58%, 9/15/25		225		228
7.05%, 12/1/27		65		62
7.50%, 11/6/33		1,940		1,950
7.75%, 7/15/36		420		427
Health Management Associates, Inc.,
7.38%, 1/15/20		610		659
Radiation Therapy Services, Inc.,
8.88%, 1/15/17		4,000		3,920
9.88%, 4/15/17		850		599
Radnet Management, Inc.,
10.38%, 4/1/18		6,000		6,105
ResCare, Inc.,
10.75%, 1/15/19		1,360		1,510
Tenet Healthcare Corp.,
8.88%, 7/1/19		1,480		1,658
4.75%, 6/1/20(1)		400		406
6.88%, 11/15/31		1,725		1,552
United Surgical Partners International, Inc.,
9.00%, 4/1/20		3,925		4,357
Universal Health Services, Inc.,
7.13%, 6/30/16		505		576
				35,121
Holding Companies - Diversified - 1.1%
Alphabet Holding Co., Inc.,
7.75%, 11/1/17(1)		250		257
Harbinger Group, Inc.,
7.88%, 7/15/19(1) (2)		7,360		7,296
Ladder Capital Finance Holdings LLLP/Ladder Capital Finance Corp.,
7.38%, 10/1/17(1)		975		1,002
				8,555
Home Builders - 1.5%
Beazer Homes USA, Inc.,
9.13%, 6/15/18		885		923
9.13%, 5/15/19		420		439
D.R. Horton, Inc.,
4.38%, 9/15/22		680		694
K Hovnanian Enterprises, Inc.,
5.00%, 11/1/21		1,520		1,292
KB Home,
7.25%, 6/15/18		1,420		1,544
8.00%, 3/15/20		945		1,073
7.50%, 9/15/22		595		648
Lennar Corp.,
4.75%, 12/15/17(1)		850		880
PulteGroup, Inc.,
7.88%, 6/15/32		2,545		2,768
6.38%, 5/15/33		390		389
6.00%, 2/15/35		290		270
Standard Pacific Corp.,
8.38%, 1/15/21		240		278
				11,198
Home Furnishings - 0.4%
Sealy Mattress Co.,
8.25%, 6/15/14		1,780		1,785
Tempur-Pedic International, Inc.,
6.88%, 12/15/20(1) (2)		990		1,018
				2,803
Household Products/Wares - 1.9%
Reynolds Group Issuer, Inc./Reynolds Group Issuer LLC/Reynolds Group Issuer Lu,
8.50%, 5/15/18		800		820
9.00%, 4/15/19		300		312
7.88%, 8/15/19		1,480		1,647
9.88%, 8/15/19		2,300		2,461
5.75%, 10/15/20(1)		1,485		1,533
6.88%, 2/15/21		670		722
8.25%, 2/15/21		2,630		2,669

MULTI-MANAGER FUNDS     6    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 68.5% continued
Household Products/Wares - 1.9% continued
Spectrum Brands Escrow Corp.,
6.38%, 11/15/20(1)	$	2,150	$	2,258
6.63%, 11/15/22(1)		2,150		2,306
				14,728
Internet - 2.1%
Global Generations Merger Sub, Inc.,
11.00%, 12/15/20(1) (2)		6,500		6,614
GXS Worldwide, Inc.,
9.75%, 6/15/15		8,930		9,309
				15,923
Iron/Steel - 1.2%
Edgen Murray Corp.,
8.75%, 11/1/20(1) (2)		2,680		2,707
Ryerson, Inc./Joseph T Ryerson & Son, Inc.,
9.00%, 10/15/17(1)		5,240		5,345
United States Steel Corp.,
6.65%, 6/1/37		1,514		1,317
				9,369
Leisure Time - 0.9%
Equinox Holdings, Inc.,
9.50%, 2/1/16(1)		6,380		6,731
Lodging - 2.2%
Boyd Acquisition Sub LLC/Boyd Acquisition Finance Corp.,
8.38%, 2/15/18(1)		1,285		1,336
Boyd Gaming Corp.,
7.13%, 2/1/16		260		255
Caesars Entertainment Operating Co., Inc.,
11.25%, 6/1/17		6,000		6,427
Caesars Operating Escrow LLC/Caesars Escrow Corp.,
9.00%, 2/15/20(1) (2)		360		360
CityCenter Holdings LLC/CityCenter Finance Corp.,
7.63%, 1/15/16(1)		670		715
7.63%, 1/15/16		365		391
MGM Resorts International,
7.50%, 6/1/16		520		558
6.75%, 10/1/20(1)		955		975
6.63%, 12/15/21		1,340		1,340
7.75%, 3/15/22		3,455		3,697
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp.,
7.75%, 8/15/20		841		959
				17,013
Machinery - Construction & Mining - 0.1%
Terex Corp.,
6.50%, 4/1/20		430		456
6.00%, 5/15/21		535		563
				1,019
Machinery - Diversified - 0.4%
Case New Holland, Inc.,
7.88%, 12/1/17		1,400		1,656
Cleaver-Brooks, Inc.,
8.75%, 12/15/19(1) (2)		740		764
Manitowoc (The) Co., Inc.,
8.50%, 11/1/20		465		522
				2,942
Media - 5.0%
AMC Networks, Inc.,
7.75%, 7/15/21		365		418
Baker & Taylor Acquisitions Corp.,
15.00%, 4/1/17(1) (2)		400		276
CCO Holdings LLC/CCO Holdings Capital Corp.,
7.25%, 10/30/17		1,320		1,439
7.00%, 1/15/19		1,060		1,143
8.13%, 4/30/20		250		280
5.13%, 2/15/23		550		549
Cengage Learning Acquisitions, Inc.,
11.50%, 4/15/20(1)		925		798
Cequel Communications Holdings I LLC/Cequel Capital Corp.,
6.38%, 9/15/20(1)		1,150		1,197
Clear Channel Communications, Inc.,
5.50%, 9/15/14		3,700		3,450
10.75%, 8/1/16		730		551
Clear Channel Worldwide Holdings, Inc.,
7.63%, 3/15/20		4,310		4,299
7.63%, 3/15/20		3,885		3,914
6.50%, 11/15/22(1) (2)		985		1,022
6.50%, 11/15/22(1) (2)		365		375
CSC Holdings LLC,
7.63%, 7/15/18		565		653
6.75%, 11/15/21(1)		1,255		1,391

NORTHERN FUNDS QUARTERLY REPORT    7    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 68.5% continued
Media - 5.0% continued
Cumulus Media Holdings, Inc.,
7.75%, 5/1/19	$	1,055	$	1,037
DISH DBS Corp.,
7.75%, 5/31/15		245		274
7.13%, 2/1/16		280		314
4.63%, 7/15/17		2,190		2,283
6.75%, 6/1/21		2,300		2,622
5.88%, 7/15/22		1,575		1,693
5.00%, 3/15/23(1) (2)		765		765
Entercom Radio LLC,
10.50%, 12/1/19		2,240		2,464
Gannett Co., Inc.,
9.38%, 11/15/17		135		150
7.13%, 9/1/18		1,525		1,664
Univision Communications, Inc.,
6.88%, 5/15/19(1)		1,125		1,170
8.50%, 5/15/21(1)		748		772
XM Satellite Radio, Inc.,
7.63%, 11/1/18(1)		1,235		1,377
				38,340
Metal Fabricate/Hardware - 1.8%
Atkore International, Inc.,
9.88%, 1/1/18		1,615		1,716
JMC Steel Group, Inc.,
8.25%, 3/15/18(1) (2)		1,000		1,045
Severstal Columbus LLC,
10.25%, 2/15/18		7,360		7,746
Shale-Inland Holdings LLC/Shale-Inland Finance Corp.,
8.75%, 11/15/19(1)		3,070		3,216
				13,723
Mining - 0.3%
Century Aluminum Co.,
8.00%, 5/15/14		2,030		2,050
Miscellaneous Manufacturing - 0.1%
JM Huber Corp.,
9.88%, 11/1/19(1)		935		1,038
Office/Business Equipment - 0.6%
CDW LLC/CDW Finance Corp.,
8.00%, 12/15/18		4,000		4,425
Oil & Gas - 5.2%
Chesapeake Energy Corp.,
6.50%, 8/15/17		1,015		1,101
6.63%, 8/15/20		715		767
6.13%, 2/15/21		1,635		1,696
Cimarex Energy Co.,
5.88%, 5/1/22		790		865
Continental Resources, Inc.,
5.00%, 9/15/22		610		657
EP Energy LLC/EP Energy Finance, Inc.,
9.38%, 5/1/20		4,078		4,598
EP Energy LLC/Everest Acquisition Finance, Inc.,
7.75%, 9/1/22		190		201
EPE Holdings LLC/EP Energy Bond Co., Inc.,
8.13%, 12/15/17(1) (2)		315		312
EXCO Resources, Inc.,
7.50%, 9/15/18		1,945		1,887
Forest Oil Corp.,
7.50%, 9/15/20(1)		1,060		1,113
Hercules Offshore, Inc.,
10.25%, 4/1/19(1)		925		1,013
Linn Energy LLC/Linn Energy Finance Corp.,
6.25%, 11/1/19(1)		1,825		1,834
8.63%, 4/15/20		700		763
7.75%, 2/1/21		1,010		1,076
Newfield Exploration Co.,
5.75%, 1/30/22		1,860		2,046
5.63%, 7/1/24		390		421
Plains Exploration & Production Co.,
7.63%, 6/1/18		365		384
6.13%, 6/15/19		640		698
8.63%, 10/15/19		385		438
7.63%, 4/1/20		625		697
6.50%, 11/15/20		1,535		1,700
6.63%, 5/1/21		670		738
6.75%, 2/1/22		1,595		1,790
6.88%, 2/15/23		300		343
Range Resources Corp.,
8.00%, 5/15/19		90		100
5.75%, 6/1/21		265		284
5.00%, 8/15/22		845		883
SandRidge Energy, Inc.,
8.00%, 6/1/18(1)		970		1,028
8.13%, 10/15/22		225		246
7.50%, 2/15/23		1,520		1,627

MULTI-MANAGER FUNDS     8    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 68.5% continued
Oil & Gas - 5.2% continued
Sidewinder Drilling, Inc.,
9.75%, 11/15/19(1)	$	3,810	$	3,829
W&T Offshore, Inc.,
8.50%, 6/15/19(1)		2,290		2,462
WPX Energy, Inc.,
5.25%, 1/15/17		386		409
6.00%, 1/15/22		1,215		1,309
				39,315
Oil & Gas Services - 0.1%
Basic Energy Services, Inc.,
7.75%, 2/15/19		385		383
Global Geophysical Services, Inc.,
10.50%, 5/1/17		760		676
				1,059
Packaging & Containers - 0.9%
Berry Plastics Corp.,
9.50%, 5/15/18		850		935
9.75%, 1/15/21		3,925		4,523
Crown Americas LLC/Crown Americas Capital Corp. II,
7.63%, 5/15/17		440		465
Owens-Brockway Glass Container, Inc.,
7.38%, 5/15/16		535		610
				6,533
Pharmaceuticals - 0.8%
Endo Health Solutions, Inc.,
7.00%, 7/15/19		515		549
Valeant Pharmaceuticals International,
6.75%, 10/1/17(1)		320		346
6.88%, 12/1/18(1)		1,170		1,261
6.38%, 10/15/20(1)		775		831
7.25%, 7/15/22(1)		740		808
VPI Escrow Corp.,
6.38%, 10/15/20(1)		2,080		2,231
				6,026
Pipelines - 1.3%
Access Midstream Partners L.P./ACMP Finance Corp.,
5.88%, 4/15/21		340		361
6.13%, 7/15/22		1,590		1,713
4.88%, 5/15/23		615		624
El Paso LLC,
7.00%, 6/15/17		890		1,017
7.25%, 6/1/18		180		208
7.80%, 8/1/31		665		775
7.75%, 1/15/32		965		1,134
Energy Transfer Equity L.P.,
7.50%, 10/15/20		1,230		1,421
Kinder Morgan Finance Co. LLC,
6.00%, 1/15/18(1)		475		522
MarkWest Energy Partners L.P./MarkWest Energy Finance Corp.,
8.75%, 4/15/18		745		792
Regency Energy Partners L.P./Regency Energy Finance Corp.,
6.88%, 12/1/18		720		785
Rockies Express Pipeline LLC,
6.88%, 4/15/40(1)		695		625
				9,977
Real Estate - 0.1%
Realogy Group LLC,
7.63%, 1/15/20(1)		510		578
Real Estate Investment Trusts - 0.5%
Host Hotels & Resorts L.P.,
5.88%, 6/15/19		760		828
iStar Financial, Inc.,
7.13%, 2/15/18		1,165		1,187
Omega Healthcare Investors, Inc.,
6.75%, 10/15/22		1,645		1,789
				3,804
Retail - 5.1%
AmeriGas Finance LLC/AmeriGas Finance Corp.,
6.75%, 5/20/20		860		944
7.00%, 5/20/22		1,195		1,329
Claire’s Stores, Inc.,
9.00%, 3/15/19(1)		7,870		8,441
Dillard’s, Inc.,
7.75%, 7/15/26		495		521
7.75%, 5/15/27		465		485
Ferrellgas L.P./Ferrellgas Finance Corp.,
9.13%, 10/1/17		1,295		1,402
Hillman Group, Inc.,
10.88%, 5/31/18(1) (2)		2,200		2,365
10.88%, 6/1/18		2,930		3,150
New Albertsons, Inc.,
7.45%, 8/1/29		2,890		1,618

NORTHERN FUNDS QUARTERLY REPORT    9    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 68.5% continued
Retail - 5.1% continued
Party City Holdings, Inc.,
8.88%, 8/1/20(1)	$	415	$	445
Rite Aid Corp.,
9.50%, 6/15/17		140		146
10.25%, 10/15/19		295		336
8.00%, 8/15/20		1,327		1,516
Sears Holdings Corp.,
6.63%, 10/15/18		3,895		3,544
Serta Simmons Holdings LLC,
8.13%, 10/1/20(1)		4,490		4,490
Suburban Propane Partners L.P./Suburban Energy Finance Corp.,
7.50%, 10/1/18		893		962
7.38%, 8/1/21		728		792
Toys R Us Property Co. I LLC,
10.75%, 7/15/17		2,900		3,125
Toys R Us Property Co. II LLC,
8.50%, 12/1/17		930		986
Toys R Us, Inc.,
7.38%, 10/15/18		2,235		2,034
				38,631
Semiconductors - 0.3%
Amkor Technology, Inc.,
6.63%, 6/1/21		350		349
6.38%, 10/1/22(1)		570		561
Freescale Semiconductor, Inc.,
9.25%, 4/15/18(1)		970		1,060
8.05%, 2/1/20		240		239
				2,209
Software - 1.8%
Fidelity National Information Services, Inc.,
7.63%, 7/15/17		465		506
7.88%, 7/15/20		450		509
First Data Corp.,
11.25%, 3/31/16		1,930		1,891
7.38%, 6/15/19(1)		555		574
6.75%, 11/1/20(1)		7,050		7,121
8.25%, 1/15/21(1)		2,515		2,515
Sophia L.P./Sophia Finance, Inc.,
9.75%, 1/15/19(1)		855		921
				14,037
Telecommunications - 5.6%
Alcatel-Lucent USA, Inc.,
6.50%, 1/15/28		50		38
6.45%, 3/15/29		4,595		3,492
CenturyLink, Inc.,
6.45%, 6/15/21		540		597
7.60%, 9/15/39		1,155		1,199
Cincinnati Bell Telephone Co. LLC,
6.30%, 12/1/28		50		48
Frontier Communications Corp.,
7.88%, 1/15/27		1,830		1,857
9.00%, 8/15/31		1,835		2,019
7.45%, 7/1/35		10		9
Integra Telecom Holdings, Inc.,
10.75%, 4/15/16(1)		580		606
Level 3 Communications, Inc.,
8.88%, 6/1/19(1)		1,355		1,443
Level 3 Financing, Inc.,
8.13%, 7/1/19		2,175		2,371
7.00%, 6/1/20(1)		455		475
8.63%, 7/15/20		1,425		1,582
PAETEC Holding Corp.,
8.88%, 6/30/17		460		493
9.88%, 12/1/18		190		218
Qwest Capital Funding, Inc.,
7.63%, 8/3/21		260		285
6.88%, 7/15/28		650		662
Qwest Communications International, Inc.,
7.13%, 4/1/18		635		663
Qwest Corp.,
6.75%, 12/1/21		340		398
6.88%, 9/15/33		1,888		1,897
SBA Telecommunications, Inc.,
5.75%, 7/15/20(1)		360		383
Sprint Capital Corp.,
6.88%, 11/15/28		8,570		8,913
8.75%, 3/15/32		1,255		1,534
Sprint Nextel Corp.,
9.00%, 11/15/18(1)		245		303
7.00%, 3/1/20(1)		473		550
6.00%, 11/15/22		845		868
Syniverse Holdings, Inc.,
9.13%, 1/15/19		645		689
West Corp.,
7.88%, 1/15/19		3,750		3,881

MULTI-MANAGER FUNDS     10    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
CORPORATE BONDS - 68.5% continued
Telecommunications - 5.6% continued
Windstream Corp.,
8.13%, 8/1/13	$	295	$	306
7.88%, 11/1/17		1,035		1,164
7.75%, 10/15/20		255		275
7.75%, 10/1/21		1,185		1,280
7.50%, 6/1/22		1,815		1,924
				42,422
Total Corporate Bonds (Cost $500,144)				520,513
FOREIGN ISSUER BONDS - 11.6%
Airlines - 0.0%
Air Canada,
12.00%, 2/1/16(1) (2)		55		57
Banks - 1.2%
Banco Santander Chile,
6.50%, 9/22/20(1) (2) (6)		350,000		724
Export-Import Bank of Korea,
4.00%, 11/26/15(1) (7)		92,000		2,388
HBOS PLC,
6.75%, 5/21/18(1) (2)		2,700		2,906
6.00%, 11/1/33(1) (2)		200		180
Royal Bank of Scotland Group PLC,
6.13%, 12/15/22		2,360		2,491
5.50%, 11/29/49(3)		290		294
				8,983
Building Materials - 1.1%
Ainsworth Lumber Co. Ltd.,
7.50%, 12/15/17(1) (2)		3,610		3,781
Corp GEO S.A.B. de C.V.,
8.88%, 3/27/22(1) (2)		800		852
Desarrolladora Homex S.A.B. de C.V.,
9.75%, 3/25/20(1)		1,720		1,866
Urbi Desarrollos Urbanos S.A.B. de C.V.,
9.50%, 1/21/20(1)		315		298
9.75%, 2/3/22(1)		1,600		1,516
				8,313
Chemicals - 0.2%
LyondellBasell Industries N.V.,
5.00%, 4/15/19		1,175		1,299
6.00%, 11/15/21		400		469
				1,768
Computers - 0.1%
Seagate HDD Cayman,
7.00%, 11/1/21		755		810
Electric - 0.7%
EDP Finance B.V.,
4.90%, 10/1/19(1) (2)		2,610		2,586
Enel Finance International N.V.,
6.00%, 10/7/39(1)		2,650		2,566
				5,152
Entertainment - 0.5%
Great Canadian Gaming Corp.,
6.63%, 7/25/22(1) (2) (8)		4,000		4,188
Food - 0.1%
Marfrig Overseas Ltd.,
9.50%, 5/4/20(1) (2)		500		431
Iron/Steel - 1.0%
ArcelorMittal,
6.13%, 6/1/18		620		628
5.75%, 8/5/20		2,351		2,356
6.00%, 3/1/21		145		145
7.25%, 3/1/41		3,260		3,024
Essar Steel Algoma, Inc.,
9.88%, 6/15/15(1) (2)		1,605		1,099
				7,252
Mining - 0.7%
FMG Resources August 2006 Pty Ltd.,
7.00%, 11/1/15(1)		1,600		1,680
6.00%, 4/1/17(1)		660		673
8.25%, 11/1/19(1)		505		538
6.88%, 4/1/22(1)		2,020		2,066
				4,957
Miscellaneous Manufacturing - 0.4%
Bombardier, Inc.,
7.45%, 5/1/34(1)		3,250		3,307
Multi-National - 0.2%
European Bank for Reconstruction & Development,
9.00%, 4/28/14(9)		3,525		1,794
Oil & Gas - 0.7%
Connacher Oil and Gas Ltd.,
8.75%, 8/1/18(1) (8)		1,290		882
8.50%, 8/1/19(1) (2)		930		632

NORTHERN FUNDS QUARTERLY REPORT    11    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
FOREIGN ISSUER BONDS - 11.6% continued
Oil & Gas - 0.7% continued
OGX Austria GmbH,
8.50%, 6/1/18(1) (2)	$	2,850	$	2,565
8.38%, 4/1/22(1)		1,600		1,336
				5,415
Oil & Gas Services - 0.1%
MBPS Finance Co.,
11.25%, 11/15/15(1) (2)		1,080		1,015
Sovereign - 2.8%
Brazilian Government International Bond,
10.25%, 1/10/28(9)		6,000		3,852
Ireland Government Bond,
4.50%, 4/18/20(3)		340		452
5.00%, 10/18/20(3)		40		55
5.40%, 3/13/25(3)		1,495		2,020
Italy Buoni Poliennali Del Tesoro,
5.25%, 11/1/29(3)		105		143
5.75%, 2/1/33(3)		90		130
5.00%, 8/1/34(3)		110		145
Mexican Bonos,
7.75%, 12/14/17(10)		41,300		3,557
8.00%, 12/7/23(10)		13,500		1,261
Philippine Government International Bond,
6.25%, 1/14/36(7)		40,000		1,168
Portugal Obrigacoes do Tesouro OT,
4.80%, 6/15/20(3)		25		29
3.85%, 4/15/21(3)		225		247
4.95%, 10/25/23(3)		2,310		2,618
Spain Government Bond,
4.65%, 7/30/25(3)		3,750		4,538
Uruguay Government International Bond,
3.70%, 6/26/37(11)		11,725		1,009
				21,224
Telecommunications - 1.8%
America Movil S.A.B. de C.V.,
6.45%, 12/5/22(10)		4,000		320
8.46%, 12/18/36(10)		3,400		289
Axtel S.A.B. de C.V.,
9.00%, 9/22/19(1) (2)		1,445		766
Bakrie Telecom Pte Ltd.,
11.50%, 5/7/15(1) (2)		1,700		790
Intelsat Jackson Holdings S.A.,
8.50%, 11/1/19		780		874
Intelsat Luxembourg S.A.,
11.25%, 2/4/17		2,840		3,003
11.50%, 2/4/17		1,405		1,493
Portugal Telecom International Finance B.V.,
5.63%, 2/8/16(3)		100		140
5.00%, 11/4/19(3)		450		597
4.50%, 6/16/25(3)		250		298
Telecom Italia Capital S.A.,
6.38%, 11/15/33		70		71
6.00%, 9/30/34		765		748
Telefonica Emisiones S.A.U.,
5.13%, 4/27/20		1,875		1,971
7.05%, 6/20/36		975		1,053
Wind Acquisition Finance S.A.,
7.25%, 2/15/18(1)		890		894
				13,307
Total Foreign Issuer Bonds (Cost $83,179)				87,973
TERM LOANS - 5.6%
Advertising - 0.3%
Van Wagner Communications, Inc.,
8.25%, 8/3/18		2,000		2,012
Aerospace/Defense - 0.0%
Hamilton Sundstrand Corp.,
5.00%, 11/30/19(12)		260		262
Auto Manufacturers - 0.5%
Chrysler Group LLC,
6.00%, 5/24/17		2,001		2,042
Navistar, Inc.,
7.00%, 8/17/17		1,820		1,826
				3,868
Auto Parts & Equipment - 0.2%
Goodyear Tire & Rubber (The) Co.,
4.75%, 4/30/19		1,170		1,176
Coal - 0.1%
Arch Coal, Inc.,
5.75%, 5/16/18		498		502
Commercial Services - 0.3%
Ceridian Corp.,
5.96%, 5/30/17		735		731

MULTI-MANAGER FUNDS     12    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
TERM LOANS - 5.6% continued
Commercial Services - 0.3% continued
Emergency Medical Services Corp.,
5.25%, 5/25/18	$	562	$	565
Monitronics International, Inc.,
5.50%, 3/23/18		580		586
Pharmaceutical Product Development, Inc.,
6.25%, 12/5/18		644		653
				2,535
Diversified Financial Services - 0.3%
Springleaf Financial Funding Co.,
5.50%, 5/10/17		2,669		2,652
Electric - 0.8%
Calpine Corp.,
4.50%, 4/1/18		1,433		1,445
Texas Competitive Electric Holdings Co. LLC,
7.00%, 10/10/17		5,000		4,975
				6,420
Entertainment - 0.1%
Graton Resorts & Casino,
9.00%, 8/3/18		1,120		1,149
Environmental Control - 0.2%
ADS Waste Holdings, Inc.,
5.25%, 10/9/19		1,275		1,289
Healthcare - Products - 0.1%
Hologic, Inc.,
4.50%, 8/1/19		490		495
Healthcare - Services - 0.3%
DaVita HealthCare Partners, Inc.,
4.00%, 11/1/19		990		996
HCA, Inc.,
3.56%, 3/31/17		480		481
United Surgical Partners International, Inc.,
6.00%, 4/3/19		986		994
				2,471
Lodging - 0.4%
Caesars Entertainment Operating Co., Inc.,
5.46%, 1/28/18		606		523
MGM Resorts International,
4.25%, 12/31/19		1,275		1,287
Station Casinos LLC,
4.21%, 6/16/16		943		905
				2,715
Media - 0.4%
Cengage Learning Acquisitions, Inc.,
5.72%, 7/31/17		1,203		944
Charter Communications Operating LLC,
4.00%, 5/15/19		552		556
Clear Channel Communications, Inc.,
3.61%, 7/30/14		845		821
Univision Communications, Inc.,
4.46%, 3/31/17		929		913
				3,234
Mining - 0.4%
FMG Resources August 2006 Pty Ltd.,
5.25%, 10/18/17		2,873		2,893
Oil & Gas - 0.3%
Chesapeake Energy Corp.,
5.75%, 9/30/18		2,450		2,452
Oil & Gas Services - 0.1%
Pinnacle Holdco Sarl,
10.50%, 7/30/20(12)		600		605
Pharmaceuticals - 0.1%
Valeant Pharmaceuticals International, Inc.,
4.25%, 2/13/19		510		513
Real Estate - 0.2%
Realogy Group LLC,
4.46%, 10/10/16		1,895		1,899
Retail - 0.1%
Party City Holdings, Inc.,
5.75%, 7/27/19		604		610
Software - 0.2%
First Data Corp.,
5.21%, 3/24/17		1,137		1,116
Sophia L.P.,
6.25%, 6/16/18		388		392
				1,508
Telecommunications - 0.2%
Intelsat Jackson Holdings S.A.,
4.50%, 4/2/18		731		735

NORTHERN FUNDS QUARTERLY REPORT    13    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

	PRINCIPAL AMOUNT (000S)		VALUE (000S)
TERM LOANS - 5.6% continued
Telecommunications - 0.2% continued
Level 3 Financing, Inc.,
5.25%, 8/1/19	$	727	$	730
				1,465
Total Term Loans (Cost $42,200)				42,725
	NUMBER OF SHARES		VALUE (000S)
PREFERRED STOCKS - 0.7%
Banks - 0.6%
Ally Financial, Inc.		41,725	$	1,096
Ally Financial, Inc.(1) (2)		3,605		3,541
				4,637
Home Builders - 0.0%
Hovnanian Enterprises, Inc.*		10,100		137
Real Estate Investment Trusts - 0.1%
iStar Financial, Inc.		19,875		443
iStar Financial, Inc.		11,500		251
iStar Financial, Inc.		850		18
				712
Total Preferred Stocks (Cost $4,948)				5,486
CONVERTIBLE PREFERRED STOCKS - 1.1%
Auto Manufacturers - 0.5%
General Motors Co.,
4.75%		82,450		3,639
Auto Parts & Equipment - 0.3%
Goodyear Tire & Rubber (The) Co.,
5.88%		52,200		2,464
Banks - 0.0%
Bank of America Corp.,
7.25%		196		222
Commercial Services - 0.0%
United Rentals Trust I,
6.50%		1,680		101
Pipelines - 0.2%
El Paso Energy Capital Trust I,
4.75%		24,025		1,326
Telecommunications - 0.1%
Lucent Technologies Capital Trust I,
7.75%		1,000		825
Total Convertible Preferred Stocks (Cost $8,116)				8,577
	NUMBER OF SHARES		VALUE (000S)
COMMON STOCKS - 0.1%
Electric - 0.1%
Dynegy, Inc.*		44,157		845
Total Common Stocks (Cost $1,544)				845
OTHER - 0.0%
Escrow GCB Dynegy Holdings		1,810,000		—
Total Other (Cost $ —)				—
INVESTMENT COMPANIES - 1.8%
Northern Institutional Funds - Diversified Assets Portfolio, 0.01%(13) (14)		13,350,257		13,350
Total Investment Companies (Cost $13,350)				13,350
Total Investments - 96.5% (Cost $701,550)				733,076
Other Assets less Liabilities - 3.5%				26,825
NET ASSETS - 100.0%			$	759,901

(1) Securities exempt from registration under Rule 144A of the Securities Act of 1933. These securities may not be publicly traded 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 December 31, 2012, the value of these restricted illiquid securities amounted to approximately $ 58,742,000 or 7.7% of net assets. Additional information on each restricted illiquid security is as follows:

SECURITY	ACQUISITION AND ENFORCEABLE DATE		ACQUISITION COST (000S)
Ainsworth Lumber Co. Ltd.,
7.50%, 12/15/17		11/14/12-11/30/12	$	3,643
Air Canada,
12.00%, 2/1/16		11/8/11		52
Ally Financial, Inc.		11/3/10-7/13/12		3,160
American Residential Services LLC,
12.00%, 4/15/15		4/9/10		723
Arch Coal, Inc.,
9.88%, 6/15/19		11/14/12		489
Axtel S.A.B. de C.V.,
9.00%, 9/22/19		9/25/09-10/21/11		1,281

MULTI-MANAGER FUNDS     14    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 2012 (UNAUDITED)

SECURITY	ACQUISITION AND ENFORCEABLE DATE	ACQUISITION COST (000S)
Baker & Taylor Acquisitions Corp.,
15.00%, 4/1/17	9/20/12	$	400
Bakrie Telecom Pte Ltd.,
11.50%, 5/7/15	4/30/10-9/13/11		1,559
Banco Santander Chile,
6.50%, 9/22/20	10/10/12-12/13/12		745
Caesars Operating Escrow LLC/Caesars Escrow Corp.,
9.00%, 2/15/20	12/6/12		354
CDRT Holding Corp.,
9.25%, 10/1/17	11/7/12-11/14/12		486
Clear Channel Worldwide Holdings, Inc.,
6.50%, 11/15/22	11/6/12		361
Clear Channel Worldwide Holdings, Inc.,
6.50%, 11/15/22	11/6/12		985
Cleaver-Brooks, Inc.,
8.75%, 12/15/19	12/11/12		735
Connacher Oil and Gas Ltd.,
8.50%, 8/1/19	8/5/11-7/16/12		814
Corp GEO S.A.B. de C.V.,
8.88%, 3/27/22	3/21/12		800
DISH DBS Corp.,
5.00%, 3/15/23	12/19/12		765
Edgen Murray Corp.,
8.75%, 11/1/20	10/5/12		2,661
EDP Finance B.V.,
4.90%, 10/1/19	2/2/12-6/18/12		2,072
EPE Holdings LLC/EP Energy Bond Co., Inc.,
8.13%, 12/15/17	12/18/12		313
Essar Steel Algoma, Inc.,
9.88%, 6/15/15	12/7/09-7/24/12		1,426
Global Generations Merger Sub, Inc.,
11.00%, 12/15/20	12/17/12		6,500
Great Canadian Gaming Corp.,
6.63%, 7/25/22	11/6/12-11/9/12		4,170
Harbinger Group, Inc.,
7.88%, 7/15/19	12/14/12		7,325
HBOS PLC,
6.75%, 5/21/18	11/14/11-12/14/11		2,152
HBOS PLC,
6.00%, 11/1/33	11/10/11		130
Hillman Group, Inc.,
10.88%, 5/31/18	12/18/12		2,343
JMC Steel Group, Inc.,
8.25%, 3/15/18	11/30/12		1,035
Lennar Corp.,
3.25%, 11/15/21	11/23/11		1,165
Marfrig Overseas Ltd.,
9.50%, 5/4/20	4/29/10		492
MBPS Finance Co.,
11.25%, 11/15/15	11/8/10		1,080
OGX Austria GmbH,
8.50%, 6/1/18	5/26/11-6/29/12		2,832
PQ Corp.,
8.75%, 5/1/18	11/1/12-12/12/12		2,481
Reichhold Industries, Inc.,
9.00%, 5/8/17	3/16/10-11/6/12		889
Sierra Receivables Funding Co. LLC, Series 2011-3A, Class C,
9.31%, 7/20/28	11/4/11		612
Tempur-Pedic International, Inc.,
6.88%, 12/15/20	12/12/12		990

(3) Principal amount is denoted in Euro.

(4) Principal amount is denoted in Australian Dollar.

(5) Issuer has defaulted on terms of debt obligation.

(6) Principal amount is denoted in Chilean Peso.

(7) Principal amount is denoted in Philippine Peso.

(8) Principal amount is denoted in Canadian Dollar.

(9) Principal amount is denoted in Brazilian Real.

(10) Principal amount is denoted in Mexican Peso.

(11) Principal amount is denoted in Uruguayan Peso.

(12) When-Issued Security.

(13) At March 31, 2012, the value of the Fund’s investment in the Diversified Assets Portfolio of the Northern Institutional Funds was approximately $14,708,000 with net sales of approximately $1,358,000 during the nine months ended December 31, 2012.

(14) 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.

NORTHERN FUNDS QUARTERLY REPORT    15    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY FUND continued

At December 31, 2012, the industry sectors for the Multi-Manager High Yield Opportunity Fund were:

INDUSTRY SECTOR	% OF LONG TERM INVESTMENTS
Asset Backed		0.4	%
Bank Loans		5.7
Commercial Mortgage-Backed Securities		0.6
Convertibles		6.6
Emerging Markets Debt		1.9
Financials		6.9
Foreign		2.7
Industrials		63.7
Other		0.1
Preferreds		0.8
Residential Mortgage-Backed Securities		1.7
Short-Term		3.3
Utilities		5.6
Total		100	%

At December 31, 2012, the credit quality distribution for the Multi-Manager High Yield Opportunity Fund as a percentage of investments including cash was:

QUALITY DISTRIBUTION*	% OF INVESTMENTS
AAA		0.2	%
A		1.4
BBB		3.9
BB		21.9
B		40.9
CCC or Below		26.7
Non-Rated		3.2
Cash Equivalents		1.8
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 December 31, 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		96.1	%
All other currencies less than 5%		3.9
Total		100.0	%

At December 31, 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)
Mexican Peso		7,603	United States Dollar		585		1/3/13	$	(3	)
Euro		360	United States Dollar		477		1/31/13		2
Euro		440	United States Dollar		559		1/31/13		(22	)
Euro		3,520	United States Dollar		4,571		1/31/13		(77	)
Euro		5,200	United States Dollar		6,744		1/31/13		(121	)
United States Dollar		673	Euro		520		1/31/13		14
Total								$	(207	)

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 an evaluated price from a third party vendor.

MULTI-MANAGER FUNDS     16    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 Multi-Manager High Yield Opportunity Fund’s investments and other financial instruments, which are carried at fair value, as of December 31, 2012:

INVESTMENTS	LEVEL 1 (000S)			LEVEL 2 (000S)			LEVEL 3 (000S)		TOTAL (000S)
Asset-Backed Securities	$	—		$	20,206	(1)	$	—	$	20,206
Convertible Bonds		—			33,401	(1)		—		33,401
Corporate Bonds		—			520,513	(1)		—		520,513
Foreign Issuer Bonds
Banks		—			5,872			3,112		8,984
Sovereign		—			15,196			6,028		21,224
All Other Industries		—			57,765	(1)		—		57,765
Term Loans		—			42,725	(1)		—		42,725
Preferred Stocks
Banks		1,096			3,541			—		4,637
All Other Industries		849	(1)		—			—		849
Convertible Preferred Stocks
Commercial Services		—			101			—		101
Telecommunications		—			825			—		825
All Other Industries		7,651	(1)		—			—		7,651
Common Stocks		845			—			—		845
Investment Companies		13,350			—			—		13,350
Total Investments	$	23,791		$	700,145		$	9,140	$	733,076
OTHER FINANCIAL INSTRUMENTS
Assets
Foreign Currency Exchange Contracts	$	—		$	16		$	—	$	16
Liabilities
Foreign Currency Exchange Contracts		—			(223	)		—		(223	)
Total Other Financial Instruments	$	—		$	(207	)	$	—	$	(207	)

(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 December 31, 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    17    MULTI-MANAGER FUNDS

SCHEDULE OF INVESTMENTS

MULTI-MANAGER HIGH YIELD OPPORTUNITY 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)			PURCHASES (000S)		SALES (000S)			TRANSFERS INTO LEVEL 3 (000S) (1)		TRANSFERS OUT OF LEVEL 3 (000S) (1)		BALANCE AS OF 12/31/12 (000S)
Convertible     Bonds
Oil &         Gas         Services	$	249	$	18	$	—		$	—	$	(38	)	$	213	$	(442	)	$	—	$	—	$	—
Foreign     Issuer     Bonds
Banks		8,712		131		(428	)		356		(21	)		745		(6,383	)		—		—		3,112
Multi-         National		879		—		(10	)		—		(8	)		—		(861	)		—		—		—
Sovereign		7,269		216		(223	)		559		(168	)		—		(1,625	)		—		—		6,028
Total	$	17,109	$	365	$	(661	)	$	915	$	(235	)	$	958	$	(9,311	)	$	—	$	—	$	9,140

(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 December 31, 2012.

The amount of change in net unrealized appreciation (depreciation) on investments in Level 3 securities still held at December 31, 2012 was approximately $253.

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	702,464
Gross tax appreciation of investments	$	38,607
Gross tax depreciation of investments		(7,995	)
Net tax appreciation of investments	$	30,612

MULTI-MANAGER FUNDS    18    NORTHERN FUNDS QUARTERLY REPORT

SCHEDULE OF INVESTMENTS

GLOBAL TACTICAL ASSET ALLOCATION FUND DECEMBER 31, 2012 (UNAUDITED)

	NUMBER OF SHARES		VALUE (000S)
FUND ALLOCATION - INVESTMENT COMPANIES - 99.4%
FlexShares Morningstar Global Upstream Natural Resources Index Fund(1)		73,510	$	2,618
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund(1)		38,960		1,025
FlexShares Morningstar Developed Markets Ex-U.S. Factor Tilt Index Fund(1)		100,100		5,286
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund(1)		127,378		6,876
FlexShares Morningstar U.S. Market Factor Tilt Index Fund(1)		241,570		14,427
Northern Institutional Funds - Short Bond Portfolio(1)		284,444		5,478
SPDR Gold Trust ETF*		9,632		1,560
Northern Funds - Bond Index Fund(1)		497,783		5,456
Northern Funds - Global Real Estate Index Fund(1)		283,360		2,615
Northern Funds - High Yield Fixed Income Fund(1)		893,843		6,749
Total Investment Companies (Cost $50,224)				52,090
Total Investments - 99.4% (Cost $50,224)				52,090
Other Assets less Liabilities - 0.6%				292
NET ASSETS - 100.0%			$	52,382

(1) Investment in affiliated fund. Northern Trust Investments, Inc. is the investment adviser to 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 December 31, 2012, the asset class weightings for the Global Tactical Asset Allocation Fund were:

ASSET CLASS	WEIGHT			INVESTMENT VEHICLE
U.S. Equity		27.7	%	FlexShares Morningstar U.S. Market Factor Tilt Index
Non U.S. Equity - Developed		10.1		FlexShares Morningstar Developed Markets Ex-U.S. Factor Tilt Index
Non U.S. Equity - Emerging		13.2		FlexShares Morningstar Emerging Markets Factor Tilt Index
Global Real Estate		5.0		NF Global Real Estate Index
U.S. Bonds - High Yield		13.0		NF High Yield Fixed Income
U.S. Bonds - Intermediate		10.5		NF Bond Index
U.S. Bonds - Inflation Protected		2.0		FlexShares iBoxx 5-Year Target Duration TIPS Index
U.S. Bonds - Short		10.5		NIF Short Bond Portfolio
Gold		3.0		SPDR Gold Shares
Global Natural Resources		5.0		FlexShares Global Upstream Natural Resources Index
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 Global Tactical Asset Allocation Fund’s investments, which are carried at fair value, as of December 31, 2012:

	LEVEL 1 (000S)		LEVEL 2 (000S)		LEVEL 3 (000S)		TOTAL (000S)
Investment Companies	$	52,090	$	—	$	—	$	52,090

The Fund discloses all transfers between levels based on valuations at the end of each reporting period. At December 31, 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    1    GLOBAL TACTICAL ASSET ALLOCATION FUND

SCHEDULE OF INVESTMENTS

GLOBAL TACTICAL ASSET ALLOCATION FUND continued

Federal Tax Information:

At December 31, 2012, the components of investments for federal income tax purposes were as follows: (Amounts in thousands)

Federal tax cost of investments	$	50,283
Gross tax appreciation of investments	$	1,807
Gross tax depreciation of investments		—
Net tax appreciation of investments	$	1,807

Transactions in affiliated porfolios for the nine months ended December 31, 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	$	2,013	$	1,134	$	—		$	27	$	2,618
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		698		398		94		6			9		1,025
FlexShares Morningstar Developed Markets Ex-U.S. Factor Tilt Index Fund		—		5,116		166		2			11		5,286
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		—		6,687		235		(1	)		7		6,876
FlexShares Morningstar U.S. Market Factor Tilt Index Fund		—		14,923		624		—			161		14,427
Northern Funds - Bond Index Fund		4,749		2,504		1,835		82			104		5,456
Northern Funds - Emerging Markets Equity Index Fund		2,463		1,219		3,674		151			—		—
Northern Funds - Global Real Estate Index Fund		1,055		1,503		192		9			82		2,615
Northern Funds - High Yield Fixed Income Fund		4,573		3,432		1,497		53			334		6,749
Northern Funds - Mid Cap Index Fund		879		392		1,283		122			—		—
Northern Funds - Short Bond Fund		—		526		495		6			14		—
Northern Institutional Funds - Diversified Assets Portfolio		102		41,666		41,768		—			—		—
Northern Institutional Funds - Equity Index Portfolio		8,795		3,405		12,517		1,468			117		—
Northern Institutional Funds - International Equity Index Portfolio		3,518		1,700		5,288		293			—		—
Northern Institutional Funds - Short Bond Portfolio		4,749		1,846		1,188		17			44		5,478
Northern Institutional Funds - Small Company Index Portfolio		879		399		1,305		144			—		—
	$	33,150	$	87,729	$	73,295	$	2,352		$	910	$	50,530

GLOBAL TACTICAL ASSET ALLOCATION FUND    2    NORTHERN FUNDS QUARTERLY REPORT

DECEMBER 31, 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 groups. NTGI PVC is responsible for the fair valuation of portfolio securities and the monitoring of the fair valuation process subject to the Board’s oversight.

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 issuer; 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 valued securities are reported quarterly to the Valuation Committee of the Board.

Quantitative Information about Level 3 Fair Value Measurements

Emerging Markets Equity Index Fund
Amounts in thousands	Fair Value  at 12/31/2012		Valuation Techniques	Unobservable Inputs
Common Stock	$	1,042	Quoted Price of Comparable Security/Required Cost to Replace the Service Capacity of Security	Discovery Price set at Halt
Global Real Estate Index Fund
Amounts in thousands	Fair Value  at 12/31/2012		Valuation Techniques	Unobservable Inputs
Common Stock	$	2,007	Quoted Price of Comparable Security/Required Cost to Replace the Service Capacity of Security	Discovery Price set at Halt
Multi-Manager International Equity Fund
Amounts in thousands	Fair Value  at 12/31/2012		Valuation Techniques	Unobservable Inputs
Common Stock	$	157	Quoted Price of Comparable Security/Required Cost to Replace the Service Capacity of Security	Discovery Price set at Halt
Multi-Manager Global Real Estate Fund
Amounts in thousands	Fair Value  at 12/31/2012		Valuation Techniques	Unobservable Inputs
Common Stock	$	3,200	Quoted Price of Comparable Security/Required Cost to Replace the Service Capacity of Security	Discovery Price set at Halt
Small Cap Core Fund
Amounts in thousands	Fair Value  at 12/31/2012		Valuation Techniques	Unobservable Inputs
Common Stock	$	14	Quoted Price of Comparable Security/Required Cost to Replace the Service Capacity of Security	Future Liquidity of Share Class

The significant unobservable inputs used in the fair value measurement of the common stock were a discovery price and Future Liquidity of Share Class. Significant increases (decreases) in discovery prices and Future Liquidity of Share Class 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:	February 28, 2013

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:	February 28, 2013
By:	/s/ Randal Rein
	Randal Rein, Treasurer
	(Principal Financial and Accounting Officer)
Date:	February 28, 2013